Wah Fu Education Group Ltd (WAFU) SEC Filings, Jul 31, 2025

Wah Fu Education Group (WAFU) FY 2025 Form 20-F highlights:

• Revenue fell 14% YoY to $6.19 million (-42% vs FY 2023); gross profit slipped to $2.58 million but margin held near 42%.
• Operating loss widened to $0.39 million and net loss was $0.37 million; operating cash outflow increased to $0.97 million.
• Cash remained strong at $10.13 million (91% of total assets) with no debt; shareholders’ equity totals $11.77 million.
• Only 5% of revenue is generated by the PRC VIE; Wah Fu, a BVI holding company, relies on contractual control of the VIE for licenses and ICP assets.
• PRC regulatory risks dominate: variable-interest-entity enforceability, potential CSRC/CAC approvals, capital controls, and HFCAA delisting risk (auditor is PCAOB-inspected US firm, reducing immediate threat).
• Cash is largely held in China; dividend upstreaming is subject to SAFE, tax and retained-earnings limits.
• Company notes declining enrollments, intense competition, and need for continual course investment as core operating risks.

Bottom line: shrinking top-line and cash burn offset a solid balance-sheet; long-term value hinges on reversing revenue contraction and navigating PRC oversight.