#China #Shanghai #financial results #revenue growth #Four Seasons Education

Significant Financial Milestone for Four Seasons Education

Four Seasons Education (Cayman) Inc., a prominent provider of education and tourism-related services in China, recently announced impressive unaudited financial results for the first half of fiscal year 2025, concluding on August 31, 2024. This period saw a remarkable 117.8% increase in revenue, reaching RMB 134.7 million (approximately USD 19.0 million), compared to RMB 61.8 million during the same timeframe last year.

Key Financial Highlights

The company's gross profit also saw an uptick, rising by 11.1% to RMB 29.7 million (about USD 4.2 million). Although the company recorded an operating loss of RMB 5.7 million (USD 0.8 million), the overall results highlighted a revival trajectory compared to previous periods. Notably, the adjusted operating loss, a non-GAAP metric, narrowed to RMB 1.6 million (USD 0.2 million) versus an adjusted income of RMB 2.7 million in the prior year’s first half.

Furthermore, the net income posted by Four Seasons Education was RMB 3.0 million (USD 0.4 million), a decrease from RMB 5.7 million in the previous year, indicating the company's challenges in maintaining its bottom line amid expanding operations and increased expenditures.

Operational Achievements

Ms. Yi (Joanne) Zuo, the Chief Executive Officer, attributed the significant revenue growth to robust performance across core business sectors and strategic operational efficiencies achieved during the period. The non-academic tutoring segment played a pivotal role, registering a notable 62% revenue increase year-over-year, reflecting the company's commitment to meeting diverse educational needs across various demographics.

With the expansion of its non-academic tutoring programs, Four Seasons has successfully engaged students of all ages. The firm also reported substantial growth in its tourism sector, which experienced a staggering 230% revenue increase as the company broadened its offerings to attract a wider range of customers, including the introduction of cruise services in 2024.

Future Outlook

While the initial results for the beginning of fiscal year 2025 were promising, the company is cognizant of the evolving market landscape and intends to enhance its operational efficiencies further while focusing on organic growth strategies. Four Seasons plans to pursue innovative educational products and services that cater to higher profit margins.

The management expressed optimism about leveraging its established industry experience and expanding overseas learning preparation services, aiming to solidify long-term competitiveness despite market fluctuations and customer expectations.

Ms. Zuo concluded by emphasizing the company's ongoing commitment to enhancing core capabilities and expanding its reach, thereby generating sustainable value for its stakeholders.

Financial Summary

• - Revenue: RMB 134.7 million, up 117.8% YoY
• - Gross Profit: RMB 29.7 million, a 11.1% increase YoY
• - Operating Loss: RMB 5.7 million
• - Net Income: RMB 3.0 million, down from RMB 5.7 million YoY
• - Cash and Cash Equivalents: RMB 156.1 million as of August 31, 2024

With these solid results, Four Seasons Education demonstrates its capacity to rebound successfully and cater to a rapidly changing educational landscape full of opportunities.