NEW ORIENTAL-S (09901) The third-quarter net profit attributable to shareholders increased by 45.3% year-on-year to USD 1.268 billion.

New Oriental-S (09901) announced that as of the end of the third quarter ending February 28, 2026, net revenue increased by 19.8% year-on-year to $1.4173 billion. Operating profit increased by 44.8% year-on-year to $180.3 million. Net profit attributable to New Oriental shareholders increased by 45.3% year-on-year to $126.8 million. For the first nine months ending on February 28, 2026, net revenue was $4.1318 billion, an increase of 13.0% year-on-year. Operating profit was $557.5 million, an increase of 27.6% year-on-year. Net profit attributable to New Oriental shareholders was $413 million, an increase of 13.3% year-on-year. New Oriental expects that the net revenue for the fourth quarter of the 2026 fiscal year (March 1, 2026 to May 31, 2026) will be between $1.4296 billion and $1.4669 billion, with a year-on-year increase of between 15% and 18%. Driven by the strong growth of various business lines, New Oriental has raised its full-year net revenue expectations for the 2026 fiscal year (June 1, 2025 to May 31, 2026) to between $5.5614 billion and $5.5987 billion, an increase of between 13% and 14% year-on-year. Chairman of the New Oriental Board of Directors, Yu Minhong, stated: "We are pleased to announce that the revenue growth in the third quarter of the 2026 fiscal year continued to accelerate compared to the same period last year. The revenue from overseas exam preparation business increased by approximately 7.4%. In addition, our domestic exam preparation business for adults and college students grew by approximately 14.5% year-on-year, and the new education business also grew by approximately 23.3%. This quarter, our non-academic tutoring courses have been launched in approximately 60 cities, attracting around 458,000 students to enroll. At the same time, our intelligent learning system and devices have been deployed in approximately 60 cities, with approximately 367,000 active paying users. We are further focusing on core business, prioritizing the improvement of teaching standards and product quality. We will also optimize cost structure and operational efficiency to drive high-quality, efficient, and sustainable growth. We have also established a comprehensive customer service system across departments, currently serving over 330,000 families in 12 cities. This infrastructure not only strengthens customer loyalty and retention rates, unleashes cross-selling potential, maximizes customer lifetime value, but also reduces customer acquisition costs and marketing costs. We will continue to enhance brand influence and create long-term value for customers and shareholders." CEO of New Oriental, Zhou Chenggang, stated: "This quarter, we continued to implement rigorous capacity expansion strategies, striking a balance between revenue growth and operational efficiency. As part of our ongoing commitment, we further strengthened the OMO teaching system and deepened the integration of artificial intelligence throughout the entire education ecosystem. This quarter, we made significant progress in the application of artificial intelligence, including embedding artificial intelligence into existing educational products, optimizing artificial intelligence-driven products, and utilizing artificial intelligence to improve operational efficiency and support teaching teams. In addition, EAST BUY remains dedicated to providing quality products and excellent service to Chinese families. We have opened multiple live streaming accounts on the Douyin platform, creating core accounts such as EAST BUY Home Pavilion, EAST BUY Fruits and Vegetables, EAST BUY Nutrition and Health, and extending them to a comprehensive network of multiple accounts in other vertical channels. We have also optimized live content and introduced innovative initiatives such as anchor recruitment activities and supplier conferences. EAST BUY will continue to advance self-owned brand development, member ecosystem, offline expansion, and operational efficiency improvement to drive sustainable long-term growth." President and CFO of New Oriental, Yang Zhihui, pointed out: "We are encouraged by the continuous year-on-year improvement in Non-GAAP operating profit margins this quarter. This is mainly due to the improvement in operational efficiency of the education business and utilization rates. This quarter, we recorded a Non-GAAP operating profit margin of 14.3%, an increase of 230 basis points from the same period last year. Looking ahead, we will continue to focus on implementing cost control and efficiency improvement measures that have been progressing in various major business lines. Targeted structural optimization not only reduces fixed costs and drives higher operational efficiency but also steadily increases our operating profit margin, laying a solid foundation for sustainable profit growth."