Group 1: Financial Performance - In 2024, the company achieved operating revenue of 795.14 million yuan, a year-on-year increase of 3.10% [3] - The net profit attributable to shareholders was 145.06 million yuan, up 4.73% year-on-year [3] - For Q1 2025, the company reported operating revenue of 183.35 million yuan, a decrease of 2.27% year-on-year, and a net profit of 37.97 million yuan, down 6.80% [3] Group 2: Business Drivers - The growth in 2024 was attributed to three main factors: stable operations in the education services sector, improved quality in the ink business, and investment income from the associate company Zhonghao Xinying amounting to 5.93 million yuan [4] - The ink business saw enhanced profitability due to optimized sales structure and effective cost control measures [4] Group 3: Product Development - In 2024, the newly established subsidiary Suzhou Kede Huiying launched an AI intelligent learning software, Kede AI Learning, which currently has nearly 30,000 users [5][6] - The software integrates various large models to provide training for over 20 popular professional certifications [5] Group 4: Market Challenges and Strategies - The decline in Q1 2025 revenue was primarily due to seasonal fluctuations in the ink business and a significant investment loss from Zhonghao Xinying [6] - To address increasing competition in vocational education, the company plans to enhance its product line, leverage technology, and improve brand reputation to attract quality students [7] Group 5: Future Outlook - Zhonghao Xinying reported operating revenue of 485.20 million yuan in 2023 and 597.96 million yuan in 2024, indicating strong growth potential [6] - The company aims to develop eco-friendly antibacterial inks to meet market demand and enhance its competitive edge [7]

Investment Rating - The report gives a "Cautious Recommendation" rating for the company, marking its first coverage [4][6]. Core Viewpoints - The company is undergoing a strategic transformation from being a leader in ink production to developing dual main businesses in ink and education, with promising prospects in AI+education [1][4]. - The "Double Reduction" policy has accelerated the clearing of supply in the education sector, benefiting leading companies in AI+education [1][2]. - The company has a solid financial foundation with low debt ratios and good cash flow, indicating strong growth potential [3][4]. Company Overview - The company, originally focused on ink production, has expanded into the education sector through acquisitions, including leading educational institutions, to capture the market for high school and vocational education [1][12]. - The company has a production capacity of 20,000 tons of ink, with an 80% utilization rate, and is recognized for its green and environmentally friendly ink products [2][44]. Industry Analysis - The "Double Reduction" policy has led to a significant reduction in the number of offline training institutions, with a decrease of 92.14% in offline institutions and 87.07% in online institutions by February 2022 [1][24]. - The relaxation of the two-child policy is expected to create a "golden decade" for middle and high school entrance exams, with a surge in enrollment numbers anticipated [1][28]. - The education sector is witnessing a rapid increase in the number of students taking entrance exams, with high school enrollment expected to peak in 2030 [1][30]. Financial Analysis - The company has a low debt ratio of 23.43% as of March 2025, with a strong cash flow reflected in its operating cash flow figures [3][4]. - Revenue and net profit are projected to grow steadily from 2025 to 2027, with expected revenue growth rates of 8.0%, 6.0%, and 5.0% respectively [4][5]. Investment Recommendations - The report highlights the company's dual business model and strategic investments in AI+education as key factors for future growth, supporting the cautious recommendation rating [4][6].

Investment Rating - The report gives a "Cautious Recommendation" rating for the company, marking its first coverage [4][6]. Core Viewpoints - The company is undergoing a strategic transformation from being a leader in ink production to developing dual main businesses in ink and education, with promising prospects in AI+education [1][4]. - The "Double Reduction" policy has accelerated the clearing of supply in the education sector, benefiting leading companies in AI+education [1][2]. - The company has a solid financial foundation with low debt ratios and good cash flow, indicating strong growth potential [3][4]. Company Overview - The company, originally focused on ink production, has expanded into the education sector through acquisitions, including Dragon Gate Education, and is now positioned in both ink and educational services [1][12]. - The company has a production capacity of 20,000 tons of ink, with an 80% utilization rate, and is recognized for its green and environmentally friendly ink products [2][44]. - The education segment has faced challenges due to policy changes but is now focusing on high school and vocational education, with a strategic emphasis on AI integration [1][19]. Industry Analysis - The "Double Reduction" policy has led to a significant reduction in the number of training institutions, with offline institutions decreasing by 92.14% and online institutions by 87.07% [1][24]. - The relaxation of the two-child policy is expected to create a demographic dividend, leading to a peak in middle and high school enrollments in the coming years [28][30]. - The demand for education services, particularly in high school and vocational training, is anticipated to grow significantly due to increasing enrollment numbers and a rising number of repeat students [30][37]. Financial Analysis - The company has a low debt ratio of 23.43% as of March 2025, with a strong cash flow position reflected in its operating cash flow figures [3][4]. - Revenue projections indicate steady growth, with expected increases of 8.0%, 6.0%, and 5.0% from 2025 to 2027 [4][5]. - The company’s earnings per share (EPS) are projected to rise from 0.48 yuan in 2025 to 0.54 yuan in 2027, reflecting a positive outlook on profitability [4][5].

Core Insights - The education industry in China is undergoing a significant transformation driven by policy adjustments and technological advancements, particularly in AI [1] - Companies are adopting diverse strategies to adapt to market changes, including building comprehensive education ecosystems and leveraging AI technology for breakthroughs [1] Performance Overview: Mixed Results and Growth Strategies - New Oriental reported a net revenue of $4.31 billion for the fiscal year 2024, a 43.9% increase year-on-year, with core education business revenue growing by 21.2% [2][3] - TAL Education achieved a net income of $2.25 billion, a substantial 51.0% increase year-on-year, with a net profit of $102 million, marking a turnaround from a loss [4][5] - Gaotu's revenue reached 4.54 billion yuan, a 53.8% increase, but the net loss expanded to 430 million yuan due to increased operational costs [6] - NetEase Youdao reported a net income of 5.6 billion yuan, a 4.4% increase, and achieved profitability for the first time with a net profit of 83 million yuan [6] - Xueda Education's revenue was 2.786 billion yuan, a 25.9% increase, with a net profit of 180 million yuan [6] - Excellent Education's revenue surged by 125.2% to 1.102 billion yuan, with a net profit of 192 million yuan [6] - Anlong Education's revenue was 1.230 billion yuan, a 27.32% increase, but it reported a net loss of 48.58 million yuan [6] - Thinking乐 Education achieved revenue of 852 million yuan, a 49.4% increase, with a net profit of 146 million yuan [6] - Kede Education's revenue was 795 million yuan, a 3.1% increase, with a net profit of 145 million yuan [6] - Dou Shen Education's revenue declined by 23.77% to 757 million yuan, but net profit increased significantly to 137 million yuan [6] Diverse Ecosystem Builders: New Oriental, TAL Education, Xueda Education - New Oriental focuses on core education business and has increased investment in quality education, particularly in non-subject tutoring and intelligent learning systems [10] - TAL Education is building a "hardware + content" ecosystem, enhancing user engagement and market competitiveness [10] - Xueda Education is expanding its personalized education services and integrating vocational education and cultural reading into its offerings [10] AI Technology as a Core Differentiator: NetEase Youdao, Excellent Education, Dou Shen Education - NetEase Youdao is leveraging AI to enhance content quality and user experience, achieving profitability for the first time [11] - Excellent Education has increased investment in AI technology, developing applications to improve teaching efficiency and student engagement [11] - Dou Shen Education launched its self-developed AI model and reduced operational costs, leading to a significant increase in net profit despite a decline in revenue [11] Differentiated Strategies to Capture Market Share: Gaotu, Thinking乐, Anlong Education, Kede Education - Gaotu's investment in R&D and technology is yielding returns, with non-subject tutoring services seeing over 150% growth [12] - Thinking乐 Education is successfully re-entering the Guangzhou market with a focus on small class sizes and diverse course offerings [12] - Anlong Education is implementing a five-year strategic plan to enhance operational efficiency despite reporting a net loss [13] - Kede Education maintains stable revenue through diversified operations, focusing on vocational education and training [13] Conclusion - The financial reports of education companies in 2024 highlight two main transformation trends: "policy-driven market shifts" and "technology-enabled efficiency revolutions" [14] - Companies like New Oriental and TAL Education are leveraging brand and capital advantages, while others like Xueda and Excellent Education are establishing barriers in niche markets [14]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady growth across its various business segments, with a notable acceleration in the mass production of AI chips by Zhonghao Xinying [1] - For the year 2024, the company achieved a revenue of 795 million yuan, representing a year-on-year growth of 3.1%, and a net profit attributable to shareholders of 145 million yuan, up 4.73% year-on-year [4][5] - In Q1 2025, the company reported a revenue of 183 million yuan, a decrease of 2.27% year-on-year, and a net profit of 38 million yuan, down 6.8% year-on-year, primarily due to an investment loss in Zhonghao Xinying [4][5] - The company has adjusted its profit forecasts for 2025-2026 and added a new forecast for 2027, expecting net profits of 166 million, 184 million, and 204 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.50, 0.56, and 0.62 yuan [4][5] Financial Performance Summary - The company’s revenue for 2024 is projected to be 795 million yuan, with a year-on-year growth of 3.1% [7] - The net profit for 2024 is expected to be 145 million yuan, reflecting a year-on-year increase of 4.7% [7] - The gross margin for 2024 is estimated at 33.4%, with a net margin of 18.2% [7] - The company’s earnings per share (EPS) for 2025 is projected at 0.50 yuan, with a price-to-earnings (P/E) ratio of 30.3 [7] Business Segment Analysis - The education segment generated a revenue of 368 million yuan in 2024, growing by 2.94% year-on-year, with a gross margin of 46.28% [5] - The ink business maintained a high gross margin, with a revenue of 427 million yuan in 2024, up 3.24% year-on-year, and a gross margin of 22.27% [5] - Zhonghao Xinying achieved a revenue of approximately 597.96 million yuan in 2024, with a net profit of 85.91 million yuan, significantly outperforming its peers [6]

Core Insights - The company reported a revenue of 795 million yuan for 2024, representing a year-on-year increase of 3.10%, and a net profit attributable to shareholders of 145 million yuan, up 4.73% year-on-year [1] - In Q1 2025, the company experienced a revenue decline of 2.27% to 183 million yuan and a net profit decrease of 6.80% to 38 million yuan [1] Financial Performance - For 2024, the education business saw a slight revenue increase of 3.45%, with vocational schools and full-time schools generating 365 million yuan [3] - The gross margin for the education segment decreased by 1.97 percentage points to 46.28%, while the gross margin for the ink business increased by 1.94 percentage points to 22.27% [3] - The overall gross margin for the company increased by 0.11 percentage points to 33.37% in 2024 [3] - The company reduced its expense ratios in 2024, with sales expense ratio down by 0.87 percentage points to 3.13%, management expense ratio down by 0.08 percentage points to 6.16%, R&D expense ratio down by 0.08 percentage points to 2.18%, and financial expense ratio down by 0.05 percentage points to -0.23% [3] Investment and New Initiatives - The company reported an investment income of 5.93 million yuan from its associate company, Zhonghao Xinying, which achieved a revenue of 598 million yuan, up 23% year-on-year, and a net profit of 85.91 million yuan, up 6% [3][4] - The company has diluted its equity stake in Zhonghao Xinying to 5.99% [4] - The launch of "Kede AI Learning" aims to integrate AI technology into vocational education, offering over 20 popular professional certifications and life skills courses [4] - Currently, "Kede AI Learning" has nearly 30,000 users [5] Q1 2025 Performance and Outlook - In Q1 2025, the company experienced a slight decline in both revenue and net profit, attributed mainly to a decrease in ink product prices due to lower raw material costs and an investment loss of 4.57 million yuan from Zhonghao Xinying, which was higher than in Q1 2024 [5] - The profit forecasts for 2025 to 2027 have been adjusted to 161 million yuan, 185 million yuan, and 210 million yuan respectively, with current stock price valuations at 31x, 27x, and 24x [5]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's education business experienced slight growth in 2024, with total revenue reaching 795 million yuan, a year-on-year increase of 3.1%, and net profit attributable to the parent company at 145 million yuan, up 4.73% [1][2] - In Q1 2025, the company reported a revenue of 183 million yuan, a decrease of 2.27%, and a net profit of 38 million yuan, down 6.80% [2] - The company launched "Kede AI Learning," integrating AI technology into vocational education, which has attracted nearly 30,000 users [3] - The company adjusted its net profit forecasts for 2025 to 161 million yuan, 185 million yuan for 2026, and 210 million yuan for 2027, maintaining a valuation of 31x, 27x, and 24x respectively [3] Financial Performance Summary - In 2024, the education business generated revenue of 365 million yuan, a year-on-year increase of 3.45% [3] - The overall gross margin for the company increased by 0.11 percentage points to 33.37%, while the education business gross margin decreased by 1.97 percentage points to 46.28% [3] - The company’s operating expenses decreased, with sales expense ratio down by 0.87 percentage points to 3.13% and management expense ratio down by 0.08 percentage points to 6.16% [3] - The company’s total revenue projections for 2025, 2026, and 2027 are 828 million yuan, 913 million yuan, and 999 million yuan respectively, with growth rates of 4.1%, 10.3%, and 9.5% [4]

Group 1 - Beijing's higher education admission process for undergraduate programs will allow students to fill out their applications for the first time from June 27 to July 1, 2025, following the release of their exam scores [1] - The Tongzhou District of Beijing has announced its 2025 compulsory education enrollment policy, which will primarily use a registration-based admission system, considering factors such as housing and residency [2] - The "Beijing University Student Entrepreneurship Park" has been officially launched, focusing on key industries such as high-end equipment and life health, to encourage student entrepreneurship [3] Group 2 - Peking University has established a new School of Science and Intelligence at its Shenzhen Graduate School, aimed at integrating artificial intelligence with basic sciences to cultivate interdisciplinary talents [4] Group 3 - Kede Education reported a 2.27% year-on-year decline in revenue for Q1 2025, totaling 183 million yuan, and a net profit of 37.97 million yuan, reflecting a 6.8% decrease compared to the previous year [5]

苏州科德教育科技股份有限公司 2024 年度内部控制评价报告 苏州科德教育科技股份有限公司全体股东： 根据《企业内部控制基本规范》及其配套指引的规定和其他内部控制监管要 求（以下简称"企业内部控制规范体系"），结合苏州科德教育科技股份有限公 司（以下简称"公司"）内部控制制度和评价办法，在内部控制日常监督和专项 监督的基础上，我们对公司截至2024年12月31日（内部控制评价报告基准日）的 内部控制有效性进行了评价。 一、重要声明 按照企业内部控制规范体系的规定，建立健全和有效实施内部控制、评价其 有效性并如实披露内部控制评价报告是公司董事会的责任，监事会对董事会建立 和实施内部控制进行监督，经理层负责组织领导企业内部控制的日常运行。公司 董事会、监事会及董事、监事、高级管理人员保证本报告内容不存在任何虚假记 载、误导性陈述或重大遗漏，并对报告内容的真实性、准确性和完整性承担个别 及连带法律责任。 公司内部控制的目标是合理保证经营管理合法合规、资产安全、财务报告及 相关信息真实完整，提高经营效率和效果，促进实现发展战略。由于内部控制存 在的固有局限性，故仅能为实现上述目标提供合理保证。此外，由于情况的变化 可 ...