Overview Key strengths Key risks Good revenue visibility due to steady reenrollment rates. 34% of revenue comes from early childhood programs that are exposed to intense competition. Diverse portfolio of schools and participating markets. Financial-sponsor ownership may cause sustained high leverage due to aggressive growth strategy. Spring Education Group Inc.?s ECE division remained flat during the nine months ended March 2024 compared with the same period last year, whereas its K-12 division showed a robust 4% growth in enrollment. Enrollment for the ECE division was affected by operational challenges following the opening of a large number of early childhood education schools. However, we expect new leadership within the ECE segment to implement various operational initiatives in order to address enrollment
