JH Education (JH Educational Technology INC) reported unaudited interim results for the six months ended 30 June 2026, showing broadly stable top-line performance but softer margins as the group prepares for a major capacity expansion in Henan Province.
Revenue edged down 0.4% year on year (YoY) to RMB 532.61 million, reflecting a deliberate reduction in student intake during the 2025/26 academic year. Tuition fees contributed RMB 482.52 million, while boarding fees added RMB 42.54 million. Other education service income totalled RMB 7.56 million.
Cost of sales rose 29.6% YoY to RMB 266.82 million, driven principally by higher staff costs (+RMB 32.00 million), maintenance (+RMB 6.40 million), student activities (+RMB 9.00 million) and training expenses (+RMB 6.40 million) linked to preparations for the new Zhengzhou campus. As a result, gross profit contracted 19.1% to RMB 265.79 million and gross margin slid to 49.9% from 61.5% a year earlier.
Profit for the period declined 16.3% to RMB 255.57 million, while core net profit, which adjusts for non-operational items, fell 16.0% to RMB 257.50 million. Basic and diluted earnings per share dropped to RMB 11.31 cents from RMB 14.86 cents.
Operating expenses were mixed: • Selling and distribution costs eased 9.1% to RMB 1.87 million. • Administrative expenses fell 21.3% to RMB 41.04 million, reflecting lower staff costs. • Finance costs more than tripled to RMB 3.07 million, attributable to interest on borrowings for the new campus.
Balance-sheet metrics remain solid. Net current assets improved to RMB 959.69 million (31 Dec 2025: RMB 843.04 million). Cash and cash equivalents stood at RMB 672.70 million, supplemented by time deposits of RMB 1.29 billion. Interest-bearing bank borrowings increased to RMB 1.15 billion, lifting the gearing ratio to 26% (31 Dec 2025: 23%). Capital expenditure reached RMB 312.50 million, primarily for construction of the Zhengzhou New Campus, scheduled to open in September 2026 with an expected capacity of about 20,000 students.
No interim dividend was declared.
Management reiterated its strategy to boost scale through the new Henan facility, selective domestic acquisitions, and exploration of overseas opportunities, including plans to establish a degree-granting institution in California.