Education services provider Tianli International Holdings Ltd. (1773.HK) on Thursday said it expects to report revenue of about 3.8 billion yuan ($568 million) for its fiscal year through Aug. 31, up 5.9% year on year. But it expects to report its profit fell 7.4% to 10.5% to between 580 million yuan and 600 million yuan, while its adjusted profit declined 12.3% to 15.6% to between 520 million yuan and 540 million yuan.
The company said the sales growth was driven by the expansion of its supply-chain product offerings, while the promotion and application of its AI product series also lifted revenue from smart education services. However, higher R&D spending on its AI quality-control platform and marketing expenses for AI learning products, as well as costs related to preparing for and operating a Hong Kong international school, weighed on its profit. Additional management consulting fees and increased expected credit impairment losses on receivables also contributed to the decline.
Tianli shares opened lower on Thursday and were at HK$0.72 by the midday break, down 2.7%. The stock has fallen 69.6% so far this year.
By Lee Shih Ta
To subscribe to Bamboo Works weekly free newsletter, click here
Related Articles
RELATED ARTICLES
-
Tianli turnaround fails to sway education-averse investors
- Youzan revenue rises, but AI spending weighs down profit
- Yatsen’s revenue rises, but loss widens on heavy marketing spending
- TAL Education finds gold – and risk – in U.S. acquisition
-
InnoLight shines on AI infrastructure spending binge
3308.HK300308.SHE
-
New Oriental’s revenue rises 23% in May quarter, but adjusted profit declines
EDU.US9901.HK
- BRIEF: XPeng revenue falls 18% in first quarter, as loss ballons on AI spending
