Financial Data and Key Metrics Changes - Revenue increased by 12% to $803 million, with adjusted EPS growing by 41% to $1.57, both exceeding expectations [4][12] - Adjusted operating income rose by 39% to $124 million, with operating margins up approximately 300 basis points to 15.5% [12] - Adjusted EBITDA increased by 29% to $156 million, representing an adjusted EBITDA margin of 19% [12] Business Line Data and Key Metrics Changes - Backup Care revenue grew by 26% to $253 million, driven by strong demand during the peak summer season [4][13] - Full-service revenue increased by 6% to $516 million, supported by enrollment growth, tuition increases, and new center openings [7][14] - Education advisory revenue grew by 10% to $34 million, led by the strength of College Coach and an expanded participant base in EdAssist [9][15] Market Data and Key Metrics Changes - Enrollment in centers open for more than one year increased at a low single-digit rate, with average occupancy in the mid-60% range [7][14] - UK full-service business showed enrollment growth and improved demand among working families, contributing positively to the overall segment [8][68] Company Strategy and Development Direction - The company aims to build a more integrated model that aligns delivery, technology, and client partnerships, with Backup Care as a cornerstone of this strategy [11] - Plans to continue investing in Backup Care to expand capacity and deepen personalization, reinforcing its value proposition [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to sustain growth in Backup Care, projecting an 18% growth for the year, with expectations for low double-digit growth in the following year [20][22] - The company is upgrading its full-year earnings guidance, expecting revenue of approximately $2.925 billion and adjusted EPS in the range of $4.48 to $4.53 [11][17] Other Important Information - The UK segment is expected to contribute modestly positive earnings in 2025, with ongoing improvements in operational performance [8][68] - The company has generated $203 million in cash from operations and repurchased $105 million of stock [16] Q&A Session Summary Question: Sustainability of Backup Care growth rates - Management noted that while current growth is strong, they expect to return to a sustainable growth rate of 11% to 13% in the following year [20][22] Question: Clarification on enrollment growth - Management indicated that enrollment growth is expected to taper to around 1% for the year, with low single-digit growth being a temporary measure [26][27] Question: Impact of economic conditions on tuition pricing - The company plans to implement an average tuition increase of around 4%, with localized pricing strategies based on demand [33][72] Question: Performance of the UK segment - The UK segment is improving and is expected to contribute positively to margins, although it still trails behind the US business [68] Question: Pricing strategy in relation to wage inflation - Management expressed confidence in maintaining a pricing strategy that outpaces wage inflation, targeting a 100 basis point spread [71][72] Question: Net center openings for next year - The company anticipates being a net closer of centers, with plans to close 5 to 10 centers due to underperformance [74][76]

Company Overview - Future Development Holdings Limited, formerly known as China Children's Care Limited, is a leading company in the Chinese market focused on children's care products, integrating research and development, manufacturing, and marketing [4] - The "Frog Prince" brand is recognized as one of the leading domestic brands in children's personal care products, appealing to both children and parents due to its quality and engaging cartoon imagery [4] Financial Performance - As of December 31, 2024, Future Development Holdings reported total revenue of 471 million yuan, a year-on-year decrease of 1.73% [2] - The company experienced a net profit of -49.75 million yuan, reflecting a year-on-year decline of 38.66% [2] - The gross profit margin stood at 25.67%, with a debt-to-asset ratio of 35.77% [2] Market Position and Industry Context - The stock of Future Development Holdings has seen a cumulative decline of 20% over the past month and a 67.35% drop year-to-date, underperforming the Hang Seng Index, which has risen by 15.2% [2] - The company's price-to-earnings ratio is reported at -0.66, ranking it 85th in the industry, while the average price-to-earnings ratio for the food and beverage sector is 23.55 [3] Strategic Initiatives - The company is committed to enhancing its product offerings and developing new products that meet customer and market demands, while increasing investment in research and development [5] - Future Development Holdings aims to strengthen its brand marketing through increased advertising on children's television channels and other media [5] - The company plans to leverage its market position, recognized brand, comprehensive sales network, and strong product development capabilities to solidify its presence in the children's personal care industry [5]