Cathay Group Holdings Inc. Issues Strong Profit Alert for FY2025

Key Points for Investors

• Significant Surge in Profit: Cathay Group Holdings Inc. expects its consolidated profit for the year ended 31 December 2025 to exceed RMB300 million, a substantial increase compared to RMB116.9 million for the previous year (2024).
• Major Drivers of Profit Growth:
  • Higher Tuition Fees & Student Growth: The Group’s higher education (media and arts) business experienced both an increase in tuition fees for new undergraduate students and a rise in the number of students enrolled, which significantly boosted revenue and gross profit.
  • No New Impairment Losses: The Group did not record further impairment losses for major trade receivables in its TV/film production business or for other receivables in the higher education segment during the reporting period. This contrasts with prior years where such provisions affected the bottom line.
• Initiatives for Future Growth: Cathay Group is actively exploring new business avenues, including:
  • Pay-for-knowledge platforms
  • Vertical e-commerce initiatives
  • Artificial Intelligence (AI) professors
  • AI arts courses

  These new ventures are aimed at building an industry-education integration ecosystem, potentially offering new growth engines for the Group in the coming years.

Important Information for Shareholders

• Potential Price-Sensitive Information: The anticipated profit increase is very likely to be price-sensitive and could have a significant impact on the Company’s share value upon confirmation in the audited results.
• Preliminary Nature of Results: The profit alert is based on unaudited consolidated management accounts and current information. These figures have not yet been audited or reviewed by the Company’s auditors or audit committee and are subject to change.
• Upcoming Results Announcement: The final audited annual results for FY2025 are expected to be published on 30 March 2026. Investors should watch for this release for the confirmed figures.
• Caution Advised: Shareholders and potential investors are strongly advised to exercise caution in dealing with the Company’s shares until the audited results are released.

Board and Management

The board is led by Chairperson and Executive Director Mr. Pu Shulin, with executive directors Ms. Jacqueline Luo, Mr. Wu Ye, and Mr. Lau Chi Hung. The independent non-executive directors are Mr. Zhang Jizhong, Mr. Lee Cheuk Yin Dannis, and Mr. Huang Yu.

Summary

Cathay Group Holdings Inc. has delivered a strong profit alert for FY2025, primarily driven by robust performance in its higher education (media and arts) segment and the absence of new impairment losses. The Group’s ongoing expansion into innovative education and e-commerce initiatives highlights a strategic focus on sustainable growth. Given the magnitude of the profit increase, this announcement is highly material and could influence share price movements. Investors should monitor the official results announcement for final confirmation.

Disclaimer: This article is based on preliminary and unaudited information released by Cathay Group Holdings Inc. The financial figures and forward-looking statements are subject to change upon completion of the Company’s audit process. Investors are advised to exercise caution and refer to the forthcoming audited results for the most accurate information. The author accepts no liability for investment decisions based on this article.

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