Four Seasons Education (Cayman) Inc. (FEDU): Business Model Canvas [Dec-2025 Updated]

You're looking past the noise to see exactly how Four Seasons Education (Cayman) Inc. is executing its post-pivot strategy, and frankly, the early results from H1 FY2026 are worth a deep dive. We're talking about a company that generated RMB145.3 million in revenue, landed a net income of RMB12.4 million, and saw its net profit surge by 313.9%-all while holding RMB213.1 million in cash as of August 31, 2025. This Business Model Canvas distills precisely how they are blending compliant enrichment learning with a full-scale travel agency service, supported by a 26.7% gross profit margin. Keep reading to see the nine core components that make this new model tick.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Key Partnerships

You're looking at the essential relationships Four Seasons Education (Cayman) Inc. (FEDU) needs to keep its integrated tourism and education model running smoothly as of late 2025. These aren't just names on a letterhead; these are the entities that enable everything from curriculum delivery to regulatory navigation. Honestly, in this sector, your partners are as critical as your own staff.

The company's strategy relies on a network of external entities to deliver its diverse offerings, which span enrichment learning, school-based solutions, study camps, and travel agency services. The financial health of the business is directly tied to how effectively these external relationships are managed.

Local Schools for School-Based Tutoring Product Solutions

For its school-based tutoring product solutions, Four Seasons Education (Cayman) Inc. actively partners with local schools across China. This integration allows the company to embed its programs directly into the existing educational structure, providing supplementary learning opportunities.

• Partnering with local schools to integrate enrichment programs into curricula.
• Leveraging school networks for student recruitment and program delivery.
• Utilizing experienced teachers sent from headquarters to new centers for coordination.

Travel Agencies and Hospitality Providers for Study Camps and Learning Trips

The tourism segment, which includes study camps and learning trips, requires deep ties with the hospitality and travel infrastructure. Four Seasons Education (Cayman) Inc. manages its own travel services, including accommodation reservation and transportation ticketing, but relies on established providers for scale and local access.

As of February 28, 2023, the company operated two study camps, specifically located in Hubei Province and Anhui Province, with plans to expand this physical footprint. These locations serve as anchors for their immersive learning programs.

Speaking of financing, the relationship with financial institutions is key for liquidity management. As of August 31, 2025, Four Seasons Education (Cayman) Inc. held RMB 213.1 million in cash and cash equivalents, short-term investments, and short-term investments under fair value. To support its fixed assets development, like the Wuyuan Siji Gongda Integrated Practical Study Camp Project, the company secured a standby letter of credit loan facility of up to RMB 110 million from China Merchants Bank Co.,Ltd. Singapore Branch in late 2023.

Content Developers for Non-Academic Enrichment Learning Curriculum

The non-academic enrichment curriculum is built upon the company's proprietary content capabilities. A significant partnership here involves a major publisher to develop specific educational materials.

• Proprietary content designed to enhance cognitive and logic abilities.
• Cooperation with China Normal University Press on the One Lesson One Exercise Project.
• Development of learning technology and content solutions for other educational institutions.

Government and Regulatory Bodies for Compliant Operation in China

Operating in China's education and tourism sectors means constant engagement with government and regulatory bodies. Compliance is non-negotiable, especially following major policy shifts.

The company has had to adjust its business model to comply with directives such as the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring. Furthermore, navigating listing requirements is a partnership with bodies like the New York Stock Exchange (NYSE); for instance, in early 2025, Four Seasons Education (Cayman) Inc. received a notice regarding the minimum stockholder requirement, necessitating a compliance plan.

These bodies dictate operational parameters, including registration requirements and fee standards, so constructive engagement is a core activity. It's a tightrope walk, for sure.

Financial Institutions for Managing RMB213.1 million in Cash and Investments

The management of the company's balance sheet, including the RMB 213.1 million in liquid assets as of August 31, 2025, involves established banking relationships for treasury and credit functions. These institutions are vital for both preserving capital and accessing necessary credit lines for expansion.

• China Merchants Bank Co.,Ltd. Singapore Branch: Provider of the uncommitted credit facility up to RMB 110 million.
• Management of the total investment portfolio, which included long-term investments under fair value of RMB 157.9 million as of August 31, 2025.
• Handling of operational banking needs for revenue collection and expense disbursement across the tourism and education segments.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Key Activities

You're looking at the engine room of Four Seasons Education (Cayman) Inc. (FEDU), the essential actions that keep the value proposition moving and the revenue flowing. These aren't just tasks; they are the core operational priorities that translate into the financial results we see. The company's model hinges on a blend of service delivery and product creation across distinct segments.

The financial performance for the first half of fiscal year 2026 (H1 FY2026), ended August 31, 2025, clearly shows where the focus is paying off. Revenue hit RMB145.3 million, a 7.9% increase year-over-year, with gross profit climbing 30.9% to RMB38.8 million. This operational success is what drives the bottom line.

The primary activity driving this financial health is the developing and delivering of non-academic enrichment learning programs. This segment is explicitly noted as the main driver for the revenue growth in H1 FY2026. This activity involves creating and executing high-quality learning experiences for learners of all ages, which is a problem-solving activity at its core, requiring continuous curriculum refinement and instructor management.

Another key activity is operating a full-scale travel agency service for all age groups. This service offering, which includes study camps and learning trips for students, is part of the company's diversified portfolio. The strategic shift towards these higher-margin tourism offerings is mentioned as a factor in ensuring sustainable growth, meaning the management and execution of these trips-from logistics to compliance-is a critical, ongoing task.

The company also focuses on creating and selling school-based tutoring product solutions. This is a distinct product development and sales activity, separate from the direct service delivery of the enrichment programs. This involves designing, packaging, and distributing tangible or digital tutoring products to schools or other entities.

Essential to the delivery of the learning programs is the activity of managing and optimizing the network of physical learning centers. The company is prudently expanding its capacity in lockstep with market demand, which means this activity includes site selection, lease management, facility maintenance, and ensuring operational efficiency across the physical footprint. General and administrative expenses decreased by 10.7% in H1 FY2026, suggesting successful optimization efforts in overhead related to these centers.

Underpinning all operations is the strategic execution to maintain profitability. This is the overarching activity that dictates resource allocation and operational focus. The success of this strategy is quantified by the H1 FY2026 net income reaching RMB12.4 million, a stark improvement from RMB3.0 million in the prior year period. This profitability was supported by an operating income of RMB9.2 million, a turnaround from an operating loss of RMB5.7 million in H1 FY2025.

You can see the core operational focus through these supporting activities:

• Prioritizing high-quality learning experiences in enrichment programs.
• Prudently expanding enrichment learning business capacity in line with demand.
• Focusing on higher gross profit ratio services, like enrichment learning.
• Disciplined cost control, evidenced by a 34.3% reduction in sales and marketing expenses.

Finance: draft 13-week cash view by Friday.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Key Resources

You're looking at the core assets Four Seasons Education (Cayman) Inc. relies on to deliver its integrated tourism and education services as of late 2025. These aren't just line items; they are the engines driving their revenue growth, especially in the enrichment learning segment.

Financial Strength as a Resource

Liquidity is always a key resource, giving the company flexibility for expansion and operational needs. As of the first half of fiscal year 2026:

That cash position supports the ongoing expansion efforts mentioned below. Here's the quick math: they had RMB213.1 million on hand at the end of August 2025, down from RMB262.6 million six months prior, showing deployment of capital.

Intellectual Property and Programmatic Assets

The value here is in what they teach and how they teach it. Four Seasons Education (Cayman) Inc. has built its educational offering around specialized, non-academic content. This intellectual property is critical for differentiation in a competitive market.

• Proprietary curriculum and teaching methodologies focused on non-academic subjects.
• Specific focus on enrichment learning, including instrument learning programs, which have a higher gross profit ratio.
• Product offerings also include school-based tutoring product solutions and training programs for teachers.

Human Capital: The Teaching Staff

The quality of instruction directly ties to the value proposition for parents and learners. The company actively works to maintain a qualified teaching staff, noting they offer competitive compensation to attract and retain the best talent.

• The total number of full-time teachers and consultants was 128 as of February 28, 2025.
• Staff costs increased in the first half of fiscal year 2026, reflecting investment in personnel to support revenue growth in the enrichment learning business.

Physical and Operational Footprint

The physical network and the infrastructure supporting the travel side are tangible assets that enable service delivery across China. The company is actively working to scale the education side while optimizing the travel side.

The physical learning centers network is a key component of the enrichment learning business, and management stated they are expanding this network while optimizing operations for local needs. What this estimate hides is the geographic distribution across China's tier cities.

The licensed travel agency network and operational infrastructure support the tourism segment, which is being strategically adjusted:

• Offers full-scale travel agency services for all age groups.
• Strategy involves tilting the tourism product portfolio toward higher-margin, value-added offerings.
• Includes infrastructure for delivering study camps and learning trips.

Finance: draft 13-week cash view by Friday.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Four Seasons Education (Cayman) Inc. is using to drive its recent financial upturn. The value proposition centers on a diversified, yet integrated, set of services spanning education and tourism.

The company's offerings mainly consist of:

• Non-academic tutoring programs that adhere to regulatory compliance.
• School-based tutoring product solutions and training programs for teachers.
• Study camps and learning trips designed for experiential learning for students.
• Travel agency services catering to leisure and cultural enrichment for all age groups.

This mix is explicitly cited as contributing to the recent financial strength, particularly the growth in the enrichment learning business.

The financial results from the first half of fiscal year 2026, which ended August 31, 2025, clearly demonstrate the value proposition of improved profitability through a healthier product mix and efficiency gains.

The shift toward higher-margin tourism offerings, alongside operational efficiency, is what's driving the margin expansion you see in the table above. For instance, the gross profit margin improved from 22.0% in the first half of fiscal year 2025 to 26.7% in the first half of fiscal year 2026. Here's the quick math: a 7.9% revenue increase led to a 30.9% surge in gross profit, which is the direct result of that margin improvement.

The value proposition of high-quality, experiential learning through study camps and trips is supported by the overall growth in the enrichment learning business, which was the main driver for the 7.9% revenue increase to RMB145.3 million.

School-based solutions that integrate with formal education systems, including product solutions and teacher training, form another key segment contributing to the overall business health, as management attributes the performance to a healthy product mix.

The full-service travel agency offerings for leisure and cultural enrichment represent the component of the business that is specifically noted for its higher gross profit ratio, directly impacting the improved profitability metric.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Customer Relationships

You're looking at how Four Seasons Education (Cayman) Inc. engages with the people who use their services, which is a mix of education and travel in China. The relationship strategy has to support their integrated model, which includes enrichment learning, school solutions, study camps, and travel agency services for all age groups. This approach means customer interaction varies quite a bit depending on which service they buy.

Direct interaction and enrollment through learning centers remains a core touchpoint for the enrichment learning business. Management noted they are expanding their network of learning centers while optimizing operations to better resonate with local learners. This direct channel is key to driving the profitability seen in instrument learning programs. The focus here is definitely on delivering high-quality learning experiences.

For the tourism side, the relationship strategy is shifting toward quality over sheer volume. Four Seasons Education (Cayman) Inc. is adopting a strategy to balance stable scale with product optimization by tightening its product portfolio toward high-margin value-added offerings. This suggests a move to cultivate deeper, more profitable relationships with clients seeking premium travel and learning trip experiences.

Dedicated sales and support structures are implicitly necessary for institutional clients, given the offering of school-based tutoring product solutions and training programs for teachers. While specific client counts aren't public, the success of this segment contributes to the overall financial health. The company reported total revenue of CNY 145 million for the first 6 months of fiscal year 2026, a 7.9% year-over-year increase, supported by this healthy product mix.

Online and offline customer service handles program inquiries across the board. The company maintains investor relations contacts in both China and the United States to manage external stakeholder relationships, with Olivia Li serving as the Investor Relations Manager in China. The operational excellence they emphasize helps maintain the customer experience across these varied service delivery methods.

Building long-term loyalty is being actively supported by the financial results stemming from a healthy product mix. The shift in focus is clearly paying off in profitability metrics, which is a strong indicator of customer satisfaction with the value received. Here's a quick look at how the product mix is translating into financial performance for the first half of fiscal year 2026 (ended August 31, 2025):

The rise in gross profit margin from 22% in the first half of fiscal year 2025 to 26.7% in the first half of fiscal year 2026 definitely shows that the customer relationships driving the higher-margin segments are gaining traction. Also, net income climbing to RMB 12.4 million, a 314% increase year-over-year, suggests that the value proposition is resonating well enough for customers to absorb the higher-margin focus.

The company's liquidity position also supports ongoing service delivery and relationship management. As of August 31, 2025, Four Seasons Education (Cayman) Inc. held cash and cash equivalents, short-term investments, and short-term investments under fair value totaling RMB 213.1 million.

Finance: draft 13-week cash view by Friday.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Channels

The scale of operations flowing through Four Seasons Education (Cayman) Inc. (FEDU)'s channels for the six months ended August 31, 2025, resulted in total revenue of RMB145.3 million.

Physical learning centers for non-academic tutoring are a core component, as the enrichment learning business was the primary driver of revenue growth for the first half of fiscal year 2026, which increased revenue by 7.9% year-over-year to RMB145.3 million.

Direct sales teams for school-based product solutions contribute to the overall service delivery, which also includes teacher training programs.

Online platforms for program enrollment and content delivery support the delivery of enrichment learning and other educational services.

Travel agency offices and dedicated tourism booking portals are integral, as the company noted a shift towards higher-margin tourism offerings in its strategy.

Investor Relations website for public financial disclosures is the channel for official communication, with the Investor Relations website located at https://ir.sijiedu.com.

The company's offerings channeled to customers include:

• Non-academic tutoring programs.
• School-based tutoring product solutions.
• Training programs for teachers.
• Study camps and learning trips for students.
• Travel agency services for all age groups.

The financial performance for the six months ended August 31, 2025, reflecting the output across all channels, is summarized below:

The company's management hosted an earnings conference call on December 2, 2025, at 8:00 AM U.S. Eastern Time to discuss these results.

The company filed its fiscal year 2025 annual report on Form 20-F with the SEC on June 26, 2025.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Customer Segments

You're looking at the customer base for Four Seasons Education (Cayman) Inc. as of late 2025. The business is now an integrated provider of tourism and education-related services in China, so the segments reflect this dual focus.

The latest reported revenue for the first half of fiscal year 2026, which ended on August 31, 2025, was RMB 145.3 million, a 7.9% year-over-year increase from the RMB 134.7 million reported for the same period last year.

Here is a breakdown of the key customer segments:

• K-12 students seeking non-academic, enrichment learning: This segment drove the 7.9% total revenue increase in H1 FY2026.
• Parents focused on compliant, holistic development for their children: This group is the core audience for non-academic tutoring programs and study camps.
• Schools and educational institutions purchasing tutoring product solutions: The company offers school-based tutoring product solutions to this segment.
• General public and families utilizing the full-scale travel agency services: The tourism business saw a 230% year-over-year revenue increase in the first half of fiscal year 2025.
• Teachers enrolling in professional training programs: The company offers training programs for teachers as part of its service portfolio.

The financial data from the first half of fiscal year 2026 (ended August 31, 2025) shows the relative scale of the cost structures supporting these segments:

The company's liquidity position also reflects the scale of its operations across these customer groups. As of August 31, 2025, Four Seasons Education (Cayman) Inc. had cash and cash equivalents, short-term investments, and short-term investments under fair value totaling RMB 213.1 million.

You can see the shift in focus by looking at the prior period's segment performance, which highlighted the tourism segment's rapid growth:

• Tourism business revenue increase (H1 FY2025 YoY): 230%
• Non-academic tutoring revenue growth (H1 FY2025 YoY): 62%

The net income for the first half of fiscal year 2026 reached RMB 12.4 million, a 313.9% year-over-year rise, indicating that the current product mix is more profitable than the prior period's mix, which yielded a net income of RMB 3.0 million.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Cost Structure

You're looking at the core expenses Four Seasons Education (Cayman) Inc. incurred to generate its H1 FY2026 revenue. These are the hard numbers from the six months ended August 31, 2025, which tell a story about where the money is going.

The single largest cost component is the Cost of Revenue, which hit RMB106.5 million for the first half of fiscal year 2026. This was up from RMB105.0 million in the same period last year. That increase, though modest in percentage terms, is important to track.

Here's a breakdown of the key expense categories for H1 FY2026:

The primary driver behind the Cost of Revenue increase was staff costs for enrichment learning teachers. The company explicitly noted that the RMB106.5 million figure was mainly due to the increase in staff costs associated with their enrichment learning business expansion. This suggests that scaling the core service delivery requires significant, ongoing investment in personnel.

When you look at overhead and customer acquisition, you see a different trend. The company managed to pull back on certain discretionary spending, which helped operating income turn positive.

• General and administrative expenses were RMB24.3 million, a 10.7% reduction from the prior year's RMB27.2 million.
• Sales and marketing expenses saw a significant cut, coming in at RMB5.3 million, reflecting a 34.3% decrease year-over-year.

The costs related to operating costs for physical learning centers and travel infrastructure are embedded within the Cost of Revenue figure of RMB106.5 million, as this line item covers direct costs like teacher salaries and likely the direct operational expenses tied to delivering the learning and tourism services. The improved gross profit margin, rising to 26.7% from 22.0%, suggests that while staff costs grew, the revenue mix shifted toward higher-margin enrichment learning offerings, effectively offsetting some of the underlying operating cost pressures.

Finance: draft 13-week cash view by Friday.

Four Seasons Education (Cayman) Inc. (FEDU) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Four Seasons Education (Cayman) Inc. (FEDU) as of late 2025, specifically focusing on the first half of fiscal year 2026 (H1 FY2026). The numbers show a clear pivot toward higher-margin activities driving profitability.

The total revenue for H1 FY2026 reached RMB145.3 million, which was a 7.9% increase compared to the RMB134.7 million generated in the same period last year. Honestly, that top-line growth is solid, but the real story is what's happening beneath it.

The primary engine for this revenue growth is the fees derived from enrichment learning programs. Management noted that these programs continued to progress steadily, recording significant revenue growth for the six months ended August 31, 2025. They plan to prudently expand this business, scaling capacity in lockstep with market demand to keep things sustainable.

FEDU's offerings are integrated across tourism and education services. This means revenue streams are diversified across several key areas:

• Fees from enrichment learning programs.
• Revenue from tourism offerings, which includes study camps and learning trips for students.
• Revenue from travel agency services for all age groups.
• Sales of school-based tutoring product solutions.

The shift in product mix is what really matters here. The growth in the enrichment learning business is key because it carries a higher gross profit ratio. Furthermore, the company has been strategically focusing on a shift towards higher-margin tourism offerings to enhance long-term competitiveness.

Here's a quick look at how the profitability metrics moved, which directly reflects the success of those higher-margin services:

That jump in net income is substantial. The higher-margin services, driven by the enrichment learning segment's improved gross profit ratio and the strategic tourism mix, are directly responsible for the 313.9% year-over-year increase in net income, which climbed to RMB12.4 million in H1 FY2026. The gross profit itself jumped 30.9% to RMB38.8 million, outpacing the revenue growth, which is exactly what you want to see from a strategic shift.

The business model clearly relies on monetizing these specialized, higher-value educational and travel experiences. Finance: draft 13-week cash view by Friday.