Fenbi Ltd. (FENBI) released its interim results for the six months to 30 June 2026, posting a net loss of RMB183.54 million after recording a RMB226.65 million profit a year earlier. Adjusted net loss (excluding share-based payments) reached RMB158.39 million versus a RMB271.46 million profit in the prior-year period.
Revenue fell 16.3% to RMB1.25 billion, driven by a 17.5% slide in tutoring services income to RMB1.07 billion and an 8.8% drop in book-related sales to RMB179.70 million. Cost of revenue rose 5.8% to RMB726.15 million, pressured by severance costs linked to workforce restructuring and higher expenses for AI course commercialisation. Consequently, gross profit contracted 35.2% to RMB522.17 million, and gross margin narrowed to 41.8% from 54.0%.
Operating expenses expanded: selling and marketing costs grew 18.1% to RMB361.70 million, research and development outlays increased 22.8% to RMB132.43 million, and administrative expenses rose 9.3% to RMB199.31 million. Finance income slipped 39.0% to RMB10.17 million amid lower deposit balances and yields.
Fenbi’s cash and cash equivalents more than halved to RMB400.95 million from RMB869.14 million at year-end 2025, reflecting RMB433.66 million net cash used in investing activities, including heavier allocations to wealth-management and ETF products. Financial assets at fair value through profit or loss surged to RMB479.21 million from RMB132.10 million, comprising RMB355.39 million in wealth-management products and RMB123.82 million in U.S.-listed ETFs and Hong Kong equities.
Operational indicators softened: staff numbers fell to 5,963 from 7,053 a year earlier, and average monthly active users declined to 8.5 million from 9.3 million. Contract liabilities rose to RMB267.18 million, while refund liabilities eased to RMB98.27 million following policy tweaks that reduced refund-linked course fees.
No interim dividend was declared.
Leadership changes have reshaped governance: founder Zhang Xiaolong resigned as chairman and CEO on 8 July 2026; Executive Director Sheng Haiyan succeeded him as chairlady and CEO. Former Executive Director Wei Liang left on 1 April 2026, became a non-executive director on 21 August 2026, while Luo Chengxing and Zhou Xiang joined the Board as executive directors on 4 September 2026.
Post-period, Fenbi realised an additional investment loss of approximately RMB56.65 million on ETF and listed-security disposals. Management highlighted a tougher public-sector exam tutoring market, pledging tighter cost control, resource reallocation to core products, and continued development of AI-enabled learning solutions. No further significant capital commitments or borrowings were reported, and the gearing ratio remains zero.
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