New Oriental Education & Technology Group Inc (EDU) 2026 Q1 法說會逐字稿

Good evening and thank you for standing by for New Oriental's FY 2026 first-quarter results earnings conference call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.

晚上好，感謝各位耐心等待參加新東方2026財年第一季業績電話會議。（操作說明）今天的會議正在錄音。如果您有任何異議，可以立即斷開連接。

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

接下來，我將把會議交給今天會議的主持人趙思思女士。

Thank you. Hello, everyone, and welcome to the first fiscal 2026 earnings conference call. Our financial results for the period were released earlier today and available on the company's website, as well as on Newswire services.

謝謝。大家好，歡迎參加2026財年第一次財報電話會議。我們已於今日早些時候發布了該期間的財務業績，相關資訊可在公司網站以及新聞專線服務上查閱。

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，我將與新東方執行總裁兼財務長楊先生一起，詳細向大家介紹新東方最新的盈利結果和業務進展。之後，我和史蒂芬將回答您的問題。

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安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，我們的結果可能與今天表達的觀點有重大差異。我們在向美國證券交易委員會提交的公開文件中列出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，除非適用法律另有規定。

As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on your end posted at the Investor Relations website at investor.neworiental.org.

再次提醒，本次會議正在錄影。此外，本次電話會議的網路直播將在投資者關係網站 investor.neworiental.org 上發布，供您觀看。

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

現在我先把電話轉給楊先生。史蒂芬，請繼續。

Thank you, Sisi. Hello, everyone, and thank you for joining us on the call. Before diving into the details of our first quarter results, I would like to share that after periods of testing and trialing various business models and offerings, we're formulating the right strategy and direction for New Oriental. We're pleased to see that the company has now entered a stable growth trajectory.

謝謝你，茜茜公主。大家好，感謝各位參加本次電話會議。在深入探討我們第一季業績的細節之前，我想分享一下，經過一段時間對各種商業模式和產品的測試和試驗，我們正在為新東方制定正確的策略和方向。我們很高興看到該公司現在已經進入穩定的成長軌道。

This quarter, we recorded an encouraging set of results that exceeded our expectations, mainly driven by our strong capabilities, in enhancing operational resilience and sustainable profitability. This quarter's total net revenue have increased by 6.1% year-over-year. Bottom line-wise, we are delighted to see that our efforts to manage cost and streamline efficiency has yielded tangible success, with non-GAAP operating margin reaching 22% this quarter, representing a year-over-year improvement of 100 basis points.

本季度，我們取得了一系列令人鼓舞的業績，超越了我們的預期，這主要得益於我們在增強營運韌性和可持續獲利能力方面的強大能力。本季總淨收入年增 6.1%。總而言之，我們很高興地看到，我們在控製成本和提高效率方面的努力取得了切實的成功，本季度非GAAP營業利潤率達到22%，比上年同期提高了100個基點。

Our key remaining business remains solid, while our new initiatives have continuously demonstrated positive momentum. Breaking it down. For the first fiscal quarter of 2026, overseas test prep business recorded the revenue increase of about 1% year-over-year. Oversea study consulting business recorded the revenue increase of about 2% year-over-year. Our adults and university students business recorded the revenue increase of 14% year-over-year.

我們的核心業務依然穩健，而我們的新措施也持續展現出正面的發展動能。分解分析。2026財年第一季度，海外考試輔導業務的營收年增約1%。海外留學諮詢業務的營收年增約 2%。我們的成人及大學生業務收入較去年同期成長 14%。

At the same time, our continued investments in new educational business initiatives, primarily centered on facilitating students’ all-round development, have delivered consistent progress furthering driving the company's overall momentum. Firstly, the non-academic tutor business, which focus on cultivating students' innovative ability and comprehensive qualities has now been rolled out to around 60 existing cities. Market penetration has grown steadily, particularly across high tier cities. The top 10 cities contribute over 60% of this business.

同時，我們持續投資於新的教育業務舉措，主要以促進學生的全面發展為中心，取得了持續的進展，進一步推動了公司的整體發展勢頭。首先，專注於培養學生創新能力和綜合素質的非學術輔導業務目前已推廣到約 60 個現有城市。市場滲透率穩定成長，尤其是在一線城市。排名前十的城市貢獻了該業務的 60% 以上。

Secondly, the intelligent learning system and device business, which utilize 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 encouraged by the improved customer retention and scalability of this new initiatives. The top 10 cities contributed over 50% of this business. In summary, our new educational business initiatives recorded the revenue increase of about 15% year-over-year for the first quarter of 2026.

其次，我們利用以往的教學經驗數據和技術，提供個人化和有針對性的學習和練習內容，以提高學生學習效率的智慧學習系統和設備業務，已經在約 60 個現有城市進行了測試。我們對這項新措施在提高客戶留存率和可擴展性方面所取得的成效感到鼓舞。排名前十的城市貢獻了超過 50% 的業務量。總而言之，我們的新教育業務計劃在 2026 年第一季實現了約 15% 的年增長。

Moving to the integrated tourism-related business line and breaking it down. Both domestic and international study tours and research camp for K-12 and the university students were connected across 55 cities nationwide. With the top 10 cities contributed over 50% of our revenue. In parallel, we provided a series of premium tourism offerings, primarily designed for middle-aged and senior audiences across 30 featured provinces in China and internationally.

轉而分析綜合旅遊相關業務線及其細分。中小學生和大學生的國內和國際遊學旅行及研究營活動涵蓋全國 55 個城市。前 10 個城市貢獻了我們 50% 以上的收入。同時，我們推出了一系列高端旅遊產品，主要針對中國及國際上 30 個特色省份的中老年遊客。

Our product range has also been expanded to now include Cultural Travel, China Study Tour, Global Study Tour, and Camp Education. With regards to our OMO system, our efforts in developing and revamping our online merging offline teaching platform continued. These efforts aim to deliver more advanced and diversified educational services for customers of all ages. A total of $28.5 million have been invested during the quarter to upgrade and maintain our OMO teaching platform.

我們的產品範圍也已擴大，現在包括文化旅遊、中國遊學、全球遊學和夏令營教育。關於我們的線上線下融合教學系統，我們繼續努力開發和改進我們的線上線下融合教學平台。這些措施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 2,850 萬美元用於升級和維護我們的 OMO 教學平台。

Beyond OMO, we continue to focus on our venture in AI. Our newly launched AI-powered intelligent learning device and smart study solution marks significant steps of our ongoing pursuits to transform education through technology. Encouraged by the positive market feedback, we have been and will continue to refine and embed AI across our offerings to strengthen New Oriental's core capabilities.

除了 OMO 之外，我們將繼續專注於我們在人工智慧領域的投資。我們新推出的AI智能學習設備和智慧學習解決方案標誌著我們在透過科技變革教育的持續努力中邁出了重要一步。受到市場積極回饋的鼓舞，我們一直在並將繼續改進人工智慧技術，並將其融入我們的產品和服務中，以增強新東方的核心競爭力。

Simultaneously, we're also leveraging AI to streamline internal operations, thereby boosting efficiency and providing enhanced support of our teaching staffs. As the industry leader, we're dedicated to driving long-term revenue growth through dual focus on product innovation and operational efficiency. In the upcoming quarters, we look forward to sharing tangible results and positive highlights on performance that are backed by our investments in AI.

同時，我們也在利用人工智慧來簡化內部運營，從而提高效率，並為我們的教學人員提供更好的支援。作為行業領導者，我們致力於透過產品創新和營運效率的雙重關注，推動長期收入成長。在接下來的幾個季度裡，我們期待分享在人工智慧領域投資所帶來的實際成果和正面的業績亮點。

Now, with regards to the East Buy's performance. In fiscal year 2026, East Buy strategically invested in its private label portfolio, centered around a promise to deliver products that are healthy, high-quality, and good value for money. As we enrich East Buy product categories, our blockbuster offerings, namely the nutritious food product line has particularly stood out. We have strengthened our capability through rigorous end-to-end quality management, from sourcing to after sale service, which resulted in greater market recognition for our private label products.

現在，我們來談談東部採購的表現。在 2026 財年，East Buy 對其自有品牌產品組合進行了策略性投資，其核心理念是提供健康、優質、物有所值的產品。隨著我們不斷豐富 East Buy 的產品類別，我們的重磅產品，特別是營養食品系列，尤其脫穎而出。我們透過嚴格的端到端品質管理，從採購到售後服務，增強了自身能力，從而使我們的自有品牌產品獲得了更高的市場認可度。

During the reporting period, East Buy further advance its East Buy app and membership platform, connecting our loyal customer base to premier products and services. As the business to continue to evolve steadily, East Buy has intensified its focus on improving operational efficiency and profitability metrics to align closely with the Group's corporate strategies.

在報告期間內，East Buy 進一步推進了其 East Buy 應用程式和會員平台，將我們忠實的客戶群與一流的產品和服務聯繫起來。隨著業務的持續穩定發展，東購更加重視提高營運效率和獲利能力指標，以與集團的企業策略緊密結合。

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

現在，我將把電話交給 Sisi，讓她為大家介紹我們的主要財務數據。茜茜，請繼續。

Thank you, Stephen. Now I'd like to share our key financial details for this quarter. Operating cost and expenses for the quarter were $1,212.2 million, representing a 6.1% increase year-over-year. Cost of revenues increased by 9.3% year-over-year to $637.8 million. Selling and marketing expenses increased by 3.6% year-over-year to $200.6 million. G&A expenses increased by 2.4% year-over-year to $373.8 million. Total share base compensation expenses which were allocated to related operating costs and expenses increased by 239.8% to $23.3 million in the first of fiscal quarter of 2026.

謝謝你，史蒂芬。現在我想和大家分享本季的主要財務細節。本季營運成本和費用為 12.122 億美元，年增 6.1%。營業成本年增 9.3%，達到 6.378 億美元。銷售和行銷費用年增 3.6%，達到 2.006 億美元。一般及行政費用年增 2.4%，達到 3.738 億美元。2026 財年第一季度，分配至相關營運成本和費用的總股份基礎補償支出增加了 239.8%，達到 2,330 萬美元。

Operating income was $310.8 million representing a 6% increase year-over-year. Non-GAAP operating income, excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, was $335.5 million representing 11.3% increase year-over-year.

營業收入為 3.108 億美元，年增 6%。不計入股份支付費用及因業務收購而產生的無形資產攤銷，非GAAP營業收入為3.355億美元，較去年同期成長11.3%。

Net income attributable to the New Oriental for the quarter was $240.7 million representing a 1.9% decrease year-over-year. Basic and diluted net income per ADS attributable to New Oriental were $1.52 and $1.5 respectively. Non-GAAP net income attributable to New Oriental for the quarter was $258.3 million representing a 1.6% decrease year-over-year. Non-GAAP, basic and diluted net income per ADS attributable to New Oriental were $1.63 and $1.61 respectively. Net cash flow generated from operation for the first of fiscal quarter of 2026 was approximately $192.3 million and capital expenditure for the quarter or $55.4 million.

新東方本季淨利為 2.407 億美元，年減 1.9%。新東方每股美國存託憑證基本淨收益和稀釋淨收益分別為1.52美元和1.5美元。新東方本季歸屬於非GAAP的淨利為2.583億美元，年減1.6%。新東方公司以非GAAP準則計算的基本和稀釋後每股ADS淨收益分別為1.63美元和1.61美元。2026 財年第一季經營活動產生的淨現金流約為 1.923 億美元，該季度資本支出為 5,540 萬美元。

Turning to the balance sheet. As of August 31, 2025, New Oriental had cash and cash equivalents of $1,282.3 million. $1,570.2 million in term deposit and $2,178.1 million in short-term investment. New Oriental's deferred revenue, which represents cash collected upfronts from customers and related revenue that will be recognized as the service or goods were delivered at the end of the first of fiscal quarter of 2026 was $1,906.7 million an increase of 10% as compared to $1,733.1 million at the end of the first fiscal quarter of 2025

接下來看一下資產負債表。截至2025年8月31日，新東方持有現金及現金等價物12.823億美元，定期存款15.702億美元，短期投資21.781億美元。新東方截至2026財年第一季末的遞延收入（指已從客戶處預收的現金以及將在提供服務或商品時確認的相關收入）為19.067億美元，較2025財年第一季末的17.331億美元增長10%。

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

現在，我將把發言權交給史蒂芬，讓他來介紹我們的展望、指導方針以及新的股東回報計劃。

Thank you, Sisi. Following a strong start to the fiscal year, we're optimistic about further improving our margins and operational efficiency while staying committed to effective cost control and sustainable profitability across our business. As part of these efforts, we're taking a thoughtful and strategic approach to capacity extension and hiring, ensuring that we continue to grow without compromising the quality of our offerings.

謝謝你，茜茜公主。在本財年開局強勁之後，我們對進一步提高利潤率和營運效率充滿信心，同時將繼續致力於有效控製成本，並在整個業務範圍內實現可持續盈利能力。作為這些努力的一部分，我們正在採取深思熟慮和策略性的方法進行產能擴張和招聘，以確保我們在不降低產品和服務品質的前提下繼續發展壯大。

We plan to increase our presence in cities with stronger top-line and bottom-line performance last year, while carefully managing resources. Rest assured, we will closely monitor the pace and scale of new openings, aligning them with local operational needs and the financial results throughout the year.

我們計劃在去年營收和利潤表現較強勁的城市加大投入，同時謹慎管理資源。請放心，我們將密切關注新店開幕的速度和規模，使其與當地的營運需求和全年的財務業績保持一致。

Guidance-wise, we expect total net revenue for the Group, including East Buy, in the second quarter of the fiscal year 2026, September 1, 2025, to November 30, 2025, to be in the range of $1,132.1 million to $1,163.3 million representing year-over-year increase in the range of 9% to 12%.

就業績指引而言，我們預期集團（包括 East Buy）在 2026 財年第二季（2025 年 9 月 1 日至 2025 年 11 月 30 日）的總淨收入將在 11.321 億美元至 11.633 億美元之間，年增 9% 至 12%。

In the second quarter, we projected a notable acceleration of revenue growth in K-12 business driven by our enhanced service quality, which has led to steady year-on-year and quarter-on-quarter improvements in student retention rates. As for the full fiscal year 2026, we're very confident that our previously provided guidance of total net revenue for the Group, also including East Buy, to be in the range of $5,145.3 million to $5,390.3 million will be realized, representing a year-over-year increase in range of 5% to 10%.

第二季度，我們預計 K-12 業務的收入成長將顯著加快，這主要得益於我們不斷提高的服務質量，從而導致學生留存率逐年和逐季穩步提高。至於 2026 財年，我們非常有信心，先前給出的集團總淨收入（包括 East Buy）在 51.453 億美元至 53.903 億美元之間的預期將會實現，同比增長 5% 至 10%。

As part of our appreciation for our shareholders unwavering support, we today announce that the shareholder return plan for the fiscal year 2026 has begun. The Board of Directors has approved an ordinary cash dividend and new share repurchase program. Regarding the ordinary share dividend, the ordinary cash dividends of $0.12 per common share, or $1.2 per ADS will be paid in two installments with an aggregate amount of approximately $190 million.

為了感謝股東們一如既往的支持，我們今天宣布 2026 財政年度股東回報計畫已經啟動。董事會已批准一項普通現金股利和一項新的股票回購計畫。關於普通股股息，每股普通股現金股息為 0.12 美元，或每股美國存託股份 (ADS) 現金股息為 1.2 美元，將分兩期支付，總額約為 1.9 億美元。

The first installment with $0.06 per common shares or $0.6 per ADS will be paid to holders of common shares or ADS of recorded as of the close of business on November 18, 2025, Beijing and Hong Kong time, and New York time, respectively.

第一期款項將支付給截至 2025 年 11 月 18 日北京時間、香港時間、紐約時間營業結束時登記在冊的普通股或美國存託憑證持有人，每股普通股支付 0.06 美元，每股美國存託憑證支付 0.6 美元。

The second installment, $0.06 per common shares or $0.6 per ADS. It's expected to be paid around six months after the payment date of the first installment to holders of common shares and the ADS of the recorded date to be further determined by the Board of Directors. Details of the second installment will be announced in due course.

第二期，每股普通股0.06美元，或每股美國存託股份0.6美元。預計在向普通股股東和美國存託股份持有人支付第一期款項後約六個月支付，具體時間由董事會進一步決定。第二期詳情將擇日公佈。

Regarding the share repurchase program, pursuant to the new share repurchase program, the company may repurchase up to $300 million of ADS or common shares from open market over the next 12 months. To conclude, New Oriental remains committed to our trajectory of sustainable growth, delivering premium offerings to our customers and sharing the fruits of our success with our shareholders.

關於股票回購計劃，根據新的股票回購計劃，公司可在未來 12 個月內從公開市場回購最多 3 億美元的美國存託憑證或普通股。總之，新東方將繼續致力於永續發展，為顧客提供優質產品和服務，並與股東分享成功成果。

We're also in close collaboration with the government authorities in various provinces and municipality in China, ensuring compliance with the relevant policies, guidelines, and any related implementation, regulations, measures and adjusting our business operation as required.

我們也與中國各省市政府部門密切合作，確保遵守相關政策、指導方針和任何相關的實施細則、法規、措施，並根據需要調整我們的業務運作。

This is the end of our fiscal year 2026 Q1 summary. At this point, I would like to open the floor for questions. Operator, please open the call for this. Thank you.

這是我們2026財年第一季總結的全部內容。現在，我想請大家提問。接線員，請接通此通話。謝謝。

(Operator Instructions)

（操作說明）

Felix Liu, UBS.

瑞銀集團的劉菲利克斯。

Hi, good evening, management. Thank you for taking my question. I'm glad to hear that you mentioned or expected notable acceleration in your K-12 business in the upcoming quarter. I know previously, there are market concerns over increased competition especially over the summer. So could management elaborate on how's the latest competition landscape in K-12 that you're feeling at the moment. What are the -- have you made any adjustments to your strategy and what is a reasonable level of sustainable growth for your K-12 business in the mid to long-term. Thank you.

各位領導晚上好。感謝您回答我的問題。我很高興聽到您提到或預計您的 K-12 業務在下一季將顯著成長。我知道之前市場對競爭加劇感到擔憂，尤其是在夏季。那麼，管理階層能否詳細說明您目前對K-12教育領域競爭格局的感受？你們的戰略是否有調整？對你們的 K-12 業務而言，中長期內合理的永續成長水準是多少？謝謝。

Thank you, Felix. First of all, I'm very happy to see the revenue growth acceleration in our K-12 business since Q2. As you know, started in Q1 and for the, even for the whole year, I think our target is to enhance our quality of product and service in K-12 business. And I think since Q2, we will see a good result.

謝謝你，菲利克斯。首先，我很高興地看到自第二季以來，我們K-12業務的營收成長加速。如您所知，從第一季開始，我認為我們全年的目標是提高我們在 K-12 業務中的產品和服務品質。我認為從第二季開始，我們會看到好的結果。

I think the better quality drives the student retention rate up after the summer. So that means more and more students, choose -- chose our Q2 course. And also, the better word of mouth attracts new student enrollment of our autumn classes. Yeah, as we meet some competition pressure in the summer because of the -- some competitors were using the low price or even the free course strategy. But now, we are happy to see students came back to New Oriental to enroll our class in autumn. So that's why we raised the guidance of the K-12 business.

我認為更高的教學品質能夠提高暑假後的學生留校率。所以這意味著越來越多的學生選擇—選擇我們的Q2課程。此外，良好的口碑也有助於吸引更多學生報名參加我們的秋季課程。是的，因為到了夏天，我們面臨一些競爭壓力，一些競爭對手採用了低價甚至免費課程的策略。但現在，我們很高興看到學生們回到新東方，報名參加我們秋天的課程。所以這就是我們提高K-12業務指導方針的原因。

So let's divide the K-12 business one-by-one. And so we expect the K-9 new business revenue growth will be around 20% year-over-year growth in Q2. And for the high school business, I think in the Q2, the growth rate will return to double-digit growth. So I think you see the revenue acceleration since Q2.

那麼，讓我們逐一分析K-12教育事業。因此，我們預計第二季 K-9 新業務營收將年增 20% 左右。至於高中商業，我認為第二季成長率將恢復到兩位數成長。所以我認為你可以看到自第二季以來營收加速成長。

And so, I think the high student retention rate and the better word of mouth will drive the revenue growth acceleration. And I think -- I believe the revenue growth acceleration will continuously since Q2 and throughout the year.

因此，我認為較高的學生留存率和良好的口碑將推動收入成長加速。而且我認為——我相信從第二季開始，營收成長加速的趨勢將持續到全年。

So for -- yeah, I -- so for the whole year, 2026, I think the K-9 business will be your real growth will be over 20%. And for the high school, like the double-digit growth. So I think our strategy is correct because the student's retention rates, both for the primary school students and middle school students and high school students, all business lines the student retention rate is getting higher year-over-year.

所以——是的，我——所以我認為在整個 2026 年，K-9 業務的真正成長將超過 20%。而對於高中來說，成長率達到了兩位數。所以我認為我們的策略是正確的，因為無論是小學生、國中生或高中生，所有業務線的學生留存率都在逐年提高。

Alice Cai, Citibank.

蔡愛玲，花旗銀行。

Please go ahead, Alice.

請繼續，愛麗絲。

Good evening, Stephen. I have two questions. Quick question first on SBC. It jumped a lot to $23 million. This was (inaudible) wondering what job is increasing what's the outlook can (inaudible)

晚上好，史蒂芬。我有兩個問題。首先快速問一個關於SBC的問題。金額大幅上漲至 2,300 萬美元。這是（聽不清楚）想知道哪些工作正在增加，前景如何。（聽不清楚）

Yeah. I think, Alice, your question is about the SBC, the share-based compensation. I think that in the second half of the last fiscal year, we issue, we grant the ADS shares to the management and the staff and teachers in the next to three year.

是的。我認為，Alice，你的問題是關於SBC，也就是基於股份的薪酬。我認為，在上一個財政年度的下半年，我們將在未來兩到三年內向管理階層、員工和教師發行並授予美國存託股份。

So it dragged the SBC up, and yeah. So the number of the SBC in this quarter, is bigger than that of last year. And yeah, but then --

所以它把SBC拉了上去，是的。因此，本季 SBC 的數量比去年同期要多。是的，但是後來--

Yeah, you can roughly estimate, going forward every quarter, the SBC expenses will be similar with this quarters and at this kind of level, yeah, for the coming several quarters.

是的，你可以大致估計，未來每季的 SBC 支出都將與本季類似，並且在未來幾季內保持在這樣的水平。

Yeah. But, I think typically the first year we record more SBC expenses more in first year and then last in second and third year.

是的。但我認為通常情況下，第一年我們記錄的 SBC 支出較多，第二年和第三年則較少。

Thanks so much

非常感謝

Lucy Yu, Bank of America Securities.

Lucy Yu，美國銀行證券。

Stephen, I have a question on overseas. It looks like overseas has been stronger than your earlier expectation. Could you please break down the (inaudible) test prep growth by age. And also, the consulting growth break down by segment. How should we think about the overseas sustainability growth, and will that impact your guidance for the full year? Thank you.

史蒂芬，我有一個關於海外的問題。海外市場表現似乎比你之前預期的還要好。請您按年齡細分一下（聽不清楚）考試準備的增長。此外，諮詢業務成長按細分市場進行了細分。我們該如何看待海外永續發展成長？這是否會影響您對全年的業績預期？謝謝。

Yeah, as for the overseas business, as you know, we're adversely affected by the external environments. Last quarter, we guided in Q1 the revenue of the overseas relate business will be down by 5%. But in Q1, I think, overseas test drives still grew by 1%. Overseas consulting business grew by 2%. I think we will strive to minimize the negative impact.

是的，至於海外業務，如您所知，我們很容易受到外部環境的不利影響。上個季度，我們預測第一季海外相關業務的營收將下降 5%。但我認為，第一季海外試駕量仍增加了 1%。海外諮詢業務成長了2%。我認為我們會努力將負面影響降到最低。

And so in the Q2, we still guide the overseas related business. So it will be done by a low single-digit in Q2, which we still usually conservative method to make this forecast. And I think, yeah, the negative impact from the like the international relationship, even the outside environment changes a lot. But I think we will strive to minimize the impact. And so we do expect we can beat our guidance because we do the guidance in Q2 even for the whole year more conservatively.

因此，在第二季度，我們仍然指導海外相關業務。因此，第二季的增幅預計會是較低的個位數，這仍然是我們通常採用的保守預測方法。是的，我認為，國際關係，甚至外在環境的變化，都會產生負面影響。但我認為我們會努力將影響降到最低。因此，我們預計能夠超越預期，因為我們在第二季甚至全年的業績預期中都更加保守。

Stephen, just to follow-up, so for example, your test prep is positive. So by age group like the younger -- like younger age, mid-high school and like college students. Which one of them is, better than expected? And also, for the consulting business, I believe that 60% is a lot, it's pure consulting and the other 40% is like background raising. So which part of that is better than expected?

Stephen，我再跟進一下，例如，你的考試準備情況是正面的。依年齡層劃分，例如低齡組、高中中學生組和大學生組。他們之中誰的表現超乎預期？而且，就諮詢業務而言，我認為 60% 的比例相當高，那是純粹的諮詢，而另外 40% 則像是背景培訓。那麼，哪一部分比預期好呢？

Within the overseas test prep, the younger aged students school, the business of that part of grow very fast, even more than 25% year-over-year. So that's why in the makeup of the, like the adults or even the college students, business staff, and within the oversea consulting business, I think the non-US and UK business, especially for the Asian country consulting business, and the background improving the business, still go very fast.

在海外考試補習領域，針對低齡學生的學校，這部分業務成長非常快，甚至每年成長超過 25%。所以這就是為什麼在組成中，例如成年人甚至大學生、企業員工，以及海外諮詢業務，我認為非美國和英國的業務，特別是亞洲國家的諮詢業務，以及提升業務背景，仍然發展得非常迅速。

So as a whole, I think the oversea test prep and consultant business, we will still give the guidance of the like the 4% or 5% down year-over-year, but I believe we will do better than we -- our guidance.

所以總的來說，我認為海外考試輔導和諮詢業務，我們仍然會給出同比下降 4% 或 5% 的預期，但我相信我們會做得比預期更好。

Okay. Thank you so much, Stephen

好的。非常感謝你，史蒂芬

DS Kim, JP Morgan.

DS Kim，摩根大通。

Hi, Stephen. Hi, Sisi. Good evening and thanks for taking my question. I actually wanted to ask, why is the your price is down 6%, 7% pre-market, but I guess that's a question for the market, not you. I actually have a question, regarding shareholder return policies if that's okay. How shall we think about the policy going forward. Say, is this based on your projected or budgeted in net profit and payout ratio, or is it more based on our expectation on cash flows and whatnot?

你好，史蒂芬。你好，茜茜。晚上好，感謝您回答我的問題。我其實想問的是，為什麼你們的股價在盤前下跌了 6%、7%，但我想這應該是市場的問題，而不是你們的問題。如果可以的話，我其實有個關於股東回報政策的問題。我們該如何看待未來的政策？請問，這是基於你們預測或預算的淨利和派息率，還是更多地基於我們對現金流等方面的預期？

The reason why I'm asking is, if I use my own estimated, GAAP EPS, what you announced is roughly about 100% payout, say like 40% payout for the dividend and 60% for buyback based on my GAAP net profit or EPS. Is that what we should think about going forward, i.e., like we could pay regularly over 50% as you guided, but more like 100% payout going forward based on this earnings and payout or shall we treat the buyback as a one-off, only for current year because of the stock price is low, and we only need -- we can only expect 50% going forward. Can you walk us through how we can think about the payout ratio or shareholder return going forward.

我問這個問題的原因是，如果我使用我自己估計的 GAAP 每股收益，那麼你宣布的方案大約是 100% 的派息，比如說 40% 用於分紅，60% 用於股票回購（基於我的 GAAP 淨利潤或每股收益）。我們接下來該考慮的是這樣嗎？也就是說，我們可以像您指導的那樣定期支付超過 50% 的款項，但更傾向於根據目前的收益和派息情況，未來支付 100% 的款項，還是應該將股票回購視為一次性的，僅限於今年，因為股價低迷，我們只需要——我們只能預期未來支付 50% 的款項？您能否為我們詳細解說一下，今後我們該如何考慮派息率或股東回報？

Thank you, DS. it's a good question. I think, last quarter our Board approved three-year shareholder return plan. And this -- we announced earlier today, we paid $190 million dividends, which might be 50% of net profits we generate last year, and combined with a $300 million the new share buyback program. So let's do the math. We -- I think the payout ratio this year is over 130% if you compare the capital allocation with the net profits we made last year. And the dividends plus the share buyback yield is over 5%.

謝謝你，DS，問得好。我認為，上個季度我們的董事會批准了一項為期三年的股東回報計畫。還有一點——我們今天早些時候宣布，我們支付了 1.9 億美元的股息，這可能相當於我們去年淨利潤的 50%，再加上 3 億美元的新股票回購計畫。那麼，就讓我們來算算帳。我認為，如果將資本配置與我們去年獲得的淨利潤進行比較，今年的派息率將超過 130%。股息加上股票回購收益率超過 5%。

So I think the -- going forward next year, the -- I think the dividend we will pay because it -- I think it's a regular dividend. And the $300 million share buyback we announced this year, it's not one-time. I think, next year, I think I will discuss with the Board and to push the Board to approve a new capital allocation program. And I think we will keep the high level of the payout ratio and yield.

所以我認為——展望明年——我認為我們將支付的股息，因為——我認為這將是一筆常規股息。我們今年宣布的 3 億美元股票回購計畫並非一次性的。我認為，明年我會與董事會討論並推動董事會批准一項新的資本分配計劃。我認為我們將保持較高的派息率和收益率。

And because -- think about that, we meet some pressure of slowing down the top-line. And -- but we can still like – get it like the 10% or plus top line growth and generates higher margin. And also, we are piling up the cash. So that's why the Board support our management to pay more capital allocation to investors. And I think the investors deserve to get more money, the capital allocation from the company. And so we announced the three years shareholder return plan. So I think in the next year, we will pay more.

而且因為——想想看——我們面臨著降低營收成長速度的壓力。而且－但我們仍然可以像âf一樣獲得10%或以上的營收成長，並產生更高的利潤率。而且，我們還在不斷累積現金。所以，這就是為什麼董事會支持管理階層向投資者支付更多資本的原因。我認為投資者理應獲得更多資金，也就是公司應該分配的資本。因此，我們宣布了為期三年的股東回報計畫。所以我認為明年我們會支付更多費用。

Thank you, sir. Finally, a follow-up just on that part, the just to clarify, when I said 100%, that was based on fiscal year '26, [my] EPS because the wording of the announcement say, this is a dividend for fiscal year 2026. But based on what you say, shall we, going forward, expect that like what you announced is actually coming out of fiscal year '25 earnings and what you're going to announce next year will be coming out of fiscal '26? So will there be one year delay and is that how we should think about or -- I guess it's so flexible but just wanted to get your result.

謝謝您，先生。最後，關於那部分，我想補充一點，澄清一下，當我說 100% 時，那是基於 2026 財年的每股收益，因為公告的措辭是，這是 2026 財年的股息。但根據你所說，我們是否可以預期，你宣布的內容實際上來自 2025 財年的收益，而你明年將要宣布的內容則來自 2026 財年？所以會有一年的延期嗎？我們應該這樣考慮嗎？ ——我覺得情況很靈活，但我只是想得到你的答案。

I think this is our internal policy because we make the calculation based on the last year net profit. So we -- last quarter, we announced that we pay no less than 50%. But finally, we paid about 130%. And next year, I think we will calculate based on the net profit we made in physical year 2026 and we'll do the same.

我認為這是我們的內部政策，因為我們是根據上一年的淨利潤進行計算的。所以，上個季度我們宣布，我們支付的薪水不低於 50%。但最終，我們支付了大約 130%。明年，我認為我們將根據 2026 年的淨利潤進行計算，並採取相同的做法。

Thank you, sir. I think that's actually much, much better than what I had expected. So I am again wondering why stocks down [6] not off [6] but anyway, let's see how it goes and thank you so much, sir.

謝謝您，先生。我覺得這比我預想的要好得多。所以我再次想知道為什麼股票下跌[6]而不是下跌[6]，但無論如何，讓我們看看情況如何，非常感謝您，先生。

Yikun Zheng, CITIC

鄭毅坤，中信證券

Good evening, management. Thank you for taking my questions and congratulations on the strong results. My question is regarding the operating margin. Since the operating margin in Q1 is quite good, I'm not sure if it was mainly due to the cost reduction plan or some other reasons. And how can we expect the contribution of the cost reduction plan for the next season or for the full year, and how do we expect the operating margin for the full year? Thank you.

晚上好，各位領導。感謝您回答我的問題，並祝賀您取得優異的成績。我的問題是關於營業利潤率的。由於第一季的營業利潤率相當不錯，我不確定這主要是由於成本削減計劃還是其他原因造成的。那麼，我們如何預期成本削減計畫對下一季或全年的貢獻？我們如何預期全年的營業利益率？謝謝。

A good question about margin. let us start at the margin analysis in Q1, this quarter. Even though we meet some margin pressure from the slowdown of the overseas-related business, but it will still get a group margin expansion by 100 base point in Q1. And I think margin expansion was mainly driven by the better utilization, operating leverage and the cost control, and the profit contribution from East Buy.

關於利潤率，這是一個很好的問題。讓我們先從本季（第一季）的利潤率分析開始。儘管海外相關業務放緩給我們帶來了一定的利潤率壓力，但第一季集團利潤率仍將成長 100 個基點。我認為利潤率的提升主要得益於更高的利用率、營運槓桿和成本控制，以及來自東部地區的利潤貢獻。

As you know, we started to do the cost control since March last fiscal year, this year, March, and we have seen the good result. And I think it will help the margin expansion in the rest of the year, this fiscal year. And we look ahead into the Q2 margin guidance. I think we are quite optimistic about the margin expansion for the whole Group in Q2. And so that means the core business, and the East Buy business, both of the business, the margin will pick up in Q2. And I believe the margin expansion in Q2 will be greater than that of Q1.

如您所知，我們從上個財政年度的3月份，也就是今年的3月份開始進行成本控制，並且已經看到了良好的效果。我認為這將有助於本財年剩餘時間內利潤率的提升。接下來，我們將展望第二季利潤率預期。我認為我們對集團第二季的利潤率擴張相當樂觀。因此，核心業務和東部採購業務的利潤率將在第二季上升。而且我相信第二季的利潤率擴張幅度將大於第一季。

And as for the marginal outlook for the whole year, I think, the whole Group Are focusing on the profitability, across all business lines. We are doing the cost control for in all business lines. So we do hope we can get the margin expansion for the whole year for the Group

至於全年的邊際前景，我認為整個集團都專注於提高所有業務線的獲利能力。我們正在對所有業務線進行成本控制。因此，我們希望集團全年都能實現利潤率成長。

Thank you, Stephen

謝謝你，史蒂芬

Elsie Sheng, CLSA.

Elsie Sheng，CLSA。

Hi, Stephen, Sisi, thank you. And congratulations on the very good result. I have a quick question on the tax rates, because I noticed that the tax rate in the first quarter is higher. So could you let us -- so what should we look at the tax rate in the next quarter and also for the full year.

嗨，Stephen，Sisi，謝謝你們。恭喜你取得了非常好的成績。我有一個關於稅率的問題，因為我注意到第一季的稅率較高。那麼，您能否告訴我們—我們應該關注下一季的稅率以及全年的稅率？

Q1, I think the situation is special because even the -- since the second half of the last year and the Q1, we paid dividend from the WFOE to ListCo And so, we need to pay the withholding tax to the tax bureau. So it drive the ETR up in Q1. So, it was 27%. And not typically we paid 25% of the ETR.

Q1，我認為情況比較特殊，因為從去年下半年到今年第一季度，我們向上市公司支付了外商獨資企業的股息，因此我們需要向稅務局繳納預扣稅。所以它推高了第一季的ETR。所以，是27%。而且我們通常不會支付 ETR 的 25%。

And going forward, I think we probably we will do more, pay more dividends, from WFOE to ListCo So I think in this year, the ETR will be higher than that of last year were normal. I think the reason is that you saw -- we announced the earlier today with the capital allocation to investors the roughly $490 million as the Capital allocation total. So we need more dollars and yeah, that's why it drives the ETR up.

展望未來，我認為我們可能會增加分紅，從外商獨資企業到上市公司。所以我認為今年的ETR（有效股息率）會高於去年的水平，這是正常的。我認為原因正如你所看到的——我們今天早些時候宣布，向投資者分配的資本總額約為 4.9 億美元。所以我們需要更多資金，是的，這就是導致 ETR 上升的原因。

Okay. I understand, it's very clear. Thank you.

好的。我明白了，非常清楚。謝謝。

(Operator Instructions)

（操作說明）

Timothy Zhao, Goldman Sachs.

Timothy Zhao，高盛集團。

Hi, Stephen. Hi, Sisi. Thank you for taking my question. My question is regarding the K-9 new initiatives. When I look at the enrollment growth for this quarter. I still notice a pretty big gap between the non-academic tutoring, and the intelligent learning system and devices. Just wondering, can we use that gap to model the revenue growth gap between these two segments for the first quarter or the second quarter, and we think that this gap may sustain, I think, going forward, even I think for the intelligence learning system I think is very good business. It's probably also marginal credit to you. Thank you.

你好，史蒂芬。你好，茜茜。感謝您回答我的問題。我的問題是關於警犬新舉措的。當我查看本季的入學人數成長時。我仍然注意到非學術輔導與智慧學習系統和設備之間存在相當大的差距。我只是想知道，我們能否利用這個差距來模擬這兩個業務板塊在第一季或第二季的收入成長差距，我們認為這個差距可能會持續下去，我認為，即使對於智慧學習系統來說，這也是一項非常好的業務。這可能也只能帶給你微弱的信用。謝謝。

I think the growth rates, the revenue growth of the junior high school business, it's a little bit faster than the primary school business because first of all, it's a little bit low base than the kids business. And secondly, we spend a lot of the efforts and the resources in the last three to four years to open a new business of the middle school business. And I think, the whole team contribute a lot of the -- provide a better product to the customers and the students love the new product. That's why the revenue growth is better.

我認為初中業務的成長率和收入成長率比小學業務略高，因為首先，國中業務的基數比小學業務要低一些。其次，在過去的3到4年裡，我們投入了大量的精力和資源來開辦中學教育這項新業務。我認為，整個團隊都為此做出了巨大貢獻——為客戶提供更好的產品，學生們也喜歡新產品。這就是為什麼營收成長更好的原因。

And so going forward, I think we believe the revenue growth of the middle school business will be a little bit higher than we expected. But as a whole, the K-9 new business, grow the -- you saw our guidance of Q2 and even for the whole year. I think, yeah, definitely, it's the revenue acceleration is coming. And so, as I said, in Q2 the K-9 business is roughly 20% top-line growth. And we do hope we can do better in the second half of the year.

因此，展望未來，我們認為中學業務的收入成長將比我們預期的要高一些。但總體而言，K-9 新業務的成長——你們已經看到了我們對第二季乃至全年的業績預期。我認為，是的，營收加速成長的時代即將到來。因此，正如我所說，第二季 K-9 業務的營收成長約為 20%。我們希望下半年能做得更好。

Understood.Thank you, Stephen.

明白了。謝謝你，史蒂芬。

Thank you. We are now approaching the end the conference call.

謝謝。電話會議即將結束。

I'll now turn the call over to New Oriental's Executive President and CFO, Stephen Yang for his closing remarks.

現在我將把電話交給新東方執行總裁兼財務長楊先生，請他作總結發言。

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 Relation representatives. Thank you.

再次感謝您今天蒞臨。如果您還有其他疑問，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 your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路了。