RYET

Campus operations and student-life services contributed $5.72 million and became the Company's largest revenue source KUALA LUMPUR, Malaysia, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (NASDAQ: RYET) ("Ruanyun," "RYET" or the "Company"), an AI-driven education and technology company, announced its financial results for the fiscal year ended March 31, 2026 and filed its Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (the "SEC"). Fiscal 2026 marked Ruanyun's first fiscal year as a Nasdaq-listed company and broadened its revenue base. Campus operations and student-life services became the Company's largest revenue source and drove growth of 11.9%. Ruanyun also returned to positive equity, ending the year with $5.28 million in total equity and $3.28 million in working capital. "We are pleased to report that revenue rose 11.9%, with campus operations and student-life services contributing $5.72 million, in line with our earlier growth expectation," said Maggie Fu, Chief Executive Officer. "Fiscal 2026 marked an important step in broadening our revenue base. These services became our largest revenue source, and we ended the year with $5.28 million in total equity and $3.28 million in working capital." "For fiscal 2027, our priorities are to improve margins, expand sales of our AI products and develop international education opportunities," Ms. Fu continued. "We intend to build on the momentum in our campus-services business while maintaining disciplined collections and cash management. The proposed transition to the Formind Group name reflects the broader direction we are taking the Company." Fiscal Year 2026 Highlights Revenue growth: Revenue rose by approximately $0.80 million, or 11.9%, to $7.48 million, meeting the Company's earlier expectation of full-year growth. Campus-services contribution: Campus operations and student-life services contributed $5.72 million, or 76.4% of total revenue, and became the Company's largest revenue source. Stronger financial position: Total equity returned to positive territory at $5.28 million, working capital improved to positive $3.28 million, and cash was $4.08 million at March 31, 2026. Net loss: Net loss was $7.91 million, compared with $0.52 million in fiscal 2025, reflecting the lower gross margin and higher operating expenses described below. Fiscal 2027 priorities: Improve margins, expand sales of AI products, build on campus-services momentum and develop international education opportunities. Smart Campus and Related Campus Services Campus operations and student-life services generated $5.72 million, making them Ruanyun's largest source of fiscal 2026 revenue. Smart Campus is part of these activities and continued operating after year-end. Based on unaudited internal management accounts, the Company previously reported approximately $3.83 million (RMB26.46 million) of Smart Campus operating revenue for April and May 2026, excluding merchant and service-operator pass-through amounts. This operating measure was not prepared in accordance with U.S. GAAP and may differ from revenue recognized in the Company's consolidated financial statements. Smart Campus extends Ruanyun's work beyond classroom technology into day-to-day campus services, including food-service management, merchant settlement, dormitory utilities, student-life workflows and vocational services. In fiscal 2027, the Company plans to add customers, improve margins and operating efficiency, and shorten settlement and collection cycles. Other Initiatives Ruanyun is also advancing Cogni AI, YeeZo and other initiatives. Cogni AI is designed to support document digitization, recognition and automation for institutional and enterprise applications. YeeZo is designed to support AI-assisted content planning and multi-model content production. In addition, after year-end, the Company raised approximately $1.73 million in a private placement and formed Formind Global Holdings Sdn. Bhd. in Malaysia to support international sales and partnerships, alongside its presence in Saudi Arabia. These product initiatives are at different stages of commercialization and may involve customer-specific customization, deployment, integration, data migration, training and ongoing support. Preparing for the Formind TransitionThe planned move to the Formind Group name reflects Ruanyun's development beyond its original school-focused products. The new name is intended to better represent a business that now includes Smart Campus, AI products and international education, while retaining the Company's education-technology roots. The name change remains subject to shareholder approval and completion of applicable corporate and regulatory steps. Fiscal Year 2026 Financial Review Campus operations and student-life services became the Company's largest revenue source during fiscal 2026 and drove overall revenue growth. Because these services require more people and day-to-day operating support than the Company's historical software and content businesses, the change in mix reduced consolidated gross margin. A substantial portion of fiscal 2026 revenue was recognized in the second half, reflecting project delivery, customer acceptance and invoicing timing, as well as the September 2025 launch of Smart Campus Services. The timing of revenue may continue to vary with contract milestones, school calendars, customer budgets and invoicing cycles. Selling and marketing expenses increased to $3.89 million from $1.78 million, reflecting business development, international marketing and Smart Campus customer activity. General and administrative expenses increased to $4.53 million from $1.56 million. The increase included higher legal, audit, accounting-advisory, compliance, investor-relations, personnel and corporate-overhead costs following the IPO. Certain initial or transaction-specific expenditures may not recur, but the Company expects ongoing public-company reporting, governance and compliance costs. Fiscal 2026 general and administrative expense also included $0.45 million of non-cash share-based compensation. Research and development expense declined 16.7% to $0.78 million as spending was reduced and development processes were streamlined. Below operating loss, the results included a $0.74 million PRC government penalty charge and a $0.21 million government subsidy. Net loss was $7.91 million, compared with $0.52 million in fiscal 2025, reflecting the lower gross margin and higher operating expenses described above. Cash Flow and Financial Position Net cash used in operating activities was $9.15 million, compared with net loss of $7.91 million. The largest driver was a $6.61 million increase in prepayments and other current assets, chiefly advance payments for international marketing and promotional services and a research and development project. Non-cash charges of approximately $1.75 million for expected credit losses, together with higher accounts payable and accrued liabilities, partially offset the use of cash. The Company ended fiscal 2026 with $4.08 million in cash, $3.28 million of working capital, $14.39 million in total assets and $5.28 million in total equity. The IPO strengthened the balance sheet. At March 31, 2025, the Company had a working-capital deficit of approximately $2.10 million and a total equity deficit of $0.51 million. The Company also ended fiscal 2026 with $4.28 million of short-term bank loans and used $9.15 million in operating activities, so collections, working-capital management and cost control remain immediate priorities. Annual Report on Form 20-F The Company has filed its Annual Report on Form 20-F for the fiscal year ended March 31, 2026 with the U.S. Securities and Exchange Commission. The Annual Report is available through the SEC's EDGAR database at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001873454/000173112226000996/e7798_20f.htm and on the Company's investor relations website at https://investors.ruanyun.net/financials.html. About Ruanyun Edai Technology Inc. Ruanyun Edai Technology Inc. (NASDAQ: RYET) is an AI-driven education and technology company focused on intelligent content recognition, automated assessment, next-generation learning systems and technology-enabled educational support services. The Company is committed to delivering scalable, efficient and intelligent technology solutions globally. Subject to shareholder approval and completion of applicable corporate and regulatory processes, the Company plans to transition to the Formind Group name as part of its broader global strategy. Investor Relations and Corporate Communications FSR Capital, a FSR Group CompanyEmail: [email protected] Forward-Looking Statements This press release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding the Company's fiscal year 2027 priorities; future operating and financial performance; margins, operating efficiency, collections, liquidity and capital requirements; the development and commercialization of Smart Campus Services, Cogni AI, YeeZo, and other initiatives; international expansion; and the planned transition toward the Formind Group identity. Forward-looking statements are based on current expectations, estimates, assumptions and projections and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, without limitation, risks relating to the Company's business transformation; the lower-margin and working-capital characteristics of service-based revenue; operating costs; receivable collections and expected-credit-loss estimates; customer acceptance and revenue recognition; principal-versus-agent and consolidation judgments; Smart Campus operations and settlement arrangements; development and market acceptance of AI-enabled products; cybersecurity, data protection and regulatory compliance; international expansion and partner performance; access to financing, dilution and Nasdaq compliance; and completion of the proposed Formind Group transition. The post-year-end operating figures in this release are based on unaudited management accounts and should not be regarded as audited consolidated financial results. Actual revenue recognized may differ due to audit adjustments, consolidation analysis, intercompany eliminations, accounting treatment, principal-versus-agent analysis, timing differences, currency translation and applicable accounting standards. Post-year-end contracts, product announcements and commercial activity may not result in recognized revenue, profitability or cash collections. Additional risks and uncertainties are described in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, except as required by law.

New Malaysian subsidiary is intended to serve as part of the operating platform for the Company’s global expansion, institutional education initiatives and planned transition toward the Formind Group identity Kuala Lumpur, Malaysia, May 06, 2026 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (NASDAQ: RYET) (the “Company” or “Ruanyun”), an AI-driven education technology company focused on intelligent content recognition, automated assessment and next-generation learning systems, today announced the incorporation of Formind Global Holdings Sdn. Bhd. (“Formind Global”) in Malaysia. The Company intends for Formind Global to serve as part of the operating platform for its planned Malaysia-based Global Headquarters and broader international education initiatives. The incorporation represents an important organizational step in the Company’s planned transition toward the Formind Group identity. The Company believes the incorporation of Formind Global helps provide a clearer operating structure for its emerging Formind strategy, which is intended to support international education, AI-enabled learning systems, institutional support services, language learning, cross-border student services, technology commercialization and global business development. “The incorporation of Formind Global in Malaysia gives practical substance to our planned Formind transition,” said Maggie Fu, Chief Executive Officer of Ruanyun Edai Technology Inc. “We believe Kuala Lumpur can serve as a strategically important base for our global expansion. Malaysia provides connectivity to Southeast Asia, China, MENA and other international markets, and we believe it offers a practical environment for building education partnerships, institutional services, technology deployment and cross-border student-support capabilities.” Formind Global Holdings and the Company’s International Platform The incorporation of Formind Global follows a series of recent international initiatives announced by the Company, including its planned transition to the Formind Group name, the establishment of its Saudi Regional Headquarters, its strategic financing to support global expansion, its Memorandum of Understanding with City University Malaysia, its pilot project with the Center on Chinese Education at Teachers College, Columbia University, and its Saudi RHQ’s Memorandum of Understanding with Wadi Makkah, a technology and investment company wholly owned by Umm Al-Qura University. The Company believes these initiatives reflect a developing international operating structure across Southeast Asia, MENA and the United States. Through this structure, the Company intends to evaluate opportunities in institutional education support, language training, AI-enabled assessment, implementation services, cross-border student support, academic program development, and related technology and service offerings. The Company has previously stated its strategic target of deriving approximately 60% of total revenue from global markets by the end of 2027, supported by international expansion, strategic investments, cross-border growth initiatives and a diversified global operating platform. Malaysia as a Strategic Base for the Formind Platform The Company believes Malaysia is well suited to support its planned Global Headquarters platform due to its position within Southeast Asia, multilingual education environment, international student ecosystem, and connectivity with China, MENA and other global markets. The Company expects Formind Global to support the continued development of its international operating structure, including potential activities relating to regional business development, institutional education partnerships, product localization, implementation support, student services, training, testing and strategic investment initiatives. As the Company advances its planned transition toward the Formind Group identity, it expects the Malaysian subsidiary to provide a platform through which it may coordinate selected global initiatives across Southeast Asia, MENA, the United States and other international markets. About Ruanyun Edai Technology Inc. Ruanyun Edai Technology Inc. (NASDAQ: RYET) is an AI-driven education and technology company focused on intelligent content recognition, automated assessment, next-generation learning systems and technology-enabled educational support services. The Company is committed to delivering scalable, efficient and intelligent technology solutions globally. Subject to shareholder approval and completion of applicable processes, the Company plans to transition to the Formind Group name as part of its broader global strategy. For more information, please visit: www.ruanyun.net. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and other applicable U.S. federal securities laws. Forward-looking statements include, without limitation, statements regarding the Company’s planned transition to the Formind Group identity; the intended role of Formind Global Holdings Sdn. Bhd.; the Company’s plans to establish and develop a Malaysia-based Global Headquarters platform; the Company’s international expansion strategy; the anticipated role of Malaysia as a coordination and operating base for international education initiatives; the Company’s strategic target relating to future global revenue mix; the Company’s ability to develop institutional education support services; potential future cooperation with universities, education institutions, service providers, government-linked entities, commercial partners and other counterparties; and possible future business development, revenue generation, investment, market-entry, technology deployment, language learning, student support, institutional implementation, training, testing or other initiatives in Malaysia, Saudi Arabia, the United States or other international markets. These forward-looking statements are based on current expectations, estimates, forecasts and assumptions, and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, risks relating to the Company’s ability to establish, staff, finance and scale operations in Malaysia and other jurisdictions; identify viable projects; negotiate and enter into definitive agreements; obtain and maintain any required governmental, institutional, regulatory, exchange, shareholder, corporate or third-party approvals; comply with applicable Malaysian, Saudi, Chinese, U.S. and other regulatory requirements; protect intellectual property and data rights; comply with data protection, cybersecurity, student-data, education, foreign ownership, employment, tax and corporate requirements; localize and commercialize products and services in international markets; maintain customer and partner relationships; satisfy revenue recognition criteria; secure sufficient financing; manage liquidity, costs, competition, regulatory developments, macroeconomic conditions and geopolitical factors; and complete the Company’s planned transition to the Formind Group name. The incorporation of Formind Global Holdings Sdn. Bhd. is an initial corporate and organizational step and does not guarantee that any definitive agreement, commercial project, revenue, investment, headquarters build-out, technology deployment, institutional partnership, academy, language testing program, student-services platform or other initiative will result. There can be no assurance that the Company will achieve its stated strategic targets within the anticipated timeframe, or at all. Additional risks are described in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statements, except as required by law. For Investor Inquiries and Media Contact: WFS Investor Relations Inc. Email: [email protected] Phone: +1 628 283 9214 FSR Capital (A FSR Group Company) Email: [email protected]

Company positions Saudi Arabia as strategic MENA hub and anticipates second-half 2026 revenue increase with expectations of 10% revenue growth year-over-year for FY2026 from $6.6M in FY2025 NANCHANG, China, April 02, 2026 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (NASDAQ: RYET) (“Ruanyun Edai Technology,” “RYET,” or the “Company”), an AI-driven education technology company focused on intelligent content recognition, automated assessment and next-generation learning systems,, today announced the establishment of its Regional Headquarters (“RHQ”) in the Kingdom of Saudi Arabia, marking a significant milestone in the Company’s global expansion strategy, long-term commitment to the Middle East and North Africa (MENA) region and a significant step in transition toward the previously announced Formind Group, which remains subject to shareholder approval and the completion of applicable corporate and regulatory processes. (CEO of Ruanyun Edai Technology, Maggie Fu, with HRH Prince Fahad and representatives of Talemia, a wholly owned subsidiary of the Saudi Public Investment Fund, focused on developing next generation educational systems ) The RHQ has been formally registered as Soft Cloud Smart Technology Company, a limited liability entity with active commercial status in Saudi Arabia. The Company believes this development significantly strengthens its operating footprint in one of the world’s fastest-growing education and digital transformation markets and creates a strategic platform for expansion across the broader MENA region. Ruanyun Edai Technology believes Saudi Arabia is emerging as a highly attractive market for AI-powered education, digital learning infrastructure and next-generation academic technology, supported by strong national modernization initiatives, rising institutional demand and growing demand for international curriculum and language learning solutions. The Company expects its Saudi RHQ to serve as a regional decision-making and operational hub, supporting product localization, partnership development and more effective execution across the Kingdom and the Gulf Cooperation Council (“GCC”). The announcement also reflects the Company’s broader strategic evolution toward the planned Formind Group identity. Management believes this transition is aligned with the Company’s long-term objective of building a more globally diversified education and technology platform with expanding exposure to international markets, cross-border partnerships and strategic growth opportunities. As part of this business strategy, the Company has set performance targets of approximately 60% of its revenue being derived from global markets by the end of 2027, while also building a more internationally diversified asset base over time through a combination of organic expansion, strategic investments, mergers and acquisitions and other growth initiatives. In addition, following its previously reported interim financial results for the six months ended September 30, 2025, the Company anticipates a meaningful portion of expected revenue will be weighted toward the second half of fiscal year 2026 due to delivery milestones and revenue recognition. Based on preliminary internal figures and management’s current expectations, the Company expects unaudited full year 2026 revenue to be approximately 10% higher than full year 2025, which was $6,685,387. If achieved, this would reflect a significant second-half improvement, compared to the first-half reported run rate, and the Company’s full-year performance will be expected to approach its historical operating profile, subject to final closing procedures, year-end adjustments and audit-related review. Saudi Arabia’s RHQ framework is designed to attract substantive multinational operations, including registered legal presence, local management, regional oversight functions and compliance with applicable regulatory and operational requirements. The Company believes its RHQ structure provides a strong foundation for long-term growth and regional scaling. With the RHQ now in place, the Company is advancing its rollout strategy in Saudi Arabia and the GCC with a focus on: Chinese language learning programs across education systems; AI-powered learning platforms, including automated assessment and intelligent tutoring tools; deployment of Smart Exam, the Company’s AI-based examination and proctoring solution, designed to enhance academic integrity, monitoring and operational efficiency; and collaboration with local governments, schools, education providers and strategic partners to support next-generation digital education infrastructure. Maggie Fu, Chief Executive Officer of Ruanyun Edai Technology, commented: “The establishment of our Saudi RHQ marks a major milestone for the Company and a meaningful step in our transition toward Formind Group as a global strategy. We see Saudi Arabia as a strategic gateway to regional growth and as an important operating base that can localize our solutions, deepen institutional relationships and accelerate the deployment of AI-enabled education technologies.” “We believe this development supports a much broader transformation for us that is already underway. Our goal is to build a more internationally diversified business, increase the proportion of revenue generated from global markets, and expand through both operating execution and strategic investment activities.” The Company intends to continue providing updates, where appropriate, regarding its Saudi and broader MENA expansion activities, international growth strategy, strategic investment initiatives and planned transition toward Formind Group. About Ruanyun Edai Technology Inc. Ruanyun Edai Technology Inc. (NASDAQ: RYET) is an AI-driven education technology company focused on intelligent content recognition, automated assessment and next-generation learning systems. The Company is committed to delivering scalable, efficient and intelligent education solutions globally. Subject to shareholder approval and completion of applicable processes, the Company plans to transition to the Formind Group name as part of its broader global strategy. For more information, please visit: ruanyun.net and investors.ruanyun.net. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the Company’s international expansion strategy, the expected benefits of its Saudi RHQ, the anticipated role of Saudi Arabia as a regional hub, the Company’s planned transition toward the Formind Group identity, the Company’s strategic targets relating to future global revenue mix and international diversification, expected growth through expansion, mergers and acquisitions and other investment activities, and the Company’s preliminary expectations regarding unaudited full-year fiscal 2026 revenue. These forward-looking statements are based on current expectations, estimates, forecasts and assumptions, and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, risks relating to the Company’s ability to execute its international growth strategy, localize and commercialize its products and services in Saudi Arabia and other international markets, obtain and maintain required registrations and approvals, establish and scale operations in new jurisdictions, complete or integrate acquisitions or investments, maintain customer and partner relationships, satisfy revenue recognition criteria, complete year-end closing procedures, and manage liquidity, costs, competition, regulatory developments, macroeconomic conditions and geopolitical factors. There can be no assurance that the Company will achieve its stated strategic targets or preliminary revenue expectations within the anticipated timeframe, or at all. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statements, except as required by law. For Investor Inquiries and Media Contact: WFS Investor Relations Inc. Email: [email protected] Phone: +1 628 283 9214

NANCHANG, China, March 30, 2026 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (NASDAQ: RYET) (“Ruanyun” or the “Company”), an innovative artificial intelligence (“AI”) driven education technology company focused on developing and delivering AI-enabled digital education platforms, including intelligent learning tools, assessment platforms, and adaptive learning systems, today announced its unaudited interim financial results for the six months ended September 30, 2025. 1H 2026 (Six Months Ended September 30, 2025) Unaudited Interim Financial Highlights Our revenue was $366,256 for the six months ended September 30, 2025, compared with $4,109,689 for the six months ended September 30, 2024, representing a decrease of 91.1%. Gross margin was 26.2% for the six months ended September 30, 2025, compared with 42.1% for the six months ended September 30, 2024. Our net loss was $4,569,013 for the six months ended September 30, 2025, compared with net loss of $680,241 for the six months ended September 30, 2024. Management Commentary Ms. Maggie Fu, Chief Executive Officer of Ruanyun, commented, “The decline in revenue reflects challenging domestic market conditions driven by regulatory changes and broader economic deceleration in China. We have proactively responded by strategically realigning our business toward international markets, establishing a global operational platform beyond our traditional geographic concentration. While this strategic transformation has temporarily impacted our margins, we believe these investments in international expansion and product portfolio optimization position Ruanyun for a broader and more global future.” About Ruanyun Edai Technology Inc. Ruanyun Edai Technology Inc. is an innovative AI-driven education technology company focused on developing and delivering AI-enabled digital education platforms, including intelligent learning tools, assessment platforms, and adaptive learning systems. For more information, please visit: ruanyun.net and investors.ruanyun.net. Forward-Looking Statements Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions. Any forward-looking statements contained in this press release speak only as of the date hereof, and Ruanyun Edai Technology Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. For Investor Inquiries and Media Contact: WFS Investor Relations Inc. Email: [email protected] Phone: +1 628 283 9214

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 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: 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: [email protected] Tel: +1 628 283 9214 +86-1381-176-8559