Wah Fu Education Group Ltd. Announces Financial Results for the First Half of Fiscal Year 2025
Wah Fu Education Group (NASDAQ:WAFU) reported its financial results for H1 FY2025 ended September 30, 2024. The company experienced significant declines across key metrics:
Revenue decreased 23.3% year-over-year to $2.80 million, primarily due to reduced self-taught higher education exam services in their B2B2C segment. Gross profit fell 23.8% to $1.57 million, with margins slightly declining to 56.1%. The company reported an operating loss of $0.57 million compared to an operating income of $0.27 million in the previous year.
Net loss was $0.58 million ($0.12 loss per share) versus a net income of $0.13 million ($0.05 earnings per share) year-over-year. The decline was mainly attributed to decreased online education service revenue following exam cancellations in Hunan province. As of September 30, 2024, cash position stood at $10.15 million.
Wah Fu Education Group (NASDAQ:WAFU) ha riportato i risultati finanziari per il primo semestre dell'anno fiscale 2025, terminato il 30 settembre 2024. L'azienda ha registrato significative diminuzioni in metriche chiave:
Il fatturato è diminuito del 23,3% rispetto all'anno precedente, raggiungendo 2,80 milioni di dollari, principalmente a causa della riduzione dei servizi di esami di istruzione superiore autodidatta nel loro segmento B2B2C. L'utile lordo è sceso del 23,8% a 1,57 milioni di dollari, con margini in leggera diminuzione al 56,1%. L'azienda ha riportato una perdita operativa di 0,57 milioni di dollari rispetto a un utile operativo di 0,27 milioni di dollari nell'anno precedente.
La perdita netta è stata di 0,58 milioni di dollari (0,12 dollari di perdita per azione) rispetto a un utile netto di 0,13 milioni di dollari (0,05 dollari di utile per azione) anno su anno. Il calo è stato principalmente attribuito alla diminuzione del fatturato dei servizi di istruzione online a seguito delle cancellazioni degli esami nella provincia di Hunan. Al 30 settembre 2024, la posizione di cassa era di 10,15 milioni di dollari.
Wah Fu Education Group (NASDAQ:WAFU) reportó sus resultados financieros para el primer semestre del año fiscal 2025, que finalizó el 30 de septiembre de 2024. La empresa experimentó declives significativos en métricas clave:
Los ingresos disminuyeron un 23,3% interanual a 2,80 millones de dólares, principalmente debido a la reducción de los servicios de exámenes de educación superior autodidacta en su segmento B2B2C. La ganancia bruta cayó un 23,8% a 1,57 millones de dólares, con márgenes que disminuyeron ligeramente al 56,1%. La empresa reportó una pérdida operativa de 0,57 millones de dólares en comparación con una ganancia operativa de 0,27 millones de dólares en el año anterior.
La pérdida neta fue de 0,58 millones de dólares (0,12 dólares de pérdida por acción) frente a una ganancia neta de 0,13 millones de dólares (0,05 dólares de ganancias por acción) interanualmente. La disminución se atribuyó principalmente a la reducción de los ingresos por servicios de educación en línea tras la cancelación de exámenes en la provincia de Hunan. Al 30 de septiembre de 2024, la posición de efectivo era de 10,15 millones de dólares.
Wah Fu Education Group (NASDAQ:WAFU)는 2024년 9월 30일로 종료된 2025 회계연도 상반기 재무 결과를 발표했습니다. 회사는 주요 지표에서 상당한 감소를 경험했습니다:
매출은 전년 대비 23.3% 감소하여 280만 달러에 이르렀으며, 이는 주로 B2B2C 부문에서 자가 학습 고등 교육 시험 서비스의 감소 때문입니다. 총 이익은 23.8% 감소하여 157만 달러에 이르렀고, 마진은 56.1%로 약간 감소했습니다. 회사는 전년의 운영 수익 27만 달러에 비해 57만 달러의 운영 손실을 기록했습니다.
순손실은 58만 달러(주당 0.12달러 손실)로, 전년의 순이익 13만 달러(주당 0.05달러 이익)에 비해 감소했습니다. 이러한 감소는 후난성에서의 시험 취소에 따른 온라인 교육 서비스 수익 감소에 주로 기인했습니다. 2024년 9월 30일 기준으로 현금 보유액은 1015만 달러였습니다.
Wah Fu Education Group (NASDAQ:WAFU) a publié ses résultats financiers pour le premier semestre de l'exercice 2025, se terminant le 30 septembre 2024. L'entreprise a connu des baisses significatives dans des indicateurs clés :
Le chiffre d'affaires a diminué de 23,3 % par rapport à l'année précédente, atteignant 2,80 millions de dollars, principalement en raison de la réduction des services d'examen d'enseignement supérieur autodidacte dans leur segment B2B2C. Le bénéfice brut a chuté de 23,8 % à 1,57 million de dollars, avec des marges légèrement en baisse à 56,1 %. L'entreprise a enregistré une perte opérationnelle de 0,57 million de dollars par rapport à un bénéfice opérationnel de 0,27 million de dollars l'année précédente.
La perte nette s'est élevée à 0,58 million de dollars (0,12 dollar de perte par action) contre un bénéfice net de 0,13 million de dollars (0,05 dollar de bénéfice par action) d'une année sur l'autre. La baisse a été principalement attribuée à la diminution des revenus des services d'éducation en ligne suite aux annulations d'examens dans la province du Hunan. Au 30 septembre 2024, la position de trésorerie s'élevait à 10,15 millions de dollars.
Wah Fu Education Group (NASDAQ:WAFU) hat seine finanziellen Ergebnisse für das erste Halbjahr des Geschäftsjahres 2025, das am 30. September 2024 endete, veröffentlicht. Das Unternehmen verzeichnete signifikante Rückgänge in wichtigen Kennzahlen:
Der Umsatz sank im Jahresvergleich um 23,3% auf 2,80 Millionen Dollar, hauptsächlich aufgrund reduzierter Dienstleistungen für Selbststudium im Bereich der höheren Bildung in ihrem B2B2C-Segment. Der Bruttogewinn fiel um 23,8% auf 1,57 Millionen Dollar, wobei die Margen leicht auf 56,1% zurückgingen. Das Unternehmen meldete einen operativen Verlust von 0,57 Millionen Dollar im Vergleich zu einem operativen Gewinn von 0,27 Millionen Dollar im Vorjahr.
Der Nettoverlust betrug 0,58 Millionen Dollar (0,12 Dollar Verlust pro Aktie) im Vergleich zu einem Nettogewinn von 0,13 Millionen Dollar (0,05 Dollar Gewinn pro Aktie) im Vorjahresvergleich. Der Rückgang wurde hauptsächlich auf die gesunkenen Einnahmen aus Online-Bildungsdiensten infolge von Prüfungsausfällen in der Provinz Hunan zurückgeführt. Zum 30. September 2024 betrug die Liquiditätsposition 10,15 Millionen Dollar.
- Maintained strong cash position of $10.15 million
- Sustained relatively stable gross margin at 56.1%
- Revenue declined 23.3% to $2.80 million
- Net loss of $0.58 million vs. profit of $0.13 million year-over-year
- Operating loss of $0.57 million vs. income of $0.27 million previous year
- General and administrative expenses increased 40.71%
- Net cash used in operations increased to $1.19 million from $0.10 million
Insights
Wah Fu Education's first half fiscal 2025 results reveal significant deterioration in financial performance. Revenue dropped
The company's transition from profitability to losses is particularly concerning. Wah Fu reported an operating loss of
While gross margin remained relatively stable at
The cash burn rate has accelerated substantially, with operating activities consuming
The implementation of a dual-class share structure, giving certain holders 15x voting rights, further compounds investor concerns by concentrating control while financial performance deteriorates.
BEIJING, March 07, 2025 (GLOBE NEWSWIRE) -- Wah Fu Education Group Limited (“Wah Fu” or the “Company”) (NASDAQ:WAFU), a provider of online education and exam preparation services, as well as related training materials and technology solutions for both institutions and individuals, today announced its unaudited financial results for the six months ended September 30, 2024.
Financial Highlights for the Six Months Ended September 30, 2024
| For the Six Months Ended September 30, | ||||||||||||
| ($’000, except per share data) | 2024 | 2023 | % Change | |||||||||
| Revenue | $ | 2,799 | $ | 3,648 | (23.3 | )% | ||||||
| Gross profit | $ | 1,572 | $ | 2,063 | (23.8 | )% | ||||||
| Gross margin | 56.1 | % | 56.6 | % | (0.5 | )pp | ||||||
| (Loss) income from operations | $ | (571 | ) | $ | 273 | (309.5 | )% | |||||
| Operating (loss) profit margin | (20.4 | )% | 7.5 | % | (27.9 | )pp | ||||||
| Net (loss) income | $ | (581 | ) | $ | 125 | (566.3 | )% | |||||
| Basic and diluted (loss) earnings per share | $ | (0.12 | ) | $ | 0.05 | (343.3 | )% | |||||
* pp: percentage points
- Revenue decreased by
23.3% year-over-year to$2.80 million for the six months ended September 30, 2024 from$3.65 million for the same period of the prior fiscal year. The decrease in revenue was primarily attributable to a decrease in self-taught higher education exams included in our Business-to-Business-to-Customer (“B2B2C”) revenue from our online education services. - Gross profit decreased by
23.8% to$1.57 million for the six months ended September 30, 2024 from$2.06 million for the same period of the prior fiscal year. Gross margins were56.1% and56.6% for the six months ended September 30, 2024 and 2023, respectively. The decrease in gross profit of online education services was primarily due to the decrease in revenue. - Loss from operations was
$0.57 million for the six months ended September 30, 2024 when it was income from operation of$0.27 million for the six months ended September 30, 2023. Operating loss margin was20.4% for the six months ended September 30, 2024, compared to operating profit margin of7.5% for the same period of the prior fiscal year. - Net loss was
$0.58 million or, loss per share of$0.12 for the six months ended September 30, 2024, compared to net income of$0.13 million , or income per share of$0.05 , for the same period of the prior fiscal year.
Unaudited Financial Results for the six months ended September 30, 2024
Revenue
For the six months ended September 30, 2024, revenue decreased by
For the six months ended September 30, 2024, revenue from providing online education services decreased by
Cost of revenue
Cost of revenue decreased by
Gross profit
Gross profit decreased by
Operating expenses
Selling expenses decreased by
General and administrative expenses increased by
Total operating expenses increased by
Income (loss) from operations
Loss form from operations was
Other income (expenses)
Total other income expenses, including interest income, net of other expenses, net other income was
Income before income taxes
Loss before income taxes was
Net income (loss) and earnings (loss) per share
Net loss was
After deducting non-controlling interests, net loss attributable to the Company was
Weighted average numbers of shares outstanding were 4,410,559 and 4,440,085 for the six months ended September 30, 2024 and 2023.
Financial Condition
As of September 30, 2024, the Company had cash of
Net cash used in operating activates was
Subsequent Events
On January 21, 2025, Wah Fu Education Group Ltd. (the “Company”) amended and restated its memorandum and articles of association, including
- Creation of a new class of Class A shares with each Class A share being entitled to fifteen (15) votes on all matters subject to vote at general meetings of the Company. Any Class A Shares which are fully paid may be converted into ordinary shares on a one-for-one basis at the option of the holder of such Class A Shares upon giving five days' notice by such holder to the Company.
- The maximum number of shares that the Company is authorized to issue was increased from 30,000,000 ordinary shares of US
$0.01 par value each to 600,000,000 shares divided into 500,000,000 ordinary shares with a par value of US$0.01 each and 100,000,000 Class A shares with a par value of US$0.01 each. - The redemption of 1,488,000 ordinary shares held by HFGFR Inc. and reissue of 1,488,000 Class A Shares to HFGFR Inc. were approved.
Management has evaluated subsequent events through March 7, 2025, the date which the financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2024 have been incorporated into these financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”
About Wah Fu Education Group Limited
Headquartered in Beijing, China, Wah Fu Education Group Limited provides online training and exam preparation services, as well as related training materials and technology solutions for both institutions, such as universities and training institutions, and students. For more information about Wah Fu, please visit www.edu-edu.cn.
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are not statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the online training industry in China and the other markets the Company serves or plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the other markets the Company serves or plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the “SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Raincy Du
ir@edu-edu.com.cn
| WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| As of September 30, | As of March 31, | |||||||
| 2024 | 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 10,145,053 | $ | 11,045,708 | ||||
| Accounts receivable, net | 646,487 | 1,039,580 | ||||||
| Other receivables, net | 1,014,317 | 188,441 | ||||||
| Loan to third parties, current | 514,634 | 524,969 | ||||||
| Loan to related parties | 1,778,524 | 1,778,524 | ||||||
| Other current assets | 59,728 | 95,583 | ||||||
| TOTAL CURRENT ASSETS | 14,158,743 | 14,672,805 | ||||||
| Loan to third parties, noncurrent | 215,229 | 194,229 | ||||||
| Property and equipment, net | 464,073 | 485,660 | ||||||
| Intangible assets, net | 1,918 | 7,456 | ||||||
| Long-term investment | 142,499 | 138,498 | ||||||
| Operating lease right-of-use assets | 237,865 | 341,895 | ||||||
| Long-term rent deposit | 45,735 | 53,303 | ||||||
| Deferred tax assets, net | 231,919 | 262,577 | ||||||
| TOTAL ASSETS | $ | 15,497,981 | $ | 16,156,423 | ||||
| CURRENT LIABILITIES: | ||||||||
| Due to related parties | $ | 315,512 | $ | 315,512 | ||||
| Deferred revenue | 1,575,010 | 1,818,426 | ||||||
| Operating lease liabilities, current | 197,316 | 260,283 | ||||||
| Taxes payable | 1,003,350 | 969,595 | ||||||
| Other payables | 300,018 | 176,257 | ||||||
| Accrued expenses and other liabilities | 165,348 | 173,791 | ||||||
| Accounts payable | 39,023 | 210,348 | ||||||
| TOTAL CURRENT LIABILITIES | 3,595,577 | 3,924,212 | ||||||
| Operating lease liabilities, noncurrent | 39,377 | 72,975 | ||||||
| TOTAL LIABILITIES | 3,634,954 | 3,997,187 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| EQUITY | ||||||||
| Ordinary shares, | 44,106 | 44,106 | ||||||
| Additional paid-in capital | 5,124,236 | 5,124,236 | ||||||
| Statutory reserve | 867,530 | 867,530 | ||||||
| Retained earnings | 5,813,559 | 6,362,554 | ||||||
| Accumulated other comprehensive loss | (923,282 | ) | (1,248,648 | ) | ||||
| Total shareholders’ equity | 10,926,149 | 11,149,778 | ||||||
| Non-controlling interest | 936,878 | 1,009,458 | ||||||
| TOTAL EQUITY | 11,863,027 | 12,159,236 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 15,497,981 | $ | 16,156,423 | ||||
| WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||
| For the Six Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| REVENUE | $ | 2,799,328 | $ | 3,647,954 | ||||
| COST OF REVENUE AND RELATED TAX | ||||||||
| Cost of revenue | 1,217,472 | 1,569,477 | ||||||
| Business and sales related tax | 10,083 | 15,606 | ||||||
| GROSS PROFIT | 1,571,773 | 2,062,871 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling expenses | 756,639 | 804,790 | ||||||
| General and administrative expenses | 1,386,486 | 985,346 | ||||||
| Total operating expenses | 2,143,125 | 1,790,136 | ||||||
| (LOSS) INCOME FROM OPERATIONS | (571,352 | ) | 272,735 | |||||
| OTHER(EXPENSES) INCOME | ||||||||
| Interest income | 99,809 | 98,240 | ||||||
| Other expenses | (19,254 | ) | (190,929 | ) | ||||
| Total other income (expense), net | 80,555 | (92,689 | ) | |||||
| (LOSS) INCOME BEFORE INCOME TAX PROVISION | (490,797 | ) | 180,046 | |||||
| PROVISION FOR INCOME TAXES | 89,953 | 55,492 | ||||||
| NET (LOSS) INCOME | (580,750 | ) | 124,554 | |||||
| Less: net loss attributable to non-controlling interest | (31,755 | ) | (102,575 | ) | ||||
| NET (LOSS) INCOME ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED | $ | (548,995 | ) | $ | 227,129 | |||
| COMPREHENSIVE (LOSS) INCOME | ||||||||
| Net income | (580,750 | ) | 124,554 | |||||
| Other comprehensive loss: foreign currency translation gain (loss) | 284,541 | (732,741 | ) | |||||
| Total comprehensive loss | $ | (296,209 | ) | (608,187 | ) | |||
| Less: Comprehensive (loss) income attributable to non-controlling interest | (40,825 | ) | 2,352 | |||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED | $ | (255,384 | ) | $ | (610,539 | ) | ||
| (Loss) earnings per ordinary share - basic and diluted | $ | (0.12 | ) | $ | 0.05 | |||
| Weighted average shares - basic and diluted | 4,410,559 | 4,440,085 | ||||||
| WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATION STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||
| Ordinary Shares | Additional Paid-in | Statutory | Retained | Accumulated Other Comprehensive | Shareholders’ | Non-controlling | Total | ||||||||||||||||||||||||||||
| Shares | Amount | Capital | Reserves | Earnings | Income (Loss) | Equity | Interest | Equity | |||||||||||||||||||||||||||
| Balance at March 31, 2024 | 4,410,559 | $ | 44,106 | $ | 5,124,236 | $ | 867,530 | $ | 6,362,554 | $ | (1,248,648 | ) | $ | 11,149,778 | $ | 1,009,458 | $ | 12,159,236 | |||||||||||||||||
| Net loss | - | - | - | (548,995 | ) | - | (548,995 | ) | (31,755 | ) | (580,750 | ) | |||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | 325,366 | 325,366 | (40,825 | ) | 284,541 | |||||||||||||||||||||||||
| Balance at September 30, 2024 | 4,410,559 | $ | 44,106 | $ | 5,124,236 | $ | 867,530 | $ | 5,813,559 | $ | (923,282 | ) | $ | 10,926,149 | $ | 936,878 | $ | 11,863,027 | |||||||||||||||||
| Balance at March 31, 2023 | 4,440,085 | $ | 44,401 | $ | 5,123,941 | $ | 867,530 | $ | 6,417,842 | $ | (752,391 | ) | $ | 11,701,323 | $ | 1,328,660 | $ | 13,029,983 | |||||||||||||||||
| Net income (loss) | - | - | - | 227,129 | - | 227,129 | (102,575 | ) | 124,554 | ||||||||||||||||||||||||||
| Appropriation of statutory reserve | - | - | - | 40,339 | (40,339 | ) | - | - | - | - | |||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | (735,093 | ) | (735,093 | ) | 2,352 | (732,741 | ) | |||||||||||||||||||||||
| Balance at September 30, 2023 | 4,440,085 | $ | 44,401 | $ | 5,123,941 | $ | 907,869 | $ | 6,604,632 | $ | (1,487,484 | ) | $ | 11,193,359 | $ | 1,228,437 | $ | 12,421,796 | |||||||||||||||||
| WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the six months ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (580,750 | ) | $ | 124,554 | |||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 45,344 | 37,158 | ||||||
| Non-cash lease expense | 110,983 | 122,276 | ||||||
| Loss from disposal of property and equipment | 3,245 | - | ||||||
| Provision for doubtful accounts | 127,686 | 194,014 | ||||||
| Interest income from loan to third parties | (14,995 | ) | 1,445 | |||||
| Deferred tax benefit | 37,262 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 284,584 | (225,539 | ) | |||||
| Other receivable, net | (782,810 | ) | (33,407 | ) | ||||
| Other current assets | 37,521 | (112,254 | ) | |||||
| Deferred revenue | (288,352 | ) | (115,033 | ) | ||||
| Taxes payable | 5,601 | (12,102 | ) | |||||
| Accounts payable | - | (131,131 | ) | |||||
| Other payable | 116,056 | (1,551 | ) | |||||
| Operating lease liabilities | (103,468 | ) | 58,915 | |||||
| Accrued expenses and other liabilities | (185,969 | ) | (7,708 | ) | ||||
| Net cash used in operating activities | (1,188,062 | ) | (100,363 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (8,281 | ) | - | |||||
| Repayment received for loans to third parties | 24,845 | - | ||||||
| Purchase of ownership of a subsidiary | (53,733 | ) | ||||||
| Net cash used in investing activities | (37,169 | ) | - | |||||
| Effect of exchange rate fluctuation on cash | 324,576 | (1,045,602 | ) | |||||
| Net decrease in cash | (900,655 | ) | (1,145,965 | ) | ||||
| Cash at beginning of the period | 11,045,708 | 12,567,463 | ||||||
| Cash at end of the period | $ | 10,145,053 | $ | 11,421,498 | ||||
| Supplemental cash flow information | ||||||||
| Cash paid for income taxes | $ | (49,575 | ) | $ | (37,190 | ) | ||
| Non-cash financing activities | ||||||||
| Right of use assets obtained in exchange for operating lease obligations | $ | - | $ | 200,115 | ||||
FAQ
What caused WAFU's revenue decline in H1 FY2025?
How much did WAFU's operating performance deteriorate in H1 FY2025?
What is WAFU's current financial position as of September 30, 2024?
What significant corporate changes did WAFU announce for early 2025?
