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    Alice Cai • Citigroup Global Markets Inc.

    Alice Cai's questions to New Oriental Education & Technology Group Inc (EDU) leadership

    Alice Cai's questions to New Oriental Education & Technology Group Inc (EDU) leadership • Q4 2025

    Question

    Alice Cai from Citigroup Inc. questioned the operating margin trend for FY26 for both the core and consolidated business. She also asked for details on the goodwill impairment related to the kindergarten business and inquired about any plans to spin off the cultural tourism segment.

    Answer

    Stephen Zhihui Yang, Executive President & CFO, stated that margin expansion is expected to continue in FY26, driven by ongoing cost controls and operating leverage. He explained the ~$60M goodwill impairment was a one-time charge for a kindergarten business acquired 18 years ago, prompted by policy changes. He noted the tourism business is still in an early phase of building its model, with no mention of a spin-off.

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    Alice Cai's questions to New Oriental Education & Technology Group Inc (EDU) leadership • Q4 2025

    Question

    Alice Cai from Citigroup Inc. inquired about the operating margin trend for fiscal 2026 for both the core and consolidated business, the details behind the goodwill impairment, and the company's strategic plans for its cultural tourism business.

    Answer

    Stephen Zhihui Yang, Executive President & CFO, stated that Q4 margin expansion was driven by operating leverage and cost controls, which he expects to continue benefiting margins in FY26. He explained the goodwill impairment was a one-time charge for a kindergarten business acquired 18 years ago. He added that the tourism business is still developing its model and its growth is expected to slow.

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    Alice Cai's questions to QuantaSing Group Ltd (QSG) leadership

    Alice Cai's questions to QuantaSing Group Ltd (QSG) leadership • Q3 2025

    Question

    Alice Cai asked about the expected revenue contribution from LETZVAN in Q4, how the company will balance resource allocation between the declining education business and new initiatives, and when overall revenue is projected to return to growth in fiscal year 2026.

    Answer

    CFO & Director Dong Xie stated that LETZVAN's results will be fully consolidated starting in Q4 and are expected to account for a 'very significant level' of total revenue. He explained that the decline in education revenue is a deliberate result of a strategic shift and that future investments will be strictly based on ROI. Xie expressed confidence that strong growth from the pop toy business will drive the group's overall revenue recovery, while growth in other segments will only resume once product-driven KPIs are met.

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    Alice Cai's questions to TAL Education Group (TAL) leadership

    Alice Cai's questions to TAL Education Group (TAL) leadership • Q2 2025

    Question

    Alice Cai asked about the company's upcoming investment plans in AI, specifically regarding the learning device sector, the AI product roadmap, and the required scale of investment.

    Answer

    Executive Zhuangzhuang Peng explained that TAL is leveraging its industry-specific data to train vertical AI models and develop applications. The product roadmap includes embedding AI functions into existing products (like correction for handwritten math answers in XBook) and creating new AI-native applications, such as a real-time Q&A tool that guides students step-by-step. Peng stated that past investments in compute infrastructure are adequate for now, and future AI investments will focus more on the application layer, talent, and data rather than on compute power.

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    Alice Cai's questions to Gaotu Techedu Inc (GOTU) leadership

    Alice Cai's questions to Gaotu Techedu Inc (GOTU) leadership • Q2 2024

    Question

    Alice Cai inquired about the progress of Gaotu's offline business expansion, asking for specifics on the number of cities entered, learning centers opened, and current student enrollment figures.

    Answer

    CFO Nan Shen explained that offline expansion has exceeded initial expectations due to strong brand recognition and rapid team assembly. She highlighted synergies with the online business in teacher recruitment and content sharing but noted that investments in localized content and separate operational systems have increased R&D expenses. Shen stated that specific operational metrics for the offline business will be disclosed once its revenue contribution becomes more significant.

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