Technology
New Oriental Announces Results for the First Fiscal Quarter Ended August 31, 2024
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2 years agoon
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BEIJING, Oct. 23, 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 first fiscal quarter ended August 31, 2024, which is the first quarter of New Oriental’s fiscal year 2025.
Financial Highlights for the First Fiscal Quarter Ended August 31, 2024
Total net revenues increased by 30.5% year over year to US$1,435.4 million for the first fiscal quarter of 2025. Total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, increased by 33.5% year over year to US$1,278.2 million for the first fiscal quarter of 2025.Operating income increased by 42.9% year over year to US$293.2 million for the first fiscal quarter of 2025. Operating income, excluding operating loss generated from East Buy private label products and livestreaming business, increased by 58.4% year over year to US$303.1 million for the first fiscal quarter of 2025.Net income attributable to New Oriental increased by 48.4% year over year to US$245.4 million for the first fiscal quarter of 2025.
Key Financial Results
(in thousands US$, except per ADS(1) data)
1Q FY2025
1Q FY2024
% of
change
Net revenues
1,435,416
1,100,021
30.5 %
Operating income
293,150
205,124
42.9 %
Non-GAAP operating income (2)(3)
300,003
244,755
22.6 %
Net income attributable to New Oriental
245,430
165,386
48.4 %
Non-GAAP net income attributable to New Oriental (2)(3)
264,732
189,318
39.8 %
Net income per ADS attributable to New Oriental – basic
1.49
1.00
48.6 %
Net income per ADS attributable to New Oriental – diluted
1.48
0.99
49.6 %
Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4)
1.61
1.15
40.0 %
Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4)
1.60
1.13
41.3 %
(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 First Fiscal Quarter Ended August 31, 2024
The total number of schools and learning centers was 1,089 as of August 31, 2024, an increase of 64 and 296 compared to 1,025 as of May 31, 2024 and 793 as of August 31, 2023, respectively. The total number of schools was 80 as of August 31, 2024.
Michael Yu, New Oriental’s Executive Chairman, commented, “We are delighted to start our fiscal year 2025 with a healthy top line growth of 30.5%. Total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, increased by 33.5% year over year. Our overseas test preparation and overseas study consulting business increased by approximately 18.8% and 20.7% year over year, respectively. In addition, the domestic test preparation business targeting adults and university students recorded a growth of approximately 30.4% year over year. Furthermore, our new educational business initiatives have all sustained strong momentum in this fiscal quarter, with a revenue growth of 49.8% year over year. Among these initiatives, our non-academic tutoring courses were offered in around 60 cities, attracting approximately 484,000 student enrollments in this fiscal quarter. Simultaneously, our intelligent learning system and devices were adopted in around 60 cities, with approximately 323,000 active paid users in this fiscal quarter. Backed by our strong educational resources, we will make consistent efforts in executing our long-term vision to strike a balance between healthy and sustainable growth, while improving profitability that is supported by our enhanced service quality and operating efficiency.”
Chenggang Zhou, New Oriental’s Chief Executive Officer, added, “During this fiscal quarter, we monitored our capacity expansion closely in alignment with the revenue growth and operating efficiency. As of the end of this fiscal quarter, the total number of schools and learning centers increased to 1,089. We made ongoing efforts in revamping our online-merge-offline teaching system and applying new technologies to enhance user experience of our educational offerings. Meanwhile, driven by our focus of “high-cost performance” and multi-channel strategy, we are pleased to see East Buy’s expanded private label offerings with 488 SKUs established across diverse categories in just two years. Our ventures across online platforms, livestreaming, and a strategic expansion into offline channels through partnerships with schools under New Oriental brand and other parties, share a common vision to reach a wider consumer base in pursuit of sustainable growth. In addition, It is encouraging to see our newly integrated tourism-related business achieving tremendous growth this fiscal quarter. We initiated high-quality overseas study tours as well as domestic research camps for K-12 and university students. We also operated a number of top-notch tourism offerings for all age groups, including the middle-aged and elderly individuals, across 30 featured provinces in China and internationally. We believe this new business line will start to contribute meaningful revenues from this fiscal year. “
Stephen Zhihui Yang, New Oriental’s Executive President and Chief Financial Officer, commented, “For a better reflection of New Oriental’s core educational businesses, the following operating margin numbers in this fiscal quarter excludes the financial results of East Buy’s private label products and livestreaming business. As aligned with our expectations in the previous quarter, we managed to deliver year over year improvement of operating margin for our core educational business this fiscal quarter. Our GAAP operating margin, excluding operating margin generated from East Buy private label products and livestreaming business for the quarter, was 23.7%, representing an improvement of 370 basis points year over year. Our Non-GAAP operating margin, excluding operating margin generated from East Buy private label products and livestreaming business for the quarter, was 24.4%, representing an improvement of 220 basis points year over year. We recorded a positive operating cash flow of US$183.2 million this quarter and by the end of this fiscal quarter, our cash and cash equivalents, term deposits and short-term investments totaled approximately US$4.9 billion. For the rest of this fiscal year, we strive for further elevating utilization and improving operational efficiency. We have great confidence in creating sustainable value for our customers and shareholders in the long term.”
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 and increasing the aggregate value of shares that the Company is authorized to repurchase from US$400 million to US$700 million. As of October 22, 2024, the Company repurchased an aggregate of approximately 9.8 million ADSs for approximately US$457.9 million from the open market.
Financial Results for the First Fiscal Quarter Ended August 31, 2024
Net Revenues
For the first fiscal quarter of 2025, New Oriental reported net revenues of US$1,435.4 million, representing a 30.5% increase year over year. Net revenues, excluding revenues generated from East Buy private label products and livestreaming business, were US$1,278.2 million, representing a 33.5% increase year over year. The growth was mainly driven by the increase in net revenues from our educational new business initiatives.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$1,142.3 million, representing a 27.6% increase year over year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were US$1,135.4 million, representing a 32.8% increase year over year. The increase was primarily due to the cost and expenses related to the accelerated capacity expansion for educational businesses and newly integrated tourism-related business.
Cost of revenues increased by 32.3% year over year to US$583.5 million.Selling and marketing expenses increased by 42.3% year over year to US$193.7 million.General and administrative expenses for the quarter increased by 15.0% year over year to US$365.1 million. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, were US$354.5 million, representing a 22.1% increase year over year.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by 82.7% to US$6.9 million in the first fiscal quarter of 2025.
Operating Income and Operating Margin
Operating income was US$293.2 million, representing a 42.9% increase year over year. Non-GAAP income from operations for the quarter was US$300.0 million, representing a 22.6% increase year over year.
Operating margin for the quarter was 20.4%, compared to 18.6% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 20.9%, compared to 22.3% 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$245.4 million, representing a 48.4% increase year over year. Basic and diluted net income per ADS attributable to New Oriental were US$1.49 and US$1.48, 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$264.7 million, representing a 39.8% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$1.61 and US$1.60, respectively.
Cash Flow
Net operating cash inflow for the first fiscal quarter of 2025 was approximately US$183.2 million and capital expenditures for the quarter were US$80.2 million.
Balance Sheet
As of August 31, 2024, New Oriental had cash and cash equivalents of US$1,147.0 million. In addition, the Company had US$1,513.8 million in term deposits and US$2,248.6 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 first quarter of fiscal year 2025 was US$1,733.1 million, an increase of 23.7% as compared to US$1,401.4 million at the end of the first quarter of fiscal year 2024.
Outlook for the Second 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 second quarter of the fiscal year 2025 (September 1, 2024 to November 30, 2024) to be in the range of US$851.4 million to US$871.8 million, representing year over year increase in the range of 25% to 28%.
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 October 23, 2024, U.S. Eastern Time (8 PM on October 23, 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/BI126999a0b5fd42c3987cd3a67645c9ba. It will automatically direct you to the registration page of “New Oriental FY2025 Q1 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/hmu6g3sb first. The replay will be available until October 23, 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, 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 second 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 August 31
As of May 31
2024
2024
(Unaudited)
(Audited)
USD
USD
ASSETS:
Current assets:
Cash and cash equivalents
1,146,959
1,389,359
Restricted cash, current
180,671
177,411
Term deposits, current
1,411,444
1,320,167
Short-term investments
2,248,568
2,065,579
Accounts receivable, net
34,461
29,689
Inventory, net
95,354
92,806
Prepaid expenses and other current assets, net
369,193
309,464
Amounts due from related parties, current
4,643
4,403
Total current assets
5,491,293
5,388,878
Restricted cash, non-current
23,521
22,334
Term deposits, non-current
102,327
169,203
Property and equipment, net
704,270
507,981
Land use rights, net
4,488
4,450
Amounts due from related parties, non-current
13,880
7,273
Long-term deposits
40,280
38,161
Intangible assets, net
17,596
18,672
Goodwill, net
105,757
103,958
Long-term investments, net
365,453
355,812
Deferred tax assets, net
71,626
72,727
Right-of-use assets
701,090
653,905
Other non-current assets
67,537
188,319
Total assets
7,709,118
7,531,673
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
101,989
105,681
Accrued expenses and other current liabilities
702,086
774,805
Income taxes payable
205,450
139,822
Amounts due to related parties
452
551
Deferred revenue
1,733,126
1,780,063
Operating lease liability, current
222,441
199,933
Total current liabilities
2,965,544
3,000,855
Deferred tax liabilities
16,605
19,407
Unsecured senior notes
14,403
14,403
Operating lease liabilities, non-current
473,627
447,994
Total long-term liabilities
504,635
481,804
Total liabilities
3,470,179
3,482,659
Equity
New Oriental Education & Technology Group Inc. shareholders’ equity
3,968,629
3,775,934
Non-controlling interests
270,310
273,080
Total equity
4,238,939
4,049,014
Total liabilities and equity
7,709,118
7,531,673
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 August 31
2024
2023
(Unaudited)
(Unaudited)
USD
USD
Net revenues
1,435,416
1,100,021
Operating cost and expenses (note 1)
Cost of revenues
583,521
441,218
Selling and marketing
193,692
136,121
General and administrative
365,053
317,558
Total operating cost and expenses
1,142,266
894,897
Operating income
293,150
205,124
(Loss)/Gain from fair value change of investments
(11,913)
7,248
Other income, net
39,087
34,728
Provision for income taxes
(77,551)
(62,530)
Gain/(Loss) from equity method investments
210
(8,496)
Net income
242,983
176,074
Add: Net loss/ (income) attributable to non-controlling interests
2,447
(10,688)
Net income attributable to New Oriental Education &
Technology Group Inc.’s shareholders
245,430
165,386
Net income per share attributable to New Oriental-Basic
(note 2)
0.15
0.10
Net income per share attributable to New Oriental-Diluted
(note 2)
0.15
0.10
Net income per ADS attributable to New Oriental-Basic
(note 2)
1.49
1.00
Net income per ADS attributable to New Oriental-Diluted
(note 2)
1.48
0.99
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 August 31
2024
2023
(Unaudited)
(Unaudited)
USD
USD
General and administrative expenses
365,053
317,558
Less: Share-based compensation expenses in
general and administrative expenses
10,598
27,232
Non-GAAP general and administrative expenses
354,455
290,326
Total operating cost and expenses
1,142,266
894,897
Less: Share-based compensation expenses
6,853
39,631
Non-GAAP operating cost and expenses
1,135,413
855,266
Operating income
293,150
205,124
Add: Share-based compensation expenses
6,853
39,631
Non-GAAP operating income
300,003
244,755
Operating margin
20.4 %
18.6 %
Non-GAAP operating margin
20.9 %
22.3 %
Net income attributable to New Oriental
245,430
165,386
Add: Share-based compensation expenses
7,389
31,180
Less: (Loss)/Gain from fair value change of
investments
(11,913)
7,248
Non-GAAP net income attributable to New Oriental
264,732
189,318
Net income per ADS attributable to New Oriental-
Basic (note 2)
1.49
1.00
Net income per ADS attributable to New Oriental-
Diluted (note 2)
1.48
0.99
Non-GAAP net income per ADS attributable to New
Oriental – Basic (note 2)
1.61
1.15
Non-GAAP net income per ADS attributable to New
Oriental – Diluted (note 2)
1.60
1.13
Weighted average shares used in calculating basic
net income per ADS (note 2)
1,648,666,786
1,651,203,885
Weighted average shares used in calculating
diluted net income per ADS (note 2)
1,659,034,134
1,665,318,691
Non-GAAP net income per share – basic
0.16
0.11
Non-GAAP net income per share – diluted
0.16
0.11
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as
follows:
For the Three Months Ended August 31
2024
2023
(Unaudited)
(Unaudited)
USD
USD
Cost of revenues
(3,146)
4,972
Selling and marketing
(599)
7,427
General and administrative
10,598
27,232
Total
6,853
39,631
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 August 31
2024
2023
(Unaudited)
(Unaudited)
USD
USD
Net cash provided by operating activities
183,210
335,786
Net cash used in investing activities
(295,156)
(208,166)
Net cash used in financing activities
(153,494)
(12,991)
Effect of exchange rate changes
27,487
(29,335)
Net change in cash, cash equivalents and restricted cash
(237,953)
85,294
Cash, cash equivalents and restricted cash at beginning
of period
1,589,104
1,805,427
Cash, cash equivalents and restricted cash at end of
period
1,351,151
1,890,721
View original content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-first-fiscal-quarter-ended-august-31-2024-302284327.html
SOURCE New Oriental Education and Technology Group Inc.
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This direction is in line with the policy trend towards the large-scale application of new energy heavy trucks. In June 2026, the Ministry of Transport and ten other departments publicly issued the Implementation Plan for Promoting the Large-scale Application of New Energy Heavy Trucks (《推動新能源重卡規模化應用實施方案》), which proposed that, by 2030, the penetration rate of new energy heavy trucks should reach 40%, with the number of new energy heavy trucks in operation exceeding 1.6 million units, 30,000 kilometres of zero-carbon road transportation corridors to be constructed, and approximately 3,000 heavy truck charging and battery swapping stations to be supported and guided for construction.
Industry penetration has also continued to increase. According to terminal actual sales data under the compulsory traffic accident liability insurance for motor vehicles cited by First Commercial Vehicle Network, 33,100 new energy heavy trucks were sold in Mainland China in September 2026, representing a year-on-year increase of 37%, with the monthly penetration rate reaching 50.28%. These figures exclude exports and military vehicles, while the cumulative penetration rate for the period from January to September 2026 was 38.10%.
Mr. Zeng Yan, Chairman and Chief Executive Officer of Ev Dynamics, said: “We hope to start with actual transportation scenarios, first establishing vehicle operations, energy replenishment efficiency and dispatching management for fixed routes, and subsequently validate the transport service-based charging model. The value of artificial intelligence does not lie in introducing another concept, but in helping to reduce empty running and waiting time, improve the utilisation rates of vehicles and energy replenishment facilities, and provide customers with more efficient and quantifiable green transportation services.”
In terms of business models, the Group will explore an expansion from vehicle sales into battery swapping services, intelligent dispatching and mobility operations, and study transportation service arrangements charged by mileage or ton-kilometre, with a view to reducing customers’ initial capital investment and barriers to technology adoption, while seeking to progressively establish recurring revenue. The specific cooperation models will be determined according to route conditions, cargo source stability, energy replenishment requirements and project economic benefits.
In terms of carbon emission management, the Group intends to progressively establish the capabilities for digital recording, accounting and reporting of transportation mileage, energy consumption and emission reduction results, thereby providing data support for customers’ green supply chain management.
On 30 October 2026, the Group participated in the “The Oujiang Dialogue — AI Plus Integrated Innovation Development Forum” (「甌江論道——『人工智能+』融合創新發展論壇」) held in Wenzhou, Zhejiang Province, and entered into a strategic agreement with the International Academician Science and Technology Innovation Centre. Building on this agreement, both parties will explore the alignment of scientific research resources and industry-academia-research cooperation in the fields of artificial intelligence, new energy and intelligent connected vehicles. The Group also took this opportunity to exchange views with universities, research institutions and industry representatives on technology applications and the integration of technologies with practical application scenarios.
Regarding participation in the development of the Qidu Island Urban Intelligent Connected Vehicle Demonstration Zone, Mr. Zeng Yan proposed three directions: First, to prioritise the selection of actual fixed routes and establish an agile, iteratively upgradeable closed-loop operating model; Second, to explore joint operations and evaluation mechanisms with local partners, using operational efficiency, service safety and actual emission reduction results as the basis for evaluation; and Third, based on the validation of application scenarios in Mainland China, to explore opportunities to connect with Hong Kong’s resources in finance, professional services, standards and international markets.
Mr. Zeng Yan added: “Ev Dynamics hopes to become not merely a vehicle supplier, but also a participant in application scenarios and a co-builder of long-term operational mechanisms. The application scenarios and supply chain capabilities in Mainland China, combined with Hong Kong’s professional services and international connections, are expected to create favourable conditions for external cooperation in green mobility solutions.”
Looking ahead, the Group will adopt Academician Chen Qingquan’s “Four Networks and Four Flows” theory as a methodological guide for its green mobility system, exploring the coordination of the energy network, transportation network, information network and humanity network, and promoting the integration of energy flow, information flow, material flow and value flow. The Group will also put these concepts into practice across specific aspects such as vehicle dispatching, energy replenishment management and transportation services. Through Zhongtong Kinetic Energy, the Group will steadily advance the validation of application scenarios involving battery swapping for new energy heavy trucks, intelligent logistics dispatching and green mobility operations, while exploring industry-academia-research cooperation in technologies such as autonomous driving for specific transportation scenarios, including “Xinjiang Coal Outbound Transport”. The relevant businesses will be progressively advanced based on actual project progress and commercial feasibility.
About Ev Dynamics (Holdings) Limited
Guided by its mission to ‘revolutionise transportation’, Ev Dynamics is evolving from a pioneer in the global new energy commercial vehicle market into an integrated solution provider of ‘new energy transport vehicles + energy infrastructure’. The Group has supported electrification across multiple countries and cities worldwide. In addition to the development and production of electric vehicles, including electric buses and purpose-built electric vehicles, the Group has expanded into integrated e-Mobility Solutions, offering in the PRC a comprehensive ecosystem that combines vehicle supply, operations, and value-added services such as charging infrastructure deployment.
For more information, please visit: https://evdynamics.com/zh-hant/
View original content:https://www.prnewswire.com/apac/news-releases/ev-dynamics-explores-ai-green-mobility-model-302931694.html
SOURCE Ev Dynamics
Technology
Tech-Access Canada welcomes Budget 2026 and stands ready to help more Canadian companies commercialise
Published
2 hours agoon
November 6, 2026By
OTTAWA, ON, Nov. 5, 2026 /CNW/ — Tech-Access Canada, the national network of Canada’s 70 Technology Access Centres (TACs), welcomes Budget 2026’s proposals to expand the Scientific Research and Experimental Development (SR&ED) tax incentive and renew federal clean technology support. TACs already help Canadian companies test new technologies, validate products and prepare for production. Tech-Access Canada’s proposed Canadian Innovation Pipeline Initiative would give more businesses year-round access to the teams and facilities already doing that work.
TACs already provide contract research services to businesses. Under existing Canada Revenue Agency rules, businesses can claim eligible costs for qualifying SR&ED work that TACs perform under contract on their behalf. The proposed expansion, estimated at $930 million over five years, would extend eligibility to certain commercialisation expenses. These include testing and validation required for initial regulatory approval or certification when directly linked to an eligible SR&ED project. Tech-Access Canada is ready to share its project experience as the agency develops sector-specific guidance.
“A tax credit can help a company recover eligible costs. Somebody still has to pay for the test first,” said Ken Doyle, Executive Director of Tech-Access Canada. “Some of the firms our TACs work with are still building the case for NRC IRAP funding or seeking their first outside investment. That test can be exactly what a customer or investor needs to see before they commit. Canada already has the people, the labs and the equipment. Let’s fund the projects that put them to work.”
The National Research Council of Canada’s Industrial Research Assistance Program (NRC IRAP) is Canada’s leading innovation assistance program for small and medium-sized businesses. Tech-Access Canada estimates that, through their partnership, NRC IRAP has funded approximately 75,000 hours of applied innovation and commercialisation support delivered by TACs over the past decade.
Tech-Access Canada welcomes the proposed renewal of NRC IRAP’s Clean Technology initiative. In the 2026 pilot, TACs moved quickly to complete 54 projects, helping companies advance from real-world prototype demonstration at technology readiness level (TRL) 7 toward commercial deployment at TRLs 8 and 9. TACs and their industry partners still have 161 projects scoped and ready to start as soon as a second round gets the green light.
“The clean technology pilot gave companies a chance to see how their technologies performed under real operating conditions,” said Jennifer Andersen, Vice-Chair of Tech-Access Canada and Executive Director, Applied Research & Innovation at Fleming College. “That evidence helps a business decide whether it’s ready to deploy or where it needs to do more work. We’d welcome the opportunity to extend that support to more companies.”
Since the tri-agency College and Community Innovation program began, the federal government has invested more than $1 billion through it in applied research. Tech-Access Canada thanks the Natural Sciences and Engineering Research Council of Canada for administering the program in collaboration with the Canadian Institutes of Health Research and the Social Sciences and Humanities Research Council. The $165 million committed in the 2026 Spring Economic Update will help sustain that capacity.
“Canada’s three granting councils and the Canada Foundation for Innovation have helped build applied research capacity that businesses can draw on across the country,” said Melanie Ross, Chair of Tech-Access Canada and Research Chair at SAIT’s Green Building Technology Access Centre. “We welcome the opportunity to build on those investments and give more Canadian companies access to that expertise.”
Tech-Access Canada estimates that the Canada Foundation for Innovation (CFI) has invested $500 million in federal funding for research infrastructure at colleges and cégeps over the past decade. At the College Fund’s 40% federal contribution ceiling, $500 million in capital funding would correspond to roughly $1.3 billion in eligible research infrastructure costs, with provinces, institutions and other partners contributing the balance. Dedicated, predictable infrastructure support for TACs would build on that partnership, keeping specialised facilities and equipment available on demand so TACs can respond quickly as new industry needs emerge.
“A pilot run can show a manufacturer whether a new process is worth scaling before it commits capital or changes its production line,” said Stephen Reaume, Treasurer of Tech-Access Canada and Director of Research at Lambton College. “TACs give smaller firms access to the equipment and expertise to run those trials and make decisions based on the results.”
Tech-Access Canada welcomes the opportunity to work with NRC research centres and federal departments such as Fisheries and Oceans Canada and Agriculture and Agri-Food Canada. TACs and federal research teams could bring complementary expertise and equipment to company projects, from testing new technologies for fisheries and aquaculture to piloting new processes for food and agricultural businesses.
“When a Canadian company needs specialised equipment or expertise, we can help connect it with the team best equipped to do the work,” said Jean-Philippe Jacques, Vice-Chair of Tech-Access Canada and Director of Innofibre. “Sharing facilities and coordinating equipment purchases can reduce duplication, give companies faster access to the tools they need and make better use of the research infrastructure Canadians have already invested in.”
Tech-Access Canada proposes to deliver the Canadian Innovation Pipeline Initiative through the TAC network. Interactive Visits would help firms decide what’s worth pursuing. Strategic Interactions would help them test and validate their technologies. TRLascend projects would help them demonstrate those technologies at pilot scale and prepare for production or deployment. The proposed $33 million annual investment would support about 3,000 engagements with Canadian businesses each year once fully implemented.
The TAC network already gives companies access to more than 2,100 applied R&D professionals, two million square feet of dedicated applied R&D space and approximately $500 million in specialised equipment. Tech-Access Canada also has intake and project delivery systems in use today. With approval and funding, it could start accepting Pipeline projects within 48 hours. Tech-Access Canada looks forward to working with the federal government on the proposal ahead of the Spring 2027 Economic Update.
Through Commercialisation Canada, Tech-Access Canada will share stories of Canadian companies bringing new products and processes to market with TAC teams working alongside them. Companies bring their ideas and knowledge of their customers. TACs help them test, refine and scale what they’ve developed. This hands-on accompaniment is a Canadian model of collaborative applied innovation and commercialisation that has drawn international attention, including from the OECD. More details will follow.
About Tech-Access Canada
Tech-Access Canada is the national network of Canada’s Technology Access Centres. TACs help businesses solve technical problems, develop and validate products and processes, and adopt new technologies. Companies retain their intellectual property.
SOURCE Tech-Access Canada
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