Executive Summary
Shanghai Gench Education Group delivered a standout QQ2 2025 print, underscoring a sharp year-over-year rebound in activity and a favorable cost structure. Revenue of CNY 534.054 million rose 145.9% year-over-year, driving a gross profit of CNY 317.204 million and a gross margin of 59.4%. Operating income reached CNY 208.798 million, for an operating margin of 39.1%, while net income totaled CNY 162.061 million (net margin 30.3%) and earnings per share (EPS) of CNY 0.42. EBITDA stood at CNY 259.615 million, with an EBITDARatio of 48.6%. The quarter showcases aggressive profitability at scale, supported by disciplined cost management and favorable fixed-cost absorption as enrollment and program activity expanded.
Key Performance Indicators
Key Insights
Revenue: CNY 534.054m; YoY growth: +145.87%; QoQ growth: +0.00%
Gross Profit: CNY 317.204m; Gross Margin: 59.40%
Operating Income: CNY 208.798m; Operating Margin: 39.10%; YoY operating income growth: +777.04%
Net Income: CNY 162.061m; Net Margin: 30.34%; YoY net income growth: +640.66%
EPS (diluted): CNY 0.42; YoY EPS growth: +658.12%
EBITDA: CNY 259.615m; EBITDARatio: 0.486
Balance sheet and liquidity: Current ratio 0.863, Quick ratio 0.863, Cash ratio 0.555; Debt ratio 0.228, Debt to equity 0....
Financial Highlights
Revenue: CNY 534.054m; YoY growth: +145.87%; QoQ growth: +0.00%
Gross Profit: CNY 317.204m; Gross Margin: 59.40%
Operating Income: CNY 208.798m; Operating Margin: 39.10%; YoY operating income growth: +777.04%
Net Income: CNY 162.061m; Net Margin: 30.34%; YoY net income growth: +640.66%
EPS (diluted): CNY 0.42; YoY EPS growth: +658.12%
EBITDA: CNY 259.615m; EBITDARatio: 0.486
Balance sheet and liquidity: Current ratio 0.863, Quick ratio 0.863, Cash ratio 0.555; Debt ratio 0.228, Debt to equity 0.339; Long-term debt to capitalization 0.214; Total debt to capitalization 0.253; Receivables turnover days 99.66; Asset turnover 0.147; Fixed asset turnover 0.18; Gross margin 59.4%; Net margin 30.3%; Payout ratio 22.2%; Dividend yield 3.68%; Valuation highlights: P/E 1.51, P/S 1.83, P/B 0.40; EV/EBITDA 5.86; Price fair value snapshot shows a conservative equity valuation backdrop.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
534.05M |
145.87% |
0.00% |
| Gross Profit |
317.20M |
203.46% |
0.00% |
| Operating Income |
208.80M |
777.04% |
0.00% |
| Net Income |
162.06M |
640.66% |
0.00% |
| EPS |
0.42 |
658.12% |
0.00% |
Key Financial Ratios
operatingProfitMargin
39.1%
dividendPayoutRatio
22.2%
Management Commentary
No earnings call transcript for QQ2 2025 was provided in the data set. As a result, there are no management quotes available in this feed to anchor the qualitative discussion. Investors should rely on the disclosed financials and any subsequent investor relations materials for color on strategic initiatives, margins trajectory, and enrollment trends.
Forward Guidance
There is no formal guidance disclosed for the full year 2025 in the QQ2 release. Given the earnings cadence and the sector backdrop, investors should monitor: (1) year-over-year enrollment growth and cohort mix (private university enrollment trends), (2) price discipline and any tuition-modulation strategies, (3) regulatory developments affecting private higher education in China, and (4) timing and scale of any campus expansion or program diversification. Management commentary (when available) on enrollment pipeline, capex plans, and operating leverage will be critical for assessing the trajectory of profitability beyond QQ2. In the absence of explicit guidance, a prudent scenario analysis would assume continued margin resilience if enrollment remains robust and fixed-cost absorption remains favorable, with upside from operational improvements and potential efficiency gains, offset by policy and macroeconomic risks.