Q4 2020 Earnings Call
[music].
Ladies and gentlemen, thank you as far as Penni bright and walk spoke to Q4 and F. for 2000, that's what a T. T. L Education Group earnings Conference call. At this time, all participants are in listen only mode. After the speakers presentation, there will be a question and answer session.
As a question during this session you will need to press star one on your telephone.
Please be advised that today's conference is being recorded.
Oh I try to conference over its your first be good day.
Again, I, our director of T. L. Thank you. Please go ahead.
Right.
I'm here today.
You can go.
Fiscal quarter.
For 2020 earnings conference call.
Yes, we feel good order today I'd like to quite a copy of the company.
And with a new elsewhere.
This call well, yes, well chief financial Officer.
And I called life crafted and whatnot.
I felt Paul following the prepared remark.
Well on the new cobalt the available to answer your question.
Before I continue to know that the discussions today will contain forward looking statements.
Made under the say popular told you shouldnt be addressed private Securities Litigation Reform Act Nike exercise.
Forward looking statements are subject to risks.
He's that may cause actual results could differ materially from other carbon.
They should.
Potential risks and that doesn't include but are not limited to build alkali in the public fighting because I think you see someone from each of these real quick I'm not 70.
We refer to our fighting with the after you see.
Oh, I don't think they've called equals discussion about certain non-GAAP financial measures. Please refer to our Onethree <unk> based companies is reconfiguration of the non-GAAP metric for the most directly comparable GAAP measures I.
I'd like now preclinical work to be Theres, a mobile phone please.
Thank you Echo.
Linear and good morning to you all think of what you're on your out today only be earning call.
Before I return on our comedy performance. Please allow me to say, we feel worse, a ball to occur Kurt extraordinary time in China and worldwide.
Well were larger expressed a recent show southern is fully agree loss of life.
Or its simplicity to those who lost their long form into quoted others, who have theoretically suffer from movies tragic habits.
We're also extends our a deep gratitude and appreciation to people from old walks of life, including our employees, who have been working hard and doing absolutely everything to fighting against this.
Damage.
Our fourth fiscal quarter revenue performance was impacted by the outbreak of coal because my team in China, our precautionary measures with respect to resolve lumpiness.
And that could impact on our often business was partially offset by the gross mrna romancing Omar causes and related revenues sport of course.
No real new girls seem a fourth quarter was 18% year over year <unk> U.S. dollar terms to U.S. dollar 857.7 million and 21% <unk> I'd be incurred.
Wages inline with our forecast, reflecting our pre announcement on February 20 years.
After the operate off Cokemaking.
Total normal price long term causes student enrollments increased by 56.6% year over year, mostly driven by online your home and that's really struggle appeal small class.
GAAP loss for operations, what's your stalled or 41.3 million compared to GAAP income from operations of U.S. dollar 114.7 them either in the same period opt for years now.
Non-GAAP loss from operations, what's your sell 8.4 million compared to non-GAAP income for all patients off your dollar want to sort of 7 million in a singular goal period.
As we previously announced on April seven where discover so taken surfing, probably long threem <unk> in relation to like cross business, our routine into an auditing process there with a total revenue impact upward on U.S. dollar 60 86.1 million all RMB six.
Hi, Joe 2.6 million in the first three quarters of Pitco Twentytwenty.
<unk> us corresponding didn't pass to some other financial metrics are for each quarter of Fitzco Trinity.
Let me tell us a valuable waste our earnings release publish a few hours ago I would like to Richard that we're always follow a high send it off corporate governance and always have zero tolerance for illegal conduct.
I'll turn the call over to Linda our Vice President Finance, she will keep your update or other operational progress in the fourth quarter and that's the Echo your our IR director will reveal the fourth quarter our financials.
Today, I will update you on RMBS strategy and discuss other piece all look benefits.
Thanks, Joel I really.
Varies revenue stream of our children.
For the fourth quarter.
Let me start with small class and other business, which consists of she wants appeal smokes us for study lobby and some other education programs and the fill these days.
Nisa accounted for 68% of Cotwo, nice revenue compared to 76% and the folks.
The revenue goes treat was 6% U.S. dollar terms and 9% yeah I'm be true ups.
The lower than usual then he'll go through it was mainly due to two factors.
First the pricing Guy free phone, we offered in February when we had to migrate you often on small class fielded two I'm not small class.
Second the impact from spring to rescheduling.
In this period during the winter Cmos true we have will migrate dated.
Our also anticipate well on that platform.
As you know.
I don't I believe setting price Oh, yes, Pete it's lower than that Okay, you offline.
We have offered our customers the pricing gap, we found us compensation for now providing a perfect surveys.
After a brief transition preparation and the teacher training time available.
Furthermore, we also change so scheduling of hours into him copies to fully compliant with relevant education policy.
As a result to acetate smokiness fourth quarter revenue reflects the impact of these factors.
Let me emphasize that they're in caused by the immediate flexibility that our teachers students and parents have demonstrated in the light southeast origins translation.
Yes, the tail small class, which remains our stable copies.
Represented 59% of total net revenue in the false culture.
Compared to 66% in the same year ago kit.
The lower revenue contribution from concentrate yours was mostly due to the faster growth LCR outcome.
Phase.
Which accounted for 24% of total revenue in the quarter compared to 17% innocent here last year.
Net revenue, France, you asked the Peiyou small class was up 6% he U.S. dollar terms and 8% RMB true.
Our normal price lump sum coffee yeoman's increased by 37% year over year.
The I think that we found we offered <unk> off line smoke size smooth to online small class in February 2020.
During these unusual circumstances since way, how all our business delay word I I'm glad platform. We we are now separately these clothes offline and online pay your performance and he was appeared it's over an hour awful abuse needs. Your help he resumed.
Feel to the impact of the Kobe 19 outbreak. She <unk>, we chat 18 shot hi, <unk> 19.
Decreased by 3% here over here in U.S. dollar terms and accounted for 54% of <unk> isn't it.
Revenue generated from <unk> other than the top five <unk>, 18% and U.S. dollar terms.
Other cities accounted for 46% of <unk>.
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<unk> achieved year over year revenue girls, Oh, 30% English sell other true and 34%.
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<unk> accounted for approximately eight per cent of total revenue in the false culture, Okay, <unk> twentytwenty compared to seven per cent inner city or go here.
In killed for no price long term <unk> E.S.P. increase the but 8% detour them and increase to five 5% B.U.S. dollar terms year over year.
Now that's me update he'll our current capacity expansion strategies for.
<unk> five for dealing with the Kobe 19 near term impact.
They were temporarily logo also spend oh occurred off lung capacity girls class and the Monday for curse on improving the utilization great and operational efficiency.
However, we asked where they <unk>, we've got to the altitude of channels progress you were kind of school resumption and the channel adaptation industry market potential.
Little closely followed the government instruction off off not activity resumption and adjust our capacity expansion plan accordingly, and the based on the market demand of those these special cured.
Inhale for we added a night seventeenseven during centers.
In December January before the academic outbreak.
We open a nice Oh 73, new okay, you'll small class and learning centres and the other one on one centres.
And the close by myself three you know for sleep <unk>.
Joined the caught her we added 900 and.
Six page three tail smoke not as classroom.
Wait deep enough and for any new cities in the false culture.
Yeah, Oh by the end of February 2020.
Hi, 871 learning centres.
Seventies eighties wage 16, I try not say taste and once you have to pay your learning center in the United States.
Wage 648, or K.U. smokeless, an international education centers.
85, four and the only more <unk> smoke that.
And 124 <unk> on what.
As for kill a I'll fiscal year 20, plenty what he will now be so gradual work, we assumption in different cities uncle, we'd be due to walk face cracked his.
<unk> conditional eventing 44, k. use small classes or any centers.
We pack to add a few more on the close down some learning centres spaced out standard operations.
These estimates reflect our current takes tactician wages success for change.
<unk> online dismayed.
<unk> from Johnson Dot Com grew by six to eight per cent U.S. dollar terms year over year I'm, 72% <unk>.
<unk> long-term causes yeomans group by 96% year over year, two over tool meaning.
I'm not I'm contributed today.
Percent of total revenue under 44% of the <unk> caught her.
Compared to 17% of total revenue and 35% of total normal prize long-term causes ego buttons, he was saying year ago period, respectively.
The right to girls you know online business was supported by the current circumstances.
Rubbing the secular demand for Allah education, as well as sales and marketing efforts and retention solve the previous called her.
In addition.
Oh for nominal price that long term <unk> yeah.
Replaced by 16% I'm. He took 17% he goes the other terms year over year [noise] due to the mix change of our diversified online course offerings.
With that we are now to look <unk> over two I called in for the updates for physical called her financial results I Hope please.
Well, maybe about coping with them.
Points for the fourth quarter office for your 2020.
Well false it increased by 7.5% to U.S. dollars 451.8 million from 420.4 million U.S. dollars in the same your goal period gross margin for the fourth quarter <unk>, 252.7% as compared to 250.
7.9% to fold it didn't get rid of last year.
No. Some operations was 41.3 minute U.S. dollars in the fourth quarter of fiscal year 2020, compared to income from operations all for 100, and the 14.7 minutes. All is in the fourth quarter fiscal year 2019, no north from operations, which excludes.
Share I bet. The competition expenses was any point 4 million dressed all as compared to now that you can come from operations of 137 million U.S. dollars in the fourth quarter of fiscal year 2019.
And I lost I should be able to talk was 90.1 minute U.S. dollars in the fourth quarter of fiscal year 2020, compared to net income I should be able to talk all 99.6 million U.S. dollars in the fourth quarter of fiscal year 2000, I think no <unk> no loss actually beautiful too tall wage.
Excluded the shared based the compensation expenses was 57.2 million U.S. dollars in the fourth quarter of fiscal year 2020, compared to nine gap nagging com actually beautiful too tall. All 121.9 miniature follows you Miss any uncle period.
From the bad and shit as of February.
He might 2020, the company <unk> had 1800 and the seventies 3.9 million U.S. dollars of cash cash equivalents and 345.4 million U.S. dollars. Some short term investment compared to 1002 home.
Indeed.
7.1 million, just all that stuff cash and the cash equivalents and 268.4 million dressed all this of short term investment of February 22000 My team.
February 29th 2020, the company differ revenue balance was sent $181 million compared to 436.1 minute.
Well I dressed all in February 28th 2019.
Preventing a year over year, you Crazy all 79.1%.
Revenue, primarily <unk> <unk> <unk> that you are the ones all sorts of tenuous more class as long as different revenue religious rather businesses.
No I was trying to call back to Mr. Law to briefly update you on average strategy execution on the for why they have dismissed outlook off the next quarter.
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<unk> special problems.
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<unk> and open transport systems to public schools.
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No matter, what with live <unk> or our opinions and industry encourage you to see the <unk> material to improve and the politics true is continuing bit by bit.
<unk>, Oh government policies and regulations regarding the protection <unk> all flirt national popular hearse, we're always treat a 50 off our students employees over for per hour to operate our business based on this <unk> priorities.
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Continuously we're about to improve the overall online and offline adaptation technologist.
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Oh, you <unk> <unk>, leading companies and tries to education marquee was alone recall, Yeah education technology as good as it would have full confidence.
Development.
April 26.
Oh April <unk> <unk> <unk> <unk>.
<unk> has authorized purchase of odd to U.S. dollar 500 million awful accompanies common shares overland that's 12 months.
Vision slow comic lunch among new full accompany off the intention to read purchase opt you told us dollar 100 million.
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In a bonus <unk> revenue growth rate is expected to be the utterance of for the 5% to 48% for the first of course it I'll just go to movies and you are.
That can cross my for her remarks, operator, where no.
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[noise] Chellman, we will now begins a question and answer session.
He wished to ask questions. Please breasts are one on your telephone and wait for him to be announced.
<unk>, So you already quest least rasta <unk>.
Your first question comes from the line of Alex's from Credit Suisse. Please answer questions.
<unk> simple for kicking my question.
Would you be killed or more.
Details about your body than for the first cold here Okay.
In terms of outlook.
Difference baseline.
And.
What will be on occasion for the margin in the corridor, Okay, why shouldn't be one and we have see <unk> nothing back might be a lie in the fourth quarter, what they pen for the first codes are all right that'd be one online badminton. Thank you.
Products.
Just as we know till 40, so right difficult time are you running coming to kill <unk> <unk> lightly March April today still with that smell. Good 10 Bucks I think older. Our company is on the high pressures <unk> English industry.
Let me hard to keep your <unk> clarity on my cool cool one guidance I think I try to speak interest rate segments number one.
<unk> pale from across speakers are there are also killed for an appeal for you February <unk> you know the outbreak is totally all that's a surprise to us. So we have <unk> time to move the students from all planned to online by coming from <unk> with a much better talk then <unk>.
In <unk>, so woodworking see that's even kill <unk>, the low pay all small cost me to steal them and paying Oh, well why how she grossing the range off 20% to 30%.
And the <unk>, which is also quite impacted by the the the the opera <unk>. So all we also move them too often to online <unk> low <unk>. They have it's less than before I think one in general it they can only girl maybe high single digit.
And the <unk>, it's ourselves on at school.
The one school.
Treat their gross has to be a salary to five is kind of past situation because the Olympic <unk> only available offering Twitter students. If they want you can just about it so let's trust dot com. The online scooping is where controller girl I seem to want they can grow maybe triple digits, So which is comparable I solved.
That's what I what they're.
So I would kill regardless today halfway flatter you. All this information is from a mainstream business and least guidance stop no you couldn't anything from acquisition I'll I'll actually because I think the reason we give guidance still based on other makes room business.
A.
A number two I think about across from Obama monitoring.
<unk> us our <unk> <unk> English culture, However, <unk> also under pressure.
It's hard to keep them more covered over there number one and you must trust online for.
<unk> Trust all my school business.
Continuously offering the freight costs two k. 12 students all over China and Beast have started from February Arrow continual movies in March and April and you've been today. So this is a free classes to older students and <unk> other custom comedy that's something we should.
<unk>.
Golf course visible costs some money.
And you know second place I think when we see more than most field into moving from all bent on like the numbers up on a students hazard <unk> today. They also require the second level off investments from different perspective number along when you put you invest money and more energy Oh the kitchen.
Quality when you think less more all the teachers.
When you train on a teacher split when you <unk>.
Hey, we need to make sure we spend enough time on a team called it is to make sure 'cause satisfy the parents and students but to some quality was always lucky and the first priorities no matters before often I'm just all my business.
We also need to optimize the other online teaching technologies and you can reach the <unk> in a conference I think a few years ago. We only have made less they were 100000 students to the pressure is is is much less about today <unk> start you know careful I think that difficulties and the text.
Challenges will just future proof, so wait <unk> investment to make sure all the little <unk> Camille in its way com rely on what we're going back before we need to <unk>.
Forms can be <unk> movies industry.
And not you know slickers were also we thinking about some money all the saudis mom and and and I in the promotion.
Maxing started.
Because you know right before this <unk> puria most of my students ask the fullest also I just graduated coming from the Caroline show two cities, but today, we'd probably get see there's more and more skilled is coming from the low pure drug or if it's and.
Them for some cases, they don't know us before so we still require a certain level of self marketing Bessie over there <unk> capture the market share.
And.
And lastly, you know show special color <unk>, it's already a 24% off my copious rather imagine I think you're one.
More or less whereas some chance to make sure. We can run the online <unk> almost brick even but still compelled to <unk> I think they're probabilities, it's much less and even today wait for the trust online. The most important priority for that you just get more market share to have most <unk>.
And even king all for a repaid. So this is all free. So this is truest goes all over China. So the <unk>.
In a second place. We also have some challenge of coming from a pale part.
Yeah, when we move older people, often I'm still goes to online way, we're still a way. We're also kicks off of the promotions all coupons tool up here, often and showed us when they move for all bent on line. So <unk> <unk> <unk> <unk> <unk> dropped.
A little be I think you for your parking see that because we moved to spend from Atlanta online <unk> drop any sort of percent.
<unk> <unk> <unk> <unk> still dropping.
And <unk> this kind of chopping will lead to the the reducing our <unk> also lead to to pressure to avert button I.
And I also want to talk about our pray tape it is.
Because when let's see where this movie pro opened the online, especially for the pre tapings for the students age from three to six it's very tough, it's really tough I think they our pre k. They they spent more time and thing <unk> sectors to persuade of students.
Moving from often to online you chew on them, making sure progress, but compelled to Dallas, Texas, There still is a little bit behind.
<unk> also a craze some kind of the precious to all the button like this is not only for us if you're going to see some other companies movies area. They also showed us in Penn.
Lastly, we also being Ah Ah Ah smile location and open <unk>, while waiting to open up platforms and support more Ah public schools, and a small and medium sized companies to measure helping them to moving often to online and we also vicious also.
Some money today would have some supporting many more times offer the customer today thing I think the number we have right before.
The virus. So a vicious also a kind of challenge in the cost side to other people to pay off and so all I think we have some challenge is coming from <unk> pales, <unk>, I'm pretty tapings and to be business and this all all disability.
Some precious off my bottom line into.
We're still believe that's the right with some necessary costs and and Mister money, we have to spend and that's also the shopping Pat if way pulled them along you I'll make sure yes time will be beneficial from there.
I bet, there's a good blow up so do do think the along that and then in in the meeting two quarters no the or.
There's a line that's been in a whole new up that's why did you want just you creep.
Can occur for a classroom dooming <unk>, yeah go while we're leach yay.
Because.
You know the promotion schedule of.
Cool.
Earlier than before so it funny loaded.
<unk> <unk> or the whole budget it more than before.
Okay number one I think if we can read catch story last year last year actually if you can go back to check my screen like the last few of July uncool to with the me I got <unk> actually way out why we rushed mould to do that kind of promotions on the to go into the war.
This year I think with a much more prepare them before and because of the special time and even today a lot of school with a skill closing China, all that'd be kind of only offered him for the field. So we spend some money oh caught in c. to make children catch opportunity and but today I think a little bit.
Early too.
<unk>, Yeah number will be the costs you know, let's patients change every day and resting trying to sketching maturity. That's in bad here. So today I don't have for a kind of <unk>.
I can say is way believe your wife is like having to give us and we believe <unk> to go out online much better than to before I think <unk> injuries, 8% not sure why is triple digit gross so we're way way, we'll we'll try to capture the market share in the olden the opinions.
We have today <unk> worry cautiously toluene to my <unk> marketing quota over a quarter. So I can give you some kind of colors, when that's courts or by cocky feel for that for years and less <unk> open <unk>, we have seen anything more.
Julio Us all and it's you wouldn't come up with your numbers.
Okay. Thank you.
They got X.
Your next question comes from the line that might lead from C.T. Please ask your question.
Hi, a management. Thanks for picking my question I will ask actually I eat thing for these quota the online revenue growth a little bit slow Oh could you share any reason for that.
The I notice for the upcoming quota that seems to be some price judgmental high prices for the <unk>. So so why he's just strategy and how much stuff to help do a thing going bullet. Thank you.
Okay, I think he'll fall killed for the stress online school gross it's around 70% plus minus and that's <unk>. That's because you know last year till four actually is also a year big quarter slots, if we put them into maybe.
A a corpus video and coming to kill one and <unk> online girls with a Saturday T.B. costs up special time, which is also quite normal across the board if you're going to sound <unk> area for the for like like the so.
Companies and so.
We believe for the whole year, we'll have challenged to grow Abra stress on school kind of for the <unk> heresy gross <unk> a little bit.
So why go up to <unk> to get more like this year.
Your question on a ball less stressful high school <unk> price <unk> number one the reason, we why we'd want to do to shrug on the screen is because we're way she was to the own I offered to so most people. Most students I just say that's why I said before in owning costs I seem to keep purpose plus online.
<unk> to provide a fourth of both solutions pulled her students <unk> possible.
<unk>, we don't have to any intention to say, we want to <unk> kind of my white high priced Proto no, but <unk>, a gift and fair price into a photo prize two oldest student so we have some <unk>.
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P just dropping and <unk> and you don't you know <unk> students. So all your ball like believe for the owner offering the key is to take care of <unk> affordable way with the <unk> intentions to make make your high price part I'll hide.
<unk> I mean <unk> people.
<unk>.
Okay. Thank you all are very fit.
And come back.
Your next question comes from the line huge I'm from C.I.C.C. Please ask your question.
He management.
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Some business.
Given the <unk>.
Oh, which was a <unk> so how should we seem to body or.
Hoffman strategies, Tony's O.C.D. or 21, particularly I'm used to plastics patient.
Be more optimistic about this given given seems to be a bigger.
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I think John.
Okay take Tonight.
We may have just to mention upbeat that feeling that special kids.
Temporary filled out.
Some of our.
Learning centers as well as classroom expansion plan.
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Focusing more optimization work internal operational efficiency and controlling unnecessary often cost during the cold like 19 period.
I like how many many years of executing feelings off okay extension.
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Make any adjustments of our near to them and lung capacity.
Based on the actual matching.
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China has achieved great. So glad and waited closely follow the elements instructions off off not activity resumption take our actions accordingly.
Yes, and let me try to I'm more cautious about it.
In the first place.
Speaking.
We don't want to be optimistic all maybe pessimistic own when we can't go back to our normal off line being swept no idea, what we need to do is where 100% <unk> and <unk>.
<unk>.
And you know second pace.
Thing.
Rafter these kind of <unk> virus allow students are forced to study online.
After that solve for students they would choose to stay all night environment and solving students there with decided to go up at the off line <unk> No matter War.
A certain percentage off let's do this could get used to the only offers we'll get into use online more often than before.
So she <unk> today in the Shelton <unk>, the kind of put a new learning sent expansion pace I would also real low into more spaces to optimize the network for the software <unk> first <unk> learning centres, which efficiency with <unk>.
We will follow our standard operation plus deals to close them all maybe she stopped area would try to optimize <unk>.
So wait let's seems become more clear maybe next quarter or maybe the next two quarters, where things become more career readiness demarchi whatever you can see that sends or we can see so when it since I'm more clear where decided to were also pre prepare holic and <unk> all flat accretions, you know, possibly 70.
Years to do over right business. So today <unk> wave prefer to take <unk> approach, you know network development temporally, and we'll wait and see what will happen in the coming <unk> two courses racist getting better where we will react quickly.
You don't.
Thank you very helpful.
Your next question comes from the line of change Huh Morgan Stanley. Please answer question.
I think it's like taking my question I want to sign up.
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Question. So yeah. You you mentioned that you have signed up a more that they see fight club, Okay, <unk> I can't consent or whether he could you know pre k., a new you <unk> <unk> and you can eat so can you pull.
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For the overall blended.
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May Saudis lie mess and and and <unk>. So <unk> April <unk> <unk> offers on pasta.
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And besides that I said <unk> previous they were also adding for example that on encoding protests and <unk> and yes, you are <unk> quite right as well so adding some pre k. protests on populace stress on a travels so and <unk> producing plays a way our purpose.
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The the the key priority to where you want to persuade we've tried to do what we try to do is we <unk>, that's still use that market share again.
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That's that's a very clear thank you very much.
And go don't Ya.
Yeah.
Your next question comes from the line of Phoenix views from you'd be asked me ask your question.
Ah Good evening management thinking of that much for taking my question. My question is F. a lot bombed a alliance strategy.
First you previously mentioned several areas that.
Sets, such as teaching quality technology, and Sally a marketing I'm wondering between those three what are your priorities and Q1 and maybe for the rest of the year, how how should lead rank in terms that the amount that that spending and secondly.
I think there are there as you mentioned there it's a shift in our user base in terms of <unk> Dot com. So I'm just wondering about them in any shifts in our selling our marketing strategy going for it.
Ah wondering if he could share the the the size of the teaching staff at <unk> Dot com and such as the instructors and tutors. Thank you.
Okay. So let me try to read kept your question <unk> number wise to waste my priority <unk> average for my stress on in school right.
Yes.
Number one number two classroom.
And then my two is there any change in Sally and marketing strategy, given we now have a more customers and low weight yesterday.
Okay and number eight is what number screwed class huh.
Ah the size of teaching staff in terms of numbers <unk>, okay, great great. Okay.
I think.
Online school actually is now is you know sometimes let people will say that online is a new animal you space by French speaking when we're running his mother for a few years to retrain ourselves on I screw us.
Kind of a normal buildings already I can laugh killed for he said I'm 24, plus Alf Robert away and 44% off in your home, it's already almost hop off my you almost coming from.
The the the online space, so <unk>, our priority will be sent number one.
Yeah, that's something that you can quality that's that that's always lucky we need to make sure all the contents and cities within <unk> can be done, it's especially when a number of students has quickly and craze for only 200 solden to feel minutes, a child and she will totally different so we need to make sure all for all content.
<unk> I have a teacher team and all our thinking what together to make sure with you you have a high quality qualities everything.
<unk>, especially technology I think you'll probably you'll guys can't even remember story, you know why would they gaining a write off to be operate off the Kobe 19, soften the old Taffel actually paid crush because they can bear the high pressure from a trap. It's so wait a while for the path ones.
<unk>, a little bit better than data one when not perfect, but we have to leave it would be better than data one and these kinds of this kind of level qualities require significant level often investment older <unk>.
So <unk>.
I think you know so priorities staffing the way you need to spend.
Relatives level Offseason marketing to <unk> people can <unk> Oh, Baroness then what people know us, saying as to what else see data capacity in the movies sexist.
Pass and most recently, so we need to maintain wait wait still competitive <unk> setting and <unk> <unk> <unk>.
And the same question, you're asking about what's that kind of policy change for south in marketing woman can say is actually we'll have to running some promotions.
In the past two to three years, we get lots of lesson letting.
This year will have some kind of new opportunities and way provide a lot of free cautious tool on my students, which lead to <unk> platform.
And this is something Neil even today, we cannot figure out what's the maybe significant difference for all visa pros tool <unk> approach so <unk>.
Today is carefully go into every channel and I use a worry a cautious oh I model to ensure that efficiency and also it goes to the channels, we have for the new channels, who just happen.
<unk> to make sure you investments. It also if it is similar.
Even today or if you're asking me wasting the best way to spend the money I I don't have <unk> <unk> <unk> <unk> <unk> worry costly to every channel, including the maybe C.P.S. channel all maybe the bringing channels and we closely looting choose the results and make adjustments made matters.
Adjustments According to me.
And a number three left size off our <unk> the teacher assistance.
Why why we used.
<unk> emphasize as it's worry important that we have the qualified and the good quality Peach I suspense movies model, let teach assistance cannot be trade only part of the machine. This model. They are real people in a real teach us so they they they have received cool enough.
Training and they also taking care of <unk> when they talk to her parents in public students. They give me a lot of knowledge is a lot of hair to the students waste management would cherish oh off their efforts spray much. So we will continue to <unk>.
Buttons I would trust all I'm tough all based on the minutes from the the the the less students. So if you ask me that they tell numbers <unk>, how many teach assistance with me why can't say is we need to balance between the efficiency I mean, you're better.
<unk> I am the final result, and it's satisfaction. So on the parents. If you asked me to pick one side walks efficiency data lines lets students sex sex and race I.P. lots of while which way the parents and students <unk> efficiencies. So we need to running a company best a day, where you have.
More than me then so students went into running this past fall you are much more balanced view.
Thank you.
I see thank you very much.
Yeah. Our next question comes from the line of cues from China Renaissance. These ask your question.
Oh. Thank you know I have two questions. So the first one is on the pay online. So obviously right now.
Everybody study Oh right right now things go normalized how can we think about a stand alone margin for.
Right.
And.
Grow bigger and bigger how about this business impact on our long term <unk> small classes margin target.
This is the first question and the second question is the Crazy horse the Dot com business, how important that's maintaining the number one in the market means but.
If everybody in the market, losing money. Thank you.
[laughter].
Okay.
I think the pay on life, because most of all people as soon as actually they do <unk> often before so they don't need to spend that much money on <unk> have quite a new students. So the margin I'll look for the pill life is much better than data.
Waste their contribution from her life, it's bigger and bigger weighed more or less we'll have some kind of leverage mattress pad coming from there, but you know most recent the way most older pay off lenders to appeal on line. So we'll have a running the pale <unk>.
Black beans, now so all of these we need to base on the reaction off the students and parents and May master adjustments over there. So I kind of call my wife's let the eruption for that will fall wife, and say, it's wessing way more students and parents that bindings offers much money before so way.
We're also seeing what how's it goes coming from people alive way coffee them about that.
You're a second question is asking me is important to maintain number one in B.'s and Oh, My education sector right. It's important to be be there for us to pay or is he missed marcie.
Yeah.
French speaking I think.
<unk> you have a company <unk> worry important kind of from the values call for.
Yeah.
<unk> much more important than being bigger. So we personally we don't have any kind of intention to say we need to maintain number one I mean this market.
Number one whale oil same number wyoming's the size the <unk>.
<unk> care more isn't according to.
<unk> if way K. surplus students, where we can let all the parents you feel satisfied and waking <unk> offering sway small kind of automation, even wanting pads from Florida.
It's <unk>.
Photoshop channel or maybe even don't turn rather than the the <unk> all the actual sites just number well no I think that care less to us.
So far be costly are the first movie movies market. So we still have <unk>, you know, where I still bigger than datalogix market again, <unk> prerogative being stronger and be more competitive and being better to the students in the parents that are <unk>. Thank you.
Thank you.
Thank you, ladies and gentlemen, I can't see we have run out of time for any further questions.
The C.D.'s conference calls and keys for participating in me I'll just kidding.
<unk>.
Yeah.
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[music].
[laughter].