Tianli International (TIANLI INT HLDG) reported solid interim results for the six months ended 28 February 2026, buoyed by strong product sales and expanding AI-enabled education services.
Revenue and earnings • Revenue rose 14.2% year on year to RMB 2.14 billion, led by a 45.6% surge in product sales to RMB 691.31 million and a 3.4% gain in comprehensive education services to RMB 1.05 billion. • Gross profit increased 6.8% to RMB 753.26 million; however, the gross margin narrowed to 35.2% from 37.6% due to the lower-margin product mix. • Period profit advanced 21.0% to RMB 471.36 million. Basic earnings per share improved 18.5% to RMB 22.84 cents.
Cost dynamics and profitability • Cost of sales climbed 18.7% to RMB 1.39 billion, with procurement costs for products up 49.6% to RMB 633.85 million. • Staff costs grew 9.9% to RMB 266.08 million, reflecting investment in an AI quality middle-office and related product development. • Administrative expenses rose 8.7% to RMB 127.47 million, while finance costs eased 4.6% to RMB 57.50 million on lower borrowing rates. • The company booked an RMB 81.87 million reversal of prior-year impairment on plant and equipment after obtaining art-training licences for certain tuition schools.
Balance-sheet highlights • Cash and cash equivalents fell to RMB 449.26 million from RMB 965.24 million six months earlier, primarily due to RMB 540.20 million in capital expenditure and RMB 389.32 million net outflows from financing activities. • Net current liabilities widened to RMB 2.31 billion. Management cites operating cash flow of RMB 520.27 million and RMB 1.43 billion in undrawn bank facilities to underpin going-concern assumptions. • Total interest-bearing borrowings increased to RMB 2.54 billion, lifting the gearing ratio to 25.3% (31 August 2025: 23.9%).
Operational metrics • The group served about 60,000 high-school students across 63 self-owned schools, supported by 2,612 PRC-certified teachers. • AI initiatives gained traction: the proprietary “Qiming AI Companion” model has been filed with regulators, and AI Bootcamp enrolment grew 130% to roughly 2,300 students for the 2026 intake. • Management and franchise fee income rose 38.7% to RMB 78.16 million after adding seven entrusted schools during the period.
Capital management • No interim dividend was declared (1H FY25: RMB 5.78 cents per share). • The company repurchased 18.06 million shares for HKD 55.76 million, bringing treasury shares to 7.50 million. • Share-based incentives remain active, with 12 million new options granted in December 2025.
Regulatory landscape • Tianli reiterated that compulsory-education schools affected by China’s 2021 Implementation Regulations have been deconsolidated since 31 August 2021. The group continues to monitor policy developments and maintains service continuity at those schools.
Outlook Management will pursue an “internal-external dual circulation” strategy for its AI smart-education business, aiming to提升 in-school efficiency while expanding external market services. Cost control, digital upgrades and streamlined processes remain priorities to sustain growth amid margin pressures.
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