Core Viewpoint - Four Seasons Education reported solid growth in the first half of fiscal year 2026, with total revenue reaching RMB145.3 million, a 7.9% increase year-over-year, and a significant rise in net income by 313.9% to RMB12.4 million, driven by a healthy product mix and efficiency gains [5][7][15]. Financial and Operational Highlights - Total revenue increased by 7.9% to RMB145.3 million (US$20.4 million) from RMB134.7 million in the same period last year [7][8]. - Gross profit rose by 30.9% to RMB38.8 million (US$5.4 million) compared to RMB29.7 million in the same period last year, attributed to the growth in the enrichment learning business [10][15]. - Operating income was RMB9.2 million (US$1.3 million), a turnaround from an operating loss of RMB5.7 million in the same period last year [12]. - Adjusted operating income (non-GAAP) was RMB9.8 million (US$1.4 million), compared to an adjusted operating loss of RMB1.6 million in the same period last year [12][15]. - Net income reached RMB12.4 million (US$1.7 million), up from RMB3.0 million in the same period last year [15]. - Adjusted net income (non-GAAP) was RMB13.7 million (US$1.9 million), compared to RMB2.1 million in the same period last year [15]. - Basic and diluted net income per American Depositary Share (ADS) were RMB4.53 (US$0.63) and RMB4.48 (US$0.63), respectively, compared to both RMB0.98 in the same period last year [16]. Cost and Expense Management - Cost of revenue was RMB106.5 million (US$14.9 million), slightly up from RMB105.0 million in the same period last year, primarily due to increased staff costs in the enrichment learning business [9]. - General and administrative expenses decreased by 10.7% to RMB24.3 million (US$3.4 million) from RMB27.2 million in the same period last year, mainly due to reduced share-based compensation expenses [11]. - Sales and marketing expenses decreased by 34.3% to RMB5.3 million (US$0.7 million) from RMB8.1 million in the same period last year, attributed to lower advertising activities [12]. Strategic Outlook - The company plans to prudently expand its enrichment learning business while strategically scaling capacity in line with market demand to ensure sustainable growth [5]. - There is a focus on shifting the tourism product portfolio towards higher-margin, value-added offerings to create a more resilient business model [5]. - The management emphasizes operational efficiency, strategic execution, and a diverse service and product portfolio to drive profitable growth and enhance long-term competitiveness [5].