Recently, Tianli International Holdings (01773.HK) released its financial results for the fiscal year 2024 ended August 31, 2024. The financial report shows that Tianli International Holdings has achieved steady improvement in overall performance, with its diversified businesses continuing to maintain high synergy and each business segment showing a steady growth trend.

Tianli International Holdings stated that the fiscal year 2024 results highlight the success of its transformation strategy. The company focuses on high school business investments, making it the core driving force for the company's development. At the same time, it strives for diversification, exploring educational value-added services such as comprehensive literacy courses, study tours, trusteeship, and logistics, and empowering the digital education track with AI. It continues to consolidate the "one trunk and multiple branches" education service system structure, laying a solid foundation for the company's long-term strategy.

Focusing on the 'one trunk and multiple branches' strategy to continuously stimulate business transformation momentum

Starting from 2021, Tianli International Holdings initiated a transformation strategy. After three years of expansion, it has formed a 'one trunk and multiple branches' business system with high school education as the mainstay, providing a series of other value-added services related to education. Fiscal year 2024 data indicate that the company's transformation strategy is continuously releasing growth momentum.

From market feedback, Tianli International Holdings' educational model and teaching quality have been welcomed and affirmed by more and more parents and students, as evidenced by the continuous and stable growth in student enrollment. As of November 2024, the group's school network covers 18 provinces, municipalities, and autonomous regions, providing comprehensive education services to 130,000 students in 58 schools, with a compound annual growth rate of approximately 30%. Among them, the number of high school students is 53,900, with a compound annual growth rate of approximately 46%. The "hardcore" quality of schooling continues to be maintained and improved, with 272 students being admitted to the top 50 universities globally in 2024, an increase of 114% from 127 students in 2023.

Regarding the future planning for its core business, Tianli International Holdings has stated that it will open 3-5 new high schools each year within five years, aiming to operate 40-50 high schools nationwide by 2027, providing comprehensive education services to 60,000-80,000 high school students.

In terms of diversified businesses, Tianli International Holdings' original Lida curriculum has developed into a comprehensive education curriculum system integrating comprehensive literacy courses, technology and traditional Chinese culture courses, and travel and study courses. The traditional Chinese culture and technology courses have been implemented in dozens of schools within the group, covering tens of thousands of students. The demand for travel and study courses has continued to grow with the recovery of the global tourism industry. In the 2024 academic year, the service volume of Tianli International's Lixing Research and Study Company exceeded 110,000 people. While fully covering self-operated schools, it also provides research and study services to a total of 15,000 people from more than 30 schools outside the group.

Empowering digital education with AI to explore future business growth points

While maintaining the growth of diversified businesses, Tianli International Holdings pays close attention to future market trends and continuously explores forward-looking technologies and fields, with particularly significant achievements in digital education.

Based on its 22-year teaching standardization management system and educational content, Tianli International Holdings has intensified its efforts in AI + big data technology research and development, completing the Qiming digital-driven teaching management cloud platform to realize full data integration for smart schools. Currently, the company has achieved multiple results in technological innovation, product development, and market expansion, completing the development of the AI teaching and research system, AI study companions, AI smart study rooms, and the new version of the Cloud School APP. Currently, Tianli International's Qiming Cloud School - AI Future Smart School has successfully connected to 107 schools, providing efficient services to over 250,000 teachers and students.

Recently, Sichuan Qiming Daren Technology Co., Ltd., a subsidiary of Tianli International Holdings, was selected as a high-tech enterprise, marking that Tianli International Holdings' investment in technological innovation and teaching research and development has been highly recognized by the government and society.

The education industry in which Tianli International Holdings operates is still in a growth phase. Data from Guotai Junan shows that the penetration rate of private high schools has continued to increase in recent years, steadily rising from 9.5% in 2010 to 18.3% in 2022. The current population of school-age children has not yet peaked. Calculations show that the market size of private ordinary high schools is expected to range from 150 billion to 218.5 billion yuan by 2025. Since 2022, the state has issued documents encouraging and regulating the establishment of private schools, which is expected to stimulate the vitality of private education enterprises and achieve positive growth.

Market potential and favorable policies provide long slopes and deep snow for private education. It can be predicted that with the growth in rigid educational demand and the popularization of digital education, Tianli International Holdings will continue to deepen its involvement in the field of comprehensive education services in the future. Through innovative and diversified services, it will provide students with more comprehensive growth support and a richer learning experience, ushering in sustained and stable growth.