Technology

New Oriental Announces Results for the Fourth Fiscal Quarter and the Fiscal Year Ended May 31, 2024

Published

2 years ago

July 31, 2024

BEIJING, July 31, 2024 /PRNewswire/ — New Oriental Education & Technology Group Inc. (the “Company” or “New Oriental”) (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the fourth fiscal quarter and fiscal year ended May 31, 2024.

Financial Highlights for the Fourth Fiscal Quarter Ended May 31, 2024

Total net revenues increased by 32.1% year over year to US$1,136.7 million for the fourth fiscal quarter of 2024.Operating income decreased by 78.1% year over year to US$10.5 million for the fourth fiscal quarter of 2024.Net income attributable to New Oriental decreased by 6.9% year over year to US$27.0 million for the fourth fiscal quarter of 2024.

Key Financial Results

(in thousands US$, except per ADS(1) data)

4Q FY2024

4Q FY2023

% of change

Net revenues

1,136,679

860,571

32.1 %

Operating income

10,527

48,054

-78.1 %

Non-GAAP operating income (2)(3)

36,324

78,592

-53.8 %

Net income attributable to New Oriental

26,972

28,959

-6.9 %

Non-GAAP net income attributable to New Oriental (2)(3)

36,931

62,091

-40.5 %

Net income per ADS attributable to New Oriental – basic

0.16

0.18

-6.9 %

Net income per ADS attributable to New Oriental – diluted

0.16

0.17

-5.8 %

Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4)

0.22

0.38

-40.5 %

Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4)

0.22

0.37

-40.5 %

(in thousands US$, except per ADS(1) data)

FY2024

FY2023

% of change

Net revenues

4,313,586

2,997,760

43.9 %

Operating income

350,425

190,046

84.4 %

Non-GAAP operating income (2)(3)

472,883

279,834

69.0 %

Net income attributable to New Oriental

309,591

177,341

74.6 %

Non-GAAP net income attributable to New Oriental (2)(3)

381,123

258,909

47.2 %

Net income per ADS attributable to New Oriental – basic

1.87

1.06

77.2 %

Net income per ADS attributable to New Oriental – diluted

1.85

1.03

79.3 %

Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4)

2.30

1.54

49.4 %

Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4)

2.27

1.51

50.0 %

(1) Each ADS represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on
NYSE.

(2) GAAP represents Generally Accepted Accounting Principles in the United States of America.

(3) New Oriental provides net income attributable to New Oriental, operating income and net income per ADS
attributable to New Oriental on a non-GAAP basis that excludes share-based compensation expenses and gain
(loss) from fair value change of investments to provide supplemental information regarding its operating
performance. For more information on these non-GAAP financial measures, please see the section captioned “About
Non-GAAP Financial Measures” and the tables captioned “Reconciliations of Non-GAAP Measures to the Most
Comparable GAAP Measures” set forth at the end of this release.

(4) The Non-GAAP net income per ADS attributable to New Oriental is computed using Non-GAAP net income
attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS
calculation.

Operating Highlights for the Fourth Fiscal Quarter Ended May 31, 2024

The total number of schools and learning centers was 1,025 as of May 31, 2024, an increase of 114 and 277 compared to 911 as of February 29, 2024 and 748 as of May 31, 2023, respectively. The total number of schools was 81 as of May 31, 2024.

Michael Yu, New Oriental’s Executive Chairman, commented, “We are pleased to conclude the final quarter of fiscal year 2024 with a healthy top line growth of 32.1%. Our overseas test preparation and overseas study consulting businesses increased by approximately 17.7% and 17.3% year over year, respectively. In addition, the domestic test preparation business targeting adults and university students recorded a growth of approximately 16.4% year over year. Furthermore, our new educational business initiatives have all sustained strong momentum in this fiscal quarter, with a 50.3% revenue growth year over year. Among these new educational business initiatives, our non-academic tutoring courses were offered in around 60 cities, attracting approximately 875,000 student enrollments in this fiscal quarter. Simultaneously, our intelligent learning system and devices were adopted in around 60 cities, with approximately 188,000 active paid users in this fiscal quarter. On top of the strong growth, it is also encouraging to see the continuous improvement in customer retention rate. We will keep on our effort in enhancing quality of our product offerings and services. We firmly believe in the bright future of these new business initiatives and our strength in capturing the new market opportunity.”

Chenggang Zhou, New Oriental’s Chief Executive Officer, added, “During this fiscal quarter, we accelerated our capacity expansion in some existing cities with greater growth potential and higher facility utilization, thereby increasing profitability. As of the end of this fiscal year, the total number of schools and learning centers increased to 1,025. As our key educational businesses delivered sustainable growth, we continued to allocate resources to our online-merge-offline teaching system and apply new technologies to enhance the quality of our educational and product offerings. Upholding the customer-centric strategy, East Buy Holding Limited (“East Buy”) consistently provides customers with healthy, delicious, and cost-effective products. Since the launch of its first private label product in April 2022, East Buy has developed and launched over 400 SKUs within just two years, expanding its product line from agriculture, food and beverage products to a variety of product categories, among which some of its hot-selling products have achieved excellent performance in the market with strong competitiveness.”

Stephen Zhihui Yang, New Oriental’s Executive President and Chief Financial Officer, commented, “Our GAAP operating margin for the quarter was 0.9% and Non-GAAP operating margin for the quarter was 3.2%. Our investment in accelerated capacity expansion and newly-integrated tourism-related business, as well as additional incentives to management and staff have led to the short-term impact on our operating margin in this quarter. We anticipate the pressure on margins for educational businesses will reduce in the next fiscal year as we continue to improve the utilization of facilities and operating efficiency. We will stick to our commitment on creating sustainable value for our customers and shareholders in the long term.”

Recent Development

On November 21, 2023, as part of the Company’s business line reorganization, the Company’s wholly-owned subsidiary and variable interest entity (the “New Oriental Group Entities”) entered into an agreement with East Buy and its subsidiaries and variable interest entity, pursuant to which the New Oriental Group Entities agreed to acquire East Buy’s online education business at an aggregate consideration of RMB1.5 billion. The consideration was agreed by the parties after arm’s length negotiations, with reference to an independent valuation. The acquisition was completed in this fiscal quarter. Upon completion, the online education business was deconsolidated from East Buy’s consolidated financial statements and is now recorded by the Company under educational services.

Share Repurchase

The Company’s board of directors approved a share repurchase program in July 2022, under which the Company is authorized to repurchase up to US$400 million of the Company’s ADSs or common shares through the next twelve months. The Company’s board of directors further approved to extend the effective time of the share repurchase program to May 31, 2025. As of July 30, 2024, the Company repurchased an aggregate of approximately 7.3 million ADSs for approximately US$296.1 million from the open market.

Financial Results for the Fourth Fiscal Quarter Ended May 31, 2024

Net Revenues

For the fourth fiscal quarter of 2024, New Oriental reported net revenues of US$1,136.7 million, representing a 32.1% increase year over year. The growth was mainly driven by the increase in net revenues from our educational new business initiatives and East Buy private label products and livestreaming e-commerce business.

Operating Costs and Expenses

Operating costs and expenses for the quarter were US$1,126.2 million, representing a 38.6% increase year over year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were US$1,100.4 million, representing a 40.7% increase year over year. The increase was primarily due to the cost and expenses related to the substantial growth in East Buy private label products and livestreaming e-commerce business and accelerated capacity expansion for educational businesses.

Cost of revenues increased by 38.5% year over year to US$542.4 million.Selling and marketing expenses increased by 40.9% year over year to US$208.2 million.General and administrative expenses for the quarter increased by 37.5% year over year to US$375.5 million. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, were US$355.2 million, representing a 42.3% increase year over year.

Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by 15.5% to US$25.8 million in the fourth fiscal quarter of 2024.

Operating Income and Operating Margin

Operating income was US$10.5 million, representing a 78.1% decrease year over year. Non-GAAP income from operations for the quarter was US$36.3 million, representing a 53.8% decrease year over year.

Operating margin for the quarter was 0.9%, compared to 5.6% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 3.2%, compared to 9.1% in the same period of the prior fiscal year.

Net Income and Net Income per ADS

Net income attributable to New Oriental for the quarter was US$27.0 million, representing a 6.9% decrease year over year. Basic and diluted net income per ADS attributable to New Oriental were US$0.16 and US$0.16, respectively.

Non-GAAP Net Income and Non-GAAP Net Income per ADS

Non-GAAP net income attributable to New Oriental for the quarter was US$36.9 million, representing a 40.5% decrease year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$0.22 and US$0.22, respectively.

Cash Flow

Net operating cash inflow for the fourth fiscal quarter of 2024 was approximately US$376.8 million and capital expenditures for the quarter were US$27.4 million.

Balance Sheet

As of May 31, 2024, New Oriental had cash and cash equivalents of US$1,389.4 million. In addition, the Company had US$1,489.4 million in term deposits and US$2,065.6 million in short-term investment.

New Oriental’s deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods are delivered, at the end of the fourth quarter of fiscal year 2024 was US$1,780.1 million, an increase of 33.1% as compared to US$1,337.6 million at the end of the fourth quarter of fiscal year 2023.

Financial Results for the Fiscal Year Ended May 31, 2024

For the fiscal year 2024 ended May 31, 2024, New Oriental reported net revenues of $4,313.6 million, representing a 43.9% increase year over year.

Operating income from operations for the fiscal year 2024 was US$350.4 million, representing a 84.4% increase year over year. Non-GAAP operating income for the fiscal year 2024 was US$472.9 million, representing a 69.0% increase year over year.

Operating margin for the fiscal year 2024 was 8.1%, compared to 6.3% for the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses for the fiscal year 2024, was 11.0%, compared to 9.3% for the prior fiscal year.

Net income attributable to New Oriental for the fiscal year 2024 was US$309.6 million, representing a 74.6% increase year over year. Basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2024 amounted to US$1.87 and US$1.85, respectively.

Non-GAAP net income attributable to New Oriental for the fiscal year 2024 was US$381.1 million, representing a 47.2% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2024 amounted to US$2.30 and US$2.27, respectively.

Outlook for the First Quarter of the Fiscal Year 2025

New Oriental expects total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, in the first quarter of the fiscal year 2025 (June 1, 2024 to August 31, 2024) to be in the range of US$1,254.7 million to US$1,283.5 million, representing year over year increase in the range of 31% to 34%.

This forecast reflects New Oriental’s current and preliminary view, which is subject to change.

Conference Call Information

New Oriental’s management will host an earnings conference call at 8 AM on July 31, 2024, U.S. Eastern Time (8 PM on July 31, 2024, Beijing/Hong Kong Time).

Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, and unique personal PIN.

Conference call registration link: https://register.vevent.com/register/BIc2dde5e6a20144cfb19927a1c9cff6d0. It will automatically direct you to the registration page of “New Oriental FY2024 Q4 Earnings Conference Call” where you may fill in your details for RSVP.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s) and personal PIN) provided in the confirmation email received at the point of registering.

Joining the conference call via a live webcast:

Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.

Listening to the conference call replay:

A replay of the conference call may be accessed via the webcast on-demand by registering at https://edge.media-server.com/mmc/p/o6s9tzw6/ first. The replay will be available until July 31, 2025.

About New Oriental

New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental’s program, service and product offerings mainly consist of educational services and test preparation courses, private label products and livestreaming e-commerce and other services, overseas study consulting services, and educational materials and distribution. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental’s ADSs, each of which represents ten common shares, are listed and traded on the NYSE. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.

For more information about New Oriental, please visit http://www.neworiental.org/english/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook for the first quarter of fiscal year 2025, quotations from management in this announcement, as well as New Oriental’s strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to effectively and efficiently manage changes of our existing business and new business; our ability to execute our business strategies; uncertainties in relation to the interpretation and implementation of or proposed changes to, the PRC laws, regulations and policies regarding the private education industry; our ability to attract students without a significant increase in course fees; our ability to maintain and enhance our “New Oriental” brand; our ability to maintain consistent teaching quality throughout our school network, or service quality throughout our brand; our ability to achieve the benefits we expect from recent and future acquisitions; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector and livestreaming e-commerce business in China; the continuing efforts of our senior management team and other key personnel, health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement New Oriental’s consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses and gain (loss) from fair value change of investments, operating income excluding share-based compensation expenses, operating cost and expenses excluding share-based compensation expenses, general and administrative expenses excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, and basic and diluted net income per ADS and per share excluding share-based compensation expenses and gain (loss) from fair value change of investments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this release.

New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses and gain (loss) from fair value change of investments that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to New Oriental’s historical performance and liquidity. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP measures is that they exclude share-based compensation charge and gain (loss) from fair value change of investments that has been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

Contacts

For investor and media inquiries, please contact:

Ms. Rita Fong                                                    Ms. Sisi Zhao
FTI Consulting                                                   New Oriental Education & Technology Group Inc.
Tel:        +852 3768 4548 Tel:         +86-10-6260-5568
Email:    rita.fong@fticonsulting.com Email: zhaosisi@xdf.cn

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

As of May 31

2024

2023

(Unaudited)

(Audited)

USD

ASSETS:

Current assets:

Cash and cash equivalents

1,389,359

1,662,982

Restricted cash, current

177,411

110,892

Term deposits, current

1,320,167

855,784

Short-term investments

2,065,579

1,477,843

Accounts receivable, net

29,689

33,074

Inventory, net

92,806

52,689

Prepaid expenses and other current assets, net

309,464

211,240

Amounts due from related parties, current

4,403

9,383

Total current assets

5,388,878

4,413,887

Restricted cash, non-current

22,334

31,553

Term deposits, non-current

169,203

462,734

Property and equipment, net

507,981

359,760

Land use rights, net

4,450

3,321

Amounts due from related parties, non-current

7,273

1,735

Long-term deposits

38,161

26,492

Intangible assets, net

18,672

25,179

Goodwill, net

103,958

105,514

Long-term investments, net

355,812

399,585

Deferred tax assets, net

72,727

55,933

Right-of-use assets

653,905

439,535

Other non-current assets

188,319

67,230

Total assets

7,531,673

6,392,458

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

105,681

69,764

Accrued expenses and other current liabilities

774,805

569,437

Income taxes payable

139,822

118,049

Amounts due to related parties

551

346

Deferred revenue

1,780,063

1,337,630

Operating lease liability, current

199,933

155,752

Total current liabilities

3,000,855

2,250,978

Deferred tax liabilities

19,407

23,849

Unsecured senior notes

14,403

14,653

Operating lease liabilities, non-current

447,994

288,190

Total long-term liabilities

481,804

326,692

Total liabilities

3,482,659

2,577,670

Equity

New Oriental Education & Technology Group Inc. shareholders’ equity

3,775,934

3,604,348

Non-controlling interests

273,080

210,440

Total equity

4,049,014

3,814,788

Total liabilities and equity

7,531,673

6,392,458

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except for per share and per ADS amounts)

For the Three Months Ended May 31

2024

2023

(Unaudited)

USD

Net revenues

1,136,679

860,571

Operating cost and expenses (note 1)

Cost of revenues

542,398

391,615

Selling and marketing

208,241

147,793

General and administrative

375,513

273,109

Total operating cost and expenses

1,126,152

812,517

Operating income

10,527

48,054

Gain/(Loss) from fair value change of investments

10,412

(7,565)

Other income, net

35,820

31,349

Provision for income taxes

(5,531)

(19,442)

Loss from equity method investments

(22,606)

(12,480)

Net income

28,622

39,916

Add: Net income attributable to non-controlling interests

(1,650)

(10,957)

Net income attributable to New Oriental Education &
Technology Group Inc.’s shareholders

26,972

28,959

Net income per share attributable to New Oriental-Basic
(note 2)

0.02

Net income per share attributable to New Oriental-Diluted
(note 2)

0.02

Net income per ADS attributable to New Oriental-Basic
(note 2)

0.16

0.18

Net income per ADS attributable to New Oriental-Diluted
(note 2)

0.16

0.17

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

(In thousands except for per share and per ADS amounts)

For the Three Months Ended May 31

2024

2023

(Unaudited)

USD

General and administrative expenses

375,513

273,109

Less: Share-based compensation expenses in
general and administrative expenses

20,332

23,587

Non-GAAP general and administrative expenses

355,181

249,522

Total operating cost and expenses

1,126,152

812,517

Less: Share-based compensation expenses

25,797

30,538

Non-GAAP operating cost and expenses

1,100,355

781,979

Operating income

10,527

48,054

Add: Share-based compensation expenses

25,797

30,538

Non-GAAP operating income

36,324

78,592

Operating margin

0.9 %

5.6 %

Non-GAAP operating margin

3.2 %

9.1 %

Net income attributable to New Oriental

26,972

28,959

Add: Share-based compensation expenses

20,371

25,567

Less: Gain/(Loss) from fair value change of
investments

10,412

(7,565)

Non-GAAP net income attributable to New Oriental

36,931

62,091

Net income per ADS attributable to New Oriental-
Basic (note 2)

0.16

0.18

Net income per ADS attributable to New Oriental-
Diluted (note 2)

0.16

0.17

Non-GAAP net income per ADS attributable to New
Oriental – Basic (note 2)

0.22

0.38

Non-GAAP net income per ADS attributable to New
Oriental – Diluted (note 2)

0.22

0.37

Weighted average shares used in calculating basic
net income per ADS (note 2)

1,653,165,343

1,653,059,954

Weighted average shares used in calculating
diluted net income per ADS (note 2)

1,671,292,756

1,668,721,317

Non-GAAP net income per share – basic

0.02

0.04

Non-GAAP net income per share – diluted

0.02

0.04

Notes:

Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as follows:

For the Three Months Ended May 31

2024

2023

(Unaudited)

USD

Cost of revenues

990

2,743

Selling and marketing

4,475

4,208

General and administrative

20,332

23,587

Total

25,797

30,538

Note 2: Each ADS represents ten common shares.

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

For the Three Months Ended May 31

2024

2023

(Unaudited)

USD

Net cash provided by operating activities

376,835

421,609

Net cash (used in)/provided by investing activities

(864,010)

64,939

Net cash used in financing activities

(109,230)

(76,522)

Effect of exchange rate changes

(3,565)

(35,600)

Net change in cash, cash equivalents and restricted cash

(599,970)

374,426

Cash, cash equivalents and restricted cash at beginning of
period

2,189,074

1,431,001

Cash, cash equivalents and restricted cash at end of
period

1,589,104

1,805,427

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except for per share and per ADS amounts)

For the Year Ended May 31

2024

2023

(Unaudited)

USD

Net revenues

4,313,586

2,997,760

Operating cost and expenses (note 1):

Cost of revenues

2,050,960

1,409,438

Selling and marketing

660,586

444,693

General and administrative

1,251,615

953,583

Total operating cost and expenses

3,963,161

2,807,714

Operating income

350,425

190,046

Gain/(Loss) from fair value change of investments

19,025

(860)

Other income, net

124,391

119,345

Provision for income taxes

(109,690)

(66,066)

Loss from equity method investments

(58,933)

(7,102)

Net income

325,218

235,363

Add: Net income attributable to non-controlling interests

(15,627)

(58,022)

Net income attributable to New Oriental Education &
Technology Group Inc.’s shareholders

309,591

177,341

Net income per share attributable to New Oriental-Basic
(note 2)

0.19

0.11

Net income per share attributable to New Oriental-
Diluted (note 2)

0.18

0.10

Net income per ADS attributable to New Oriental-Basic
(note 2)

1.87

1.06

Net income per ADS attributable to New Oriental-
Diluted (note 2)

1.85

1.03

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES

(In thousands except for per share and per ADS amounts)

For the Year Ended May 31

2024

2023

(Unaudited)

USD

General and administrative expenses

1,251,615

953,583

Less: Share-based compensation expenses in general
and administrative expenses

76,439

81,289

Non-GAAP general and administrative expenses

1,175,176

872,294

Total operating cost and expenses

3,963,161

2,807,714

Less: Share-based compensation expenses

122,458

89,788

Non-GAAP operating cost and expenses

3,840,703

2,717,926

Operating income

350,425

190,046

Add: Share-based compensation expenses

122,458

89,788

Non-GAAP operating income

472,883

279,834

Operating margin

8.1 %

6.3 %

Non-GAAP operating margin

11.0 %

9.3 %

Net income attributable to New Oriental

309,591

177,341

Add: Share-based compensation expenses

90,557

80,708

Less: Gain/(Loss) from fair value change of
investments

19,025

(860)

Non-GAAP net income attributable to New Oriental

381,123

258,909

Net income per ADS attributable to New Oriental-
Basic (note 2)

1.87

1.06

Net income per ADS attributable to New Oriental-
Diluted (note 2)

1.85

1.03

Non-GAAP net income per ADS attributable to New
Oriental – Basic (note 2)

2.30

1.54

Non-GAAP net income per ADS attributable to New
Oriental – Diluted (note 2)

2.27

1.51

Weighted average shares used in calculating basic net
income per ADS (note 2)

1,653,597,432

1,678,264,547

Weighted average shares used in calculating diluted
net income per ADS (note 2)

1,669,499,952

1,685,631,987

Non-GAAP net income per share – basic

0.23

0.15

Non-GAAP net income per share – diluted

0.23

0.15

Notes:

Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows:

For the Year Ended May 31

2024

2023

(Unaudited)

USD

Cost of revenues

19,967

2,749

Selling and marketing

26,052

5,750

General and administrative

76,439

81,289

Total

122,458

89,788

Note 2: Each ADS represents ten common shares.

NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

For the Year Ended May 31

2024

2023

(Unaudited)

USD

Net cash provided by operating activities

1,122,643

971,008

Net cash used in investing activities

(1,153,922)

(37,411)

Net cash used in financing activities

(160,438)

(246,867)

Effect of exchange rate changes

(24,606)

(75,830)

Net change in cash, cash equivalents and restricted cash

(216,323)

610,900

Cash, cash equivalents and restricted cash at beginning of
period

1,805,427

1,194,527

Cash, cash equivalents and restricted cash at end of
period

1,589,104

1,805,427

View original content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-ended-may-31-2024-302210902.html

SOURCE New Oriental Education and Technology Group Inc.

Technology

Midea Brings “Simply ideal” to Life at IFA 2026

Published

14 minutes ago

September 4, 2026

BERLIN, Sept. 4, 2026 /PRNewswire/ — At IFA 2026, Midea brings its “Simply ideal” vision to life through the latest innovations, designed to bring greater intelligence, comfort, efficiency and ease to the home.

The exhibition also highlights Midea’s new five-year partnership with FC Barcelona.

The Midea Suites: Ways to Master the Home

The new SMART MASTER showcases Midea’s AI-powered home ecosystem. The AI Agent enables more natural, intuitive interaction with appliances across daily household scenarios. Midea Robot brings AI into the physical world through cooking, cleaning, laundry, care and whole-home control.

At IFA 2026, Midea unveiled its new AI voice-controlled air conditioner. Cliff Liang, General Manager of Enterprise Commercial for the China Region at Microsoft, joined the Midea event and shared Microsoft’s perspective on the next phase of AI.

AI ECOMASTER coordinates appliances and connected systems through intelligent power management. It learns household routines and adapts to changing needs for greater flexibility and comfort.

For homes where every inch counts, SPACE MASTER delivers more usable capacity within the same external dimensions, as demonstrated by the refrigerator’s expanded storage.

Alongside the MASTER Suites, the BUILT-IN Series includes the Milanese-inspired Ispira Series, combining cohesive design with intelligent functionality for an integrated cooking experience.

The Midea Scenarios: Innovation for Everyday Living

Comfort begins with the air around us. Midea’s R290 Series responds to growing demand for efficient cooling. It combines advanced compressor and safety-sealing technologies with ultra-low-GWP R290 refrigerant, delivering around 10% higher energy efficiency. Residential applications include H-Pack and PortaSplit, with PortaSplit set to adopt R290 in 2027.

In the kitchen, technology simplifies daily routines, from food storage and cooking to after-meal care. The Visionary Series refrigerators make food easier to see and access through GlassVision, hands-free lighting and clear, even illumination.

The InfiniteFit Series hobs feature an ultra-slim design for seamless integration into European kitchens, while OmniFlex enables flexible cookware placement. The PizzaPro built-in oven combines rapid heating with an 81L cavity, balancing speed with capacity.

After the meal, the Tri-GreenApex System brings washing, drying and storage together while using around 50% less energy than required for Europe’s highest A rating.

Laundry brings its own everyday needs. Midea’s family laundry room concept combines multi-drum solutions for different garment-care needs, allowing separate loads to run at the same time. The OMNI SERIES offers flexible combinations to suit different household routines.

Tobin Richardson, President and CEO of the Connectivity Standards Alliance, introduced Matter at Midea’s booth, highlighting its open, secure, interoperable framework and Midea’s role in advancing smart appliance connectivity.

Partnership and Brand Portfolio

At IFA 2026, Midea celebrated its partnership through an immersive FC Barcelona experience at its booth. FC Barcelona legend Carles Puyol made a special appearance, sharing insights from his career on leadership, teamwork and the pursuit of excellence. His presence reflected Midea and FC Barcelona’s shared commitment to world-class performance.

As part of Midea Group’s multi-brand portfolio, TEKA presents its latest innovations under the “Meaningful Experiences Through Technology” concept, including its new coffee machine range, the In-Line Series and Laundry Care solutions, bringing European design and functionality to modern living.

About Midea and Midea Group

Midea is one of over 10 brands within the Smart Home Business of Midea Group.

Founded in 1968, Midea Group is a leading global technology company and one of the world’s largest home appliance manufacturers. As a Fortune Global 500 enterprise, it ranked No. 231 in 2026. The Group has streamlined its core operations into seven high-growth business pillars to drive future growth: Smart Home, Industrial Technologies, Building Technologies, KUKA, New Energy, Midea Healthcare, and ANNTO Logistics.

www.midea-group.com

www.midea.com

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SOURCE Midea Group

Technology

Cheche Group Reports First Half 2026 Unaudited Financial Results

Published

14 minutes ago

September 4, 2026

BEIJING, Sept. 4, 2026 /PRNewswire/ — Cheche Group Inc. (NASDAQ: CCG) (“Cheche”, “the Company” or “we”), China’s leading auto insurance technology platform, today announced its unaudited financial results for the six months ended June 30, 2026.

Key Business Highlights

Partnerships with New Energy Vehicle (NEV) companies numbered 18 in the first half 2026 and led to 1,049,000 policies with corresponding written premium of RMB3.2 billion (US$472.0 million), representing an increase of 29.5% and 23.7%, respectively, compared to the prior-year period.

Net revenues decreased 34.4% to RMB885.0 million (US$130.4 million) as we have been proactively restructuring business portfolio to focus on high-margin segments.

Gross margin increased to 6.5% from 4.9% in the prior-year period, driven by an improved business mix, with NEV premiums increasing to 31.0% of total written premiums from 22.5% in the prior-year period.

Management Comments

“In the first half of 2026, Cheche made meaningful progress in reshaping our business for the next phase of growth,” said Lei Zhang, Founder, CEO and Chairman of Cheche. “We made deliberate choices to shift away from lower-margin, less strategic revenue streams and concentrate our resources on the business and capabilities where we believe we can create greater long-term value through technology, data and differentiated solutions. As a result, while net revenues declined 34.4% to RMB885.0 million, gross margin expanded by 160 basis points, reflecting a fundamentally stronger revenue mix.

“This transformation is now visibly expressed in our recent launch of the ABAO Agent Family – a suite of five specialized AI agents, built on Cheche’s proprietary vertical insurance large language model that spans the full NEV insurance lifecycle from dynamic pricing to claims processing. Together with our Cheche Score and proprietary NEV intelligent pricing model, ABAO marks our strategic evolution from a digital insurance transaction platform into an AI-driven insurance infrastructure provider. These capabilities are deepening our relationships with insurance carrier partners, improving the economics of our core operations and expanding the ways in which our technology can be applied.

“Transformation requires discipline, and we remain focused on streamlining operations, strengthening our foundation and directing resources toward our highest-value opportunities. We are also exploring ways to broaden our platform and enhance the scale and resilience of our operations as we enter the next phase of our evolution. Our objective is to build a more diversified enterprise with the flexibility to pursue compelling opportunities while maintaining disciplined execution and a clear focus on shareholder value.”

Unaudited First Half Year 2026 Financial Results

Net Revenues were RMB885.0 million (US$130.4 million), representing a 34.4% year-over-year decrease from the prior-year period as a result of the restructuring of our business portfolio.

Cost of Revenues decreased 35.5% year-over-year to RMB827.6 million (US$122.0 million) from the prior-year period due to a decline in net revenues and higher gross margin driven by the restructuring of our business portfolio.

Gross profit decreased 12.6% to RMB57.5 million (US$8.5 million) compared to the prior-year period due to the decrease of net revenues, partially offset by the improved business structure which led to a higher gross margin.

Selling and Marketing Expenses decreased 4.3% to RMB35.6 million (US$5.3 million) from RMB37.3 million in the prior-year period, mainly due to the decrease in staff cost and share-based compensation expenses. Excluding share-based compensation expenses, selling and marketing expenses were RMB34.5 million (US$5.1 million), a decrease of 2.5% compared to the prior-year period.

General and Administrative Expenses increased 55.4% to RMB57.9 million (US$8.5 million) from RMB37.3 million for the prior-year period due to the recognition of RMB35.1 million (US$5.2 million) specific allowance of credit losses for long-aged and high-risk receivables, partially offset by the decrease in share-based compensation expenses and professional service fees. Excluding share-based compensation expenses, general and administrative expenses increased 112.7% year over year, from RMB26.6 million to RMB56.5 million (US$8.3 million).

Research and Development Expenses decreased 21.0% to RMB14.5 million (US$2.1 million) from RMB18.3 million in the prior-year period, mainly due to the decrease in staff costs and professional service fees. Excluding share-based compensation expenses, research and development expenses decreased 21.0% to RMB14.1 million (US$2.1 million) from RMB17.8 million in the prior-year period.

Total Operating Expenses increased 16.4% to RMB108.0 million (US$15.9 million) from RMB92.8 million in the prior-year period, mainly due to the recognition of specific allowance of credit losses for long-aged and high-risk receivables, partially offset by the decrease in staff cost, share-based compensation expenses and professional service fees. Excluding share-based compensation expenses, total operating expenses increased 31.8% to RMB105.1 million (US$15.5 million) from RMB79.8 million in the prior-year period.

Net Loss increased 72.3% to RMB44.1 million (US$6.5 million) from RMB25.6 million in the prior-year period. Excluding non-GAAP expenses, the Adjusted Net Loss increased 257.7% to RMB37.7 million (US$5.6 million) from RMB10.5 million in the prior-year period.

Net Loss Per Share, basic and diluted, was RMB18.57 (US$2.74), increasing RMB7.68 from a loss of RMB10.89 for the prior-year period.

Adjusted Net Loss Per Share, basic and diluted, was RMB15.89 (US$2.34), increasing RMB11.4 from a loss of RMB4.49 for the prior-year period.

First Half Year 2026 Business Developments

On January 29, 2026, Cheche announced that Volkswagen (Anhui) Digital Sales and Services Co., Ltd (“DSSO”), Beijing Cardif Airstar Property & Casualty Insurance Co., Ltd. (“Cardif Airstar Insurance”), and Cheche Group Inc. held a strategic cooperation signing ceremony on January 29, 2026. They will collaborate to develop digital insurance services for Volkswagen owners and expand into areas such as intelligent pricing, intelligent-driving insurance, and non-auto insurance. The partnership aims to establish a digital financial and insurance service system covering the full lifecycle of electric vehicle ownership.

On May 28, 2026, Cheche announced the official launch of its proprietary, AI large model-driven intelligent connected vehicle pricing product. Targeting China’s expanding market of approximately 20 million intelligent connected NEVs, the platform utilizes advanced machine learning and multi-dimensional data analytics. By analyzing real-time driving behavior, usage patterns, and localized risk scenarios, the technology delivers precise, personalized insurance pricing tailored to individual drivers.

On June 22, 2026, Cheche announced the official launch of “ABAO Agent,” an AI-powered intelligent underwriting agent. ABAO Agent is now commercially deployed in auto insurance renewal scenarios at scale. Its 24/7 autonomous capabilities allow the agent to independently execute the complete renewal workflow—customer outreach, needs identification, policy follow-up, and conversion—functions that previously required dedicated human teams. The result is a reduction in labor and operational costs for carrier partners, with no compromise to service continuity.

On June 24, 2026, Cheche announced the launch of “Cheche Score,” a proprietary AI-powered dynamic pricing solution for NEV insurance. Cheche Score is fully commercialized and functioning across multiple cities in China. Cheche has entered into dedicated AI-powered renewal cooperation agreements with several of China’s largest insurance carriers, jointly building a digital operating ecosystem that connects intelligent pricing, precision renewal, and closed-loop customer service.

On September 1, 2026, Cheche announced the launch of the ABAO Agent Family, a suite of five specialized AI agents built on Cheche’s proprietary vertical insurance large language model. Spanning the full NEV insurance lifecycle, from dynamic pricing optimization to claims processing and specialized diagnostics, the ABAO Agent Family marked Cheche’s strategic evolution from a digital insurance transaction platform into an AI-driven insurance infrastructure provider.

Balance Sheet

As of June 30, 2026, the Company had RMB173.7 million (US$25.6 million) in total cash and cash equivalents, restricted cash and short-term investments.

Business Outlook

For the full year 2026:

Cheche is revising its Net Revenue guidance to an approximate range of RMB1.5 billion to RMB1.8 billion, from the previously announced approximate range of RMB3.0 billion to RMB3.2 billion, to reflect the impact of its ongoing business restructuring.

Cheche is revising its NEV Written Premiums Placed guidance to an approximate range of RMB8.0 billion to RMB10.0 billion from the previously announced approximate range of RMB10.5 billion to RMB 12.0 billion, to reflect the change of NEV sales in the domestic market.

Cheche ceased using Total Written Premiums Placed as a key business performance indicator as a result of its strategic pivot.

Cheche is estimating an Adjusted Net Loss range of RMB42.7 million to RMB47.4 million for the full year 2026, due primarily to the ongoing restructuring.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the reader’s convenience. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.7851 to US$1.00, the exchange rate on June 30, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referenced could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

About Cheche Group Inc.

Established in 2014 and headquartered in Beijing, China, Cheche is a leading auto insurance technology platform with a nationwide network of around 101 branches licensed to distribute insurance policies across 25 provinces, autonomous regions, and municipalities in China. Capitalizing on its leading position in auto insurance transaction services, Cheche has evolved into a comprehensive, data-driven technology platform that offers a full suite of services and products for digital insurance transactions and insurance SaaS solutions in China. Learn more at https://www.chechegroup.com/en.

Cheche Group Inc.:

IR@chechegroup.com

Crocker Coulson
crocker.coulson@aummedia.org
(646) 652-7185

Non-GAAP Financial Measures

Cheche has provided non-GAAP financial measures in this press release that have not been prepared in accordance with generally accepted accounting principles (GAAP) in the United States.

Cheche uses adjusted selling and marketing expenses, adjusted general and administrative expenses, adjusted research and development expenses, adjusted total operating expenses, adjusted net loss, and adjusted net loss per share, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes.

Cheche defines adjusted total operating expenses as total operating expenses adjusted for the impact of share-based compensation. Cheche defines adjusted net loss as net loss adjusted for the impact of share-based compensation expenses, amortization of intangible assets, and changes in fair value of amounts due to a related party related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), and change in fair value of warrants. Adjusted net loss per share, basic and diluted, is calculated as adjusted net loss divided by weighted-average ordinary shares outstanding.

Cheche believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the impact of share-based compensation expenses, amortization of intangible assets related to acquisition, and change in fair value of amounts due to a related party related to the acquisition of Cheche Insurance Sales & Services Co., Ltd. (previously named Fanhua Times Sales and Service Co., Ltd), and change in fair value of warrants. Cheche believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects, and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other measure of performance or as an indicator of Cheche’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Cheche encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Cheche mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance.

Safe Harbor Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements also include, but are not limited to, statements regarding projections, estimations, and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, the Company’s advantages and expected growth, and its ability to source and retain talent, as applicable. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management and are not predictions of actual performance. These statements involve risks, uncertainties, and other factors that may cause the Company’s actual results, levels of activity, performance, or achievements to materially differ from those expressed or implied by these forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. The forward-looking statements in this press release represent the views of the Company as of the date of this press release. Subsequent events and developments may cause those views to change. Except as may be required by law, the Company does not undertake any duty to update these forward-looking statements.

Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands, except for share and per
share data)

December 31,

June 30,

2025

2026

RMB

USD

ASSETS

Current assets:

Cash and cash equivalents

144,511

131,730

19,415

Restricted cash

5,000

41,779

6,157

Short-term investments

226

Amounts due from related parties

–

14,303

2,108

Accounts receivable, net

1,145,752

665,931

98,146

Prepayments and other current assets

60,059

64,256

9,470

Total current assets

1,355,548

918,225

135,329

Non-current assets:

Restricted cash

21,086

–

Property, equipment and leasehold improvement, net

831

893

132

Intangible assets, net

3,850

2,800

413

Right-of-use assets

6,453

5,016

739

Goodwill

84,609

12,470

Other non-current assets

2,477

1,981

292

Total non-current assets

119,306

95,299

14,046

Total assets

1,474,854

1,013,524

149,375

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

842,728

430,847

63,499

Short-term borrowings

80,500

98,190

14,471

Contract liabilities

1,044

1,238

182

Salary and welfare benefits payable

83,686

79,321

11,690

Tax payable

22,657

18,320

2,700

Amounts due to a related party

50,626

52,949

7,804

Accrued expenses and other current liabilities

19,206

20,167

2,974

Short-term lease liabilities

4,727

3,510

517

Total current liabilities

1,105,174

704,542

103,837

Non-current liabilities:

Deferred tax liabilities

963

700

103

Long-term borrowings

9,800

–

Long-term lease liabilities

801

604

Deferred revenue

1,432

211

Warrant

1,512

1,544

228

Total non-current liabilities

14,508

4,280

631

Total liabilities

1,119,682

708,822

104,468

Ordinary shares

Treasury stock

(1,025)

(151)

Additional paid-in capital

2,550,197

2,553,093

376,279

Accumulated deficit

(2,192,846)

(2,236,903)

(329,679)

Accumulated other comprehensive loss

(1,160)

(10,469)

(1,543)

Total the Company’s shareholders’ equity

355,172

304,702

44,907

Total liabilities and shareholders’ equity

1,474,854

1,013,524

149,375

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (All amounts in
thousands, except for share and per share data)

For the Six Months Ended

June 30,

2025

2026

RMB

USD

Net revenues

1,348,652

885,048

130,440

Cost of revenues

(1,282,869)

(827,573)

(121,969)

Gross profit

65,783

57,475

8,471

Operating expenses:

Selling and marketing expenses

(37,250)

(35,637)

(5,252)

General and administrative expenses

(37,255)

(57,902)

(8,534)

Research and development expenses

(18,293)

(14,457)

(2,131)

Total operating expenses

(92,798)

(107,996)

(15,917)

Operating loss

(27,015)

(50,521)

(7,446)

Other expenses:

Interest income

1,669

1,112

164

Interest expense

(1,213)

(1,396)

(206)

Foreign exchange gains

893

6,630

977

Government grants

1,295

2,839

418

Changes in fair value of warrant

1,114

(80)

(12)

Changes in fair value of amounts due to related party

(2,052)

(2,330)

(343)

Others, net

(454)

(552)

(81)

Loss before income tax

(25,763)

(44,298)

(6,529)

Income tax benefit

195

241

Net loss

(25,568)

(44,057)

(6,493)

Other comprehensive loss:

Foreign currency translation adjustments, net of nil tax

(1,302)

(9,316)

(1,373)

Fair value changes of amounts due to related party due to own credit risk

(453)

Total other comprehensive loss

(1,755)

(9,309)

(1,372)

Total comprehensive loss

(27,323)

(53,366)

(7,865)

Net loss per ordinary shares outstanding(1)

Basic

(10.89)

(18.57)

(2.74)

Diluted

(10.89)

(18.57)

(2.74)

Weighted average number of ordinary shares outstanding(1)

Basic

2,348,249

2,372,032

Diluted

2,348,249

2,372,032

(1) The shares and per share information are presented on a retroactive basis to reflect the 35-for-1 share consolidation of its Class A ordinary shares and Class B ordinary shares effective on July 20, 2026.

Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)

(All amounts in thousands)

For the Six Months Ended

June 30,

2025

2026

RMB

USD

Selling and marketing expenses

(37,250)

(35,637)

(5,252)

Add: Share-based compensation expenses

1,851

1,135

167

Adjusted Selling and marketing expenses

(35,399)

(34,502)

(5,085)

General and administrative expenses

(37,255)

(57,902)

(8,534)

Add: Share-based compensation expenses

10,674

1,354

200

Adjusted General and administrative expenses

(26,581)

(56,548)

(8,334)

Research and development expenses

(18,293)

(14,457)

(2,131)

Add: Share-based compensation expenses

512

407

Adjusted Research and development expenses

(17,781)

(14,050)

(2,071)

Total operating expenses

(92,798)

(107,996)

(15,917)

Adjusted total operating expenses

(79,761)

(105,100)

(15,490)

Reconciliation of GAAP Net Loss and Net Loss Per Ordinary Share to Non-GAAP Net Loss and Net Loss Per
Ordinary Share (Unaudited)

(All amounts in thousands, except for share data and per share data)

For the Six Months Ended

June 30,

2025

2026

RMB

USD

Net loss

(25,568)

(44,057)

(6,493)

Add: Share-based compensation expenses

13,040

2,896

427

Amortization of intangible assets related to acquisition

1,050

155

Changes in fair value of warrant

(1,114)

Changes in fair value of amounts due to related party

2,052

2,330

343

Adjusted net loss

(10,540)

(37,701)

(5,556)

Weighted average number of ordinary shares used in
computing non-GAAP adjusted net loss per ordinary
share(1)

Basic

2,348,249

2,372,032

Diluted

2,348,249

2,372,032

Net loss per ordinary share(1)

Basic

(10.89)

(18.57)

(2.74)

Diluted

(10.89)

(18.57)

(2.74)

Non-GAAP adjustments to net loss per ordinary share(1)

Basic

6.40

2.68

0.40

Diluted

6.40

2.68

0.40

Adjusted net loss per ordinary share(1)

Basic

(4.49)

(15.89)

(2.34)

Diluted

(4.49)

(15.89)

(2.34)

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SOURCE Cheche Group Inc.

Technology

GreenCore Solutions Corp. (GSC) AI Agent Stack Passes 24.5 Million Inbound AI Agent Transactions In 30 Days

Published

14 minutes ago

September 4, 2026

Brendan Farrugia, Co-founder and Director of GSC Joint Venture Company GSC Agentic Pty. Ltd., joins the GSC Board of Advisors

VANCOUVER, BC and SYDNEY, Sept. 4, 2026 /PRNewswire/ — GreenCore Solutions Corp. (“GSC” or the “Company”) today announced a record month for its AI Agent Stack and a new appointment to its Board of Advisors.

What GSC does. GSC builds AI Agents that sell Consumer Packaged Goods (CPG) and Beauty & Personal Care (BPC) brands. The agents are provided as a managed service — nothing to install, no tech department, no firewall to open, for the brand or the buyer. When a retailer’s buying AI Agent asks whether a brand is available and orderable in its market, the GSC AI Agent answers — in that market, for that brand — and elevates the order to the GSC Trading Deck for humans in the loop on order volume. This is AI Orderability (AIO): new volume added to a brand’s existing capacity and team, not a replacement for either.

The record. In August the AI Agent Stack soared past 24.5 million inbound AI Agent transactions — nine every second — up from 9.5 million per month in May, June and July. Cumulative transactions since May now reach 50 million+. In 1999, Amazon.com took four years to reach its first 10 million customers.

Where the traffic comes from. Half of it is European:

European Union → 11.76 million, led by France at 7.11 million, the Netherlands at 2.35 million, Germany at 777,570 and Belgium at 436,460United Kingdom → 167,200, with Switzerland at 241,450 and Norway at 136,530 alongsideUnited States → 4.9 millionCanada → 1.48 millionSingapore → 1.15 million, the first Asia-Pacific market past one million

Why Europe. The Stack was designed on Microsoft Azure France Central, GSC’s founding region and European home — the global hub of BPC brands and of ESG leadership. GSC AI Agents now run resident in 18 countries on 18 Azure regions, plus Google Cloud Spain:

Founding regions → France Central, Australia East, South Central US, Mexico CentralEurope → UK South, Switzerland North, West Europe (Netherlands), Germany West Central, Italy North, Spain Central, Poland CentralAmericas → Canada Central, Brazil SouthAsia-Pacific → Southeast Asia (Singapore), Korea Central, Japan East, Central IndiaMiddle East → UAE North

Speed for customers and lower compute for buyers: a retail buying AI Agent in Tokyo, Los Angeles or Paris is answered by a GSC AI Agent in Japan, America or France. Every transaction follows one path:

Powered by the CPG Knowledge GraphCarried with its ESG record on SM-ESG-CPGResolved for its jurisdiction → in France, at FR-ECO-10060Answered once → a human reviews and signs every order

Telephone codes and postal codes were built for letters and phone calls. GSC provides the codes for AI Agents.

The market it serves. Morgan Stanley Research estimates AI shopping agents will account for $190 billion to $385 billion of U.S. e-commerce by 2030, with groceries and consumer packaged goods already leading AI-driven purchases. Bain & Company puts the U.S. figure at $300 billion to $500 billion. GSC’s traffic is that market arriving for its BPC brand customers, in the category it was built for.

The appointment. Brendan Farrugia is the Sydney co-founder behind GSC Agentic Pty. Ltd., the joint venture that carries the GSC AI Agent Stack across Asia-Pacific, Latin America and Europe including the UK. He is Director, Co-Founder & General Partner of Unify Ventures and sits on the GSC Agentic International Board of Directors.

“We augment a brand’s sales with new volume — we don’t duplicate what its team already does, and we do it sustainably, with the compute resident in the buyer’s own market,” said Matthew Keddy, CEO, GreenCore Solutions Corp. “Twenty-four and a half million inbound AI Agent transactions a month is 34,000 sales calls an hour, nine every second, answered on eighteen Microsoft Azure hyperscale regions active today for our customers. No brand could staff that. We deliver that new volume with AI Agents on a managed-service basis — faster time to market, lower cost, available now.”

“Every BPC board I sit in front of asks the same question: when does the retail buying agent era commence,” said Brendan Farrugia. “It hit scale in August — twenty-four and a half million agents asked, and our AI Agent fleet delivered. The question a board should be asking now is whether its brands can be found and ordered when those retail AI Agent buyers ask — because if the answer is no, the brand becomes invisible to its primary customers.”

About GreenCore Solutions Corp. (GSC)

GreenCore Solutions Corp. (GSC) builds AI Agents that sell Beauty & Personal Care (BPC) brands into retail grocery procurement, powered by the CPG Knowledge Graph with SPARKS and delivered on MCP + A2A + ACM-68000. GSC carries 24.5 million+ inbound AI Agent transactions a month across 2 billion datapoints spanning 38,350 BPC brands, 15,688 retail grocery banners and 3.29 million points of sale in 50 global markets. GSC AI Agents run sustainable, transact safe, human in the loop, and live on Microsoft Azure and Google Cloud. GSC is a Microsoft AI Cloud Partner. D-U-N-S 24-336-6774. For more information visit gsc-em.com.

About GSC Agentic Pty. Ltd.
GSC Agentic Pty. Ltd., headquartered in Sydney, Australia, is the joint venture delivering the GSC AI Agent Stack across Asia-Pacific, Latin America and Europe including the UK. For more information visit gsc-global.ai

View original content:https://www.prnewswire.com/news-releases/greencore-solutions-corp-gsc-ai-agent-stack-passes-24-5-million-inbound-ai-agent-transactions-in-30-days-302870456.html

SOURCE GreenCore Solutions Corp.