Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached RMB 539 million, representing a 9.5% year-over-year increase, driven by strong demand and course offerings [6][14] - Net income surged to RMB 126.6 million, with a net margin of 23.5%, marking a 154% increase year-over-year and a 158.5% sequential jump [6][20] - The company achieved 17 consecutive quarters of profitability, demonstrating resilience in its strategy and operational execution [16] Business Line Data and Key Metrics Changes - Interest-based courses contributed 78% of total revenue this quarter, with new student enrollments exceeding 300,000 [15][17] - Non-degree programs, including professional certifications and interest-based courses, accounted for 77.6% of total revenue, with interest-based learning showing over 15% year-over-year growth [9][15] - The company has built a private user base of tens of millions, converting over 1 million into paying users, with high completion and repurchase rates [10][15] Market Data and Key Metrics Changes - The adult education market in China is expected to exceed RMB 1 trillion by 2027, with a five-year CAGR of 12.6%, and online education projected to grow at 17.3% [8] - The focus on the silver demographic (ages 15 to 75) has emerged as a high-potential audience, with significant engagement metrics reported [10][12] Company Strategy and Development Direction - The company is transitioning from a degree-centric approach to a three-pillar model focusing on degree programs, professional skills, and interest-based learning [8][9] - The strategic shift towards the silver economy and intelligent personalization powered by AI positions the company to lead in senior education [12][16] - Future plans include broadening the course portfolio, enhancing course structure, and improving the learning experience [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainty and emphasized the importance of generating high-quality earnings and scaling operational efficiency [16] - The outlook for 2025 anticipates net revenues between RMB 500 million to 520 million, reflecting a year-over-year increase of 1.8% to 5.8% [21] Other Important Information - Cash and cash equivalents as of June 30, 2025, were RMB 586.7 million, an increase from RMB 507.2 million at the end of 2024 [21] - Deferred revenue balance decreased to RMB 814.3 million from RMB 915.5 million as of December 31, 2024 [21] Q&A Session Summary - No questions were raised during the Q&A session, leading to the conclusion of the call [22][23]

Core Viewpoint - Ruanyun Edai Technology Inc. reported a decrease in total revenue for FY2025, but significant growth in software customization and content development, alongside improved profitability due to aggressive cost management and a strategic shift towards higher-margin AI-based services [3][4]. Financial Performance Highlights - Total revenues decreased by 27.0% to approximately $6.7 million in FY2025 from $9.2 million in FY2024 [4][6]. - Cost of revenues dropped by over 50% to approximately $2.9 million, leading to a gross profit increase of 29.1% to approximately $3.8 million, with gross margin improving to 56.7% [4][9]. - Net loss narrowed significantly to approximately $0.5 million in FY2025 from approximately $2.1 million in FY2024, reflecting a 75.3% improvement [4][15]. Revenue Breakdown - Revenue from SmartExam® solution increased by 15.5% to $0.7 million, while SmartHomework® solution revenue decreased by 29.8% to $6.0 million [7]. - Software customization and content development revenue surged by 3117% to approximately $2.4 million, and licensing revenue increased by 5492% to $153,666 [10][11]. - Digitalization services revenue decreased by 45.5% to approximately $2.9 million, primarily due to changes in Chinese education policies [10][11]. Cost Management and Operating Expenses - Operating expenses decreased by 15.4% to approximately $4.3 million, driven by reductions in selling and research and development expenses [12][14]. - Selling expenses decreased by 24.7% to approximately $1.8 million, while general and administrative expenses increased by 8.7% to approximately $1.6 million [13]. Recent Developments - Ruanyun announced partnerships to expand its AI-powered HanLink platform in Saudi Arabia and successfully launched the platform at a local school [17]. - The company completed its IPO on the Nasdaq, raising approximately $15 million, which supports its international business replication efforts [18]. Cash and Assets - As of March 31, 2025, cash balances were approximately $0.7 million, down from $1.1 million in the previous year [16]. - Total assets increased to approximately $5.87 million from $5.22 million, with current assets rising to approximately $4.28 million [21]. Liabilities and Equity - Current liabilities increased to approximately $6.38 million, primarily due to short-term bank loans rising to approximately $4.41 million [22]. - Total equity showed a decline, with accumulated deficit reaching approximately $15.63 million [22].

Core Insights - NETCLASS Technology INC has signed a Framework Agreement for Cooperation with Nanyang Institute of Social Sciences to enhance AI-powered education [1][5] - The partnership aims to leverage data and AI capabilities to improve course delivery and teaching outcomes while supporting NetClass's expansion in Singapore [2][5] Company Overview - NETCLASS Technology INC is a leading B2B smart education IT solutions provider with offices in Shanghai, Hong Kong, Singapore, and Tokyo, offering services such as SaaS subscription and application software development [7] - The company focuses on delivering innovative IT solutions for schools, training institutions, and other organizations, aiming for sustainable growth [7] Partnership Details - The collaboration will involve co-developing a smart digital learning platform focused on social and management sciences, integrating intelligent systems for teaching, learning, and assessment [3][4] - The partnership will follow a phased approach, with potential future equity-level cooperation to strengthen their joint efforts in educational technology [4] Strategic Importance - This partnership is seen as a significant step in executing NetClass's global expansion strategy, particularly in Southeast Asia, a dynamic education market [5] - The collaboration is expected to drive innovation in teaching models and contribute to the digital transformation of education, nurturing high-quality talent for the future [5]