According to the Zhitong Finance App, Lide Education (01449) announced that the Group expects to obtain a comprehensive profit of no more than RMB 30 million after tax for the six months ending February 29, 2024, while the comprehensive profit after tax for the six months ending February 28, 2023 is approximately RMB 41.1 million.
According to the announcement, the decline in profit was mainly due to (i) earnings growth lower than corresponding cost growth and (ii) increased financing costs. Due to the need to meet the qualification assessment for undergraduate teaching work during this period, compared with previous periods, the Group spent more on the construction and maintenance of campus buildings and teaching facilities, and organization of student activities and teacher training during this period. Furthermore, financing costs increased during the current period compared to previous periods due to increased bank and other borrowing.