Group 1 - The Hainan Provincial Examination Bureau announced the cultivation of 295 order-directed free medical students for rural health clinics in 2025, supported by central and provincial finances [1] - Among the 295 students, 235 will be undergraduate students in Clinical Medicine and Traditional Chinese Medicine with a five-year program, while 60 will be specialized students in Acupuncture and Tuina with a three-year program [1] - Additionally, 180 order-directed free village doctors will be trained under the rural revitalization program, with a focus on Acupuncture and Tuina, also for a three-year program [1] Group 2 - Candidates must meet the 2025 ordinary college entrance examination registration requirements, with specific conditions for those applying for undergraduate medical programs, including residency in designated rural areas for at least three years [1][2] - The application timeline for undergraduate free medical students coincides with the early application period for undergraduate programs, while the timeline for specialized free medical students and village doctors aligns with the early application period for vocational (specialized) programs [2] - The designated rural areas for recruitment include villages, rural centers, town-rural combined areas, towns, urban-rural combined areas, and special regions, excluding main urban areas of prefecture-level cities and county-level cities [2]

Company Overview - Afya is the largest hub of medical education and solutions for medical practice in Brazil[11] - The company's mission is to provide an ecosystem that integrates education and medical practice solutions for the entire medical journey[8] - As of May 2025, Afya has 3,653 medical seats after the last acquisition of Faculdade Única de Contagem[57] - Afya holds a 9% market share of private medical seats in Brazil, with a total of 3,653 seats out of 38,450 approved medical seats[59, 60] Financial Performance (1Q25) - Net revenue reached R$936 million[62] - Adjusted EBITDA was R$492 million, representing a 52.5% adjusted EBITDA margin[62] - Adjusted net income amounted to R$294 million[62] - Medical school net average ticket was R$9,240[63] Operational Metrics (1Q25) - The company has 37 undergraduate campuses and 20 medical graduate campuses[62] - Afya has 3,593 approved medical seats and 25,879 medical students[62, 70] - Continuing education enrolled students numbered 46,909[62] - Medical Practice Solutions has 244,518 monthly active users[62] Growth and Strategy - Undergraduate programs saw a 14.5% increase in net revenue[70] - Continuing Education experienced an 8.7% increase in net revenue[77] - Medical Practice Solutions reported a 13.7% increase in net revenue[83]

Financial Data and Key Metrics Changes - Net revenue increased by 16%, reaching R936 million, with adjusted EBITDA growing almost 24% year over year to R492 million, achieving a record margin of 52.5% [5][17][19] - Cash flow from operating activities rose by almost 10% to R470 million, reflecting a cash conversion rate of 96.8% [5][18] - Net income reached R257 million, marking a 23% growth year over year, with EPS of R2.79, also a 23% increase [5][19][20] Business Line Data and Key Metrics Changes - Undergrad segment net revenues increased over 17% to R827 million, with medical students growing 15% to almost 26,000 [12][16] - Continuing education segment net revenue rose almost 9% year over year to R71 million, with a notable 8% increase in B2B revenue [8][14] - Medical practice solutions segment saw a 14% growth in net revenue, reaching R42 million, driven by B2B contracts and active payers increasing to over 198,000 [8][15] Market Data and Key Metrics Changes - The ecosystem now includes over 370,000 active users, demonstrating substantial penetration among physicians and medical students in Brazil [8][16] - The company received a credit rating upgrade from Moody's from AAplus.br to AAA.br, reflecting strong growth and financial discipline [9][10] Company Strategy and Development Direction - The company focuses on expanding its educational systems and medical practice solutions, aiming to support students in becoming physicians and enhancing medical learning [21] - Strategic acquisitions, such as the Funiq acquisition, are expected to enhance operations and increase approved medical seats [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2025, maintaining guidance for the year despite strong margin performance [29][30] - The intake process for medical students was reported as healthy, with a strong brand recognition contributing to a favorable candidate-to-seat ratio [31][32] Other Important Information - The company achieved all IFC-defined targets for 2024, which will trigger a reduction in interest rates, reinforcing its commitment to social impact and financial discipline [10] - The company received its first ESG rating from MSCI, debuting with a solid BBB score, indicating strong performance in data privacy and security [10] Q&A Session Summary Question: What drove the strong EBITDA margin performance? - Management attributed the margin expansion to higher gross margins from undergrad and continuing education segments, along with operational efficiencies from restructuring [27][28] Question: Are there challenges in the intake process due to expanded medical course offerings? - Management reported a healthy intake process with strong brand recognition, noting around seven to eight candidates per seat [31][32] Question: Any significant changes in the competitive landscape affecting average ticket prices? - Management indicated that while the average ticket grew 4%, it was impacted by retention issues from last year, but they expect future increases to be higher [36][38] Question: What is the expectation for the medical practice solutions segment given the decrease in monthly active users? - Management noted a transitional decline due to the portal change but expects improvements as the new system stabilizes [40][42] Question: Clarification on the minimum tax under OECD Pillar Two rules? - Management explained that the new law introduces minimal taxation for multinational groups, and they are currently provisioning for this tax [49][50] Question: How is the company preparing for the SoftBank convertible debt deadline? - Management stated they are prepared with cash flow generation to handle potential early redemption of the debt [53][54]

Financial Data and Key Metrics Changes - Net revenue increased by 16%, reaching R936 million, with adjusted EBITDA growing almost 24% year over year to R492 million, achieving a record margin of 52.5% [5][17] - Cash flow from operating activities rose by almost 10% to R470 million, with a cash conversion rate of 96.8% and a solid cash position of nearly R1.2 billion at the end of Q1 [5][18] - Net income reached R257 million, reflecting a 23% growth year over year, with EPS of R2.79, also a 23% increase compared to the previous year [5][19] Business Line Data and Key Metrics Changes - The undergraduate segment saw net revenues increase by over 17%, achieving R827 million, with a 4% rise in net average ticket to R9,240 [12][16] - Continuing education net revenue rose to R71 million, reflecting a growth of almost 9% year over year, driven by an 8% increase in B2B revenue [7][14] - Medical practice solutions segment expanded by 14% in net revenue, reaching R42 million, with B2P contributing R37 million and B2B R4 million [15][16] Market Data and Key Metrics Changes - The ecosystem now includes over 370,000 active users, demonstrating substantial penetration among physicians and medical students in Brazil [16] - The number of approved medical seats increased to 3,653 following the Funiq acquisition, with undergraduate medical students reaching almost 26,000, a 50% growth compared to Q1 2024 [6][12] Company Strategy and Development Direction - The company emphasizes a three-pillar business model focusing on strong growth, higher profitability, and cash generation, with ongoing operational restructuring to improve cost management [4][6] - Recent acquisitions and expansions, such as the Funiq acquisition and the ramp-up of new campuses, are expected to enhance operational capabilities and market presence [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2025, maintaining guidance for the year despite the robust performance in Q1 [27][28] - The company is optimistic about future opportunities, particularly in expanding its educational systems and medical practice solutions [21][22] Other Important Information - Moody's upgraded the company's national scale credit rating from AAplus.br to AAA.br, reflecting strong growth and financial discipline [9] - The company received its first ESG rating from MSCI, debuting with a solid BBB score, indicating strong performance in data privacy and security [10] Q&A Session Summary Question: What drove the strong EBITDA margin performance? - Management indicated that higher gross margins from the undergraduate and continuing education segments, along with operational efficiencies from restructuring, contributed to the margin expansion [25][26] Question: Are there challenges in the intake process due to increased medical course offerings? - Management reported a healthy intake process with strong brand recognition, noting around seven to eight candidates per seat, indicating no significant challenges in filling seats [29][30] Question: Any significant changes in the competitive landscape affecting price hikes? - Management acknowledged that while the average ticket grew in line with inflation, there were impacts from retention policies affecting pricing strategies [36][37] Question: What is the expectation for the medical practice solutions segment given the decrease in monthly active users? - Management explained that the decrease was due to the transition from the PepMed portal to the Afya portal, but they expect improvements as the changes stabilize [39][41] Question: Clarification on the OECD Pillar Two tax implications? - Management detailed that the new tax law introduces minimal taxation for multinational groups, and they are currently provisioning for potential impacts while seeking legal clarification [48][50] Question: How is the company preparing for the SoftBank convertible debt? - Management stated they are prepared with cash flow generation to meet obligations if the debt is not converted into equity, with provisions already in place for potential early redemption [51][53]

Core Viewpoint - The incident surrounding "Peking Union Medical College 4+4" highlights not only the exposure of malpractice in the medical field but also prompts a systemic reflection on the pathways for social mobility [1] Group 1: Medical Field Insights - The incident occurred in the medical field, which has traditionally been viewed as a "hardcore" discipline with high difficulty and minimal operational space, thus considered to have high value [5] - The perception that even the medical field, regarded as the most rigorous, can have operational space for manipulation is a significant shift in understanding [12] Group 2: Institutional Credibility - Peking Union Medical College has long been recognized as a prestigious institution, with its medical doctorate programs generally not questioned in terms of quality [11] - The recent events challenge the notion that even the most authoritative institutions are immune to issues of integrity [12] Group 3: Educational System Reflection - The 4+4 system, derived from the American medical education model, was initially seen as a progressive and mature approach to medical training [13][14] - Despite its perceived advantages, the system has been shown to have vulnerabilities that can be exploited [18] Group 4: Fairness in Education - The discussion raises critical questions about what constitutes a "good system," emphasizing that fairness is the foundational principle that should guide educational reforms [27] - The current educational system, particularly the college entrance examination, is viewed as a mechanism that ensures fairness, even amidst criticisms of its rigidity [20][21]

Group 1 - The "4+4" clinical medicine training program at Peking Union Medical College allows non-medical undergraduates to obtain a medical doctorate in four years, starting from 2019, and aims to attract diverse talent to the medical field [1][2] - The program is designed to address the limitations of traditional eight-year medical education, which often attracts students without a clear commitment to the medical profession, thus providing opportunities for those with a genuine interest in medicine [2] - The program includes rigorous admission processes with initial screening and multiple rounds of interviews, as well as various assessments throughout the training to ensure quality and competency of graduates [3] Group 2 - The "4+4" program is inspired by American medical education models, recognizing that students from humanities and social sciences can also excel in medicine, not just those from biological or engineering backgrounds [2] - There are concerns regarding the need for improved monitoring and training of graduates once they enter medical institutions, highlighting the importance of transparency in the program's admission, training, and graduation processes [3]

Core Viewpoint - The recent scandal involving a doctor from the China-Japan Friendship Hospital has sparked significant public debate regarding the "4+4" medical training model, which compresses the traditional medical education timeline and raises concerns about the competency of graduates [1][2][14]. Group 1: Overview of the "4+4" Medical Training Model - The "4+4" model allows students to complete a four-year non-medical undergraduate degree followed by four years of medical education, significantly shortening the traditional training period [4][10]. - This model was first introduced in 2002 at Shanghai Jiao Tong University and has since been adopted by several institutions, including Peking Union Medical College and Zhejiang University [6][7]. - The curriculum emphasizes interdisciplinary knowledge, integrating engineering and medical sciences, and aims to cultivate clinical thinking and technical innovation [9][36]. Group 2: Controversies and Concerns - The core controversy surrounding the "4+4" model is its compressed training period, which typically results in only one year of residency training compared to the three years required for traditional medical graduates [14][39]. - Critics argue that graduates of the "4+4" program lack sufficient clinical experience, which is crucial for effective medical practice, leading to concerns about patient safety and trust in healthcare professionals [24][46]. - The case of a specific graduate, referred to as "Miss Dong," exemplifies these concerns, as her rapid ascent in the medical field raises questions about the adequacy of her training and qualifications [21][27]. Group 3: Future Directions and Recommendations - Despite the criticisms, the "4+4" model is seen as an innovative approach to medical education that seeks to diversify the backgrounds of medical professionals, aligning with international practices [29][30]. - There is a call for educational institutions to find a balance between shortening the training period and ensuring adequate clinical experience for graduates [54]. - Ongoing discussions emphasize the need for reforms in the medical education system to address the shortcomings of the "4+4" model while maintaining its innovative spirit [52][53].

Financial Data and Key Metrics Changes - Net revenue increased by 14.9%, reaching BRL 3,000,304,300 [6][24] - Adjusted EBITDA grew by 25% year over year, amounting to BRL 1,000,455,600, with a margin of 44.1% [6][24] - Cash flow from operating activities rose by 34%, totaling BRL 1,453 million, with a cash conversion rate of 102% [6][25] - Net income for 2024 reached BRL 649 million, marking a 60.1% increase year over year [6][26] - EPS for the year was BRL 7.01, a 63% increase compared to the previous year [6][26] Business Line Data and Key Metrics Changes - The number of medical students grew by 13%, exceeding 24,000 students [18] - Approved medical seats increased by 13% year over year [18] - Continuing education segment net revenue increased by 8%, reaching BRL 255 million [20] - Medical Practice Solutions segment revenue grew by 15%, reaching BRL 162 million [22] Market Data and Key Metrics Changes - The ecosystem now includes 313,000 active users, comprising physicians and medical students [8][22] - The average ticket for medical school increased by 4.6%, reaching BRL 849 [19] Company Strategy and Development Direction - The company aims to maintain a disciplined capital allocation strategy, focusing on both organic and inorganic growth opportunities [33][39] - Plans to distribute dividends equivalent to 20% of consolidated net income for 2024, indicating a commitment to shareholder value while pursuing growth [13][33] - The company is targeting the acquisition of 200 seats per year to support growth [33][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 guidance, citing operational efficiency and growth in key segments [34][55] - The company is optimistic about the continuing education segment, expecting further expansion in 2025 [48] - Management noted a healthy intake process for new students, with strong demand across various regions [70] Other Important Information - The company reported a significant social impact, with a calculated social return on investment of 3.58 times the investment made [11] - The company is committed to enhancing healthcare access and generating economic returns in the communities it serves [11] Q&A Session Summary Question: Sustainability of Dividend Levels - Management indicated that while no formal policy is established for future dividends, the capital allocation strategy remains focused on growth opportunities [33] Question: Top Line Guidance Drivers - Management highlighted confidence in achieving guidance, emphasizing operational efficiency and growth in key segments [34] Question: M&A Pipeline and Dividend Distribution - Management confirmed that M&A opportunities remain a priority, with a selective approach to acquisitions [39][41] Question: Tuition Fee Increases - Management stated that they are successfully passing tuition increases in line with inflation, supported by strong brand recognition [40][41] Question: Continuing Education Segment Outlook - Management expects continued expansion in the continuing education segment, driven by a large cohort of graduating students [48] Question: Profitability and Margin Expansion Drivers - Management attributed expected margin expansion to operational leverage and efficiency improvements across segments [55][58] Question: Regulatory Comments and Proficiency Exam Proposal - Management expressed support for higher quality standards in the sector, viewing regulatory changes as an opportunity for differentiation [72][73]