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Scholar Education Expects 2025 Loss on Expansion Costs and Investment Defaults

Story Highlights
  • Scholar Education forecasts a 2025 net and adjusted loss, reversing last year’s profit.
  • Losses stem from expansion of new literacy centres and defaults on financial investments.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Scholar Education Expects 2025 Loss on Expansion Costs and Investment Defaults

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The latest update is out from Scholar Education Group ( (HK:1769) ).

Scholar Education Group has warned that it expects to swing to a net loss of between RMB70 million and RMB80 million for 2025, compared with a net profit of RMB145.6 million a year earlier, with adjusted figures excluding share-based compensation also turning from a RMB175.7 million profit in 2024 to an anticipated loss of RMB40 million to RMB50 million. The deterioration in earnings is attributed to the costs of an expanded business strategy, including opening new literacy learning centres that are still in their ramp-up phase and generating limited revenue, alongside fair value losses after around RMB30 million of financial investments were not redeemed on maturity due to counterparty defaults, pressuring profitability and signalling a more challenging near-term outlook for shareholders and potential investors.

The most recent analyst rating on (HK:1769) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Scholar Education Group stock, see the HK:1769 Stock Forecast page.

More about Scholar Education Group

Scholar Education Group is a Hong Kong-listed education services provider focused on literacy learning centres and related tutoring offerings across multiple cities in mainland China, with a strategy centred on expanding its geographical coverage and developing new education businesses.

Average Trading Volume: 1,598,611

Technical Sentiment Signal: Sell

Current Market Cap: HK$1.35B

Find detailed analytics on 1769 stock on TipRanks’ Stock Analysis page.

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