China's educational services provider ChinaEdu Corp. (CEDU) announced late Monday that loss for the third quarter narrowed over the same quarter last year, boosted by higher margins and a strong 25.4% revenue growth. Results were also impacted by a goodwill impairment charge and the adoption of the new income tax rate. The company also provided revenue forecast for fourth quarter.
In a statement, chairman and chief executive officer, Julia Huang said, "We are pleased to report another quarter of strong execution and consistent growth. Despite a non-cash goodwill impairment charge incurred during the third quarter, our third quarter financial results reflect strong underlying operations and our ability to continue to deliver strong results."
The Beijing, China-based ChinaEdu reported a net loss of RMB 15.31 million or RMB 0.26 per share or US$2.25 million or US$0.04 per share for the third quarter, narrower than RMB 19.42 million or RMB 0.47 per share in the year-ago quarter.
Earnings per ADS for the quarter were RMB 0.78 or US$0.12 per share, compared to RMB 1.41 in the prior-year.
Excluding one-time non-recurring items, adjusted net income for the quarter rose more than two-fold to RMB 7.42 million or US$1.09 million, from RMB 3.24 million in the comparable quarter a year ago. On average, analysts polled by First Call/Thomson Financial expected earnings of US$0.05 per share for the third quarter.
Total net revenues for the quarter rose 25.4% to RMB 82.0 million or US$12.08 million from RMB 65.41 million in the same quarter last year. Wall Street analysts had a consensus revenue estimate of $11.49 million for the quarter.
Net revenues from online degree programs climbed 34.4%, fueled by a 25% year-over-year increase in spring students enrollments. Deferred revenue at the end of the third quarter of 2008 was RMB 33.2 million or US$4.9 million.
Loss from operations for the latest quarter narrowed to RMB 1.48 million or US$0.22 million, from $11.70 million in the prior-year quarter, while total operating expenses was RMB 52.29 million or US$7.07 million, up 10.4% from RMB 47.34 million in the year-ago quarter.
Gross profit was RMB 50.80 million or US$7.48 million, up 42.5% from RMB 35.65 million in the comparable quarter a year ago, while gross margin percentage climbed 750 basis points to 62.0% from last year.
The company ended the third quarter with cash and cash equivalents of RMB 303.33 million or US$44.67 million, compared to RMB 128.83 million at end of the prior-year quarter.
For the nine-month period, net loss narrowed to RMB 4.04 million or RMB 0.07 per share or US$0.59 million or US$0.01 per share, from RMB 6.95 million or RMB 0.17 per share in the year-ago period.
Earnings per ADS for the period were RMB 0.21 or US$0.03, compared to RMB 0.51 in the same period a year ago.
Excluding one-time non-recurring items, adjusted net income for the period rose to RMB 24.88 million or US$3.67 million, from RMB 21.00 million in the comparable period a year ago.
Total net revenues for the year-to-date period jumped 24.7% to RMB 231.18 million or US$34.05 million, from RMB 185.38 million in the same period last year.
Looking ahead to the fourth quarter, the company expects net revenues in a range of RMB 82 million to RMB 85 million or US$12.0 million to $12.4 million. Analysts expect the company to report revenues of $12.31 million for the fourth quarter of fiscal 2008.
CEDU last traded on Friday at $4.00.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.