FENBI (02469) releases annual report: Research and development effort increased, resilience of 9.12 million user base highlighted.

On April 27th, FENBI (02469) officially released its annual report for the year 2025. According to the annual report data, the company achieved a total operating income of 2.677 billion RMB, with an adjusted net profit of 281 million RMB. Specifically, FENBI's gross profit was 1.433 billion RMB, which remained basically the same as the previous year, while the corresponding gross profit margin increased from 52.5% to 53.5%. Two key data points are worth noting: first, in the context of revenue adjustments, FENBI's user data on the customer side showed strong resilience, with an average of 9.12 million monthly active users during the reporting period, basically unchanged from the same period last year; second, the company continued to increase its investment in AI technology research and development, with a research and development expenditure of 245 million RMB in 2025, a 10.6% increase from the same period last year, further strengthening the company's technological moat. The accelerating head effect makes being the first-mover crucial. By the end of the reporting period, FENBI's total liquid assets, including cash and cash equivalents, restricted funds, etc., totaled 1.431 billion RMB. With a solid financial foundation, FENBI reallocated all of its unused IPO raised funds of 60.8 million Hong Kong dollars for AI research, development, infrastructure, and implementation, in order to further enhance its technological capabilities. The ample cash reserves provide FENBI with strategic initiative. In 2025, by deepening the strategic implementation of "AI + education," FENBI has opened up a new path of quality improvement. Powered by the independently-developed large-model vocational education domain engine, FENBI has successfully built an employment service AI matrix, launching key products such as premium employment classes, AI system brushing classes, AI premium interview evaluations, etc. Especially since October 2025, FENBI has continuously launched teaching qualification exams and national SOE interview AI evaluation courses, marking its formal expansion into a broader workplace service scenario. FENBI stated that, thanks to its stable online business, in-depth empowerment of independently developed AI technology, and the huge synergies achieved through the innovative "Wuxi Online Offline Communication Information Technology Co., Ltd." combined model, the company has been able to operate scalable businesses. In the past year, competition in the vocational education track has slowed down. User decisions are becoming more rational, and small and medium-sized institutions lacking technological support are gradually falling behind in product experience and delivery efficiency, while the user concentration and brand awareness advantages of leading companies continue to expand. Based on feedback data, FENBI's AI products have served nearly 30 million users from January to October 2025, with 2.38 million paying users. Within the 8 months from April to December 2025, nearly 300,000 students had paid to use the newly launched written test AI brushing system class. With a monthly active scale of tens of millions, FENBI's AI products have established a stable channel for reaching target users quickly, achieving a leading position. Small-class business maintains growth, AI synergy effect demonstrated. Another highlight of the annual report comes from FENBI's small-class business. During the reporting period, the overall revenue from small-class courses increased from approximately 60% to about 65% of total revenue, showing significant growth compared to the previous year. FENBI attributes this growth to the further growth of the FENBI small-class system driven by the student volume brought in by the AI courses. In other words, the user scale accumulated by the AI courses provides a stable potential conversion source for small-class courses. With the growth of the student volume in AI courses, a portion of the users naturally flow to small-class courses, driving the latter's recovery during the adjustment period. As a high unit price, highly interactive product, the growth of small-class courses reflects the users' willingness to pay for refined and in-depth services, which has not diminished due to external conditions. This growth is closely related to the synergy effect of FENBI's AI product matrix. The continuous growth in sales of AI courses has also driven the expansion of the user base for large-class courses. By continuously enriching AI products, the potential value of existing users is further unleashed. FENBI stated that in 2025, the vocational education and training industry has entered a golden period of development driven by policy empowerment and technological revolution. The continuous strong demand for learning from users provides a solid fundamental for the industry. On the other hand, students have higher requirements for the value and efficiency of educational services, with market participants becoming more diverse. Overall, with the help of AI applications, FENBI's products cover multiple scenarios such as public examinations, civil service, and enterprise training, achieving precise diagnosis and pushing, greatly extending the coverage breadth and response speed of teaching services, significantly improving user learning efficiency, thereby driving user conversion rates and forming a viable business development path driven by core technological capabilities.