SCVE Group 2025 Results: Revenue Jumps 15.8% to RMB0.79 Billion but Tax Re-assessment Swings Bottom Line to RMB59 Million Loss; Auditor Gives Qualified Opinion

Bulletin Express
Mar 30

South China Vocational Education Group (SCVE Group) reported FY 2025 revenue of RMB791.76 million, up 15.8% year on year, driven by higher tuition and boarding income from a 36,876-strong student body. Gross profit expanded 20.1% to RMB228.19 million, lifting gross margin to 28.8% (FY 2024: 27.8%).

Profit before tax slipped 4.0% to RMB81.46 million, but a RMB140.91 million income-tax charge—including RMB103.83 million of surcharges following a local tax re-assessment—turned last year’s RMB90.89 million profit into a RMB59.45 million net loss. Other expenses surged 185.6% to RMB99.42 million, largely reflecting a RMB61.37 million late-payment surcharge tied to the same tax issue. Basic and diluted EPS moved from RMB0.07 to a loss of RMB0.04.

Cost controls partly mitigated the hit: selling and distribution expenses fell 26.3% to RMB31.38 million, and administrative costs eased 5.3% to RMB82.90 million. Finance costs declined 20.3% to RMB9.41 million owing to higher capitalised interest.

Cash and cash equivalents rose to RMB479.59 million (FY 2024: RMB279.19 million), yet short-term liabilities expanded faster, lifting net current liabilities to RMB275.81 million and pushing the gearing ratio to 24.3% (FY 2024: 10.9%). Total borrowings increased to RMB378.0 million. Net assets stood at RMB1.56 billion, down 6.1%.

An interim dividend of HK2.0 cents per share was paid; no final dividend is proposed.

Unutilised proceeds from the 2021 IPO amounting to HK$50.10 million (11.2% of the total) have been reallocated from planned acquisitions and an industry-education park to expanding teaching facilities and equipment, with the spending window extended to December 2026.

AOGB CPA Limited issued a qualified opinion, citing insufficient evidence for RMB12.50 million of promotion expenses incurred by a subsidiary in 2024. The limitation affects comparability of FY 2024 and FY 2025 figures but not the current-year balances.

SCVE Group continues to target high-quality development in the Greater Bay Area, deepen AI-related vocational training, and pursue selective M&A while prioritising internal capacity expansion amid a challenging operating environment.

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