Announcement • Apr 20
China Education Group Holdings Limited to Report Q2, 2026 Results on Apr 30, 2026 China Education Group Holdings Limited announced that they will report Q2, 2026 results on Apr 30, 2026 New Risk • Dec 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Reported Earnings • Nov 27
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: CN¥0.35 (up from CN¥0.16 in FY 2024). Revenue: CN¥7.36b (up 12% from FY 2024). Net income: CN¥977.0m (up 134% from FY 2024). Profit margin: 13% (up from 6.4% in FY 2024). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 48%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 31% per year, which means it has not declined as severely as earnings. Announcement • Nov 26
China Education Group Holdings Limited, Annual General Meeting, Jan 26, 2026 China Education Group Holdings Limited, Annual General Meeting, Jan 26, 2026. Announcement • Nov 14
China Education Group Holdings Limited to Report Fiscal Year 2025 Results on Nov 26, 2025 China Education Group Holdings Limited announced that they will report fiscal year 2025 results on Nov 26, 2025 Board Change • Oct 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Executive Co-Chairman Rui Wang was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to HK$3.50, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 10x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 26% over the past three years. Reported Earnings • May 05
First half 2025 earnings released: EPS: CN¥0.36 (vs CN¥0.42 in 1H 2024) First half 2025 results: EPS: CN¥0.36 (down from CN¥0.42 in 1H 2024). Revenue: CN¥3.67b (up 12% from 1H 2024). Net income: CN¥967.0m (down 9.7% from 1H 2024). Profit margin: 26% (down from 33% in 1H 2024). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 28% per year, which means it has not declined as severely as earnings. Announcement • Apr 16
China Education Group Holdings Limited to Report First Half, 2025 Results on Apr 30, 2025 China Education Group Holdings Limited announced that they will report first half, 2025 results on Apr 30, 2025 Announcement • Feb 28
China Education Group Holdings Limited Approves Final Dividend for the Year Ended 31 August 2024 China Education Group Holdings Limited on 26 November 2024, the Board recommended the payment of a final dividend of RMB 10.28 cents (equivalent to approximately HKD 11.12 cents, according to the central parity rate of RMB to HKD as announced by the People's Bank of China on 26 November 2024, RMB 0.92407 equivalent to HKD 1.00) per Share for the year ended 31 August 2024 to the Shareholders whose names appear on the register of members of the Company on the Record Date and that the Final Dividend be satisfied wholly in cash, while Shareholders will be given an option to receive the Final Dividend wholly in the form of Scrip Shares in lieu of cash, or partly in cash and partly in the form of Scrip Shares. At the annual general meeting held on 21 January 2025, Shareholders approved the payment of the Final Dividend. For the purpose of determining Shareholders' entitlement to the Final Dividend, the Company's register of members was closed from 21 February 2025 to 26 February 2025 (both dates inclusive). The latest time by which transfers were accepted for registration for entitlement to the Final Dividend was 4:30 p.m. on 20 February 2025. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to HK$2.67, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 9x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 58% over the past three years. Upcoming Dividend • Feb 12
Upcoming dividend of HK$0.11 per share Eligible shareholders must have bought the stock before 19 February 2025. Payment date: 26 March 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 9.1%. Within top quartile of Hong Kong dividend payers (7.9%). Higher than average of industry peers (5.9%). Reported Earnings • Dec 29
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CN¥0.16 (down from CN¥0.55 in FY 2023). Revenue: CN¥6.58b (up 17% from FY 2023). Net income: CN¥418.0m (down 70% from FY 2023). Profit margin: 6.4% (down from 25% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 80%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has fallen by 35% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Dec 03
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥7.43b to CN¥7.18b. EPS estimate also fell from CN¥0.889 per share to CN¥0.79 per share. Net income forecast to grow 399% next year vs 22% growth forecast for Consumer Services industry in Hong Kong. Consensus price target down from HK$6.96 to HK$5.81. Share price fell 8.8% to HK$3.54 over the past week. Announcement • Nov 29
China Education Group Holdings Limited Proposes Final Dividend for the Year Ended 31 August 2024, Payable on 26 March 2025 China Education Group Holdings Limited proposed Final Dividend of RMB 0.1028 per share for the Year Ended 31 August 2024. Date of shareholders' approval is 21 January 2025. Ex-dividend date is 19 February 2025. Record date is 26 February 2025. Payment date is 26 March 2025. Declared Dividend • Nov 28
Final dividend of HK$0.11 announced Shareholders will receive a dividend of HK$0.11. Ex-date: 19th February 2025 Payment date: 26th March 2025 Dividend yield will be 8.7%, which is higher than the industry average of 5.9%. Sustainability & Growth The dividend has increased by an average of 28% per year over the past 6 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 100% to bring the payout ratio under control. EPS is expected to grow by 99% over the next 3 years, which should be enough to bring the dividend into a sustainable range. New Risk • Nov 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.4% Last year net profit margin: 25% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (6.4% net profit margin). Shareholders have been diluted in the past year (6.4% increase in shares outstanding). Reported Earnings • Nov 27
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CN¥0.16 (down from CN¥0.55 in FY 2023). Revenue: CN¥6.58b (up 17% from FY 2023). Net income: CN¥418.0m (down 70% from FY 2023). Profit margin: 6.4% (down from 25% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 80%. Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Announcement • Nov 26
China Education Group Holdings Limited, Annual General Meeting, Jan 21, 2025 China Education Group Holdings Limited, Annual General Meeting, Jan 21, 2025. Announcement • Nov 14
China Education Group Holdings Limited to Report Fiscal Year 2024 Results on Nov 26, 2024 China Education Group Holdings Limited announced that they will report fiscal year 2024 results on Nov 26, 2024 Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to HK$3.94, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 9x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 67% over the past three years. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$5.17, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 5x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 55% over the past three years. Recent Insider Transactions • Jul 21
Insider recently bought HK$166m worth of stock On the 18th of July, Guo Yu bought around 41m shares on-market at roughly HK$4.03 per share. This transaction amounted to 5.1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought HK$331m more in shares than they have sold in the last 12 months. Upcoming Dividend • May 31
Upcoming dividend of HK$0.21 per share Eligible shareholders must have bought the stock before 07 June 2024. Payment date: 18 July 2024. Trailing yield: 5.8%. Lower than top quartile of Hong Kong dividend payers (7.6%). In line with average of industry peers (5.3%). Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$4.75, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 4x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 70% over the past three years. Declared Dividend • Apr 29
First half dividend of HK$0.21 announced Shareholders will receive a dividend of HK$0.21. Ex-date: 7th June 2024 Payment date: 18th July 2024 Dividend yield will be 8.0%, which is higher than the industry average of 5.9%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (69% cash payout ratio). The dividend has increased by an average of 33% per year over the past 5 years. However, payments have been volatile during that time. EPS is expected to grow by 54% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 28
First half 2024 earnings released: EPS: CN¥0.42 (vs CN¥0.40 in 1H 2023) First half 2024 results: EPS: CN¥0.42 (up from CN¥0.40 in 1H 2023). Revenue: CN¥3.28b (up 18% from 1H 2023). Net income: CN¥1.07b (up 9.6% from 1H 2023). Profit margin: 33% (down from 35% in 1H 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Announcement • Apr 27
China Education Group Holdings Limited Announces an Interim Dividend for the Six Months Ended 29 February 2024, Payable on 18 July 2024 China Education Group Holdings Limited announced an interim dividend of RMB 0.1877 per share for the six months ended 29 February 2024. Ex-dividend date is 10 June 2024. Record date is 17 June 2024. Payment date is 18 July 2024. Announcement • Apr 16
China Education Group Holdings Limited to Report First Half, 2024 Results on Apr 26, 2024 China Education Group Holdings Limited announced that they will report first half, 2024 results on Apr 26, 2024 New Risk • Mar 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (25% net profit margin). Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$4.38, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 5x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 65% over the past three years. Upcoming Dividend • Feb 07
Upcoming dividend of HK$0.15 per share at 7.5% yield Eligible shareholders must have bought the stock before 14 February 2024. Payment date: 27 March 2024. Payout ratio is a comfortable 54% but the company is paying out more than the cash it is generating. Trailing yield: 7.5%. Lower than top quartile of Hong Kong dividend payers (8.7%). Higher than average of industry peers (5.8%). Valuation Update With 7 Day Price Move • Dec 04
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to HK$4.77, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 5x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 63% over the past three years. Announcement • Nov 29
China Education Group Holdings Limited Recommends Final Ordinary Dividend for the Year Ended 31 August 2023, Payable on or Around 27 March 2024 China Education Group Holdings Limited recommended Final ordinary Dividend of RMB 0.1353 per share for the Year Ended 31 August 2023. Ex-dividend date 14 February 2024. Record date 21 February 2024 and Payment date is on or Around 27 March 2024. Date of shareholders' approval is 30 January 2024. Reported Earnings • Nov 28
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CN¥0.55 (down from CN¥0.77 in FY 2022). Revenue: CN¥5.62b (up 18% from FY 2022). Net income: CN¥1.38b (down 25% from FY 2022). Profit margin: 25% (down from 39% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 30%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Announcement • Nov 27
China Education Group Holdings Limited, Annual General Meeting, Jan 30, 2024 China Education Group Holdings Limited, Annual General Meeting, Jan 30, 2024. Agenda: To consider final dividend. Announcement • Nov 15
China Education Group Holdings Limited to Report Fiscal Year 2023 Results on Nov 27, 2023 China Education Group Holdings Limited announced that they will report fiscal year 2023 results on Nov 27, 2023 Recent Insider Transactions • Jul 13
Executive Co-Chairman recently bought HK$3.0m worth of stock On the 5th of July, Guo Yu bought around 500k shares on-market at roughly HK$6.03 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth HK$14m. Guo has been a buyer over the last 12 months, purchasing a net total of HK$129m worth in shares. Recent Insider Transactions • Jul 05
Executive Co-Chairman recently bought HK$3.1m worth of stock On the 29th of June, Guo Yu bought around 500k shares on-market at roughly HK$6.13 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth HK$14m. Guo has been a buyer over the last 12 months, purchasing a net total of HK$120m worth in shares. Recent Insider Transactions • Jun 27
Executive Co-Chairman recently bought HK$6.6m worth of stock On the 20th of June, Guo Yu bought around 1m shares on-market at roughly HK$6.58 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth HK$14m. Guo has been a buyer over the last 12 months, purchasing a net total of HK$101m worth in shares. Recent Insider Transactions • Jun 06
Executive Co-Chairman recently bought HK$13m worth of stock On the 30th of May, Guo Yu bought around 2m shares on-market at roughly HK$6.40 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth HK$14m. Guo has been a buyer over the last 12 months, purchasing a net total of HK$94m worth in shares. Upcoming Dividend • Jun 02
Upcoming dividend of HK$0.19 per share at 5.7% yield Eligible shareholders must have bought the stock before 09 June 2023. Payment date: 20 July 2023. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 5.7%. Lower than top quartile of Hong Kong dividend payers (7.8%). Higher than average of industry peers (4.5%). Reported Earnings • May 30
First half 2023 earnings released: EPS: CN¥0.40 (vs CN¥0.49 in 1H 2022) First half 2023 results: EPS: CN¥0.40 (down from CN¥0.49 in 1H 2022). Revenue: CN¥2.78b (up 18% from 1H 2022). Net income: CN¥977.0m (down 16% from 1H 2022). Profit margin: 35% (down from 50% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Recent Insider Transactions • May 08
Executive Co-Chairman recently bought HK$14m worth of stock On the 4th of May, Ketao Xie bought around 2m shares on-market at roughly HK$7.15 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Ketao has been a buyer over the last 12 months, purchasing a net total of HK$42m worth in shares. Reported Earnings • Apr 30
First half 2023 earnings released: EPS: CN¥0.40 (vs CN¥0.49 in 1H 2022) First half 2023 results: EPS: CN¥0.40 (down from CN¥0.49 in 1H 2022). Revenue: CN¥2.78b (up 18% from 1H 2022). Net income: CN¥977.0m (down 16% from 1H 2022). Profit margin: 35% (down from 50% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Upcoming Dividend • Feb 08
Upcoming dividend of HK$0.37 per share at 3.4% yield Eligible shareholders must have bought the stock before 15 February 2023. Payment date: 29 March 2023. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Hong Kong dividend payers (8.0%). In line with average of industry peers (3.4%). Buying Opportunity • Feb 06
Now 22% undervalued Over the last 90 days, the stock is up 86%. The fair value is estimated to be HK$14.46, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 35%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings is also forecast to grow by 9.6% per annum over the same time period. Announcement • Jan 18
China Education Group Holdings Limited has completed a Follow-on Equity Offering in the amount of HKD 1.60818 billion. China Education Group Holdings Limited has completed a Follow-on Equity Offering in the amount of HKD 1.60818 billion.
Security Name: Shares
Security Type: Common Stock
Securities Offered: 147,000,000
Price\Range: HKD 10.94
Discount Per Security: HKD 0.07
Transaction Features: Subsequent Direct Listing Buying Opportunity • Jan 17
Now 21% undervalued Over the last 90 days, the stock is up 113%. The fair value is estimated to be HK$15.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 35%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings is also forecast to grow by 9.6% per annum over the same time period. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 16% share price gain to HK$11.16, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 7x in the Consumer Services industry in Hong Kong. Total returns to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$14.92 per share. Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment improved over the past week After last week's 16% share price gain to HK$8.94, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 6x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$15.19 per share. Reported Earnings • Nov 29
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: CN¥0.77 (up from CN¥0.65 in FY 2021). Revenue: CN¥4.76b (up 29% from FY 2021). Net income: CN¥1.85b (up 28% from FY 2021). Profit margin: 39% (in line with FY 2021). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 20%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Consumer Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improved over the past week After last week's 28% share price gain to HK$8.55, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 7x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 17% over the past three years. Announcement • Nov 17
China Education Group Holdings Limited to Report Fiscal Year 2022 Results on Nov 28, 2022 China Education Group Holdings Limited announced that they will report fiscal year 2022 results on Nov 28, 2022 Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Meng Rui was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improved over the past week After last week's 18% share price gain to HK$5.77, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 6x in the Consumer Services industry in Hong Kong. Total loss to shareholders of 48% over the past three years.