Group 1 - The core point of the article is that New Higher Education Group has entered into a cooperation agreement with Zhongyuan Trust, involving a total payment of up to RMB 430 million [2] - The agreement aims to provide New Higher Education Group with comprehensive and convenient differentiated trust services and financial advisory services [2] - The board believes that this cooperation will optimize the efficiency of capital allocation and provide long-term financial support to improve the quality of education at its affiliated institutions, contributing to the group's high-quality development [2]

Group 1 - The core point of the article is that Yunai Group has entered into a cooperation agreement with Zhongyuan Trust, involving a payment of up to RMB 430 million for financial services [1] - Zhongyuan Trust will provide various financial services to Yunai Group, including asset management, financial advisory, and risk management consulting [1] - Yunai Group is a limited company established under Chinese law in September 2005, primarily engaged in private higher education business [1]

Core Viewpoint - New Higher Education Group (02001) has entered into a cooperation agreement with Zhongyuan Trust, involving a payment of up to RMB 430 million, aimed at enhancing financial services and support for the group's educational institutions [1] Group 1: Cooperation Agreement Details - The agreement stipulates that Yunai Group will pay a total of no more than RMB 430 million to Zhongyuan Trust [1] - Zhongyuan Trust will provide financial services, including asset management, financial advisory, and risk management consulting [1] - The terms of the cooperation agreement were established through fair negotiations based on recent market conditions [1] Group 2: Expected Benefits - The board believes that the cooperation will enable the group to access comprehensive and convenient differentiated trust services and financial advisory services [1] - This partnership is expected to optimize capital allocation efficiency and provide long-term financial support to improve the quality of education at the group's institutions [1] - The collaboration is seen as beneficial for the group's high-quality development [1]

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之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China New Higher Education Group Limited 中國新高教集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：2001） 上市規則的涵義 由於有關合作協議項下擬進行交易的適用百分比率超過5%但低於25%，因此，根 據上市規則第14章，有關交易構成本公司之須予披露交易，並須遵守申報及公告 規定，惟獲豁免遵守股東批准規定。 – 1 – 與中原信託訂立合作協議 與中原信託的合作協議 須予披露交易 與中原信託訂立合作協議 與中原信託訂立合作協議 與中原信託的合作協議 雲愛集團已與中原信託訂立合作協議，據此，雲愛集團將向中原信託支付總額不 超過人民幣430,000,000元的資金。中原信託將負責向雲愛集團提供金融服務，包 括但不限於提供資產管理、財務顧問服務及風險管理顧問服務。 合作協議的主要條款載列如下。 (2) 中原信託 – 2 – 日期： 2025年12月24日 訂 ...

Group 1: Higher Education Sector - The higher education sector is expected to see a reversal of difficulties due to a combination of bottoming fundamentals and policy advancements, with a focus on improving educational quality and encouraging the expansion of high-quality private colleges [5][6] - The reintroduction of profit-oriented classification management in Hunan Province in 2025 may serve as a pilot for nationwide implementation, providing a stable policy environment for private colleges to expand and meet the growing demand for higher education [5][6] - Key indicators of educational quality, such as student-to-teacher ratios and per-student funding, have met standards after five years of increased investment, suggesting that the investment cycle is peaking and operational efficiency in higher education companies is likely to recover [5][6] - Companies to watch in this sector include Yuhua Education, Zhongjiao Holdings, New Higher Education, China Kepei, Neusoft Ruixin, Xijiao International Holdings, and Zhonghui Group [5][6] Group 2: Vocational Education Sector - The demand for vocational training is surging, driven by an increasing number of university graduates and high school students entering the labor market, leading to a projected market size of 80 billion yuan in 2025 with a penetration rate of only 5% [6][7] - The youth unemployment rate, particularly among those aged 16 to 24, is higher than the urban average, indicating a growing need for vocational skills training [6][7] - Companies to focus on in the vocational education sector include China Oriental Education and Fenbi [6][7] Group 3: Education Industry Trends - The education industry has undergone significant changes due to the "double reduction" policy, resulting in a 96% reduction in capacity in the academic training sector, with a limited number of operational licenses being redistributed [7] - The shift towards competency-based training is gaining momentum, with institutions leveraging their operational qualifications to expand their market share through non-academic training services [7] - The industry is moving towards a "franchise" model, which is expected to enhance revenue and profit growth for compliant institutions [7] Group 4: Investment Recommendations - The report recommends focusing on Hong Kong-listed vocational education companies, particularly China Oriental Education, which is adapting its operational strategy to cater to the needs of high school graduates [9] - In the higher education sector, the potential reintroduction of profit-oriented options is expected to enhance the revenue-sharing certainty for private colleges, with companies like Yuhua Education, Zhongjiao Holdings, and China Kepei being highlighted for their growth potential [9] - The report also suggests monitoring Chinese education companies listed in the US, such as New Oriental, TAL Education, and others, which are showing strong enrollment data [9]

Investment Rating - The report maintains a "Buy" rating for the companies in the higher education sector, specifically for New Higher Education Group and Xijiao International Holdings [8][11]. Core Insights - The profitability of higher education companies is expected to rebound as the peak of cost increases has passed, with improvements in operational efficiency anticipated due to reduced capital expenditures [4][11]. - New Higher Education Group reported a revenue of 2.6 billion yuan for the fiscal year 2025, a year-on-year increase of 7.8%, with adjusted net profit reaching 812 million yuan, up 5.2% [6][8]. - The student structure is continuously optimized, with an increase in the proportion of undergraduate students, leading to higher average tuition fees [6][7]. - The report highlights the importance of maintaining high-quality education and the strategic focus on enhancing educational facilities to improve student learning environments [3][4]. Summary by Sections 1. Higher Education Sector - The education index increased by 1% during the week, outperforming the Hang Seng Index by 1.8 percentage points [5]. - New Higher Education Group's student enrollment decreased slightly by 0.6% to 139,000, but the proportion of undergraduate students increased, contributing to an 8.1% rise in average tuition fees to 16,700 yuan per year [6][7]. - The company’s operational costs rose by 9.2% to 1.68 billion yuan, with significant increases in labor costs, which grew by 14.7% [3][7]. 2. Cost Management and Profitability - The peak of cost increases is believed to have passed, with capital expenditures decreasing from 920 million yuan in fiscal year 2024 to 690 million yuan in fiscal year 2025 [4][8]. - The report anticipates a recovery in gross profit margins starting from fiscal year 2026, with projected profits for fiscal years 2026 and 2027 adjusted to 880 million yuan and 1 billion yuan, respectively [8][11]. - Xijiao International Holdings reported a revenue of 3.96 billion yuan for fiscal year 2025, a 6.1% increase, while net profit decreased by 36.9% [9][10]. 3. Investment Recommendations - The report suggests focusing on Hong Kong-listed higher education companies, as profitability is expected to improve with reduced capital expenditures and a more favorable revenue distribution model [13]. - Companies such as New Higher Education Group, Xijiao International Holdings, and others are highlighted as potential investment opportunities due to their strategic adjustments and market positioning [13].

Investment Rating - The report maintains a "Buy" rating for the overseas education sector, particularly highlighting the potential rebound in profitability for higher education companies as they enhance their operational efficiency and educational quality [4][16]. Core Insights - The profitability of higher education companies is expected to improve as they transition from a phase of high costs to a more stable operational environment, driven by an increase in the quality of education and student enrollment structures [4][16]. - The report emphasizes the importance of maintaining high-quality education and optimizing student demographics, which is reflected in the rising average tuition fees and accommodation costs [2][3][4]. Summary by Sections Overseas Education - The education index increased by 1% during the week, underperforming the Hang Seng Index by 1.8 percentage points, with a year-to-date increase of 8.2% [6]. - New Higher Education Group reported a revenue of 2.6 billion yuan for FY25, a 7.8% increase year-on-year, with adjusted net profit rising by 5.2% to 812 million yuan [2][7]. - The student enrollment decreased slightly by 0.6%, but the proportion of undergraduate students increased, leading to an 8.1% rise in average tuition fees to 16,700 yuan per year [2][7]. - The company’s operational costs grew by 9.2% to 1.68 billion yuan, with labor costs rising significantly, indicating a focus on maintaining educational quality [3][8]. - The report predicts that the peak of cost increases has passed, and profitability is set to rebound, with expected net profits of 880 million yuan and 1 billion yuan for FY26 and FY27, respectively [4][9]. Key Companies - Xijiao International Holdings reported a revenue of 3.96 billion yuan for FY25, a 6.1% increase, but net profit fell by 36.9% due to previous high costs [11][12]. - The company has optimized its school management by reducing the number of institutions, which is expected to enhance operational efficiency and profitability [12][13]. - The report suggests focusing on several key players in the sector, including New Oriental, TAL Education, and Huazhong Education, as they are expected to benefit from the improving market conditions [16]. Investment Recommendations - The report recommends attention to Hong Kong-listed higher education companies, as the profitability outlook is improving with reduced capital expenditures and stabilized operational costs [16]. - It also highlights the potential for growth in vocational education companies, particularly those adapting to market demands and enhancing their service offerings [16].

Core Viewpoint - The company reported its fiscal year 2025 performance, with revenue and adjusted net profit meeting market expectations, indicating stable growth in the education sector [1][2]. Revenue Growth - The company's main business revenue increased by 7.8% year-on-year to 2.6 billion yuan, aligning with market expectations [1]. - Tuition revenue reached 2.32 billion yuan, up 8.1% year-on-year, while accommodation revenue was 278 million yuan, growing by 5.2% [1]. - The number of enrolled students for the 2025/2026 academic year is approximately 133,000, with an increasing proportion of undergraduate students [1]. - The placement rate for the 2024 graduating class was 98.03%, and for the 2025 class, it was 98.22%, reflecting a year-on-year increase of 3.13 percentage points [1]. Profitability - The company's gross margin for fiscal year 2025 was 35.5%, a decrease of 0.8 percentage points, attributed to increased depreciation and personnel costs [2]. - The adjusted net profit margin was 31.2%, also down by 0.8 percentage points due to the decline in gross margin and rising management expenses [2]. - As of August 31, 2025, the company's interest-bearing debt ratio decreased from 31.8% to 24.3%, and the leverage ratio fell from 85.2% to 52.8% [2]. - Capital expenditures totaled 688 million yuan, a decline of 25.2%, primarily for school upgrades and construction [2]. Profit Forecast and Valuation - The revenue forecast for fiscal year 2026 has been revised down by 5.0% to 2.73 billion yuan, and the adjusted net profit forecast has been reduced by 7.5% to 813 million yuan [2]. - The revenue forecast for fiscal year 2027 is set at 2.85 billion yuan, with an adjusted net profit forecast of 825 million yuan [2]. - The company maintains an outperform rating with a target price of 1.1 HKD, corresponding to 2.4 times the estimated adjusted P/E for 2026, indicating a potential upside of 9% [2].

Core Viewpoint - New Higher Education Group reported a revenue of 2.6 billion yuan for the fiscal year 2025, representing a year-on-year growth of 7.8%, with adjusted net profit reaching 812 million yuan, up 5.2%, aligning with expectations [1] Group 1: Financial Performance - The company maintained a student enrollment of 139,000, a slight decrease of 0.6% from fiscal year 2024, while the proportion of undergraduate new students increased by 4 percentage points year-on-year [1] - Average tuition fees rose by 8.1% to 16,700 yuan per academic year, contributing to revenue growth [1] - Total revenue costs for fiscal year 2025 were 1.68 billion yuan, up 9.2%, with labor costs increasing by 14.7% to 1.08 billion yuan [2] Group 2: Cost Management and Investment - The company has increased its investment in educational infrastructure, with depreciation and amortization costs rising by 10.8% to 260 million yuan [2] - Capital expenditures peaked at 920 million yuan in fiscal year 2024 but decreased to 690 million yuan in fiscal year 2025, indicating a potential end to the rapid growth phase of costs [3] - The student-to-teacher ratio for fiscal year 2025 was approximately 19.1:1, close to the regulatory standard [3] Group 3: Future Outlook - The company anticipates a rebound in profitability as the period of rapid cost growth has ended, with gross margin expected to expand starting from fiscal year 2026 [3] - Profit forecasts for fiscal years 2026 and 2027 have been raised to 880 million yuan and 1 billion yuan, respectively, with an additional forecast of 1.14 billion yuan for fiscal year 2028 [3] - The target price has been adjusted to 3.38 HKD from the previous 2.99 HKD, maintaining a buy rating [3]

Core Viewpoint - New Higher Education Group (02001) reported a revenue of 2.6 billion yuan for the fiscal year 25, representing a year-on-year growth of 7.8%, with adjusted net profit at 812 million yuan, up 5.2%, aligning with expectations [1] Group 1: Financial Performance - The company adjusted profit forecasts for fiscal years 26 and 27 to 880 million yuan and 1 billion yuan respectively, with a new forecast for fiscal year 28 at 1.14 billion yuan [1] - The target price was raised to 3.38 HKD from the previous 2.99 HKD, maintaining a buy rating [1] Group 2: Student Structure and Revenue - The total number of enrolled students in fiscal year 25 was 139,000, a slight decrease of 0.6% from fiscal year 24, but the structure of students improved with a 4 percentage point increase in the proportion of new undergraduate students [2] - The average tuition fee increased by 8.1% to 16,700 yuan per academic year, while accommodation fees rose by 5.2% to 1,998 yuan per academic year, contributing to the revenue growth [2] Group 3: Cost and Investment - The company's cost of revenue for fiscal year 25 was 1.68 billion yuan, a year-on-year increase of 9.2%, with labor costs at 1.08 billion yuan, up 14.7% [3] - The company is investing significantly in educational infrastructure, with depreciation and amortization costs rising by 10.8% to 260 million yuan [3] Group 4: Future Outlook - Capital expenditures peaked at 920 million yuan in fiscal year 24 but decreased to 690 million yuan in fiscal year 25, with expectations of further declines as schools pass teaching evaluations [4] - The company anticipates an improvement in operational efficiency and a potential rebound in profit margins starting from fiscal year 26, as the period of rapid cost growth is expected to end [4]