Ruanyun Edai Technology Inc.

What they do

The company has no material operations of its own and runs its business through Contractual Arrangements with Jiangxi Ruanyun and its shareholders in China. The VIE group includes Jiangxi Alphabet Technology Co., Ltd., Jiangxi Huizuoye Technology Co., Ltd., Jiangxi Ruanyun Zhitou Education Consulting Co., Ltd., Jiangxi Yunxiaotong Technology Co., Ltd., Gongqing City Yunxiao Bulter Technology Co., Ltd., Chongqing Huizhi Plan Technology Co., Ltd., and a Shenzhen branch office. The company has also begun international expansion, establishing a subsidiary in Saudi Arabia during fiscal year 2026 and a subsidiary in Malaysia after fiscal year-end.

Revenue drivers

• PRC education-technology operations (VIE and subsidiaries) — Revenue is generated by the VIE and its subsidiaries in China under the Contractual Arrangements; the filing does not break out product-level or segment-level revenue in the excerpt provided.
• New international activities (Saudi Arabia and Malaysia) — The company established a Saudi Arabia subsidiary during fiscal year 2026 and a Malaysia subsidiary after fiscal year-end; management expects certain new international activities to be conducted through these subsidiaries or related platforms, subject to local licensing and revenue-recognition analysis.

Recent performance

Total revenue was $9.2M in fiscal 2024, $6.7M in fiscal 2025, and $7.5M in fiscal 2026, so fiscal 2026 revenue rose about 12% from fiscal 2025 but remained below fiscal 2024. Net income was negative in all three years reported: -$2.0M in fiscal 2024, -$396,562 in fiscal 2025, and -$7.9M in fiscal 2026, a sharp deterioration in the latest year. Diluted EPS was -$0.07 in fiscal 2024, -$0.01 in fiscal 2025, and -$0.23 in fiscal 2026. Operating cash flow was -$799,447 in fiscal 2024, -$1.8M in fiscal 2025, and -$9.2M in fiscal 2026. As of March 31, 2026, total assets were $14.4M, total liabilities were $9.1M, shareholder equity was $5.7M, and cash and equivalents were $4.1M.

Strategy

Management is pursuing international expansion, having set up a subsidiary in Saudi Arabia during fiscal year 2026 and one in Malaysia after fiscal year-end. The company expects certain new international activities to be conducted through these subsidiaries or related platforms, subject to applicable law, local licensing, contractual arrangements, and revenue-recognition analysis. The filing also notes that the company has made rounding adjustments to some figures. The provided excerpt does not disclose additional detail on capital allocation, product roadmap, or specific investment amounts.

Risks

• VIE structure and contractual arrangements — The company relies on Contractual Arrangements with Jiangxi Ruanyun and its shareholders to conduct its China operations, which may be less effective than direct equity ownership and are subject to PRC regulatory risk.
• Losses and negative operating cash flow — Net losses widened to $7.9M in fiscal 2026 and operating cash flow was -$9.2M, with cash and equivalents of $4.1M as of March 31, 2026.
• Revenue decline relative to fiscal 2024 — Fiscal 2026 revenue of $7.5M remains below fiscal 2024 revenue of $9.2M despite the year-over-year increase from fiscal 2025, indicating the business has not recovered to prior levels.
• Early-stage international expansion — The Saudi Arabia and Malaysia subsidiaries are newly established, and the filing states that international activities remain subject to applicable law, local licensing, contractual arrangements, and revenue-recognition analysis.

Outlook

Management expects certain new international activities to be conducted through the newly established Saudi Arabia and Malaysia subsidiaries or related platforms, subject to applicable law, local licensing, contractual arrangements, and revenue-recognition analysis. The filing excerpt does not include specific revenue, margin, or cash-flow guidance for fiscal 2027. No other forward-looking targets are provided in the excerpt.