Summary of Conference Call Notes Company Overview - **Company**: China Oriental Education - **Industry**: Education Key Points Revenue Performance - For the full year 2025, the number of new students is expected to increase by 6% year-on-year, with revenue projected to grow by 12% to 4.63 billion yuan, exceeding the expected growth rate of 10% [1] - In the second half of 2025, revenue is anticipated to reach 2.444 billion yuan, representing a year-on-year increase of 14.6% [1] - The revenue outperformance is primarily attributed to a rapid increase in the proportion of high-priced classes lasting 15 months, which has elevated the average transaction value [1] Profitability Expectations - The company forecasts a full-year net profit and adjusted net profit growth of 46%-51%, translating to a net profit range of approximately 749 million to 774 million yuan, with a median net profit margin of 16.45% [1] - The adjusted net profit is expected to be in the range of 766 million to 793 million yuan, with a median adjusted net profit margin of 16.83% [1] - For the second half of 2025, the net profit is projected to be 359 million yuan, reflecting a year-on-year growth of 48.7% and a net profit margin of 14.7%, an increase of 3.37 percentage points year-on-year [1] Seasonal Impact - There is an acknowledgment of seasonal effects, with higher sales expenses and operating costs in the second half of the year compared to the first half [2] Strategic Initiatives - The spring recruitment is expected to accelerate growth, with overall spring recruitment fees increasing by approximately 20% year-on-year [3] - The company is diversifying its brand portfolio into beauty, pet care, and caregiving sectors, aligning with career development trends that are less likely to be replaced by AI and are experiencing robust growth [3] - A net profit target of 1 billion yuan is projected for 2026, corresponding to a price-to-earnings (PE) ratio of 12.2 times, with an assumed dividend payout of 80%, resulting in a dividend yield of approximately 6.4% [3]