Event Overview - The group's total revenue, net profit attributable to shareholders, and adjusted net profit for FY2025 are projected to be 2.489 billion, 514 million, and 592 million yuan, respectively, representing year-on-year growth of 7.7%, a decline of 28.1%, and a decline of 20.7% [1] - The decline in net profit is primarily due to increased investment leading to a decrease in gross margin and goodwill impairment of 42 million yuan [1] - The company plans to distribute a final dividend of 0.074 HKD per share and an interim dividend of 0.066 HKD per share, with a payout ratio of 30%, corresponding to a dividend yield of 9.66% [1] Financial Performance - Revenue from tuition, accommodation, and non-degree vocational education services for the group is 2.156 billion, 205 million, and 128 million yuan, respectively, with year-on-year growth of 6.3%, 4.9%, and 46.3% [1] - Revenue from China and overseas is 2.465 billion and 24 million yuan, with year-on-year growth of 8.6% and a decline of 43.1%, respectively; the decline in overseas revenue is attributed to changes in the Australian government's foreign student visa policy, which has now returned to normal [1] - As of the end of FY2025, the total number of students enrolled in the group is 99,800, an increase of 4.4% year-on-year [1] Enrollment and Growth - Enrollment figures for various institutions within the group show mixed results, with Huashang Vocational College experiencing significant growth due to a strong student base in the Greater Bay Area and a good reputation [1] - The number of students at Huashang College, Huashang Vocational College, Urban Vocational College, Overseas College, Urban Technician College, and Huashang Technical School are 31,200, 25,500, 25,900, 1,200, 10,000, and 6,100, respectively, with year-on-year changes of -2.4%, 16.8%, 18.7%, -29.5%, -10.8%, and -14.8% [1] Capital Expenditure and Liabilities - Capital expenditure for FY25 is projected at 865 million yuan, a year-on-year increase of 122%, primarily for land acquisition and construction of new campuses and facilities [2] - Contract liabilities for FY2025 are expected to be 1.441 billion yuan, a year-on-year decrease of 9% [2] Profitability Analysis - The gross margin for FY25 is 40.7%, a decrease of 8.0 percentage points year-on-year, with costs in various categories increasing significantly [2] - The net profit margin and adjusted net profit margin are 20.6% and 23.8%, respectively, with declines of 10.3 and 8.5 percentage points year-on-year [2] - The decline in net profit margin is attributed to an increase in financial expense ratio, other losses, and administrative and marketing expense ratios [2] Future Outlook - In the short term, a decline in student enrollment is expected for FY26 due to the company's proactive adjustment of enrollment plans for professional upgrades and high-quality development; however, stable growth is anticipated in FY27 [2] - Future growth points for the company may include integration of industry and education, as well as social training [2] - Progress in international education is noted, with the first batch of foreign students this year and preparations for a teaching center in Hong Kong and overseas, indicating potential recovery in overseas business [2] - Adjusted revenue forecasts for FY26 are lowered to between 2.909 billion and 2.541 billion yuan, with new revenue forecasts for FY27-28 at 2.652 billion and 2.815 billion yuan [2]