China Education Group Holdings Pursues High-Quality Growth and Long-Term Value Creation Enhanced the ecosystem of Industry-education Integration and Forging Long-term Competitiveness

Summary of Highlights:

• Revenue from main business reached RMB3,673 million, an increase of 11.8% year-on-year.
• Gross profit reached RMB1,978 million, an increase of 7.6% year-on-year.
• Adjusted EBITDA was RMB2,100 million, an increase of 7.4% year-on-year.
• Adjusted net profit on attribution of RMB1,048 million.
• Cash reserve amounted to RMB5,092 million.

(Hong Kong, 30 April 2025) - China Education Group Holdings Limited ("China Education Group" or the "Group", stock code: 839.HK), a leading higher and secondary vocational education group, today announced its interim results for the six months ended 28 February 2025. During the reporting period ,  the Group remained focused on high-quality development, further advanced its industry-education integration strategy, and continued to strengthen its core competitiveness, delivering steady growth in both revenue and profit.

Continued Revenue Growth with Steady Profitability Enhancement

During the period, the Group's revenue increased by 11.8% year-on-year to RMB3,673 million, with  the domestic revenue increasing by 11.5% and the international revenue increasing by 22.9%,  mainly driven by the the expansion of student enrollment and the increase in revenue per student. Despite some cost pressure from campus expansion and increased academic investment, the Group delivered a 7.4% year-on-year increase in Adjusted EBITDA, underpinned by its strong operational efficiency. Core profitability continued to improve, demonstrating the Group's resilient, efficient, and steady growth momentum.

Enhanced Industry-Education Integration and Creating New Dynamics in Vocational Education

During the reporting period, the Group accelerated the transformation and upgrading of its vocational education segment, taking systematic steps to enhance educational quality and talent development capabilities. with major initiatives included:

1. Strengthening of "dual-qualified" teaching workforce.
2. Promoting reforms to modernizing curricula.
3. Building a regional practice centre for integration of industry and education.
4. Expanding Diversified Student Development Pathways.
5. Innovative mechanisms for international exchange and cooperation.
6. Comprehensively promoting the deep integration of artificial intelligence and education and teaching.

Currently, the Group has established over 60 industrial colleges, approval for 429 collaborative education projects through industry-university cooperation by the Ministry of Education and 268 supply-demand matching employment education projects, established school-enterprise partnerships with 4,314 enterprises, and supported Company’s institutions in applying for the right to confer master's degrees , further consolidating its academic influence and industrial competitiveness.

Increasing Investment to Strengthen the Foundations for Sustainable Development

During the period, the Group's capital expenditure amounted to RMB1,207 million, which was mainly for campus expansion and upgrading of teaching facilities. Since September 2018, the  Group’s cumulative capital expenditure has exceeded RMB15,000 million, underscoring its firm commitment to sustainable internal development.

In addition, the Group was granted a total of RMB1,429 million long-term financing  from the Asian Development Bank and the Asian Infrastructure Investment Bank, reflecting strong recognition from international financial institutions for its high-quality education practices and outstanding management. Previously, the Group also received financing support from the World Bank, making it the only listed education group recognized by the world's top three policy banks.

Strategic Transformation to Navigate Change and Enhance Overall Competitiveness

In the face of external challenges such as demographic shifts, rationalization of consumption and tightening of the financial environment, the Group has accelerated its strategic transformation across four major directions:

1. Increase undergraduate education platforms, upgrade faculty, research and curriculum systems, and promote the institution's bid for a master's degree.
2. Realigning its secondary vocational offerings toward higher vocational or academic formats to enhance the overall value chain position.
3. Strengthen capital project management to ensure high quality and controlled budget delivery.
4. Expanding RMB financing channels to enhance financial stability and flexibility.

Optimising Capital Management to Deliver Sustained Shareholder Returns

The Group will continue to prudently evaluate its capital allocation strategies, including dividend distribution and share repurchase. While maintaining ample liquidity and sound financial health, the Group will adopt a flexible approach to share buybacks to enhance shareholder returns and demonstrate strong confidence in its long-term growth prospects.

Outlook

China Education Group is remains firmly confident in the long-term prospects of the education industry. In the future, the Group will continue to uphold its mission of "Leading Educational Excellence and Innovation", advancing high-quality development through clear strategic planning, excellent execution and continuous innovation, so as to create sustainable long-term value for students, faculty  shareholders, and the society.

About China Education Group Holdings Limited (839.HK)

China Education Group Holdings Limited is a leading higher and secondary vocational education group, dedicated to cultivating application-oriented talents that meet the needs of the new era through high-quality education and innovative models.The Group operates in China, Australia, and the United Kingdom ，and Deloitte has named the Group one of China’s “Best Managed Companies” for six consecutive years.For more details, please visit:www.chinaeducation.hk.