Core Points - IELTS has acknowledged a significant error due to a "technical fault" that led to systematic misjudgment of scores, affecting test-takers from August 2023 to September 2025, with score changes ranging from 0.5 to 1.5 points [1][5] - The incident is expected to impact around 70,000 candidates, with potential refund amounts reaching 140 million yuan [2][5] - The error has raised concerns about the reliability of the IELTS system, as even a small score change can have substantial implications for candidates' academic futures [5][11] Company and Industry Summary - The IELTS exam, which has seen its registration fee increase from 1550 yuan to 2170 yuan over the past decade, is now facing scrutiny due to its pricing structure and perceived inequities in score distribution [17][21] - The British Council, the sole official operator of IELTS in mainland China, is reportedly facing a financial crisis, with three consecutive years of losses and a warning of potential disappearance within a decade if government intervention does not occur [27][28] - IDP Education, another key player in the IELTS ecosystem, has reported an 18% decline in test volume and a 15% drop in testing revenue, although it has attempted to offset losses through price increases [27][28] - The IELTS exam is still the most widely recognized English proficiency test globally, particularly in Commonwealth countries, with approximately 2.3 million tests conducted annually [23][29] - In response to the recent issues, IELTS has announced its first price reduction in 36 years, lowering the registration fee in mainland China from 2170 yuan to 1990 yuan starting January 2026 [31]

Core Viewpoint - The global study abroad market is facing significant challenges due to tightening visa policies and increasing uncertainty in major destination countries, leading to a downward revision of profit expectations by IDP Education for the fiscal year 2025 [1][2]. Group 1: Impact on IDP Education - IDP Education announced a projected decline of approximately 28%-30% in student placements and an 18%-20% drop in language test numbers for the fiscal year ending June 30, 2025 [1]. - Following the announcement, IDP's stock price plummeted by 48% on June 3, resulting in a loss of nearly 1 billion AUD, marking the largest drop in eight years [1]. - The company is reviewing long-term costs, productivity, and investment strategies to mitigate the impact of declining revenues [2]. Group 2: Changes in Study Abroad Policies - Major study destinations, including Canada, the US, the UK, and Australia, have implemented stricter immigration and study policies, contributing to a significant decrease in visa issuance [5][6][7]. - As of March 31, 2025, visa issuance for IDP's students in Canada and the US is expected to drop by 65% and 27%, respectively, while the UK and Australia are projected to see declines of 9% and 10% [5]. Group 3: Business Segments of IDP - IDP's primary business segments include student placement services, language testing (IELTS), and English education, with student placement being the largest revenue source [4]. - In the previous year, the number of students placed in major English-speaking countries increased by 17%, reaching a record 98,900, with a revenue growth of 27% in this segment [4]. Group 4: Market Dynamics in China and India - IDP is facing challenges in the Indian IELTS market, with a 55% decline in participation due to policy changes and increased competition, leading to a 19% drop in language testing revenue [9]. - The company plans to expand into the Chinese market, having ceased its partnership with the British Council to directly conduct IELTS exams in China [10].