Edvantage Group Issues Profit Warning: Significant Drop in Interim Profit Expected

Key Points for Investors

• Edvantage Group Holdings Limited has issued a profit warning for the six months ended 28 February 2026.
• The Group expects profit attributable to shareholders to fall sharply from RMB243.7 million (same period last year) to approximately RMB101.5 million, representing a drop of nearly 58%.
• This announcement is made under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, indicating the information is price sensitive and relevant for all shareholders and potential investors.

Details Behind the Decline

The expected profit decline is attributed to three main factors:

1. Decrease in Student Enrollments:
   • Significant reductions in enrollments at key institutions:
     • Guangzhou Huashang College: -11%
     • Urban Technician College of Sichuan: -12%
     • Guangdong Huashang Technical School: -29%
   • This reduction in student numbers has had a direct negative impact on the Group’s revenue for the reporting period.
2. Increase in Cost of Sales Due to Strategic Investments:
   • The Group has made increased investments in school operations, focusing on:
     • Talent cultivation
     • Teaching quality improvement
     • Campus expansion
   • While these investments have raised the cost base during the period, the Board maintains that these are essential for securing a more competitive position and supporting long-term high-quality development.
3. Impairment Loss on Goodwill:
   • A preliminary assessment suggests the Group will recognize an impairment loss on goodwill allocated to certain cash generating units (CGUs).
   • This impairment is still subject to completion of the recoverable amount assessment.

Important Shareholder Information

• This profit warning is based on the Board’s preliminary review of unaudited consolidated management accounts and other information currently available.
• The figures have not been audited or reviewed by the Company’s auditors or audit committee, and the actual results may differ from those stated in this announcement.
• The Company will publish its interim results announcement by the end of April 2026, as required by the Hong Kong Listing Rules. Investors are advised to pay close attention to this release for the final numbers and further details on the Group’s performance.
• Given the significant expected decrease in profit, this announcement is likely to have a material impact on the Company’s share price.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in the securities of the Company.

Board and Management

• Executive Directors: Mr. Liu Yung Chau (Chairman), Ms. Chen Yuan, Rita, Ms. Liu Yi Man
• Non-executive Director: Mr. Liu Yung Kan
• Independent Non-executive Directors: Mr. Xu Gang, Mr. O’Yang Wiley, Mr. Li Jiatong

Publication Date

Hong Kong, 13 April 2026

Disclaimer: The information in this article is based on the Company’s unaudited management accounts and may be subject to change. Investors should exercise caution and consider all risks before making any investment decisions.

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