Scholar Education Group provided preliminary unaudited consolidated group earnings guidance for the six months ended 30 June 2022. For the period, the Group expects to record a net loss ranging from RMB 30.0 million to RMB 35.0 million, as compared to a net profit of RMB 42.7 million for the six months ended 30 June 2021. The expected net loss for the six months ended 30 June 2022 was mainly attributable to a decrease in fair value of certain financial assets that were overdue for redemption or might be subject to risk of overdue redemption.

The Group expects the foregoing to contribute a net loss of approximately RMB 70.0 million to the Company's income statement. Excluding the foregoing impact (which was a non-cash item that was not directly related to the Group's operating performance), the Group expects to record an operating profit of approximately RMB 28.5 million for the six months ended 30 June 2022.