Group 1 - The core viewpoint of the article indicates that Thinker Education (01769) experienced a decline of over 5% in its stock price, with a current price of 2.72 HKD and a trading volume of 14.92 million HKD [1] - For the six months ending June 30, 2025, the company reported revenue of 439 million RMB, representing a year-on-year growth of 10.1% [1] - The profit attributable to the company's owners was 62.93 million RMB, showing a year-on-year decrease of 23.9% [1] Group 2 - The adjusted net profit attributable to the company's owners, excluding share-based compensation expenses, was 81 million RMB, reflecting a year-on-year decrease of 13.1% [1] - Huaxi Securities noted that the decline in net profit was primarily due to the ramp-up effects of new campuses in Guangzhou, personnel adjustments in Shenzhen, and the need to reserve teachers for the expansion of learning centers [1] - The firm believes that the short-term impacts on performance are primarily due to adjustments in the Shenzhen team and pre-emptive costs and expenses in Guangzhou, which led to results falling below expectations [1] Group 3 - The company has recruited high-quality fresh graduates as teachers, and the adjustments in the Shenzhen team are expected to lay the groundwork for a future resumption of high growth [1] - In addition to the ramp-up in Guangzhou, the company is expected to restart expansion in regions such as Dongguan and Foshan, with the potential for profit margin release after these new areas overcome their ramp-up periods [1]

Core Viewpoint - Thinker Education (01769) experienced a decline of over 5%, with a current drop of 4.9%, trading at HKD 2.72, with a transaction volume of HKD 14.92 million [1] Financial Performance - For the six months ending June 30, 2025, the company reported revenue of RMB 439 million, representing a year-on-year growth of 10.1% [1] - The profit attributable to the owners of the company was RMB 62.93 million, a year-on-year decrease of 23.9% [1] - Excluding share-based compensation expenses, the adjusted net profit attributable to the owners was RMB 81 million, down 13.1% year-on-year [1] Factors Influencing Performance - Huaxi Securities (002926) indicated that the decline in net profit was primarily due to the ramp-up effects of new campuses in Guangzhou, personnel adjustments in Shenzhen, and the need to reserve teachers for the expansion of learning centers [1] - The firm believes that the company's performance in the first half of the year was mainly affected by short-term factors, including adjustments in the Shenzhen team and the pre-emptive costs and expenses in Guangzhou, which led to results below expectations [1] - The company has recruited high-quality fresh graduates and completed adjustments in the Shenzhen team, which is expected to lay the groundwork for a future resumption of high growth [1] - In addition to the ramp-up in Guangzhou, the company is expected to restart expansion in regions such as Dongguan and Foshan, with potential profit margin recovery after these new areas overcome their initial ramp-up phases [1]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's revenue and adjusted net profit for H1 2025 were 439 million and 63 million respectively, showing a year-on-year growth of 9.63% but a decline in net profit by 23.86% due to the impact of new campus ramp-up in Guangzhou and personnel adjustments in Shenzhen [2] - The company has a total of 184 learning centers, a 26.9% increase year-on-year, with 15 new centers opened in H1 2025 [3] - The company is actively seeking new business opportunities, including educational tourism and international courses, which are expected to contribute to long-term growth [3] Financial Summary - The company's gross margin, operating profit margin (OPM), and adjusted net profit margin for H1 2025 were 34.3%, 17.6%, and 18.5% respectively, reflecting declines of 10.1, 10.9, and 4.9 percentage points year-on-year [4] - The company’s contract liabilities decreased by 24.5% year-on-year to 182 million [4] - Revenue forecasts for 2025 and 2026 have been adjusted down to 1,053.78 million and 1,317.77 million respectively, with net profit forecasts adjusted to 186.77 million and 261.18 million [5] - The projected earnings per share (EPS) for 2025 and 2026 are 0.33 and 0.46 respectively, with a new EPS forecast of 0.64 for 2027 [5] Profitability and Valuation - The company’s revenue is expected to grow at a compound annual growth rate (CAGR) of 31.85% from 2023 to 2027, with net profit growth rates of 58.03% and 69.38% for 2023 and 2024 respectively [8] - The price-to-earnings (PE) ratios for 2025, 2026, and 2027 are projected to be 7.87, 5.63, and 4.07 respectively [8]

Group 1 - The core viewpoint of the articles highlights the financial performance of Thinker Education, with a revenue increase of 10.1% to RMB 439.4 million for the six months ending June 30, 2025, compared to the same period last year [1] - The number of tutoring sessions increased from 4,564,252 to 4,944,498 sessions year-on-year, indicating growth in service demand [1] - The company is experiencing strategic development progress in Guangdong Province, particularly in Guangzhou, where course offerings and services have received positive recognition from parents and students [1] Group 2 - The net profit attributable to owners for the six months ending June 30, 2025, was RMB 62.9 million, down from RMB 82.7 million in the same period last year, reflecting short-term strategic losses in Guangzhou [1] - Excluding the strategic losses in Guangzhou, the net profit for the first half of the year showed a slight increase compared to the previous year [1] - The adjusted net profit, excluding share-based compensation expenses of approximately RMB 18.4 million, was RMB 81.3 million, representing a 13.1% decrease year-on-year [2] Group 3 - The company is focusing on diversifying its offerings, with strong demand for non-academic courses such as scientific literacy, logic training, and international literacy programs [2] - The courses emphasize the integration of learning and thinking, aiming to enhance children's critical thinking skills and support their overall development [2] - Looking ahead, the company plans to leverage its brand influence and management expertise to explore new opportunities, enhance service quality, and improve operational efficiency through technology and artificial intelligence [2]

[Announcement Summary](index=1&type=section&id=Summary) Thinkol Education Group is pleased to announce its unaudited condensed consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the company's audit committee - Thinkol Education Group is pleased to announce its unaudited condensed consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the company's audit committee[2](index=2&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section provides an overview of the Group's key financial performance for the six months ended June 30, 2025, showing a 10.1% increase in revenue but a 15.0% and 23.9% decrease in gross profit and profit for the period attributable to owners of the company, respectively [Key Financial Indicators](index=1&type=section&id=Key%20Financial%20Indicators) This section outlines the Group's key financial performance for the six months ended June 30, 2025, showing a 10.1% increase in revenue but a 15.0% and 23.9% decrease in gross profit and profit for the period attributable to owners of the company, respectively | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | 439,393 | 399,113 | 40,280 | 10.1% | | Gross Profit | 150,558 | 177,138 | (26,580) | (15.0)% | | Profit for the Period Attributable to Owners of the Company | 62,933 | 82,652 | (19,719) | (23.9)% | | Basic Earnings Per Share (RMB cents) | 11.42 | 15.21 | (3.79) | (24.9)% | | Diluted Earnings Per Share (RMB cents) | 11.18 | 14.76 | (3.58) | (24.2)% | [Non-IFRS Measures](index=1&type=section&id=Non-IFRS%20Measures) This section explains the Group's use of Non-IFRS measures, such as adjusted profit and adjusted earnings per share, to exclude non-operating items like share-based compensation expenses for a more accurate assessment of operational performance | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted Profit for the Period Attributable to Owners of the Company | 81,312 | 93,542 | (12,230) | (13.1)% | | Adjusted Basic Earnings Per Share (RMB cents) | 14.75 | 17.21 | (2.46) | (14.3)% | | Adjusted Diluted Earnings Per Share (RMB cents) | 14.45 | 16.71 | (2.26) | (13.5)% | - Adjusted profit primarily excludes share-based compensation expenses, which increased by **68.8%** to **RMB 18.4 million** in the first half of 2025 from **RMB 10.9 million** in the same period last year[4](index=4&type=chunk)[6](index=6&type=chunk) [Performance Overview](index=5&type=section&id=Performance%20Overview) The Group recorded an operating profit of RMB 77.4 million for the six months ended June 30, 2025, with revenue increasing by 10.1% to RMB 439.4 million, despite short-term negative impacts on gross and net profit from new learning centers - For the six months ended June 30, 2025, the Group recorded an operating profit of **RMB 77.4 million**[10](index=10&type=chunk) - Revenue increased by **10.1%** year-on-year to **RMB 439.4 million**, with tutoring class hours growing to **4,944,498**[10](index=10&type=chunk) - New learning centers in Guangzhou achieved ideal enrollment and exceeded operational expectations, but the provision of low-priced trial courses and increased related costs had a short-term negative impact on gross profit and net profit[11](index=11&type=chunk) - Excluding the short-term strategic losses in Guangzhou, the Group's net profit for the first half of this year slightly increased compared to the same period last year[11](index=11&type=chunk) - After accounting for share-based compensation expenses, net profit attributable to owners of the company was **RMB 62.9 million**, a year-on-year decrease of **23.9%**[11](index=11&type=chunk)[12](index=12&type=chunk) [Future Prospects and Development Strategies](index=5&type=section&id=Future%20Prospects%20and%20Development%20Strategies) The Group is expanding its revenue base through education tourism and international courses, strengthening its 'Lexue' brand in quality education, and actively seeking new business opportunities while enhancing operational efficiency with AI - Since July 2023, the Group has launched education tourism and international courses to broaden its revenue base and contribute to long-term development[13](index=13&type=chunk) - The 'Lexue' brand will further strengthen its business development in quality education, including art, sports, painting, performing arts, calligraphy, scientific literacy, traditional Chinese culture, logical thinking training, and international literacy[13](index=13&type=chunk)[14](index=14&type=chunk) - The Group will actively seek new business opportunities in various fields, rigorously implement cost control measures, maintain robust cash flow, deepen technological integration, and leverage artificial intelligence to enhance service quality and operational efficiency[14](index=14&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance, including revenue, costs, and profitability, highlighting key drivers and changes for the period [1. Revenue](index=6&type=section&id=1.%20Revenue) The Group's revenue increased by **10.1%** from **RMB 399.1 million** in the same period of 2024 to **RMB 439.4 million** in the first half of 2025, primarily due to an increase in total student enrollments, tutoring class hours, and tuition fees per class hour | Revenue Category | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Non-Academic Quality Courses and Others | 387,660 | 366,525 | 5.8% | | Tutoring Courses | 51,733 | 32,588 | 58.7% | | **Total** | **439,393** | **399,113** | **10.1%** | | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Student Enrollments | 200,788 | 184,405 | 8.9% | | Tutoring Class Hours | 4,944,498 | 4,564,252 | 8.3% | [2. Cost of Sales](index=7&type=section&id=2.%20Cost%20of%20Sales) Cost of sales increased by **30.1%** from **RMB 222.0 million** in the same period of 2024 to **RMB 288.8 million** in the first half of 2025, primarily due to increased teacher salaries and amortization of right-of-use assets, reflecting the expansion of the learning center network - Cost of sales increased by **30.1%** to **RMB 288.8 million**[17](index=17&type=chunk) - Primarily due to increased teacher salaries and amortization of right-of-use assets, mainly driven by the increase in the total number of learning centers due to network expansion and business growth[17](index=17&type=chunk) [3. Gross Profit and Gross Margin](index=7&type=section&id=3.%20Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by **15.0%** from **RMB 177.1 million** in the same period of 2024 to **RMB 150.6 million** in the first half of 2025, with gross margin declining from **44.4%** to **34.3%**, primarily due to new learning centers being in their ramp-up phase with limited revenue but significantly increased related costs - Gross profit decreased by **15.0%** to **RMB 150.6 million**[18](index=18&type=chunk) - Gross margin decreased from **44.4%** to **34.3%**[18](index=18&type=chunk) - Primarily due to new learning centers being in their ramp-up phase after opening, generating relatively limited revenue, while related costs (such as rental expenses and salaries and benefits) significantly increased due to the growth in learning centers[18](index=18&type=chunk) [4. Selling Expenses](index=7&type=section&id=4.%20Selling%20Expenses) Selling expenses slightly increased by **0.2%** to **RMB 6.5 million**, primarily related to student activities - Selling expenses slightly increased by **0.2%** to **RMB 6.5 million**, primarily related to student activities[19](index=19&type=chunk) [5. Administrative Expenses](index=7&type=section&id=5.%20Administrative%20Expenses) Administrative expenses increased by **14.6%** to **RMB 64.4 million**, mainly due to increased administrative staff expenses, consistent with the Group's business growth - Administrative expenses increased by **14.6%** to **RMB 64.4 million**, primarily due to increased administrative staff expenses, consistent with the Group's business growth[20](index=20&type=chunk) [6. Research and Development Expenses](index=7&type=section&id=6.%20Research%20and%20Development%20Expenses) Research and development expenses slightly decreased by **2.6%** to **RMB 10.5 million**, primarily for R&D personnel expenses related to developing teaching materials, course products, and market research for quality education courses - Research and development expenses slightly decreased by **2.6%** to **RMB 10.5 million**[21](index=21&type=chunk) - These expenses are primarily for R&D personnel, related to developing teaching materials and course products, as well as market research for a series of quality education courses across different themes and levels[21](index=21&type=chunk) [7. Other Income](index=8&type=section&id=7.%20Other%20Income) Other income decreased by **13.9%** to **RMB 5.6 million**, primarily due to a **RMB 2.5 million** reduction in finance income, partially offset by a **RMB 1.3 million** increase in government grants - Other income decreased by **13.9%** to **RMB 5.6 million**[22](index=22&type=chunk) - This decrease was primarily due to a **RMB 2.5 million** reduction in finance income, partially offset by a **RMB 1.3 million** increase in government grants[22](index=22&type=chunk) [8. Other Gains—Net](index=8&type=section&id=8.%20Other%20Gains%E2%80%94Net) Other gains—net decreased by **21.8%** to **RMB 2.7 million**, primarily due to a net loss of **RMB 0.9 million** from the disposal of property, plant and equipment and a **RMB 0.7 million** decrease from lease modifications - Other gains—net decreased by **21.8%** to **RMB 2.7 million**[23](index=23&type=chunk) - This decrease was primarily due to a net loss of **RMB 0.9 million** from the disposal of property, plant and equipment for the six months ended June 30, 2025 (six months ended June 30, 2024: net gain of **RMB 0.04 million** from disposal of property, plant and equipment) and a **RMB 0.7 million** decrease from lease modifications[23](index=23&type=chunk) [9. Finance Costs](index=8&type=section&id=9.%20Finance%20Costs) Finance costs decreased by **11.6%** to **RMB 4.3 million**, primarily due to a reduction in interest expenses on lease liabilities - Finance costs decreased by **11.6%** to **RMB 4.3 million**, primarily due to a reduction in interest expenses on lease liabilities[24](index=24&type=chunk) [10. Profit Before Income Tax](index=8&type=section&id=10.%20Profit%20Before%20Income%20Tax) Profit before income tax decreased by **33.8%** from **RMB 109.0 million** in the same period of 2024 to **RMB 72.2 million** in the first half of 2025 - Profit before tax decreased by **33.8%** to **RMB 72.2 million**[25](index=25&type=chunk) [11. Income Tax Expense](index=8&type=section&id=11.%20Income%20Tax%20Expense) Income tax expense decreased by **65.1%** from **RMB 26.8 million** in the same period of 2024 to **RMB 9.3 million** in the first half of 2025, primarily due to a reduction in taxable profit - Income tax expense decreased by **65.1%** to **RMB 9.3 million**, primarily due to a reduction in taxable profit[26](index=26&type=chunk) [12. Profit for the Period Attributable to Owners of the Company](index=8&type=section&id=12.%20Profit%20for%20the%20Period%20Attributable%20to%20Owners%20of%20the%20Company) Profit for the period attributable to owners of the company decreased by **23.9%** from **RMB 82.7 million** in the same period of 2024 to **RMB 62.9 million** in the first half of 2025 - Profit for the period attributable to owners of the company decreased by **23.9%** to **RMB 62.9 million**[27](index=27&type=chunk) [Treasury Management Policy](index=9&type=section&id=Treasury%20Management%20Policy) The Group's treasury management policy aims to generate income by investing surplus cash reserves in low-risk wealth management products, primarily medium-to-low risk, short-term (generally not exceeding one year) products, with investment decisions authorized by the Chairman of the Board and execution and monitoring by the Treasury Department - The Group utilizes surplus cash reserves to invest in low-risk wealth management products to generate income, typically investing in medium-to-low risk, short-term products (generally not exceeding one year)[29](index=29&type=chunk) - The Board has authorized the Chairman of the Board to make investment decisions within pre-defined limits, with the Treasury Department responsible for execution, tracking, and analysis of investment performance[29](index=29&type=chunk)[30](index=30&type=chunk) [Foreign Exchange Risk](index=10&type=section&id=Foreign%20Exchange%20Risk) The Group's majority of revenue and expenses are denominated in RMB, with cash and bank balances primarily in RMB and HKD; currently, there is no foreign currency hedging policy, and management will continue to monitor foreign exchange risk - The Group's majority of revenue and expenses are denominated in RMB, with cash and bank balances primarily in RMB and HKD[31](index=31&type=chunk) - The Group currently has no foreign currency hedging policy, and management will continue to monitor foreign exchange risk and consider prudent measures when appropriate[31](index=31&type=chunk) [Material Acquisitions and Disposals and Material Investments](index=10&type=section&id=Material%20Acquisitions%20and%20Disposals%20and%20Material%20Investments) For the six months ended June 30, 2025, the company did not undertake any material investments, acquisitions, or disposals other than those disclosed in this announcement; the Group will actively seek investment opportunities to broaden its revenue base, with no single investment exceeding **5%** of the Group's total assets - For the six months ended June 30, 2025, the company did not undertake any material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[32](index=32&type=chunk) - The Group is committed to adapting to the rapidly changing market, actively seeking investment opportunities to broaden its revenue base, with no single investment exceeding **5%** of the Group's total assets as of June 30, 2025[32](index=32&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[34](index=34&type=chunk) [Contingent Liabilities](index=10&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or pending litigations - As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or any material litigation or claims pending or threatened against any member of the Group[35](index=35&type=chunk) [Pledge of Assets](index=11&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no material pledge of assets - As of June 30, 2025, and December 31, 2024, the Group had no material pledge of assets[36](index=36&type=chunk) [Employees and Remuneration Policy](index=11&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had a total of **3,085** employees, with a remuneration policy consistent with market practices, determined by individual performance and experience, and continuously reviewed to maintain market competitiveness - As of June 30, 2025, the Group employed a total of **3,085** employees (December 31, 2024: **2,973** employees)[37](index=37&type=chunk) - The Group's remuneration policy is consistent with prevailing market practices, determined by individual performance and experience, and continuously reviewed to ensure market competitiveness[37](index=37&type=chunk) [Condensed Consolidated Interim Financial Statements](index=12&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the Group's unaudited condensed consolidated interim financial statements, including the statement of comprehensive income and statement of financial position, providing a snapshot of financial performance and position [Condensed Consolidated Interim Statement of Comprehensive Income](index=12&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This statement presents the Group's unaudited condensed consolidated comprehensive income for the six months ended June 30, 2025, showing revenue growth but a decrease in operating profit and profit for the period due to increased cost of sales and administrative expenses | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 439,393 | 399,113 | | Cost of sales | (288,835) | (221,975) | | Gross profit | 150,558 | 177,138 | | Selling expenses | (6,512) | (6,498) | | Administrative expenses | (64,420) | (56,213) | | Research and development expenses | (10,484) | (10,557) | | Other income | 5,559 | 6,456 | | Other gains—net | 2,733 | 3,493 | | Operating profit | 77,434 | 113,819 | | Finance costs | (4,255) | (4,816) | | Share of net loss of investments accounted for using the equity method | (1,019) | — | | Profit before income tax | 72,160 | 109,003 | | Income tax expense | (9,337) | (26,748) | | Profit for the period | 62,823 | 82,255 | | Profit attributable to owners of the company | 62,933 | 82,652 | | Basic earnings per share (RMB cents) | 11.42 | 15.21 | | Diluted earnings per share (RMB cents) | 11.18 | 14.76 | [Condensed Consolidated Interim Statement of Financial Position](index=13&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This statement presents the Group's unaudited condensed consolidated statement of financial position as of June 30, 2025, showing a slight decrease in total assets but an increase in total equity, a significant reduction in current liabilities, and a substantial improvement in the gearing ratio | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 738,019 | 771,384 | | Total current assets | 562,336 | 556,041 | | **Total assets** | **1,300,355** | **1,327,425** | | **Equity** | | | | Capital and reserves attributable to owners of the company | 717,571 | 635,110 | | Non-controlling interests | (377) | (267) | | **Total equity** | **717,194** | **634,843** | | **Liabilities** | | | | Total non-current liabilities | 208,282 | 212,315 | | Total current liabilities | 374,879 | 480,267 | | **Total liabilities** | **583,161** | **692,582** | | **Total equity and liabilities** | **1,300,355** | **1,327,425** | - Total equity increased to **RMB 717.2 million** from **RMB 634.8 million** as of December 31, 2024[28](index=28&type=chunk) - Cash and cash equivalents decreased by **30.9%** to **RMB 269.9 million**, primarily due to payments for property purchases and repayment of bank borrowings[28](index=28&type=chunk) - The gearing ratio decreased from **6.3%** as of December 31, 2024, to **1.7%** as of June 30, 2025[28](index=28&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes to the condensed consolidated interim financial information, explaining the basis of preparation, accounting policies, fair value estimates, and other financial details [1. General Information](index=15&type=section&id=1.%20General%20Information) This section provides basic company information, including its place of incorporation, principal business (providing private education services in China), ultimate controlling shareholder, and listing status on the Hong Kong Stock Exchange - Thinkol Education Group is incorporated in the Cayman Islands and primarily engaged in providing private education services in China[42](index=42&type=chunk) - Mr. Chen Qiyuan is the ultimate controlling shareholder of the company[43](index=43&type=chunk) [2. Basis of Preparation](index=15&type=section&id=2.%20Basis%20of%20Preparation) This section states that the condensed consolidated interim financial information is prepared in accordance with IAS 34 and should be read in conjunction with the annual consolidated financial statements; the Board confirms the Group will continue to adopt the going concern basis - The condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' issued by the International Accounting Standards Board[47](index=47&type=chunk) - The Directors believe that the Group's existing sources of funds are sufficient to meet its financial obligations falling due within the next twelve months from June 30, 2025, and therefore continue to adopt the going concern basis[48](index=48&type=chunk) [3. Accounting Policies](index=16&type=section&id=3.%20Accounting%20Policies) This section notes that the accounting policies applied in this financial information are consistent with those in the 2024 financial statements, listing newly adopted and amended standards (such as IAS 21 amendments), which are not expected to have a significant impact on the condensed consolidated interim financial information - The accounting policies applied in this financial information are consistent with those applied in the 2024 financial statements, except for the adoption of new and revised standards[49](index=49&type=chunk) - The adoption of IAS 21 (Amendment) 'Lack of Exchangeability' is not expected to have a significant impact on the condensed consolidated interim financial information[51](index=51&type=chunk) [4. Fair Value Estimation](index=17&type=section&id=4.%20Fair%20Value%20Estimation) This section provides a hierarchical analysis of the Group's financial instruments measured at fair value as of June 30, 2025, including wealth management products, listed and unlisted equity investments | Financial Instruments (Assets) | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Wealth management products | 113,762 | 96,299 | | Listed equity investments in Mainland China | 4,123 | 5,220 | | Unlisted equity investments in Mainland China | 53,811 | 54,168 | | **Total** | **171,696** | **155,687** | - Valuation techniques used for fair value measurement categorize input data into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs, either directly or indirectly), and Level 3 (unobservable inputs)[55](index=55&type=chunk) [5. Operating Segments](index=18&type=section&id=5.%20Operating%20Segments) This section states that the Group operates and manages as a single operating segment of private education services, with its primary market in Guangdong Province, China, and no single customer accounted for more than **10%** of total revenue during the period - The Group operates and manages as a single operating segment of private education services[56](index=56&type=chunk) - The Group's primary market is located in Guangdong Province, China, with the majority of its revenue and operating profit derived from Guangdong Province[56](index=56&type=chunk) - During the period, no single customer accounted for more than **10%** of the Group's total revenue[58](index=58&type=chunk) [6. Other Income](index=19&type=section&id=6.%20Other%20Income) This section details the composition of the Group's other income, including net sub-lease income, operating lease rental income, finance income, and government grants | Other Income Category | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Sub-lease—net | 78 | 166 | | Rental income from operating leases | 1,543 | 1,226 | | Finance income | 2,186 | 4,645 | | Government grants | 1,752 | 419 | | **Total** | **5,559** | **6,456** | [7. Other Gains—Net](index=19&type=section&id=7.%20Other%20Gains%E2%80%94Net) This section details the composition of the Group's other gains—net, including fair value gains on financial assets at fair value through profit or loss, lease modifications, and net loss/gain on disposal of property, plant and equipment | Other Gains Category | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss | 3,161 | 3,491 | | Lease modifications | 858 | 1,601 | | Net (loss)/gain on disposal of property, plant and equipment | (933) | 41 | | Loss on deposits | (832) | (361) | | Compensation expenses | (3) | (444) | | Fair value loss on investment properties | — | (620) | | Net foreign exchange loss | (20) | (501) | | Others | 502 | 286 | | **Total** | **2,733** | **3,493** | [8. Expenses by Nature](index=20&type=section&id=8.%20Expenses%20by%20Nature) This section provides a breakdown of the Group's expenses by nature, including employee benefit expenses, depreciation and amortization, property management expenses, teaching material costs, and advertising and exhibition expenses | Expense Category | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee benefit expenses | 273,288 | 219,650 | | Depreciation and amortization | 56,639 | 36,153 | | Property management expenses | 8,064 | 6,372 | | Teaching materials | 5,672 | 5,346 | | Advertising and exhibition expenses | 4,719 | 4,247 | | Maintenance costs | 3,069 | 2,870 | | Professional service fees | 2,414 | 2,393 | | Office expenses | 3,003 | 2,321 | | Utilities | 2,485 | 2,028 | | Other taxes | 1,808 | 1,721 | | Auditor's remuneration | 400 | 650 | | Impairment provision | 35 | 398 | | Others | 8,655 | 11,094 | | **Total** | **370,251** | **295,243** | [9. Finance Costs](index=20&type=section&id=9.%20Finance%20Costs) This section presents the composition of the Group's finance costs, primarily comprising interest expenses on borrowings and interest expenses on lease liabilities | Finance Cost Category | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expenses on borrowings | 400 | 350 | | Interest expenses on lease liabilities | 3,855 | 4,466 | | **Total** | **4,255** | **4,816** | [10. Income Tax Expense](index=20&type=section&id=10.%20Income%20Tax%20Expense) This section provides a breakdown of the Group's income tax expense, including current tax on profit for the period and deferred income tax | Income Tax Expense Category | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax—current tax on profit for the period | 16,390 | 28,961 | | Deferred income tax—decrease in deferred income tax | (7,053) | (2,213) | | **Total** | **9,337** | **26,748** | [11. Earnings Per Share](index=21&type=section&id=11.%20Earnings%20Per%20Share) This section details the calculation methods for basic and diluted earnings per share, based on profit attributable to owners of the company and the weighted average number of ordinary shares outstanding | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the company (RMB thousands) | 62,933 | 82,652 | | Weighted average number of ordinary shares outstanding (thousands) | 551,171 | 543,391 | | Basic earnings per share (RMB cents) | 11.42 | 15.21 | | Diluted earnings per share (RMB cents) | 11.18 | 14.76 | [12. Right-of-Use Assets and Leases](index=22&type=section&id=12.%20Right-of-Use%20Assets%20and%20Leases) This section presents the recognized amounts of the Group's right-of-use assets and lease liabilities in the statement of financial position, as well as depreciation expenses for right-of-use assets and lease finance costs in the statement of comprehensive income | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Right-of-use assets** | | | | Land use rights | 91,011 | 80,079 | | Properties | 279,192 | 271,752 | | **Total** | **370,203** | **351,831** | | **Lease liabilities** | | | | Current | 93,234 | 83,190 | | Non-current | 196,757 | 203,802 | | **Total** | **289,991** | **286,992** | | Expense Category | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation expense for right-of-use assets—properties | 39,996 | 26,881 | | Depreciation expense for right-of-use assets—land use rights | 1,614 | 993 | | Lease finance costs | 3,855 | 4,466 | [13. Share Capital](index=23&type=section&id=13.%20Share%20Capital) This section provides information on the company's authorized and issued ordinary share capital | Indicator | June 30, 2025 | January 1, 2024 and June 30, 2024 | | :--- | :--- | :--- | | Number of authorized ordinary shares | 1,000,000,000 | 1,000,000,000 | | Number of issued ordinary shares | 564,869,050 | 555,700,000 | | Par value of issued ordinary shares (RMB) | 3,840,311 | 3,774,897 | [14. Dividends](index=23&type=section&id=14.%20Dividends) This section states that the Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[68](index=68&type=chunk) [15. Trade and Other Payables](index=23&type=section&id=15.%20Trade%20and%20Other%20Payables) This section provides details and aging analysis of the Group's trade and other payables, primarily including trade payables, employee benefit payables, and other tax payables | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 1,632 | 3,723 | | Employee benefit payables | 23,685 | 33,773 | | Other tax payables | 12,649 | 13,944 | | Interest payables | — | 29 | | Other payables | 10,668 | 23,088 | | **Total** | **48,634** | **74,557** | - Trade payables are primarily related to the purchase of educational books and other teaching materials, with credit terms typically granted for three months[69](index=69&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the Group's adherence to corporate governance practices, including compliance with the Corporate Governance Code and standards for securities transactions by directors, as well as details on the audit committee and share transactions [1. Compliance with the Corporate Governance Code on Corporate Governance Practices](index=24&type=section&id=1.%20Compliance%20with%20the%20Corporate%20Governance%20Code%20on%20Corporate%20Governance%20Practices) The company confirms compliance with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the six months ended June 30, 2025 - The company has complied with all applicable code provisions of the Corporate Governance Code and Corporate Governance Report as set out in Appendix C1 of the Listing Rules[71](index=71&type=chunk) [2. Compliance with the Model Code for Securities Transactions by Directors](index=24&type=section&id=2.%20Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules as its code for securities transactions, and all directors and relevant employees confirmed compliance with the code during the period after specific enquiry - The company has adopted the Model Code as set out in Appendix C3 of the Listing Rules as its code for securities transactions[72](index=72&type=chunk) - Following specific enquiry with all Directors and relevant employees, they confirmed compliance with the Model Code for the six months ended June 30, 2025[72](index=72&type=chunk) [3. Audit Committee](index=24&type=section&id=3.%20Audit%20Committee) The company has established an Audit Committee in accordance with the Listing Rules, comprising three independent non-executive directors, responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal control systems, and has reviewed this interim results announcement - The Audit Committee comprises three independent non-executive directors, with primary responsibilities including reviewing and overseeing the Group's financial reporting, risk management, and internal control systems[73](index=73&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements and this interim results announcement for the six months ended June 30, 2025[73](index=73&type=chunk) [4. Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=4.%20Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) This section discloses that the trustee of the share award scheme acquired **700,000** company shares, and **1,088,000** repurchased shares remain uncancelled, which the Directors believe will enhance earnings per share and net asset value per share - The trustee of the share award scheme acquired a total of **700,000** company shares from the market for a total consideration of **HKD 2,847,000** (approximately **RMB 2,630,000**)[74](index=74&type=chunk) - As of June 30, 2025, a total of **1,088,000** shares repurchased by the company remained uncancelled; the Directors believe that such repurchases will enhance earnings per share and increase net asset value per share attributable to shareholders[74](index=74&type=chunk) [Publication of this Interim Results Announcement and Interim Report](index=25&type=section&id=Publication%20of%20this%20Interim%20Results%20Announcement%20and%20Interim%20Report) This section states that this interim results announcement has been published on the HKEX website and the company's website, and the interim report will be published and dispatched to shareholders in due course - This announcement has been published on the HKEX website www.hkexnews.hk and the company's website http://www.skledu.com[75](index=75&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites and dispatched to the company's shareholders in due course[75](index=75&type=chunk) [Definitions](index=25&type=section&id=Definitions) This section provides definitions for key terms used throughout the announcement to ensure consistent understanding, including Board, Corporate Governance Code, Company, Directors, Group, IFRS, Listing Rules, Model Code, Share Award Scheme, Shares, Shareholders, Share Option Scheme, Stock Exchange, and Trustee - This section lists key terms and their definitions used in the announcement to ensure consistent understanding, including Board, Corporate Governance Code, Company, Directors, Group, International Financial Reporting Standards, Listing Rules, Model Code, Share Award Scheme, Shares, Shareholders, Share Option Scheme, Stock Exchange, and Trustee[76](index=76&type=chunk)[78](index=78&type=chunk)

Summary of Key Points Core Viewpoint - A total of 142 stocks reached their 52-week highs as of August 12, with notable performers including Yingmei Holdings (02028), Elite Group (01775), and Fuying Global Group (01620) achieving high rates of 164.89%, 84.78%, and 40.63% respectively [1]. Stock Performance - **Top Performers**: - Yingmei Holdings (02028) closed at 0.223 with a peak of 0.249, marking a 164.89% increase [1]. - Elite Group (01775) closed at 0.350 with a peak of 0.425, reflecting an 84.78% increase [1]. - Fuying Global Group (01620) closed at 0.180, reaching its peak at 0.180, showing a 40.63% increase [1]. - **Other Notable Stocks**: - Aoya Group (02425) increased by 34.36% [1]. - Fuyiy International Holdings (01470) saw a rise of 28.30% [1]. - Huajian Medical (01931) experienced a 27.58% increase [1]. 52-Week High Rankings - The ranking of stocks that reached their 52-week highs includes: - Yingmei Holdings (02028) at 164.89% [1]. - Elite Group (01775) at 84.78% [1]. - Fuying Global Group (01620) at 40.63% [1]. 52-Week Low Rankings - The report also highlights stocks that reached their 52-week lows, with notable declines including: - Jiadeng International Group (08153) at -15.25% [4]. - Kun Group (00924) at -12.86% [4]. - Zhongjia Guoxin (00899) at -10.00% [4].

董事會會議通告 思考樂教育集團（「本公司」，連同其附屬公司及併表聯屬實體統稱「本集團」）董事會（「董事 會」）謹此宣佈，將於二零二五年八月二十日（ 星期三 ）舉行董事會會議，藉以（ 其中包括 ）考 慮及批准本集團截至二零二五年六月三十日止六個月的中期業績及其刊發，以及考慮派付 中期股息（ 如有）。 承董事會命 思考樂教育集團 主席兼執行董事 陳啟遠 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公告全部或任何部分內容所產生或因依賴該等內容而引致的任何損失 承擔任何責任。 SCHOLAR EDUCATION GROUP 思 考 樂 教 育 集 團 （ 在開曼群島註冊成立的有限公司） （股份代號：1769） 執行董事 陳啟遠先生 （ 主席） 齊明智先生 （ 行政總裁） 李愛玲女士 冷新蘭女士 獨立非執行董事 楊學枝先生 嚴加敏女士 張文俊教授 香港，二零二五年八月八日 於本公告日期，董事會包括： ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 思考樂教育集團 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01769 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | USD | | 0.001 USD | | 1,000,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 1,000,000,000 | USD | | 0.001 USD | | 1,000,000 | 本月底法定/註冊股本總額： USD 1,000,000 FF301 第 1 頁 共 10 頁 v 1 ...

Investment Ratings - Upgrade New Oriental Education (EDU) to Buy with target prices of US$77/HK$60, representing a potential upside of 54% [1][9] - Downgrade TAL Education Group (TAL) to Neutral with a target price of US$11.54, indicating a downside of 14% [1][18] Core Insights - The report highlights a pair trade strategy to capitalize on the diverging operational trajectories between EDU and TAL, with EDU expected to benefit from operating leverage in K12 education while TAL faces ongoing hardware losses [1][4] - EDU's revenue mix is shifting towards domestic segments, with K9 and Senior High expected to grow from 45% to 55% of revenue by FY26E, leading to significant margin expansion [2][12] - TAL's core Learning Services business provides a solid downside floor, but persistent losses in the Content Solutions segment limit near-term upside potential [3][18] Summary by Sections New Oriental Education (EDU) - The upgrade to Buy is based on a compelling domestic mix-shift story, with structural margin expansion expected as domestic segments grow significantly [2][54] - The report projects that each 1% revenue shift from overseas to domestic will add 8-10 basis points to consolidated margins, creating a multi-year earnings tailwind [2][13] - EDU's current valuation at ~17x NTM P/E does not reflect its intrinsic value, with a sum-of-parts analysis suggesting substantial upside potential [2][55] - Cost discipline measures, including rent cuts and controlled headcount growth, are expected to amplify operating leverage [2][14] - The anticipated dividend plan is viewed as a key near-term catalyst for re-rating [2][15] TAL Education Group (TAL) - The downgrade to Neutral reflects a balanced risk/reward profile, with limited near-term upside due to ongoing operational challenges [3][18] - TAL's core Learning Services business, combined with its net cash position, suggests a firm value floor at US$10.89 per share [3][31] - The Content Solutions segment is projected to continue incurring losses through FY27E, which significantly impacts overall profitability [3][18] - A proprietary lease-based analysis indicates that TAL's center maturity distribution is evolving, which is expected to drive margin expansion over time [20][24] - The report emphasizes the uncertainty surrounding the path to profitability for the Content Solutions segment, with execution risks persisting through FY28E [3][33]

Summary of the Conference Call for Thinker Education Company Overview - Thinker Education anticipates a revenue growth rate of 20%-30% for 2025, despite challenges from the economic environment and parents' willingness to pay, maintaining an optimistic outlook on performance [2][4][5] - The company is focusing on expanding its presence in the Guangzhou market, increasing the number of campuses from 9 in 2024 to over 20 in 2025, with a primary focus on winter and spring courses [2][4][6] Key Points and Arguments - The international business of Thinker Education is currently small, contributing only a few million yuan to overall revenue, and is not expected to significantly impact the company [7] - The company is exploring online digital avatars and AI-related businesses, but these initiatives are still in the exploratory phase and will not involve large-scale investments at this time [8] - The competitive pressure in the education and training market is normalized, with the economic environment affecting parents' payment willingness; however, Thinker Education expects to maintain a growth rate of over 20% [9][10] - The summer class renewal rate has improved compared to previous years, indicating healthy regular business operations [11] Additional Important Insights - The company plans to recruit approximately 1,000 outstanding graduates from top universities, with a smooth recruitment process and plans for employee iteration [4] - The company has added about 100-200 teachers in high school due to the new dual holiday system, expecting significant growth in the fall [3][15] - The Guangzhou campus is actively processing school qualification approvals, and the overall progress is in line with expectations [12] - Future expansion into new cities, including K12 offline education, is not ruled out for next year, as the company aims for steady development [14] - The company has seen a stable operating situation without significant changes in profit guidance, despite market concerns due to fewer roadshows [13]