Briefing: CHINA EDU GROUP forecasts a maximum profit of 600 million this fiscal year
CHINA EDU GROUP expects its net profit for the fiscal year ending in August to reach between 440 million and 600 million yuan, compared to 502 million yuan in the same period last year. The expected net profit has taken into account the impact of goodwill and intangible asset impairment, mainly due to the downward adjustment of unit cash flow in Hainan, Guangdong, and Henan. The impairment this time is approximately 1.62 to 1.7 billion yuan, which is of a non-cash nature. The company's stock price fell 4.5% on Thursday, with a cumulative decline of 27% over the past year
Education company CHINA EDU GROUP (0839.HK) announced on Wednesday that for the fiscal year ending in August this year, it expects to record a net profit of HKD 440 million to HKD 600 million, compared to a net profit of HKD 502 million in the same period last year.
China Edu revealed that the expected net profit reflects the impact of impairment of goodwill and intangible assets. The group stated that this is mainly due to units located in Hainan Province, Guangdong Province, and Henan Province, which are expected to have a downward adjustment in future cash flow estimates, leading to impairment of goodwill and intangible assets.
The group further stated that the regions where the units are located are experiencing increased market supply and a decline in overall purchasing power under the current macroeconomic conditions; preliminary estimates indicate that this impairment is non-cash in nature, approximately HKD 1.62 billion to HKD 1.7 billion.
China Edu Group's stock fell 4.5% to HKD 2.98 on Thursday, with the company's stock price down 27% from its high over the past year
