Bojun Education Issues Significant Profit Warning for H1 2026

Key Points from the Latest Profit Warning Announcement

• Net Loss Expected to Widen Sharply: Bojun Education Company Limited has announced that, based on a preliminary review of its unaudited management accounts for the six months ended 28 February 2026, the Group expects to report a net loss in the range of RMB51.3 million to RMB62.7 million.
• Comparison to Previous Period: This projected loss is a significant increase compared to the net loss of approximately RMB9.9 million recorded for the same period last year, representing a deterioration of over five times year-on-year.
• Revenue Decline: Total revenue for the reporting period was approximately RMB180.8 million, which is a decrease of RMB26.7 million compared to the previous year.
• Vocational Education Segment Under Pressure: The most pronounced decline occurred in the vocational education segment, with revenue dropping by about RMB24.5 million.
• Breakdown of Revenue Drop:
  • Secondary Vocational Education: Revenue fell by RMB11.2 million, attributed to a reduction in the number of junior high school graduates and intensified competition from high schools expanding recruitment nationwide, resulting in lower student enrolment.
  • Higher Vocational Education: Revenue decreased by RMB13.3 million, mainly due to a reduction in relevant government subsidies.
• Preliminary Nature of Results: The announcement emphasizes that these figures are based on unaudited management accounts and have not been reviewed or audited by the company’s auditors or audit committee. Final results may differ.
• Upcoming Interim Results Announcement: The company expects to release its interim results for the reporting period on or around 23 April 2026.
• Management Team: The announcement confirms the current composition of the Board, listing both executive and independent non-executive directors.

Important Information for Shareholders and Investors

• Significant Deterioration in Profitability: The sharp increase in expected net loss is a material and potentially price-sensitive development. Shareholders should be aware that this may significantly impact the company’s share price upon market open or following the release of the interim results.
• Pressure on Core Business Segments: The decline in both secondary and higher vocational education revenues signals ongoing challenges in Bojun Education’s core markets, affected by demographic shifts and changes in government subsidy policies.
• Caution Advised: The Board explicitly advises shareholders and potential investors to exercise caution when dealing in the company’s shares due to the uncertainty and potential for further negative financial developments.

Detailed Financial and Operational Context

Bojun Education attributes the expected widening of its net loss primarily to a significant decrease in revenue within its vocational education segment. The decline in secondary vocational education revenue is primarily due to a fall in the total number of junior high school graduates and increased recruitment efforts by high schools across China, leading to a “structural reduction” in student enrolment. This industry-wide trend may continue to put pressure on enrolment numbers and revenue in the future.

Furthermore, the reduction in higher vocational education revenue is attributed to a decrease in government subsidies. Policy changes affecting subsidies and funding for vocational education could continue to pose risks to the company’s earnings potential.

Investors should note that the company’s financials remain subject to finalization and audit, and that the final numbers may differ from the preliminary estimates. The upcoming interim results announcement, scheduled for release on or around 23 April 2026, will provide the finalized figures and further management commentary.

Conclusion

Bojun Education faces a challenging financial outlook, with a projected sharp increase in losses and ongoing revenue headwinds in its core vocational education segments. The information disclosed is highly material and likely to influence trading in the company’s shares, and shareholders are urged to remain vigilant and exercise caution.

Disclaimer: This article is based on preliminary and unaudited figures provided by Bojun Education Company Limited. Final results may differ. The information presented should not be construed as investment advice. Shareholders and potential investors are advised to exercise caution and consult professional advisors before making any investment decisions.

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