Jianzhi Education reports 1H24 EPS RMB 0.22 vs. (RMB 0.75) last year

Reports 1H24 revenue RMB 209.3M vs. RMB 280.6M last year. Yong Hu, CEO of the Company, commented: “In the first half of 2024, we faced a 25.4% decline in net revenues, which was primarily driven by lower demand for IT-related solutions and educational content services. However, we view this as a strategic opportunity for improvement. Notably, we successfully reduced our cost of revenue by 34.7%, bringing it down to RMB167.6 million. This cost management initiative allowed us to achieve a gross profit of RMB41.7 million, resulting in a positive gross profit margin of 19.9%, a significant growth from 8.5% of the previous year. Our focus on operational efficiency is reflected in the reduction of operating expenses, which has contributed to our impressive transition from a net loss of RMB93.6 million in first half of 2023 to a net income of RMB27.6 million during same period in 2024. This shift underscores our commitment to enhancing profitability and positioning the Company for sustainable growth moving forward. Looking ahead, we are rolling out several key initiatives including a partnership with China’s top telecom operator to boost our B2B operations across multiple provinces, as we target to acquire massive paying users within the next three years. The partnership will offer various subscription plans, which we believe projects strong revenue and profit margins. Moreover, we are also expanding the partnership into AI applications that will initially target the education sector before expanding to other applications such as research institutions, public libraries to further enhance user engagement with our services. We remain optimistic about our future strategies and are dedicated to leveraging our strengths to navigate the challenges ahead.”