Ruanyun Edai Technology Announces Financial Results for Fiscal Year 2025
MWN-AI** Summary
Ruanyun Edai Technology Inc. (NASDAQ: RYET), a prominent AI-driven education technology company based in China, reported its financial results for the fiscal year ending March 31, 2025. Key highlights reveal a 27% decrease in total revenues, dropping to $6.7 million, primarily due to declines in SmartHomework® platform development and digitalization services. However, revenue from SmartHomework® software customization and licensing sales surged significantly by 3117% and 5492%, respectively, alongside a 70.4% increase in SmartExam® services, attributable to international expansion following its IPO.
Despite the revenue downturn, the company's gross profit rose by 29.1% to $3.8 million, reflecting an improved gross margin of 56.7%, up from 32.1% in the previous year. This improvement was driven by a strategic shift toward higher-margin software services and aggressive cost management, leading to a narrowed net loss of $0.5 million compared to $2.1 million in FY2024.
CEO Yan Fu noted the company is adapting to policy changes in China's education sector by emphasizing AI-based services such as AI-OCR. The company also reported significant advancements in international markets, particularly with its Chinese language learning platform HanLink in Saudi Arabia.
Notably, total cash on hand decreased to $0.7 million by fiscal year's end, down from $1.1 million the previous year. Ruanyun remains optimistic about expanding its reach into sectors beyond K-12 education, aiming for the vocational and adult education markets, backed by improved profitability and operational efficiencies. The ongoing evolution of its service offerings positions Ruanyun favorably for long-term growth and shareholder value enhancement.
MWN-AI** Analysis
Ruanyun Edai Technology Inc. (NASDAQ: RYET) has reported a mixed bag of results for FY2025, showcasing both challenges and strategic growth opportunities. Despite a notable 27% decrease in total revenue to $6.7 million, driven largely by declines in its SmartHomework® platform and digitalization services, the company displayed remarkable growth in specific segments. Notably, software customization and content development surged by over 3,100%, and licensing revenues experienced an astounding increase of nearly 5,500%. This pivot suggests a strategic realignment towards higher-margin software solutions amidst adverse regulatory conditions in China.
Gross profit improved by 29% to $3.8 million, leading to a higher gross margin of 56.7%. This expansion in profitability reflects effective cost management, with the cost of revenue plummeting by over 53%. Additionally, while Ruanyun incurred a net loss of $0.5 million, this marks a significant improvement from the previous year's loss of $2.1 million.
Looking ahead, Ruanyun’s strategic moves—particularly the international expansion post-IPO and the introduction of AI-powered services like AI-OCR—position it favorably for future growth. Partnerships in regions like the Middle East provide avenues for revenue diversification and market penetration.
Investors should closely monitor Ruanyun's ability to sustain revenue growth in its higher-margin segments. The company's innovative adaptations amidst changing educational policies indicate a proactive approach that can cultivate long-term shareholder value. However, the dependency on regulatory stability in China’s education sector remains a key risk.
In summary, while the short-term revenue decline poses concerns, Ruanyun's strategic realignment towards AI-driven services and expansion into international markets positions it well for growth. A close watch on execution against its strategic plan will be essential for investor confidence.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
NANCHANG, China, July 31, 2025 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (“Ruanyun” or the “Company”) (NASDAQ: RYET), a leading AI-powered education technology company in China, today announced its financial results for the fiscal year ended March 31, 2025.
Key Financial Performance Highlights
- Revenue decreased by 27.0% to $6.7 million in FY2025, primarily due to declines in SmartHomework® platform development and digitalization services, despite significant increases in revenues from SmartHomework® software customization and content development, and licensing sales, which rose by 3117% and 5492%, respectively, along with a 70.4% growth in SmartExam® services driven by international expansion after the IPO.
- Gross profit rose 29.1% to $3.8 million, with gross margin improving from 32.1% to 56.7%, driven by a shift to higher-margin software services.
- As a result, net loss narrowed to $0.5 million from $2.1 million.
Yan Fu, Founder and CEO of Ruanyun, commented: “In FY2025, despite our decrease in total revenue, our software customization and content development segment saw strong growth. As policy changes in China impacted revenue from some of our services, we're strategically shifting towards higher-margin software and AI-based services like AI-OCR for greater efficiency and customer diversification.”
“Aggressive cost management significantly strengthened our financials. Cost of revenue dropped by more than 50% to approximately $2.9 million. This led to a substantial 29.1% gross profit increase to approximately $3.8 million, expanding our gross margin by 24.6% to 56.7%. Consequently, our net loss narrowed significantly to approximately $0.5 million in FY2025 from approximately $2.1 million a year earlier.”
“Looking ahead, our U.S. IPO has already enabled the international replication of our business model, demonstrated by services provided to Lorpzenst Innovations LLC in the United States. Furthermore, our advancements in AI-based digital technology services, particularly with AI-OCR, present broad applicability beyond our current focus. In Saudi Arabia our innovative Chinese language learning platform, HanLink, has already established local partnerships and we are structured to keep expanding in the Middle Eastern region. We believe that this technological foundation and our proven operational model position us well for potential expansion into vocational, postgraduate, and adult education sectors, as well as broader geographic markets. Ruanyun believes that these strategic shifts, combined with improved profitability and efficient cost management, lay the groundwork for sustainable long-term growth and enhanced value for our shareholders.”
Fiscal Year 2025 Financial Results
| For fiscal years ended March 31 | ||||||
| In USD Millions, except %, differences due to rounding. | 2025 | 2024 | Variances % | |||
| Total revenues | 6.7 | 9.2 | (27.0) | |||
| Cost of revenues | 2.9 | 6.2 | (53.5) | |||
| Gross profit | 3.8 | 2.9 | 29.1 | |||
| Loss from operations | (0.5) | (2.1) | (77.1) | |||
| Net loss | (0.5) | (2.1) | (75.3) | |||
Revenue
The Company’s revenue has primarily come from two main product lines: SmartExam® solution and SmartHomework® solution. These solutions generate revenue through six core streams: platform development, other testing services, software customization and content development, licensing, personalized exercise books and MOTK Pro, and digitalization services.
Revenue decreased by approximately $2.5 million, or 27.0%, from approximately $9.2 million in fiscal year 2024 to approximately $6.7 million in fiscal year 2025. The decrease in revenue primarily reflects a decrease in SmartHomework® solution digitalization services and SmartHomework® solution platform development, which was partially offset by an increase in SmartHomework® solution software customization and content development sales, as explained in details below.
The following table presents our revenue breakdown for the years indicated in absolute amounts:
| For the years ended March 31 | ||||
| USD million, except %, differences due to rounding | 2025 | 2024 | Variances % | |
| SmartExam® solution | 0.7 | 0.6 | 15.5 | |
| SmartHomework® solution | 6.0 | 8.6 | (29.8) | |
| Total revenues | 6.7 | 9.2 | (27.0) | |
SmartExam® Solution
- Platform Development revenue decreased by $97,758, or 31.5%, to $212,377 in FY2025 from $310,135 in FY2024, due to a smaller project scale, despite completing one project each year. Future growth hinges on capturing market share in China's computerized testing sector.
- Other Services revenue jumped 70.4%, from $265,707 in FY2024 to $452,881 in FY2025. This growth is largely due to our U.S. IPO enabling international business replication, notably with Lorpzenst Innovations LLC in the United States.
SmartHomework® Solution
- Platform Development revenue decreased significantly by approximately $2.6 million, or 81.8%, to $571,658 in FY2025 from approximately $3.1 million in FY2024. This decline was primarily due to the high capital risk of upfront hardware investments and extended repayment cycles for domestic government projects, leading us to reduce these constructions.
- Software Customization and Content Development revenue soared by 3117%, from $74,138 in FY2024 to approximately $2.4 million in FY2025. This surge was driven by standardized, rapidly replicable software products meeting customer needs and enabling robust market expansion in China.
- Licensing revenue increased by 5492%, from $2,748 to $153,666, despite a decrease from two subscribers in FY2024 to one in FY2025. This significant growth is attributable to our standardized question bank's broad applicability, extending our reach to higher-paying vocational education.
- Personalized Exercise Book and MOTK Pro revenue decreased by $55,040, or 62%, from $88,815 in FY2024 to $33,775 in FY2025. The drop was primarily due to changes in Chinese education policies prohibiting direct value-added service fees to students/parents, an impact we couldn't fully offset despite seeking new collaborations such as with telecom operators.
- Digitalization Services revenue decreased by approximately $2.4 million, or 45.5%, from approximately $5.3 million in FY2024 to approximately $2.9 million in FY2025. This was largely due to Chinese education policies limiting supplementary materials. However, this service is no longer a core focus of Ruanyun as the Company transitions to AI-based digital technology services using proprietary AI Optical Character Recognition (AI-OCR). This technology efficiently processes and converts various documents and images, enabling intelligent recognition, automated data collection and processing, automated data entry and verification, and customized OCR solutions.
Cost of Revenue
Cost of revenue decreased by approximately $3.3 million, or 53.5%, from approximately $6.2 million in FY2024 to approximately $2.9 million in FY2025. The decrease was primarily attributable to the Company’s plan to discontinue businesses with significant hardware investment, reduce cost input, and increase gross profit.
Gross Profit and Margin
Gross profit increased by $855,732, or 29.1%, from approximately $2.9 million in FY2024 to approximately $3.8 million in FY2025. Gross margin increased by 24.6% from 32.1% in FY2024 to 56.7% in FY2025.
This increase was primarily due to personnel optimization and a strategic shift towards higher-margin software development and service businesses, boosting overall gross profit.
Operating Expenses
Operating expenses decreased by $779,212, or 15.4%, from approximately $5.1 million in FY2024 to $4.3 million in FY2025. The decrease was primarily due to reductions in selling expenses and research and development expenses, partially offset by an increase in general and administrative expenses.
Selling Expenses
Selling expenses decreased by $583,900, or 24.7%, from approximately $2.4 million in FY2024 to approximately $1.8 million in FY2025. This decrease was primarily due to a reduction of $787,847 digital publishing expense, partially offset by an increase in consulting services. The decline in digital publishing expense aligns with the decrease in digitization service revenue.
General and Administrative Expenses
General and administrative expenses increased by $125,377, or 8.7%, from approximately $1.4 million in FY2024 to approximately $1.6 million in FY2025, while core administrative expenses remained flat.
Research and Development Expenses
Research and development expenses decreased by $320,689, or 25.6%, from approximately $1.3 million in FY2024 to approximately $0.9 million in FY2025. This decrease primarily resulted from lower employee compensation and benefits for early-stage research, reduced rent expense and other R&D expense reductions.
Net loss
Net losses for FY2025 and FY2024 were approximately $0.5 million and approximately $2.1 million, respectively. This was primarily attributable to the decrease in revenue not being able to cover costs and operating expenses.
Cash balances
As of March 31, 2025 and March 31, 2024, cash balances were approximately $0.7 million and $1.1 million, respectively.
Recent Developments
On July 11, 2025, Ruanyun announced partnership with the Confucius Institute at Prince Sultan University to bring its AI-powered HanLink platform to Saudi Arabia’s first national online Confucius Institute.
On May 20, 2025, Ruanyun announced the successful launch and pilot of its innovative Chinese language learning platform, HanLink via a four-week trial at Riyadh’s Education & Skills International School in Saudi Arabia.
On April 09, 2025, Ruanyun completed its initial public offering on the Nasdaq Stock Exchange, raising total gross proceeds of approximately $15 million, before deducting underwriting discounts and other offering expenses.
About Ruanyun Edai Technology Inc.
Ruanyun Edai Technology Inc. is an innovative AI-driven education technology company dedicated to transforming the K-12 education landscape in China. By leveraging proprietary AI-powered solutions, the Company provides intelligent learning tools, assessment platforms, and adaptive learning systems that enhance academic performance and streamline educational processes. Committed to modernizing education, the Company empowers schools, teachers, and students with cutting-edge teaching, learning, and evaluation tools through the integration of AI and the internet, fostering a more efficient and effective learning model. For more information, please visit: http://www.ruanyun.net/, https://investors.ruanyun.net/.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Investor Relations
WFS Investor Relations Inc.
Janice Wang
Managing Partner
Email: services@wealthfsllc.com
Tel: +1 628 283 9214
+86-1381-176-8559
| RUANYUN EDAI TECHNOLOGY INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| As of March 31, | |||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ | 673,397 | $ | 1,101,235 | |||
| Restricted cash | 125,561 | 126,194 | |||||
| Accounts receivable, net | 3,310,143 | 1,785,304 | |||||
| Due from related parties | 11,410 | 37,506 | |||||
| Inventories | 59,077 | 210,259 | |||||
| Deferred contract costs | 63,392 | 379,284 | |||||
| Prepaid expenses and other current assets | 35,923 | 269,339 | |||||
| Total current assets | 4,278,903 | 3,909,121 | |||||
| Non-current assets | |||||||
| Property and equipment, net | 460,314 | 405,365 | |||||
| Capitalized software development cost, net | 202,166 | 357,264 | |||||
| Deferred offering Cost | 838,804 | 441,067 | |||||
| Long term deposits | 94,811 | 105,917 | |||||
| Total non-current assets | 1,596,095 | 1,309,613 | |||||
| Total assets | $ | 5,874,998 | $ | 5,218,734 | |||
| LIABILITIES | |||||||
| Current liabilities | |||||||
| Short-term bank loans | $ | 4,408,340 | $ | 2,471,374 | |||
| Accounts payable | 1,075,456 | 1,813,561 | |||||
| Deferred revenue | 135,737 | 434,717 | |||||
| Due to related parties | 43,289 | 63,403 | |||||
| Accrued expenses and other liabilities | 718,327 | 406,540 | |||||
| Total Current Liabilities | 6,381,149 | 5,189,595 | |||||
| Total non-current liabilities | - | - | |||||
| Total liabilities | 6,381,149 | 5,189,595 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| EQUITY | |||||||
| Ordinary shares (US$0.0002 par value, 5,000,000,000 shares authorized, 30,000,004 shares issued and outstanding as of March 31, 2025 and 2024) | 6,000 | 6,000 | |||||
| Additional paid-in capital | 15,210,301 | 15,210,301 | |||||
| Accumulated deficit | (15,630,351 | ) | (15,233,789 | ) | |||
| Accumulated other comprehensive income | 252,250 | 257,751 | |||||
| Total Ruanyun Group stockholders' equity | (161,800 | ) | 240,263 | ||||
| Non-controlling interest | (344,351 | ) | (211,124 | ) | |||
| Total Equity | (506,151 | ) | 29,139 | ||||
| Total liabilities and equity | $ | 5,874,998 | $ | 5,218,734 | |||
| RUANYUN EDAI TECHNOLOGY INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||
| For the Years Ended March 31, | For the Years Ended March 31, | ||||||
| 2025 | 2024 | ||||||
| Revenues from third parties | $ | 6,685,387 | $ | 9,154,072 | |||
| Total revenues | 6,685,387 | 9,154,072 | |||||
| Cost of revenues | (2,892,516 | ) | (6,216,933 | ) | |||
| Gross profit | 3,792,871 | 2,937,139 | |||||
| Operating expenses | |||||||
| Selling and marketing expenses | (1,784,837 | ) | (2,368,737 | ) | |||
| General and administrative expenses | (1,563,423 | ) | (1,438,046 | ) | |||
| Research and development expenses | (930,904 | ) | (1,251,593 | ) | |||
| Total operating expenses | (4,279,164 | ) | (5,058,376 | ) | |||
| Loss from operations | (486,293 | ) | (2,121,237 | ) | |||
| Finance cost, net | (153,869 | ) | (203,779 | ) | |||
| Government subsidy | 11,811 | 264,250 | |||||
| Other income (expense), net | 108,644 | (43,308 | ) | ||||
| Loss before income taxes | (519,707 | ) | (2,104,074 | ) | |||
| Income tax expenses | (16 | ) | - | ||||
| Net loss | (519,723 | ) | (2,104,074 | ) | |||
| Net loss attributable to non-controlling interests | (123,161 | ) | (97,948 | ) | |||
| Net loss attributable to common shareholders | (396,562 | ) | (2,006,126 | ) | |||
| COMPREHENSIVE LOSS | |||||||
| Net loss | (519,723 | ) | (2,104,074 | ) | |||
| Unrealized foreign currency translation loss | (15,567 | ) | (20,450 | ) | |||
| Comprehensive loss | (535,290 | ) | (2,124,524 | ) | |||
| Less: comprehensive loss attributable to non-controlling interests | (133,227 | ) | (74,959 | ) | |||
| Comprehensive loss attributable to common shareholders | $ | (402,063 | ) | $ | (2,049,565 | ) | |
| Weighted average number of ordinary share outstanding | |||||||
| Basic and Diluted* | 30,000,004 | 30,000,004 | |||||
| Loss per share | |||||||
| Basic and Diluted | $ | (0.01 | ) | $ | (0.07 | ) | |
FAQ**
How does Ruanyun Edai Technology Inc. (RYET) plan to address the significant 27% revenue decline, particularly in SmartHomework® digitalization services, while maintaining growth in higher-margin software customization?
With the gross margin improving to 56.7% in FY2025, what strategies will Ruanyun Edai Technology Inc. (RYET) employ to sustain this profitability amidst evolving market conditions and educational policy changes?
Considering the aggressive cost management that led to a 29.1% increase in gross profit, how will Ruanyun Edai Technology Inc. (RYET) balance cost reductions with necessary investments in research and development for future growth?
As Ruanyun Edai Technology Inc. (RYET) navigates international expansion, what specific measures are being taken to maximize the opportunities provided by partnerships, such as the recent collaboration with the Confucius Institute in Saudi Arabia?
**MWN-AI FAQ is based on asking OpenAI questions about Ruanyun Edai Technology Inc. (NASDAQ: RYET).
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