Core Viewpoint - Ambow Education Holding Ltd. has launched the HybriU® 3D Mobile Station, a self-contained cart designed to facilitate immersive 3D broadcasting and collaboration, making it accessible for various industries including education, corporate, and entertainment [1][3][4]. Group 1: Product Overview - The HybriU 3D Mobile Station utilizes proprietary end-to-end 3D technology to capture, encode, transform, decode, and display 3D signals in real time, integrating the entire video production workflow into a single portable unit [2][5]. - This innovative product allows for immersive 3D experiences to be delivered instantly to audiences through various platforms such as 3D LED walls, IMAX theaters, and VR headsets [3][4]. Group 2: Market Impact - The launch of the HybriU 3D Mobile Station aims to democratize immersive 3D broadcasting, enabling educators, enterprises, and event organizers to create lifelike experiences without the need for specialized infrastructure [4][5]. - The product is designed to serve a wide range of industries, facilitating hybrid classrooms, live event broadcasting, and immersive corporate training sessions [4][5]. Group 3: Strategic Positioning - The introduction of the HybriU 3D Mobile Station strengthens Ambow's portfolio and reflects the company's strategy to expand beyond the education sector into corporate and entertainment markets [5][6]. - By bridging physical and digital experiences, Ambow positions itself at the forefront of immersive communication and collaboration technologies [5][6].

Core Viewpoint - Ambow Education Holding Ltd. has launched HybriU Events, an AI-powered platform designed to enhance live events by bridging physical venues with global audiences through interactive and accessible solutions [1][3]. Group 1: Product Features - HybriU Events utilizes ultra-realistic 3D streaming and real-time interactive features to recreate the atmosphere of live events, making them more engaging for audiences [2]. - The platform includes dynamic multimedia elements and direct broadcast capabilities to social media, which expands audience reach and interaction [2]. - Personalized language channels allow participants to engage in their preferred language, promoting inclusivity for global audiences [2]. Group 2: Strategic Importance - The launch of HybriU Events is a significant step in Ambow's strategy to expand its portfolio of AI-driven phygital solutions and to create new revenue streams in the global live events and digital experience markets [3]. - The platform is scalable and available to organizations, institutions, and creators worldwide, catering to events of any size [3]. Group 3: Company Overview - Ambow Education Holding Ltd. is an AI-driven technology company focused on providing phygital solutions for education, corporate conferencing, and live events [4]. - The company is headquartered in Cupertino, California, and operates a wholly-owned for-profit college in San Diego, California [4].

Core Insights - Ambow Education Holding Ltd. has signed the White House's Pledge to America's Youth, committing to enhance AI education access for K-12 students across the U.S. [1][2] - The HybriU™ platform will be utilized to provide high-quality classroom experiences through AI-enabled tools such as real-time translation and adaptive learning [1][3] - Ambow aims to bridge geographic and resource barriers in education, ensuring immersive learning experiences for all students [3][4] Company Initiatives - Ambow will support the development of AI education resources, including curriculum, tools, training, and mentorship for educators and students over the next four years [2][4] - The company is partnering with schools to extend the reach of its HybriU AI technology and provide scalable solutions for classroom learning [4] - Ambow's mission focuses on creating an inclusive, technology-driven future for American education [4] Technology and Impact - The HybriU™ platform integrates in-person and digital instruction with AI tools, currently used by institutions like Colorado State University and the New School of Architecture & Design [3][6] - The initiative aligns with the White House Task Force on AI Education, aiming to strengthen access to AI-related learning opportunities and improve teaching methodologies [4][6] - Ambow's innovative approach is positioned to transform educational experiences by leveraging AI for real-time, immersive learning [3][6]

[Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Group's total assets and liabilities significantly increased by June 30, 2025, driven by cash and borrowings, while equity also grew [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) Total assets increased to **$23,194 thousand** by June 30, 2025, driven by cash and lease assets, while liabilities and equity also grew Condensed Consolidated Balance Sheets Summary (Amounts in thousands) | Item | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | Change ($) | Change (%) | | :-------------------------------- | :--------------------- | :-------------------- | :--------- | :--------- | | **ASSETS** | | | | | | Total current assets | 11,641 | 14,062 | 2,421 | 20.80% | | Total non-current assets | 5,730 | 9,132 | 3,402 | 59.37% | | **Total assets** | **17,371** | **23,194** | **5,823** | **33.52%** | | **LIABILITIES** | | | | | | Total current liabilities | 6,847 | 8,783 | 1,936 | 28.27% | | Total non-current liabilities | 3,787 | 5,790 | 2,003 | 52.89% | | **Total liabilities** | **10,634** | **14,573** | **3,939** | **37.04%** | | **EQUITY** | | | | | | Total equity | **6,737** | **8,621** | **1,884** | **27.97%** | - Cash and cash equivalents increased **significantly** from **$1,123 thousand** as of December 31, 2024, to **$4,064 thousand** as of June 30, 2025, representing a **261.89% increase**[5](index=5&type=chunk) - Operating lease right-of-use assets **nearly doubled**, increasing from **$2,722 thousand** to **$5,793 thousand**, reflecting new lease liabilities[5](index=5&type=chunk) - Short-term borrowings increased from **$2,700 thousand** to **$4,904 thousand**, a **81.63% rise**, contributing to the increase in current liabilities[8](index=8&type=chunk) [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) The Group achieved significant net income and operating income in H1 2025, driven by new HybriU revenue and a large lease termination gain [Operations and Comprehensive Income Overview](index=5&type=section&id=Operations%20and%20Comprehensive%20Income%20Overview) The Group achieved significant net income and operating income in H1 2025, driven by new HybriU revenue and a large lease termination gain Key Financial Highlights (Six Months Ended June 30, Amounts in thousands) | Item | 2024 ($) | 2025 ($) | Change ($) | Change (%) | | :---------------------------------- | :------- | :------- | :--------- | :--------- | | Total net revenues | 4,773 | 5,080 | 307 | 6.43% | | Gross profit | 2,565 | 2,811 | 246 | 9.59% | | Total operating expenses | (2,980) | (2,344) | 636 | -21.34% | | Operating (loss) income | (415) | 467 | 882 | -212.53% | | Gain on lease termination | — | 1,492 | 1,492 | N/A | | (Loss) income before income tax | (289) | 1,931 | 2,220 | -768.17% | | Net income | 216 | 1,884 | 1,668 | 772.22% | | Net income per share - basic and diluted | 0.0038 | 0.0330 | 0.0292 | 768.42% | | Net income per ADS - basic and diluted | 0.0760 | 0.6600 | 0.5840 | 768.42% | - **HybriU licensing and selling** generated **$1,178 thousand** in net revenues for the six months ended June 30, 2025, a **new revenue stream** not present in the prior year[13](index=13&type=chunk) - General and administrative expenses decreased by **$638 thousand**, from **$2,280 thousand** in 2024 to **$1,642 thousand** in 2025, contributing to the reduction in total operating expenses[13](index=13&type=chunk) - A **significant 'Gain on lease termination' of $1,492 thousand** was recognized in 2025, which was a **major contributor** to the increase in total other income and overall profitability[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to **$8,621 thousand** by June 30, 2025, primarily due to net income, significantly reducing the accumulated deficit [Equity Changes Overview](index=6&type=section&id=Equity%20Changes%20Overview) Total equity increased to **$8,621 thousand** by June 30, 2025, primarily due to net income, significantly reducing the accumulated deficit Key Equity Changes (Amounts in thousands) | Item | As of Jan 1, 2025 ($) | As of June 30, 2025 ($) | Change ($) | | :------------------------ | :-------------------- | :-------------------- | :--------- | | Accumulated deficit | (510,325) | (508,441) | 1,884 | | Total Equity | 6,737 | 8,621 | 1,884 | - Net income for the six months ended June 30, 2025, totaling **$1,884 thousand**, directly contributed to the increase in total equity and reduction of the accumulated deficit[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned positive in H1 2025, with substantial cash from financing activities, leading to a **$2,883 thousand** net increase in cash [Cash Flow Overview](index=7&type=section&id=Cash%20Flow%20Overview) Operating cash flow turned positive in H1 2025, with substantial cash from financing activities, leading to a **$2,883 thousand** net increase in cash Cash Flow Summary (Six Months Ended June 30, Amounts in thousands) | Cash Flow Activity | 2024 ($) | 2025 ($) | Change ($) | | :------------------------------------------ | :------- | :------- | :--------- | | Net cash (used in)/provided by operating activities | (601) | 978 | 1,579 | | Net cash provided by/(used in) investing activities | 814 | (299) | (1,113) | | Net cash (used in)/provided by financing activities | (1,239) | 2,204 | 3,443 | | Net change in cash, cash equivalents and restricted cash | (1,026) | 2,883 | 3,909 | | Cash, cash equivalents and restricted cash at end of periods | 9,029 | 11,324 | 2,295 | - Operating activities generated **$978 thousand** in cash in 2025, a **reversal** from using **$601 thousand** in 2024[16](index=16&type=chunk) - Financing activities provided **$2,204 thousand** in cash in 2025, primarily from proceeds from short-term borrowings, compared to using **$1,239 thousand** in 2024[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details the Group's organization, liquidity, accounting policies, and specific financial statement components [1. ORGANIZATION AND PRINCIPAL ACTIVITIES](index=8&type=section&id=1.%20ORGANIZATION%20AND%20PRINCIPAL%20ACTIVITIES) The Group is a U.S.-based innovator of AI-powered phygital solutions, aiming to remove barriers in education, corporate collaboration, and live events - The Group is a U.S.-based innovator of **AI-powered phygital solutions** for education, corporate collaboration, and live events[18](index=18&type=chunk) - Its mission is to **eliminate barriers** between physical and digital environments, languages and regions, and academia and industry[18](index=18&type=chunk) - The Group provides **high-quality, personalized, and dynamic career education services** and products through its network of for-profit colleges[18](index=18&type=chunk) [2. LIQUIDITY AND CAPITAL RESOURCES](index=8&type=section&id=2.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The Group maintained **positive working capital of $5,279 thousand** and sufficient liquidity, but anticipates needing additional capital for long-term plans - As of June 30, 2025, the Group's consolidated current assets exceeded current liabilities by **$5,279 thousand**, reflecting a **positive working capital balance**[19](index=19&type=chunk) - The Group reported net cash provided by operating activities of **$978 thousand** for the six months ended June 30, 2025, a **significant improvement** from **$601 thousand** used in the same period of 2024[20](index=20&type=chunk) - The Group believes it can meet anticipated cash needs for at least the next **12 months** but expects to require **additional capital** for its longer-term business plan, potentially through public offerings or credit facilities[22](index=22&type=chunk) [3. SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=3.%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section details the Group's key accounting policies, including revenue recognition, segment reporting, lease accounting, and income tax provisions [a. Basis of presentation](index=8&type=section&id=a.%20Basis%20of%20presentation) The unaudited condensed consolidated financial statements are prepared in accordance with **U.S. GAAP** for interim financial reporting and **SEC rules and regulations** - The unaudited condensed consolidated financial statements are prepared in accordance with **U.S. GAAP** for interim financial reporting and **SEC rules and regulations**[23](index=23&type=chunk) - Interim results are **not necessarily indicative** of full fiscal year or future period results[23](index=23&type=chunk) [b. Revenue recognition](index=9&type=section&id=b.%20Revenue%20recognition) Revenue is generated from **educational programs and services**, and **HybriU licensing and sales**, following the **5-step model of ASC 606** - Revenue is generated from **educational programs and services**, and **HybriU licensing and sales**, following the **5-step model of ASC 606**[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Revenue for educational programs is recognized **over time** based on school days consumed, while HybriU licensing and sales revenue is recognized at a **point in time** upon delivery[28](index=28&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) Deferred Revenue (Amounts in thousands) | Item | As of Dec 31, 2023 ($) | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | | :--------------- | :--------------------- | :--------------------- | :-------------------- | | Deferred revenue | 544 | 436 | 210 | | Recognized revenue from deferred (6 months) | 122 (2024) | 226 (2025) | N/A | [c. Segment reporting](index=10&type=section&id=c.%20Segment%20reporting) The **Chief Executive Officer (CEO)** is identified as the **chief operating decision maker (CODM)** who reviews financial information of operating segments - The **Chief Executive Officer (CEO)** is identified as the **chief operating decision maker (CODM)** who reviews financial information of operating segments[35](index=35&type=chunk)[37](index=37&type=chunk) - The Group has **two reportable segments**: Educational programs and services, and HybriU licensing and selling[26](index=26&type=chunk)[37](index=37&type=chunk) [d. Allowance for Credit Losses](index=10&type=section&id=d.%20Allowance%20for%20Credit%20Losses) The Company estimates and records an **expected lifetime credit loss** on accounts receivable and long-term receivables in accordance with **ASC Topic 326** - The Company estimates and records an **expected lifetime credit loss** on accounts receivable and long-term receivables in accordance with **ASC Topic 326**[39](index=39&type=chunk) [e. Leases](index=10&type=section&id=e.%20Leases) The Group accounts for leases under **ASC 842**, recognizing **operating right-of-use assets** and **operating lease liabilities** for non-short-term leases - The Group accounts for leases under **ASC 842**, recognizing **operating right-of-use assets** and **operating lease liabilities** for non-short-term leases[40](index=40&type=chunk) - Leases with initial terms of **12 months or less** are classified as **short-term leases** and are not recognized on the consolidated balance sheet[40](index=40&type=chunk) [f. Income taxes](index=10&type=section&id=f.%20Income%20taxes) Deferred income taxes are recognized for **temporary differences**, net of operating loss carryforwards and credits, with a **valuation allowance** applied when realization is not likely - Deferred income taxes are recognized for **temporary differences**, net of operating loss carryforwards and credits, with a **valuation allowance** applied when realization is not likely[42](index=42&type=chunk)[43](index=43&type=chunk) - Deferred tax liabilities and assets are classified as **noncurrent** and presented netted-off[45](index=45&type=chunk) [g. Recently issued accounting standards](index=12&type=section&id=g.%20Recently%20issued%20accounting%20standards) The Group is evaluating the impact of **ASU 2023-09 (Income Taxes)** effective **January 1, 2025**, and **ASU 2024-03 (Expense Disaggregation Disclosures)** effective after **December 15, 2026** - The Group is evaluating the impact of **ASU 2023-09 (Income Taxes)** effective **January 1, 2025**, and **ASU 2024-03 (Expense Disaggregation Disclosures)** effective after **December 15, 2026**[46](index=46&type=chunk)[47](index=47&type=chunk) [4. CASH, CASH EQUIVALENTS AND RESTRICTED CASH](index=12&type=section&id=4.%20CASH,%20CASH%20EQUIVALENTS%20AND%20RESTRICTED%20CASH) Total cash, cash equivalents, and restricted cash significantly increased to **$11,324 thousand** by June 30, 2025, with restricted cash for regulatory and credit purposes Cash, Cash Equivalents, and Restricted Cash (Amounts in thousands) | Item | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | | :-------------------------------------------------------------------------------- | :--------------------- | :-------------------- | | Cash and cash equivalents | 1,123 | 4,064 | | Restricted cash | 7,318 | 7,260 | | Total cash, cash equivalents, and restricted cash | 8,441 | 11,324 | - Restricted cash is required by the **U.S. Department of Education** and serves as deposits to secure **lines of credit** from financial institutions[50](index=50&type=chunk) [5. ACCOUNTS RECEIVABLE, NET](index=12&type=section&id=5.%20ACCOUNTS%20RECEIVABLE,%20NET) Net accounts receivable decreased to **$2,052 thousand** by June 30, 2025, with a stable allowance for credit losses and a small reversal Accounts Receivable, Net (Amounts in thousands) | Item | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | | :------------------------ | :--------------------- | :-------------------- | | Accounts receivable | 2,984 | 2,487 | | Less: Allowance for credit losses | (443) | (435) | | Accounts receivable, net | 2,541 | 2,052 | - Allowances for credit losses of **$90 thousand** and **$8 thousand** were reversed during the six months ended June 30, 2024 and 2025, respectively[51](index=51&type=chunk) [6. PREPAID AND OTHER CURRENT ASSETS](index=13&type=section&id=6.%20PREPAID%20AND%20OTHER%20CURRENT%20ASSETS) Prepaid and other current assets slightly increased to **$686 thousand** by June 30, 2025, driven by inventories, partially offset by lower prepayments Prepaid and Other Current Assets (Amounts in thousands) | Item | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | | :-------------------------------- | :--------------------- | :-------------------- | | Inventories | 29 | 109 | | Prepayments to suppliers | 189 | 135 | | Receivables due from third-party | 880 | 880 | | Less: allowance for credit losses | (461) | (461) | | Total | 659 | 686 | - Receivables due from third-party, net of allowance for credit losses, remained **constant at $419 thousand** (**$880k** - **$461k**) for both periods, related to Bay State College and expected to be collected within **twelve months**[52](index=52&type=chunk) [7. OTHER NON-CURRENT ASSETS](index=13&type=section&id=7.%20OTHER%20NON-CURRENT%20ASSETS) Other non-current assets increased to **$1,339 thousand** by June 30, 2025, primarily due to higher long-term lease deposits Other Non-Current Assets (Amounts in thousands) | Item | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | | :-------------------------------- | :--------------------- | :-------------------- | | Long-term receivables | 587 | 587 | | Long-term lease deposits | 194 | 340 | | Educational content | 810 | 720 | | Less: allowance for doubtful accounts | (308) | (308) | | Total | 1,296 | 1,339 | - Long-term receivables related to Bay State College remained at **$587 thousand**, with **60%** expected by end of 2025 and **40%** by end of 2026[54](index=54&type=chunk) [8. SHORT-TERM BORROWINGS](index=14&type=section&id=8.%20SHORT-TERM%20BORROWINGS) Short-term borrowings increased to **$4,904 thousand** by June 30, 2025, due to a new Evertrust Bank loan and renewed Cathay Bank facilities Short-Term Borrowings (Amounts in thousands) | Lender | Amount ($) | Interest Rate | Repayment Due Date | | :-------------------- | :--------- | :------------ | :----------------- | | Cathay BANK (Jan 2024) | 1,200 | 6.00% | Dec 27, 2025 | | Cathay BANK (Oct 2022) | 1,500 | 6.29% | Oct 10, 2025 | | EverTrust Bank (June 2025) | 2,204 | 6.75% | Based on actual repayment | | **Total as of June 30, 2025** | **4,904** | | | - The Group entered into a **new loan agreement** with Evertrust Bank for **$2,500 thousand** in April 2025, with an outstanding balance of **$2,204 thousand** as of June 30, 2025, secured by NewSchool's assets and guaranteed by the Company[57](index=57&type=chunk) - Existing Cathay Bank loans totaling **$2,700 thousand** were renewed in September and November 2024, extending maturities to **October 10, 2025**, and **December 27, 2025**, respectively, and are secured by restricted cash[58](index=58&type=chunk)[56](index=56&type=chunk) [9. ACCRUED AND OTHER LIABILITIES](index=14&type=section&id=9.%20ACCURUED%20AND%20OTHER%20LIABILITIES) Accrued and other liabilities significantly increased to **$2,284 thousand** by June 30, 2025, mainly due to a new lease termination liability Accrued and Other Liabilities (Amounts in thousands) | Item | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | | :-------------------------------- | :--------------------- | :-------------------- | | Accrued payroll and welfare | 578 | 558 | | Deferred revenue | 436 | 210 | | Amounts due to landlord for Lease Termination | — | 1,500 | | Total | 1,029 | 2,284 | - A **new liability of $1,500 thousand** for amounts due to a landlord for lease termination was recorded as of June 30, 2025, representing the current portion of a settlement agreement[59](index=59&type=chunk) - Deferred revenue decreased from **$436 thousand** to **$210 thousand**[59](index=59&type=chunk) [10. OTHER NON-CURRENT LIABILITIES](index=15&type=section&id=10.%20OTHER%20NON-CURRENT%20LIABILITIES) Other non-current liabilities increased to **$500 thousand** by June 30, 2025, entirely from the non-current portion of a lease termination settlement Other Non-Current Liabilities (Amounts in thousands) | Item | As of Dec 31, 2024 ($) | As of June 30, 2025 ($) | | :-------------------------------- | :--------------------- | :-------------------- | | Amounts due to landlord for Lease Termination | — | 500 | | Total | — | 500 | - In June 2025, the Group entered into a settlement agreement with a landlord, resulting in a **gain of $1.5 million** and establishing a **non-current liability of $500 thousand** for future installment payments[62](index=62&type=chunk) - The settlement agreement requires an initial payment of **$1.0 million** and additional **$1.0 million** in installments over **two years**, starting May 2025[62](index=62&type=chunk) [11. CONCENTRATIONS](index=15&type=section&id=11.%20CONCENTRATIONS) No significant customer or supplier concentrations existed, though **Company A** represented **23%** of accounts receivable by June 30, 2025 - **No single customer or supplier** represented **10% or more** of the Group's total revenues or total costs of sales for the six months ended June 30, 2024 and 2025[64](index=64&type=chunk)[65](index=65&type=chunk) - **Company A** accounted for **23% ($480 thousand)** of the Group's consolidated accounts receivable as of June 30, 2025, making it a **significant debtor**[66](index=66&type=chunk) [12. SHARE-BASED COMPENSATION](index=16&type=section&id=12.%20SHARE-BASED%20COMPENSATION) The Group's 2024 Equity Incentive Plan authorizes **6,500,000** ordinary shares, with no share-based compensation expense recorded in H1 2024 or 2025 - The **2024 Equity Incentive Plan**, effective **December 20, 2024**, authorizes the grant of up to **6,500,000 ordinary shares**, with an **automatic annual increase** to maintain **15%** of total outstanding ordinary shares[68](index=68&type=chunk) - **No share options** were granted, and **no restricted stock awards** were granted or vested during the six months ended June 30, 2024 and 2025[69](index=69&type=chunk)[70](index=70&type=chunk) - Consequently, **no share-based compensation expenses** were recorded for restricted stock awards for these periods, and unrecognized expenses amounted to **nil** as of June 30, 2025[71](index=71&type=chunk) [13. TAXATION](index=17&type=section&id=13.%20TAXATION) The Group reported an income tax expense of **$47 thousand** in H1 2025, with an effective tax rate of **2%**, a significant change from the prior year - The Company and its Cayman Islands subsidiaries are **not subject to tax** on income or capital gains[72](index=72&type=chunk) Income Tax Provision (Six Months Ended June 30, Amounts in thousands) | Item | 2024 ($) | 2025 ($) | | :-------------------------------- | :------- | :------- | | Current income tax | 505 | (47) | | Deferred income tax | — | — | | Provision for income tax benefit (expenses) | 505 | (47) | Effective Tax Rate Reconciliation (Six Months Ended June 30) | Item | 2024 (%) | 2025 (%) | | :-------------------------------- | :------- | :------- | | Weighted average statutory tax rate | 21% | 21% | | Changes in valuation allowance | (28)% | (17)% | | Effect of tax amendment | 177% | —% | | Effective tax rate | 175% | 2% | [14. NET INCOME PER SHARE](index=18&type=section&id=14.%20NET%20INCOME%20PER%20SHARE) Net income per share significantly increased to **$0.0330** in H1 2025, with net income per ADS rising to **$0.6600** after a ratio change Net Income Per Share (Six Months Ended June 30) | Item | 2024 ($) | 2025 ($) | | :---------------------------------------------------------------- | :------- | :------- | | Numerator for basic and diluted net income per share (thousands) | 216 | 1,884 | | Denominator (weighted average ordinary shares outstanding) | 57,127,524 | 57,127,524 | | Basic and diluted net income per share | 0.0038 | 0.0330 | | Basic and diluted net income per ADS | 0.0760 | 0.6600 | - In **February 2024**, the Company changed its ADS ratio from **one (1) ADS** representing **two (2) Class A ordinary shares** to **one (1) ADS** representing **twenty (20) Class A ordinary shares**[75](index=75&type=chunk) [15. LEASES](index=18&type=section&id=15.%20LEASES) Operating lease expense decreased to **$376 thousand** in H1 2025, with the weighted-average lease term increasing to **5.20 years** Lease Expense and Cash Flow (Six Months Ended June 30, Amounts in thousands) | Item | 2024 ($) | 2025 ($) | | :------------------------------------ | :------- | :------- | | Operating lease expense | 1,161 | 376 | | Operating cash flows used in operating leases | 622 | 200 | Weighted-Average Lease Metrics (As of June 30) | Item | 2024 | 2025 | | :-------------------------------- | :--------- | :--------- | | Weighted-average Remaining Lease Term | 1.70 Years | 5.20 Years | | Weighted-average Discount Rate | 4.32% | 6.85% | Maturities of Lease Liabilities (As of June 30, 2025, Amounts in thousands) | Period | Amount ($) | | :-------------------------------- | :--------- | | For the six months ending Dec 31, 2025 (remaining) | 178 | | For the year ending Dec 31, 2026 | 1,339 | | For the year ending Dec 31, 2027 | 1,571 | | For the year ending Dec 31, 2028 | 1,389 | | For the year ending Dec 31, 2029 | 1,326 | | Thereafter | 1,486 | | Total lease payments | 7,289 | | Less: interest | (1,287) | | Total | 6,002 | | Less: current portion | (712) | | Non-current portion | 5,290 | [16. SEGMENT REPORTING](index=20&type=section&id=16.%20SEGMENT%20REPORTING) The Group operates two segments: Educational programs and HybriU licensing, with HybriU emerging as a new revenue contributor in H1 2025 - The Group has **two reportable segments**: (i) Educational programs and services and (ii) HybriU licensing and selling[83](index=83&type=chunk) - The **Chief Executive Officer (CODM)** evaluates segment performance based on revenues and cost of revenues[84](index=84&type=chunk) Segment Net Revenues and Gross Profit (Six Months Ended June 30, Amounts in thousands) | Item | 2024 ($) | 2025 ($) | | :-------------------------------- | :------- | :------- | | **NET REVENUES** | | | | Educational programs and services | 4,773 | 3,902 | | HybriU licensing and selling | — | 1,178 | | Total net revenues | 4,773 | 5,080 | | **GROSS PROFIT** | | | | Educational programs and services | 2,565 | 1,853 | | HybriU licensing and selling | — | 958 | | Total gross profit | 2,565 | 2,811 |

Core Insights - Ambow Education Holding Ltd. reported strong financial performance in the first half of 2025, driven by the adoption of its HybriU platform, which integrates physical and digital learning solutions [3][4][7] Financial Highlights - Net revenues for Q2 2025 increased by 16.7% to $2.8 million from $2.4 million in Q2 2024, primarily due to HybriU [4] - Gross profit for Q2 2025 rose by 15.4% to $1.5 million, with a gross profit margin of 53.6% compared to 54.2% in Q2 2024 [4] - Operating expenses for Q2 2025 decreased by 15.4% to $1.1 million, mainly due to reduced rental expenses [5] - Net income attributable to ordinary shareholders for Q2 2025 was $1.8 million, or $0.03 per share, compared to $0.1 million in Q2 2024 [6] - For the first six months of 2025, net revenues increased by 6.3% to $5.1 million from $4.8 million in the same period of 2024 [7] - Operating income improved to $0.5 million for the first six months of 2025, compared to an operating loss of $0.4 million in the same period of 2024 [9] HybriU Platform Developments - HybriU's net revenues reached $1.2 million in the first half of 2025, compared to no revenues in the first half of 2024 [8] - The company established partnerships with Colorado State University and the University of the West to enhance the phygital learning experience [8] - New HybriU products for corporate applications were launched, including HybriU Conferencing and HybriU Knowledge Capture [8] - The HybriU Global Learning Network was introduced in July to connect U.S. institutions with students worldwide [8] Cash Position - As of June 30, 2025, Ambow maintained cash resources of $11.3 million, consisting of $4.0 million in cash and cash equivalents and $7.3 million in restricted cash [6]

Core Viewpoint - Ambow Education Holding Ltd. has launched the HybriU Global Learning Network (HGLN) to help U.S. universities expand international enrollment and provide immersive education through AI-powered hybrid classrooms [1][5]. Group 1: HGLN Initiative Overview - The HGLN consists of two main components: the HybriU University Alliance and a network of HybriU Global Learning Centers, creating a system for U.S. institutions to offer in-person classroom experiences to international students [2][4]. - The initiative allows international students to earn credits immediately without the need for travel or visas, utilizing Ambow's HybriU phygital learning platform [3][6]. Group 2: Educational Technology and Support - The HybriU platform provides an immersive remote classroom experience, featuring real-time engagement with U.S. faculty, adaptive learning tools, and automatic real-time translation [3]. - HybriU Global Learning Centers serve as tech-enabled hubs that offer hybrid learning support and academic services, helping universities maintain visibility and continuity across borders [4][6]. Group 3: Vision and Future of Education - The CEO of Ambow Education emphasizes a future of education without boundaries, advocating for flexible and inclusive international learning models [5]. - HGLN aims to create a global learning ecosystem that connects students, universities, and regional hubs, removing barriers to international education [5]. Group 4: Partnership Opportunities - Ambow invites accredited U.S. universities to join the HybriU University Alliance and establish a presence through the Global Learning Center network, which is designed to scale with local support teams [7]. - Initial HybriU Global Learning Centers are being set up in strategic regions such as Singapore and China to facilitate U.S. higher education growth [6].

Core Viewpoint - Ambow Education Holding Ltd. has launched HybriU Knowledge Capture, an extension of its HybriU platform, aimed at helping enterprises retain critical knowledge and ensure operational continuity [1][3]. Product Features - HybriU Knowledge Capture includes the HybriU AI UniBox, a portable control pad, and a USB microphone, providing a compact system that records and securely stores corporate sessions [2][9]. - The system captures various formats including voice audio, electronic whiteboard content, and PowerPoint presentations, applicable for in-person, remote, or hybrid sessions [2][9]. - AI technology analyzes recordings to generate searchable summaries and key-point highlights, creating a structured institutional knowledge library [2][9]. Organizational Impact - The solution addresses the challenge of knowledge retention, ensuring stability and future-proofing organizations as teams evolve [3]. - By transforming meetings and training sessions into permanent resources, HybriU Knowledge Capture enhances competitive advantages and secures institutional knowledge [3][5]. - It enables faster onboarding, effective training, and real-time knowledge transfer across organizations [9]. Strategic Positioning - HybriU Knowledge Capture is part of Ambow's broader HybriU platform suite, representing a new wave of innovations aimed at reshaping knowledge preservation and sharing in both educational and corporate settings [6][10]. - The company positions itself as a pioneer in AI-driven solutions for education and collaboration, bridging physical and digital environments [7][10].

Core Viewpoint - Ambow Education Holding Ltd. has announced a partnership with University of the West to enhance access to U.S.-based higher education for international students through its HybriU Education platform, which integrates physical and digital learning solutions [1][2][3]. Group 1: Partnership Details - The partnership will utilize Ambow's HybriU technology platform to deliver real-time courses from UWest's U.S. campus, facilitating interaction between faculty and remote students globally [2][4]. - This collaboration aims to support international students who face travel or visa challenges, ensuring academic continuity and maintaining student support standards [2][3]. Group 2: Technology and Innovation - HybriU combines various technologies, including lecture capture, AI, and 3D immersive technology, into a single platform, allowing instructors to focus on teaching while AI manages the technical aspects [3][4]. - The platform transforms physical classrooms into connected spaces, enhancing the learning experience for remote students with features like real-time multilingual interaction and AI-powered adaptive instruction [4][6]. Group 3: University Profile - University of the West is a private, nonprofit institution in California, recognized for its commitment to whole-person education and global engagement [5][6]. - A significant portion of UWest's student population consists of international students, and the integration of the HybriU platform will help the university expand its global reach [6].

Core Viewpoint - Ambow Education Holding Ltd. has appointed James Bartholomew as President to drive growth and innovation in the company's educational technology solutions [1][4]. Group 1: Leadership Appointment - James Bartholomew brings over 25 years of leadership experience in private education, manufacturing, and transportation, with a focus on growth and operational excellence [2]. - His previous role as Senior Vice President at Adtalem Global Education involved leading a $1.5 billion integration of Walden University and developing technology roadmaps [3]. - Bartholomew has a strong background in educational innovation and organizational transformation, holding an MBA in international management [4]. Group 2: Strategic Vision - Bartholomew expressed excitement about expanding HybriU's reach, emphasizing its potential to create new opportunities in education and corporate learning [5]. - HybriU is described as a phygital platform that integrates physical and digital experiences, aiming to redefine AI-driven education and corporate communications [5][6]. - The platform supports various industries and use cases, including higher education, corporate learning, and large-scale events, enhancing engagement and accessibility [5][6].

Core Insights - Ambow Education Holding Ltd. has entered into an agreement with Colorado State University to utilize its HybriU Digital Educational Solution platform, aimed at modernizing classroom engagement and enhancing the phygital learning experience for both students and faculty [1][3]. Group 1: HybriU Digital Educational Solution - The HybriU solution is a compact, all-in-one platform that transforms traditional classrooms into intelligent learning environments, facilitating seamless connectivity between in-person and remote learners [2]. - Key features of the HybriU system include real-time lecture capture, multilingual transcription, AI-generated content summaries, and immersive display capabilities, which enhance hybrid instruction by making it more interactive and accessible [2][3]. - The deployment of HybriU at Colorado State University reflects a broader trend in U.S. higher education, where institutions are increasingly seeking flexible and scalable solutions to improve teaching and student engagement [3][4]. Group 2: Market Position and Future Outlook - Ambow's HybriU is positioned as a leading platform in the U.S. education landscape, with expectations for its footprint to expand as more institutions adopt hybrid learning models [4]. - The solution is already in use across the global education sector, including at Ambow's own NewSchool of Architecture & Design, which was ranked 23 in Social Mobility by U.S. News & World Report in 2025 [5]. - Ambow also offers HybriU Conferencing, which provides phygital solutions for corporate environments, indicating the versatility of the HybriU platform beyond education [6].