Financial Performance - In the first half of 2025, the company achieved a consolidated operating revenue of 365.93 million yuan, a decrease of 4.24 million yuan (1.15%) compared to the same period last year [2] - The net profit attributable to shareholders was 53.28 million yuan, down 9.52 million yuan (15.16%) year-on-year [2] - The net profit after deducting non-recurring gains and losses was 53.15 million yuan, a decrease of 8.80 million yuan (14.21%) compared to the previous year [2] - The investment loss from the company's stake in Zhonghao Xinying was 8.92 million yuan, significantly impacting the overall profit reduction [3] Revenue Insights - In Q1 2025, the company reported an operating revenue of 183.35 million yuan, a decrease of 4.25 million yuan due to seasonal fluctuations in the ink business [4] - The revenue for Q2 2025 was stable compared to the same period last year, with expectations for the full year to remain consistent with previous years [4] Educational Sector Developments - The company is focusing on the integration of AI technology in vocational education, launching the Kede AI Learning Platform, which has over 30,000 users [5] - The competitive landscape in the education market is intensifying, with an increase in private high schools and vocational institutions [5] - The company plans to enhance hardware facilities and teaching management to improve student enrollment and satisfaction [6] Ink Business Performance - The core product lines include offset and UV inks, with brands "Dongwu" and "Kingswood" maintaining a strong market presence [7] - Cost control measures include a "long-term agreement + dynamic adjustment" procurement strategy to ensure stable supply and competitive pricing [7] - The ink market is expected to grow, particularly in high-end printing segments, despite challenges in traditional publishing due to digitalization [8] Investment in Zhonghao Xinying - The company holds a 5.53% stake in Zhonghao Xinying, which specializes in TPU architecture AI chips [8] - The investment loss from Zhonghao Xinying is a key factor in the company's profit decline, but future revenue recognition is anticipated to improve overall investment returns [4][8]

Group 1 - The 29th Cross-Strait Economic and Trade Fair focuses on "Innovation Leading, Win-Win Future" to promote deep integration of technology innovation and industry between Shandong and Taiwan [1] - The opening ceremony highlighted Shandong's policies for building a first-class technology innovation ecosystem and promoting the transformation of technological achievements [1] - Taiwan's Hwa Hsia Group Chairman shared insights on collaborative paths for industrial upgrades between cross-strait enterprises [1] Group 2 - The event features six thematic activities covering modern agriculture, high-end chemicals, health care, and vocational education to deepen practical cooperation [2] - The conference aims to invite representatives from Taiwan's political, business, educational, cultural, and youth sectors to promote deeper cross-strait integration through diverse exchanges [2] - The emphasis is on leveraging mutual advantages and establishing partnerships through industry-to-industry and enterprise-to-enterprise collaborations, particularly with state-owned enterprises in mainland China [1]

Group 1 - The company, Jiean High-Tech (300845.SZ), has participated in the construction of the high-speed rail Luban Academy in Thailand and the Laos Luban Workshop railway signal training base project [1]

Core Viewpoint - The establishment of the China-Shanghai Cooperation Organization Vocational Education Cooperation Center marks a significant step in enhancing vocational education collaboration among SCO member states [1] Group 1: Key Initiatives - The center will focus on building a high-level vocational education cooperation system, collaborating with SCO countries on curriculum development, teacher training, and standard alignment [1] - There will be an emphasis on integrating education with industry, particularly in the fields of digital economy and new energy, to cultivate high-quality skilled talent [1] - A platform for industry-education integration will be established to facilitate internships and practical training for skilled talent, ensuring alignment with enterprise needs [1] - The promotion of "Luban Workshops" will be a priority to strengthen vocational education cooperation with SCO countries [1]

Core Viewpoint - The implementation opinions aim to accelerate the construction of a strong education province in Hainan, aligning with the needs of the Hainan Free Trade Port and proposing a "1248" system framework for high-quality education development [1][2]. Group 1: Education Development Framework - The "1248" system framework includes two platforms: "International Education Innovation Island" and "Smart Education Island," focusing on creating a new high ground for educational openness, a new benchmark for digital education, and a new engine for comprehensive educational reform [1][2]. - The goal is to establish a high-quality education system that supports and leads the development of the Hainan Free Trade Port by 2035, with major educational indicators ranking among the top in the country [1]. Group 2: Specific Measures and Goals - The implementation opinions outline comprehensive plans for basic education, higher education, and vocational education, proposing 40 specific measures across 10 areas to enhance educational reform and innovation [2]. - Key initiatives include establishing a monitoring system for school-age population changes, optimizing higher education structures to meet the needs of the Free Trade Port, and strengthening vocational education to align with key industries [2]. - The plan emphasizes the integration of artificial intelligence in education and aims to attract world-class educational resources, including top overseas universities to establish campuses in Hainan [2]. Group 3: Governance and Accountability - Local party committees and governments are tasked with the primary responsibility for educational development, ensuring that policies and objectives for building a strong education province are effectively implemented [3]. - A regular tracking and evaluation mechanism will be established to promote collective efforts across society in advancing the education province initiative [3].

Group 1 - The company achieved a revenue of 171 million yuan in H1 2025, representing a year-on-year increase of 12.5%, and a net profit attributable to shareholders of 735,000 yuan, marking a turnaround from loss to profit [1] - In Q2 2025, the company reported a revenue of 81 million yuan, with a year-on-year growth of 7.2%, and a net profit attributable to shareholders of 266,700 yuan, also indicating a return to profitability [1] - The company has maintained positive revenue growth for 11 consecutive quarters, with operating net cash flow turning positive at 24 million yuan in H1 2025, confirming a stable positive trend in fundamentals [1] Group 2 - The company is advancing in vocational education and has established partnerships with vocational colleges in Hunan and Shandong in H1 2025 [2] - The company has launched a full-owned subsidiary focused on specialized training services, targeting training for government officials and technology innovation talent [2] - The gross margin improved to 29.3% in H1 2025, an increase of 1.6 percentage points year-on-year, while management expenses decreased by 4.2 percentage points [2]

Core Insights - "Luban Workshop" is a prominent brand in vocational education initiated in Tianjin, aiming to establish a global presence in vocational training and education, supported by the achievements of the "National Modern Vocational Education Reform and Innovation Demonstration Zone" [3] - As of now, China has established 36 Luban Workshops in 30 countries across Asia, Africa, and Europe, providing education to 33,800 individuals and conducting over 120,000 skill training sessions, positioning Luban Workshop as a "national business card" for China's vocational education on the global stage [3] Summary by Sections Overview of Luban Workshop - The first Luban Workshop was established in March 2016 in collaboration with Thailand, integrating various technical disciplines into the national education system [3] - President Xi Jinping has emphasized the importance of Luban Workshop in over 40 diplomatic occasions since 2018, highlighting its role in international cooperation [3] Cooperative Models - Various cooperative models have been developed for the Luban Workshop, including government-to-government strategic partnerships, collaborations between educational institutions and management departments, and deep integration with enterprises [4] - The workshops aim to create a comprehensive overseas vocational education output system covering multiple educational levels through a combination of technical training and academic education [4] Teaching Innovations - The Luban Workshop has introduced the Engineering Practice Innovation Project (EPIP) teaching model, which integrates theoretical and practical education, encouraging students to actively engage in problem-solving [4] - The first EPIP application and promotion institution in Africa was established in Ethiopia in 2021 through a partnership between Tianjin Vocational Technical Normal University and Ethiopian Technical University [4] Beneficiary Companies - Jiean High-tech has participated in the construction of Luban Workshops in Thailand and Laos, promoting Chinese vocational education through international cooperation [5] - China Wuyi signed a talent cooperation agreement with a local Luban Workshop in Ethiopia, aiming to jointly cultivate at least 500 technical talents in fields such as new energy and intelligent construction over the next three years [5] - Xueda Education Group was awarded a training practice base in Tianjin, leveraging the Luban Workshop to support the Belt and Road Initiative and international capacity cooperation [5]

Core Viewpoint - The company, China Oriental Education (00667), has shown better-than-expected recovery in enrollment, leading to upward revisions in revenue and profit forecasts for 2025 and 2026 [1][2]. Revenue and Profit Forecasts - Revenue forecasts for 2025 and 2026 have been increased by 2.4% and 6.4% respectively, reaching 4.5 billion yuan and 5 billion yuan [1]. - Adjusted net profit forecasts have been raised by 16.8% and 28.0%, now estimated at 756 million yuan and 974 million yuan [1]. Enrollment and Student Numbers - New enrollment numbers have gradually returned to normal, with a 7.1% year-on-year increase in the first half of 2025 [3]. - Average training sessions increased by 5.5% year-on-year, driven by strong performance in short-term and high-value programs [3]. - The number of schools increased by one compared to the end of the previous year [3]. Segment Performance - Revenue and new enrollment numbers by segment for the first half of 2025: - Culinary Arts: Revenue +11.4%, Enrollment +5.2% - Western Pastry: Revenue +14.3%, Enrollment +0.7% - Information Technology: Revenue -3.0%, Enrollment +6.4% - Automotive Services: Revenue +9.6%, Enrollment +9.3% - Fashion and Beauty: Revenue +90.2%, Enrollment +34.1% [3]. Profitability Improvement - The overall gross margin for the first half of 2025 was 57.3%, an increase of 4.3 percentage points year-on-year [4]. - All five segments reported year-on-year improvements in gross margin, with notable increases in Fashion and Beauty (+8.8 percentage points) and Culinary Arts (+5.1 percentage points) [4]. - The adjusted net profit margin reached 19.0%, up 5.0 percentage points year-on-year, attributed to effective cost and expense management [4]. Product Structure and Strategic Development - The company is optimizing its long-term education product structure, with a focus on 15-month high-skill programs expected to see over 50% growth in new enrollments by 2026 [5]. - The management is accelerating the development of a higher education-oriented professional system and upgrading vocational schools to technician colleges over the next three to five years [5].

Core Viewpoint - China Oriental Education (00667) has shown better-than-expected enrollment recovery, leading to upward revisions in revenue and adjusted net profit forecasts for 2025 and 2026 [1][2] Revenue and Profit Forecasts - Revenue forecasts for 2025 and 2026 have been increased by 2.4% and 6.4% to 4.5 billion and 5 billion yuan respectively [1] - Adjusted net profit forecasts have been raised by 16.8% and 28.0% to 756 million and 974 million yuan respectively [1] Enrollment and Training Performance - New enrollment numbers increased by 7.1% year-on-year in the first half of 2025, with average training sessions up by 5.5% [3] - Notable performance in short-term training programs and high-value professional courses contributed significantly to overall enrollment [3] - Specific segment performance includes: - Culinary Technology: Revenue +11.4%, New Enrollment +5.2% - Western Pastry and Cuisine: Revenue +14.3%, New Enrollment +0.7% - Information Technology: Revenue -3.0%, New Enrollment +6.4% - Automotive Services: Revenue +9.6%, New Enrollment +9.3% - Fashion and Beauty: Revenue +90.2%, New Enrollment +34.1% [3] Profitability Improvement - Overall gross margin for the first half of 2025 was 57.3%, an increase of 4.3 percentage points year-on-year [4] - All five business segments reported year-on-year gross margin improvements, with notable increases in Culinary Technology and Fashion and Beauty [4] - Adjusted net profit margin reached 19.0%, up 5.0 percentage points year-on-year, attributed to effective cost and expense management [4] Product Structure and Strategic Development - The 15-month high-skill programs are aligned with student needs for skill enhancement and rapid employment, with expected enrollment growth of over 50% in 2026 [5] - The company is accelerating the development of a higher education-oriented professional system and upgrading vocational schools to technician colleges [5] - Management anticipates a 10% revenue growth and over 20% net profit growth in 2026 [3][5]

Core Viewpoint - China Oriental Education reported a slight beat on market expectations for adjusted net profit in 1H2025, driven by effective cost and expense management [1][2] Financial Performance - Revenue for 1H2025 reached 2.19 billion yuan, a year-on-year increase of 10.2%, in line with market expectations [1] - Adjusted net profit grew by 49.5% year-on-year to 416 million yuan, slightly above market expectations [1] - Overall gross margin improved to 57.3%, up 4.3 percentage points year-on-year, with all five business segments showing improvement [2] - Adjusted net profit margin reached 19.0%, an increase of 5.0 percentage points year-on-year, attributed to effective cost control [2] Enrollment Trends - New student enrollment increased by 7.1% year-on-year in 1H2025, with average training sessions up by 5.5% [1] - The number of schools increased by one compared to the end of the previous year [1] - Specific segment performance included: - Culinary Arts: Revenue up 11.4%, new enrollment up 5.2% - Western Pastry and Cuisine: Revenue up 14.3%, new enrollment up 0.7% - Information Technology: Revenue down 3.0%, new enrollment up 6.4% - Automotive Services: Revenue up 9.6%, new enrollment up 9.3% - Fashion Beauty: Revenue up 90.2%, new enrollment up 34.1% [1] Strategic Outlook - The company plans to increase the number of beauty industry schools to 13 by the end of 2026, targeting over 50% revenue growth [1] - Management expects a 10% revenue growth and over 20% net profit growth for 2026 [1] Profitability Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been raised by 2.4% and 6.4% to 4.5 billion yuan and 5 billion yuan, respectively [2] - Adjusted net profit forecasts for 2025 and 2026 have been increased by 16.8% and 28.0% to 756 million yuan and 974 million yuan, respectively [2] - The target price has been raised by 58% to 9.5 HKD, based on a 9.8x 2025e adjusted EV/EBITDA [2]