FENBI (02469) released its H1 2025 performance forecast on August 4, expecting first-half revenue of at least RMB 14.72 billion, net profit of at least RMB 215 million, and adjusted net profit of at least RMB 260 million. FENBI stated in its announcement that performance pressures stem from the continued intense competitive landscape in China's recruitment exam training industry in the short term. Given the recent business performance of FENBI's AI products, management maintains an optimistic outlook on the company's development prospects and plans to continuously upgrade and improve its AI course product matrix to deeply explore growth potential, accelerate market expansion, boost revenue, and improve profit margins.

**AI Technology Deeply Explores Performance Growth Potential**

FENBI indicated that demand for recruitment exam training remains robust, with the number of exam candidates increasing year over year. The 2025 national civil service exam attracted 3.416 million applicants, representing a 12.6% increase compared to 2024. The ratio of qualified candidates to recruitment positions was approximately 86:1, with user training participation willingness on the rise.

Facing users' diverse learning needs, FENBI leveraged its mature AI technology development capabilities and over a decade of accumulated industry vertical online data to develop the first AI domain-specific model focused on recruitment exams and put it into commercial application. Beyond its flagship systematic classes, FENBI has successively launched intelligent teaching products including FENBI AI Teacher, premium AI interview evaluation, and AI practice systematic classes based on its self-developed domain model, achieving full coverage of the civil service exam learning lifecycle.

Among these, the AI practice systematic class represents the industry's first AI-led large-class course product, launched in April this year. The announcement revealed that as of June 30, the AI practice systematic class had sold approximately 50,000 units with revenue of about RMB 20 million. Based on this calculation, the product's annual sales are expected to exceed RMB 100 million, marking FENBI's AI business achieving commercialized operations and demonstrating that the company's business fundamentals and long-term development strategy remain solid, continuing to lead the civil service training sector.

AI teaching products are expected to create a second growth curve for FENBI and unlock the potential of existing businesses. FENBI's statistics show that 90% of students in these courses were users who had registered and were active on the FENBI APP before 2025 but had no course payment willingness until the RMB 399-priced AI practice systematic class was launched, completing payment conversion. As of the end of 2024, FENBI had over 72.74 million registered users and continues to grow.

Additionally, the AI interview mock exam competition launched in the first half of 2025 attracted nearly 1.5 million participants. AI interview evaluation practice tools have been deeply embedded in users' high-frequency exam preparation scenarios, with 98.43% of surveyed users willing to further recommend interview mock exam products to exam-preparing friends. The core user base demonstrates high stickiness, serving as the foundation for FENBI's continued deep cultivation.

FENBI believes that AI interview evaluation practice tools are expected to gain market share through highly attractive cost-effectiveness with pricing far lower than mainstream interview class products, presenting broad market prospects. In terms of implementation speed, FENBI's AI product matrix has shown a leading position in the vocational education field, reconstructing growth logic through AI transformation and redefining industry value.

FENBI stated it is accelerating the layout and development of AI course product matrix for the written exam phase, planning to launch AI large classes in more subjects within the year to accelerate market share acquisition. Meanwhile, FENBI's AI hardware products are also expected to launch within the year.

Zheshang Securities pointed out in a recent research report that although the market size of the exam preparation training field is relatively smaller than K12, FENBI is currently the only company in the sector with internet or AI-driven thinking and capabilities. The competitive landscape is far superior to K12, and the company is expected to rapidly expand market share driven by AI products.

**AI Drives New Cycle of Value Competition**

The civil service training industry overall faces short-term structural adjustment pressures. The industry's core contradiction has shifted from scale competition to value competition, focusing more on actual product effectiveness, user experience, and comprehensive solution capabilities. This transformation period has led to phased challenges in market investment efficiency.

As a leading player in the civil service training sector, FENBI's medium to long-term performance has gained institutional recognition. Huatai Securities emphasized in its first-half research report that from a medium to long-term perspective, leading large institutions possess advantages such as stable teaching and research teams, continuously iterating teaching research capabilities, lower operational risks, and scalable enrollment capabilities. The overall trend of future market share is still toward concentration in large institutions.

From a policy perspective, the National Development and Reform Commission indicated that society currently has strong demand for artificial intelligence applications and is in a critical window period for AI application implementation. To strengthen long-term competitiveness, FENBI continues to invest in AI technology R&D, high-barrier teaching and research system construction, and full-domain service optimization.

FENBI President Wei Liang previously stated that the company expects to increase AI R&D investment at an annual growth rate of 30% and plans to jointly establish educational large model laboratories with top institutions, deeply cultivating the "AI + vocational education" field to help teachers reduce costs and increase efficiency while enhancing user learning experience.

It is understood that AI has been comprehensively applied to FENBI's internal operations, teaching and research, and other aspects, expected to further improve operational efficiency, optimize resource utilization, and focus on high-value core business construction. With AI assistance, FENBI continues to optimize teacher training processes and build high-barrier teaching and research capabilities. User experience has significantly improved, with user satisfaction remaining at high levels. With efficient response speed and quality service, FENBI landed on the quarterly red list in the education and training field on third-party platform Black Cat Complaints.

FENBI stated that with solid technical foundation, data barriers accumulated over many years, mature large-class course systems, and a loyal base student group, it has formed core competitiveness in AI applications. After introducing AI technology, the company will combine market experience to continuously upgrade and improve its AI course product matrix. FENBI's board of directors believes that such first-mover competitive advantages and innovative AI course product systems will help the company accelerate market expansion, boost revenue, and improve profit margins in the short term.