ATA Creativity Global (AACG) 2022 Q4 法說會逐字稿

Greetings. Welcome to ATA Creativity Global's Fourth Quarter and Year-End 2022 Financial Results. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to Alice of the Equity Group. Thank you. You may begin.

問候。歡迎閱讀 ATA Creativity Global 的 2022 年第四季度和年終財務業績。 （操作員說明）請注意，正在錄製此會議。我現在將會議轉交給 Equity Group 的 Alice。謝謝。你可以開始了。

Thank you, operator, and hello, everyone. Thank you for joining us. The press release announcing ATA Creativity Global's or ACG's results for the fourth quarter and year ended December 31, 2022, is available at the IR section of the company's website at www.atai.net.cn. As part of this conference call, the company has an accompanying slide presentation available on its website. A replay of this broadcast will also be made available at ACG's website for the next 90 days. Before we get started, I would like to remind everyone that this conference call and any accompanying information discussed herein contain certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995.

謝謝接線員，大家好。感謝您加入我們。公佈 ATA Creativity Global 或 ACG 截至 2022 年 12 月 31 日的第四季度和年度業績的新聞稿可在公司網站 www.atai.net.cn 的 IR 部分查閱。作為此次電話會議的一部分，該公司在其網站上提供了隨附的幻燈片演示。在接下來的 90 天內，此廣播的重播也將在 ACG 的網站上提供。在我們開始之前，我想提醒大家，本次電話會議和此處討論的任何隨附信息包含某些前瞻性陳述，這些陳述符合 1995 年《私人證券訴訟改革法案》安全港條款的含義。

These forward-looking statements can be identified by terms such as anticipate, believe, could, estimate, expect, forecast, future, intend, look forward to, outlook, plans, should, will, and similar terms and include, among other things, statements regarding ACG's future growth and results of operations, ACG's plans for mergers and acquisitions generally, ACG's growth strategy, anticipated growth prospects and subsequent business activities, market demand for and market acceptance and competitiveness of ACG's portfolio training program and other education services, the impact of the COVID-19 pandemic on ACG and its operations, and ACG's plan and anticipated benefits of the measures implemented in response to the COV19 pandemic.

這些前瞻性陳述可以通過諸如預期、相信、可能、估計、預期、預測、未來、打算、期待、展望、計劃、應該、將和類似術語等術語來識別，包括，除其他事項外，關於 ACG 未來增長和經營業績的陳述、ACG 的一般併購計劃、ACG 的增長戰略、預期增長前景和後續業務活動、ACG 投資組合培訓計劃和其他教育服務的市場需求和市場接受度以及競爭力、影響COVID-19 大流行對 ACG 及其運營的影響，以及 ACG 的計劃和為應對 COV19 大流行而實施的措施的預期收益。

Although the company believes that the expectations reflected in its forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove correct. Information about risks associated with investing in ACG is included in its filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision.

儘管公司認為其前瞻性陳述中反映的預期在今天是合理的，但這些陳述存在風險和不確定性，可能導致實際結果與預期結果大相徑庭。無法保證這些預期會被證明是正確的。有關與投資 ACG 相關的風險的信息包含在其提交給美國證券交易委員會的文件中，我們鼓勵您在做出投資決定之前先查看這些信息。

The company does not assume any obligation to update any forward-looking statements as a result of new information. future events, changes in market conditions or otherwise, except as required by law. Regarding the disclaimer language, I would also like to refer you to Slide 2 of the conference call presentation for further information. All U.S. dollars amounts announced in this conference call relating to financial results for fourth quarter and year ended December 31, 2022, are converted from RMB using an exchange rate of RMB 6.8972 to USD 1. The noon buying rate as of December 31, 2022. All historical conversions are accurate as of the time reported, unless otherwise noted. The company reports its financial results under U.S. GAAP in RMB, and all percentages calculated in the presentation are based on RMB unless otherwise noted.

公司不承擔因新信息而更新任何前瞻性陳述的任何義務。未來事件、市場條件的變化或其他情況，法律要求的除外。關於免責聲明語言，我還想請您參閱電話會議演示文稿的幻燈片 2 以了解更多信息。本次電話會議中公佈的與截至 2022 年 12 月 31 日的第四季度和年度財務業績相關的所有美元金額均使用人民幣 6.8972 元兌 1 美元的匯率從人民幣換算為截至 2022 年 12 月 31 日的午間買入匯率。除非另有說明，否則所有歷史轉換在報告時間都是準確的。公司根據美國公認會計原則以人民幣報告其財務業績，除非另有說明，否則所有在演示文稿中計算的百分比均以人民幣為基礎。

For those of you following along with the company presentation, there is an overview of the company on Slide 3. In addition, we are more than happy to take investor questions during today's Q&A session or via e-mail to the company. If you wish to ask questions, you can send your questions to the e-mail address azhang@equityny.com. And please specify whether you would like to have your name read during the Q&A session.

對於那些跟隨公司介紹的人，幻燈片 3 上有公司的概述。此外，我們非常樂意在今天的問答環節或通過電子郵件向公司回答投資者的問題。如果您想提問，可以將您的問題發送至郵箱：azhang@equityny.com。請說明您是否希望在問答環節中朗讀您的名字。

On today's call, the company's CFO, Mr. Ruobai Sima, will provide a brief overview of operating and financial highlights for the fourth quarter and full year 2022. As Chairman and CEO, Mr. Kevin Ma is unable to be here today. Mr. Sima will join President, Mr. Jun Zhang, in providing an update of the company's outlook and long-term growth strategy before opening the floor for questions. With that, I'll turn the call over to ACG's CFO, Mr. Ruobai Sima. Please go ahead, Mr. Sima.

在今天的電話會議上，公司首席財務官司馬若白先生將簡要概述第四季度和 2022 年全年的運營和財務亮點。作為董事長兼首席執行官，馬雲先生今天無法出席。在開始提問之前，司馬先生將與總裁張軍先生一起介紹公司的最新前景和長期增長戰略。有了這個，我將把電話轉給 ACG 的首席財務官司馬若白先生。請繼續，司馬先生。

Thank you, Alice, and welcome, everyone. Good evening to those in America. We appreciate everyone's time. Certainly, our students remain our top priority in 2022, and we were found of the continued resilience of both our students and teaching staff throughout the year, given unpredictable ongoing pandemic environment. Despite our core portfolio training business being impacted by periodic lockdown in some of our key cities in response to local COVID-19 resurgence. We were pleased to see stable demand of those programs and increased demand for research-based learning programs, overseas study counseling and other educational services. During fourth quarter 2022, we achieved an 8.2% increase in total revenue to RMB 78.5 million, which contributed to the positive bottom line result for the period.

謝謝你，愛麗絲，歡迎大家。晚上好那些在美國的人。我們感謝大家的時間。當然，我們的學生在 2022 年仍然是我們的重中之重，鑑於不可預測的持續大流行環境，我們發現我們的學生和教職員工全年都保持著韌性。儘管我們的核心投資組合培訓業務受到我們一些主要城市的定期封鎖的影響，以應對當地 COVID-19 的複蘇。我們很高興看到這些項目的需求穩定，對研究型學習項目、海外留學諮詢和其他教育服務的需求增加。 2022 年第四季度，我們的總收入增長了 8.2%，達到人民幣 7,850 萬元，這為該期間的盈利做出了積極貢獻。

Net income attributable to ACG of RMB 2 million. Total revenue saw a modest 2.3% increase for full year 2022, which was primarily due to increased contributions from other educational services and portfolio training services, excluding the onetime RMB 33.5 million in investment gain from the disposal of our K-12 business recognized in fiscal year 2021, with significantly narrowed losses year-over-year. Total student enrollment for fourth quarter 2022 was 908 compared to 1,052 in the prior year period. Keep in mind, the 908, the number of enrolled students in the foreign language training service, which primarily operated under an entity that ACG has consolidated those in third quarter '22. Excluding these 167 students in the prior year period, total enrollment increased year-over-year. Of the 908 students, 574 were enrolled in our portfolio training program compared to 569 students in the prior year period.

歸屬於ACG的淨利潤為人民幣200萬元。 2022 年全年總收入溫和增長 2.3%，這主要是由於其他教育服務和組合培訓服務的貢獻增加，不包括在財政年度確認的出售 K-12 業務的一次性投資收益人民幣 3350 萬元2021年，虧損同比大幅收窄。 2022 年第四季度的學生總入學人數為 908 人，而去年同期為 1,052 人。請記住，908 是外語培訓服務的註冊學生人數，該服務主要在 ACG 合併了 22 年第三季度的實體下運營。不包括去年同期的這 167 名學生，總入學人數同比增加。在 908 名學生中，有 574 人參加了我們的投資組合培訓計劃，而去年同期為 569 人。

We were pleased to see a continued shift in credit hours delivered from time-based programs to project-based programs. This project-based credit hours increased 31.9% year-over-year, accounting for nearly 2/3 of total credit hours delivered during the quarter. We have continued to confidently shift students towards a more flexible project-based program, designed to be tailored to building needs and potentially with a higher unit price, portfolio training program revenue increased to RMB 57.8 million in the fourth quarter of 2022 compared to RMB 54.2 million in the prior year period. With that, I'd like to move to financials for the fourth quarter and full year 2022. Total net revenue for the fourth quarter 2022 increased 8.2% to RMB 78.5 million from RMB 72.6 million in the fourth quarter of 2021.

我們很高興看到學分持續從基於時間的課程轉變為基於項目的課程。這種基於項目的學分同比增長 31.9%，佔本季度交付的總學分的近 2/3。我們繼續自信地將學生轉向更靈活的基於項目的計劃，該計劃旨在根據建築需求量身定制，並且可能具有更高的單價，投資組合培訓計劃收入在 2022 年第四季度增至 5780 萬元人民幣，而 2022 年第四季度為 54.2 元人民幣萬在去年同期。說到這裡，我想談談 2022 年第四季度和全年的財務狀況。2022 年第四季度的總淨收入從 2021 年第四季度的 7260 萬元人民幣增長 8.2% 至 7850 萬元人民幣。

It was primarily driven by increased contributions from portfolio training services and other educational services, which is related to services delivery for new cooperation projects with schools and training organizations. Revenues from portfolio training services represented approximately 73.6% of total net revenue, during the period. Gross margin was 60.6% during fourth quarter 2022 compared to 62.8% in the prior year period.

這主要是由於組合培訓服務和其他教育服務的貢獻增加，這與為學校和培訓機構的新合作項目提供服務有關。在此期間，組合培訓服務的收入約佔總淨收入的 73.6%。 2022 年第四季度的毛利率為 60.6%，而去年同期為 62.8%。

The gross margin decrease was primarily a result of increased cost of service related to higher compensation expenses for ACG's teaching staff as it become more engaged in ACG's international management process to enhance the efficiency and quality of service delivery as well as help drive sales and business engagement. Net income attributable ACG was RMB 2 million compared to net loss attributable to ACG of RMB 2.5 million in the prior year period.

毛利率下降的主要原因是服務成本增加，因為 ACG 的教學人員更多地參與 ACG 的國際管理流程，以提高服務交付的效率和質量，並幫助推動銷售和業務參與，因此其薪酬費用增加. ACG 應占淨利潤為 200 萬元人民幣，而去年同期為 ACG 應占淨虧損 250 萬元人民幣。

Turning to the full year of 2022 results, net revenue was RMB 206.8 million, up 2.3% from RMB 202.2 million in 2021. This increase was driven primarily by increased revenue contributions from other educational services, which is mainly related to services delivered for new cooperation project with schools and training organizations and portfolio training services, as noted earlier. Gross margin was 49.6% from 51.8% in the prior year. Net loss attributable to ACG was RMB 47.9 million compared to net loss of RMB 33.6 million. It was primarily due to RMB 33.5 million investment gains related to disposal of the K-12 education assessment business in the prior-year period, which was offset by decreased general and administrative expenses of RMB 10 million related to the Tsinghua University funding support paid in the prior year period, as well at RMB 6 million impairment loss on investments recorded in the prior year period.

轉向 2022 年全年業績，淨收入為人民幣 2.068 億元，比 2021 年的人民幣 2.022 億元增長 2.3%。這一增長主要是由於其他教育服務的收入貢獻增加，這主要與為新合作提供的服務有關如前所述，與學校和培訓機構以及組合培訓服務的項目。毛利率從去年的 51.8% 上升到 49.6%。 ACG應占淨虧損為人民幣4,790萬元，而淨虧損為人民幣3,360萬元。這主要是由於上年同期處置 K-12 教育評估業務相關的投資收益人民幣 3350 萬元，被清華大學支付的資金支持相關的一般和管理費用減少人民幣 1000 萬元所抵消上年同期計提投資減值損失 600 萬元。

Going to balance sheet, we continue to be in a solid financial position with our USD 8 million in cash and cash equivalents. Working capital deficit was USD 33 million and total shareholders equity was USD 20.8 million at December 31, 2022, compared to working capital deficit of USD 30.2 million and shareholders' equity of USD 30 million respectively at December 31, 2021.

從資產負債表來看，我們的 800 萬美元現金和現金等價物繼續保持穩健的財務狀況。截至 2022 年 12 月 31 日，營運資金赤字為 3300 萬美元，股東權益總額為 2080 萬美元，而 2021 年 12 月 31 日的營運資金赤字為 3020 萬美元，股東權益總額為 3000 萬美元。

Now I turn our attention to ACG's outlook and growth strategy. Over the course of 2022, ACG remains steady fast in its commitment to helping students achieve positive outcomes. We are very pleased that our students have continued to pursue their studies with ACG, thereby demonstrating their confidence and faith in our ability to provide them with the quality programming and emotional support, they deserve their needs and for them to realize their creative value as this has been more challenging by the ongoing pandemic environment.

現在我將注意力轉向 ACG 的前景和增長戰略。在 2022 年期間，ACG 將繼續堅定地致力於幫助學生取得積極成果。我們很高興我們的學生繼續使用 ACG 繼續他們的學習，從而表明他們對我們為他們提供優質節目和情感支持的能力的信心和信念，他們應得的他們的需求並讓他們實現他們的創造價值，因為這持續的大流行環境更具挑戰性。

But I would like to recognize our teaching and support staff for their dedication to the student, regardless of whether classes are delivered in person or online. The remote class delivery platform quietly has the flexibility to change the classes delivered format overnight as necessary in recent years. This has been valuable to students and teachers during the periodic lockdown and temporary campus closure than occurred in 2022.

但我想感謝我們的教學和支持人員對學生的奉獻，無論是面對面授課還是在線授課。近年來，遠程授課平台可以根據需要悄悄地靈活改變授課形式。與 2022 年相比，這在周期性封鎖和校園臨時關閉期間對學生和教師很有價值。

Our portfolio training programs continue to see stable demand and students delivered modest revenue growth despite the impact COVID-19 continues to have on our business in 2022 because our ability to deliver stable top line results with controlling assets, we have continued to narrow losses excluding onetime items. During 2022, ACG continued to curate and launch various research-based learning program for students to enhance student's creative journey.

儘管 COVID-19 在 2022 年繼續對我們的業務產生影響，但我們的投資組合培訓計劃繼續看到穩定的需求，學生的收入增長適度，因為我們有能力通過控制資產提供穩定的收入結果，我們繼續縮小虧損，不包括一次性項目。在 2022 年期間，ACG 繼續為學生策劃和推出各種基於研究的學習計劃，以加強學生的創作之旅。

As international travel was highly restricted in China during the year, we focused our attention domestically on help programs such as environmental protection in Design Camp held in Xidao, Hainan province; the ceramics arts and exclusive help program in Jingdezhen; and interest training class for the 2022 UWEE International Art Exhibition.

由於這一年國際旅行在中國受到嚴格限制，我們將注意力集中在國內的幫助項目上，例如在海南省西島舉辦的設計營中的環境保護；景德鎮陶瓷藝術專屬幫扶計劃； 2022年UWEE國際藝術展興趣培養班。

We also offered a process around the more contemporary topics, such as NFTs and Metaverse. All these programs were created with the idea that participating students walk away with an enhanced understanding of a particular subject matter through our real lab experience. Some of those may also result in increases that can be aided to build our portfolio.

我們還提供了圍繞更現代的主題（例如 NFT 和 Metaverse）的流程。所有這些項目的創建都是基於這樣的想法，即參與的學生通過我們的真實實驗室體驗，對特定主題有了更深入的理解。其中一些也可能導致增加，這有助於建立我們的投資組合。

We continue to serve as a trust adviser to students looking to apply to overseas college and universities, providing high-quality curriculum and hands-on experience to admission counseling services. We are thrilled to share some of the experience to admissions counseling -- sorry, we are thrilled to share some of the initial 2023 for admission results, we have heard from our students that began to receive offers from prestigious institutions, such as fashion design program at Parsons School of Design, which is known to be quite competitive.

我們繼續作為希望申請海外高校的學生的信任顧問，提供高質量的課程和實踐經驗的升學諮詢服務。我們很高興分享一些招生諮詢的經驗——抱歉，我們很高興分享一些 2023 年的初步錄取結果，我們從我們的學生那裡聽說，他們開始收到知名機構的錄取通知書，例如時裝設計課程在眾所周知競爭激烈的帕森斯設計學院。

Other schools including Rhode Island School for Design, Junior College of Arts New York University and University of Oxford. We opened the ACG International Art Foundation program center in Beijing in 2021, and I'm pleased to share that all the enrolled students at the center have started their first year in college in the U.K. We expect that the ACG's program designed for students that are able to follow the traditional high school path have played a crucial role in helping these students achieve the next step of their creative part education journey.

其他學校包括羅德島設計學院、紐約大學初級藝術學院和牛津大學。我們於 2021 年在北京開設了 ACG 國際藝術基金會項目中心，我很高興地告訴大家，該中心的所有註冊學生都已經開始了在英國大學的第一年。我們希望 ACG 的項目專為滿足以下條件的學生而設計：能夠走上傳統的高中道路，在幫助這些學生實現他們創造性教育旅程的下一步方面發揮了至關重要的作用。

We continue to believe that our growth relies on the continued investment in our institution and focused relationships with our institutional partners. I look forward in 2023, we are optimistic about the near-term outlook for our students as international travel continue to pick up and more students realize that their desire to study overseas is more possible today than perhaps it was after a couple of years. We look forward to continue to driving positive outcomes for all students. I'd like to hand it floor over to Jun Zhang, ACG's President to provide an update on our current growth initiatives. Zhang will make his remarks in mandarin, which will be followed by English translation. Jun Zhang, please go ahead.

我們仍然相信，我們的增長依賴於對我們機構的持續投資以及與機構合作夥伴的專注關係。展望 2023 年，我們對學生的近期前景持樂觀態度，因為國際旅行繼續增加，而且越來越多的學生意識到，與幾年後相比，他們今天更有可能出國留學。我們期待繼續為所有學生帶來積極成果。我想請 ACG 總裁張軍介紹我們當前的增長計劃。張將用普通話發表講話，隨後將進行英文翻譯。張軍，請繼續。

Thank you, Sima. (foreign language)

謝謝你，司馬。 （外語）

[Interpreted] Thank you, Mr. Sima. Our students have demonstrated a great deal of dedication and determination in the pursuit of art study. And as the trusted corner along this journey, ACG has strived to ensure that our offerings remain first grade, educational and relevant to real-world experience. In the first quarter of 2023, one of our future programs is the Open Hack Project designed for Shanghai Fashion Week 2023. During this 5-day long project, participating students will create branding proposals, start a fashion look book from scratch and have an opportunity to interview fashion icons and influencers. Students could also win VIP access to Shanghai Fashion Week 2023, which took place this month. Additionally, as this project is designed for students who are looking to add highlights to their resume, not only would gain first-hand experience, working as part of a professional Fashion Week team, but also complete the project instructions letters and internship certificates.

【解讀】謝謝司馬先生。我們的學生在追求藝術學習的過程中表現出了極大的奉獻精神和決心。作為這一旅程中值得信賴的角落，ACG 一直努力確保我們的產品保持一流、具有教育意義並與現實世界的體驗相關。 2023 年第一季度，我們未來的項目之一是為 2023 年上海時裝週設計的 Open Hack 項目。在這個為期 5 天的項目中，參與的學生將創建品牌提案，從頭開始製作時尚造型書，並有機會採訪時尚偶像和影響者。學生還可以獲得本月舉行的 2023 年上海時裝週的貴賓通道。此外，由於該項目專為希望為簡歷增添亮點的學生而設計，他們不僅可以獲得第一手經驗，作為專業時裝週團隊的一員工作，還可以完成項目說明函和實習證書。

ACG initially introduced online research-based learning programs during the COVID-19 pandemic. We were able to do so primarily, thanks to a strong partnership base with international education providers, including our colleges and universities. And these programs have been well received by participating students. As international travel was now feasible for many students over the past couple of years, we developed programs to encourage students to explore cultural heritage by visiting and cultural heritage sites in China.

ACG 最初在 COVID-19 大流行期間引入了基於研究的在線學習計劃。我們能夠做到這一點主要歸功於與包括我們的學院和大學在內的國際教育提供者建立的強大合作基礎。而這些項目也得到了參與學生的一致好評。由於過去幾年國際旅行對許多學生來說是可行的，我們開發了一些項目來鼓勵學生通過參觀中國的文化遺址來探索文化遺產。

Intangible cultural heritage is a term used by UNESCO to describe culture beyond monuments and collections of objects, as described by UNESCO intangible cultural heritage also includes traditions or living expressions inherited from our ancestors and pass it on to our descendants, such as our traditions, performing arts, social practices, videos, festive events, knowledge and practices concerning nature and the universe and all skills to produce traditional crafts. We understand how valuable this type of learning experiences are for students applying to overseas art schools.

非物質文化遺產是聯合國教科文組織用來描述紀念碑和物品收藏之外的文化的術語，正如聯合國教科文組織所描述的那樣，非物質文化遺產還包括從我們的祖先那裡繼承並傳遞給我們後代的傳統或活的表達方式，例如我們的傳統，表演藝術、社會實踐、視頻、節慶活動、有關自然和宇宙的知識和實踐以及製作傳統手工藝品的所有技能。我們明白這種學習經歷對於申請海外藝術學校的學生來說是多麼寶貴。

In 2023, we plan to continue offering these programs to our students as well as other programs to keep up with the latest trends in the arts world. Just like what we did with the Metaverse in post-pandemic era program. As international travel continues to pick up and as China has lifted zero COVID policy, we're working closely with our international partners and resuming international summer school programs for the first time since 2020. As Mr. Sima mentioned earlier, the ACG International Arts Foundation Program Center had achieved great success in its initial classes, all of whom are currently in the first year of college in the U.K.

2023 年，我們計劃繼續向我們的學生提供這些課程以及其他課程，以跟上藝術界的最新趨勢。就像我們在後疫情時代的項目中對 Metaverse 所做的一樣。隨著國際旅行的持續增加以及中國取消零 COVID 政策，我們正在與國際合作夥伴密切合作，並自 2020 年以來首次恢復國際暑期學校項目。正如司馬先生之前提到的，ACG 國際藝術基金會項目中心在其最初的班級中取得了巨大的成功，這些班級目前都在英國讀大學一年級。

We are pleased to enroll a larger class of students in 2022 and look forward to guiding them in the year ahead. We're excited about the new opportunities that the ACG International Arts Foundation Program Center has created for the student with nontraditional study path. We remain confident in our competitive position in a creative arts education industry in 2023.

我們很高興在 2022 年招收更多的學生，並期待在來年指導他們。我們很高興 ACG 國際藝術基金會項目中心為非傳統學習路徑的學生創造了新的機會。我們對 2023 年在創意藝術教育行業的競爭地位充滿信心。

We're prepared to optimize ACG's instructional resources by seeking different forms of cooperation with existing and potential academic partners in regional markets. We look forward to serving more students with diverse needs of our growing portfolio coverage. This is supported by our strong operational foundation with on-site access in various cities nationwide and first grade teaching staff, a track record of delivering positive student outcomes as well as our strong partnership base. With that, I'll turn it back over to Mr. Sima.

我們準備通過尋求與區域市場現有和潛在學術合作夥伴的不同形式的合作來優化 ACG 的教學資源。我們期待著通過我們不斷擴大的投資組合覆蓋範圍為更多有不同需求的學生提供服務。這得到了我們強大的運營基礎的支持，我們在全國各個城市都有現場訪問和一年級的教學人員，提供積極的學生成果的記錄以及我們強大的合作夥伴基礎。有了這個，我會把它轉回給司馬先生。

In closing, we are excited about the opportunities ahead of us in 2023. We remain optimistic about taking the lead in race on the runway of China's creative art education industry, and we will continue striving to become an international leader. We cannot wait to see what our students will achieve in 2023 and are committed to be the provider of new experience, valuable guidance as well as the coach along their arts study journey. With that, operator, that open up for questions.

最後，我們對2023年的機遇感到興奮。我們仍然樂觀地在中國創意藝術教育行業的跑道上領跑，我們將繼續努力成為國際領先者。我們迫不及待地想看看我們的學生在 2023 年取得的成就，並致力於成為新體驗的提供者、寶貴的指導以及他們藝術學習之旅的教練。有了這個，操作員，就可以提出問題了。

(Operator Instructions)

（操作員說明）

This will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Sima for closing comments.

我們的問答環節到此結束。我想將會議轉回給司馬先生作閉幕評論。

Thanks again to all of you for joining us. If anyone has questions for us, please feel free to reach out directly to our investor relations from the equity group. We are always available to speak to investors and look forward to speaking with you all during our next quarterly call. Thank you.

再次感謝大家加入我們。如果有人對我們有任何疑問，請隨時直接與我們的股權小組的投資者關係聯繫。我們隨時可以與投資者交談，並期待在下一個季度電話會議上與大家交談。謝謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開您的線路，感謝您的參與。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]