New Oriental Education & Technology Group Inc (EDU) 2021 Q3 法說會逐字稿

Good evening, and thank you for standing by for New Oriental's FY 2021 Third Quarter Results Earnings Conference Call.

晚上好，感謝您等待新東方 2021 財年第三季度業績電話會議。

(Operator Instructions) Today's conference is being recorded.

（操作員說明）今天的會議正在錄製中。

If you have any objections, you may disconnect at this time.

如果您有任何異議，您可以在此時斷開連接。

I'd now like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao.

我現在想把會議交給今天會議的主持人趙思思女士。

Please go ahead.

請繼續。

Okay.

好的。

Thank you.

謝謝你。

Hello, everyone, and welcome to New Oriental's Third Fiscal Quarter 2021 Earnings Conference Call.

大家好，歡迎來到新東方2021財年第三季度財報電話會議。

Our financial results for the period were released earlier today and are available on the company's website as well as on newswire services.

我們在此期間的財務業績已於今天早些時候發布，可在公司網站和新聞專線服務上查閱。

Today, you will hear from Stephen Yang, Executive President and Chief Financial Officer.

今天，您將聽到執行總裁兼首席財務官 Stephen Yang 的講話。

After his prepared remarks, Stephen and I will be available to answer your questions.

在他準備好的發言之後，斯蒂芬和我將可以回答你的問題。

Before we continue, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

在我們繼續之前，請注意今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties.

前瞻性陳述涉及固有風險和不確定性。

As such, our results may be materially different from the views expressed today.

因此，我們的結果可能與今天表達的觀點存在重大差異。

A number of potential risks and uncertainties are outlined in our public filings with the SEC.

我們向美國證券交易委員會提交的公開文件中概述了一些潛在的風險和不確定性。

New Oriental does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

除適用法律要求外，新東方不承擔更新任何前瞻性陳述的義務。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

In addition, a webcast of this conference call will be available on New Oriental's Investor Relations website at investor.neworiental.org.

此外，本次電話會議的網絡直播將在新東方的投資者關係網站investor.neworiental.org 上提供。

I will now turn the call over to Mr. Yang.

我現在把電話轉給楊先生。

Stephen, please go ahead.

斯蒂芬，請繼續。

Thank you, Sisi.

謝謝你，茜茜。

Hello, everyone, and thank you for joining us on the call.

大家好，感謝您加入我們的電話會議。

With the pandemic largely controlled in China, albeit a small wave of outbreak in the northern part of the country, our business navigated the challenges and saw strong momentum in recovery.

隨著疫情在中國基本得到控制，儘管該國北部地區爆發了小波疫情，但我們的業務克服了挑戰，看到了強勁的複蘇勢頭。

We are pleased to announce a set of financial results in the third quarter of this year that exceeds our expectation.

我們很高興地宣布今年第三季度的一系列財務業績超出了我們的預期。

Total net revenue was $1,190 million, representing a 29% increase year-over-year, which is a very encouraging reflection, affirming the business strategy that we have taken during the difficult period.

總淨收入為 11.9 億美元，同比增長 29%，這是一個非常令人鼓舞的反映，肯定了我們在困難時期採取的業務戰略。

Our key growth driver, K-12 all-subjects after-school tutoring business, achieved year-over-year revenue growth of approximately 37%.

我們的主要增長動力，K-12 全學科課外輔導業務，實現了約 37% 的同比收入增長。

Our U-Can middle school, high school all-subjects after-school tutoring business continued its momentum with a growth of approximately 35% while our POP Kids program recorded a growth of approximately 40%.

我們的 U-Can 中學、高中全科課後輔導業務繼續保持增長勢頭，增長約 35%，而我們的 POP Kids 計劃錄得約 40% 的增長。

Our overseas-related business, despite being under continued pressure due to the uncertainty of the pandemic situation and travel restrictions around the globe, showed strong resilience.

我們的海外業務儘管因疫情不確定性和全球旅行限製而持續承壓，但仍表現出強大的韌性。

Although the overseas test prep recorded revenue decrease of about 12% for the quarter, it is a result that is better than expected while the overseas consulting and study tour business recorded revenues increase of about 11% year-over-year, which is a very positive result.

雖然本季度海外備考收入下降約 12%，但好於預期，而海外諮詢和遊學業務收入同比增長約 11%，這是一個非常好的業績。積極的結果。

Our industry-leading OMO system has been our core strategy since the start of the pandemic early last year, and it has once again proved to be instrumental in this quarter.

自去年初大流行開始以來，我們行業領先的 OMO 系統一直是我們的核心戰略，並且再次證明它在本季度發揮了重要作用。

The possibility of unexpected COVID-19 outbreaks in certain parts of China means strong flexibility in migrating students between online/off-line classes is truly crucial during this challenging period, and our OMO system has been the answer to that.

中國某些地區可能爆發 COVID-19 意外爆發，這意味著在這個充滿挑戰的時期，在線/離線課程之間轉移學生的強大靈活性確實至關重要，而我們的 OMO 系統就是解決這個問題的答案。

The small wave of COVID-19 outbreaks in around 20 cities in Northern China once again highlighted the importance of OMO as they enabled us to respond swiftly and migrate the offline class to online, avoiding disruptions to student class and learning progress.

在中國北方約 20 個城市爆發的小波 COVID-19 再次凸顯了 OMO 的重要性，因為它們使我們能夠迅速做出反應並將線下課堂遷移到線上，避免對學生課堂和學習進度造成乾擾。

At the same time, in other cities where the pandemic is largely controlled, vast majority of the students migrated from the online class back to off-line learning centers.

與此同時，在其他疫情基本得到控制的城市，絕大多數學生從網課遷移迴線下學習中心。

Encouraged by its effectiveness, we have been committed to expand the reach of our OMO system and are delighted to say that we have piloted the OMO online courses in vast majority of existing cities and around 25 new surrounding satellite cities in the winter semester, attracting a promising number of new customers.

受到其有效性的鼓舞，我們一直致力於擴大 OMO 系統的覆蓋範圍，並高興地說，我們在冬季學期在絕大多數現有城市和大約 25 個新的周邊衛星城市試點了 OMO 在線課程，吸引了有希望的新客戶數量。

The OMO system effectively boost the enrollments and revenue with low customer acquisition cost and is becoming the new driver to our business growth, and it has solicited an increased contribution to the company's overall revenue this quarter.

OMO系統以較低的獲客成本有效提升了招生和收入，正在成為我們業務增長的新動力，對公司本季度整體收入的貢獻增加。

Total student enrollment in academic subjects, tutoring and test prep courses in the third fiscal quarter of 2021 increased by 43% year-over-year to approximately 2,296,800, which is in line with our expectation.

2021 年第三財季學術科目、輔導和備考課程的學生總入學人數同比增長 43% 至約 2,296,800 人，符合我們的預期。

In terms of pricing, per-program blended ASP, which is cash revenue divided by total student enrollment, increased by about 7% year-over-year in dollar terms.

在定價方面，每個項目的混合平均售價（現金收入除以學生總入學人數）按美元計算同比增長約 7%。

As for hourly blended ASP, which is GAAP revenue divided by total teaching hours, increased by 7% year-over-year and is in line with our normal price increase of about 5% to 8%.

至於每小時混合平均售價，即 GAAP 收入除以總教學時間，同比增長 7%，與我們正常的價格增長約 5% 至 8% 一致。

To provide a breakdown of hourly blended ASP, please note that U-Can classes increased by 5%, U-Can VIP increased by 1%, POP Kids increased by 4% and overseas test prep program increased by 12%, all year-over-year in RMB terms.

要提供每小時混合 ASP 的細分，請注意 U-Can 課程增加了 5%，U-Can VIP 增加了 1%，POP Kids 增加了 4%，海外備考課程增加了 12%，全年- 以人民幣計算的年份。

Now I would like to spend some time to talk about this quarter's performance across our individual business lines in detail.

現在我想花點時間詳細談談本季度我們各個業務線的表現。

When pandemic became largely under control in China, recovery momentum continued to pick up in this quarter across our business lines.

當大流行在中國基本得到控制時，本季度我們各業務線的複蘇勢頭繼續加快。

Our key revenue driver, K-12 all-subjects after-school tutoring business, achieved year-over-year revenue growth of approximately 37% in dollar terms.

我們的主要收入驅動因素，K-12 全學科課後輔導業務，按美元計算，收入同比增長約 37%。

Breaking it down, the U-Can middle school, high school business reported a revenue increase of approximately 35% in dollar terms for the quarter.

細分來看，U-Can 中學、高中業務報告本季度以美元計算的收入增長了約 35%。

Student enrollments grew approximately 56% year-over-year for the quarter.

本季度學生入學率同比增長約 56%。

Our POP Kids program delivered outstanding results, with revenue up by about 40% in dollar terms for the quarter.

我們的 POP Kids 計劃取得了出色的成果，本季度以美元計算的收入增長了約 40%。

Enrollment increased about 61% for the quarter.

本季度的入學人數增加了約 61%。

Our overseas-related business, including test prep and consulting business, showed encouraging sign of the recovery despite facing the most difficult challenges due to the cancellation of overseas exams and restriction on travel as well as the unpredictability of the pandemic situation in different parts of the world, rising student hesitance to study abroad.

儘管面臨海外考試取消、出行限制以及全國各地疫情形勢不可預測等最嚴峻挑戰，我們的海外相關業務，包括備考和諮詢業務，都呈現出令人鼓舞的複蘇跡象。世界，越來越多的學生猶豫出國留學。

The overseas test prep business recorded a revenue decrease about 12% in dollar terms for the quarter in comparison to a decrease of 29% in the last quarter while the overseas consulting -- overseas study tour business recorded revenue increase of about 11% in dollar terms year-over-year for the quarter, continuing the recovery momentum from last quarter's 6% increase.

海外備考業務本季度收入按美元計算下降約 12%，而上一季度下降 29%，而海外諮詢——海外遊學業務收入按美元計算增長約 11%本季度同比增長，延續了上一季度 6% 的增長勢頭。

And finally, VIP personalized class business recorded cash revenue increase of about 36% year-over-year for the quarter.

最後，貴賓個性化艙業務本季度現金收入同比增長約 36%。

We continue to carry out our capacity expansion this quarter as we opened 1 new offline training school in the city of Hengshui.

我們在本季度繼續擴大產能，在衡水市開設了 1 所新的線下培訓學校。

This increased the total square meters of classroom area by approximately 17% year-over-year, 7% quarter-over-quarter by the end of this quarter.

到本季度末，教室總面積同比增長約 17%，環比增長 7%。

The increase is in line with our expectation as we gradually ramp up our expansion efforts throughout this academic year to prepare us for recruiting more new students at the start of the following academic year.

這一增長符合我們的預期，因為我們在整個學年逐漸加大了擴張力度，為下一學年開始時招收更多新生做好準備。

The expansion in our offline education network has also made sure that we are fully prepared for when the pandemic is over and our service can resume with strong presence across different Chinese cities.

我們線下教育網絡的擴張也確保了我們為疫情結束做好充分準備，我們的服務可以在中國不同城市強勢恢復。

We rolled out dual-teacher class model for POP Kids program in 58 existing cities, for U-Can program in 27 existing cities.

我們在現有 58 個城市推出了 POP Kids 項目的雙師班模式，在 27 個現有城市推出了 U-Can 項目。

With satisfactory customer retention and scalability, we will continue to use this model to increase our market penetration in those markets we have tapped into.

憑藉令人滿意的客戶保留率和可擴展性，我們將繼續使用這種模式來增加我們在已開發的市場中的市場滲透率。

As the outbreak of COVID-19 has highlighted the importance and demand of online education, we have allocated more resources to this space and invested $59 million in the quarter to improve and maintain our OMO integrated education ecosystem.

隨著 COVID-19 的爆發突顯了在線教育的重要性和需求，我們在該領域分配了更多資源，並在本季度投資了 5900 萬美元，以改善和維護我們的 OMO 綜合教育生態系統。

Our success in piloting the OMO system in around 25 new satellite cities through nearby major cities this quarter is yet another testament of how the small-cost but high-return OMO business model can rapidly become one of the most far-reaching education service in China.

本季度，我們通過附近主要城市在約 25 個新衛星城市試點 OMO 系統的成功，再次證明了低成本高回報的 OMO 商業模式如何迅速成為中國影響最深遠的教育服務之一.

We're very optimistic about the growth potential of our OMO system in the next few quarters.

我們對未來幾個季度 OMO 系統的增長潛力非常樂觀。

Apart from the OMO infrastructure, we have allocated part of the resources to advanced the training programs for our teachers to enhance their online/offline integration skills in response to the growing demand.

除了 OMO 基礎設施外，我們已撥出部分資源來推進教師培訓計劃，以提高他們的線上/線下整合技能，以應對不斷增長的需求。

At the same time, we continue to upgrade our technology platforms and will broaden the usage of the online tools and content in our OMO system for all business lines throughout the whole network as well as further develop the best teaching content and courseware to cater to online/offline integrated education methods.

同時，我們將不斷升級技術平台，將OMO系統中的在線工具和內容擴大到全網所有業務線的使用範圍，進一步開發最好的教學內容和課件，以迎合在線/線下綜合教育方式。

We're glad to see that our industry-leading OMO ecosystem has not only successfully managed to cushion most of the impact of the pandemic, but we also see our customer retention rates remain stable.

我們很高興看到我們行業領先的 OMO 生態系統不僅成功地緩解了大流行的大部分影響，而且我們還看到我們的客戶保留率保持穩定。

Furthermore, it effectively boosted the enrollment, and we believe it will continue to play a huge part of the recovery of business in coming quarters.

此外，它有效地促進了入學率，我們相信它將在未來幾個季度繼續為業務復甦發揮重要作用。

To capture the huge market opportunity in online education area, Koolearn invested more resources in executing new initiatives in online K-12 after-school tutoring business since the second half of last fiscal year and added a meaningful amount of customer service representatives and marketing staff.

為抓住在線教育領域的巨大市場機遇，自上財年下半年起，酷學科技投入更多資源在在線K-12課外輔導業務上實施新舉措，並增加了大量的客戶服務代表和營銷人員。

These moves have consequently raised our spending on marketing front in this fiscal year, and our Dongfang Youbo small-sized class currently enjoys a significant first-mover advantage and stand to benefit from the increasing demand in lower-tier cities.

這些舉措因此增加了我們在本財年的營銷支出，而我們的東方優博小班目前具有顯著的先發優勢，並將受益於低線城市不斷增長的需求。

Koolearn large-sized K-12 courses are able to offer the best-in-class learning experience through the investment in upgrading the apps and online platforms, introducing new education technologies and adding more interactive features to online classes.

Koolearn 大型 K-12 課程通過投資升級應用程序和在線平台、引入新的教育技術以及為在線課程添加更多互動功能，能夠提供一流的學習體驗。

Koolearn also continued to establish teaching training centers in other locations to attract more qualified teachers and tutors and provide systematic training programs.

Koolearn還繼續在其他地方建立教學培訓中心，以吸引更多合格的教師和導師，並提供系統的培訓計劃。

A significant amount of the investment has been allocated to marketing and service enhancements in the past quarters to attract customers during the peak of the pandemic, but the spending started to normalize from this quarter as we are very cautious in identifying high-ROI marketing channels.

在過去幾個季度，大量投資已分配給營銷和服務增強，以在大流行高峰期吸引客戶，但由於我們在確定高投資回報率的營銷渠道方面非常謹慎，因此從本季度開始支出開始正常化。

We focused on improving our operational efficiency and emphasizing the word-of-mouth promotion for English programs with existing brand name advantages, with -- which will, in return, keep the average user acquisition cost at a relatively low level.

我們專注於提高運營效率，在已有品牌優勢的情況下，強調英語節目的口碑推廣，從而將平均用戶獲取成本保持在相對較低的水平。

We believe Koolearn will continue to quickly acquire new users while enhancing student retention.

我們相信 Koolearn 將繼續快速獲取新用戶，同時提高學生保留率。

Now I would like to turn the call over to Ms. Sisi Zhao.

現在我想把電話轉給趙思思女士。

Please go ahead, Sisi.

請繼續，思思。

Yes.

是的。

Now let me walk you through the key financial details for the third quarter.

現在讓我向您介紹第三季度的關鍵財務細節。

Operating cost and expenses for the quarter were USD 1,089 million, representing a 35.1% increase year-over-year.

本季度運營成本和費用為 10.89 億美元，同比增長 35.1%。

Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were USD 1,074.6 million, representing a 36.3% increase year-over-year.

本季度非美國通用會計準則運營成本和費用（不包括股權激勵費用）為 10.746 億美元，同比增長 36.3%。

Cost of revenue increased by 35.3% year-over-year to USD 539.5 million primarily due to increase in teachers' compensation for more teaching hours and higher rental costs for the increasing number of schools and learning centers in operation.

收入成本同比增長 35.3% 至 5.395 億美元，這主要是由於教師對更多教學時間的補償以及運營中越來越多的學校和學習中心的租金成本增加。

The increase in teachers' compensation would also put us in a greater position in keeping teaching talent who are the most important assets in the education industry.

教師薪酬的增加也將使我們在留住作為教育行業最重要資產的教學人才方面處於更有利的地位。

Selling and marketing expenses increased by 32% year-over-year to USD 156.1 million, represent -- primarily due to the addition of marketing staff with the aim of executing our OMO strategy to capture the new market opportunity post COVID.

銷售和營銷費用同比增長 32% 至 1.561 億美元，這主要是由於增加了營銷人員，以執行我們的 OMO 戰略以抓住 COVID 後的新市場機會。

G&A expenses for the quarter increased by 36.1% year-over-year to [USD 393.4 million] (corrected by company after the call).

本季度的 G&A 費用同比增長 36.1% 至 [3.934 億美元]（在電話會議後由公司更正）。

Non-GAAP G&A expenses, which exclude share-based compensation expenses, were USD 383.3 million, representing a 40.3% increase year-over-year.

不包括股權激勵費用的非公認會計準則 G&A 費用為 3.833 億美元，同比增長 40.3%。

Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by 17.8% year-over-year to USD 14.4 million.

分配至相關運營成本和費用的股權激勵費用總額為 1440 萬美元，同比下降 17.8%。

Operating income was USD 101.5 million, representing a 13.5% decrease year-over-year.

營業收入為 1.015 億美元，同比下降 13.5%。

Non-GAAP operating income for the quarter was USD 115.9 million, representing a 14% decrease year-over-year.

本季度非美國通用會計準則營業收入為 1.159 億美元，同比下降 14%。

Operating margin for the quarter was 8.5% compared to 12.7% in the same period of the prior fiscal year.

本季度的營業利潤率為 8.5%，而上一財年同期為 12.7%。

Non-GAAP operating margin, which excludes share-based compensation expenses, for the quarter was 9.7% compared to 14.6% in the same period of the prior fiscal year.

本季度非 GAAP 營業利潤率（不包括基於股票的薪酬費用）為 9.7%，而上一財年同期為 14.6%。

Net income attributable to New Oriental for the quarter was USD 151.3 million, representing a 9.9% increase from the same period of the prior fiscal year.

本季度歸屬於新東方的淨利潤為1.513億美元，比上一財年同期增長9.9%。

Basic and diluted earnings per ADS attributable to New Oriental were $0.09 and $0.09, respectively.

歸屬於新東方的每份 ADS 的基本和攤薄收益分別為 0.09 美元和 0.09 美元。

Non-GAAP net income attributable to New Oriental for the quarter was USD 163.2 million, representing a 9.9% increase from the same period of the prior fiscal year.

本季度歸屬於新東方的非美國通用會計準則淨利潤為 1.632 億美元，較上一財年同期增長 9.9%。

Non-GAAP basic and diluted earnings per ADS attributable to New Oriental were $0.10 and $0.10, respectively.

歸屬於新東方的非美國通用會計準則每股 ADS 基本收益和攤薄收益分別為 0.10 美元和 0.10 美元。

Net operating cash flow for the third fiscal quarter of 2021 was approximately USD 23.3 million.

2021 年第三財季的淨經營現金流約為 2330 萬美元。

Capital expenditure for the quarter were USD 105.8 million, which were primarily attributable to opening of 142 facilities and renovations at existing learning centers.

本季度的資本支出為 1.058 億美元，主要歸因於 142 處設施的啟用和現有學習中心的翻新。

Turning to the balance sheet.

轉向資產負債表。

As of February 28, 2021, New Oriental had cash and cash equivalents of USD 1,569.8 million as compared to USD 915.1 million as of May 31, 2020.

截至 2021 年 2 月 28 日，新東方的現金及現金等價物為 15.698 億美元，而截至 2020 年 5 月 31 日為 9.151 億美元。

In addition, the company had USD 1,147.8 million in term deposits, USD 3,360.7 million in short-term investments.

此外，公司定期存款11.478億美元，短期投資33.607億美元。

New Oriental's deferred revenue balance, which is cash collected from registered students for the courses and recognized proportionally as revenue as the instructions were delivered, at the end of the third fiscal quarter of fiscal year 2021 was USD 1,865.7 million, an increase of 35.7% as compared to USD 1,375 million at the end of the third quarter of fiscal year 2020.

新東方的遞延收入餘額為 18.657 億美元，即從課程註冊學生處收取的現金，並在交付指令時按比例確認為收入，截至 2021 財年第三財季末為 18.657 億美元，同比增長 35.7%。相比之下，2020 財年第三季度末為 13.75 億美元。

Now I will hand over to Stephen to walk you through our outlook and guidance.

現在，我將交給斯蒂芬來引導您了解我們的前景和指導。

Looking ahead into the next quarter of fiscal year 2021, we're more clear about the recovery trend of the company's near-term financial performance and market opportunity over the long run.

展望2021財年下一季度，我們對公司近期財務業績和長期市場機會的複蘇趨勢更加清晰。

Our strategic focus and investment approach this year is aimed at improving the product quality, increasing teachers' compensation and enhancing our industry-leading system, which fully reflects our ethos of focusing on the essence of education.

今年我們的戰略重點和投資方向是提高產品質量，增加教師薪酬，完善行業領先的體系，充分體現了我們注重教育本質的精神。

In view of the market competition and opportunity to take advantage of the post-COVID market consolidation, we firmly maintain a stable and balanced investment strategy that improve the quality of our education service with aim to achieve a sustainable and long-term growth as opposed to unhealthy short-term growth that often requires excessive investments and higher cost to acquire customers.

鑑於市場競爭和利用新冠病毒後市場整合的機會，我們堅定地保持穩定和平衡的投資策略，以提高我們的教育服務質量，以實現可持續和長期的增長，而不是不健康的短期增長，通常需要過度投資和更高的獲客成本。

As such, we will continue to focus on the following key areas.

因此，我們將繼續專注於以下關鍵領域。

First, we will continue to expand our offline business.

一是繼續拓展線下業務。

We aim to add around 20% capacity, including the new learning centers, and expanding classroom area of some existing learning centers for K-12 business in this fiscal year.

我們的目標是在本財年增加約 20% 的容量，包括新的學習中心，以及擴大一些現有 K-12 業務學習中心的教室面積。

We believe our capacity expansion will prepare us to further take market share from other players post COVID as we believe some small players without strong financial position and online class capability may not be able to sustain their business during the period.

我們相信，我們的產能擴張將使我們準備好在 COVID 之後進一步從其他參與者手中奪取市場份額，因為我們認為一些沒有強大財務狀況和在線課程能力的小參與者可能無法在此期間維持其業務。

We expect the industry will undergo a wave of market consolidation as the pandemic fades.

我們預計，隨著大流行消退，該行業將經歷一波市場整合。

The fact that we are a major player with strong financial capacity and fresh offline facilities enable us to further strengthen our market-leading position and penetration.

我們是主要參與者，擁有強大的財務能力和新的線下設施，這使我們能夠進一步加強我們的市場領先地位和滲透率。

Second, we will continue to leverage our investments into digital technologies and introduce our OMO system in more offline language training and test offerings, especially for our K-12 tutoring business and overseas test prep key business.

其次，我們將繼續利用我們對數字技術的投資，將我們的 OMO 系統引入更多的線下語言培訓和考試產品，特別是我們的 K-12 輔導業務和海外備考關鍵業務。

The usage of online tools and content in our OMO system for all business lines throughout the whole network will be enhanced.

全網所有業務線的OMO系統中的在線工具和內容的使用將得到增強。

To uplift the whole OMO teaching experience, we'll place more efforts in developing the best teaching content and courseware and also developing more advanced training program for our teachers.

為了提升整個 OMO 教學體驗，我們將更加努力地開發最好的教學內容和課件，並為我們的教師開發更高級的培訓計劃。

With all the above-mentioned infrastructure in place, we will continue to pilot our OMO online initiatives in major cities with high demand and higher operational efficiency and its surrounding satellite cities.

在上述所有基礎設施到位後，我們將繼續在需求量大、運營效率高的主要城市及其周邊衛星城市試點 OMO 在線計劃。

We believe that our OMO initiatives will be one of the -- our growth engines to increase our customer acquisition post COVID as it can quickly replicate in different parts of China, enabling us to capture the market consolidation opportunity.

我們相信，我們的 OMO 計劃將成為我們在 COVID 之後增加客戶獲取的增長引擎之一，因為它可以在中國不同地區快速復制，使我們能夠抓住市場整合機會。

This revamped new business model will also contribute to our margin recovery when the pandemic is over and further expand our long-term margin target.

這種改進後的新業務模式也將有助於我們在大流行結束後恢復利潤率，並進一步擴大我們的長期利潤率目標。

Here, I have to highlight that all these OMO products are supported by our offline class.

在這裡，我必須強調所有這些 OMO 產品都是由我們的離線課程支持的。

They supplement each other in a hybrid format.

它們以混合格式相互補充。

Third, during the peak of the pandemic, we saw necessary needs to ramp up spending on different areas of the business aimed at migrating the challenges from the pandemic.

第三，在大流行高峰期間，我們看到有必要增加在不同業務領域的支出，以應對大流行帶來的挑戰。

Now the business -- now that the business slightly recovered to a normal level, going forward, we will closely monitor the rise of the cost expenditure across the company to improve overall operating efficiency.

現在業務——現在業務略有恢復到正常水平，未來我們將密切關注全公司成本支出的上升情況，以提高整體運營效率。

Here, I would like to stress that we have great confidence in the fundamentals of our business, which we believe will continue to remain strong.

在這裡，我想強調的是，我們對我們業務的基本面充滿信心，我們相信這些基本面將繼續保持強勁。

We have been increasing our investments in different strategies, and we remain optimistic of the brighter prospects of our business.

我們一直在增加對不同戰略的投資，我們對業務的更光明前景保持樂觀。

We believe our investments now will bring us fruitful returns in the long run.

我們相信，從長遠來看，我們現在的投資將為我們帶來豐碩的回報。

Looking at the near term and our expectations for the next quarter, we expect total revenue to be in the range USD 1,101.9 million to USD 1,141.8 million, representing year-over-year increase in the range of 38% to 43%.

從近期和我們對下一季度的預期來看，我們預計總收入將在 11.019 億美元至 11.418 億美元之間，同比增長 38% 至 43%。

To provide the breakdown of the expected top line growth for key business lines: K-12 business is expected to be -- to grow in the range of 45% to 50%, overseas test prep program is expected to grow [in the range of 25% to 30%] (corrected by company after the call), overseas study -- consulting and study tour business is expected to be flattish and the growth of the koolearn.com pure online education platform is expected to accelerate, all year-over-year in dollar terms.

提供關鍵業務線預期收入增長的細目：K-12 業務預計將在 45% 至 50% 的範圍內增長，海外考試準備計劃預計將增長 [在25% to 30%]（電話後公司更正），海外留學——諮詢遊學業務預計將持平，koolearn.com純在線教育平台全年增速有望加快- 以美元計算的年份。

To conclude, we're now taking all kinds of operational actions to boost enrollments and class utilization for the spring semester and speed up the recovery of the business after the resumption of the schools and learning centers.

總而言之，我們現在正在採取各種行動來增加春季學期的入學率和班級利用率，並在學校和學習中心恢復後加快業務恢復。

We're confident that the demand for after-school tutoring business is gradually picking up and in the process of trending towards normalized level.

我們有信心，課外輔導業務的需求正在逐步回升，並正在趨向常態化水平。

I must mention that these expectations reflect our considerations of the latest pandemic and regulatory situation as well as our current and preliminary view, which is subject to change.

我必須提到，這些預期反映了我們對最新流行病和監管情況的考慮，以及我們當前和初步的看法，這些看法可能會發生變化。

At this point, I will take your questions.

在這一點上，我會回答你的問題。

Operator, please open the call for this.

接線員，請為此打開電話。

Thank you.

謝謝你。

(Operator Instructions) Your first question comes from Felix Liu from UBS.

（操作員說明）您的第一個問題來自瑞銀的 Felix Liu。

Congratulations on the strong quarter.

祝賀強勁的季度。

My question is on regulation.

我的問題是關於監管。

I know during the past few months, the regulator has made some relatively strict comments on the after-school tutoring regulation.

我知道，這幾個月來，監管部門對課外輔導的規定做出了一些比較嚴格的評論。

So could you share some color about your take on potential regulation direction?

那麼，您能否分享一下您對潛在監管方向的看法？

Will there be any tightening in terms of new learning center license, ASP as well as after-school tutoring scheduling?

新的學習中心牌照、ASP 以及課後輔導安排是否會收緊？

Felix, it's a good question.

菲利克斯，這是個好問題。

Actually, the government's intention to tighten the after-school tutoring business policy is not a surprise to us as it has been discussed for a long time since 2018.

事實上，政府有意收緊課外輔導業務政策並不令我們感到意外，因為自 2018 年以來已經討論了很長時間。

And we believe the regulator's efforts will foster a positive environment for the whole market to improve the market standards and enhance the average teaching quality of the whole market.

我們相信監管機構的努力將為整個市場營造良好的環境，以提高市場標準，提高整個市場的平均教學質量。

And I think we are aligned with government policy and also fully committed to work together with the government to build a better the education market in China.

我認為我們與政府政策保持一致，也完全致力於與政府合作，共同建設更好的中國教育市場。

I think the reform details are yet to be announced, so now we are unable to provide a full analysis on our business impact.

我認為改革細節尚未公佈，所以現在我們無法對我們的業務影響進行全面分析。

But at this stage, we do not foresee any material impact on our top line.

但在現階段，我們預計不會對我們的收入產生任何重大影響。

And we do expect some admin cost may increase in the short term to meet the new requirement.

我們確實預計一些管理成本可能會在短期內增加以滿足新的要求。

As the largest provider, New Oriental, I think we have the strong handle to be compliant with the potential reform, the positive reform.

作為最大的供應商，新東方，我認為我們有很強的把握去順應潛在的改革，積極的改革。

And at the same time, we expect China's after-school tutoring market to further consolidate, and we have been in preparation for this and we're ready to further take more market share from the other players.

同時，我們預計中國的課外輔導市場將進一步鞏固，我們一直在為此做準備，並準備進一步從其他參與者那裡獲得更多的市場份額。

Our next question comes from Mark Li from Citi.

我們的下一個問題來自花旗的 Mark Li。

Management, congratulations on the very strong results.

管理層，祝賀你取得了非常好的成績。

May I ask for the upcoming summer promotions?

我可以問一下即將到來的夏季促銷活動嗎？

What's our plan or any target that we can share, especially, I see, maybe with the rising synergy with our OMO model?

我們的計劃或我們可以分享的任何目標是什麼，尤其是，我看到，也許與我們的 OMO 模型的協同作用越來越大？

Yes.

是的。

We started to do the summer promotion 4 or 5 years ago, and last year, we got over 1 million student enrollments from the summer promotion campaign.

我們從四五年前開始做暑期促銷活動，去年，我們從暑期促銷活動中獲得了超過 100 萬的學生入學人數。

And the retention rate after the summer was somewhere around 60%, was a good number.

夏季之後的保留率大約在 60% 左右，是一個不錯的數字。

And this year, I think we will do the same thing.

今年，我認為我們會做同樣的事情。

And we do expect the summer promotion enrollment will be booming in the coming summer, and we believe the retention rates after summer will be higher than that of last year.

而且我們確實預計即將到來的夏季暑期促銷招生將蓬勃發展，我們相信夏季後的保留率將高於去年。

Typically, we got -- these enrollments from the summer promotion, typically, we charge RMB 400, RMB 500 per course.

通常，我們從暑期促銷中獲得了這些註冊，通常我們收取人民幣 400 元，每門課程人民幣 500 元。

Actually, it's not a free course, just like some discounted courses.

實際上，它不是免費課程，就像一些打折課程一樣。

And I think the summer promotion will bring us, the whole year, the enrollment growth, and it will now hit the margins for the whole year, Mark.

而且我認為夏季促銷活動將給我們帶來全年的招生增長，現在它將達到全年的利潤，馬克。

Our next question comes from Candis Chan from Daiwa.

我們的下一個問題來自大和的 Candis Chan。

Congratulations on this very strong set of results.

祝賀這組非常強大的結果。

So my question is regarding the OMO.

所以我的問題是關於 OMO。

So can you share with us the revenue contribution of OMO currently?

那麼您能和我們分享一下 OMO 目前對收入的貢獻嗎？

And also, what would be the percentage of OMO contribution in long run as you expect?

而且，從長遠來看，OMO 貢獻的百分比是多少？

And how will be the long-term margin profile for OMO?

OMO 的長期利潤率將如何？

While the OMO model only contributes single digits to the overall revenue this quarter, with the ability to work with and reach both major and satellite cities across China, in some province, I think it will grow rapidly in the coming quarters and become the major driver to the -- to our business growth.

雖然 OMO 模式對本季度整體收入的貢獻僅為個位數，但能夠與中國主要城市和衛星城市合作並覆蓋中國，但在某些省份，我認為它將在未來幾個季度快速增長並成為主要驅動力為了——為了我們的業務增長。

We expect the revenue contribution from the OMO next year will be somewhere around 10%.

我們預計明年 OMO 的收入貢獻將在 10% 左右。

And the margin profile of the OMO -- lastly, the OMO model -- the margin of the OMO model should be a little bit higher than the traditional offline classes.

而OMO的margin profile——最後是OMO模型——OMO模型的margin應該比傳統的線下課程高一點。

But we just started the OMO model since the last year, so we still need more time to test this business model and the margin profile.

但是我們從去年開始才開始 OMO 模式，所以我們還需要更多的時間來測試這種商業模式和利潤率狀況。

But so far, so good.

但到目前為止，一切都很好。

I think the progress of the OMO business is better than expected.

我認為OMO業務的進展好於預期。

And the OMO model will contribute more and more revenue going forward in the next fiscal year and in the next 2 to 3 years.

而 OMO 模式將在下一財年和未來 2 到 3 年貢獻越來越多的收入。

Our next question comes from Tian Hou from T.H. Capital.

我們的下一個問題來自 T.H. 的田侯。首都。

Congratulations on a strong quarter.

祝賀一個強勁的季度。

So I see the overseas recover pretty nicely.

所以我看到海外恢復得很好。

And also, some data shows that even though this year was pandemic, however, the students who applied to overseas schools, the number of that was really high.

還有一些數據顯示，雖然今年是疫情，但是申請海外學校的學生，數量確實不少。

So I wonder what's the outlook for the overseas testing and consulting part of the business.

所以我想知道海外測試和諮詢業務的前景如何。

What's the outlook for that?

對此有何展望？

What do you see from today's data?

你從今天的數據中看到了什麼？

Thanks, Tian.

謝謝，田。

I think the overseas test prep -- overseas-related business recovery is coming.

我認為海外考試準備——海外相關業務的複蘇即將到來。

And the revenue decline of the overseas test prep this quarter was 12%.

而本季度海外備考的收入下降了12%。

Last quarter, the revenue decline was 29%, and 2 quarters ago, the revenue decline was 50% in dollar terms.

上個季度，收入下降了 29%，而 2 個季度前，收入下降了 50%，以美元計算。

So it showed the encouraging sign of the recovery of the overseas test prep business.

因此，顯示出海外備考業務復甦的可喜跡象。

And we gave the guidance for Q4.

我們給出了第四季度的指導。

The overseas test prep business will be increased by somewhere around 30%, 3-0 percent.

海外備考業務將增長約 30%，即 3-0%。

So I think the -- you will see the higher recovery of the overseas test prep business.

所以我認為 - 你會看到海外考試準備業務的更高複蘇。

And yes, I know we have the low base last year, but anyway, I think the -- we're in the process of the recovery of the overseas test prep business.

是的，我知道我們去年的基數很低，但無論如何，我認為 - 我們正在恢復海外考試準備業務。

And consulting business, this quarter, we got an increase by 11%.

而諮詢業務，本季度，我們獲得了 11% 的增長。

And next year, we guided the revenue growth of the consulting business will be flattish.

而明年，我們指導的諮詢業務收入增長將持平。

Secondly, Q4 will be the high season of the overseas consulting business.

其次，第四季度將是海外諮詢業務的旺季。

But during a hard time, I think the performance of the overseas test prep and consulting business, I think, is much better than we expected several quarters ago.

但在困難時期，我認為海外備考和諮詢業務的表現比我們幾個季度前的預期要好得多。

And next year, I believe the overseas-related business will grow to some extent for the fiscal year 2022.

明年，我相信海外相關業務在2022財年會有所增長。

Thank you, Tian.

謝謝你，田。

Our next question comes from Sheng Zhong from Morgan Stanley.

我們的下一個問題來自摩根士丹利的盛忠。

So my question is looking at Beijing, I think the learning centers reopening is slightly slow.

所以我的問題是關於北京，我認為學習中心的重新開放速度有點慢。

So any color on this government approval process, what the key items they are doing the inspection now?

那麼這個政府審批流程有什麼顏色，他們現在檢查的重點項目是什麼？

And do you think -- so based on this, what's your -- do you have capacity expansion plan for next year that can be shared with us now?

你認為——基於此，你的——你有明年的產能擴張計劃，現在可以與我們分享嗎？

So far, we opened almost all the learning centers except for Beijing city.

到目前為止，我們幾乎開設了除北京市外的所有學習中心。

And in Beijing, we have [over 100] learning centers in Beijing, but we opened single-digit learning centers now.

在北京，我們在北京有[100多個]學習中心，但我們現在開設了個位數的學習中心。

And -- but we expect that the more -- we will open more learning centers -- reopen more learning centers in Beijing.

而且 - 但我們希望更多 - 我們將開設更多的學習中心 - 在北京重新開放更多的學習中心。

And this year, we plan to open 20% of the capacity.

今年，我們計劃開放 20% 的產能。

First 3 quarters, we opened 17%.

前三個季度，我們開了 17%。

And next year -- so far, we haven't finished our budget for the next year, the expense plan.

明年——到目前為止，我們還沒有完成明年的預算，即費用計劃。

So I think the next earnings call in the next quarter I will share with you our expansion plan.

因此，我認為在下個季度的下一次財報電話會議上，我將與您分享我們的擴張計劃。

And so far, we want to change our expansion plan for the next year, but we still need more time to finalize our budget for next year.

到目前為止，我們想改變明年的擴張計劃，但我們仍然需要更多的時間來敲定明年的預算。

Yes.

是的。

Sheng, in addition to the Beijing situation, I want to remind you all that because we have the OMO system so that we have all the students during the spring course online very smoothly, actually even with the closure of offline learning centers, still all the students can take their classes online, and the retention is very stable.

盛，除了北京的情況，我想提醒大家的是，因為我們有OMO系統，所以春季課程的所有學生都在線非常順利，實際上即使關閉了線下學習中心，仍然所有的學生可以在線上課，留存非常穩定。

And also overall, the -- since the pandemic, we're seeing Beijing's situation is harder than other cities and revenue declined.

總體而言，自大流行以來，我們看到北京的情況比其他城市更艱難，收入下降。

But the reported Q3 quarter and forecast Q4 quarter, Beijing's revenue trend is better -- getting better and better.

但在報告的Q3季度和預測的Q4季度，北京的收入趨勢更好——越來越好。

Our next question comes from Alex Xie from Crédit Suisse.

我們的下一個問題來自瑞士信貸的 Alex Xie。

Congratulations on very strong set of results.

祝賀取得了非常強勁的結果。

So please comment on the margin trend in the next quarter and also for the next fiscal year.

因此，請評論下一季度以及下一財年的利潤率趨勢。

I think we have a low base in the fourth quarter of last fiscal year.

我認為我們在上一財年第四季度的基數很低。

Yes.

是的。

I think the revenue growth recovery is similar process.

我認為收入增長恢復是類似的過程。

This is the first.

這是第一個。

And on the market front, I think we do have the -- I think we have the business opportunity in the market for us.

在市場方面，我認為我們確實有 - 我認為我們在市場上有商機。

And -- but we are doing the -- several investment now, actually since 2 quarters ago.

而且 - 但我們現在正在進行 - 幾項投資，實際上是從兩個季度前開始。

We make the learning center expansion by 20% this year, and we firmly raised the teacher salary twice this year.

今年我們把學習中心擴大了20%，今年我們兩次堅定地提高了教師工資。

And also, we spend more money on the R&D for the OMO, and also, we hired more people on the marketing team to do the marketing activities.

而且，我們在 OMO 的研發上投入了更多的錢，而且，我們在營銷團隊中僱傭了更多的人來做營銷活動。

So -- but I think the -- all the above-mentioned investments will make us be fully prepared for the future.

所以 - 但我認為 - 所有上述投資將使我們為未來做好充分準備。

So I think it will impact the margin for short term, but I still believe the margin decline for the Q4 will be narrowed down compared to this quarter.

所以我認為這會在短期內影響利潤率，但我仍然認為第四季度的利潤率下降將比本季度收窄。

And we're confident that we are able to deliver the margin expansion after the pandemic is over, and we don't want to change the mid-, long-term margin guidance.

而且我們有信心在大流行結束後能夠實現利潤率擴張，我們不想改變中長期利潤率指導。

Our next question comes from D. S. Kim from JPMorgan.

我們的下一個問題來自摩根大通的 D. S. Kim。

Congrats on the strong [results] across the board.

祝賀全面的強勁[結果]。

Maybe before I start my question, can I just follow up on your point that -- when you say margin decline would be narrowed versus this quarter, are you referring to last year or pre-COVID level?

也許在我開始我的問題之前，我可以跟進你的觀點 - 當你說利潤率下降將與本季度相比收窄時，你指的是去年還是 COVID 之前的水平？

And I have my own question after this.

在此之後我有自己的問題。

I mean it's year-over-year comparison.

我的意思是年度比較。

Year-over-year, okay.

年復一年，好吧。

My question is regarding Koolearn.

我的問題是關於 Koolearn。

And there seems to be some reports locally that there are some business adjustment at the entity, according to some media.

據一些媒體報導，當地似乎有一些報導稱，該實體有一些業務調整。

And could you help us understand what's the key change and priority here plus potential margin impact?

您能否幫助我們了解這裡的關鍵變化和優先事項以及潛在的利潤影響？

Say, for instance, Koolearn has been making about USD 40-plus million operating losses every quarter in the past 5, 6 quarters.

比如說，Koolearn 在過去的 5、6 個季度中，每個季度的運營虧損都在 40 多萬美元左右。

But shall we expect the absolute size of the losses from $40 million-plus to narrow into fiscal year 2022?

但是，我們是否應該預計到 2022 財年，虧損的絕對規模會從 4000 萬美元以上縮小？

Or shall we only think about the margin improvement, not the absolute size of losses?

還是我們應該只考慮利潤率的提高，而不考慮損失的絕對規模？

D.S. Kim, I can't say too much about the detailed numbers of the Koolearn, but I can share with you our strategy.

D.S. Kim，關於 Koolearn 的詳細數字我不能說太多，但我可以和你分享我們的策略。

Koolearn has spent more money on the R&D and marketing in the past quarters, but we started to control the marketing activities and money in this quarter.

Koolearn在過去幾個季度在研發和營銷上投入了更多資金，但我們在本季度開始控制營銷活動和資金。

And going forward, I think we will be very cautious on the marketing spending.

展望未來，我認為我們將對營銷支出非常謹慎。

Okay?

好的？

And as I said, our strategic focus is to invest more money on -- to improve the teaching quality or training the teachers or hiring the talented people rather than the heavy spending on marketing.

正如我所說，我們的戰略重點是投入更多資金——提高教學質量或培訓教師或聘用人才，而不是在營銷上投入大量資金。

So we thought this is the essence of the education.

所以我們認為這是教育的本質。

And so I do believe the revenue of the Koolearn of next quarter will be accelerated, and the margin drag from the Koolearn to the EDU will be smaller and smaller going forward.

所以我相信 Koolearn 下一季度的收入會加速，未來 Koolearn 對 EDU 的利潤拖累會越來越小。

Our next question comes from Lucy Yu from Bank of America Securities.

我們的下一個問題來自美國銀行證券的 Lucy Yu。

I have a follow-up question on the margin.

我有一個關於邊緣的後續問題。

So in the fourth quarter, we have a relatively lower base.

所以在第四季度，我們的基數相對較低。

And especially with the K-12 start to grow like 45% to 50%, should we expect some operating leverage on the K-12 side?

尤其是隨著 K-12 開始增長 45% 到 50%，我們是否應該期待 K-12 方面的一些運營槓桿？

At least the K-12 margin should be improving, right?

至少 K-12 的利潤率應該有所提高，對吧？

So what is actually dragging the margin to be lower than the same period of last year?

那麼究竟是什麼在拖累利潤率低於去年同期呢？

Yes.

是的。

We believe we have the leverage on the K-12 business because the business recovered very, very fast.

我們相信我們對 K-12 業務具有影響力，因為該業務恢復得非常非常快。

And -- but as I said, with this, we're doing the investments for the future like raising the teacher salary and to open more learning centers and also to invest more on the OMO model.

而且 - 但正如我所說，我們正在為未來進行投資，例如提高教師工資，開設更多學習中心，並在 OMO 模式上進行更多投資。

We hired a meaningful number of the marketing staff to do the brand promotion.

我們聘請了相當數量的營銷人員進行品牌推廣。

And so I think you still need maybe more time to see the margin expansion, maybe one more quarter.

所以我認為你可能還需要更多的時間來看到利潤率的增長，可能還要再增加一個季度。

But I do believe the margin profile in Q4 will be better than this quarter.

但我確實相信第四季度的利潤率狀況會好於本季度。

Thanks, Lucy.

謝謝，露西。

Our next question comes from Jessie Xu from Nomura.

我們的下一個問題來自野村的 Jessie Xu。

Congratulations for a very strong quarter and also very strong revenue guidance for 4Q.

祝賀一個非常強勁的季度以及非常強勁的第四季度收入指導。

My question is also regarding offline normalization in Beijing.

我的問題也是關於北京的線下正常化。

I want to understand what is our base scenario here.

我想了解我們的基本場景是什麼。

And what about the worst-case scenario?

那麼最壞的情況呢？

If Beijing learning centers cannot be opened before summer, what will be the impact to our summer promotional campaigns?

如果北京學習中心不能在夏季之前開放，對我們的夏季促銷活動會有什麼影響？

So far, we finished the 17% expansion in the first 3 quarters of this fiscal year, so we still need 2% to 3% new capacity in Q4 to get to a point -- to get the number of the 20% capacity expansion.

到目前為止，我們在本財年的前三個季度完成了 17% 的擴容，所以我們仍然需要在第四季度新增 2% 到 3% 的產能才能達到一個點——獲得 20% 的擴容數量。

I think we are prepared for -- the capacity is prepared for the coming summer promotion.

我認為我們已經為即將到來的夏季促銷活動做好了準備。

And don't forget we have the OMO model compared to last year.

別忘了我們有與去年相比的 OMO 模型。

Our OMO model is much better than that of last year.

我們的 OMO 模式比去年好很多。

And I think we will do some of the summer promotion via the OMO model.

我認為我們將通過 OMO 模式進行一些夏季促銷活動。

I think the online elements will help us to do the summer promotion rather than the traditional, typical 100% offline format.

我認為線上元素將幫助我們進行夏季促銷，而不是傳統的、典型的 100% 線下形式。

Our next question comes from Christine Cho from Goldman Sachs.

我們的下一個問題來自高盛的 Christine Cho。

Congrats on solid results this quarter, Stephen and Sisi.

恭喜斯蒂芬和西西本季度取得穩健的業績。

It seems like the capacity growth this quarter of 17% looks a bit softer.

看起來本季度 17% 的產能增長看起來有點放緩。

And also, it seems like you're targeting around 20% growth, which seems to be kind of the low end of the 20% to 25% midterm target.

而且，您的目標似乎是 20% 左右的增長，這似乎是 20% 到 25% 中期目標的低端。

Just wondering if this is temporary.

只是想知道這是否是暫時的。

Or are there any lasting considerations such as, for example, like OMO expansion plans or any regulatory concerns that you have here?

或者是否有任何持久的考慮，例如 OMO 擴張計劃或您在這裡有任何監管問題？

Yes.

是的。

We aim to add around 20% capacity expansion for the whole year, fiscal year 2021, this year.

我們的目標是在今年 2021 財年全年增加約 20% 的產能擴張。

And last year, we expanded 26% new learning centers.

去年，我們擴大了 26% 的新學習中心。

Typically, we ramp up the learning center from 0 to [mature] (corrected by company after the call) by 3 to 4 years.

通常，我們將學習中心從 0 提升到 [成熟]（在電話會議後由公司更正）3 到 4 年。

So that means we have enough capacity to ramp up.

所以這意味著我們有足夠的能力來提升。

And also, since the last year, we moved some classroom area of the overseas test prep to K-12 business because we suffered the negative impact from the overseas test prep business.

而且，從去年開始，我們將海外備考的一些教室區域轉移到了K-12業務，因為我們受到了海外備考業務的負面影響。

And I think it will help us to prepare for the potential growth of the K-12 business.

我認為這將幫助我們為 K-12 業務的潛在增長做好準備。

So we are now approaching the end of the conference call.

所以我們現在接近電話會議的尾聲。

I will turn the call back to New Oriental's Executive President and CFO, Mr. Stephen Yang, for his closing remarks.

我將把電話轉回新東方執行總裁兼首席財務官斯蒂芬·楊先生的閉幕詞。

Again, thank you for joining us today.

再次感謝您今天加入我們。

If you have any further questions, please do not hesitate to contact me or any of our Investor Relations representative.

如果您有任何其他問題，請隨時與我或我們的任何投資者關係代表聯繫。

Thank you.

謝謝你。

All right.

好的。

Thank you.

謝謝你。

So that does conclude our conference for today.

這樣就結束了我們今天的會議。

Thank you for participating.

感謝您的參與。

You may all disconnect.

你們都可以斷開連接。