8 January 2026 | 3:34PM HKT Equity Research CHINA EDUCATION Nov-Q preview and what to look for in 2026: Growth paradigm shift and AI reshaping ongoing; TAL remains the preferred name Into 2026, we believe the ongoing growth paradigm shift in China's K-12 education sector (details in our Aug 2025 note) remains the most important theme for investors to monitor, which is underpinned by multiple factors: 1) reducing K-9 student population resulting from declining birth rates, which leads to long-term pressure o ...

Financial Data and Key Metrics Changes - Brookfield Asset Management has exceeded its five-year targets, with fee-bearing capital growing from $277 billion to $563 billion, representing a 200 basis point outperformance [37] - Fee-related earnings (FRE) increased from $1.3 billion to $2.7 billion, demonstrating strong growth despite market uncertainties [38] - The company achieved a 15% growth rate over the past five years, with a projected 16% growth rate moving forward [42][51] Business Line Data and Key Metrics Changes - The flagship funds have grown from $53 billion to $93 billion in fee-bearing capital, a 75% increase [39] - Complementary strategies have seen significant growth, increasing from $14 billion to $74 billion, marking a fivefold increase [40] - The credit business expanded from $100 billion to $250 billion, a 130% increase, showcasing diversification and growth in core competencies [41] Market Data and Key Metrics Changes - The global distributed generation (DG) market is expected to reach over $500 billion by 2030, with Brookfield's expertise positioning it well for growth in this sector [31] - The K-12 education sector, represented by the GEMS investment, shows strong margins and high cash flow conversion, indicating a stable market opportunity [57] Company Strategy and Development Direction - Brookfield aims to double its size in less than five years by leveraging products, partnerships, and individual investor markets [28][51] - The company is focusing on digitalization, de-globalization, and decarbonization as key investment themes, which are expected to drive future growth [7][8] - Brookfield is expanding its wealth solutions platform, targeting high net worth and retail investors, with a goal to raise $10 billion this year [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on growth targets due to strong investor demand and a large opportunity set that aligns with their expertise [37][56] - The company highlighted the importance of maintaining a disciplined approach to protect performance amid market volatility [18] - Management believes that the best is yet to come, with multiple growth levers available to exceed base case projections [56] Other Important Information - Brookfield has simplified its corporate structure and is now headquartered in the U.S., enhancing its market cap and positioning for index inclusion [48] - The company has established a strong presence in the Middle East through strategic investments like GEMS, which provides a competitive advantage in sourcing opportunities [58][61] Q&A Session Summary Question: What are the key differentiators for Brookfield's private equity fund? - The focus is on operational transformation and value investing, targeting industrial companies and essential services where Brookfield has an information advantage [64]