Group 1: AIA Group (友邦保险) - AIA Group achieved new business value of USD 4.31 billion in the first three quarters of 2025, representing a year-on-year increase of 18% (fixed exchange rate) and 19.3% (actual exchange rate) [5] - The new business value for Q3 2025 alone saw a significant year-on-year growth of 27.1% [5] - Annualized new premiums reached USD 7.49 billion, up 10.9% year-on-year, with Q3 2025 showing a 15.3% increase [5] - Total weighted premium income was USD 35.85 billion, reflecting a 14.2% year-on-year growth, with Q3 2025 also showing a 15.6% increase [5] Group 2: Keda Manufacturing (科达制造) - Keda Manufacturing reported revenue of CNY 12.61 billion and net profit attributable to shareholders of CNY 1.15 billion for the first nine months of 2025, marking increases of 47.2% and 63.5% year-on-year, respectively [6] - In Q3 2025, the company achieved revenue of CNY 4.42 billion, with net profit attributable to shareholders reaching CNY 400 million, reflecting year-on-year growth of 43.9% and 62.6% [6] Group 3: SANY Heavy Industry (三一重工) - SANY Heavy Industry reported revenue of CNY 65.74 billion for the first three quarters of 2025, a year-on-year increase of 13.6%, with net profit attributable to shareholders growing by 46.6% to CNY 7.14 billion [7] - The company's gross margin improved to 27.6%, up 0.7 percentage points year-on-year, while the net margin increased to 11.0%, up 2.4 percentage points [7] Group 4: BYD Electronics (比亚迪电子) - BYD Electronics reported Q3 2025 revenue of CNY 42.68 billion, a year-on-year decrease of 2.0%, with gross profit declining by 20.0% to CNY 2.946 billion, resulting in a gross margin of 6.9% [10] - The decline in revenue and gross profit was attributed to changes in product mix, particularly delays in the delivery of high-margin products for North American clients [10] - Net profit for Q3 2025 decreased by 9.0% to CNY 1.407 billion [10] Group 5: TAL Education Group (好未来) - TAL Education Group reported revenue of USD 861 million for FY26 Q2, representing a year-on-year increase of 39.1%, with net profit attributable to shareholders rising by 116.1% to USD 124 million [11] - The company's Non-GAAP net profit reached USD 136 million, up 82.7% year-on-year, indicating strong growth in both learning services and learning equipment revenue [11] Group 6: Wuliangye Yibin (五粮液) - Wuliangye Yibin's total revenue for the first three quarters of 2025 was CNY 60.945 billion, down 10.26% year-on-year, with net profit attributable to shareholders declining by 13.72% to CNY 21.511 billion [12] - In Q3 2025, total revenue fell sharply by 52.66% to CNY 8.174 billion, with net profit down 65.62% to CNY 2.019 billion [12] Group 7: BGI Genomics (华大智造) - BGI Genomics reported revenue of CNY 1.869 billion for the first three quarters of 2025, a slight decrease of 0.01%, while net loss attributable to shareholders improved by 74.20% to CNY 120 million [13] - In Q3 2025, revenue increased by 14.45% to CNY 755 million, with a significant reduction in net loss by 90.31% to CNY 16 million [13]

Investment Rating - The report upgrades the investment rating of the company to "Buy" [4] Core Insights - The company, TAL Education Group, reported strong business growth with revenue of $861 million for FY26Q2, representing a year-on-year increase of 39.1%. The net profit attributable to shareholders was $124 million, up 116.1% year-on-year, while Non-GAAP net profit reached $136 million, reflecting an 82.7% increase year-on-year [1][3] - The learning services and other segments showed robust growth, with offline small class and online value-added course revenues both increasing year-on-year. The deferred revenue at the end of FY26Q2 was $823 million, up 58.9% year-on-year, indicating strong demand resilience [1] - The learning device segment also saw continued growth, with revenue and sales increasing year-on-year and quarter-on-quarter, driven by new product launches and channel expansion. The average selling price of learning devices fell below 4000 yuan due to changes in product mix [2] Summary by Sections Financial Performance - For FY26Q2, the company achieved a gross margin of 57.0%, an increase of 0.7 percentage points year-on-year. The net profit margin was 14.4%, up 5.1 percentage points year-on-year, while Non-GAAP net profit margin was 15.8%, an increase of 3.8 percentage points year-on-year [3] - The company has adjusted its net profit forecasts for FY2026 to FY2028 to $224 million, $305 million, and $408 million respectively, with corresponding PE ratios of 33x, 24x, and 18x [4] Business Segments - The learning services segment is expected to continue expanding the number of learning centers, driving revenue growth, although the growth rate may gradually slow due to increasing base figures and a focus on sustainable growth [1] - The learning device segment's user engagement remains high, with an average weekly active rate of approximately 80% and daily usage time exceeding one hour per device [2] Market Position - TAL Education Group is positioned as a leader in the domestic education industry, with strong growth momentum in its learning devices, particularly the Xueersi learning machines. The company is expected to see significant performance improvement as profitability enhances [4]

Investment Rating - The report upgrades the investment rating of the company to "Buy" [4] Core Insights - The company reported strong business growth with revenue of $861 million for FY26Q2, representing a year-on-year increase of 39.1%, and a net profit of $124 million, up 116.1% year-on-year [1] - The learning services and other segments showed revenue growth, with deferred revenue at $823 million, a 58.9% increase year-on-year, indicating resilient demand [1] - The learning device segment also saw continued growth, benefiting from new product launches and channel expansion, despite a decline in average selling price due to product mix changes [2] - The company's non-GAAP net profit margin improved significantly, with a non-GAAP net profit of $136 million for FY26Q2, up 82.7% year-on-year [3] Summary by Sections Financial Performance - For FY26Q2, the company achieved a gross margin of 57.0%, a year-on-year increase of 0.7 percentage points, while the net profit margin rose to 14.4%, up 5.1 percentage points year-on-year [3] - The company expects to continue driving product and service upgrades to support long-term growth, despite a seasonal slowdown anticipated in FY26Q3 [3] Revenue and Profit Forecast - The revenue forecast for FY2026 to FY2028 has been revised upwards to $2.24 billion, $3.05 billion, and $4.08 billion respectively, with corresponding PE ratios of 33x, 24x, and 18x [4] - The company is positioned as a leader in the domestic education sector, with strong growth momentum in its learning devices [4] Market Data - The current stock price is $12.26, with a total market capitalization of $7.46 billion [6] - The stock has shown a 64.28% turnover rate over the past three months [6]

Core Insights - The latest quarterly financial reports from two major Chinese education companies, TAL Education (好未来) and New Oriental (新东方), reveal divergent growth paths and strategic focuses in the post-restructuring phase of the education industry [3][4]. Financial Performance - TAL Education reported a net income of $861 million for Q2 FY2026, marking a 39.1% year-over-year increase, while New Oriental's Q1 FY2026 net income was $1.523 billion, reflecting a 6.1% growth [1][2]. - TAL's operating profit reached $96.1 million with an operating margin of 11.2%, whereas New Oriental achieved an operating profit of $311 million and a margin of 20.4% [2][9]. - TAL's net profit surged by 116.1% to $124 million, while New Oriental's net profit slightly declined by 1.9% to $241 million [2][9]. Growth Strategies - Both companies are rapidly advancing in educational technology, with TAL emphasizing smart learning devices and digital teaching systems as key growth drivers [5][6]. - TAL's business model is shifting towards a subscription-based approach, aiming to extend the learning lifecycle beyond traditional classroom settings [7]. - New Oriental is focusing on a diversified revenue structure, with significant growth in adult and university exam services, as well as non-academic education [8]. Profitability and Efficiency - New Oriental maintains the highest profitability in the industry, with a focus on cost control and efficiency, while TAL is experiencing rapid profit growth driven by technology and product innovation [9][10]. - TAL's profit margin has doubled year-over-year, indicating a shift towards a technology-driven operational leverage model [10]. Capital Management - New Oriental exhibits a robust capital structure with over $5 billion in cash and equivalents, committing to return at least 50% of its net profit to shareholders [11][12]. - In contrast, TAL is investing heavily in technology and market expansion, reflecting a growth-oriented capital strategy [11][12]. Strategic Vision - TAL is positioning itself as a technology company, focusing on integrating quality educational content with smart devices, while New Oriental emphasizes brand trust and quality educational services [13][14]. - Both companies are addressing the challenge of redefining education in the era of AI and digitalization, albeit through different strategic lenses [14].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported Q2 FY2026 revenue of $861 million, a 39% year-over-year increase, and a net profit of $124 million, up 116% year-over-year [2][3]. - The strong performance is driven by both educational services and hardware sales, with educational services showing stable average selling prices (ASP) and hardware sales benefiting from the launch of new models [3]. - The deferred revenue balance increased by 59% year-over-year to $823 million, indicating positive enrollment trends for the upcoming fall semester [3]. Revenue and Profit Analysis - For FY2026, the company expects revenues of $3.013 billion, with a growth rate of 34%, and net profits of $163 million, reflecting a 93% increase [5][10]. - Non-GAAP operating profit for Q2 FY2026 was $108 million, a 67% increase year-over-year, with an operating margin of 12.5%, up 2.1 percentage points [3][10]. - The hardware segment is currently in an investment phase, focusing on operational metrics rather than immediate profitability [3]. Share Buyback Program - The company announced a new share repurchase plan on July 28, 2025, intending to buy back up to $600 million worth of stock over the next 12 months [4]. - From July 31 to October 29, 2025, the company repurchased approximately $135 million worth of shares, totaling around 4.2 million shares [4]. Financial Forecast - The company projects revenues for FY2026 to FY2028 at $3.013 billion, $3.892 billion, and $4.804 billion, respectively, with corresponding net profits of $163 million, $270 million, and $404 million [5][10]. - The expected P/E ratios for FY2026, FY2027, and FY2028 are 48x, 29x, and 19x, respectively [5].

Core Viewpoint - The company, TAL Education Group, reported significant growth in its financial performance for the second quarter of fiscal year 2026, indicating a strong recovery and positive momentum in its core business segments. Financial Performance Summary - For the second quarter of fiscal year 2026, net revenue reached $861.35 million, up from $619.36 million in the same period last year, representing a 39.1% increase [2][7]. - Operating profit for the same quarter was $96.10 million, compared to $47.62 million in the previous year, marking a 101.8% increase [2][7]. - Non-GAAP operating profit (excluding stock-based compensation) was $107.85 million, up from $64.52 million, reflecting a 67.2% increase [2][7]. - The net profit attributable to TAL was $124.08 million, significantly higher than $57.43 million in the prior year, showing a 116.1% increase [3][7]. - Non-GAAP net profit attributable to TAL was $135.84 million, compared to $74.33 million, an increase of 82.7% [3][7]. Half-Year Performance Summary - For the six months ending August 31, 2025, net revenue totaled $1.44 billion, up from $1.03 billion year-over-year, a growth of 39.0% [4][9]. - Operating profit for the half-year was $110.44 million, a substantial increase from $30.29 million, representing a 264.6% rise [5][9]. - Non-GAAP operating profit for the half-year was $132.96 million, compared to $65.40 million, reflecting a 103.3% increase [5][9]. - The net profit attributable to TAL for the half-year was $155.37 million, up from $68.83 million, a 125.7% increase [6][9]. - Non-GAAP net profit attributable to TAL for the half-year was $177.88 million, compared to $103.94 million, an increase of 71.1% [6][9]. Earnings Per ADS - Basic and diluted net profit per ADS for the second quarter were $0.22 and $0.21, respectively, compared to $0.09 in the previous year, marking increases of 129.6% and 130.0% [3][7]. - Non-GAAP basic and diluted net profit per ADS were both $0.24, up from $0.12, reflecting increases of 94.2% and 94.6% [8]. Strategic Focus - The company's President and CFO, Peng Zhuangzhuang, emphasized progress in core business areas, with revenue growth in quality courses and learning devices, supported by ongoing investments in user experience, technology, and educational innovation [9]. - The company aims to prioritize resources in core areas critical for long-term development, focusing on providing innovative learning solutions and quality educational content to a broader audience [9].

Group 1: U.S. Economic Policy Changes - The U.S. Senate voted to terminate President Trump's comprehensive tariff policy with a vote of 51-47, which includes ending the national emergency declared for global tariffs [1] - The Senate has also approved resolutions to cancel tariffs imposed on Canada and Brazil, but these resolutions face challenges in the House of Representatives [1] - The U.S. government shutdown has delayed the release of key economic data, including GDP, employment, and trade figures, leading to significant financial losses for businesses [2] Group 2: Stock Market Performance - On October 30, U.S. stock indices fell, with the Nasdaq down 377.33 points (1.57%), S&P 500 down 0.99%, and Dow Jones down 0.23% [3] - Meta Platforms saw a significant drop of over 11%, losing $214 billion in market value, marking its largest single-day decline in three years [3] - Tesla's market value decreased by $71.2 billion after a drop of over 4% in its stock price [3] Group 3: Company Earnings Reports - Amazon reported third-quarter net sales of $180.17 billion, exceeding expectations, but its operating profit fell short of forecasts [8] - Apple achieved fourth-quarter revenue of $102.47 billion, a 7.9% year-over-year increase, with net profit reaching $27.47 billion [10] - Apple's CFO announced significant investments in artificial intelligence and projected a gross margin of 47% to 48% for the upcoming quarter [11] Group 4: Market Reactions and Predictions - The market is reacting to the potential for a rate cut by the Federal Reserve, with a 74.7% probability of a 25 basis point cut in December [20] - Analysts suggest that the current economic conditions, including inflation and employment pressures, may lead to continued rate cuts [22] - The relationship between the Federal Reserve and the White House remains tense, with potential implications for monetary policy independence [22]

Exhibit 99.1 TAL Education Group Announces Unaudited Financial Results for the Second Fiscal Quarter Ended August 31, 2025 and Issues Notice of Annual General Meeting "We delivered progress across our core businesses in the second quarter of fiscal year 2026. Both our enrichment learning programs and learning devices contributed to revenue growth, sequentially and year-over-year. Ongoing investments in user experience, technology, and educational model innovations continue to drive this momentum." said Alex ...

Market Overview - US stock index futures are all down, with Dow futures down 0.32%, S&P 500 futures down 0.35%, and Nasdaq futures down 0.55% [1] - European indices also show declines, with Germany's DAX down 0.18%, UK's FTSE 100 down 0.67%, France's CAC40 down 1.04%, and the Euro Stoxx 50 down 0.61% [2][3] - WTI crude oil prices fell by 0.86% to $59.96 per barrel, while Brent crude also dropped by 0.86% to $63.77 per barrel [4] Economic and Policy Updates - The meeting between Chinese President and US President Trump emphasized that economic and trade relations should be a stabilizing force rather than a point of conflict [5] - Federal Reserve Chairman Jerome Powell's comments on interest rate cuts have led to skepticism in the market, with the 10-year US Treasury yield holding steady at 4.08% after a previous spike [5] - Powell also stated that the current AI investment wave is fundamentally different from the internet bubble, highlighting that AI companies are rooted in profitability and real economic activity [6] Company Earnings and Performance - Roblox reported a record Q3 with 151.5 million daily active users, a 70% year-over-year increase, and bookings of $1.92 billion, exceeding analyst expectations [7] - Microsoft exceeded Q1 expectations with revenues of $77.7 billion, driven by a significant increase in capital expenditures related to AI [7] - Alphabet's Q3 revenue was $102.35 billion, up 16% year-over-year, with strong performance in its cloud division [8] - Meta's Q3 net profit fell 83% due to a one-time tax expense, despite a 26% increase in revenue to $51.24 billion [9] - Starbucks reported Q4 revenue of $9.57 billion, a 5.5% increase, with same-store sales returning to positive growth [10] - Shell's Q3 profit exceeded expectations, supported by strong oil and gas trading performance despite weak energy prices [11] - TotalEnergies' Q3 adjusted net profit fell 2.3% to $3.98 billion, meeting analyst expectations [12] - Stellantis reported a 13% increase in Q3 revenue to €37.2 billion, but issued a cost warning that affected stock performance [13] - Samsung Electronics' semiconductor division saw a 79% increase in Q3 operating profit, driven by AI demand [14] Future Outlook - OpenAI is reportedly preparing for an IPO that could value the company at $1 trillion, with plans to raise at least $60 billion [5] - Eli Lilly raised its full-year guidance due to strong sales from its weight loss and diabetes drugs, with Q3 sales reaching $17.6 billion [17] - Tesla plans to showcase its Cybercab model at the Shanghai International Import Expo in November [19]

Financial Data and Key Metrics Changes - The company's net revenues for Q2 FY2026 were $861.4 million, representing a year-over-year increase of 39.1% in U.S. dollar terms and 38.1% in RMB terms [9][15][18] - Non-GAAP income from operations was $107.8 million, compared to $64.5 million in the same period last year [10][17] - Net income attributable to TAL was $124.1 million, up from $57.4 million year-over-year [18] Business Line Data and Key Metrics Changes - PAYU Small Class Enrichment Programs experienced growth driven by higher enrollments and expansion of offline learning centers [11][28] - The learning device business saw revenue growth both year-over-year and sequentially, with sales volumes increasing due to new product launches [14][35] - The average weekly active rate among learning device users was approximately 80%, with average data usage time per active device exceeding one hour [15] Market Data and Key Metrics Changes - The offline small class enrichment learning market is fragmented, making it challenging to assess total market size and demand [26] - The blended average selling price (ASP) for learning devices declined below RMB 4,000 due to changes in product mix [34] Company Strategy and Development Direction - The company is focused on long-term sustainable growth, investing in technology and content to enhance user engagement and learning outcomes [4][21] - A technology-driven approach is being adopted to improve online enrichment learning programs, integrating smart interactive features [12][35] - The company aims to strengthen its go-to-market capabilities in the learning device sector, which is still in its early stages [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential fluctuations in business performance due to seasonal factors but remains committed to long-term growth [21][23] - The company is prioritizing resource allocation to critical areas aligned with long-term strategic goals, focusing on sustainable growth rather than short-term financial results [22][23] Other Important Information - The company has authorized a new share repurchase program of approximately $600 million, with $134.7 million spent on repurchasing shares so far [19][50] - As of August 31, 2025, the company held approximately $3.5 billion in cash and cash equivalents, short-term investments, and restricted cash [50] Q&A Session Summary Question: Updates on PAYU Small Class Enrichment Programs - Management noted steady growth in PAYU Small Class Enrichment Programs, with revenue growth in line with learning center expansion and stable pricing for summer courses [26][28] Question: Performance of Learning Device Business - The learning device business saw increased sales volumes, but the blended ASP declined due to product mix changes; the company remains focused on long-term competitiveness [34][35] Question: Breakdown of Top Line and Bottom Line Performance - Management indicated that PAYU Small Class revenue growth is expected to taper off, while learning devices are still in early stages with fluctuating performance [43][45] Question: Share Repurchase Plan Outlook - The company will continue to execute the share repurchase program in line with market conditions, maintaining a long-term perspective on capital allocation [50]