Executive Summary
Shanghai Gench Education Group Limited reported QQ1 2025 revenue of 267,027,000 CNY, down 0.26% year over year, but up 22.93% quarter over quarter versus Q4 2024. The quarter delivered a robust gross margin of 59.40% (gross profit 158,602,000 CNY) and an EBITDA margin of 48.61% (EBITDA 129,807,250 CNY) with operating income of 104,399,000 CNY and net income of 81,030,500 CNY, implying a net margin of 30.35% and earnings per share (EPS) of 0.21. These metrics reflect a high-margin services mix and disciplined cost management on an asset-light operating model typical of private higher education services. The YoY revenue decline was modest and largely overshadowed by QoQ seasonality, suggesting utilization of campus capacity and student intake gains in the current period.
While top-line growth remains modest on a year-over-year basis, the margin profile improved notably QoQ, aided by a favorable cost structure and stable revenue contribution from core education services. EBITDA and net income demonstrate substantial profitability relative to revenue, underscoring operating leverage within the QQ1 2025 period. Management commentary (not provided in the current data set) would typically address enrollment trends, program mix evolution, capacity utilization, and ongoing cost optimization. In the absence of transcript data, investors should monitor enrollment momentum, program diversification, campus utilization, and any disclosed guidance on expansion plans and capital allocation.
Key Performance Indicators
QoQ: 338.52% | YoY:-12.69%
QoQ: 270.33% | YoY:-9.89%
QoQ: 279.06% | YoY:-8.70%
Key Insights
Revenue: 267,027,000 CNY (YoY -0.26%; QoQ +22.93%)
Gross Profit: 158,602,000 CNY (Gross Margin: 59.40%)
EBITDA: 129,807,250 CNY (EBITDA Margin: 48.61%)
Operating Income: 104,399,000 CNY (Operating Margin: 39.10%)
Total Other Income/Expenses: 1,768,000 CNY
Income Before Tax: 106,167,000 CNY (Pre-tax Margin: 39.76%)
Income Tax Expense: 25,136,500 CNY
Net Income: 81,030,500 CNY (Net Margin: 30.35%)
EPS (Diluted): 0.21 CNY
Weighted Avg Shares: 394,500,000
Depreciation & Amortization: 25,408,250 ...
Financial Highlights
Revenue: 267,027,000 CNY (YoY -0.26%; QoQ +22.93%)
Gross Profit: 158,602,000 CNY (Gross Margin: 59.40%)
EBITDA: 129,807,250 CNY (EBITDA Margin: 48.61%)
Operating Income: 104,399,000 CNY (Operating Margin: 39.10%)
Total Other Income/Expenses: 1,768,000 CNY
Income Before Tax: 106,167,000 CNY (Pre-tax Margin: 39.76%)
Income Tax Expense: 25,136,500 CNY
Net Income: 81,030,500 CNY (Net Margin: 30.35%)
EPS (Diluted): 0.21 CNY
Weighted Avg Shares: 394,500,000
Depreciation & Amortization: 25,408,250 CNY
Note: R&D expense line item is not disclosed in the QQ1 results.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
267.03M |
-0.26% |
22.93% |
| Gross Profit |
158.60M |
-4.12% |
51.73% |
| Operating Income |
104.40M |
-12.69% |
338.52% |
| Net Income |
81.03M |
-9.89% |
270.33% |
| EPS |
0.21 |
-8.70% |
279.06% |
Management Commentary
No QQ1 2025 earnings call transcript content was provided in the data set. Consequently, specific management quotes and themes could not be extracted. Expected discussion themes in a traditional Chinese private higher-education earnings call would include: enrollment trends, capacity utilization, program mix evolution (e.g., expansion of undergraduate offerings), tuition/fee adjustments, cost control measures, capital expenditure plans for campus facilities, and any guidance on growth initiatives or regional expansion. Once transcript data is available, these themes can be anchored to concrete quotes and timing.
Forward Guidance
There is no explicit guidance in the supplied data. Given the QQ1 2025 performance, the company demonstrates strong profitability with high gross and EBITDA margins, suggesting a favorable cost structure and utilization of existing capacity. Our base-case view assumes continued steady enrollment in core programs and controlled SG&A as a prudent optimization lever. However, the following factors could influence the trajectory:
- Enrollment and capacity utilization: Sustained or growing student intake is critical to sustain top-line and leverage fixed costs.
- Regulatory environment: Chinaβs higher education sector, particularly private institutions, faces policy scrutiny and potential funding/support changes that could impact demand and tuition dynamics.
- Expansion plans: Any campus or program expansion could alter working capital needs and capex intensity, affecting cash flow and balance sheet health.
- Competition and pricing: Tuition sensitivity and competitive dynamics in Shanghai and other regions will shape pricing power and cross-sell opportunities.
Investors should monitor enrollment trends, program diversification, utilization rates, and any qualitative guidance on expansion and capital deployment as more information becomes available.