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.

Thank you, Stephen. Now I'd like to share our key financial details for this quarter. Operating cost expenses for the quarter were ,251.8 million, representing an .2% increase year over year. Cost of revenues increased by .1% year over year to $569.9 million. Selling and marketing expenses increased by .8% year over year to $211.9 million. G&A expenses increased by .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 expenses, increased by 11% to $28.6 million in the first 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. Non-GAM operating income, excluding share-based compensation expenses, amortization of intangible assets resulting from the business acquisitions, and impairment of goodwill assigned to the reporting unit of business, was $81.7 million, representing a .3% increase year over year. Net income, attributable to NeurIENTAL for the quarter, was $7.1 million, representing a .7% decrease year over year. Basic and diluted net income per ADS, attributable to NeurIENTAL, were $0.04 and $0.04, respectively. Non-GAM net income, attributable to NeurIENTAL for the quarter, was $98.1 million, representing a .4% increase year over year. Non-GAM basic and diluted net income per ADS, attributable to NeurIENTAL, were $0.62 and $0.61, respectively. Net cash flow generated from operation for the fourth fiscal quarter of 2025 was approximately $399.1 million, and capital expenditure for the quarter was $65.9 million. Turning to the balance sheet, as of May 31, 2025, NeurIENTAL had cash and cash equivalents of ,612.4 million, ,447.8 million in term deposit, and ,873.5 million in short-term investment. NeurIENTAL'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 $1954.5 million, an increase of .8% as compared to ,780.1 million at the end of the fourth quarter of fiscal year 2024. Now I'll hand over to Stephen to go through our outlook, guidance, and our new shareholder return plan.

Thank you, Sisi. As we look ahead for fiscal year 26, 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. 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're 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. We expect total net revenue for the group, including eased by in the first quarter of fiscal year 2026, June 1st 2025 to be in the range of ,464.1 million to ,507.2 million, representing an -over-year increase in the range of 2% to 5%. As for the total net revenue for the group, also including eased by for the full year 2026, June 1st 2025 to May 31st of 2026, we expect to be in the range of ,145.3 million to ,390.3 million, representing a -over-year increase in the range of 5% to 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're comparing against a high base of the last year Q1. Unlike two years ago, when we were still undergoing major transformation. Moreover, eased by restructuring has not yet taken place in fiscal year 25 Q1 either. Additionally, the earlier timing of the Chinese new year this year led to temporary class rescheduling, which boosted the revenue recognition in second half of fiscal year 2025, but will reduce revenue recognition in fiscal year 26 Q1. As a result, we expect the -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. Before ending this quarter's earnings summary, I would like to announce that the board approved the three-year shareholder return plan yesterday, effective from fiscal year 2026, as a gesture of appreciation for our shareholders and wavering support. Under this plan, no less than 50% of the company's net income attributable to new rental for the preceding fiscal year will be allocated to returning value to shareholders through dividend distributions and or share repurchase. For fiscal year 26, the board will determine the implementation of the plan based on the net income attributable to new rental for the fiscal year ended in May 31st, 2025 in due course. Now, to conclude, new rental remain committed to delivering premium offerings for our customers who are 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 in the province in China, issuing compliance with the relevant policies, guidelines, and the related instrumentations. And adjusting our business operations as required. 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.

Thank you. The question and answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask a question, we will take one question at a time from each caller. If you have more than one question, please request to rejoin the queue again after your first question has been addressed. To ask a question, please press star 1 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please do same and press star 1 1 again. Please stand by as you compile the Q&A roster. Just a moment for our first question. First question comes from a line of Felix Lu from UFS. Your line is now open.

Good evening. Thank you, Benjamin, for taking my question. My question is on your Q1 and FY26 guidance. We noticed that Q4 in the New Oriental Core business actually grew pretty fast. But as you mentioned, there was a seasonal slowdown in Q1. May I just ask for more breakdown of your Q1 as well as for your guidance? What are the drags on the business that led to this slowdown? And can you share about the drivers for the recovery in growth after Q1? Thank you.

Okay. Thank you, Felix. As for the Q1 guidance, and the whole year guidance of FY26, in the coming Q1, we give the guidance of the growth will be in the range of 2% to 5%. I must mention firstly that we're using the conservative methods to give the guidance. And there are some following reasons. Number one, to some extent, I think our business adversely affects by the economic environment and the international changes. So in the coming Q1, we are comparing against the high base last year Q1, both for the core educational business and the Easter Bunny. And number two, as for the K-12 business, we have some cutoff issue because this year's Chinese New Year was earlier than before. 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. And 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 estimation of the forecast for the whole year, and the cash will collect already for the Q2 courses. So that's why, that's why we expect the revenue acceleration since Q2 for the K-12 business. And the last reason is, you know, last year Q1, Easter Bunny restructuring has not yet taken place in Q1. So we will have a hard comparison for Easter Bunny in the coming Q1. But in 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% -over-year growth for the whole group. And it shows that the revenue growth acceleration since Q2. And break it down of the different business lines. I think the overseas-related business, yeah, it will negatively impact by the economic environment and international situations change. So we expect the revenue will be down by roughly 4-5%. And the K-12 business, I think the K-9 business, for the Q1, the revenue growth will be somewhere around -16% -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, -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 in the coming year. Felix. Okay, thank you. That's very clear.

Thank you. Just a moment for our next question, please. Next, we have Lucy Yu from Bank of America. Your line is now open, Lucy.

Lucy, I have actually a follow-up question on the guidance that you just gave. What is the major difference that you have in revised this quarter versus last quarter when you give the guidance for FY26? So what has changed in terms of line of business? Secondly, just to clarify on the shareholder return program, is it based on reported net income or non-GAAP net income? Thank you.

Second question, answer first. The capital allocation for the next three years is calculated based on the net income, the net income, a trade-buildable GAAP net income, trade-buildable to new rental. And I think 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 Q1. So in the past four quarters, I think the management of the East Buy fixed the operations. And East Buy still, we would control the 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.

Thank you, Stephen. One more follow-up. So the guidance revenue growth is all in US dollars or RMB?

Dollars, in dollars.

And you are using current rate?

Yeah, we're using the current exchange rate in the first 45-50

days of this quarter.

Okay, thank you so much.

Thank you, Lucy.

Thank you. Next, we have Yuh-Kin Zhang from Citix. Your line is now open.

Hello, good evening, Stephen and Sisi. Thank you for taking that question. The question is about the deceleration of our revenue. So what is the main reason for our revenue deceleration, especially for the non-academic business? So is it because of the competition or it's just our own adjustment? And if we look in the long term, like in the next few years, how do we think of our growth rate in the next few years? Thank you.

I think the revenue slowing down is mainly due to the economic environment and the international relationship change. Because we have seen some Chinese parents, some of them doesn't want to send their kids to study abroad in the future. So it will negatively impact our the overseas business. And as for the competition in K-12 field, I think the competition is a little bit stronger than that of 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. And so I think the market is huge, especially for the K-9 non-academic courses of the business. So we still got the K-9 business grow by 20% in the coming year. I think during this microeconomic situation, I think it's still good. And going forward, and the Q1 is a little bit weak. But based on our current estimation, I think the Q2 and the 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.

Yes,

can I have a follow-up question?

Because if you look at the revenue growth before the policy, maybe our K-12 revenue growth rate can be over 20%. Well, that for now maybe is just like around 15%. So if you look at the next few years, would the growth rate for K-12 business be like going up to over 20% or just around 10% to 20%?

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

forward. Okay, thank you.

Thank you. Just a moment for our next question, please.

Next, we have Alice Chao from Citi Bank. Your line is now open, Alice.

Good evening, Stephen and Citi. I have two questions. The first one is on the modern trend. How should we think about the operating modern 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? And my second question is on the goodwill impairment. Can you please give up some color on this? Why was there a goodwill associated with kindergarten business to begin with? And will the company continue to do that for still bad non-core business and also like cultural tourism? Thanks.

Okay, thank you, Alice. You know, your margin question. Let us start with this quarter's margin analysis. In the Q4, in this quarter, we got the 410 business point margin extension. I think the margin extension, even for the Q4 and the whole year, fiscal year 25, was mainly due to the off season leverage and the efficiency headstands cost control. As you know, we started to do the cost control since March this year, and we have seen the good results, which helps to drive the margin up. And I do believe the cost control will help the margin profile in the coming year, even the Q1 and the whole year, fiscal year 26. As we look at the margin of the Q1, we remained 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. And the whole year margin, I think it's a little bit early to make a forecast of the new year margin. But we're 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. 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 enhancement and the more off season leverage to

drive the margin up in the coming quarter and the new year. Thank you. Your second question is about the

who will department of the kindergartens. Oh, you know, we acquired some kindergartens so many years ago, it's roughly eight, ten years old. And, you know, because of some reasons, the policy and the new boards, you know, decreased. So I think we discussed with the auditors, and, you know, we think the good role empowerment should be done at this time. So we did the empowerment loss of $60 million in

this quarter, but it's all, it's one time. May I have a follow up question?

I'd like to know more about the cultural tourism. Is there any plan to build back the business thing?

Can you repeat again? Yes.

Is there any plan to build back the cultural tourism?

Oh, tourism business. Oh, tourism business. Yeah, we started the tourism business one and a half years ago. And the revenue growth in the last fiscal year, fiscal year 25, which, you know, extremely high. And, you know, most of the tourism business are, you know, related to the summer camp, study tour, both domestic and internationally. 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, it's a new business. We need more time to fix the business model of the tourism

business. Thank you.

Okay. Thank you.

Just a moment for our next question, please. Next we have Timothy Zhao from Goldman Sachs. Your line is now open.

Sure. Thank you, Stephen, for taking my question. 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 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 that you have for the order of cost control. And secondly, also on the modern related question is on the capacity expansion. Just wondering, I think, for the May quarter, how many new learning centers were newly opened and what is your learning center or the capacity expansion plan into the fiscal year?

Thank you. The margins, yeah, the Q4, we got the margin extension by 410 basis for an hour. 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 to seek to the high operating leverage. And going forward, even in the Q1, coming Q1 and the new year, I think the cost control will help us to drop the margin up. And roughly, the cost control will give us the, let's say, the 100 to 150 basis point margin up. So this is a roughly estimation. And your second question is about the extension, right? Yeah. Yeah, this is the, I think, the in the Q4, the net at this 9%, it's 8 to 9% the learning centers. And going forward in the new year, I think our plan is to monitor the capacity extension to ensure alignment 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. So roughly, we originally were planning to open 10 to 15% of the new learning centers. It depends on the revenue growth. And typically, we set up new learning centers, new learning centers in second half of the year. So it's back loaded. 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. And so, and I must mention that we only allow the cities with the best, with a better top-line growth and good margins to allow them to open the learning centers, especially for

the people. Thank you. Thank you, Stephen.

Thank you. Just a reminder, please make sure to ask one question. And if you have more questions, please re-queue. Next, we have DS Kim from JP Morgan.

Your line is a few follow-ups from the previous comment, if that's okay. So you earlier mentioned margin could go up in the first quarter. Were you referring to the group level or core education only? That's the first follow-up to earlier point. And second, can I just double check when you say cost control can give us about like 150 bips of margin expansion? Is it regarding first quarter or full year, just as a follow-up? And I have one more question.

For the full year, the cost control. And you know, yeah, I said because we start, we go back to give the guidance for whole group. So the margin analysis and guidance is for the group. So what I'm saying is the whole group, the margin extension will be added into one.

Got it. Thank you. And again, this is kind of follow-up, but I did a very rough calculation based on the number that you gave us to break down. And I think VR essentially guiding core education, excluding East by to grow about 11%, 12% in fiscal 26 versus last quarter, you mentioned 14, 15% growth. Am I right about this? Or can you comment on education on the apples to apple guidance versus last quarter? Just want to double check.

The fiscal year 26, right? 26. Yes,

sir. 26, sir.

Yeah, it seems to be a little bit lower than, we got the guidance last quarter because, yeah, as I said, the overseas related business, I think it will negatively impact by the micro economy 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%, -5% year over year. And this is for the whole year. So this is a new change compared to the last year. Got it. Yeah.

Thank you. So I think that probably implies 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 are thinking about between the two? Is it going to depend on the level of share prices or do you have certain pockets within that 50% in mind or dividend at least this much? Any sort of qualitative color would be appreciated and that's it. Thank you, sir.

I think, you know, 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, you know, we had a board meeting yesterday and, you know, I'm happy to see the board approve the new capital allocation program not only for this year but also for next three years from fiscal year 26 to fiscal year 28. So which amounted to the, let's say the 50% of the net gap, net income. And now, you know, 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 buyback or both. But, you know, 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 follow the 20th, roughly at the end of September. So by then, I think we will decide, you know, how much amount to do the capital allocation and waste.

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

you. Thank you for your advice. Thank you.

Thank you. Just a moment for our next question, please. Next, we have Charlotte Wei from HSBC. Your line is now open.

Thank you, Stephen and Sizi for taking my question. 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 trend? Thank you.

Yeah, as I said, you know, there's some seasonality impact. Yeah, as I said, you know, because of the early Chinese New Year and, you know, some revenues were reported in Q3 and Q4 last year. And so it will negatively impact the Q1 revenue and enrollment. And yeah, Q1 is, it's low, you know, it seems to be low. But I think, you know, based on our numbers, the cash and the student enrollment, we have already got from customers for the Q2 courses. I think the numbers are higher than the Q1. So that's why, as I said, we expect the revenue growth will be accelerated in the Q2, things Q2. And that's why we gave the guidance of the whole year higher than the Q1. And the industry growth, sorry, I have no 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.

Thank you. Thank you. Just a moment. I have no more

questions. Thank you.

Thank you.

Thank you. Just a moment for our next question. Next, we have Ali Sishun from CLSA. Your line is now open.

Hi. Thank you, Stephen and Sisi. 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? Thank you.

The demand is a little bit less than we expected, compared to one quarter ago. Yeah. Because of the whole economic situation. But it's sorry, but I think it's still good for the Q12 business, even for the industry. And I don't believe the whole industry is still growing. And I think we are still taking the market share. And yeah, as I said, I think things with Q2, the revenue growth will be accelerated again. And so yeah, and the student enrollment number in the summer, we haven't finished the enrollment window for the summer. So I think next quarter's earnings call, I will share with you the number. Share with you the number. Enrollment for the whole summer. Okay.

Thank you. And about the retention rate?

The retention rate is still going up. Both for the whole K&I business and high school business. It's still

going up.

Okay, got it. Thank you.

Thank you.

Thank you. We are now approaching the end of the conference call. I will now turn the call over to New Rental's Executive President and CFO Stephen Young for his closing remarks.

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.

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