New Oriental Education & Technology Group Inc (EDU) 2025 Q4 法說會逐字稿

Good evening, and thank you for standing by for New Oriental's FY 2025 fourth quarter results earnings conference call.

晚上好，感謝您參加新東方2025財年第四季業績電話會議。

(Operator Instructions) Today's conference is being recorded. If you have any objections, you may now disconnect at this time.

（操作員指示）今天的會議正在錄音。如果您有任何異議，您現在可以斷開連接。

I would now like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao.

現在，我想將會議交給今天會議的主持人趙思思女士。

Thank you. Hello, everyone, and welcome to New Oriental's fourth fiscal quarter 2025 earnings conference call. Our financial results for the period were released earlier today and are available on the company's website as well as our newswire services.

謝謝。大家好，歡迎參加新東方2025財年第四季財報電話會議。我們該期間的財務業績已於今天早些時候公佈，可在公司網站和我們的新聞通訊服務上查閱。

Today, Stephen Yang, Executive President and Chief Financial Officer; and I, will share New Oriental's latest earnings results and business updates in detail with you. After that, Stephen and I will be available to answer your questions.

今天，我和新東方執行總裁兼財務長楊志強將與大家詳細分享新東方最新的獲利成果和業務動態。之後，史蒂芬和我將回答您的問題。

Before we continue, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the view expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. New Oriental does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。前瞻性陳述涉及固有風險和不確定性。因此，我們的結果可能與今天表達的觀點有重大不同。我們向美國證券交易委員會提交的公開文件中概述了許多潛在的風險和不確定性。新東方不承擔更新任何前瞻性聲明的義務，除非適用法律要求。

As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on New Oriental's Investor Relations website at investor.neworiental.org.

提醒一下，本次會議正在錄製中。此外，本次電話會議的網路直播將在新東方投資者關係網站 investor.neworiental.org 上提供。

I will now first turn the call over to Mr. Yang. Stephen, please go ahead.

現在我先將電話轉給楊先生。史蒂芬，請繼續。

Thank you, Sisi. Hello, everyone, and thank you for joining us on the call. It's that time of the year again. We're pleased to announce that Q4 performance exceeded expectations, demonstrating our strong commitment and capabilities to enhance operational consistency and drive long-term value creation.

謝謝你，茜茜。大家好，感謝您參加我們的電話會議。又到了一年中的這個時候。我們很高興地宣布，第四季度的業績超出了預期，證明了我們增強營運一致性和推動長期價值創造的堅定承諾和能力。

This quarter's total net revenue, excluding revenues generated from East Buy private label product and live streaming business increased by 18.7% year-over-year, mainly contributed by the continued expansion of our new ventures.

本季度，不包括東方購物自有品牌產品和直播業務產生的收入在內的總淨收入同比增長18.7%，主要得益於我們新業務的持續擴張。

Bottom line-wise, we're delighted to see that our efforts to reduce cost and improve efficiency have proven effective with non-GAAP operating margin, again, excluding operating margin generated from East Buy reached 6.5% this quarter, representing a year-over-year improvement of 410 basis points.

總而言之，我們很高興地看到，我們降低成本和提高效率的努力已被證明是有效的，非 GAAP 營業利潤率（不包括 East Buy 產生的營業利潤率）本季度達到 6.5%，同比增長 410 個基點。

Our key remaining business remains solid, while our new initiatives have also shown positive momentum.

我們剩餘的主要業務依然穩固，而我們的新舉措也顯示出積極的勢頭。

Breaking down for the fourth [fiscal] (added by company after the call) quarter of 2025. overseas test prep business recorded a revenue increase of 15% year-over-year. Overseas studies consulting business reported a revenue increase of about 8% year-over-year. Our adults and university students business recorded a revenue increase of 17% year-over-year.

2025年第四季（電話會議後公司補充）的細分數據：海外考試輔導業務收入年增15%。留學諮詢業務收入較去年同期成長約8%。我們的成人和大學生業務收入較去年同期成長17%。

At the same time, our continued investments in new education business initiatives, primarily centered on facilitating students' all-around development have also delivered consistent progress, further driving the company's overall momentum.

同時，我們持續投入以促進學生全面發展為主的新型教育業務，也取得了持續進展，進一步推動了公司的整體發展動能。

Firstly, the non-academic tutoring business, which focus on cultivating students' innovative ability and comprehensive quality has shown being rolled out to around 60 cities. Market penetration has significantly increased, particularly across higher-tier cities. The top 10 cities contribute over 60% of this business.

一是注重培養學生創新能力和綜合素質的非學歷輔導業務，已涵蓋約60個城市。市場滲透率顯著提高，尤其是高線城市。排名前十的城市貢獻了超過60%的業務。

Secondly, the intelligent learning system and device business, which utilizes our past teaching experience data and technology to provide personalized and targeted learning and exercise content to improve students' learning efficiency, has been tested in around 60 existing cities. We're happy to see improved customer retention and scalability of this new business. The top 10 cities contribute over 50% of this business. In summary, our new educational business initiatives reported a revenue increase of 33% year-over-year for the fourth [fiscal] (added by company after the call) quarter of 2025.

其次，智慧學習系統及設備業務，利用我們過往的教學經驗數據和技術，提供個人化、有針對性的學習及練習內容，以提高學生的學習效率，目前已在現有約60個城市進行測試。我們很高興看到這項新業務的客戶保留率和可擴展性得到提高。排名前十的城市貢獻了超過50%的業務。總而言之，我們的新教育業務計畫報告稱，2025 年第四財季（電話會議後公司新增）營收年增 33%。

Moving to our integrated tourism-related business line, which includes study tour, research campuses for student of K-12 and university students, and tours targeting middle-aged senior audience, recorded a revenue increase of about 71% year-over-year for the fourth fiscal quarter of 2025.

轉向我們的綜合旅遊相關業務線，其中包括學習旅遊、針對 K-12 學生和大學生的研究校園以及針對中老年觀眾的旅遊，2025 財年第四季度的收入同比增長約 71%。

Breaking down both domestic and international study tours in the research camp for K-12 and university students was conducted across 55 cities nationwide, with the top 10 cities contributing over 50% of the revenue.

此次研學營針對K-12及大學生，分國遊學、國外遊學，涵蓋全國55個城市，其中排名前10位的城市貢獻了超過50%的收入。

We also provided a series of premium tourism offerings primarily designed to middle aged and senior audience across 30 feature provinces in China and internationally. Our product range has also been expanded, now includes culture travel, China study tour, global study tour and camp education.

我們也提供了一系列主要針對中國和國際 30 個特色省份的中老年觀眾的優質旅遊產品。我們的產品範圍也擴大，現在包括文化旅遊、中國遊學、全球遊學和營地教育了。

With regard to our OMO system, we continue our efforts in developing and revamping our online merge offline teaching platform. while leveraging our educational infrastructure and technological strengths across our key business lines and new initiatives. These efforts aim to deliver more advanced and diversified education services to our customers of all ages. A total of $28 million have been invested during the quarter to upgrade and maintain our OMO teaching platform.

關於我們的OMO系統，我們繼續努力開發和改進我們的線上融合線下教學平台，同時利用我們的教育基礎設施和技術優勢，將我們的教育基礎設施和技術優勢運用到我們的關鍵業務線和新舉措中。這些努力旨在為各個年齡層的客戶提供更先進、更多樣化的教育服務。本季共投資2,800萬美元用於升級和維護我們的OMO教學平台。

Beyond OMO, I would like to take this opportunity to highlight our investments in AI and how we integrate it into our teaching ecosystem. Leveraging a combination of open source large models such as DeepSeek and GPT, along with our self-developed AI technologies, we have developed new innovative education solutions for our students.

除了 OMO 之外，我想藉此機會強調我們在人工智慧方面的投資以及我們如何將其融入我們的教學生態系統。我們結合DeepSeek、GPT等開源大模型與自主研發的AI技術，為學生開發了創新的教育解決方案。

Recently, we launched two new products. First, a new generation of AI-powered intelligent learning devices. These products feature deep AI integration and equip K-9 students with multifunctional tools, including spoken language coaching, automated essay grading, dictation exercises, classical text recitation, and voice assistant functionality, all designed to enhance learning outcomes while saving the time for both teachers, students and parents.

最近，我們推出了兩款新產品。一是新一代AI智能學習設備。這些產品具有深度人工智慧整合功能，為 K-9 學生配備多功能工具，包括口語輔導、自動作文評分、聽寫練習、經典文本朗誦和語音助理功能，旨在提高學習成果，同時節省教師、學生和家長的時間。

Second, a new AI-driven smart study solution. This product combines premium content from global sources. Our very own accumulated the teaching and researching experience and AI technology. These achievements mark key progress in our customer-focused education products, positioning us as a leader in applying AI to the education field.

二是全新AI驅動的智慧學習解決方案。該產品融合了來自全球各地的優質內容。我們自己累積了教學、研究經驗和人工智慧技術。這些成果標誌著我們以客戶為中心的教育產品取得了關鍵進展，使我們成為人工智慧應用於教育領域的領導者。

We will continue investing in AI to drive future innovation. Not only does AI help enhance our offerings, but also improve internal efficiency.

我們將繼續投資人工智慧，以推動未來的創新。人工智慧不僅有助於增強我們的產品，還能提高內部效率。

We have launched an AI content creation platform and student performance feedback application which helps support lesson planning and strengthen home school communication. These tools also provide valuable insights into learning habits and user engagement.

我們推出了人工智慧內容創作平台和學生表現回饋應用程序，有助於支援課程規劃並加強家校溝通。這些工具也為學習習慣和使用者參與度提供了寶貴的見解。

Additionally, an AI-powered FAQ databases has been created built from our day-to-day sales conversations, which have significantly reduced training cost for our sales team and improved sales efficiency and conversion rates.

此外，我們還根據日常銷售對話創建了一個由人工智慧驅動的常見問題解答資料庫，這大大降低了我們銷售團隊的培訓成本，並提高了銷售效率和轉換率。

Now I would like to take a moment to talk about the East Buy. As I know, many of you are interested in it. In fiscal year 2025, East Buy by continued to invest in private label product strategy centered around green, healthy, and high-quality. While enriching its product portfolio and exploring new categories. It also achieved breakthroughs in blockbuster products and product upgrades. With consistent quality and broad consumer appeal, East Buy's private label products have become household staples, gaining greater market recognition.

現在我想花點時間談談 East Buy。據我所知，你們當中很多人對此感興趣。2025財年，東百持續投入以綠色、健康、高品質為中心的自有品牌產品策略。同時豐富其產品組合併探索新的類別。在重磅產品和產品升級上也取得突破。憑藉著始終如一的品質和廣泛的消費者吸引力，East Buy的自有品牌產品已成為家喻戶曉的必需品，獲得了更大的市場認可。

During the reporting period, East Buy further advanced its multichannel strategy and implemented enhancements to its East Buy app and East Buy mini store, all of which have provided users, which improved experience. As the business continues to develop steadily, East Buy has placed greater emphasis on improving operational efficiency and profitability levels to align with the group's overall strategy.

在報告期間內，東買進一步推動多通路策略，對東買APP、東買小店等進行了優化，提升了用戶的體驗。隨著業務的持續穩定發展，東百更加重視提升營運效率和獲利水平，以配合集團的整體策略。

Now I would like to take this opportunity to talk about our share repurchase actions. As of May 31, 2025, the company repurchased an aggregate approximately 14.5 million ADSs for approximately $700 million from the open market.

現在我想藉此機會談談我們的股票回購行動。截至 2025 年 5 月 31 日，該公司從公開市場回購了總計約 1,450 萬股 A​​DS，回購金額約 7 億美元。

Now I will turn the call over to Sisi to share with you about the key financials. Sisi, please go ahead.

現在我將把電話交給 Sisi，讓她與大家分享主要的財務狀況。茜茜，請繼續。

Thank you, Stephen. Now I'd like to share our key financial details for this quarter.

謝謝你，史蒂芬。現在我想分享我們本季的主要財務細節。

Operating cost and expenses for the quarter were $1,251.8 million, representing an 11.2% increase year-over-year. Cost of revenues increased by 5.1% year-over-year to $569.9 million. Selling and marketing expenses increased by 1.8% year-over-year to $211.9 million.

本季營運成本和費用為 12.518 億美元，年增 11.2%。收入成本年增 5.1% 至 5.699 億美元。銷售和行銷費用年增1.8%至2.119億美元。

G&A expenses increased by 9.1% year-over-year to $409.8 million. Impairment of goodwill was $60.3 million compared to nil in the same period of the prior fiscal year. Total share-based compensation expenses, which were allocated to related operating cost and expenses, increased by 11% to $28.6 million in the fourth fiscal quarter of 2025. Operating loss was $8.7 million compared to operating income of $10.5 million in the same period of the prior fiscal year.

一般及行政開支年增 9.1% 至 4.098 億美元。商譽減損損失為 6,030 萬美元，而上一財年同期為零。2025 財年第四季度，分配給相關營運成本和費用的股權激勵費用總額增加 11%，達到 2,860 萬美元。營業虧損為 870 萬美元，而上一財年同期的營業收入為 1,050 萬美元。

Non-GAAP operating income, excluding share-based compensation expenses, amortization of intangible assets resulting from the business acquisitions and impairment of goodwill assigned to the reporting units of kindergarten business was $81.7 million, representing a 116.3% increase year-over-year.

非公認會計準則營業利潤（不包括股權激勵費用、業務收購產生的無形資產攤銷以及分配給幼兒園業務報告單位的商譽減值）為 8,170 萬美元，年增 116.3%。

Net income attributable to New Oriental for the quarter was $7.1 million, representing a 73.7% decrease year-over-year. Basic and diluted net income per ADS attributable to New Oriental were $0.04 and $0.04, respectively.

本季歸屬於新東方的淨利為710萬美元，年減73.7%。新東方每股美國存託憑證基本淨利和稀釋淨利分別為0.04美元和0.04美元。

Non-GAAP net income attributable to New Oriental for the quarter was $98.1 million, representing a 59.4% increase year-over-year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were $0.62 and $0.61, respectively.

本季歸屬於新東方的非美國通用會計準則淨利潤為9,810萬美元，較去年同期成長59.4%。新東方非美國通用會計準則每股美國存託憑證基本淨利及攤薄淨利分別為0.62美元及0.61美元。

Net cash flow generated from operation for the fourth fiscal quarter of 2025 was approximately $399.1 million, and capital expenditures for the quarter were $65.9 million.

2025財年第四季經營活動產生的淨現金流約為3.991億美元，本季資本支出為6,590萬美元。

Turning to the balance sheet. As of May 31, 2025, New Oriental had cash and cash equivalents of $1,612.4 million, $1,447.8 million in term deposits and $1,873.5 million in short-term investments.

轉向資產負債表。截至2025年5月31日，新東方擁有現金及現金等價物16.124億美元、定期存款14.478億美元及短期投資18.735億美元。

New Oriental's deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods were delivered at the end of the fourth fiscal quarter of fiscal year 2025 was $1,954.5 million, an increase of 9.8% as compared to $1,780.1 million at the end of the fourth quarter of fiscal year 2024.

新東方的遞延收入（代表從客戶處預先收取的現金以及將在服務或商品交付時確認的相關收入）為 2025 財年第四季末的 19.545 億美元，較 2024 財年第四季末的 17.801 億美元增長 9.8%。

Now I'll hand over to Stephen to go through our outlook, guidance, and our new shareholder return plan.

現在我將把時間交給史蒂芬來介紹我們的展望、指導和新的股東回報計劃。

Thank you, Sisi. As we look ahead for fiscal year 2026, we remain optimistic and committed to not only driving revenue growth, but also placing greater emphasis on upholding profitability across all business lines, supported by various cost control and efficiency enhancement measures.

謝謝你，茜茜。展望2026財年，我們依然保持樂觀，不僅致力於推動營收成長，也將更加重視維護所有業務線的獲利能力，並採取各種成本控制和效率提升措施。

To better reflect our long-term strategic priorities and align with the nature of the education industry, characterized by longer business cycles with seasonality, we are now providing full year guidance in addition to our quarterly outlook. We believe this expanded guidance offers a more meaningful and accurate reflection of our business performance and strategy as it smooths out short-term seasonal volatility. We encourage investors to focus on this long-term indicator, which provides a clearer and more comprehensive view of our business, operational progress and growth trajectory.

為了更好地反映我們的長期策略重點並符合教育產業的特徵（其特點是業務週期較長且具有季節性），我們現在除了季度展望外還提供全年指導。我們相信，這項擴大後的指導方針能夠更有意義、更準確地反映我們的業務績效和策略，因為它可以平滑短期季節性波動。我們鼓勵投資者關注這個長期指標，它可以更清晰、更全面地了解我們的業務、營運進展和成長軌跡。

We expect total net revenue for the Group, including East Buy in the first quarter of fiscal year 2026, June 1, 2025 to August 31, 2025, to be in the range of $1,464.1 million to $1,507.2 million, representing a year-over-year increase in the range of 2% to 5%. As for the total net revenue for the group also including East Buy for the full year 2026, June 1, 2025, to May 31, 2026, we expect to be in the range of $5,145.3 million to $5,390.3 million, representing a year-over-year increase in the range of 5% to 10%.

我們預計，2026財年第一季（2025年6月1日至2025年8月31日）包括East Buy在內的集團總淨收入將在14.641億美元至15.072億美元之間，年增2%至5%。至於包括 East Buy 在內的集團 2026 年全年（2025 年 6 月 1 日至 2026 年 5 月 31 日）的總淨收入，我們預計在 51.453 億美元至 53.903 億美元之間，同比增長 5% 至 10%。

You may notice that our fiscal year '26 Q1 guidance looks relatively conservative. This is primarily because the group has now entered a more stable and sustainable phase, and we are comparing against a high base of the last year Q1, unlike two years ago, when we were still undergoing major transformation. Moreover, East Buy's restructuring has not yet taken place in fiscal year '25 Q1 either.

您可能會注意到，我們對 26 財年第一季的預測看起來相對保守。這主要是因為集團現在已經進入了一個更穩定和可持續的階段，而且我們與去年第一季的高基數進行比較，而不像兩年前我們還在經歷重大轉型。此外，East Buy 的重組在 25 財年第一季也尚未進行。

Additionally, the earlier timing of the Chinese New Year this year led to temporary class rescheduling, which boosted the revenue recognition in the second half of fiscal year 2025, but will reduce revenue recognition in fiscal year '26 Q1. As a result, we expect the year-over-year revenue growth will accelerate since the second quarter and throughout the rest of the year. Hence, as I mentioned earlier, I would encourage all of you to focus on our annual guidance.

此外，今年農曆新年提前，導致課程臨時調整，這增加了 2025 財年下半年的收入確認，但將減少 2026 財年第一季的收入確認。因此，我們預計自第二季起以及今年剩餘時間內，營收年增率將會加速。因此，正如我之前提到的，我鼓勵大家關注我們的年度指導。

Before ending this quarter's earnings summary, I would like to announce that the Board approved a three-year shareholder return plan yesterday, effective from fiscal year 2026, as a gesture of appreciation for our shareholders unwavering support. Under this plan, no less than 50% of the company's net income attributable to New Oriental for the preceding fiscal year will be allocated to returning value to shareholders through dividend distributions and/or share repurchases.

在結束本季度收益摘要之前，我想宣布，董事會昨天批准了一項三年期股東回報計劃，該計劃自 2026 財年起生效，以感謝股東的堅定支持。根據該計劃，公司上一財年歸屬於新東方的淨利潤中，將有不少於50%用於透過分紅和/或股票回購的方式向股東回報。

For fiscal year 2026, the Board will determine the implementation of the plan based on the net income attributable to New Oriental for the fiscal year ended May 31, 2025, in due course.

對於2026財年，董事會將根據截至2025年5月31日止財年歸屬於新東方的淨利潤適時決定該計劃的實施方案。

Now to conclude, New Oriental remain committed to delivering premium offerings for our customers while pursuing sustainable growth and profitability and sharing the fruits of our success with our shareholders. We're also in close collaboration with the government authorities, in various provinces and the province in China, ensuring compliance with the relevant policies, guidelines and the related implementations and adjusting our business operation as required.

總而言之，新東方將繼續致力於為客戶提供優質服務，同時追求永續成長和獲利，並與股東分享成功的成果。我們也與中國各省份的政府部門密切合作，確保遵守相關政策、指導方針和相關實施，並根據需要調整我們的業務運作。

This is the end of our fiscal year 2025 Q4 summary. At this point, I would like to open the floor for questions. Operator, please open the call for these. Thank you.

這是我們 2025 財年第四季總結的結尾。現在，我想開始回答大家的提問。接線員，請接通這些電話。謝謝。

(Operator Instructions) Felix Liu, UBS.

（操作員指示）Felix Liu，瑞銀。

My question is on your Q1 and FY26 guidance. We noticed that Q4 EDU New Oriental core business actually grew pretty fast. But as you mentioned, there was a seasonal slowdown in Q1. Can I just ask for more breakdown of your Q1 as well as full year guidance. What are the drags on the business that led to this slowdown? And do you mind to share about the drivers for the recovery in growth in -- after Q1?

我的問題是關於您的第一季和 26 財年的指導。我們注意到Q4新東方EDU核心業務其實成長得相當快。但正如您所說，第一季出現了季節性放緩。我能否請您提供有關第一季以及全年指導的更多細節？哪些因素拖累了業務，導致了這種放緩？您介意分享一下第一季之後經濟復甦的驅動因素嗎？

Okay. Thank you, Felix. Yeah, as for the Q1 guidance and the whole year guidance of fiscal year '26. In the coming Q1, we give the guidance of the revenue growth will be in the range of 2% to 5%. I must mention, firstly, that we're using the conservative method to give the guidance.

好的。謝謝你，菲利克斯。是的，至於 26 財年第一季指引和全年指引。在即將到來的第一季度，我們預計營收成長將在 2% 至 5% 之間。首先我必須提到，我們正在使用保守的方法來提供指導。

And there were some following reasons: Number one, to some extent, I think our business adversely affected by the economic environment and the international relations changes. So in the coming Q1, we are comparing it against a high base last year in Q1 both for the core educational business and the East Buy.

原因如下：第一，我認為我們的業務在某種程度上受到了經濟環境和國際關係變化的不利影響。因此，在即將到來的第一季度，我們將與去年第一季的核心教育業務和東方購買的高基數進行比較。

And number two, as for the K-12 business, we have a cutoff issue because this year's Chinese New Year was earlier than '24. So that means in the second half of fiscal year '25, we had more revenue. And the result is that in the coming Q1, we have less revenue. So this is a cutoff issue.

第二，對於 K-12 業務，我們有一個截止問題，因為今年的農曆新年比 24 年早。這意味著在 25 財年下半年，我們的收入會更多。結果是，在接下來的第一季度，我們的收入將會減少。所以這是一個截止問題。

But as we expect, the K-12 revenue growth will be accelerated in the coming Q2 and the rest of the year in Q3 and Q4, because based on our current, as mentioned, the forecast for the whole year and the cash we collect already for the Q2 courses. So that's why that I said, we expect the revenue acceleration since Q2 for the K-12 business.

但正如我們預期的那樣，K-12 收入成長將在即將到來的第二季以及今年剩餘時間的第三季和第四季加速，因為根據我們目前提到的全年預測以及我們已經為第二季課程收集的現金。所以這就是我說的，我們預計 K-12 業務的收入將從第二季開始加速成長。

And the last reason is last year Q1, East Buy restructuring has not yet taken place in Q1. So we will have a hard comparison for East Buy in the coming Q1. But since Q2, it will be better. And yeah, this time, since this quarter, we start to give the whole year guidance. We give the guidance of the 5% to 10% year-over-year growth for the whole group. And it shows that the revenue growth acceleration since Q2.

最後一個原因是去年Q1，東方匯理重組還沒發生。因此，我們將對即將到來的第一季的東方百事進行一次艱難的比較。但從第二季開始，情況會好轉。是的，從本季開始，我們開始提供全年指導。我們預計整個集團的年成長率為 5% 至 10%。這顯示自第二季以來收入成長加速。

And breakdown of the different business lines. I think the overseas-related business, will be negatively impacted by the economic environment and international situations change. So we expect the revenue will be down by roughly 4% ,5%.

以及不同業務線的細分。我認為海外相關業務，會受到經濟環境和國際情勢變化的負面影響。因此我們預計收入將下降約 4% 至 5%。

And the K-12 business, I think the K-9 business, for the Q1, the revenue growth will be somewhere around 15%, 16% year-over-year but we do expect the whole year revenue growth of the K-9 business will be somewhere around 20%. High school business, Q1 and the whole year will be around -- year-over-year growth will be around 11% to 12% or even a little bit more. And the college business, the growth rate will be 10% in the Q1 and the coming new year.

我認為 K-12 業務和 K-9 業務第一季的營收成長率將在 15% 到 16% 左右，但我們預計 K-9 業務全年營收成長率將在 20% 左右。高中業務，第一季和全年的年成長率將在 11% 到 12% 左右，甚至更高。而大學業務，第一季和明年的成長率將達到10%。

Lucy Yu, Bank of America.

美國銀行的 Lucy Yu。

I have actually a follow-up question on the guidance that you just gave. What is the major difference that you have been revised this quarter versus last quarter when you gave the guidance for FY26? So what has changed in terms of line of business.

我實際上對您剛才給出的指導有一個後續問題。當您給出 26 財年的指導意見時，本季與上個季度相比有何主要修改？那麼就業務線而言發生了什麼變化呢？

And secondly, just to clarify on the shareholder return program. Is it based on reported net income or non-GAAP net income?

其次，澄清一下股東回報計畫。它是基於報告的淨收入還是非 GAAP 淨收入？

Second question answer first. The capital allocation for the next three years is calculated based on the net income, the GAAP net income attributable to New Oriental. And I think, yeah, this time, we changed the guidance from the non-East Buy to the whole group, including the East Buy. Because East Buy started to restructure the business since last year in Q1. So in the past quarters, I think the management of the East Buy fixed the operations.

先回答第二個問題。未來三年的資本配置是根據淨利潤，即歸屬於新東方的GAAP淨利潤來計算的。我認為，是的，這一次，我們將指導範圍從非東部採購改為整個集團，包括東部採購。因為東百從去年第一季開始進行業務重組。因此，在過去的幾個季度中，我認為東方採購的管理層已經修復了營運。

And East Buy is still -- we will control East Buy. So I think it's a good time for us to give the guidance of the whole group, including the East Buy. And I think going forward, we will give the guidance for the whole group, including the East Buy. Lucy?

而 East Buy 仍然——我們將控制 East Buy。所以我認為現在是我們為整個團體（包括東買）提供指導的好時機。我認為，展望未來，我們將為整個集團（包括東部採購）提供指導。露西？

One more follow-up. So the guidance revenue growth is all in US dollars or renminbi?

再一次跟進。那麼指導收入成長全部以美元還是人民幣計算？

Dollars, in dollars.

美元，以美元計算。

And you are using currency rates?

您使用貨幣匯率嗎？

Yeah, we're using the current -- the exchange rate in the first 45 to 50 days of this quarter. .

是的，我們使用的是當前匯率——本季前 45 到 50 天的匯率。。

Yikun Zheng, CITIC.

鄭毅坤，中信。

Question is about the deceleration of our revenue. So what is the main reason for our revenue deterioration, especially for the non-academic business? So is it because of the competition or it's just our own adjustment? And if we like looking long-term exactly in the next three years, how do we think of our growth rate in the next three years?

問題是關於我們收入的減速。那麼，我們的收入下降的主要原因是什麼，特別是非學術業務的收入下降？那麼是因為競爭還是我們自己的調整呢？如果我們著眼於未來三年的長期發展，我們如何看待未來三年的成長率？

I think the revenue slowdown is mainly due to the economic environment and the international relationship change because we have seen some Chinese parents, some of them don't want to send their kids to study abroad in the future. So it will negatively impact our -- the overseas related business.

我認為收入放緩主要是由於經濟環境和國際關係的變化，因為我們看到一些中國父母，其中一些父母不想將來送孩子出國留學。因此，這將對我們的海外相關業務產生負面影響。

And as for the competition in K-12 field, I think the competition is a little bit stronger than that of the last year. But I think it's okay. If you compare the competition level now with a couple of years ago before the policy, it's much less.

至於K-12領域的競爭，我認為今年的競爭比去年激烈一些。但我覺得沒關係。如果將現在的競爭水平與政策實施前幾年的競爭水平進行比較，就會發現競爭水平低得多。

And so I think the market is still huge, especially for the K-9 non-academic courses of the business. So we still guide the K-9 business growth by 20% in the coming year. I think during this macroeconomic situation, I think it's still good.

因此我認為市場仍然巨大，尤其是對於 K-9 非學術課程。因此我們仍預期來年K-9業務將成長20%。我認為在這種宏觀經濟形勢下，我認為它仍然是好的。

And going forward, -- and yeah, the Q1 is a little bit weak. But based on our current estimation, I think the Q2 and Q3, Q4 will be better. And in the longer term, I still think the K-12 business will be the key growth driver of the whole group.

展望未來，是的，第一季有點弱。但根據我們目前的估計，我認為第二季和第三季、第四季會更好。從長遠來看，我仍然認為K-12業務將成為整個集團的主要成長動力。

Yes. Can I have a follow-up question? Is that because if -- you look at the revenue growth before the policy, maybe our K-12 revenue growth rate can be over 20%? Well, but for now, maybe it's just like around 15%. So if you look at it in the next few years, will the growth rate for K-12 business like going up to the over 20% or just around like 10% to 20%?

是的。我可以問一個後續問題嗎？這是因為，如果——看看政策實施前的收入成長，也許我們的 K-12 收入成長率可以超過 20%？嗯，但目前，可能只有 15% 左右。那麼，如果你展望未來幾年，K-12 業務的成長率會上升到 20% 以上還是僅僅在 10% 到 20% 左右？

I think the K-9 business, we do believe we can get the revenue growth by 20%. It will still be very good. And the high school business, because we got the all-time high in last fiscal year. So we have a high base. So going forward, I think the revenue growth will be somewhere around 10% to 15% going forward.

我認為，對於 K-9 業務，我們確實有信心實現 20% 的營收成長。它仍然會非常好。還有高中業務，因為我們在上個財政年度創下了歷史新高。因此我們的基數很高。因此展望未來，我認為營收成長將在 10% 到 15% 左右。

Alice Cai, Citibank.

花旗銀行的 Alice Cai。

I have two questions. And first one is on the margin trend. How should we think about the operating margin trend for FY26? For the core education business and also the whole business because since that we started to provide guidance for the whole business, right?

我有兩個問題。第一個是關於利潤趨勢。我們該如何看待26財年的營業利益率趨勢？對於核心教育業務以及整個業務，因為從那時起我們就開始為整個業務提供指導，對嗎？

And my second question is on the goodwill impairment. And can you please give us some more color on this? Why was the goodwill associated with kindergarten business to begin with? And will the company continue to dive that or feel bad, noncore business and also like cultural tourism?

我的第二個問題是關於商譽減損。您能否提供我們更多詳細資訊？為什麼商譽一開始就與幼兒園業務連結在一起？公司會繼續深耕非核心業務，或對文化旅遊感到失望？

Okay. Thank you, Alex, for your margin question. Let us start with this quarter's margin analysis. In the Q4, in this quarter, we got the 410 basis point margin expansion. I think the margin expansion even for the Q4 and the whole year fiscal year '25 was mainly due to the operating leverage and the efficiency enhancement and the cost control.

好的。謝謝 Alex 提出的保證金問題。讓我們從本季的利潤率分析開始。在第四季度，也就是本季度，我們的利潤率擴大了 410 個基點。我認為第四季和25財年全年的利潤率擴張主要歸功於營運槓桿、效率提升和成本控制。

As you know, we started to do the cost control since March this year, and we have seen the good result, which helps to drive the margin up. And I do believe the cost control will help the margin profile in the coming year, in the Q1 and the whole year, fiscal year '26. As we look at the margin of the Q1, we remain optimistic about the margin profile in Q1, even though we're facing some revenue slowing down. But we still expect the margin expansion in the coming Q1.

大家知道，我們從今年三月開始進行成本控制，並且已經看到了良好的效果，這有助於提高利潤率。我確實相信成本控制將有助於明年第一季以及全年（26財年）的利潤率。當我們查看第一季的利潤率時，儘管我們面臨一些收入放緩的問題，但我們仍然對第一季的利潤率狀況持樂觀態度。但我們仍然預計第一季利潤率將會擴大。

And the whole year margin, I think it's a little bit early to make a forecast of the new year margin. But we are doing the cost control. We care more, we focus more about the profitability than the revenue growth. And so I think, we will strive to achieve the margin profile, the healthy margin profile in the whole year of the fiscal year '26.

至於全年利潤率，我認為現在預測新年利潤率還為時過早。但我們正在進行成本控制。我們更關心、更關注獲利能力而不是收入成長。因此我認為，我們將努力在 26 財年全年實現健康的利潤率。

And so let me summarize. Revenue is a little bit slowing down, and we care more about the bottom line, and we will do more cost control and care more about the efficiency enhancements and the more operating leverage to drive the margin up in the coming quarter and the new year.

讓我總結一下。營收成長有點放緩，我們更關心底線，我們將進行更多的成本控制，更加關注效率的提高和更多的營運槓桿，以在下一季和新的一年提高利潤率。

Your second question is about the goodwill impairment of the kindergarten. We acquired the -- some kindergarten so many years ago, roughly 8, 10 years ago. And because of some reasons, the policy and the newborns decrease. So I think we discussed with the auditors, and we think the goodwill impairment should be down at this time. So we did the impairment loss of $60 million in this quarter, but it's all, it's one time.

您的第二個問題是關於幼兒園商譽減損的問題。我們在很多年前就收購了這家幼兒園，大約 8 到 10 年前。但因種種原因，政策實施後，新生兒數量減少。所以我認為我們已經與審計師進行了討論，我們認為商譽減損此時應該會下降。因此，我們在本季提列了 6000 萬美元的減損損失，但這只是一次性的。

May I have a follow-up question. I would like to know more about the cultural tourism. Is there any plan to scale back the business?

我可以問一個後續問題嗎？我想了解更多有關文化旅遊的資訊。有沒有縮減業務的計劃？

What? Can you repeat again? Can you repeat?

什麼？你能再說一次嗎？你能重複一遍嗎？

Yes, is there any plan to scale back the cultural tourism?

是的，有沒有縮減文化旅遊的計畫？

Tourism business. Yeah, we started with the tourism business 1.5 years ago. And the revenue growth in the last fiscal year, fiscal year '25, which extremely high. And most of the business, the tourism business are related to the summer camp study tour, both domestic and internationally. And -- but going forward, I think we still need time to build the business model of the tourism. And I think the revenue growth of the tourism business will be slowed down in the new year. And anyway, as a new business, we need more time to fix the business model of the tourism business.

旅遊業務。是的，我們一年半前就開始從事旅遊業務了。上一財年，即 25 財年的營收成長非常高。而大部分的業務，旅遊業務都和國內、國外的夏令營遊學有關。但展望未來，我認為我們仍然需要時間來建立旅遊商業模式。而且我認為新的一年旅遊業務的收入成長將會放緩。而且無論如何，作為一家新企業，我們需要更多時間來完善旅遊業務的商業模式。

Timothy Zhao, Goldman Sachs.

高盛的趙蒂莫西。

I think my question is regarding the profitability and the margin outlook. I think, one, is regarding the 4.1-percentage-point margin increase for the core business for the past quarter. Just wondering if you can help quantify the impact from the cost control measures that you have done since March? And going forward into the new year, like how much room do you have for the cost control.

我認為我的問題是關於獲利能力和利潤前景。我認為，第一，是關於上個季度核心業務利潤率成長了4.1個百分點。只是想知道您是否可以幫助量化自三月以來採取的成本控制措施的影響？展望新的一年，您在成本控制方面還有多少空間？

And secondly, also on the model-related questions, on the capacity expansion. I was just wondering, I think for the May quarter, how many new learning centers were newly opened and what is your learning plan center or the capacity expansion plan into fiscal year '26?

其次，關於模型相關的問題，關於產能擴張的問題。我只是想知道，我認為在 5 月季度，新開設了多少個學習中心，以及您的學習計畫中心或 26 財年的產能擴張計畫是什麼？

The margins, yeah, the Q4, we got the margin expansion by 410 basis points up. And it's really hard for us to justify how much from the cost control. But anyway, it's a good result, the cost control and seek to the high operating leverage.

利潤率，是的，第四季度，我們的利潤率擴大了 410 個基點。我們確實很難從成本控制的角度來證明這一點。但無論如何，這是一個很好的結果，成本控制並尋求高營運槓桿。

And going forward, even in the Q1, coming Q1 and the new year, I think the cost control will help us to drive the margin up. And roughly, as the cost control will give us the -- let's say, the 100 to 150 basis point margin up.

展望未來，即使在第一季、即將到來的第一季和新年，我認為成本控制將有助於我們提高利潤率。大致來說，成本控制將為我們帶來——比如說，100 到 150 個基點的利潤成長。

So this is roughly estimation. And your second question is about the expansion, right?

這是粗略的估計。你的第二個問題是關於擴張的，對嗎？

Yeah.

是的。

Yes. See, I think in the Q4, the net at -- this 9%, is 8% to 9% the learning centers. And going forward, in the coming new year, I think our plan is to monitor the capacity expansion to ensure alignment of revenue growth. So I think as the whole group, we will control the learning center expansion compared to the revenue growth. So we do hope we can have the leverage from the high utilization rate of the new learning centers.

是的。你看，我認為在第四季度，淨額——這個 9%，是學習中心的 8% 到 9%。展望未來，在新的一年裡，我認為我們的計劃是監控產能擴張，以確保收入成長的一致性。因此我認為，作為整個集團，我們將控制學習中心的擴張與收入成長。因此，我們確實希望能夠利用新學習中心的高使用率。

So roughly, we -- originally, we plan to open 10% to 15% of the new learning centers. It depends on the revenue growth. And the -- and typically, we set up new learning centers, new learning centers in the second half of the year. So it's backloaded. And so I think we have one or two quarters to wait to decide how many learning centers we set up in the second half of the year to prepare for the new year.

大致來說，我們——最初，我們計劃開設 10% 到 15% 的新學習中心。這取決於收入成長。通常，我們會在下半年建立新的學習中心。所以它是後載的。因此，我認為我們還需要等待一兩個季度才能決定在下半年設立多少個學習中心，為新的一年做準備。

And so -- and I must mention that we only allow the cities with the best -- with the better top line growth and good margins to allow them to open the learning centers, especially for the K-12 business.

因此，我必須提到，我們只允許那些擁有最佳收入成長和良好利潤率的城市開設學習中心，特別是針對 K-12 業務。

(Operator Instructions) DS Kim, JP Morgan.

（操作員指示） DS Kim，JP Morgan。

I just have a few follow-ups from the previous comment, if that's okay. So you earlier mentioned the margin could go up in the first quarter. Were you referring to the group level or core educational only? That's the first follow-up to all our point.

如果可以的話，我只是對之前的評論進行一些跟進。所以您之前提到第一季利潤率可能會上升。您指的是團體層面還是核心教育？這是對我們所有觀點的第一次跟進。

And second, can I just double check, when you say cost control can give us about like 100, 150 bps of margin expansion, is it regarding first quarter or full year? Just as a follow-up. And I have one more question.

其次，我可以再確認一下嗎？您說成本控制可以使我們的利潤率擴大 100 到 150 個基點，是指第一季還是全年？只是作為後續行動。我還有一個問題。

For the full year, the cost control. And yeah, I said because we go back to give the guidance for the whole group. So the margin analysis guidance is for the group. So what I'm saying is the whole group margin expansion will happen in Q1.

就全年而言，成本控制。是的，我說因為我們回去為整個團隊提供指導。因此利潤率分析指導是針對集團的。所以我的意思是整個集團利潤率的擴大將在第一季發生。

Got it. And again, this is a follow-up, but I did a very rough calculation based on the numbers that you gave us to break down. And I think we are essentially guiding core education, excluding East Buy to grow about 11% in fiscal '26 versus -- I think last quarter, you mentioned 14%, 15% growth. Am I right about this? Or can you comment on education on the apple-to-apple guidance versus last quarter? Just want to double check

知道了。再次強調，這是一個後續問題，但我根據您提供的數字進行了非常粗略的計算。我認為我們基本上是在引導核心教育（不包括 East Buy）在 26 財年增長約 11%，而上個季度你提到的增長率是 14% 或 15%。我這樣說對嗎？或者您能否評論一下與上一季相比，蘋果對蘋果指導的教育情況？只是想再確認一下

The fiscal year '26, right?

是 26 財年吧？

'26, yes, sir. '26, sir.

“26，是的，先生。”“26，先生。”

Yeah, no. It seems to be a little bit lower than we gave the guidance last quarter. Because as I said, the overseas related business where we -- I think, it will negatively impact by the macroeconomy and the international relationship change. And so we revised the guidance of the fiscal year '26. I think the overseas related business will be down by, let's say, the 5% -- 4% or 5% year-over-year.

是的，不。這似乎比我們上個季度給出的預期要低一點。因為正如我所說，我認為我們的海外相關業務將受到宏觀經濟和國際關係變化的負面影響。因此我們修改了 26 財年的指導方針。我認為海外相關業務將年減 5% - 4% 或 5%。

This is for the whole year. So this is a new change --.

這是全年的。所以這是一個新的變化--.

So I think that's probably in place 11%, 12%, if you have the number. If not, that's totally fine. And final question is in terms of the buyback and dividend. Can you give us a little bit of color on how you're thinking about between the two? Like is it going to be dependent on the level of share prices? Or do you have certain pockets within that 50% in mind or a dividend at least this much? Any qualitative color would be appreciated. And that's it.

所以我認為這個比例大概是 11%、12%，如果你有數字的話。如果沒有的話，那就完全沒問題。最後一個問題是關於回購和股利。您能否向我們稍微解釋一下您對這兩者的看法？例如它是否取決於股價水準？或者您是否考慮過在這 50% 之內的特定資金池，或者至少有這麼多的股息？任何定性的顏色都會受到讚賞。就是這樣。

I think first of all, we finished $700 million share buyback in this quarter, in Q4. And also, we paid $100 million special dividend in last year. In this fiscal year, last year, September. And so we had a Board meeting yesterday.

我認為首先，我們在本季度，即第四季度完成了 7 億美元的股票回購。此外，我們去年支付了 1 億美元的特別股利。本財年，也就是去年九月。因此我們昨天召開了董事會。

And I'm happy to see the Board approve the new capital allocation program, not only for this year, but also for the next three years from fiscal year '26 to fiscal year '28, so which amounted to be, let's say, the 50% of the net GAAP net income.

我很高興看到董事會批准了新的資本配置計劃，不僅針對今年，還針對從 26 財年到 28 財年的未來三年，也就是說，相當於淨 GAAP 淨收入的 50%。

And now we haven't yet decided the dividend or the share buyback. I think, I will discuss with the Board, even Michael, to make a decision to justify either the dividend or share buybacks or both. But one more information. I think we still need the auditors to give us the final audit report of the fiscal year '25. And I think we will file the 20F at the end of -- roughly at the end of the September.

現在我們還沒有決定派發股息或回購股票。我想，我會與董事會，甚至邁克爾進行討論，以決定是否發放股息或回購股票，或者兩者兼而有之。但還有一條訊息。我認為我們仍然需要審計師向我們提供 25 財年的最終審計報告。我認為我們將在大約九月底提交 20F。

So by then, I think we will decide how much amount to do the capital allocation anyways.

所以到那時，我想我們無論如何都會決定進行多少資本配置。

Yes. And if I just make a comment, not a question. I think many or most investors may prefer dividend rather than buyback, because dividend seems a little more visible and sustainable. So please, please consider, and especially if it is a regular dividend, not the form of special that we did pre-COVID. So just a two cents from me.

是的。如果我只是發表評論，而不是提問。我認為許多或大多數投資者可能更喜歡股息而不是回購，因為股息似乎更明顯且更可持續。因此，請考慮一下，特別是如果這是定期股息，而不是我們在 COVID 之前所做的特殊形式。這只是我的一點看法。

Thank you for your advisor.

感謝您的顧問。

Charlotte Wei, HSBC.

Charlotte Wei，匯豐銀行。

I have a question regarding the non-academic enrollment. So I noticed that this quarter's enrollment growth slowed down quite meaningfully. Can I understand -- could you please provide some color on the reasons? And also, can you share with us the summer enrollment growth for the K-9 non-academic tutoring? And how does it compare to the industry growth trends?

我對非學術入學有疑問。所以我注意到本季的入學人數成長明顯放緩。我可以理解嗎—您能否詳細說明一下原因？另外，您能與我們分享一下 K-9 非學術輔導的暑期入學人數成長嗎？與產業成長趨勢相比如何？

Yeah. As I said, there is some seasonality impact as I said, because of the early Chinese New Year and some revenues were reported in Q3 and Q4 last year. And so it will negatively impact the Q1 revenue and enrollment. And yes, Q1 is a low -- seems to be low. But I think based on our numbers, the cash and the student enrollment, we have already got from customers for the Q2 courses.

是的。正如我所說，由於中國新年來得早，去年第三季和第四季報告了一些收入，因此存在一些季節性影響。因此，這將對第一季的收入和入學人數產生負面影響。是的，Q1 很低——看起來很低。但我認為，根據我們的數字、現金和學生入學情況，我們已經從客戶那裡獲得了第二季課程的費用。

I think the numbers is higher than the Q1. So that's why, as I said, we expect the revenue growth will be accelerated in the Q2, since Q2. And that's why we gave the guidance of the whole year higher than the Q1.

我認為這個數字高於第一季。正如我所說，這就是為什麼我們預計第二季的營收成長將加速。這就是我們給出的全年業績預期高於第一季業績預期的原因。

And the industry growth. Sorry, I don't have idea about the whole industry growth. And it's really hard for me to make a comparison between us and the other competitors. And yeah.

以及產業成長。抱歉，我不了解整個產業的發展。我真的很難將我們與其他競爭對手進行比較。是的。

Elsie Sheng, CLSA.

Elsie Sheng，里昂證券。

So my question is about the summer. So we are now in the summer. So I would like to see if you have any color on the summer student recruitment, for example, like the new student enrollment growth and also like retention rate? And do you observe any changes on the demand side?

我的問題是關於夏天的。現在我們已經進入夏天了。所以我想看看您對暑期招生情況有什麼了解嗎，例如新生入學人數的增長以及保留率？您是否觀察到需求方面有什麼改變？

The demand is a little bit less than we expected compared to one quarter ago, because of the whole -- the economic situation. But the -- but you saw it, but I think it's still good for the K-12 business, even for the industry. And I do believe the whole industry will still grow. And I think we're still taking the market share. And yes, as I said, I think in Q2, the revenue growth will be accelerated again.

由於整體經濟形勢，與一個季度前相比，需求比我們預期的要少一些。但是 — — 但你看到了，但我認為這對 K-12 業務甚至整個行業來說仍然是有利的。我確實相信整個行業仍會成長。我認為我們仍然佔據市場份額。是的，正如我所說，我認為第二季營收成長將再次加速。

And so yeah, and the student enrollment number in the summer. We haven't finished the enrollment window for the summer. So I think in next quarter's earnings call, I will share with you the number, share with you the number enrollment for the whole summer.

是的，還有夏季的學生入學人數。我們還沒有結束夏季的招生。所以我想在下個季度的財報電話會議上，我會與你們分享這個數字，與你們分享整個夏季的入學人數。

Okay. About the retention rate?

好的。關於保留率？

The retention is still going up. Hopefully, the whole -- the K-9 business and high school business is still going up.

保留率仍在上升。希望整體——K-9 業務和高中業務仍在上升。

We are now approaching the end of the conference call. I will now turn the call over to New Oriental's Executive President and CFO, Stephen Yang, for his closing remarks.

我們現在即將結束電話會議。現在，我將把電話轉給新東方執行總裁兼財務長楊志飛，請他致閉幕詞。

Again, thank you for joining us today. If you have any further questions, please do not hesitate to contact me or any of our Investor Relations representatives. Thank you.

再次感謝您今天加入我們。如果您有任何其他問題，請隨時與我或我們的任何投資者關係代表聯繫。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。