Q2 2025 QuantaSing Group Ltd Earnings Call
Good morning, and good evening, ladies and gentlemen.
Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Quantasing's earnings conference. All participants are in a...
Thank you for standing by and welcome to conduct things earnings Conference call.
At this time all participants are in a listen only mode.
Operator: be hosting a question and answer session. have it now. Thank you.
We'll be hosting a question and answer session. After the management's prepared remarks.
Please note that today's event is being recorded.
I will now turn the conference over.
Li: Ms Li.
Yeah.
Investor Relations Associate director of the company.
Li: Please go ahead ma'am.
Li: Thank you Hello, everyone and welcome to climate earnings call for the second quarter, our physical year tiny tiny fine with us because they all moved up Holly our founder Chairman and CEO.
Operator: Hello, everyone, and welcome to Quantasing earnings call for the second quarter of fiscal year 2025. With us today are Mr. Peng Li, our founder, chairman and CEO, and Mr. Tim Xie, our CFO.
Li: I'll admit to close it.
Li: Our CFO.
Operator: Mr. Li will provide a business overview for the quarter. The team will discuss the financials in more detail. Following their prepared remarks, Mr. Li and team will be available for the Q&A session.
Li: Mr. Lee will provide a business overview for the quarter and Tim will discuss the financials in more detail following their prepared remarks, Mr. Li and team will be available for the Q&A session I will translate its long history.
Leah Guo: I will translate for Mr. Li.
Operator: You can refer to our quarterly financial results on our IR website at ir.quantasing.com. You can also access a replay of today's call on our IR website when it becomes available a few hours after its conclusion.
Li: Okay.
Speaker Change: Our quarterly financial results I'll upset and I adopt promising dot com you can also access a recording.
Speaker Change: Today's call I'll I'll upset when it becomes available a few hours after its conclusion.
Operator: 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. Please note that all numbers stated in the following management's prepared remarks are in RMB terms, and we will discuss non-GAAP measures. which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filing.
Before we continue I would like to say to our safe Harbor statement in our press release, which also applies to this call and we will be making forward looking statements. Please note that all numbers stated in a following management's prepared remarks are in RMB terms, and we will discuss non-GAAP measures today.
Speaker Change: Which I loved that really explained and reconciled to the most comparable measures reported.
Speaker Change: This release and filings with the SEC.
Peng Li: I will now turn the call over to the CEO and founder of Quantasing, Mr. Peng Li. OK. Good morning, everyone. Thank you for joining us today to discuss Quantasing's second quarter results for fiscal year 2025. Let me begin with our financial performance for this quarter. Our revenues will be $726.6 million. As we have mentioned in previous quarters, we are taking a careful approach to business development. We are moderating growth in our traditional business lines while also testing new initiatives. This shift from focusing on traffic-driven growth to high-quality growth is delivering results. As shown by our financial results, the changes in revenue, both sequentially and year over year, reflect our planned reallocation of resources.
Kelly: I'll now turn the call over to the C O N Thunder of Qantas thing with Kelly.
Speaker Change: Okay, Oh come on you everyone. That's here today to discuss quite a thing.
Kelly: Quarterly results for our fiscal year I suppose it could be bought.
Kelly: Let me begin resolved with the National football. There's all this call. There are lot of revenues were RMB 720 616 million.
Kelly: As we have mentioned in previous calls.
Speaker Change: Yeah, taking a careful approach to business development.
Speaker Change: Moderating growth in our traditional business lines, while also testing new initiatives.
Speaker Change: This shift problem focusing on traffic driven gross who have quality growth.
Speaker Change: Delivering results.
Speaker Change: Children by our financial results.
Speaker Change: The changes in revenue are both tech gradually and the year over year reflect our plans a.
Speaker Change: Reallocation.
Speaker Change: The result is.
Peng Li: At the same time, our discipline and execution has increased our net income to RMB 126.8 million. This strong bottom line performance highlights our ability to optimize operations while selectively investing in promising opportunities. Our established online learning business is doing well and generating steady cash flow to support our strategy. to build a user base of 100,000 users. 39.6 million registered users and are committed to maintain high service quality. This quarter, we have made great progress in cost development. For example, in our financial literacy program, we added 22 new lecturers. We've completed major updates to our financial report training cap.
Speaker Change: At the same time.
Speaker Change: Disciplined execution has increased our net income to RMB 120.
Speaker Change: Pardon.
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Speaker Change: This strong bottom line performance highlights our ability to optimize.
Speaker Change: <unk> operations, while selectively investing in promising alternative.
Speaker Change: Otherwise tabulation.
Speaker Change: Learning business is doing well and are generating Saturday.
Speaker Change: Steady cash flow to hotel tragedy.
Speaker Change: To build a user base of <unk>.
Speaker Change:
Speaker Change: 39 pardon me.
Speaker Change: Made it where it is Terry.
Speaker Change: <unk> you Sir.
Speaker Change: We're committed to maintain high service quality.
Speaker Change: This quarter, we have made great process.
Speaker Change: Cost development.
Speaker Change: For example, in our financial literacy program.
Speaker Change: At day 22, new luxurious.
Speaker Change: We completed major updates to our national recall its training Tac.
Peng Li: Our programs for business partnerships and the user. acquisition, keeping up with market trends and meeting the public demand for financial knowledge. We are also seeing remarkable results in our calligraphy project for senior learners. This is a real enthusiasm for traditional culture learning among middle-aged and elderly individuals. And our Qianchi calligraphy program tailored to their needs. We've created a variety of courses to help seniors enhance their enjoyment of life and find spiritual fulfillment through learning calligraphy. Our curriculum starts from basic writing technicals and moves on to studying Asian semesters. And finally, allow for free creative expression.
Speaker Change: Our programs fall business upon their ships and the user.
Speaker Change: Oh acquisition are keeping up with market trends and it maintains the public's demand for.
Speaker Change: And there's a knowledge.
Speaker Change: We are also seeing remarkable results in our critical ERP project cost and they are alert us. This is a real soon.
Speaker Change: She was here.
Speaker Change: For traditional couch or learning among middle age it out in the elderly and the videos.
Speaker Change: Now change or kind of go up a program.
Speaker Change: Pillar two is there a niche there.
Speaker Change: They create a T. It's a variety of Cortez to help seniors, yes, there in government health life and upon the spiritual fulfillment so learning how to go after it.
Speaker Change: Our two week cooler stars from basic writing a technical.
And most to studying.
Speaker Change: Ah patients Natera.
Speaker Change: And the finally allow for free creative expression.
Peng Li: We tailored our program to fit the physical and the mental needs of elderly students. respecting their learning pace. At each stage, our professional instructors provide homework feedback and offer technical guidance, helping students develop impressive calligraphy skills. Thanks to our thoughtful planning and diverse learning experiences, the conversion rate for advanced courses has increased from over 40% last quarter to over 60% this quarter.
Speaker Change: We tailor our program to speed, the physical and the mental neat Oh elderly is still good.
Speaker Change: Respecting their lending pace.
Speaker Change: It fits our professional instructors provide homework feedback and Oh for technical guidance, how can students develop impressive.
Speaker Change: Kinda co our paid Skus.
Speaker Change: Thanks to our South school funding and he was a learning experiences the commercial rates fall or the box.
Speaker Change: Cortez has increased their problem or a 30% last quarter or two or 60 this quarter.
Peng Li: On top of our online learning, our consumer business is also growing. revenues have reached RMB 64.5 million, which is a 39% increase compared to the same period of last year. This growth is largely due to our expansion into wellness products aimed at the silver economy, where we are already seeing strong results. Our Zhiqiu Tang brand of sold-as-medicine products has gained significant market traction. with several flagship products performing exceptionally well. The combined cash flow from our established business lines gives us a solid base for making strategic investments in growth areas and exploring new opportunities. Our strong balance sheet and cash position stand out.
Speaker Change: On top of our all of our learning how about consumer business. He is also Korea.
Speaker Change: <unk> revenues have reached RMB.
Speaker Change: $54 5 million.
Speaker Change: Which is.
Speaker Change: 30 lie.
Speaker Change: Per cent increase.
Speaker Change: Compared to the same period those are lumpy.
Speaker Change: Growth is largely due to our expansion into wellness called Das.
Speaker Change: Aimed at a few of our economy.
Speaker Change: We're already seeing strong results.
Speaker Change: Hello could you Tom prompt.
Speaker Change: So as medicine products.
Speaker Change: <unk> has gained significant market traction.
Speaker Change: With several flagship products performing.
Speaker Change: Except the exceptionally well.
Speaker Change: The combined cash flow from our established the business lives gives us a solid base for.
All making scratch da Cunha investments in growth areas and Ah, it's part lottery new opportunities.
Speaker Change: Strong balance sheets and the cash position.
Standouts with M B, a y gardens to hang George.
Peng Li: With RMB 1,213.2 million cash and cash equivalent restricted cash and short-term investments, we have the flexibility to invest in promising areas. while staying in financial discipline. Our ability to fund ourselves is crucial, allowing us to make smart investments without relying on external funding.
Speaker Change: The 30th pawns.
Speaker Change: Two meeting cash.
Speaker Change: Kashi Cleveland Labs.
Speaker Change: Our restricted cash and short term investments.
Speaker Change: How has the flexibility to invest clean and promising area.
Speaker Change: Well staying financial discipline.
Speaker Change: Our ability to found ourself is a crucial allowing us to make smart investments without relying all I can know pumping.
Peng Li: This strong financial foundation sets the stage for our strategic expansion into diverse business opportunities. In a rapidly evolving market environment, we continue to identify and explore new possibilities. Throughout our history, we have adapted to market changes by standing agile and responsive. We began as pioneers in online learning, building a strong foundation in that area. As new opportunities arose, we expanded our offerings across multiple categories. Now we are looking at opportunities both within our established area and beyond, including growing our customer business in the silver economy and testing new products and services. By diversifying our revenue streams across different business lines, we are positioning ourselves to navigate market uncertainties and cyclical changes.
Speaker Change: This strong financial foundation sets the stage for our.
Speaker Change: Let's take the expansion into diverse.
Speaker Change: Business opportunities in a rapidly evolving market environments, the Canadians to identify and explore new possibilities.
Speaker Change: With our history, we have adapted to market changes by studying agile and there is a we began.
Speaker Change: Yes.
Speaker Change: They are building a strong foundation in the area of new opportunities that arose.
Speaker Change: Spent eight of our offerings.
Speaker Change: Well multiple categories now they are looking at opportunities both within our established the area on the B L.
Speaker Change: <unk> broadened our customer business is the theme of our economy and testing new products and services.
Speaker Change: By diversifying our revenue streams across different business lines, we are positioning our positioning ourselves to mitigate market also good taste and the effect like coal tenders.
Peng Li: This diversification strategy helps us reduce risks in any single business area and builds a more resilient business in today's fast changing environment.
Speaker Change: They they what's their kitchen strategy helps us news risks in any single business area and the built a more resilient business in today's fast changing environment.
Peng Li: Let me share some of our early exploration initiatives and showcase this diversification strategy. One area where we are exploring is the silver economy, which connects our established consumer business with new exploration initiatives. And we are seeing encouraging results, particularly in our health and wellness product line. In this line, our food and medicine products has gained strong market acceptance. Our Zhiqiu Tang brand combines traditional Chinese wisdom with modern health solutions. Using time-tested natural ingredients and advanced X-tray extraction technology. this approach leads to effective a science-backed health solution. Let me share why our products are resonating with customers.
Speaker Change: Let me share some of the early exploration initiatives and a suitcase.
Speaker Change: This diversified kitchen sketchy.
Speaker Change: One area, where we are exploring is the silver economy, which connect.
Speaker Change: <unk> established a consumer or a business with new exploration initiative.
Speaker Change: And we are seeing encouraging results.
Speaker Change: Particularly in our health and wellness product glut.
Speaker Change: Is it flat.
Speaker Change: Food as medicine products has gained strong market acceptance.
Speaker Change: Tinseltown Bronx combines our traditional Chinese wisdom.
Speaker Change: Model House solutions.
Speaker Change: Using time test stage natural ingredients.
Speaker Change: Ingredients and it allows the X trade extraction.
Speaker Change: Okay.
Speaker Change: This approach leads to effect too.
Speaker Change: Our science backed health solutions.
Speaker Change: Let me share why our products are resonating with customers.
Peng Li: Many consumers, including a. a 70-year-old Shanghai resident, adding our herbal extract products into their daily wellness routines. They found that these natural supplements fit well with their health habits and lifestyle choices. The position feedback. But the positive feedback from customers shows that our products meets real market needs and supports our strategy in this area. We're also focused on product innovation. We have a robust pipeline of additional health and wellness products aimed at the silver economy market. This shows our commitment to carefully testing and expanding successful offerings.
Speaker Change: Many consumers including.
Speaker Change: A 17 year old Shanghai with it.
Speaker Change: Adding our her boat.
Speaker Change: X charge.
Speaker Change: The product into their day.
Speaker Change: Really wellness routines it sounds that.
This NATO to make a couple of months.
Speaker Change: Now with their health habits and lifestyle choices.
The petitions feedback.
Speaker Change: But the pumps to bring it back.
Speaker Change: [noise] from customers shows that our pretax meets real market needs and it's because our strategy in this area.
Speaker Change: We're also focused on product innovation, we have.
Speaker Change: Our robust pipeline of additional health and wellness towards that.
Speaker Change: And in fact, the Seaway economy buckets. This shows our commitment to carefully testing and they expect a spending successful offering.
Peng Li: Additionally, we are in the early stages of testing our offline service strategy. We are working with Beijing Nursing Home to explore integrated service models. This initiative is just the beginning, and we are following our test and scale approach. We are evaluating the results before deciding on the next steps.
Speaker Change: Additionally, we are in the early stages of testing of offline surveys the Pepsi.
Speaker Change: We are working with Beijing nursing home to plough.
Speaker Change: Integrated service models.
Taylor: This is Taylor.
Speaker Change: That's the beginning.
Speaker Change: We are following our test kind of scale approach.
Speaker Change: We are evaluating the results.
Speaker Change: Deciding on the.
Speaker Change: Next steps.
Peng Li: Let me also update you on our travel study program. We recently launched a new membership offering. The 2025 VIP member card, best at $355. This card comes with several benefits, including discounts on travel study products. Companion Tickets option. Station Pickup Services, Travel Planning Assistance, and Quality Tips. We are keeping a close eye on how this program performs as we explore its potential for growth. Our approach remains consistent. Following our discipline on the time-standard scale methodology, we carefully explore new initiatives, making sure they fit the market before we invest heavily. When we consider new initiatives, we look at many factors, such as initial cost.
Speaker Change: Let me also update you on our travels study program.
Speaker Change: We recently launched our new membership offering.
Speaker Change: The 'twenty 'twenty Bioware P Lambert caught.
Speaker Change: That's to add to our 300.
Speaker Change: 55.
Speaker Change: This car that comes from our customer base.
Speaker Change: Real benefits, including this call travel study products.
Speaker Change: Companion tickets option.
Speaker Change: Station pickup somebody says travel planning is his tennis and the quality.
Speaker Change: Yes.
Speaker Change: We are keeping a close eye on how this program performs as we explore its potential.
Speaker Change: Potential for growth.
Speaker Change: Our approach remains consistent.
Speaker Change: Following our disciplined test status scale, a methodology, we carefully explore new initiatives and.
Speaker Change: Making sure the fit the luggage before they invest heavily.
Speaker Change: Isn't it may cause either new initiative as we look at many factors such as initial costs.
Peng Li: expect returns, how we align with our strengths and impact on our overall cash flow. This balanced method, along with our strong financial position, allow us to purchase various opportunities.
Speaker Change: It's back to returns.
Speaker Change: We are aligned with our strategy our strategy is and the impact on our overall cash flow.
Speaker Change: Hispanics to start.
Speaker Change: Along with our strong financial position.
Speaker Change: Lala to purchase.
Speaker Change: Whereas the opportunities.
Peng Li: Looking ahead, we stay focused on our balanced approach to business development. Our journey from being an online learning leader to exploring many growth paths shows our ability to adapt and evolve successfully. With the right strategy, the right team, and our strong financial strength, we are confident in finding and seizing significant opportunities across different sectors. In today's rapidly changing environment, we are well prepared to remain agile, responsive, and disciplined as we approach new market opportunities. We look forward to updating you on our progress in the coming quarter. Thank you for your attention.
Speaker Change: Looking ahead.
Speaker Change: We stayed focused on our balanced approach to business development, our journey from being an online learning either who exploring many goes past this shows our ability to adapt and evolve.
Speaker Change: All are successfully whereas the rest strategy the right team and our strong financial strengths. We are confident in funding and the seating are significant opportunities across deeper in the sector.
Speaker Change: In today's rapidly changing environment.
Speaker Change: We are well prepared to remain agile.
Speaker Change: Responsive and a disciplined.
Speaker Change: As we approach new market opportunities.
Speaker Change: Look forward to updating you on our progress in the coming quarters some people for your attention.
Tim Xie: I will now turn it over to Tim for a detailed review of our financial results. Thank you, everyone. Thank you.
Tim: No correct over to Tim.
Tim: For a detailed review of our financial results. Thank you Angela.
Tim: Thank you.
Tim Xie: Before I go into the details of our financial results, please know that all amounts are in RMB terms. Data reporting period is the second quarter of fiscal year 2025, ending on June 30, 2025. And that, in addition to gap measures, we will also be discussing non-gap measures to provide greater clarity on the trends in our actual operations. For the second quarter of fiscal year 2025, our total revenues were $726.6 million, representing a 25.9% decrease year-over-year. This reflects our deliberate approach to business development as we transition from traffic-driven growth to high-quality growth. Among our revenues, individual online learning services generated revenues of $601.3 million, accounting for 82.7% of total revenues.
Speaker Change: I go into the details of a former financial results. Please note that all amounts are your RMB terms.
Speaker Change: This reporting period, the second quarter of fiscal year, 'twenty 'twenty fun Andy.
Speaker Change: Andy on June 32000, Twenty's fine.
Speaker Change: And that's in addition to.
Speaker Change: The matters, we will also be discussing non-GAAP measures to provide greater clarity on the trends in our actual operations.
Speaker Change: For the second quarter of fiscal year 2025.
Our total revenues were 726 6 million.
Speaker Change: Representing a 25, 9% decrease year over year.
Speaker Change: It reflects our deliberate approach to business development.
Speaker Change: As we transition from traffic driven grows two high quality high quality growth.
Speaker Change: Well my our revenues you do we do online learning services generated revenues of 601.3 million accounting for 82.7% of total revenue.
Tim Xie: This business line contributes to operate effectively, generating steady cash flow that supports our strategic initiatives. Our gross billing from individual online learning services was $546.2 million. showing a decline of 42.2% year-over-year, which we view as a natural progression during this strategic transformation of our product mix. Revenues from enterprise services were $55.7 million, a change of 3.4% from a year ago and representing 7.7% of total revenues. This shift reflects a change in existing customers' demands. Revenues from our consumer business increased to RMB64.5 million in the second quarter of fiscal year 2025, representing a 39.3% 0% increase from RMB 46.4 million in the second quarter of fiscal year 2024.
Speaker Change: This business lung contributes to operate effectively generating steady cash flow that supports our strategy initiatives, our gross billing from individual online learning services, well $546 2 million.
Speaker Change: So we have defined a 42, 2% year over year, which we view as a natural progression. During these times a deep transformation of our product mix.
Speaker Change: Revenue from Enterprise services were $55 7 million returns of three 4% from a year ago.
Speaker Change: And representing seven points, 7% of total revenues.
Speaker Change: Shaped with lots of changed your existing customers demand.
Speaker Change: Revenue from our consumer business increased to RMB $64 5 million in the second quarter of fiscal year 2025.
Speaker Change: Representing a.
Speaker Change: 39 point.
Speaker Change: They're all persons increased from RMB.
Speaker Change: Six 4 million in the second quarter of fiscal year 'twenty to 'twenty four.
Tim Xie: This growth aligns with our expansion into valeness products with a focus on the silver economy market. Gross profit for the quarter was $6.4 million, with a gross margin of 83.1%, compared to 85.2% in the same period last year. This margin change reflects our strategic shift towards more product-focused offerings, which naturally carry a different cost structure.
Speaker Change: This growth along with our expansion into various products with a focus on the theory economy market.
Speaker Change: Gross profit for the quarter.
Speaker Change: 041 million with a gross margin of 83, 1% compared to 85 pounds, 2% in the same period last year.
Speaker Change: This margin change reflects our.
Speaker Change: Wanted to shift towards more product focused offerings, which naturally kind of a different corporate structure.
Tim Xie: on the operational front. We maintain disciplined cost management while investing in our strategic initiatives. Total operating expenses were $465.9 million, a decrease of 36.5% from $733.2 million in the same period last year. To break this down, sales and marketing expenses decreased by 38.1% to $407.0 million, primarily due to optimized marketing spend and improved Operational Efficiency. As a percentage of total revenue, non-gap sales and marketing expenses, which exclude share-based competition, decreased to 55.9% from 68.6% a year ago. Research and development expenses declined by 30.9% to 28.4 million, reflecting our focused approach to product development. As a percentage of total revenue, non-GAAP R&D expenses, which exclude share-based compensation, decreased to 3.8% from 4% a year ago.
Speaker Change: On the operational front.
Speaker Change: We maintained disciplined cost management.
Speaker Change: S T hours trying to seek initiatives.
Speaker Change: Total operating expenses well.
Speaker Change: 406, $65 9 million a decrease of 36, 5% from 733 points to Lilly in the <unk>.
Speaker Change: I'm here with last year.
Speaker Change: To break this down sales and marketing expenses decreased by.
Speaker Change: 38.1% to 407.0 million, primarily due to optimize marketing spend and improved.
Speaker Change: Operational efficiency.
Speaker Change: As a percentage of total revenue non-GAAP sales and marketing expenses, which excludes share based compensation decreased to 255.9% from 68, 6% a year ago.
Speaker Change: Research and development expenses declined by 3.9% to 8.4 million, reflecting our focused approach to product development.
Speaker Change: Percentage of total revenue non-GAAP, R&D expenses, which exclude share based compensation decreased to three 8% from 4% a year ago.
Tim Xie: General and administrative expenses decreased by 12.9% to $30.5 million, mainly due to a decline in share-based compensation expenses. As a percentage of total revenue, non-GAAP G&A expenses, which exclude share-based compensation, is 3.9% compared to 2.8% a year ago. We achieved a net income of $126.8 million, representing a net margin of 17.4%. This strong bottom-line performance demonstrates our ability to optimize operations while selectively investing in promising opportunities. Our adjusted net income, which excludes share-based compensation, was $132.0 million, representing a healthy adjusted net margin of 18.2%. Basic and Diluted Net Income Per Share were 0.78 and 0.77.
Speaker Change: General and administrative expenses decreased by 12, 9% to 35 million.
Speaker Change: Mainly due to a decline in your share based compensation expenses.
Speaker Change: As a percentage of total revenue non-GAAP G&A expenses, which exclude.
Speaker Change: Share based compensation is three 9% compared to two 8% a year ago.
Speaker Change: We achieved a net income of 126 8 million reps.
Speaker Change: Representing a net margin of 17, 4%.
Speaker Change: This girl and bottom line performance demonstrates our ability to optimize operations well selectively investing in promising opportunities.
Speaker Change: Our drafting that income will exclude <unk>.
Speaker Change: Share based compensation.
Speaker Change: 132.0 million, representing a healthy adjusted net margin of.
Speaker Change: 818.2%.
Basic and diluted net income per share with 0.7 to eight and there no pun 77.
Tim Xie: respectively during the quarter. Adjusted basic and diluted net income per share were 0.81 and 0.80 respectively during the quarter.
Speaker Change: Respectively during the quarter.
Speaker Change: Adjusted basic and diluted net income per share was zero point 81, and thereupon 80, respectively during the quarter.
Tim Xie: regarding our balance sheet position as of December 31st, 2024. We strengthen our cash position to $1,213.2 million in cash and cash equivalents, restricted cash, and short-term investments. representing an increase of $186.9 million from $1,000 of 26.3 million as of June 30, 2024. This enhanced liquidity provides us with significant flexibility to invest in promising areas while maintaining financial discipline. Looking ahead, our strengthened cash position and solid operational base give us confidence in our execution capability. By diversifying our streams across multiple business lines, we are strategically positioning ourselves to navigate market uncertainties and clinical challenges.
Speaker Change: Regarding our balance sheet position.
Speaker Change: December 31st.
Speaker Change: 24.
We strengthened our cash position to one.
Speaker Change: One.
Speaker Change: <unk> thousand 213.82 million in cash and cash equivalents restricted cash and short term investments.
Speaker Change: Representing an increase of 186 9 million from 1000, okay.
Speaker Change: Tons at 6.3 million as of June 32024.
Speaker Change: Hum liquidity provides us with significant flexibility to invest in promising areas, while maintaining financial discipline.
Speaker Change: Looking ahead, our strengthened cash position and solid operational base give us confidence in our execution capability.
Speaker Change: But that diversifying our two streams across multiple business lines.
Speaker Change: Strategically positioning ourselves to navigate market uncertainties and clinic.
Speaker Change: Clinical collegial.
Speaker Change: Is.
Tim Xie: That concludes my prepared remarks.
Speaker Change: That concludes my prepared remarks, operator, let's open up the call for questions. Thank you.
Operator: Operator, let's open up the call for questions. Thank you.
Speaker Change: Thank you.
Operator: To begin the question and answer session, to ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys.
Speaker Change: We will now begin the question and answer session.
Speaker Change: To ask a question you May press Star then one on your telephone keypad.
Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys.
Operator: If at any time your question has been addressed, you would like to withdraw your question, please press star then 2.
Speaker Change: In fact anytime your question has been addressed.
Speaker Change: Your question please.
Chris Schott: Chris Schott.
Operator: When asking a question in Chinese, please translate your question in English for the convenience of everyone on the call. Please ask one question at a time.
Chris Schott: When asking a question in Chinese restaurants layer to your question in English.
Chris Schott: So for everyone on the call.
Chris Schott: Please ask one question.
Operator: At this time, we will pause momentarily to assemble a roster.
Chris Schott: At this time.
Chris Schott: Yes.
Chris Schott: Oscar.
Michael Kim: Our first question comes from Michael Kim from Zach Small Cap Research. Great, good morning or good evening, everyone. Thanks for taking my questions.
Chris Schott: Our first question comes from Mike.
Chris Schott: Kim from Zacks small cap research.
Speaker Change: Great Good morning, or good evening, everyone. Thanks for taking my questions.
Michael Kim: Just first, as you look across the online education platform, Any sense of how much the Silver demographic currently accounts for in terms of the existing user base? And then just looking beyond, continuing to realign the course catalog, obviously with a focus on seniors, just wondering if you could flesh out some specific plans to leverage those clients to really drive accelerating sales of related products and services. Thanks.
Speaker Change: First as you look across the online education platform.
Speaker Change: Any sense of how much the silver demographic currently accounts for in terms of the existing user base.
Speaker Change: And then.
Just looking beyond continuing to realign the course catalog with obviously with a focus on seniors just wondering if you could.
Speaker Change: Flesh out some specific plans to leverage those clients to really drive accelerating sales of.
Speaker Change: Related our products and services.
Peng Li: Okay, Michael, thank you for your question.
Michael: Okay Michael's.
Michael: Christian I will answer in Chinese on Alere, we'll translate it for me.
Peng Li: I will answer in Chinese and Leah will translate for me. Currently, the group of people over the age of 70 and over is the main user of our platform. And it is still growing steadily.
Michael: Oh Channel partners you have.
Speaker Change: Our insurance.
Speaker Change: You will still see some uptick of changing the initial well mentioned another caller I'd say half of it.
Yeah.
Peng Li: First of all, the Silver demographic, people aged 60 and above, is an important and growing user group on our platform. In order to better serve the needs of such a group, we have made appropriate adjustments to our course. The focus is on health and lifestyle, which is a course for the elderly. At the same time, we also provide healthy and nutritious food for this group of people. To better serve them, we have updated our course catalog to include health and lifestyle We're also offering health and wellness projects tailored to their needs. In terms of promoting silver economy products and services, our strategy includes launching consumer products related to the content of the course, special leisure services, and so on, to further enhance user-friendliness and income sources.
Speaker Change: First of all just silver Democratic demographic people, aged 60, and above is an important and growing user groups our platform.
Speaker Change: So even though the food.
Speaker Change: Sure well as you well know the coach and the Xiaomi. So let's say on the children don't yet not switch all our joint Congress of Usher.
Speaker Change: If you don't mind, Michelle long in the coach Hawk.
Speaker Change: Torture, a way to go to ensure she also of course you show the Jim called out suddenly the shipping.
Speaker Change: To better serve them, we have updated our course catalog to include health and lifestyle portion specifically for seniors, we're also offering health and wellness products tailored to their needs.
Don: Now over to Don.
Speaker Change: In fact, India, they're telling me it looks the water permit a woman that's totally in our alcohol to children coach on there or someone on the shelf, which I'm sure you'll tell us the Joseph a.
Don:
Don: For non traditional neocon, yeah sure sure yeah for sure.
Peng Li: At the same time, we will also promote higher-value product sales To draft the sales of Silver economy products and services, our strategy includes launching consumer products related to our courses and offering specialized study tours so that This will enhance user engagement and create new revenue opportunities. Additionally, we will also focus on crowdselling and private traffic domain operations. to promote higher value products. In addition, we also promote the interaction and popularity of the silver community through community building, member planning, and strategic cooperation of silver economy brands. In this way, we can further promote the growth of product and service sales.
Don: The hydrogel on Tongo jeopardize social but do you like it we don't condone torture the easier time in the shuttle.
Don: Two draft themselves all still very economy projects and services. Our strategy includes launching consumer projects related to travel courses and offering specialized got it towards services digitally how user engagement and create new revenue opportunities occasionally will also focus on cross.
Speaker Change: Sally and private traffic demand creation to promote higher value products.
Speaker Change: Oh do you want to know on the Hyatt Twinkle Shan Shan Shan suggest sure Oh, Yeah. In Q4, I know you talked since you've shipped either if you're trying to puzzle, that's Fujian <unk> orange and the who don't hook homepage humble.
Speaker Change: Del Tin for the Twitter on champion for the Sullivan.
Peng Li: Through the above measures, we believe that we can continue to grow in the field of silver economy.
Speaker Change: That's why you saw that that's for sure well Michelle Yeah mangoes.
Speaker Change: She is telling you to go Tricia doesn't.
Peng Li: Furthermore, we plan to encourage in-person community. set up and implement membership programs and establish strategic partnerships with Silver Economy Brands. This will improve user interaction and encourage word-of-mouth leading to further... Through these efforts, we are confident that we can achieve lasting success in the silver economy. Okay, that's all. Thank you. Great, thanks. That's super helpful.
Speaker Change: Furthermore, we plan to encourage increased and community engagement.
Speaker Change: Employment.
Speaker Change: Does that have an injury.
Speaker Change: Membership program and establish strategic partnerships with silver economy brand. This will improve user interaction any crazy word of mouth marketing leading to further sell true through these efforts. We are confident that we can achieve lasting success in this still very economy sector.
Speaker Change: Okay. That's all thank you.
Speaker Change: Great. Thanks, that's super helpful and then.
Michael Kim: And then just as the revenue profile continues to evolve through the transition, any perspectives on maintaining profitability, specifically as it relates to the adjusted net margin, looking out over the next 12 months or so?
Speaker Change: Just as the revenue profile continues to.
Speaker Change: Evolve through through the transition any perspectives on.
Speaker Change: Maintaining profitability specifically as it relates to the the adjusted.
Speaker Change: Net margin.
Speaker Change: Looking out over the next 12 months or so.
Peng Li: Okay, I'll take this one. Thank you, Michael, for your question. We are evolving and expanding our revenue streams, and particularly by moving beyond adult online learning services into new areas, while keeping a strong focus on the bottom line. I think in the coming 12 months, we expect maybe some short-term investments and restructuring costs as part of our growth strategy. However, we are confident that our diverse approach will support long-term profitability. Introducing new business segments and innovative offerings may require significant resources at first. But it will still help us leverage economies of scale, reduce operational risk, and enhance margin sustainability.
Speaker Change: Oh can I take this one.
Michael: Thank you Michael for your question.
Michael: We are evolving and expanding our revenue streams and particularly.
Michael: By moving beyond the downturn on the learning services into new areas now are getting.
Michael: Keeping a strong focus on the bottom line.
Michael: I think in the coming 12 months is we expect some maybe some short term investments on the restructuring costs as part of our growth strategy.
Michael: However, we are confident that our diverse approach will support long term profitability.
Michael: Introducing new business documents and innovative offerings.
Michael: They require significant resources at first.
Michael: But they do have a slot.
Michael: Rich economies of scale reduce operational risk and the home margin sustainability.
Peng Li: Furthermore, we are taking a disciplined approach to managing costs. and expenses. We are prioritizing investments that have the potential to deliver high returns while also optimizing our existing resources for operational efficiency. We are also closely monitoring each business unit's performance to balance growth with maintaining our margins. Regarding adjusting net margin, we expect some volatility during the transition phase, but we will continue to stay aligned with our profitability targets. Our focus is on stabilizing margins as the new segments mature. We aim to balance strategic investments in growth with operational excellence, ensuring that profitability remains strong as our revenue profit evolves.
Michael: Furthermore, we are taking a disciplined approach to managing costs.
Michael: Our expenses.
Michael: We're prioritizing.
Michael: Men that have the potential to.
Michael: To deliver high returns, while also optimizing our existing resources for operational efficiency.
Michael: We are also closely monitoring each business unit's performance.
Michael: Is to balance growth with maintaining our margin.
Michael: Regarding addressing that margin we.
Michael: We expect some volatility during the transition phase, but the video continued to stay aligned with our profitability targets.
Michael: Food because he's hum.
Michael: Stabilizing our margins as the new segments mature.
Michael: Aimed to balance trying to seek investments in growth.
Michael: Excellence, ensuring that profitability.
Michael: <unk> remains strong as our revenue profit evolves.
Peng Li: We remain confident in our ability to adapt to the changing landscape and the rapidly changing environment and to maintain strong financial performance, even during times of transformation. I think this view cost us some time, but I think in future, we still have, based on our solid business model, we still have a very bright future in the near term.
Michael: We remain confident in our ability to adapt to the changing landscape.
Michael: The rapidly changing environment and to maintain strong financial performance, even during times of transformation I think the this view.
Michael: For some time, but I think the future with you are based on our solid business model, we still have a very bright future in the in the near term.
Michael Kim: Thank you. Got it.
Michael: Thank you.
Michael: Got it thanks for taking my questions.
Operator: Thanks for taking my question.
Michael: Thank you.
Michael: This concludes our question and answer session.
Speaker Change: I would like to turn the conference back over to the management for any closing remarks.
Operator: 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.
Speaker Change: Thank you again for joining our call today. If you have any further questions. Please feel free to contact us or suddenly and request through our IR website. We look forward to speaking with everybody now call have a good day.
Operator: We look forward to speaking with everyone in our next call. Have a good day. OK, thank you. Thank you.
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Speaker Change: France has now concluded.
Speaker Change: You for attending today's presentation you may now.
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Operator: Mighty Bees THE END Copyright© OSHO International Foundation Life is Still Going On Presents © BF-WATCH TV 2021 © BF-WATCH TV 2021 Thanks For Watching End Thank you for watching.
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Operator: © 2016 The Bulletproof Executive Normal posting Tom Washington