Fenbi (2469) H2 2025 earnings summary

Executive summary

• FY2025 revenue was RMB2,676.6m, down 4.1% YoY; profit for the year was RMB198.1m versus RMB239.6m, while adjusted net profit was RMB281.2m versus RMB362.5m.

• Average monthly active users remained 9.1m; full-time employees were 7,005 versus 7,177 in 2024.

Financial highlights

• Gross profit fell 2.1% to RMB1,433.1m; gross margin rose to 53.5% from 52.5%.

• Operating profit was RMB188.8m versus RMB227.2m; profit before tax was RMB221.8m versus RMB262.0m.

• Selling and marketing expenses increased 2.1% to RMB644.0m and R&D expenses increased 10.6% to RMB244.6m, reflecting AI commercialization and development investment.

• Administrative expenses decreased 6.9% to RMB383.1m, primarily due to lower share-based payments; income tax expense increased 5.5% to RMB23.7m.

• Adjusted net profit, excluding share-based payments, was RMB281.2m versus RMB362.5m; basic and diluted EPS were RMB0.09 versus RMB0.11.

Outlook and guidance

• 2026 priorities include accelerating AI-powered online tutoring for teacher and other written exams, and expanding AI interview classes for civil servant and state-owned enterprise exams.

• AI interview courses are expected to support profitability in 2026; management expects the 2025 small-class recovery to continue, with pricing discipline and AI-driven student traffic supporting sales.

• Plans call for increased investment in technical talent, AI computing capacity, R&D projects, education applications and AI hardware, while maintaining high-quality teaching and services.