New Oriental Education & Technology Group, Inc.

Good evening and thank you for standing by for New Rantals FY 2025 Fourth Quarter Results Earnings Conference call. At this time all participants are in listen only mode. After management's prepared remarks there will be a question and answer session. Today's conference is being recorded. If you have any objections you may now disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao. Thank

you. Hello everyone and welcome to New Rantals Fourth fiscal quarter 2025 earnings conference call. Our financial results for the period released earlier today and are available on the company's website as well as our newsware services. Today Stephen Young, executive president and chief financial officer and I will share New Rantals latest earnings results and business updates in detail with you. After that Stephen and I will be available to answer your questions. Before we continue please note that the discussion today will contain for looking statements made under the safe harbor provisions of the US private security litigation reform act of 1995. For 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 for looking statements except as required under applicable law. 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 .neworiental.org. I'll now first turn the call over to Mr. Young. Stephen please go ahead.

Thank you. Hello everyone and thank you for joining us on the call. The start 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. This quarter's total net revenue excluding revenues generated from east buy private label product and the living live streaming business increased by .7% -over-year mainly contributed by the continued expansion of our new ventures. Bottom line wise we're delighted to see that our efforts to reduce costs and improve efficiency have proven effective with non-gap operating margin again excluding operating margin generates from east buy reached .5% this quarter representing a -over-year improvement of 410 basis points. Our key remaining business remains solid while our new initiatives have also shown positive momentum. Breaking it down for the fourth quarter of 2025 overseas test prep business recorded the revenue increase of 15% -over-year. Overseas studies consulting business recorded revenue increase of about 8% -over-year. Our adults and university students business recorded the revenue increase of 17% -over-year. 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. Firstly the non-adamant 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. Secondly the intelligent learning system and device business which utilizes our past teaching experience data and technology to provide personalized and target 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 recorded the revenue increase of 33% -over-year for the fourth quarter of 2025. Moving to our integrates tourism related business line which includes study tour, research camp business for students of K-12 and university students and tours targeting middle-aged and senior audience recorded the revenue increase of about 71% -over-year for the fourth physical quarter of 2025. Breaking down both domestic and international study tours and 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. We also provided a series of premium tourism offerings primarily designed to middle-aged and senior audience across 30 featured provinces in China and internationally. Our product China study tour, global study tour and camp education. 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 industries. These efforts aim to deliver more advanced and diversified education services to customers of all ages. A total of $28 million have been invested during the quarter to upgrade and maintain our OMO teaching platform. Beyond OMO I would like to take this opportunity to highlight our investment in AI and how we integrate it into our teaching ecosystem. Leveraging a combination of open source large models such as DeepSeq and GPT along with our self-developed AI technologies we have developed new innovative education solutions for our students. Recently we launched the two new products. First a new generation of AI powered intelligent learning devices. These products feature deep AI integration and equipped K-MAS students with multifunctional tools including spoken language coaching, automated essay grading, dictation exercises, classical text recitation and voice assessment functionality. All designed to enhance learning outcomes while saving the time for teachers, students and parents. Second a new AI driven smart study solution. This product combines premium content from global sources. Our very own accumulates the teaching and researching experience in 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. We will continue investing in AI to drive future innovation. Not only does AI help enhance our offerings but also improves the internal efficiency. We have launched an AI content creation platform and student performance feedback application with help support lesson planning and strengthen homeschool communication. These tools also provide valuable insights into learning habits and user engagement. Additionally an AI powered FAQ databases has been created built from our -to-day sales conversations which has significantly reduced training costs for our sales team and improved sales efficiency and conversion rates. Now I would like to take a moment to talk about EastBuy. As I know many of you are interested in it. In the physical year 2025, EastBuy continued to invest in its private label product strategy centered around green, healthy and quality, 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, EastBuy's private label products have become household stables, gaining greater market recognition. During the reporting period, EastBuy further advanced its multi-channel strategy and implemented enhancements with EastBuy app and EastBuy mini store. All of which have provided users which improved the experience. As the business continues to develop steadily, EastBuy has placed greater emphasis on improving operational efficiency and profitability levels to align with the group's overall strategy. Now I would like to take this opportunity to talk about our share repurchase actions. As of May 31st, 2025, the company repurchased and aggregated approximately $14.5 million ADS for approximately $700 million from the open market. Now I will turn the call over to Cici to share with you about the key financials. Cici, please go ahead.