Q3 2023 17 Education & Technology Group Inc Earnings Call
Okay.
Speaker 1: Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17 EdTech's 3rd Quarter 2023 Earnings Conference Call. At this time, all participants are in the listen-only mode. After management's prepared remarks, there will be a question and answer session.
Good evening, and good morning, ladies and gentlemen, and thank you for standing by for 17 at Teck's third quarter 2023 earnings Conference call.
At this time.
Since are in a listen only mode.
After management's prepared remarks, there'll be a question and answer session.
Speaker 1: As a reminder, today's conference call is being recorded.
As a reminder, today's conference call is being recorded.
Speaker 1: I'll now turn the meeting over to your host for today's call, Ms. Laura Chow, 17 at Tech's Investor Relations Manager. Please proceed, Laura.
I'll now turn the meeting over to your host for today's call Ms. Laura gel 17 at tax Investor Relations manager, Please Chris eat Laura.
Speaker 2: Thank you, operator. Hello everyone and thank you for joining us today. Our earnings release was distributed earlier today and is available on our IR website. Joining us today are Mr. Michael Du, Director and Chief Financial Officer, and myself, Investor Relations Manager.
Thank you operator, Hello, everyone and thank you for joining us today.
This release was distributed earlier today and is available on our IR.
Joining us today are Mr. Michael do director and Chief Financial Officer, and myself Investor Relations manager, Michael will walk you through our latest our latest the business performance and strategies and I will discuss our financial performance.
Speaker 2: Michael will walk you through our latest business performance and strategies, and I will discuss our financial performance in more detail.
Speaker 2: After the prepared remarks, Michael will be available to answer your questions during the Q&A session.
More details.
After the prepared remarks, my micro will be available to answer your questions. During the Q&A session before we begin I'd like to remind you that this conference call contains forward looking statements as defined in section 21 E of the Securities Exchange Act of Nike and for people in the U S private.
Speaker 2: Before we begin, I'd like to remind you that this conference call contains the following statements as defined in Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995.
Securities Litigation Reform Act of 90, United to fight this.
Speaker 2: These forelooking statements are based upon management's current expectations and current market operating conditions, and relate to events that involve known and unknown risks and certainties and other factors, all of which are difficult to predict, and many of which are beyond the company's control. This risk may cause the company's actual results, performance, or achievements to differ materially.
These forward looking statements are based upon management's current expectations.
Current marketing operating foundation and it relates to events that involve known and unknown risks uncertainties and other factors all of which are difficult to predict and many of which are beyond the company's control. These risks that may cause the company's actual results performance or achievements to differ materially.
Speaker 2: Further information regarding these and other risks and certainties or factors is included in the company's filings with the USSEC. The company does not undertake any obligation to update any forwarding statements as a result of new information, future events, or otherwise except as required under applicable law.
All right.
Further information regarding these and other risks uncertainties or factors is included in the Companys filings with the U S. SEC The company does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise except as required under applicable.
Speaker 2: I will now turn the call over to our Director and Chief Financial Officer to review some of our business development and strategic direction. Michael, please go ahead.
The law I will now turn the call over to our director and Chief Financial Officer to reveal some of our business development and strategic direction Michael.
Pat.
Speaker 3: Thank you, Laura. Hello, everyone. Thank you all for joining us on our third quarter 2023 earning
Thank you Elias.
Thank you all for joining us on our third quarter 2023 earnings call.
Speaker 3: Before we begin, I would like to note that the financial information and the GATT numbers in this release are presented on a continuing operation basis in the RMB and ISR, unless otherwise stated. Let me start with our agenda.
Before we begin I would like to note that the financial information in GAAP numbers in this release.
Are presented on a continuing operation basis and the RMB.
Unless otherwise stated.
Let me start with our latest business updates in this quarter, our business continued to evolve and we made progress establishing additional bally models to remain flexible under the current economic environment.
Speaker 3: In this quarter, our business continued to evolve and we made progress in establishing additional billing models to remain flexible under the current economic environment.
Speaker 3: We managed to deliver a higher value of projects compared to the same quarter last year. However, the decrease in our total revenue compared to the same quarter last year.
We managed to deliver a high value of projects compared to the same quarter last year. However, the decrease in our total revenue compared to the same quarter last year.
Speaker 3: was because of the cessation of our self-directed learning products and services and our other educational services due to regulatory environment change.
It was because of the cessation of our self directed learning products and services and all other educational services due to regulatory environment change.
Speaker 3: There are two positive trends worth noting. We managed to sign contracts of higher value in the third quarter of 2023 than the second quarter of 2023, when we excluded the R&B $116 million long-term Ming-Hong project.
They are two positive trends worth, noting we managed to sign contracts have higher value in the third quarter, our top 20, Threep <unk> second quarter 2003, when we cool.
116 million longtime behind project.
And to.
Speaker 3: An increasing number of projects are now being signed under the SaaS billing model, which although generates revenues over a longer period of time, but is more likely to be
An increasing number of projects and not being signed under the SaaS billing model, which also generates revenues over a longer period of time.
But it's more likely to be recurring in nature.
Speaker 3: This will allow the company to accumulate a healthier and a recurrent project portfolios that will lead to a healthier financial foundation.
We have allowed the company to accumulate a healthier and a recurrent project portfolios that would lead to a healthier financial foundation.
Speaker 3: At the same time, we continue to pursue improvements in operational efficiency and reduce operational expenses.
At the same time, we continue to pursue improvements operational efficiency and reduce our accretion expenses, we are committed to butte.
Speaker 3: Building a business that enhances teachers' teaching and students' learning experiences through our deep insights into education and technology.
Building, a business that enhances teacher's teaching and students learning experiences.
Our deep insights into education and technology.
Now please allow me to go into more details.
Speaker 3: During this quarter, the company successfully won the bid for a new smart pen and intelligent homework-based digital transformation service project in Shanghai Changning project. Value and R&B.
During the quarter. The company successfully won the bid for a new smart intelligent homework based digital transformation service projects in Shanghai, China project.
At RMB <unk> 6 million.
Speaker 3: The project includes 290 classes in 18 middle schools in the district, spanning across grades 6 to 8, covering over 10,000 students.
The project includes 290 classes in Asia.
Meadow schools in a district spanning across create 68 covering over 10000 students.
Speaker 3: Additionally, the company secured another project involving SmartPAN and Intelligent Homework platforms in Shanghai Chowning District's primary schools on November 8, 2023. This newly won project extends further to 28 primary schools incorporating 128 classes and benefiting more than 4,000 students.
Additionally, the Companys Q another projects involving smart panna intelligent homework platforms in Shanghai, China industry primary schools on.
In November the eight <unk> 23.
This newly won projects extends it further to 2008 primary schools, incorporating 128 classes and benefiting more than 4000 students.
Speaker 3: These projects have engaged more schools in our teaching and learning platform, further broadening our impact and rich in distributing our high, high quality solutions. It signifies a continued partnership between these education bureaus and 17 AdTech, marking the second collaboration since our initial engagement last year.
These projects have engaged more schools in our teaching and learning platform Sheridan Road anyhow impact and reach in distributing our high high quality solutions.
Signifies our continued partnership between these education bureaus, and 17 high Tech marketing the second collaboration sees our initial engagement last year.
Speaker 3: This recurring partnership has demonstrated our recognized leadership and capability in the small in-school learning and teaching solutions across China.
This recurring partnership has demonstrated our recognized leadership.
That capability in the small any school learning and teaching solutions across China.
Speaker 3: In the third quarter, we are delighted to observe consistent development in our key teaching and learning projects that we have won earlier.
In the third quarter, we are delighted to observe consistent development.
<unk> teaching and learning projects that we have won earlier.
Speaker 3: These progressions are reflected not only in our recognized revenue, but also that the growing number of signed contracts.
These progressions I reflected not only in our recognized revenue, but also that the growing number of signed contracts.
Speaker 3: The SmartPay and Intelligent Homework-Based Education Digital Transformation projects in Shanghai Minghang District continue to generate substantial revenue in the third quarter of 2023, following a successful delivery and acceptance by our clients.
The smart intelligent homework based education digital transformation projects in Shanghai, We have continued to generate substantial revenue in the third quarter. Our top 20 Street following a successful delivery and acceptance by our clients.
Speaker 3: Similarly, the Beijing Xicheng Cloud Classroom Evaluation System project also recognized corresponding revenues in the second phase.
Similarly the.
Debating sheets and cloud classroom evaluation system project also recognized corresponding revenues in the second phase.
Speaker 3: These developments have represented steady progress in our business operations, ensuring a consistent revenue stream.
These developments have represented steady progress in our business operations.
During a consistent revenue stream.
Speaker 3: During this quarter, we pursued innovative approach and flexible structures targeting additional customer groups in this space, including private schools and the leading public schools.
During this quarter, we pursue we pursued innovative approach and our flexible structures targeting additional customer groups in this space, including private schools and a leading public schools groups. These clients tend to be more demanding in the details and the solutions that we provided and most receptive for more.
Speaker 3: These clients tend to be more demanding in the details and solutions we provided and are more receptive for more innovative food suite products and services.
They tend to full suite products and services solutions.
Speaker 3: Through deep collaborations with these clients, our aim is to reach out to more schools and students and enrich their teaching and learning experiences through digitalized and intelligent means, which will be enhanced on top of our module-based districts.
Her deep collaborations with these clients. Our aim is to reach out to more schools and students and reached their teaching and learning experiences.
Digital ally's any intelligent means which will be housed on top of our module based district solutions.
Speaker 3: Specifically, on October 30, 2023, we initiated a strategic partnership with Kunshan Kunshan Foreign Language School, aiming to strengthen its digital education infrastructure.
Specifically October <unk> to 'twenty, three we initiated a strategic partnership with <unk>, Sean Quinn from sorry language school aiming to strengthen its digital education infrastructure.
Speaker 3: We provided our offerings to junior high school classes and students in grades 3 to 6 of elementary.
We provided our offerings to junior high school classes and the students in grades three to six of our inventory skus leverage our core competencies and technologies and extensive big data profiles in teaching and learning process, we focus on the value of personalized learning for the better development of each.
Speaker 3: Leverage our core competency in technologies and extensive big data profiles in teaching and learning.
Speaker 3: we focus on the value of personalized learning for the better development of each.
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Speaker 3: Looking ahead, we see great potentials from these initiatives and expect continued growth and positive outcomes in 2020.
Looking ahead, we see great potential from these issued initiatives and expect continued growth and the positive outcomes in.
In subsequent quarters.
Speaker 3: Search services will allow us to cover more types of clients with different funding sources to remain agile under the current economic environment.
Such services will allow us to cover more types of clients with different funding sources to remain agile.
Under the current economic environment.
Speaker 3: In addition, we have successfully signed multiple new representative SaaS-based contracts with private
In addition, we have successfully signing multiple new representatives SaaS based contracts with private schools. This includes smart panning intelligent homework based high quality operation projects services to a leading private school of more than 4500 students in Changsha, Hunan Province.
Speaker 3: This includes smart payment, intelligent homework-based, high-quality operation project services to a leading private school of more than 4,500 students in China.
Speaker 3: and another project with a private school group in Hunan Province.
And another project with a private school group in Hunan Province.
Speaker 3: Both of these projects have an expected annual revenue of approximately RMB 10 million or more and is likely to be recurrent.
Those up these projects have an expected annual revenue of approximately RMB 10 million more and is likely to be recurrent.
Speaker 3: Going forward, we expect SAS billing model to pick up gradually as the market is.
Going forward, we expect soft billing model to pick up gradually as the market is.
Getting more familiar with it.
Speaker 3: Despite the lower initial revenue recognized under such model, we see strong benefits of its recurring nature as our business continues to grow.
Despite the lower initial revenue recognized under such model, we see strong benefit of its recurring nature as our business continues to grow.
Adam.
Speaker 3: In the aspects of product and services offerings, we have been constantly refining our call offerings to align with our customers' needs and enhance user experiences, promoting regular usage within.
And the aspects of product and services offerings, we have been constantly refining our core offerings to align with our customers' needs any enhanced user experiences promoting regular usage willing school.
Speaker 3: This strategy not only enhances the value we provide to our customers,
This strategy not only enhance the value we provide to our customers.
Speaker 3: but also gains customer recovery conditions that will assist future recovery revenues.
But also gains customer recovered munitions got it.
This feature recurrent revenues.
During this quarter.
Speaker 3: We innovate by integrating traditional interactive classrooms with cloud recording, which aid efficient teaching, elevate classroom quality, and
We innovate by integrating traditional interactive classrooms with cloud recording.
Which as efficient teaching.
Elevate classroom qual.
Quality.
Surplus daily teaching supervision and assessment.
Speaker 3: We continue to explore the application of artificial intelligence in our real teaching scenarios, a venture that however has begun to yield results in our ongoing projects.
We continue to explore the application of artificial intelligence in our Rio teaching scenarios, a benchmark of how has begun to yield results.
<unk> projects.
Speaker 3: On the hardware front, thanks to IoT Smart Management, our Spark 10 consistently performs on the optimal level with nearly 200,000 units already delivered.
On the hardware front, thanks to Iot Smart management, our spot <unk> consistently performs an optimal level was nearly 200000 units already delivered and are being used.
Speaker 3: Our self-development SPOTPAN project has successfully completed the pilot testing phase.
Our South Carolina spot Pan projects have successfully completed the pilot testing phases, we plan to gradually increase its production in the fourth quarter of this year targeting to achieve mass distribution by next year.
Speaker 3: We plan to gradually increase its productions in the fourth quarter of this year, targeting to achieve mass distribution by next year.
Speaker 3: During this quarter, we actively participate in several premier education technology conferences, such as the Shanghai Education Expo, the GET 2023 Technology Conference, and the Global Education Summit.
During this quarter, we actively participating sever Premier Education Technology conference such as the Shanghai Education, Exco that Get's SAR 20 Street Technology Conference and the 82nd China Education equipment Exhibition Forum. This firm is our industry leading.
Speaker 3: and the 82nd China Education Equipment Exhibition Forum. These forums are industry-leading platforms that facilitate meaningful dialogue between practitioners and decision-makers regarding future of education.
Forms that facilitate meaningful dialogue practitioners and physician makers regarding future of education.
Speaker 3: We shared our experiences and practice in one teaching, one learning task off.
We shared our experiences and our practice in one teacher and one learning sauce pathway.
Speaker 3: that provides insights into our overall high-quality intelligent homework solutions in the digital transformation of regional schools for mass scale and the regular.
That provides insights into our ultra high quality intelligent homework solutions and a digital transformation of original schools, while mass scale and the regular use.
Speaker 3: They have received broad recognition and attracted substantial attention from educational authorities and attendees.
They have received pro recognition and attracted substantial attention from education authorities and attendees.
Okay.
In terms of other educational services business.
Speaker 3: As the company shifts its strategic focus towards teaching and learning science operations due to regulatory environments, we have observed a diminishing chance in their contribution in revenue.
As they come as the company shifted strategy strategic focus towards T channel learning SaaS operations due to a regulatory environments, we have observed that diminishing trends in their temperature Lucian King revenue.
Speaker 3: The demand for these products is highly dependent on the regulatory environment and the provision of competing services types.
The demand for these projects.
Products is highly dependent on the regulatory environment and the provision of competing services types.
Moving forward, we remain committed to explore educational products and services that compliant with regulatory environments.
Now I will turn the call over to Laura to walk you through our latest financial performance. Thank you.
Yeah.
Okay.
Thanks, Michael and thank you everyone for joining us.
Speaker 2: the call. I will now walk you through our financial and operating results. Please note that all financial data I talk about will be presented in R&D terms. I would like to remind you that the quarterly results we present here should be taken with care and referenced to our potential future performance and subject to potential impact.
I will now walk you through our financial and operating results. Please note that all financial data and talk about will be presented in RMB terms.
I would like to remind you that the quarterly results. We present here should be taken with care and reference to our potential future performance and subject to potential impact.
Speaker 2: from seasonality and one-off events as a result of the series of regulations introduced in 2021 and corresponding adjustments to our business model.
From seasonality and one off events as a result of the series of regulations introduced in 'twenty, 'twenty, one and corresponding adjustments to our business model.
Speaker 2: organization and workforce. During the quarter, the company continues to pursue improvements in operation efficiency and innovative strategies to broaden our customer base.
Organization and workforce during the quarter the company continues to pursue <unk>.
<unk> in operation efficiency, and innovative innovative strategies to broaden our customer base.
Speaker 2: leveraging artificial intelligence to further enhance user experience and improve efficiency capabilities. Our strong focus on innovation, customer experience, and exploring new business models has put the company in a strong position for future success.
Leveraging artificial intelligence to further he has user experience and improve efficiency capabilities, our strong focus on innovation customer experience and exploring new business models has put the company in a strong position for future success.
Speaker 2: In the third quarter of 2023, we recorded net revenues of RMB45.1 million, compared with 69.2 million in the second quarter, representing a 63.8% decrease on a quarter-on-quarter basis.
In the third quarter of 2020 sway.
Net revenues of RMB, $45 1 million compared with $69 2 million in the second project, representing a 63, 9% up eight.
8% of decrease on a quarter on quarter basis, the net loss for the third quarter of 2803 was $72 9 million.
Speaker 2: The net loss for the third quarter of 2023 was $72.9 million, compared with $47.9 million in the second quarter of 2023, and $20.5 million for the third quarter of 2022.
<unk> with $47 9 million in the second quarter of 2023 and 25.
<unk> 5 million for third quarter of 2022.
Speaker 2: The adjusted net losses for the third quarter of 2023 was RMB 53.7 million.
Yes, adjusted net losses for the third quarter of 2023 was 50 with RMB $3 7 million.
Speaker 2: paired with the adjusted net income, non-GAAP , of 8.3 million RMB in the third quarter of 2022, and RMB 28.6 million on a quarter-on-quarter basis.
Compared with the adjusted net income non-GAAP of $8 3 million RMB in the third quarter 2022.
RMB 28, 6 million quarter on quarter basis.
Speaker 2: Furthermore, our gross margin has further improved to 54.1%, up 5.8 percentage points, compared with 48.3% in the second quarter of 2023.
Furthermore.
Gross margin has further improved to 54, 1%.
Five eight percentage point compared with four to eight 3% in the second quarter of 2023.
Speaker 2: As of September 30, 2023, we have cash reserves of RMB 523.5 million on our balance sheet, providing sufficient funds for future development.
As of September 30th 20 to anticipate we have cash reserve of RMB, $523 5 million, our balance sheet, providing sufficient funds for future development.
Speaker 2: Next, I will go through our third quarter financials in greater detail. Net revenues. Net revenues for the third quarter of 2023 were
Next I will go through.
Our third quarter financials in greater detail net revenues net revenues for the third quarter of 2023 what.
Speaker 2: RMB45.1 million, representing a year-over-year decrease of 63.8% from 124.6 million in the third quarter of 2022. This was mainly due to
RMB $45 1 million, representing a year over year decrease of 63, 8% from 120 $124 6 million in the third quarter of 2022. This was mainly due to one.
Speaker 2: the reduction in net revenues from other educational resources as we focus our resources on our core teaching and learning staff business.
The reduction in net revenues from other educational resources as we focus our resources on our core teaching and learning SaaS business and to a higher proportion of new teaching and learning SaaS contract. We signed in the third quarter are under the SaaS billing model, which recognized.
Speaker 2: And two, a higher proportion of new teaching and learning SAS contracts we signed in the third quarter are under the SAS billing model.
Speaker 2: which recognizes revenue over a longer period of time and a slower pace.
Revenue over a longer period of time and a slower pace.
Speaker 2: This, along with the large amount of revenue recognized in association with the major delivery for Minhang project in the second quarter, contributed to the lower net revenues in the third quarter compared to the second quarter of 2023.
This along with the large amount of revenue recognized in the first in association with the major delivery for me how project in the second quarter contributed to the lower net revenues in the third quarter compared to the second quarter of 2023.
Speaker 2: Cost of revenues. Cost of revenues for the third quarter of 2023 was RMB 20.7 million, representing a year-over-year decrease of 34.7% from RMB 31.7 million in the third quarter of 2022, which was mainly due to cost reduction in third-party service providers of other educational services.
Cost of revenues cost of revenues for the third quarter of 2023 was RMB 27 million, representing a year over year decrease of 34, 7%.
On the $31 seven mailing in a third quarter of 2022.
Which was mainly due to cost reduction in third party service providers. So for other educational services.
Gross profit.
Speaker 2: for the third quarter of 2023 was RMB 24.4 million, representing a year-over-year decrease of 73.7% from 92.9 million in the third quarter of 2022. Gross margin for the third quarter was 54.1% compared with 74.5% in the third quarter of 2022.
For the third quarter of 2023 was RMB $24 4 million, representing a year over year decrease of 73, 7% from $92 9 million in the third quarter of 2022 gross margin for the third quarter was.
54, 1% compared with 74, 5% in the third quarter of 2022.
Speaker 2: Total operating expenses for the third quarter of 2022 was RMB 103.1 million, including 19.2 million RMB share-based compensation expenses, representing a year-over-year decrease of 14.5% from 120.5 million in the third quarter of 2022.
Total operating expenses for the third quarter of 2802 was RMB $103 1 million in coding $19 2 million RMB share based compensation expenses, representing a year over year decrease of 14, 5% from 125.
Milling in the third quarter of 2022.
Speaker 2: loss from operations for the third quarter of 2023 was
Loss from operations for the third quarter.
2023 was.
Speaker 2: RMB 78.7 million compared with RMB 27.6 million in the third quarter of 2022. Loss from operations as a percentage of net revenues for the third quarter of 2023 was negative 174.4 percent compared with negative 22.2 percent in the third quarter of 2022.
RMB $78 7 million compared with RMB 27, 6 million in the third quarter of 2020 to loss from operations as a percentage of net revenues for the third quarter of 2023 was negative 174, 4% compared with <unk>.
Negative 22, 2% in the third quarter of 2022 net loss for the third quarter of 2020 as Ray was.
Speaker 2: Net loss for the third quarter of 2023 was $72.9 million, compared with net loss of $23.5 million in the third quarter of 2023.
$72 9 million compared with net loss of $23 5 million in the third quarter of 2022 net loss as a percentage of net revenues was negative 131, 6% in the third quarter compared with negative 18, 9%.
Speaker 2: Net loss as a percentage of net revenues was negative 131.6% in the third quarter compared with negative 18.9% in the third quarter of 2020.
In the third quarter of 2022.
Speaker 2: Adjusted net loss non-GAAP for the third quarter of 2023 was $63.7 million, compared with adjusted net income non-GAAP of $8.3 million in the third quarter of 2022.
Adjusted net loss non-GAAP for the third quarter of 2023 was $53 7 million compared with adjusted net income non-GAAP of $8 3 million in the third quarter of 2022.
Speaker 2: adjusted net loss non-GAAP as a percentage of net revenues was negative 119.1 percent in the third quarter of 2023 compared with 6.7 percent of adjusted net income as a percentage of net revenues in the third quarter of 2023.
Adjusted net loss non-GAAP as a percentage of net revenues was negative 119, 1% in the third quarter of 2023, compared with six 7% of adjusted net income as a percentage of net revenues in the third quarter of 2022. Please.
Speaker 2: Please refer to the table captioned Reconciliation for non-GAAP Measures to the most comparable non-GAAP measures at the end of this press release.
Please refer to the table captioned reconciliation.
non-GAAP measures to the most comparable net GAAP measures at the end of this press release.
For a reconciliation of net loss.
Speaker 2: under U.S. GAAP to adjust net income or loss non-GAAP .
Under U S GAAP to adjusted net income or loss non-GAAP.
Speaker 2: Cash and cash equivalents, restricted cash, short-term investment, and term deposits will RMB $523.5 million as of September 30, 2023, compared with $585.7 million as of June 30, 2023.
Cash and cash equivalents restricted cash and short term investments and term deposits were RMB three $523 5 million as of September 32023, compared with $585 7 million as of June 32.
1023.
Speaker 2: As we look to the future, the rise of digital transformation in education marks a significant shift in this evolving era of educational development. The rapid evolution of digital technology is driving transformative changes within the education sector.
As we look to the future the rise of digital transformation unite occasion marks a significant shift in evolving in this evolving euro of educational development. The rapid evolution of digital technology is driving is driving transformative changes within the education sector.
Speaker 2: committed to the mission of making learning a wonderful experience, SEVENTEEN-ITEC will utilize its advanced educational technologies, high-quality educational content, and enduring passion for education to make insightful contributions to regional digital transformations in education and contribute to the high quality of education.
Committed to the mission of making learning a wonderful experience 17 attack will utilize this advantage that educational technologies high quality educational content and enduring passion for education to make insightful contributions to raise no digital transformation seeing that occur.
Patients and contribute to the high quality of education with that that concludes.
Speaker 2: our prepared remarks. Thank you. Operator, we are now ready to begin the Q&A session. Thanks.
Our prepared remarks, thank you.
Operator, we are now ready to begin the Q&A session. Thanks.
Speaker 1: Thank you. We will now begin the question and answer session. To ask a question, please press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster.
Thank you we will now begin the question and answer session to answer questions. Please press star one one on your telephone you wouldn't hear an automated message revising your hand is raised to withdraw your question. Please press star one again please.
Please standby, while we compile the Q&A roster.
Okay.
Speaker 1: Again, to ask a question, please press star 11 on your telephone keypad.
Again to ask a question. Please press star one one on your telephone keypad.
And Thats Star one one for questions.
Speaker 1: I am showing no questions and I'll turn the conference back to Ms. Lara Zhao for any additional closing comments.
I am showing no questions I will now turn the conference back to MS. Laura <unk> for any additional closing comments.
Okay.
Speaker 2: Thank you, operator. In closing, on behalf of 17-ITX management team, we'd like to thank you for your participation on today's call. If you require any further information, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call.
Thank you operator in closing on behalf of <unk> management team wed like to thank you for your participation on today's call. If you require any further information please feel free to reach out to us directly. Thank you for joining us today.
This concludes the call.
Speaker 1: Thank you, that concludes today's conference call. Thank you for participating. You may now disconnect.
Thank you that concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
Okay.
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Okay.
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