Xinhua Winshare Publishing and Media Company (811) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB5,007 million, down 9.42% year-over-year, mainly due to declines in textbook and supplementary material sales and a decrease in student numbers following policy adjustments in the education sector.

• Net profit was RMB663 million, a 26.30% decrease year-over-year, with net profit attributable to shareholders at RMB654 million, down RMB202 million from the prior year.

• Gross profit margin declined to 36.17% from 39.05% in the prior year, reflecting changes in sales structure and increased discounts.

• The company maintained a stable financial structure, with a gearing ratio of 33.35% and cash and bank balances of RMB9,119 million as of June 30, 2026.

Financial highlights

• Operating costs decreased by 5.14% to RMB3,196 million, while gross profit margin fell to 36.17%, down 2.88 percentage points year-over-year.

• Earnings per share were RMB0.53, down from RMB0.69 in H1 2025.

• Net cash inflow from operating activities was RMB317 million, a decrease of RMB304 million year-over-year.

• Interim dividend proposed at RMB0.17 per share, totaling RMB209.75 million, subject to EGM approval.

Outlook and guidance

• Plans to strengthen high-quality content supply, accelerate digital transformation, and expand international communication, especially through translation projects and digital platforms.

• Focus on innovation in education services, optimization of reading services, and deepening supply chain digitalization.

• Continued emphasis on capital operations to improve quality and efficiency, leveraging technology and capital for business transformation.