Key Takeaways:
- Expects interim net loss to reach RMB51.3 million to RMB62.7 million
- Represents a more than 530% increase from last year's RMB9.9 million loss
- Cites declining revenue from its vocational education segment as the primary cause
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Bojun Edu Expects Interim Loss to Widen by Over 500%
Bojun Education Co. (1758.HK) announced its interim net loss for the six months ending February 28, 2026, is expected to widen by more than 500 percent, reaching up to RMB62.7 million.
"The anticipated increase in loss was mainly attributable to a decline in revenue from the vocational education segment," the company said in a filing with the Hong Kong Stock Exchange.
The projected net loss of RMB51.3 million to RMB62.7 million is a significant increase from the RMB9.9 million loss recorded in the same period of the previous financial year. The company has not declared a dividend since 2024, reflecting its ongoing financial challenges.
The profit warning highlights the pressures on China's private education sector, particularly in vocational training. The more than fivefold increase in expected losses signals potential deep-rooted operational issues or a sharp market downturn for Bojun Edu's services.
This forecast is a fundamentally negative signal for the company's stock, which may face significant downward pressure. Investors will be watching for the official interim results announcement before the end of April 2026 for further details on the revenue decline and any potential turnaround strategy.
This article is for informational purposes only and does not constitute investment advice.
