Q3 2023 QuantaSing Group Limited Earnings Call

June 1, 2023

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Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to QuantaSing's earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question and answer session after management's prepared remarks. Please note that today's event is being recorded. I will now turn the conference over to Ms. Leah Guo, Associate Director of Investor Relations of the company. Please go ahead, ma'am.

Good morning and good evening ladies and gentlemen. Thank you for standing by and welcome to Quantisings Earnings Conference call.

At this time, all participants are in a listen-only mode.

We will be hosting a question and answer session after management's prepared remarks.

Please note that today's event is being recorded.

I will now turn the conference over to Ms. Leah Guo, Investor Relations Associate Director of the company. Please go ahead, ma'am. Leah Guo, Investor Relations Associate Director of the company

Leah Guo: Thank you. Hello, everyone, and welcome to QuantaSing's earnings call for Q3 of fiscal year 2023. With us today are Mr. Peng Li, our founder, chairman, and CEO, and Mr. Tim Xie, our CFO. Mr. Li will give a general business overview for the quarter, and then Tim will discuss the financials in more details. Following their prepared remarks, Mr. Li and Tim will be available for the Q&A session. I will translate for Mr. Li. If you refer to our Q3 fiscal quarter financial results on our IR website at ir.quantasing.com. You can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call as we will be making forward-looking statements.

Thank you. Hello everyone and welcome to Cornerstone's earnings call for the third quarter of fiscal year 2023. With us today are Mr. Peng Li, our founder, chairman and CEO and Mr. Tin Tse, our CFO . Mr. Li will give a general business overview for the quarter and then Tim will discuss the financials in more details.

Following their prepared remarks, Mr. Lee and team will be available for the Q&A session. I will translate for Mr. Lee. If you refer to our third fiscal quarter financial results on our IR website at ir.quantising.com, you can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion.

Before we continue, I would like to refer you to our Safe Harbor Statement in our earnings price release, which also applies to this call, as we will be making forward-looking statements. Please note that all numbers stated in the following management prepared remarks are in RIB terms, and we will discuss non-gas measures today.

Leah Guo: Please note that all numbers stated in the following management prepared remarks are in RMB terms, and we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filings with the SEC. I will now turn the call over to the CEO and Founder of QuantaSing, Mr. Li.

which are more thoroughly explained and reconciled to the most comparable measures reported in our annuals release and filings with the SBC. I will now turn the call over to the CEO and founder of QuantaSync, Mr. Lee.

Peng Li: Okay. Thank you, everyone, for attending this meeting. I'm Peng Li, the Founder and CEO of the company. Our commitment to our mission of improving people's quality of life through interest-based learning led to positive results in Q3 2023. With strong pipeline visibility, diversified revenue stream and an expansive addressable market. We were able to maintain our revenue growth and profitability path. During the quarter, we recorded 16.8% year-over-year revenue growth and an adjusted net income of RMB 21.7 million. This marks our second profitable quarter in a row. Our strong pipeline visibility is shown by our registered user growth. As of 31 March 2023, we had around 86.3 million registered users. This is a 76.5% increase from the previous year. This number of paying learners grew by 45.4% year-over-year to approximately 0.4 million.

Okay, thank you everyone for attending this meeting. I'm Pundi, the founder and CEO of the company.

Our commitment to our mission of improving people's quality of life through interest-based learning led to positive results in the third fiscal quarter of 2023.

With strong pipeline visibility, diversified revenue stream and an expensive addressable market, we were able to maintain our revenue growth and profitability path.

During the quarter, we recorded

16.8

year-over-year revenue growth and an adjusted net income of 21.7 million RMB. This marks our second profitable quarter in a row.

Our strong pipeline visibility is shown by our registered user growth. As of March 2018, the users are now in the region or region 5.org to run against those speakers via Terra.

31, 2023. We had around 86.3 million registered users. This is 76.5% increase from the previous year.

This number of paying learners grew by...

45.4% year-over-year to approximately 0.4 million.

Peng Li: Our focus on agile, scalable business models have allowed us to rapidly expand our course offerings and attract a large and growing user base. Since August 2021, we have ventured into offering learning courses tailored to personal interests, a strategic move that has garnered constant repeat purchase. We are especially delighted by the results of this quarter, and our diverse and engaging courses have generated an impressive 11% repeat purchase rate. This figure has been steadily growing since the launch of our personal interest brands. We have developed various ways to ensure customer loyalty and encourage repeat purchase. We do this by providing a high quality and engaging experience for our learners. Our dual instructor model of live streaming and community building combines practical exercises, one-on-one coaching, pre-recorded lectures, and supplemental Q&A live classes.

Our focus on agile, scalable business models have allowed us to rapidly expand our cost offerings.

and attract a large and growing user base.

Since August 2021, we have ventured into offering learning courses.

tailored to personal interests.

a static mode that

has garnered constant repeat purchase. We have

Especially delighted by the results of this quarter. Our diverse and engaging courses have generated an impressive 11% success rate.

Especially delighted by the results of this quarter. Our diverse and engaging courses have generated an impressive 11% repeat purchase rate.

This figure has been steadily growing since the launch of our personal interest branch.

We have developed various ways to ensure customer loyalty and encourage repeat purchase.

We do this by providing a high quality and engaging experience for our learners.

Our dual instructor model of live streaming and

community building combined.

practical exercises.

One-on-one coaching.

pre-recorded lectures and supplemental Q&A live courses.

Peng Li: These features enhance the joy and effectiveness of learning by fostering interaction and communication between instructors and learners. We follow the principle of service-driven excellence to ensure that learners receive the best possible value from our courses. Our courses are customized to our learners' specific needs. With a focus on developing their skills and abilities, we also provide other courses that offer professional value-added services. These allow our learners to apply what they have learned in practical settings. Our user-centered courses and service provision are subject to a stringent review process. This process involves careful selection of our tutors and instructors, training, and service standards. Our repeat purchase rate provides us with excellent visibility into our sales pipeline. As such, we are able to forecast revenue and manage our budgets with greater accuracy. Our commitment to diversified revenue streams has been a critical factor in our growth trajectory.

These features enhance the joy and effectiveness of learning by

fostering interaction and communication between its structures and learners.

We follow the...

principle of service-driven experience, excellence to ensure that learners receive the best possible value from our courses.

Our courses are customized to our learners' specific needs.

With a focus on developing their skills and abilities, we also provide other courses that offer professional value-added services.

This allows our learners to apply what they have learned in practical settings.

Our user-centered copies.

and the service provision.

provision.

subject to

stringent review process.

This process involves careful selection of our tutors and instructors.

training and service standards.

Our repeat process reads

provides us with excellent visibility into our sales pipeline.

As such, we are able to focus the revenue and manage our budget with the

greater accuracy.

our commitment to

diversified revenue streams has been a critical factor in our growth trajectory.

Peng Li: By offering a wide range of services to both individuals and enterprises, we have been able to meet the needs of learners from diverse backgrounds and tap into various markets and revenue streams. We remain dedicated to addressing the dynamic demands of the business landscape, and we have been developing our enterprise-oriented services accordingly. This is exemplified by our train-the-trainer training camp, or TTT camp, led by experienced internal training specialists. This comprehensive course empowers novice trainers with essential skills across a wide range of modules. Covered topics include course development, activity design, presentation skills, and mastery of training knowledge. Participants gain hands-on experience in creating materials, designing activities, delivering impactful presentations, building expertise, and enhancing the overall training experience. In addition to our TTT camp, our expanding suite of enterprise-oriented services is equipping businesses with the necessary tools and training to optimize talent management and development.

by offering a wide range of services to both individuals and enterprises.

We have been able to meet the needs of learners.

from diverse backgrounds and tap into various markets and revenue streams.

We remain dedicated to addressing the dynamic demands of the business landscape.

And we have been developing our enterprise-oriented services accordingly.

This is exemplified by our Trainer Training Cat or TTT Cat.

led by experienced internal training specialist.

This comprehensive cost empowers

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trainers with essential skills across a wide range of modules.

Our topics include costs.

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Activity Design

presentation skills and

mastery of training knowledge

Participants gain hands-on experience in creating materials.

and hands-on experience in creating materials designing activities

delivering impactful presentations.

building

extra expertise and enhancing the overall training experience.

in adding to our TDD camp.

in adding to our TTT camp, our expanding field of...

enterprise-oriented services is equipping.

businesses with the necessary tools and training to optimize talent management and development.

Peng Li: By extending our service offerings to enterprises, we position ourselves as a two-sided service provider. Our solution addresses the needs of both individuals and enterprises. This strategy reaffirms our commitment to delivering unmatched value and fostering enduring success with the corporate sector. Moreover, our targeted approach to course offerings provides exceptional value to our learners while maximizing our revenues. During the Q3 fiscal quarter, revenue from other personal interest courses grew to RMB 238 million, contributing 29.5% of our total revenues. We continuously introduce high-quality, pure, and accessible content that resonates with our users. Our courses help people expand their horizons, enrich their lives, and achieve self-fulfillment. Through strategic course development, we address in-demand topics and capitalize on higher profit margins, expanding our reach and seizing new opportunities for revenue growth. These efforts reflect our unwavering commitment to empowering learners and help them thrive in our changing world.

By sending our service offerings to enterprises, we position ourselves as a two-sided service provider. Our solutions address the service offerings to organizations, and we position ourselves as a two-sided service provider.

the needs of both individuals and enterprises. This tragedy reaffirms our commitment to delivering unmatched value and the...

fostering enduring success with the corporate sector.

enduring success with the corporate sector. My own work.

our targeted approach to

cost offerings provides.

Thank you guys.

exceptional value to our learners while maximizing our revenues.

exceptional value to our learners while maximizing our revenues. During the third fiscal quarter,

revenue from other personal interest courses go to

238 milliRMB

contributing 28 29.5 percent of our total revenues

We continuously introduce high quality, purely accessible content that resonates with our users.

Our courses help people expand their horizons.

enrich their life under a true self-fulfillment.

through strategic calls.

development we address in demand topics and optimize property lies on higher profit margin

It's pending our reach and seizing new opportunities for revenue growth.

These efforts reflect our unwavering commitment to empowering learners and help them strive in our attending world.

Peng Li: Take the example of a retired man in Harbin who found joy in learning calligraphy through our platform. He finally had the time and the opportunity to pursue his passion. Calligraphy not only brought him happiness and satisfaction, but also improved his hand-eye coordination. We are thrilled that our interest-based learning courses gave him the opportunity to reach his goals and better his life. Another example is a 54-year-old homemaker who discovered our memory training course and improved her memory through regular practice. Our instructor's unique and engaging lecture style, combined with regular reviews, made the learning experience enjoyable and informative. The homemaker expressed her gratitude for the useful course, which has improved her self-confidence. She also praised the online learning atmosphere, which helped make the experience positive and impactful.

Take the example of a retired man in Harbin who found joy in learning

calligraphy through our platform.

He finally had the time and the opportunity to pursue his passion.

The calligraphy not only brought him happiness and satisfaction, but also improved his hand-eye coordination.

We are proud that our interest-based learning courses give him the opportunity to reach his goals and better his life.

Another example is a

a 54-year-old homemaker who discovered our memory training course.

improve her memory through regular practice.

Our instructors' unique and engaging lectures dealt combined with regular review.

May the learning experience with enjoyable and

In formative, the homemaker impressed her gratitude for the useful cost, which has been

which has improved her self-confidence.

She also praised online learning.

Peng Li: Finally, we have the empowering story of a man who lives a fulfilled life, owning a Taobao bookstore and a beauty store. Recently, he decided to try making short videos. To learn about video editing, he turned to our JiangZhen platform and quickly acquired the skills needed for his new interest. He then created videos inspired by the characters from the TV series, "Dream of the Red Chamber." The content is original and innovative and reflects his personality and new interest, which helped him to expand his follower base, and he is now able to share his creations with a wider audience. We are proud that our accessible and diversified learning resources can empower individuals to pursue their passions and achieve their dreams. At QuantaSing, we are committed to create aWe branch community that fosters collaboration and interaction among our learners.

atmosphere.

which helped make the experience positive and impacting.

what makes the experience positive and impacting.

We have the empowering story of a man who leads a full field life owning a Taobao bookstore and a beauty store recently he decided to try making short videos

Learn about video editing.

They turn they turn it to our junction platform and quickly acquired these skills

needed for his new interest.

button created

Videos inspired by the characters from the TV series Game of the Red Chamber.

The content is original and innovative and reflects his personality and interest.

is original and innovative and reflects his personality and interest.

helped him to expand his follower base and he is now able to share his creations with a wider audience.

We are prompt that our accessible and diversified learning results.

can empower individuals to pursue their passions and achieve their dreams.

At Corefishing, we are committed to create a

web-run community that fosters

community that fosters uh

Peng Li: Our courses offer top quality content and encourage engagement and participation. As well as our online offerings, we host a range of offline activities such as workshops, meetups, and networking events. One such event that we recently hosted was the Memory Challenge on 25 March. The event was followed by thousands of people and around 1,000 registered to take part. From these applications, 30 people were selected to participate in this offline finals. The finalists had the opportunity to engage with an international master of memory, our memory instructors, and memory experts. It was an exciting and engaging event that showcased our commitment to building a strong community and promoting lifelong learning. In February 2023, we launched a sales training program for paying users of our advanced short video courses. The program is the industry's first of its kind closed-loop learning model based on the knowledge practice application circle.

Call up.

to work with collaboration and

interaction among our learners.

Our courses offer top quality content and encourage engagements and...

quality content and encourage engagement and participation.

As well as our online offerings, we host a range of offline activities such as workshops, meetups, and networking events. One such event that we recently hosted was the memory challenge.

on March.

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Fifth, the event was followed by thousands of people and around 1,000 Reddit teams to take part.

The event was followed by thousands of people and around 1000 Reddit teams to take part.

30 people were selected to participate in this offline final.

The finalists had the opportunity to engage with the International Master of Memory.

Our memory instructors and the memory experts

It was an exciting and engaging event that showcased our commitment to building a strong community and promoting lifelong learning.

In February 2023, we launched a self-training program for paying users.

of our advanced short video content. The program is the industry's first office can't

closed loop learning model based on the

Peng Li: It provides learners with product selection assistance and further facilitates the practical application of knowledge by our learners. In an aging society like China, there is a significant market demand for the senior citizen learning. According to the WHO, the percentage of people in China aged 60 or above is expected to rise from 18.7% in 2020 to 28% in 2040. This will create a huge opportunity for us to help seniors embrace lifelong learning. Our QianChi and JiangZhen platforms provide user-friendly, interest-based learning resources that benefit senior learners. Our courses provide opportunities for learners to build self-confidence and self-esteem through social connection. As a result, our senior learners can develop a greater sense of belonging and fulfillment. In addition, our diversified course content allow users to access learning materials in different fields and expand their horizons.

knowledge practice application circle.

And further.

facilitate the practical application of knowledge by our learners.

In an aging society like China,

In an aging society like China, there is a

significant market demand for the senior citizen learning.

According to the WHO, the percentage of people in China aged 60 or above is expected to rise from 18.7% in 2020 to 28% in 2014.

This will create a huge opportunity for us to help seniors.

a huge opportunity for us to help seniors.

in embrace lifelong learning. Our change on a junction platform provides.

user-friendly, interest-based learning results that benefit senior learners.

Our courses provide opportunities for learners to build self-confidence and self-esteem.

through social connection.

social connection as a result.

Our senior learners can develop a greater sense of belonging and fulfillment. In addition, our senior learners can develop a greater sense of belonging and fulfillment.

Our diversified cost content allows users to access learning materials in different fields and expand their horizons.

Peng Li: This can help people developing self-sufficiency skills, which they can then apply to other areas of their lives. As we continue to serve this growing market, we are confident that we can create value for both our learners and shareholders. This will position us for continuous success in this market. To summarize, we have sustained our revenue growth while efficiently controlling costs to boost our path to profitability and improve our cash flow. Our continuous efforts in optimizing our cost structure have begun to bear fruit. This is evident for our two consecutive quarters of positive adjusted net income. With our innovative course offerings and focus on user engagement, along with our steadfast dedication to financial prudence, we are confident in our ability to thrive. We are excited about the huge opportunities ahead and look forward to delivering value to our shareholders in the long run.

This can help people developing self-

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skills

which they can apply to other areas of their lab.

As we continue to serve this growing market, we are confident that we can create value for both our learners and the shareholders. This will position us for continuous success in this market.

As we continue to serve this growing market, we are confident that we can create value for both our learners and the shareholders. This will position us for continued success in this market. To summarize,

We have sustained our revenue growth.

while efficiently controlling costs to boost our path to profitability and improve our cash flow.

our

continuous efforts in optimizing our cost structure.

have begun to bear fruit.

to bear fruit. This is evidence.

For our two contact contact fuel tube quarters

of positive adjusted net income with our innovative cost offerings and focus on user engagement.

along with our dead fat.

dedication to financial prudence.

We are confident in our ability to strive.

We are excited about the huge opportunities ahead and look forward to delivering value to our shareholders in the long run.

Peng Li: With that, I will turn the call over to Tim to discuss the details of our financials. Thank you all.

With that, I will turn the call over to Tim to discuss the details of our financials. Thank you all. Thank you. Before I go into the details of our financial results, please note that all the amounts are in RMB terms. That the reporting period is the third quarter of fiscal year 2023.

Tim Xie: Thank you. Before I go into the details of our financial results, please note that all the amounts are in RMB terms, that the reporting period is Q3 of fiscal year 2023 that ended on 31 March 2023. In addition to GAAP measures, we will also be discussing non-GAAP measures to provide greater clarity on the trends in our actual operations. For Q3 of fiscal year 2023, we grew our total revenues by 16.8% year-over-year and 2.6% quarter-over-quarter to RMB 807.2 million, mainly driven by growth within our individual online learning services. Among our revenues from individual online learning services grew by 21.2% year-over-year to RMB 724.7 million or 89.8% of total revenues, mainly due to a continued demand for other personal interest courses.

revenues by 16.8% year-over-year and 2.6% quarter-over-quarter to 807.2 million, mainly driven by growth within our individual online learning services.

Among our revenues, revenues from individual online learning services

grew by 21.2% year-over-year to 724.7 million or 89.8% of total revenues, mainly due to a continued demand for other personal interest courses.

Tim Xie: Consistent with our strategy to diversify course offerings, our gross billings of individual online learning services increased by 30.8% year over year to RMB 803.6 million. Revenues from enterprise services increased by 19.6% year over year to RMB 81.1 million or 10% of total revenues, primarily driven by continued robust demand from enterprise customers for marketing and talent management services. Gross profit was RMB 706.2 million, representing a gross margin of 87.5% compared to 83.5% in the same period last year. Total operating expenses increased to RMB 729.3 million from RMB 575.1 million last year. To break this down, sales and marketing expenses were RMB 631.4 million, representing a change of 28.2% year over year, as they increased spending on marketing and promotional activities from other personal interest courses. As a percentage of total revenue, non-GAAP sales and marketing expenses, which excluded share-based compensation, increased to 76.7% from 70.1% a year ago.

Consistent with our strategy to diversify cost offerings, our growth billions of individual online learning services increased by 30.8% year-over-year to 803.6 million. revenues from enterprise services increased by 19.6% year-over-year to 803.6 million.

Gross profit was $706.2 million, representing a gross margin of $8,000,000.

7.5% compared to 83.5% in the same period last year.

Total operating expenses increased to 729.3 million from 575.1 million last year.

To break this down, sales and marketing expenses were $631.4 million, representing a change of 28.2% year over year.

as they increased spending on marketing and promotional activities from other personal interest courses. As a percentage of total revenue, non-gap sales and marketing expenses, which excluded share-based competition, increased to 76.7% from 2019 to 2019.

Tim Xie: Research and development expenses were RMB 49.6 million, representing a change of 4.9% year over year as a result of our strategy of investing in technology and data analytics. As a percentage of total revenue, non-GAAP R&D expenses, which excluded share-based compensation, decreased to 5.1% from 5.8% a year ago. General and administrative expenses were RMB 48.3 million, representing a change of 37.4% year over year. As we continue to operate efficiently as a percentage of total revenue, non-GAAP G&A expenses, which excluded share-based compensation, decreased to 4% from 4.1% a year ago. Net loss was RMB 22.7 million, excluding share-based compensation. Adjusted net income was RMB 21.7 million, representing an adjusted net margin of 2.7% during the quarter. Basic and diluted net loss per share were both RMB 0.19. Adjusted basic and diluted net income per share were RMB 0.14 and RMB 0.13, respectively, during the quarter.

70.1% a year ago. Research and development expenses were 49.6 million, representing a change of 4.9% year over year.

As a result of our strategy of investing in technology and data analytics,

As a percentage of total revenue, non-GAAP R&D expenses, which excluded share-based

Compensation decreased to 5.1% from 5.8% a year ago.

general and administrative expenses were 48.3 million, representing a change of 37.4% year-over-year.

As we continue to operate efficiently as a percentage of total revenue, non-GAAP G&E expenses, which excluded share-based compensation, decreased to 4% from 4.1% a year ago.

Net loss was 22.7 million, excluding share-based compensation. Adjusted net income was 21.7 million, representing an adjusted net margin of 2.7% during the quarter.

Basic and diluted net loss per share were both RMB 0.19, Adjustive basic and diluted net income per share were RMB 0.14 and RMB 0.13 respectively during the quarter.

Tim Xie: Turning to our balance sheet as on 31 March 2023. Our company held $850.4 million in cash and cash equivalents and short-term investments compared to $399.1 million as of 30 June 2022. Lastly, I wanted to provide some color for our outlook. For Q4 of fiscal year 2023 that ends on 30 June 2023, we expect revenues to be between $760 million and $790 million, representing a year-over-year increase of between 20.8% and 25.6%. These projections take into consideration the current market conditions prevailing in the industry. Our strategic focus on personalized online learning services and diversified course offerings drove robust results in Q3 of fiscal year 2023, even against the uncertain macro backdrop. Looking ahead, we will continue our near-term strategy of prudently optimizing our cost structure and expenses and operating more efficiently and effectively.

Turning to our balance sheet, as of March 31, 2023, our company held $860.4 million in cash and cash equivalents and short-term investments, compared to $399.1 million as of June 30, 2022. Lastly, I wanted to...

provided some color for our outlook. For the fourth quarter of fiscal year 2023, that ends on June 30, 2023. We expect revenues to be between 760 million and 790 million, representing a year-over-year increase of between 0.5 and 0.5 million.

20.8% and 25.6%.

These projections take into consideration the current market conditions prevailing in the industry.

Our strategic focus on personalized online learning services and diversified cost offerings draw robust results in the short corner of fiscal year 2023, even against the uncertain macro backdrop.

Looking ahead, we will continue our near-term strategy of prudently optimizing our cost structure and expenses and operating more efficiently and effectively.

Tim Xie: With our healthy balance sheet and diversified revenue channels, we are well positioned to navigate any challenges ahead and capitalize on growth opportunities while delivering further value to our customers and shareholders. That concludes my prepared remarks. Operator, let's open up the call for questions. Thank you.

With our healthy balance sheet and diversified revenue channels, we are well positioned to navigate any challenges ahead and capitalize on growth opportunities, while delivering further value to our customers and shareholders.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, we ask that you please pick up your handset before pressing the keys. To withdraw your question, please press star then two. When asking the question in Chinese, please translate your question to English for the convenience of everyone on the call. Our first question today comes from Liping Zhao with CICC. Please go ahead.

That concludes my prepared remarks. Operator, let's open up the call for questions. Thank you. Thank you. We will now begin the question and answer session.

To ask a question, you may press star then 1 on your touch tone phone. If you are using the speakerphone, we ask that you please pick up your handset before pressing the keys.

To withdraw your question, please press star then 2. When asking the question in Chinese, please translate your question to English for the convenience of everyone on the call.

Our first question today comes from Li Ping Zhao with CICC. Please go ahead.

Liping Zhao: 李总、谢总好。我这边有两个问题。首先第一个问题是，鉴于最近资本市场的整体走势还是比较弱的，那对公司的启牛的课程以及其他的一些边线业务的影响是怎么样的？然后怎么看我们四季度以及明年的增长的情况。然后第二个问题是想问一下，我们启牛和讲真这边的一个增长策略，包括我们可能会新推出的一些课程等等。然后我自己翻译一下。Thanks for taking my questions. I have two questions here. First, how should we expect the Q4 and next year's growth of QiNiu given the recent relatively soft capital markets?

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Thanks for taking my questions. I have two questions here. First, how should we expect the 4Q and next year's growth of qin yu?

Liping Zhao: Second, could you please elaborate change and JiangZhen's growth strategy such as new course pipeline, etc. Thank you.

given the recent relatively soft capital markets? And second, could you please elaborate Chen Shen, Zhang Zheng's growth strategy, such as new cost pipeline sector? Thank you. Yeah, thank you, Brenda, for your questions. I think I will answer this question because it's most related to the...

Tim Xie: Thank you Brenda for your questions. I think I will answer this question because it is most related to the financial side. I will answer in English. Okay. Thank you. For the first question in terms of the capital market performance, especially this year, for our financial literacy courses, I think we offer both the introductory and the premium courses currently. This allows us to cater to the needs of learners with diverse educational backgrounds and learning objectives. I think since our beginning of the launch of the courses, both the introductory and advanced courses, such kind of courses target novice learners who wish to acquire basic financial and investment knowledge, but they lack readily available access to easily understandable resources. Our course content extends beyond active markets and covers a wide range of subjects, many covering the basic knowledge and framework of the financial area. These subjects range, I think, such as basic knowledge in bonds, insurance, and investment products. Also at this stage, we don't see a correlation between the active market and our registered users growth, because most of our growing learners among the public, their aim is to better manage personal and family wealth by improving their financial literacy. Many of them even do not have a stock account to trade in the active market. In a sum, I think the conclusion is that there's no direct relationship between our learners' interests, or maybe their purchase behavior and the capital market. Actually, since the macro environment situation may impact someone's feeling of their desire to purchase some courses, and I think maybe since the macro environment may have some slightly impact on some of our purchaser or learners behavior. I think for the current stage, when we talking about our financial literacy courses, we will integrate all of our courses, including the financial and non-financial related courses. That will also answer your second question, because as we continue to expand our course offerings and diversify our revenue streams, we expect to see maybe some shifts in the proportions of our revenue makeup. Specifically, since our launching of JiangZhen and QianChi respectively in August 2021 and June 2022, we anticipate that revenue from the non-financial literacy personal interest courses will continue to contribute a greater portion of our overall revenue in the future. We have seen strong demand for these courses, and we are actively working to scale up our offerings in this area. As a whole, I think we will seize the opportunity to reserve as much as more pipelines of our course SKUs and to promote and launch the new SKUs when we think it is probable. I think in the future, as a whole, even there's some change in the macro situation, maybe for every aspect, we think as a whole of the revenue growth, they are very confident for the SKUs growth, both for the financial literacy and also the non-financial literacy. I think as a whole we will balance proportion and contribution of each of the courses, considering the return on investment of ROI and also the lifetime value of our learners.

financial science. So I'll be answering in English. Okay, so thank you for the first question in terms of the capital market performance, especially this year. For our financial literacy courses, we offer...

I think we offer both introductory and premium courses currently. This allows us to cater to the needs of learners with diverse educational backgrounds and learning objectives.

And I think since our beginning of the launch of the courses, our both introductory and advanced courses,

Such kind of courses target novice learners who wish to acquire basic financial and investment knowledge, but lack readily available access to easily understandable resources.

Our course content extends beyond active markets and covers a wide range of subjects, and many covering the basic knowledge and framework of the financial area. So these subjects range, I think, such as basic knowledge in bonds, insurance, and investment.

Most of our growing learners among the public, their aim is to better manage personal and family wealth by improving their financial literacy.

Many of them even do not have a stock account to trade in the active market.

But I think, so in a sum, I think the conclusion is that there's no direct relationship between our learners' interests or maybe their purchase behavior under the capital market. But actually, since the...

macro environment situation may impact someone's feeling of their desire to purchase some courses. And I think maybe since the macro environment is creating some kind of family memberYes,

we have some slightly impact on some of our purchaser or learner's behavior. So,

on some of our researchers or learners' behavior. So,

I think for the current stage, when we're talking about our financial literacy courses, we will integrate all of our courses, including the financial and non-financial related courses.

So that will also answer your second question because as we continue to expand our cost offerings and diversify our revenue streams, we expect to see maybe some shift in the proportions of our revenue makeup.

Specifically, since our launching of Jiang Zhan and Chen Shi, respectively, in August 2021 and June 2022, we anticipate that revenue from the non-financial literacy...

personal interest courses, we continue to contribute a greater portion of our overall revenue in the future. We have seen strong demand for these courses and we are actively working to scale up our offerings in this area. So as a whole, I think.

we will see the opportunity to reserve as much as more pipelines over cost SKUs and to promote and launch the new SKUs when we think it is probable. I think in the future as a whole, even there is some change in the macro situation.

I think as a whole we will balance the proportion and contribution of each of the courses considering the return on investment of ROI and also the lifetime value of our learners.

Tim Xie: Yes. Hope that answers your question.

Liping Zhao: Got it. Very clear. Thanks.

Tim Xie: Thank you.

Yes, hope that answers your question. Got it. Very clear. Thanks.

Operator: Thank you. Our next question today comes from Danny Zheng with CLSA. Please go ahead.

with your question. Got it. Very clear. Thanks. Thank you.

Thank you and our next question today comes from Danny Jim with CLSA. Please go ahead.

Danny Zheng: Hi. Thank you management for taking my questions. This is Danny Zheng from CLSA. I have two questions today for the company. The first one is, how has your progress on deepening and filling your personal interest courses segment? My second question is, what sort of progress are you making so far in the enterprise services? That's it. Thank you.

Thank you, management, for taking my questions. This is Danny Jeng from TOSA.

I have two questions for you. The first one is how do you progress on

depending on your personal interest courses. And my second question is, what sort of progress are you making so far in the enterprise services?

your personal interest courses segment. And my second question is, what sort of progress are you making so far in the enterprise services? So that's it. Thank you.

Tim Xie: Yeah, thank you. I will answer the question. Thank you for your question. As for the answer, I think we aim to increase the repeat purchase rate for our other personal interest courses by providing exceptional service and meeting the evolving needs of our learners. Because the formal launch of the repeat purchase promotion or operation of our, for example, JiangZhen brand, it just started from late last year. Building on the principle of self-driven, we have implemented several strategies to enhance our repeat purchase rate. I think first, we have been actively customizing courses based on learners' specific needs and preferences by getting feedback through continuous engagement and understanding what our learners want. Based on our understanding of the learners' behavior, we aim to deliver content that resonates with them. This increases their motivation to repurchase.

Thank you. I will answer the question. Thank you for your question. As for the answer, I think we aim to increase the...

increase the repeat purchase rate for our other personal interest courses by providing exceptional service and meeting the evolving needs of our learners. Because the formal launch of the repeat purchase promotion or operation of our, for example, the Jiangzheng brand is just started from...

late last year. So building on the principle of self-driven, we have implemented several strategies to enhance our repeat purchase rate. I think first, we have been actively customizing courses based on learners' specific needs and preferences.

By getting feedback through continuous engagement and understanding what our learners want and based on our understanding of the learners behavior, we aim to deliver content that resonates with them. This increases their motivation to repurchase. And secondly, we place great emphasize on...

Tim Xie: Secondly, we place great emphasis on serving our learners beyond course delivery. We design our courses to provide relevant skills and abilities that learners need, complemented by supplementary resources and value-added services. By offering ongoing support and opportunities for further skill development, we aim to enhance the overall learning experience and encourage learners to continue their journey with us. As a successful example of the repeat purchase for our financial literacy courses, we are very confident that by leveraging such kind of experience and operational efficiency, we can also enhance our repeat purchase operation with the learners for our other interest-based courses. Looking ahead, we expect these efforts to yield positive results in terms of the increased repeat purchase rates. While we do not have specific projections, maybe it is not probable to forecast a very accurate number to share at this time.

serving our learners beyond course delivery. We design our courses to provide relevant skills and abilities that learners need, complemented by supplementary resources and value-added services. By offering ongoing support and opportunities for further skill development, we aim to enhance the overall learning experience and encourage students to learn more about

can also enhance our repeat purchase operation with the learners for our other interest-based courses. Looking ahead, we expect these efforts to yield positive results in terms of the increased repeat purchase rates that we...

do not have specific projections, maybe it is not probable to forecast a very accurate number to share at this time. We remain optimistic about the potential for growth in this area according to our track record.

Tim Xie: We remain optimistic about the potential for growth in this area, according to our track record. With our focus on continuous improvement and personalized learning experience, we are well-positioned to attract and retain a loyal customer base. I think this will help foster stronger customer relationship and drive repeat purchase in future. Thank you.

With our focus on continuous improvement and personalized learning experience, we are well positioned to attract and retain a loyal customer base.

So I think this will help filter stronger customer relationships and drive repeat purchases in future.

Danny Zheng: Okay. That's very helpful. Thank you.

Tim Xie: Yeah.

Thank you. Thank you. That's very helpful. Thank you. So.

Leah Guo: Our CEO will take the second question concerning the enterprise services.

Peng Li: Okay. I will speak Chinese, and Leah will translate for me.

LSEO will take the second question concerning the enterprise services.

Okay Chinese and leer, we will translate for me. uh, herear for the sumhere woman, a harsher kada you may. Woman hheres, I Grand U, just that she N T be a holiday history show picture sheiconlah.

Leah Guo: We are making good progress in our enterprise services, as we focus on meeting the evolving needs of the businesses. We offer many enterprise-oriented services similar to the TTT camp that I have just talked about earlier. One example is our flagship Gold Interviewer training camp. This is a comprehensive program designed to equip interviewers with the essential skills needed for making effective hiring decisions. We have very experienced trainers. This camp covers strategy, question formulation, candidate evaluation, and many other relevant topics. This has been well received by our clients, empowering them to build strong interviewing teams and make confident hiring choices.

We are making great progress in our enterprise services as we focus on meeting the evolving needs of the businesses.

We offer many enterprise oriented services similar to the TTT camp that I have just talked about earlier. We also provide as you came earlier support for the TTT small business commission.

Thank you for your attention.

One example is our flagship gold interviewer training camp. This is a comprehensive program designed to equip interviewers with the essential skills needed for making effective hiring decisions.

theetheus and telecom

We have very experienced the trainers. This can cover strategy, question formulation, candidate evaluation, and many other relevant topics.

This has been well received by our clients, empowering them to build strong interviewing teams and to make confident hiring choices.

Peng Li: 所以以TTT训练营和金牌面试官这个项目为例，表示出来我们对满足不同的商业客户的这个需求，我们还是兑现了自己的承诺。

Very ch? T you her timpania square. Take some uh the offshoir? ual life woman, three mans open. Own some here uh cooddtical three show number. More of a hospirationity, the to not.

Leah Guo: Our progress in enterprise services exemplified by the TTT camp and the Gold Interviewer training camp demonstrates our commitment to catering to the diverse business needs.

Our progress in enterprise services exemplified by the TTT camp and the Gold Interviewer training camp demonstrates our commitment to catering to the diverse business needs.

Peng Li: 同时我们自始至终都非常关注质量和客户需求的相关性。所以我们在不断地一边创新，一边扩大我们的企业服务的产品。

Policy of Blackboard While we wait, please mark yourdoor and wait.

So you know, we are very excited to be able to connect with you and to meet you. At the same time, we maintain a strong focus on quality and relevance. We are constantly innovating and expanding.

Leah Guo: At the same time, we maintain a strong focus on quality and relevance. We are constantly innovating and expanding.

Peng Li: 我们也见证了在这个过程中客户的成长跟成功，所以我们对这个To B的企业服务方面，对未来的发展还是感到非常的有信心。

I woman me at you Don, that you were on. Do who the tunda I'm going to tun. They want to take a topy that she had found me the cheer full fam. And they realize to get a father has her kanddown feit, was she she?

Leah Guo: We have witnessed the customer's growth and customer success. We are excited about the opportunities ahead as we drive growth and success for our clients.

We have businesses, the customers' growth and customer success. We are very excited about the opportunities ahead as we drive growth and success for our clients.

Tim Xie: Okay. Thank you for your question.

Operator: Thank you. As a reminder, if you'd like to ask a question, please press star then one. Our next question today comes from Michelle Fong with Citi. Please go ahead.

Okay, time for your question. Thank you. As a reminder, if you'd like to ask a question, please press star then one. Our next question today comes from Michelle Phong with Citi. Please go ahead. Thank you for asking my question.

Michelle Fong: Thank you for taking my questions. I only have two small questions. First is that you just mentioned that the macro environment has some impacts on the purchase behavior. Could you please expand a bit more on this? Do you see any changes in downstream demand with different current unfavorable economy environment? Secondly, what's our outlook for next three years on revenue margin and earnings? Thank you.

And secondly, what's our outlook for next three years on the Latino margin and AIMS? Thank you.

Tim Xie: Yeah. Hi, Michelle. Let me clarify your question. Your first question is to ask the macro impact on the purchase behavior of our learners?

Hi Michelle. Let me clarify your question. Your first question is to ask the macro impact on the purchase behavior of our learners.

Michelle Fong: Yeah. Do we see any changes in the downstream demand?

Do you see any changes in the downstream demand?

Tim Xie: Yeah. Okay. The second one?

Yeah, do we see any changes in the downstream demand? Yeah, okay, so the second one.

Michelle Fong: What's our outlook for next three years revenue, margin, and earnings?

What's our outlook for next three years, vaccine and vaccine use? Yeah, okay, I understand. Thank you. Thank you for your questions. I think for the first time, you know, in maybe everyone, I think.

Tim Xie: Yeah. Okay. Understood. Thank you. Thank you for your questions. I think for the first one, everyone has a very easy way to access the internet, the news, and the media. I think, because most our learners are mass market Chinese people. Maybe some of them may have their own opinion and channel to access some macroeconomic, capital market, and even our company information. I think some of them may have their own attitude and their own opinion in terms of their own desire to acquire knowledge. For example, if you have no knowledge in terms of the capital market, if you have no outside information, you may have the desire to learn something to advance your skills.

has a very easy way to access the internet, the news, the media. So I think because most of our learners are mass public tiny people, so maybe some of them may have their own opinion and channel to access some macroeconomic and capital market.

and even our company information. So I think some of them may have their own attitude and their own opinion in terms of their own desire to acquire knowledge and maybe...

For example, if you have no knowledge in terms of the capital market, if you have no outside information, you may have the desire to learn something to advance your skills.

Tim Xie: I think if some people have some negative or maybe pessimistic attitude, I think this may impact a little about their purchase behavior. I think in terms of our actual financial performance, I think there's no significant adverse impact on our financial performance because I think this kind of challenge or the macro environment challenge may also induce the people's desire to upgrade their self and to enrich their self. The desire, I think, will be strengthened. That will also support our user growth or our popularity of our courses for our learners to learn, to purchase. I think overall speaking, I think in the future, especially in the aging population era for China, the learning and the improvement of their own skills, of the people's personal enrichment, I think this is maybe a must for everybody to do.

But I think if someone, if some people have some negative or maybe a pessimistic attitude, I think this may impact a little about their purchase behavior. So, um,

But I think if someone, if some people have some negative or maybe a pessimistic attitude, I think this may impact a little about their purchase behavior. So I think, but in...

But I think in terms of our actual financial performance, I think there's no

significant adverse impact on our financial performance because I think this kind of challenge or the macro environment challenge may also induce the people's desire to upgrade and to have a greater impact on our financial performance.

upgrade their self and to enrich their self. But easier, I think we will be strengthened. So that will also support our user growth or our popularity of our courses for our learners to learn, to purchase.

I think overall, or orally speaking, I think in the future, especially in the aging population era for China, the learning and the improvement of their own skills of the people's...

Tim Xie: As a learning platform for the life of learning for our learners, I think with our launch of the new courses and the current courses, I think that will build a solid base for our users purchase and engagement with our platform. Currently, we also anticipate a very optimistic revenue growth in terms of even the short-term fluctuation or short-term negative attitude in terms of after COVID macroeconomic recovery. I think that may answer your questions.

personal enrichment, I think this is maybe a must for everybody to do. So as a learning platform for the life of learning for our learners, I think with our launch of the new courses and the current courses, I think that will be a must for everybody to do.

build a solid base for our users purchase and engagement with our platform. Currently we also anticipate a very optimistic revenue growth.

in terms of even the short-term fluctuation or short-term negative attitude in terms of some after COVID macroeconomic recovery. So I think...

Leah Guo: Thank you so much.

Let me answer your questions.

Tim Xie: Yeah.

Operator: Thank you. Ladies and gentlemen, this concludes our question and answer session. I'd like to turn the conference back over to management for any closing remarks.

Thank you. And ladies and gentlemen, this concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Thank you again for joining our call today. If you have any further questions, please feel free to contact us or submit a request through our IR web chat. We look forward to speaking with everyone in our next call. Have a good day. Thank you. Thank you very much. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

Leah Guo: Thank you again for joining our call today. If you have any further questions, please feel free to contact us or submit a request through our IR website. We look forward to speaking with everyone in our next call. Have a good day.

Operator: Thank you. Ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day. Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to QuantaSing's Earnings Conference Call. At this time, all participants are in a listen-only mode. We will be hosting a question and answer session after management's prepared remarks. Please note that today's event is being recorded. I will now turn the conference over to Miss Leah Guo, Associate Director of Investor Relations of the company. Please go ahead, ma'am.

Thank you. Ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Think PR.

Good morning and good evening ladies and gentlemen. Thank you for standing by. And welcome to Quantisings Earnings Conference Call.

At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks.

Please note that today's event is being recorded. I will now turn the conference over to Ms. Leah Guo, Investor Relations Associate Director of the company. Please go ahead, ma'am.

Thank you. Hello everyone and welcome to Qantasim's earnings call for the third quarter of fiscal year 2023. With us today are Mr. Peng Li, our founder, chairman and CEO and Mr. Tim Tse, our CFO . Mr. Li will give a general business overview for the quarter and the team will discuss the financials in more details.

Leah Guo: As we will be making forward-looking statements, please note that all numbers stated in the following management prepared remarks are in RMB terms. We will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filings with the SEC. I will now turn the call over to the CEO and Founder of QuantaSing, Mr. Li.

which also applies to this call, as we will be making forward-looking statements. Please note that all numbers stated in the following management prepared remarks are in RIB terms, and we will discuss non-GAAS measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our annuals release and filings with the SBCC.

Peng Li: Okay. Thank you, everyone, for attending this meeting. I'm Peng Li, the Founder and CEO of the company. Our commitment to our mission of improving people's quality of life through interest-based learning led to positive results in Q3 2023. With strong pipeline visibility, diversified revenue streams, and an expansive addressable market, we were able to maintain our revenue growth and profitability path. During the quarter, we recorded 16.8% year-over-year revenue growth and an adjusted net income of RMB 21.7 million. This marks our second profitable quarter in a row. Our strong pipeline visibility is shown by our registered user growth. As of 31 March 2023, we had around 86.3 million registered users. This is a 76.5% increase from the previous year. This number of paying learners grew by 45.4% year-over-year to approximately 0.4 million.

I will now turn the call over to the CEO and founder of Quantysink, Mr. Li. Okay, thank you everyone for attending this meeting. I'm Peng Li, the founder and CEO of the company. Our commitment to our mission of improving people's quality of life through interest-based learning Let's talk to you.

results in the third fiscal quarter of 2023. With strong pipeline visibility, diversified revenue stream and an expensive addressable market, we were able to maintain our revenue growth under

profitability path. During the quarter, we recorded

16.8% year-over-year revenue growth and an adjusted net income of 21.7 million RMB. This marks our second profitable quarter in a row.

Our strong pipeline visibility is shown by our registered user growth. As of March 2018, the users are now in the community of nearly friendly connectivity users and vendors who deploy edge products like

31, 2023. We had around 86.3 million registered users. This is 76.5 million registered users.

percent increase from the previous year. This number of paying learners grew by 45.4% year-over-year to approximately 0.4 million. Our focus on agile scalable business models

Peng Li: Our focus on agile, scalable business models have allowed us to rapidly expand our course offerings and attract a large and growing user base. Since August 2021, we have ventured into offering learning courses tailored to personal interests, a strategic move that has garnered constant repeat purchase. We are especially delighted by the results of this quarter. Our diverse and engaging courses have generated an impressive 11% repeat purchase rate. This figure has been steadily growing since the launch of our personal interest brands. We have developed various ways to ensure customer loyalty and encourage repeat purchase. We do this by providing a high quality and engaging experience for our learners. Our dual instructor model of live streaming and community building combines practical exercises, one-on-one coaching, pre-recorded lectures, and supplemental Q&A live courses.

have allowed us to rapidly expand our cost offerings and attract a large and growing user base.

Since August 2021, we have ventured into offering learning courses tailored to personal interests. Series 6,

has garnered constant rapid repeat purchase. We have especially delighted by the results of this quarter and our diverse and engaging courses how generated an impressive 11% increase in production.

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This figure has been steadily growing since the launch of our personal interest branch.

We have developed various ways to ensure customer loyalty and encourage repeat purchase. We do this by providing a high quality and engaging experience for our learners. Our dual instructor model is a

of live streaming and community building combined.

practical exercises.

electrical exercises, one-on-one coaching.

pre-recorded lectures, and supplemental Q&A live courses. These features enhance the joy and effectiveness of learning Bye.

fostering interaction and communication between its structures and learners.

We follow the principle of service-driven experience, excellence to...

ensure that learners receive the best possible value from our courses. Our courses are customized to our learners' specific needs, with a focus on developing their skills and abilities.

We also provide other courses that offer professional value-added services. This allows our learners to apply what they have learned in practical settings.

Our user-centered copies and the service provision

our user centered copies and the service provision are subject to a

a stringent review process. This process involves careful selection of our tutors and instructors.

stringent review process. This process involves careful selection of our tutors and instructors, training and service standards.

Our repeat purchase rate provides us with excellent visibility into our sales pipeline. As such, we are able to focus the revenue and manage our budgets with greater accuracy. Our commitment to

diversified revenue streams has been a gradual factor in our growth trajectory.

Peng Li: By offering a wide range of services to both individuals and enterprises, we have been able to meet the needs of learners from diverse backgrounds and tap into various markets and revenue streams. We remain dedicated to addressing the dynamic demands of the business landscape, and we have been developing our enterprise-oriented services accordingly. This is exemplified by our trainer training camp, or TTT camp, led by experienced internal training specialists. This comprehensive course empowers novice trainers with essential skills across a wide range of modules. Covered topics include course development, activity design, presentation skills, and mastery of training knowledge. Participants gain hands-on experience in creating materials, designing activities, delivering impactful presentations, building expertise, and enhancing the overall training experience. In adding to our TTT camp, our expanding suite of enterprise-oriented services is equipping businesses with the necessary tools and training to optimize talent management and development.

by offering a wide range of services to both individuals and enterprises.

We have been able to meet the needs of learners from diverse backgrounds and tap into various markets and revenue streams.

We remain dedicated to addressing the dynamic demands of the business landscape.

And we have been developing our enterprise-oriented services accordingly. This is exemplified by our Trainer Training Cat, or TTT Cat.

led by experienced internal training specialists. This comprehensive course empowers the LINAU L Narration just to apoke.

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trainers with essential skills across a wide range of modules. Colored topics include course...

development, activity design, presentation skills, and

mastery of training knowledge. Participants gain hands-on experience in creating materials, designing activities.

delivering impactful presentations, building expert tests, and enhancing the overall training experience in adding to our TDT camp.

Our expanding field of enterprise-oriented services is equipping businesses with the necessary tools and training to optimize talent management and development.

Peng Li: By extending our service offerings to enterprises, we position ourselves as a two-sided service provider. Our solution addresses the needs of both individuals and enterprises. This strategy reaffirms our commitment to delivering unmatched value and fostering enduring success with the corporate sector. Moreover, our targeted approach to course offerings provides exceptional value to our learners while maximizing our revenues. During the Q3 fiscal quarter, revenue from other personal interest courses grew to RMB 238 million, contributing 29.5% of our total revenues. We continuously introduce high quality, pure, and accessible content that resonates with our users. Our courses help people expand their horizons, enrich their lives, and achieve self-fulfillment. Through strategic course development, we address in-demand topics and capitalize on higher profit margins, expanding our reach and seizing new opportunities for revenue growth. These efforts reflect our unwavering commitment to empowering learners and help them thrive in our changing world.

By sending our service offerings to enterprises, we position ourselves as a two-sided service provider.

our service offerings to enterprises. We position ourselves as a two-sided service provider. We aim to provide as high-quality titles as possible for U.S. and jump to PLAYBruce,

the needs of both individuals and enterprises. This tragedy reaffirms our commitment to delivering unmatched value and fostering enduring success with the corporate sector.

needs of both individuals and enterprises. This tragedy reaffirms our commitment to delivering unmatched value and fostering enduring success with the corporate sector. Moreover,

Our targeted approach to cost offerings provides exceptional value to our learners while maximizing our revenues. During the third fiscal quarter, our

Revenue from other personal interest courses grow to 238 million RMB, contributing 29.5% of our total revenues. We continuously introduce high quality.

purely and accessible content that resonates with our users. Our courses help people expand their horizons, enrich their lives, and achieve self-fulfillment.

pure link and accessible content that reason is with our users. Our causes help people expand their origins, enrich their lives and achieve self-fulfillment. Through strategic cause

development we address in demand topics and optimize property lies on higher profit margin

Depending on our reach and the seeding new opportunities for revenue growth, these efforts reflect our on-weaving commitments to empowering learners and help them strive in our changing world. Take the example of a retirement in Harbin.

who found joy in learning calligraphy through our platform. It finally has the time and the opportunity to pursue its passion.

Calligraphy not only brought him happiness and satisfaction, but also improve his hand-eye coordination.

We are proud that our interest-based learning causes give him the opportunity to reach his goals and better his life.

Another example is a 54-year-old homemaker, who discovered our memory training course and improved her memory through regular practice. Our instructors...

unique and engaging lecture style combined with regular reviews, made the learning experience enjoyable and...

In from Métil, the homemaker impressed her gratitude for the useful cost, which has improved her self-confidence. She also praised the online learning.

The homemaker impressed her gratitude for the useful cost, which has improved her self-confidence. She also praised the online learning atmosphere.

Peng Li: Finally, we have the empowering story of a man who leads a fulfilled life, owning a Taobao bookstore and a beauty store. Recently, he decided to try making short videos. To learn about video editing, he turned to our JiangZhen platform and quickly acquired the skills needed for his new interest. He created videos inspired by the characters from the TV series, "Dream of the Red Chamber." The content is original and innovative, and reflects his personality and interests, which helped him to expand his follower base, and he's now able to share his creations with a wider audience. We are proud that our accessible and diversified learning resources can empower individuals to pursue their passions and achieve their dreams. At QuantaSing, we are committed to create a vibrant community that fosters collaboration and interaction among our learners. Our courses offer top-quality content and encourage engagement and participation.

which helped make the experience positive and impacting. Finally, without the empowering story of a man who lives a social life, holding a tall ball bookstore and a beauty store, recently he decided to try making short videos.

For learning about video editing, he turned to our Jiang Zhen platform and quickly acquired this skills needed for his new interest.

I then created a video inspired by the capture from the TV series, the most red chamber.

The content is original and innovative, and reflects its personality and the interest, which helps him to expand his followers' faith and is now able to share his creations with a wider audience. So

our accessible and diversified learning resulted trying power individuals to pursue their passions and achieve their dreams. As a coffee thing, we are committed to create a

successful and diversified learning resulted kind of power individuals to pursue their passions and achieve their dreams. At CAUFICING, we are committed to create a web-run

community that thought you call of progression and

Interaction, among our learners, our colleagues offer top quality content and encouraged.

Among our learners, our causes offer top quality content and encourage engagement and

Peng Li: As well as our online offerings, we host a range of offline activities such as workshops, meetups, and networking events. One such event that we recently hosted was the Memory Challenge on 25 March. The event was followed by thousands of people, and around 1,000 registered to take part. From these applications, 30 people were selected to participate in this offline final. The finalists had the opportunity to engage with an international master of memory, our memory instructors, and the memory experts. It was an exciting and engaging event that showcased our commitment to building a strong community and promoting lifelong learning. In February 2023, we launched a sales training program for paying users of our advanced short video courses. The program is the industry's first-of-its-kind closed-loop learning model based on the knowledge-practice-application circle.

participatory. As we all as our online offerings, we host a range of offline activities such as workshop, meetup, and networking events.

one such event that we recently hope it was the memory challenge on March.

One such event that we recently hope it was the memory challenge on March 20th.

Fifth, the event was following, it was followed by thousands of people and around one thousand registered to take a path. From these applications.

30 people were selected to participate in this offline finals. The finalists...

has the opportunity to engage with an international master of memory. Our memory instructors and memory experts.

It was exciting and engaging events that showcased our commitment to building a strong community and promoting lifelong learning. In February 2023, we launched a sales training program.

for paying users of our advanced short video content. The program is the industry's first of its kind.

close the loop, learning model based on the knowledge practice application TACO.

Peng Li: It provides learners with product selection assistance and further facilitates the practical application of knowledge by our learners. In an aging society like China, there is a significant market demand for the senior citizen learning. According to the WHO, the percentage of people in China aged 60 or above is expected to rise from 18.7% in 2020 to 28% in 2040. This will create a huge opportunity for us to help seniors embrace lifelong learning. Our QianChi and JiangZhen platforms provide user-friendly interest-based learning resources that benefit senior learners. Our courses provide opportunities for learners to build self-confidence and self-esteem through social connection. As a result, our senior learners can develop a greater sense of belonging and fulfillment. In addition, our diversified course content allow users to access learning materials in different fields and expand their horizons.

It provides learners with touch selection assistance.

with that selection assistance. And further,

that facilitate the practical application of knowledge by our learners. In an aging society like China,

firstly, pays the practical application of knowledge by our learners. In the 18 society like China, there is a...

Dignificent market demands for the senior citizen learning. According to the WHO, the percentage of people in China age 60 or above is expected to rise from

18.0% in 2020 to 28% in 2014. This will create a huge opportunity for us to help seniors.

and embrace lifelong learning. Our channel, Jiang Zhen Platform provides.

user-friendly interest-based learning resulted that benefits senior learners. Our colleagues provide opportunities for learners to build self-confidence and self-esteem through social connection as a result.

Our senior learners can develop a great sense of belonging and fulfillment in addition. Our diversified cause contains

Senior learners can develop a greater sense of belonging and fulfillment in addition. Our diversified cause contains a lot of users to access.

Peng Li: This can help people developing self-sufficiency skills, which they can then apply to other areas of their lives. As we continue to serve this growing market, we are confident that we can create value for both our learners and shareholders. This will position us for continued success in this market. To summarize, we have sustained our revenue growth while efficiently controlling costs to boost our path to profitability and improve our cash flow. Our continuous efforts in optimizing our cost structure have begun to bear fruit. This is evident for our two consecutive quarters of positive adjusted net income. With our innovative course offerings and focus on user engagement, along with our steadfast dedication to financial prudence, we are confident in our ability to strike. We are excited about the huge opportunities ahead and look forward to delivering value to our shareholders in the long run.

learning materials in different fields and expand their horizons. This can help people developing self-sufficiency skills, which they can apply to other areas of their life. As we continue to serve this

We are confident that we can create value for both our learners and shareholders. This will position us for continued success in this market.

to summarize, we have sustained our revenue growth while efficiently controlling costs to boost our path to profitability and improve our cash flow.

We have sustained our revenue growth while efficiently controlling costs to boost our path to profitability and improve our cash flow. Our...

Continuous efforts in optimizing our cost structure.

have began to bear fruit. This is evidence for our two.

began to bear fruit. This is evident for our two constructs.

consecutive quarters of positive and adjusted net income with our innovative cost offerings and focus on using engagement.

along with our steadfast dedication to financial growth.

Peng Li: With that, I will turn the call over to Tim to discuss the details of our financials. Thank you all.

and look for a lot to delivering value to our shareholders in the long run.

With that, I will turn the call over to Tim to pass the details of our financials. Thank you all. Thank you. Before I go into details of our financial results, please know that all the amounts are in our returns. That reporting period is a third quarter of fiscal year, 2023, that ended on March 31, 2023.

Tim Xie: Thank you. Before I go into the details of our financial results, please note that all the amounts are in RMB terms, that the reporting period is Q3 of fiscal year 2023 that ended on 31 March 2023. That in addition to GAAP measures, we'll also be discussing non-GAAP measures to provide greater clarity on the trends in our actual operations. For Q3 of fiscal year 2023, we grew our total revenues by 16.8% year-over-year and 2.6% quarter-over-quarter to RMB 807.2 million, mainly driven by growth within our individual online learning services. Among our revenues from individual online learning services grew by 21.2% year-over-year to RMB 724.7 million, or 89.8% of total revenues, mainly due to a continued demand for other personal interest courses.

And that in addition to gap matters, we'll also be discussing non-gab matters to provide greater clarity on the trends in our actual operations. For the third quarter of fiscal year 2023, it grew our total revenues by 16.8% year-over-year and a 2.6% quarter-over-quarter.

to 800 and 7.2 million. Many driven by growth within our individual online learning services. Among our revenues, revenues from individual online learning services grew by 21.2% year over year. To 724.7 million or 89.8% of total revenues.

Tim Xie: Consistent with our strategy to diversify course offerings, our gross billings of individual online learning services increased by 30.8% year over year to RMB 803.6 million. Revenues from enterprise services increased by 19.6% year over year to RMB 81.1 million, or 10% of total revenues, primarily driven by continued robust demand from enterprise customers for marketing and talent management services. Gross profit was RMB 706.2 million, representing a gross margin of 87.5%, compared to 83.5% in the same period last year. Total operating expenses increased to RMB 729.3 million from RMB 575.1 million last year. To break this down, sales and marketing expenses were RMB 631.4 million, representing a change of 28.2% year over year, as they increased spending on marketing and promotional activities from other personal interest courses.

Many due to a continued demand for other personal interest courses. Consistent with our strategy to diversify cost offerings, our growth feelings of individual learning services increased by 30.8% year-over-year to 803.6 million.

Renews from enterprise services increased by 99.6% year-over-year to 81.1 million, or 10% of total revenues. Primarily driven by continued robust demand from enterprise customers for marketing and talent management services.

Growth growth rate was 700 and 6.2 million, representing a growth margin of 87.5%, compared to 83.5% in the same period last year. Total operating expenses increased to

729.3 million from 575.1 million last year. To break this down, sales and market expenses were 600 and so 1.4 million, representing a change of 28.2% year-over-year.

Tim Xie: As a percentage of total revenue, non-GAAP sales and marketing expenses, which excluded share-based compensation, increased to 76.7% from 70.1% a year ago. Research and development expenses were RMB 49.6 million, representing a change of 4.9% year over year. As a result of our strategy of investing in technology and data analytics, as a percentage of total revenue, non-GAAP R&D expenses, which excluded share-based compensation, decreased to 5.1% from 5.8% a year ago. General and administrative expenses were RMB 48.3 million, representing a change of 37.4% year over year. As we continue to operate efficiently, as a percentage of total revenue, non-GAAP G&A expenses, which excluded share-based compensation, decreased to 4% from 4.1% a year ago. Net loss was RMB 22.7 million, excluding share-based compensation. Adjusted net income was RMB 21.7 million, representing an adjusted net margin of 2.7% during the quarter. Basic and diluted net loss per share were both RMB 0.19.

As they increased spending on marketing and promotional activities from other personal interest courses, as a percentage of total revenue, non-cap sales and marketing expenses, which excluded share-based compensation increased to 76.7% from 70.1% a year ago.

Research and development expenses of 49.6 million representing a change of 4.9% year over year.

as a result of our scratchy of investing in technology and data analytics as a percentage of total revenue, non-GAP R&D expenses, which included share-based

Composition decreased to 5.1% from 5.8% a year ago. General and under-minus-trative expenses were 48.3 million, representing a change of 37.4% a year over year, as we continue to operate efficiently as a percentage of total revenue. Now gap.

GNA expenses, which excluded share-based compensation, decreased to 4% from 4.1% a year ago.

Net loss was 22.7 million, excluding share-based compensation, but just its net income was 21.7 million, representing a just rate net margin of 2.7% during the quarter.

Tim Xie: Adjusted basic and diluted net income per share were RMB 0.14 and RMB 0.13 respectively during the quarter. Turning to our balance sheet as of 31 March 2023, our company held RMB 850.4 million in cash and cash equivalents and short-term investments compared to RMB 399.1 million as of 30 June 2022. Lastly, I wanted to provide some color for our outlook. For the Q4 of fiscal year 2023, that ends on 30 June 2023, we expect revenues to be between RMB 760 and 790 million, representing a year-over-year increase of between 20.8% and 25.6%. These projections take into consideration the current market conditions prevailing in the industry. Our strategic focus on personalized online learning services and diversified course offerings drove robust results in the Q3 of fiscal year 2023, even against the uncertain macro backdrop.

Basic and diluted net laws for share were both R&B 0.19, but that's it, basic and diluted net income for share. Well, R&B 0.14 and R&B 0.13 is back to the original quarter. Turning to our balance sheet, as on March 31, 2023.

Our company held 830.4 million in cash and cash equivalents and showed her investments compared to 399.1 million as of June 30, 2022. Lastly, I wanted to provide some color for our outlook.

For the fourth quarter of fiscal year 2023, that ends on June 30, 2023. Big-spact revenues to be between 760 million and 790 million. Representing a year-over-year increase of between

20.8% and 25.6%. This projection taken to consideration, the current market conditions prevailing in the industry. Our strategy focused on personalized online learning services and diversified cost offerings through robust results in the sole corner of fifth career 2023. Even against the uncertain macro background.

Tim Xie: Looking ahead, we will continue our near-term strategy of prudently optimizing our cost structure and expenses and operating more efficiently and effectively. With our healthy balance sheet and diversified revenue channels, we are well positioned to navigate any challenges ahead and capitalize on growth opportunities while delivering further value to our customers and shareholders. That concludes my prepared remarks. Operator, let's open up the call for questions. Thank you.

Looking ahead, we will continue our near-term strategy of prudently optimizing our cost structure and expenses and operating more efficiently and effectively.

With our health advantage and diversified revenue channels, they are very positioned to navigate any challenges ahead and capitalize on growth opportunities, while delivering further value to our customers and shareholders. That concludes my prepared remarks. Operator, let's open up the call for questions. Thank you.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, we ask that you please pick up your your handset before pressing the keys. To withdraw your question, please press star then two. When asking the question in Chinese, please translate your question to English for the convenience of everyone on the call. Our first question today comes from Liping Zhao with CICC. Please go ahead.

Thank you. We will now begin the question and answer session. To ask a question, you may press star them on your touch tone phone. If you're using the speaker phone, we ask you please pick up your handset before pressing the keys. To a draw your question, please press star them to.

When asking the question in Chinese, please translate your question to English for the convenience of everyone on the call. Our first question today comes from Li Ping Zhao with CICC. Please go ahead. We will now call back to the recording room for the Q&A honoured Picture.

I have two questions here. First, how should we expect the 4Q and next year's growth of QNL?

Liping Zhao: Thanks for taking my questions. I have two questions here. First, how should we expect the Q4 and next year's growth of QiNiu given the recent relatively soft capital markets? Second, could you please elaborate QianChi and JiangZhen's growth strategy such as new course pipeline, et cetera? Thank you.

given the recent relatively soft capital markets. And second, could you please elaborate? Xinxian, Jiang Zhen's growth strategy, such as new cost pipeline, et cetera. Thank you.

Tim Xie: Thank you, Brenda, for your questions. I think I will answer this question because it is most related to the financial side. I will answer in English. Okay. Thank you. For the first question, in terms of the capital market performance, especially this year for our financial literacy courses, I think we offer both introductory and premium courses currently. This allows us to cater to the needs of learners with diverse educational backgrounds and learning objectives. I think since our beginning of the launch of the courses, both the introductory and advanced courses, such kind of courses target novice learners who wish to acquire basic financial and investment knowledge, but they lack readily available access to easily understandable resources. Our course content extends beyond action markets and covers a wide range of subjects, many covering the basic knowledge and framework of the financial area.

Thank you, Brenda, for your questions. I think I will answer this question because it moves related to financial size. So I'll answer in English. OK, so thank you for the first question in terms of the capital market performance, especially this year for our financial literacy courses. I think we offer both introductory and premium courses currently. This allows us to...

But the lack readily available access to easily understandable resources. Our course content extends beyond actual markets and covers the vast range of subjects and many covering the basic knowledge and framework of the financial area. So these subjects range...

Tim Xie: These subjects range such as basic knowledge in bonds, insurance, and wealth management products. Also, at this stage, we don't see a correlation between the active market and our registered users growth, because most of our growing learners among the public, their aim is to better management personal and family wealth by improving their financial literacy. Many of them even do not have a stock account to trade in the active market. In a sum, I think the conclusion is that there's no direct relationship between our learners' interests or maybe their purchase behavior and the capital market. Actually, since the macro environment situation may impact someone's feeling of their desire to purchase some courses. I think maybe since the macro environment may have some slight impact on some of our purchaser or learners' behavior.

I think such as basic knowledge in bounds, insurance, and investment in products, and also at this stage we don't see correlation between the active market and our registers, users, growth because most of them...

most of our growing learners among the public, they're aimed to better management, personal and the family, that's by improving their financial literacy. But many of them even do not have a stock account to trade in the up to market. But I think, so in a sum, I think the conclusion is that there's no direct relationship between...

our learners' interests or maybe their purchase behavior and the types of market. But actually, since the macro environments and situation make impact of someone's...

feeling of their desire to purchase some causes. And I think maybe since the macro environment we have some slightly impact on some of our...

Tim Xie: I think for the current stage, when we're talking about our financial literacy courses, we will integrate all of our courses, including the financial and the non-financial related courses. That will also answer your second question, because as we continue to expand our course offerings and diversify our revenue streams, we expect to see maybe some shifts in the proportions of our revenue makeup. Specifically, since our launching of JiangZhen and QianChi, respectively, in August 2021 and June 2022, we anticipate that revenue from the non-financial literacy personal interest courses will continue to contribute a greater portion of our overall revenue in the future. We have seen strong demand for these courses, and we are actively working to scale up our offerings in this area.

For sure, there are learners, heaveans. So I think for the current stage, when we're talking about our financial literacy courses, we will integrate all of our...

courses, including the financial and the non-financial related courses. So that will also answer your second question, because as we continue to expand our course offerings and diversify our revenue streams, we expect to see some...

maybe some shifts in the proportions of our revenue make up. Specifically since our long-term change, Jiang Zhan and the change respectively in August 2021 and June 2022, we anticipate that revenue from the non-financial literature

personal interest courses will continue to contribute a greater portion of our overall revenue in the future. We have since drawn demand for these courses, and we are actually working to scale up our offerings in this area. So as a whole, I think we will see the opportunity to result as much as more pipelines over.

Tim Xie: As a whole, I think we will seize the opportunity to reserve as much as more pipelines of our course SKUs and to promote and launch the new SKUs when we think it is probable. I think in the future, as a whole, even there's some change in the macro situation, maybe for every aspect. We think as a whole of the revenue growth, we are very confident for the SKUs growth, both for the financial literacy and also the non-financial literacy. I think as a whole, we will balance the proportion and contribution of each of the courses, considering the return on investment of ROI and also the lifetime value of our learners. Yes. Hope that answers your question.

because I ask you and to promote and launch the new SQs, let me think it is probable. So I think in the future as a whole, even this change in the macro situation, maybe for I read as that, we think as a whole of the revenue growth, they are very confident for the SQs growth. reasons.

for the financial literacy and also the non-financial literacy. I think as a whole we will balance the proportion and contribution of each of the quotas, considering the return on investment of our eye and also the

Liping Zhao: Got it. Very clear. Thanks.

a lifetime value of our learners. Yes, hope that answers your question. Got it, very clear thanks. Thank you. And thank you. Thank you. And the next question today comes from Dany Jam with CLSA. Please go ahead.

Tim Xie: Thank you.

Operator: Thank you. Our next question today comes from Danny Zheng with CLSA. Please go ahead.

Danny Zheng: Hi. Thank you, management, for taking my questions. This is Danny Zheng from CLSA. I have two questions today for the company. The first one is, how have you progressed on deepening and filling your personal interest courses segment? My second question is, what sort of progress are you making so far in the enterprise services? That's it. Thank you.

I thank your management for taking my questions. This is Danny Jinn from Silasway.

So I have two questions for the community. First one is, how do you progress on depending on your personal interest courses, and my second question is, what sort of progress are you making?

so far in the end of the part services. So that's it. Thank you. Yeah, thank you.

and the PRS services. That's it. Thank you. Yeah, thank you. So.

Tim Xie: Thank you. I will answer the question. Thank you for your question. As for the answer, I think we aim to increase the repeat purchase rate for our other personal interest courses by providing exceptional service and meeting the evolving needs of our learners. Because the formal launch of the repeat purchase promotion or operation of our, for example, JiangZhen brand, it just started from late last year. Building on the principle of self-driven, we have implemented several strategies to enhance our repeat purchase rate. I think first, we have been actively customizing courses based on learners' specific needs and preferences by getting feedback through continuous engagement and understanding what our learners want. Based on our understanding of the learners' behavior, we aim to deliver content that resonates with them. This increases their motivation to repurchase.

Yeah, I will answer the question. Thank you for your questions. So as for the answer, I think we aim to increase the repeat rate, repeat process rate for our other personal interest courses by providing.

exceptional service and meeting the evolving needs of our learners. Because the formal launch of the repeat purchase promotion or operation of our, for example, Jiang Jingbran is just started from late last year. So building on the principle of depth-driven, we have implemented several strategies to enhance our repeat purchase rate. I think first, we have been actively customizing course courses based on learners specific needs and preferences by getting feedbacks through continuous engagement and understanding.

what our learners want. And based on our understanding of the learner's behavior, the M2D work content that resonates with this increases the motivation to repurchase. And secondly, we place grid emphasized on serving our learners beyond cost de-bue rate. We design our courses to provide a relevant skills and abilities that learners need. Complimented by supplementary resources and validative services.

Tim Xie: Secondly, we place great emphasis on serving our learners beyond course delivery. We design our courses to provide relevant skills and abilities that learners need, complemented by supplementary resources and value-added services. By offering ongoing support and opportunities for further skill development, we aim to enhance the overall learning experience and encourage learners to continue their journey with us. As a successful example of the repeat purchase for our financial literacy courses, we are very confident that by leveraging such kind of experience and operational efficiency, we can also enhance our repeat purchase operation with the learners for our other interest-based courses. Looking ahead, we expect these efforts to yield positive results in terms of the increased repeat purchase rates. Where we do not have specific projections, maybe it is not probable to forecast a very accurate number to share at this time.

by offering ongoing support and opportunities for further skewed development. We aim to enhance the overall learning experience and encourage learners to continue their journey with them. So, I'd a successful example of the repeat purchase.

for our financial literacy courses. We are very confident that by leveraging such kind of experience and operational efficiency, we can also enhance our repeat purchase operation with the learners for our other interest-based courses. Looking ahead, we expect these efforts to yield positive results in terms of the

increased repeat purchase rates. While we do not have specific projections, maybe it is not probable to forecast a very accurate number.

Tim Xie: We remain optimistic about the potential for growth in this area according to our track record. With our focus on continuous improvement and personalized learning experience, we are well-positioned to attract and retain a loyal customer base. I think this will help foster stronger customer relationship and drive repeat purchase in the future. Thank you.

for growth in this area, according to our track record. With our focus on continued, on continuous improvement and personalized learning experience, we are very positioned to attract and retain a low-you customer base. So I think this will help folks to stronger customer relationship and drive repeat purchase in future.

Danny Zheng: Okay. That's very helpful. Thank you.

Tim Xie: Yeah.

Leah Guo: Our CEO will take the second question concerning the enterprise services.

I will see. I will see. I will take the second question. The answer is just. Okay. I will turn the Chinese on the earlier with a translate for me.

Peng Li: Okay. I will speak Chinese, and Leah will translate for me.

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Leah Guo: We are making great progress in our enterprise services, as we focus on meeting the evolving needs of the businesses. We offer many enterprise-oriented services similar to the TTT camp that I have just talked about earlier. One example is our flagship Gold Interviewer training camp. This is a comprehensive program designed to equip interviewers with the essential skills needed for making effective hiring decisions. We have very experienced trainers. This camp covers strategy, question formulation, candidate evaluation, and many other relevant topics. This has been well received by our clients, empowering them to build strong interviewing teams and make confident hiring choices. Our progress in enterprise services, exemplified by the TTT camp and the Gold Interviewer training camp, demonstrates our commitment to catering to the diverse business needs. At the same time, we maintain a strong focus on quality and relevance. We are constantly innovating and expanding.

We are making great progress in our enterprise services as we focus on meeting the evolving needs of businesses. We offer 90 enterprise oriented services similar to the TTG champ that I have just talked about earlier.

partasa eal Josh traction N me a suka downward joition. Go who your thought first. So you the chap tee on the to IC exam.

One example is our flagship Gold interviewer training cap. This is a comprehensive program designed to equip interviewers with the essential skills needed for making effective hiring decisions.

We have very experienced trainers. This camp covers strategy, question formulation, candidacy evaluation, and many other relevant topics.

I it make confident heriring choices very T D T. should you her jimppania quad, take some MO the offshoir ual I woman to mans but almost some here uh, cohortic usual I woman a hospirality that are not.

Our progress in enterprise services exemplified by the TTT Camp and the Gold interviewer training camp demonstrates our commitment to catering to the diverse business needs.

At the same time, we maintain a strong focus on quality and relevance. We are constantly enlivening and expanding.

Leah Guo: We have witnessed the customers' growth and customer success. We are very excited about the opportunities ahead as we drive growth and success for our clients.

We have written this as the customer's growth and customer success. We are very excited about the opportunities ahead as we drive growth and success for our clients.

Tim Xie: Okay. Thank you for your question.

Operator: Thank you. As a reminder, if you'd like to ask a question, please press star then one. Our next question today comes from Michelle Fong with Citi. Please go ahead.

Okay, thank you for your question. Thank you. And as a reminder, if you'd like to ask a question, please press star then one. Our next question today comes from Michelle Fong with city. Please go ahead. Thank you for your question. I only have three small.

Michelle Fong: Thank you for taking my questions. I only have two small questions. First, you just mentioned that the macro environment has some impacts on the purchasing behavior. Could you please expand a bit more on this? Do you see any changes in downstream demand with different current unfavorable economy environment? Secondly, what's our outlook for next three years on revenue margin and earnings? Thank you.

I think that was our local four max three years on the last year of March and in the next two. Yeah, hi Michelle. Let me clarify your question. Your first question is to ask the macro impact on the purchase behavior of our donors.

Tim Xie: Yeah. Hi, Michelle. Let me clarify your question. Your first question is to ask the macro impact on the purchase behavior of our learners?

Michelle Fong: Yeah. Do you see any changes in the downstream demand?

Yeah, do you have any changes in your thoughts or any different?

Tim Xie: Yeah. Okay. The second one?

Michelle Fong: What's our outlook for next three years, revenue, margin, and earnings?

Okay, so the second one. What I will also look for next few years, that can be imagined and amazed.

Tim Xie: Yeah. Okay. Understood. Thank you. Thank you for your questions. I think for the first one, everyone, I think, has a very easy way to access the internet, the news, the media. I think because most of our learners are mass topics Chinese people, maybe some of them may have their own opinion and channel to access some macroeconomic and capital market, and even our company information. I think some of them may have their own attitude and their own opinion in terms of their own desire to acquire knowledge. For example, if you have no knowledge in terms of the capital market, if you have no outside information, you may have the desire to learn something, to advance your skills. I think if some people have some negative or maybe pessimistic attitude, I think this may impact a little about their purchase behavior.

Yeah, okay, ask that. Thank you. Thank you for your questions. I think for the first one, you know, in maybe everyone I think has a very easy way to access the internet, the news, the media.

So I think because most of our learners are met public, Chinese people, so maybe some of them may have their own opinion and channel to access some macroeconomic and capital markets and even our company information.

So I think some of them may have some their own attitude and their own opinion in terms of their own desire to acquire knowledge. And maybe they have some, for example, if you are not, if you have no knowledge in terms of the capital market, you may have

If you have no outside information, you may have the desire to learn something to advance your skills.

But I think if someone, if some people have some negative or maybe a pathematic attitude, I think this may impact a little about their purchase behavior. So I think, but in...

Tim Xie: I think in terms of our actual financial performance, I think there's no significant adverse impact on our financial performance because I think this kind of challenge or the macro environment challenge may also induce the people's desire to upgrade their self and to enrich their self. The desire, I think, will be strengthened. That will also support our user growth or our popularity of our courses for our learners to learn, to purchase. I think overall speaking, I think in the future, especially in the aging population era for China, the learning and the improvement of their own skills, of the people's personal enrichment, I think this is maybe a must for everybody to do.

But I think in terms of our actual financial performance, I think there's no significant adverse impact on our financial performance because I think this kind of challenge or the macro environment challenge may also induce the people's desire.

to upgrade their self and to enrich their self. The detail I think will be strengthened. So that will also support our youths or growth or our popularity of our courses for our learners to learn, to purchase.

I think overall speaking, I think in the future, especially in the aging population era for China, the learning and the improvement of their own skills of the people's personal

Tim Xie: As a learning platform for the life of learning for our learners, I think with our launch of the new courses and the current courses, I think that will build a solid base for our users' purchase and engagement with our platform. Currently, we also anticipate a very optimistic revenue growth in terms of even the short-term fluctuation or short-term negative attitude in terms of some after-COVID macroeconomic recovery. I think that may answer your questions.

in Richmond, I think this is maybe a must for everybody to do. Learning platform for the life of learning for our learners, I think this is our long shelf of the new courses and the current courses, I think that will build a solid base for our users, purchase and engagement with our platform.

So currently we also anticipate very optimistic revenue growth in terms of the even the short-term fluctuation or short-term negative attitude in terms of some after-coded macroeconomic recovery. So I think that may answer your questions.

Michelle Fong: Thank you so much.

Tim Xie: Yeah.

Operator: Thank you. Ladies and gentlemen, this concludes our question and answer session. I'd like to turn the conference back over to management for any closing remarks.

Thank you so much. Thank you. Ladies and gentlemen, this concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.

Thank you again for joining our call today. If you have any further questions, please feel free to contact us or submit a request through our IR web chat. We look forward to speaking with everyone in our next call. Have a good day. Thank you. Ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Operator: Thank you. Ladies and gentlemen, this concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

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