Wisdom Education International Holdings Issues Profit Warning for 2026 Interim Period

Key Points of the Announcement

• Significant Decline in Net Profit: Wisdom Education International Holdings Company Limited has issued a profit warning, announcing that its unaudited consolidated net profit for the six months ended 28 February 2026 (“2026 Interim Period”) is expected to be approximately RMB30.5 million. This represents a substantial decrease compared to the unaudited consolidated net profit of approximately RMB51.6 million for the same period in the previous year (“2025 Interim Period”).
• Main Reasons for Profit Decline: The decrease in profit is mainly attributable to:
  • Reversal of Financial Guarantee Contracts: The amount recorded for the reversal of financial guarantee contracts dropped significantly to approximately RMB8.8 million in the 2026 Interim Period, compared to RMB25.6 million in the 2025 Interim Period.
  • Increased Administrative Expenses: Administrative expenses rose by approximately RMB3.8 million during the reporting period, further impacting profitability.
• Preliminary and Unaudited Figures: The figures disclosed are based on the Board’s preliminary review of unaudited consolidated management accounts. These numbers have not yet been finalized, reviewed, or audited by external auditors or the audit committee, and may be subject to further adjustments.
• Upcoming Interim Results Announcement: The company will disclose detailed financial information and performance for the 2026 Interim Period in its interim results announcement, which is expected to be published on or around 28 April 2026.

Important Information for Shareholders and Investors

• Potential Impact on Share Price: The significant drop in net profit and changes in key financial items are material, price-sensitive information. Investors should be aware that these developments could negatively impact the company’s share price in the near term.
• Exercise Caution: The Board has advised shareholders and potential investors to exercise caution when dealing in the shares of the company, given that the financial information is preliminary and subject to adjustments.
• Board Composition: As of the date of the announcement (21 April 2026), the Board comprises three executive directors (Ms. Li Suwen, Mr. Liu Xuebin, and Mr. Li Jiuchang) and three independent non-executive directors (Prof. Sun Kai Lit Cliff, BBS, J.P., Mr. Poon Ha Fung, and Mr. Huang Weiguo).

Conclusion

The profit warning issued by Wisdom Education International Holdings is a significant development that shareholders and investors should closely monitor. The announced decrease in profit, if confirmed in the forthcoming interim results, may have a substantial impact on the company’s valuation and share price. The market will be watching for more updates, particularly the detailed interim results scheduled for late April 2026.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial figures are based on preliminary, unaudited information provided by the company and may be subject to change. Investors should exercise caution and consult their financial advisors before making any investment decisions.

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