Leader edu (01449.HK) issued a profit warning, expecting that the net consolidated profit after taxation for the year ending at the end of August this year will be approximately 18 million to 20 million RMB, while the net consolidated profit after taxation in the same period last year was about 57.6 million RMB.

The group stated that the decline in profit was mainly due to an increase in financing costs. The need for funds to build schools and campuses and to support the group's general operational funding needs resulted in increased borrowing from banks and other sources, leading to an annual increase in financing costs during the period.