Wisdom Education International Holdings (Wisdom Education) reported interim results for the six months ended 28 February 2026 showing a sharp earnings contraction despite top-line growth.
Revenue rose 14.7% year-on-year to RMB 79.96 million, fuelled mainly by a 19.0% increase in the school-related supply-chain segment to RMB 40.55 million. Comprehensive educational services delivered RMB 35.71 million, broadly flat versus the prior period, while “Others” contributed RMB 3.71 million after being absent a year earlier.
Cost of revenue climbed 26.3% to RMB 41.15 million, outpacing sales growth and compressing gross margin to 48.5% from 53.2%. Gross profit edged up 4.6% to RMB 38.81 million.
Profit dynamics weakened markedly: • Profit for the period fell 40.8% to RMB 30.55 million. • Core net profit, which excludes non-operating items such as movements in financial guarantee contracts and foreign-exchange gains, dropped 36.8% to RMB 18.67 million, trimming core margin to 23.3% (H1 FY2025: 42.4%). • Finance income contracted to RMB 5.38 million from RMB 14.50 million due to lower interest income, while other income plunged to RMB 0.28 million after the cessation of amortised income from financial guarantee contracts booked a year earlier. • Administrative expenses increased 29.2% to RMB 16.67 million, partly reflecting higher expected-credit-loss provisions.
The effective tax rate rose to 15.4% from 10.5%.
Balance-sheet and cash-flow highlights: • Net cash outflow from operations totalled RMB 7.20 million. • Cash, time deposits and restricted deposits stood at RMB 271.28 million at period-end, against RMB 426.63 million six months earlier. • Short-term borrowings were RMB 173.92 million; the gearing ratio improved to 26.1% (31 August 2025: 37.1%) owing to lower debt and higher equity. • Capital expenditure reached RMB 108.50 million, consistent with the group’s asset-light strategy focused on selective investments.
Contingent liabilities linked to financial guarantees for deconsolidated entities declined to RMB 3.51 billion from RMB 3.61 billion as outstanding borrowings were partially repaid.
The board declared no interim dividend.
Management indicated continued emphasis on integrating supply-chain operations with comprehensive educational services and reiterated efforts to explore restructuring options for certain deconsolidated high-school assets.
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