Expansion CostsGaotu's aggressive offline expansion is projected to result in a significant loss of RMB360mn for the offline segment, challenging the company's profitability despite plans for a quick store-level breakeven.
Financial PerformanceGaotu's recent financial results highlight an expected net loss of approximately RMB1bn for the full year, reflecting the company's struggle to balance expansion with financial sustainability.
ProfitabilityThe high school division is facing margin pressure, with profitability expected to shrink due to strategic discounting for new student cohorts affecting near-term revenue.