SCHOLAR EDU (01769) dropped over 6% again, hitting an intraday low of HK$2.22, representing a 50% decline from its yearly high of HK$5.23. As of press time, the stock was down 6.67% to HK$2.38, with turnover of HK$23.73 million.

On the news front, SCHOLAR EDU recently released its interim results for the six months ended June 30, 2025, reporting revenue of RMB 439 million, up 10.1% year-over-year. Net profit attributable to owners was RMB 62.93 million, down 23.9% year-over-year. Excluding share-based compensation expenses, adjusted net profit attributable to owners was RMB 81 million, down 13.1% year-over-year.

Everbright Securities noted that the company's gross margin for the first half was 34.3%, down 10.1 percentage points year-over-year, primarily due to new learning centers in Guangzhou being in the acceleration and ramp-up phase. The significant upfront investments in rent, salaries and other costs, combined with trial courses leading to relatively lower initial revenue, created short-term negative impact on gross margin and net profit.

Additionally, revenue growth in the first half slowed compared to 2024, mainly dragged down by the company's Shenzhen headquarters market. Since the beginning of this year, competition in the Shenzhen market has intensified. Meanwhile, the company has been advancing personnel iteration and management adjustments, with multiple factors combined leading to slower revenue growth in the Shenzhen market.