BRIEF: China Education forecasts up to $84 million profit for fiscal year
China Education Group Holdings Ltd. (0839.HK) said on Wednesday it expects to report a net profit between 440 million yuan ($61.9 million) and 600 million yuan for its fiscal year through August, compared with a net profit of 502 million yuan a year earlier.
The company added it expects to recognize an impairment loss on goodwill and intangible assets related to certain cash-generating units (CGU) located in Hainan, Guangdong and Henan provinces. The anticipated impairment primarily reflects downward revisions to projected future cash flows of those CGUs, driven by intensified competition and reduced affordability in the current environment.
Based on its preliminary assessment, the company expects the one-off, non-cash impairment loss, net of deferred tax, will range between 1.62 billion yuan and 1.7 billion yuan, and will be recognized in the 2025 fiscal year.
Shares of China Education opened down 4.5% at HK$2.98 on Thursday. The stock is down 27% from its 52-week high.
By Lau Chi Hang
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