New Oriental Education & Technology Group Inc (EDU) 2023 Q1 法說會逐字稿

Good evening, and thank you for standing by for New Oriental's FY 2023 First Quarter Results Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions) I'd now like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao.

晚上好，感謝您等待新東方 2023 財年第一季度業績電話會議。 （操作員說明）今天的會議正在錄製中。 （操作員說明）我現在想將會議轉交給今天會議的主持人趙思思女士。

Thank you. Hello everyone, and welcome to New Oriental's First Fiscal Quarter 2023 Earnings Conference Call. Our financial results for the period were released earlier today and are available on the company's website as well as on Newswire Services. Today you will hear from Stephen Yang, Executive President and Chief Financial Officer. After his prepared remarks, Stephen and I will be available to answer your questions.

謝謝你。大家好，歡迎來到新東方2023財年第一季度財報電話會議。我們在此期間的財務業績於今天早些時候發布，可在公司網站和 Newswire Services 上查閱。今天，您將聽到執行總裁兼首席財務官 Stephen Yang 的講話。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 this discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC.

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。前瞻性陳述涉及固有風險和不確定性。因此，我們的結果可能與今天表達的觀點存在重大差異。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. As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on New Oriental's Investor Relations website at investor.neworiental.org.

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。提醒一下，本次會議正在錄製中。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. Stephen, please go ahead.

我現在把電話轉給楊先生。斯蒂芬，請繼續。

Thank you, Sisi. Hello, everyone and thank you for joining us on the call. This first quarter has not only marked a fresh beginning of our 2023 fiscal year, but also a new page to New Oriental. Before going into detail of our financial performance for this quarter, I would like to take this opportunity to extend our gratitude to those who have been believing and supporting New Oriental along the way.

謝謝你，茜茜。大家好，感謝您加入我們的電話會議。今年一季度，不僅標誌著我們2023財年的全新開始，也是新東方新的一頁。在詳細介紹我們本季度的財務表現之前，我想藉此機會向一路以來一直相信和支持新東方的人們表示感謝。

I'm delighted to share with you that the restructuring process has been largely completed and New Oriental has successfully derived a new business model, combined with a certain existing business and the new innovative business opportunity. Our new business ventures have been performing well and is starting to generate positive results to New Oriental. Furthermore, it's even more encouraging to see that, we have achieved a turnaround in profitability and the better than we expect margin this quarter.

很高興與大家分享，重組過程已基本完成，新東方成功衍生出新的商業模式，結合一定的現有業務和新的創新商業機會。我們的新業務表現良好，並開始對新東方產生積極影響。此外，更令人鼓舞的是，我們已經實現了盈利能力的轉變，並且本季度的利潤率好於我們的預期。

Our non-GAAP operating margin for the quarter was 13% and non-GAAP net margin for the quarter was 11.2%, both higher than last year same period. We believe the company has embarked on a fresh journey that strives to encourage all around development of students and customers and the fulfill the betterment of the society, and at the same time, generated profit and fruitful returns for our shareholders.

我們本季度的非 GAAP 營業利潤率為 13%，本季度非 GAAP 淨利潤率為 11.2%，均高於去年同期。我們相信，公司已經踏上了一條新的征程，致力於鼓勵學生和客戶的全面發展，實現社會的進步，同時為我們的股東創造利潤和豐厚的回報。

Now I would like to spend some time to talk about this quarter's performance across our remaining business lines and the new initiatives to you in detail. Our key remaining businesses have shown remarkable resilience and achieved promising trends. Breaking it down, the overseas test prep business recorded a revenue increase of 2% in dollar terms year-over-year for the first quarter 2023 fiscal year. The adults and university students business recorded revenue growth of about 2% in dollar terms year-over-year for the quarter. The overseas study consulting business recorded a revenue increase of about 21% in dollar terms year-over-year for the quarter.

現在我想花點時間詳細談談我們剩餘業務線的本季度業績和新舉措。我們的主要剩餘業務表現出顯著的彈性並取得了可喜的趨勢。細分來看，海外考試準備業務在 2023 財年第一季度的收入按美元計算同比增長 2%。本季度成人和大學生業務收入按美元計算同比增長約 2%。以美元計算，本季度海外留學諮詢業務收入同比增長約 21%。

As for our new business initiatives, as mentioned in past quarter, we have launched several new initiatives, which mostly revolve around facilitating students all around development. I'm glad to share with you that these new initiatives have shown positive momentum and have started to generate revenue to the group.

至於我們的新業務舉措，如上一季度所述，我們推出了幾項新舉措，主要圍繞促進學生全面發展。我很高興與您分享這些新舉措已顯示出積極的勢頭，並已開始為集團帶來收入。

Firstly, the non-academic tutoring business, which we have rolled out in over 60 existing cities, focuses on cultivating students' innovative ability and comprehensive quality. We're happy to see increased market penetration in those markets we have tapped into with 297,000 student enrollments in the first quarter. The top 10 cities in China have to contribute about 60% of the revenue of this business.

一是在現有60多個城市開展的非學歷輔導業務，重點培養學生的創新能力和綜合素質。我們很高興看到我們在第一季度有 297,000 名學生入學的市場滲透率有所提高。中國排名前 10 的城市必須貢獻該業務收入的 60% 左右。

Secondly, the intelligence learning system and device business is the service designed to provide a tailored digital learning experience for students. It's utilized our past teaching experience, data and technology to provide personalized, targeted, learning and exercise content. Together with our teachers monitoring and accessing the learning curve of the students and the back-end system, the new education service not only greatly improve students learning efficiency, but also cultivate students' proactive learning habits. We have tested in adoption in around 60 existing cities with 131,000 active paid users in this quarter and are delighted to see improved customer retention rates and scalability of this new initiative. The revenue contribution of this business from the top 10 cities in China is over 60%.

其次，智能學習系統和設備業務是旨在為學生提供量身定制的數字學習體驗的服務。它利用我們過去的教學經驗、數據和技術來提供個性化、有針對性的學習和鍛煉內容。加上我們的教師監控和訪問學生的學習曲線和後端系統，新的教育服務不僅大大提高了學生的學習效率，還培養了學生的主動學習習慣。本季度，我們在大約 60 個現有城市進行了測試，擁有 131,000 名活躍付費用戶，我們很高興看到這項新計劃的客戶保留率和可擴展性有所提高。該業務來自中國前10大城市的收入貢獻超過60%。

Meanwhile, the study tour and the research camp business is an initiative that aims at offering students of K-12 and university students the opportunity to fully leverage their free time and holidays to broaden the scope of knowledge and cultivate subject interest. We have conducted the study tour and the research camp business in over 50 cities across the country. The revenue contribution of this initiative, from the top 10 cities in China is over 55%. Last but not least, our smart education business, which comprises smart teaching, smart hardware, science, technology, innovation, education and other services serves local governments, education authorities, schools and kindergartens.

同時，遊學和研究營業務旨在為K-12學生和大學生提供充分利用空閒時間和假期的機會，拓寬知識範圍，培養學科興趣。我們在全國50多個城市開展了遊學和研學營業務。該計劃的收入貢獻來自中國前 10 名城市，超過 55%。最後，我們的智慧教育業務包括智慧教學、智慧硬件、科技、創新、教育等服務，服務於地方政府、教育主管部門、學校和幼兒園。

Our educational material and digitalized smart study solution, a self-learning system, which leverages advanced technology enable students to have complete control over the pace and the flexibility of learning age where remote learning becomes increasingly mainstream. We also offer exam prep courses designed for students with junior college diplomas to obtain bachelor's degrees.

我們的教材和數字化智能學習解決方案是一種利用先進技術的自學系統，使學生能夠完全控制遠程學習日益成為主流的學習時代的節奏和靈活性。我們還提供專為具有大專文憑的學生設計的考試準備課程，以獲得學士學位。

The above-mentioned businesses have been gaining the traction and contribute the overall growth of the company. Our OMO system has continued to be instrumental post our restructuring process. We continued our efforts in revamping and maintaining the OMO teaching platform and kept leveraging our education infrastructure and technology strength across key remaining business and new initiatives to provide more advanced and diversified education service to our customers at all ages. We have invested $31 million in the quarter on our OMO teaching platform to ensure that we continue to offer high quality service and flexibility to our students.

上述業務一直在獲得牽引力，並為公司的整體增長做出了貢獻。我們的 OMO 系統在我們的重組過程之後繼續發揮作用。我們繼續努力改造和維護 OMO 教學平台，並繼續在關鍵剩餘業務和新舉措中利用我們的教育基礎設施和技術實力，為各個年齡段的客戶提供更先進和更多樣化的教育服務。本季度我們在 OMO 教學平台上投資了 3100 萬美元，以確保我們繼續為學生提供高質量的服務和靈活性。

In response to an evolving industry landscape in China, we have implemented structural changes to our pure online education platform, Koolearn, as previously mentioned. While Koolearn continued to expand its online education offerings to adults and university students, it has also actually sought business opportunities in new areas.

如前所述，為了應對中國不斷變化的行業格局，我們對純在線教育平台 Koolearn 實施了結構性變革。在 Koolearn 繼續將其在線教育產品擴展到成人和大學生的同時，它實際上也在新領域尋找商機。

Leveraging on the technology developed for live broadcast classrooms with our existing teams of talents, Koolearn has established an e-commerce platform under the brand name Dongfang Zhenxuan for the sale of agriculture and other products and offer premium service for tens of millions of followers through its tight supply chain ecosystem, innovative live streaming marketing and diversify our cooperation with the suppliers and producers.

借助現有人才團隊為直播課堂開發的技術，酷學網以東方振軒品牌建立了農產品等產品銷售電商平台，並通過其為數千萬粉絲提供優質服務。緊密的供應鏈生態系統，創新的直播營銷以及與供應商和生產商的合作多樣化。

To maximize the full potential and social values of this new business, Koolearn has placed the strategic focus to develop a high-quality and cost-effective e-commerce platform offering, agriculture products and daily necessities so as to bring better quality of life and promote healthy lifestyles to its customers.

為最大限度地發揮這一新業務的潛力和社會價值，Koolearn 已將戰略重點放在開發高品質和高性價比的電子商務平台，提供農產品和日用品，以帶來更好的生活質量和促進為客戶提供健康的生活方式。

During the reporting period, Dongfang Zhenxuan has broadened its product selection and SKUs, thereby continuously improving shopping experience of its customers. The platform does not only serve as [alternate to our life], for farmers and the local companies to sell their high quality farmer goods and other products to a broader customer base, but also provides platform, which offers a range of top-notch products with the transparency in pricing to customers.

報告期內，東方振軒拓寬了產品選擇和SKU，不斷提升客戶的購物體驗。該平台不僅作為[我們生活的替代品]，讓農民和當地公司向更廣泛的客戶群銷售他們的優質農產品和其他產品，而且還提供平台，提供一系列一流的產品對客戶的定價透明。

Leveraging the well developed production capacity and the commercial infrastructure such as logistic centers and the communication networks in China, Koolearn has also successfully launched its own

借助中國發達的生產能力和物流中心、通訊網絡等商業基礎設施，Koolearn也成功推出了自己的

(technical difficulty)

（技術難度）

During the reporting periods, Dongfang Zhenxuan has broadened its product selection and SKUs, thereby continuously improving shopping experience of its customers. The platform does not only serve as a -- the [alternate online] for farmers and local companies who sell their high quality farm goods and other products to a broader customer base, but also provide a platform which offers a range of the top-notch products with the transparency in pricing to customers.

報告期內，東方振軒拓寬了產品選擇和SKU，不斷提升客戶的購物體驗。該平台不僅為向更廣泛的客戶群銷售優質農產品和其他產品的農民和當地公司提供了一個[替代在線]，而且還提供了一個提供一系列一流產品的平台對客戶定價透明的產品。

Leveraging the well developed production capacity and commercial infrastructure such as logistics centers and communication network in China, Koolearn has also successfully launched its own private label products and established a high quality supply chain management system within a short period of time.

借助中國發達的生產能力和物流中心、通訊網絡等商業基礎設施，Koolearn也成功推出了自己的自有品牌產品，並在短時間內建立了高質量的供應鏈管理體系。

A variety of the product selection and product quality continued to grow, Dongfang Zhenxuan has earned a prominent position within (technical difficulty) and again strong traction and brand loyalty from its customers. Looking forward, Koolearn will strengthen its team of talents to continuously create positive unique interesting content to attract user to its platform and promote traditional Chinese culture.

多品種的產品選擇和產品質量不斷提升，東方振軒在（技術難度）中贏得了突出的地位，再次獲得了客戶的強大牽引力和品牌忠誠度。展望未來，Koolearn將加強人才團隊，不斷創造積極獨特的有趣內容，吸引用戶進入其平台，弘揚中國傳統文化。

Koolearn will also place additional investment to its products and technology upgrades. So as to concentrate on selecting and launching top quality products from different origins in China, through the third-party cooperation and private labels to create values for customers, partners and wider society.

Koolearn 還將對其產品和技術升級進行額外投資。從而專注於選擇和推出來自中國不同產地的優質產品，通過第三方合作和自有品牌，為客戶、合作夥伴和更廣泛的社會創造價值。

With regards to the company's latest financial position, I'm confident to share with you know that the company is in a healthy financial status with cash and cash equivalents, term deposits and short-term investments totaling approximately $4.3 billion. On July 26, 2022, the company's Board of Directors authorized a share repurchase plan of up to $400 million of the company ADS or common shares during the period from July 28, 2022 through May 31, 2023.

關於公司最新的財務狀況，我有信心與大家分享，公司財務狀況良好，現金及現金等價物、定期存款和短期投資合計約43億美元。 2022 年 7 月 26 日，公司董事會批准了一項在 2022 年 7 月 28 日至 2023 年 5 月 31 日期間最多 4 億美元的公司 ADS 或普通股的股票回購計劃。

As of October 25, 2025 (sic) [2022] the company accumulatively repurchased an aggregate approximately 1.6 million ADS for approximately $39.6 million from the open market under the share repurchase program.

截至 2025 年 10 月 25 日（原文如此）[2022]，公司根據股票回購計劃，以約 3960 萬美元的價格從公開市場累計回購了總計約 160 萬股 ADS。

Now I will turn the call over to Sisi to share with you about the key financials. Sisi, please go ahead.

現在，我將把電話轉給 Sisi，與您分享關鍵財務狀況。思思，請繼續。

Now, I'd like to walk you through the other key financial details for this quarter. Operating costs and expenses for the quarter were

現在，我想向您介紹本季度的其他關鍵財務細節。本季度的運營成本和費用為

USD666.8 million, representing a 47.8% decrease year-over-year. Non-GAAP operating costs and expenses for the quarter, which excludes share-based compensation expenses were USD647.8 million, representing a 47.5% decrease year-over-year. The decrease was primarily due to the reduction of facilities and numbers of staff as a result of the restructuring in fiscal year '22.

6.668 億美元，同比下降 47.8%。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 6.478 億美元，同比下降 47.5%。減少的主要原因是由於 22 財年的重組導致設施和員工人數減少。

Cost of revenues decreased by 51.4% year-over-year to USD312.1 million. Selling and marketing expenses decreased by 40.2% year-over-year to USD98.7 million. G&A expenses for the quarter decreased by 45.4% year-over-year to USD256 million. Non-GAAP G&A expenses was -- which excludes share-based compensation expenses were USD237.4 million, representing a 44.5% decrease year-over-year.

收入成本同比下降 51.4% 至 3.121 億美元。銷售和營銷費用同比下降 40.2% 至 9,870 萬美元。本季度的 G&A 費用同比下降 45.4% 至 2.56 億美元。非美國通用會計準則 G&A 費用為 2.374 億美元，不包括股權激勵費用，同比下降 44.5%。

Total share-based compensation expenses, which were allocated to related operating costs and expenses decreased by 55.9% to USD19.1 million in the first -- fiscal quarter of 2023. Operating income was USD78 million, representing a 140.5% increase year-over-year. Non-GAAP income from operations for the quarter was USD97 million, representing a 28.3% increase year-over-year. Net income attributable to New Oriental for the quarter were USD66 million, representing a 9% increase year-over-year.

2023 年第一財季，分配至相關運營成本和費用的股權激勵費用總額下降 55.9% 至 1910 萬美元。運營收入為 7800 萬美元，同比增長 140.5%年。本季度非美國通用會計準則運營收入為 9700 萬美元，同比增長 28.3%。本季度歸屬於新東方的淨利潤為6600萬美元，同比增長9%。

Basic and diluted net income per ADS attributable to New Oriental were $0.39 and $0.38 respectively. Non-GAAP net income attributable to New Oriental for the quarter was USD83.7 million, representing a 24.7% decrease year-over-year. Non-GAAP basic and diluted net loss per ADS attributable to New Oriental -- net income per attributable to New Oriental were $0.49 and $0.48 respectively.

歸屬於新東方的每份 ADS 的基本和攤薄淨收入分別為 0.39 美元和 0.38 美元。本季度歸屬於新東方的非美國通用會計準則淨利潤為 8,370 萬美元，同比下降 24.7%。歸屬於新東方的非美國通用會計準則每股美國存託憑證的基本和攤薄淨虧損——歸屬於新東方的每股淨收益分別為 0.49 美元和 0.48 美元。

Net operating cash flow for the first fiscal quarter of 2023 was approximately USD185.2 million and capital expenditure for the quarter were USD14 million.

2023 年第一財季的淨經營現金流約為 1.852 億美元，該季度的資本支出為 1400 萬美元。

Turning to the balance sheet, as of August 31, 2022, New Oriental had cash and cash equivalents of USD1,103.9 million. In addition, the company had USD1,054.7 million in term deposits and USD2,092.3 million in short-term investments. New Oriental's deferred revenue balance, which is primarily cash collected from registered students for courses and recognized proportionally as revenue as the instruction are delivered at the end of the first quarter of fiscal year 2023, was USD1,012.5 million, a decrease of 30.3% as compared to USD1,453.3 million at the end of the first quarter of fiscal year 2022. The decrease is primarily due to the cessation of K-9 academic after-school tutoring services in compliance with the government's policies in China.

轉至資產負債表，截至2022年8月31日，新東方擁有現金及現金等價物11.039億美元。此外，公司還有10.547億美元的定期存款和20.923億美元的短期投資。新東方的遞延收入餘額為 10.125 億美元，主要是向註冊學生收取的課程現金，並在 2023 財年第一季度末按比例確認為收入，為 10.125 億美元，同比下降 30.3%。與 2022 財年第一季度末的 14.533 億美元相比。減少的主要原因是根據中國政府的政策停止了 K-9 學術課外輔導服務。

Now I'll handover back to Stephen to go through our outlooks and guidance.

現在我將交還給斯蒂芬，以了解我們的展望和指導。

Thank you, Sisi. Looking ahead into the second quarter of fiscal year 2023 with the restructuring process now largely completed, we expect that our school networks and the geographic coverage to become stabilized. The company has now entered a stage of starting a fresh page, exploring new opportunity with greater flexibility and a strong cash flows. We're confident in the sustainable profitability of all our remaining key business, as well as the growth and prospects of our new initiatives.

謝謝你，茜茜。展望 2023 財年第二季度，重組過程現已基本完成，我們預計我們的學校網絡和地理覆蓋範圍將趨於穩定。公司現已進入翻開新篇章的階段，探索具有更大靈活性和強勁現金流的新機遇。我們對所有剩餘關鍵業務的可持續盈利能力以及我們新舉措的增長和前景充滿信心。

For our new businesses as we observed in this quarter, the encouraging performance that these businesses have achieved proof that we are heading towards the right direction and we're confident that business will be able to contribute meaningful revenue to the company this fiscal year 2023.

對於我們在本季度觀察到的新業務，這些業務取得的令人鼓舞的業績證明我們正朝著正確的方向前進，我們相信業務將能夠在 2023 財年為公司貢獻可觀的收入。

As for the continued pandemic development in China, thanks to our OMO system, we believe that overall impact that would cost to our business and financial will be limited. We have also had measures in place to control and handle lockdown situations should may rise. However, due to the seasonality of some of our business, such as test prep courses and overseas study consulting services, New Oriental generally recorded lower revenue in the second quarter of the fiscal year with the revenue typically below those of the first quarter.

至於中國疫情的持續發展，由於我們的 OMO 系統，我們相信對我們的業務和財務造成損失的整體影響將是有限的。我們還採取了措施來控制和處理可能會增加的鎖定情況。然而，由於部分業務的季節性，例如備考課程和留學諮詢服務，新東方在本財年第二季度的收入普遍較低，收入通常低於第一季度。

Hence, we expect total net revenue in the second quarter of the fiscal year 2023, September 1, 2022 to November 30, 2022 to be in the range of $601.4 million to $619.2 million, representing a year-over-year decline in the range of 9% to 6%. The projected increase of the revenue in our functional currency RMB is expected to be in the range of 1% to 4%, this is the increase for the second quarter of the fiscal year 2023.

因此，我們預計 2023 財年第二季度（即 2022 年 9 月 1 日至 2022 年 11 月 30 日）的總淨收入將在 6.014 億美元至 6.192 億美元之間，同比下降幅度為9% 到 6%。以我們的功能貨幣人民幣計算的收入預計增長在 1% 至 4% 的範圍內，這是 2023 財年第二季度的增長。

Bottom line was, we're confident that we will achieve operating profit in the full year of fiscal year '23. To conclude, we're now taking all canceled official actions to promote our key remaining business, while we're cautiously investing in new initiatives, which will be new growth engines that accelerates our recovery and the pursuit of profitable growth in future.

底線是，我們有信心在 23 財年全年實現營業利潤。總而言之，我們現在正在採取所有取消的官方行動來促進我們的主要剩餘業務，同時我們正在謹慎投資新舉措，這些舉措將成為加速我們未來復甦和追求盈利增長的新增長引擎。

At the same time, we will continue to seek guidance from and cooperate with government authorities in various provinces in China, in alignment with the efforts to comply with the relevant policies, guidelines and relative implementations, regulations and measures, as well as to further adjust our business operations as required.

同時，我們將繼續向中國各省政府部門尋求指導和合作，努力遵守相關政策、方針和相關實施、法規和措施，並進一步調整我們的業務運營需要。

I must say that these forecasts reflect our considerations of latest regulatory measure, as well as our current and preliminary view, which is subject to change.

我必須說，這些預測反映了我們對最新監管措施的考慮，以及我們當前和初步的看法，這些看法可能會發生變化。

This is the end of our fiscal year 2023 Q1 summary. At this point, I would like to open the floor for questions. Operator, please open the call for these.

這是我們 2023 財年第一季度總結的結束。在這一點上，我想請大家提問。接線員，請打開這些電話。

(Operator Instructions) Our first question comes from the line of Mark Li from Citi.

（操作員說明）我們的第一個問題來自 Citi 的 Mark Li。

Congratulations on the profitable status for this quarter. May I ask -- I noticed that we have disclosed the 297,000 non-academic enrollment. I think it's the first time we disclosed. May I know how was the number for last quarter or for last financial year? And do you have any target for this new financial year for the enrollment?

祝賀本季度實現盈利。請問——我注意到我們已經披露了 297,000 名非學術入學人數。我想這是我們第一次披露。我可以知道上個季度或上個財政年度的數字是多少？您對這個新財政年度的招生有什麼目標嗎？

Thank you, Mark. We just launched the non-academic courses. This is a pure new product since the second quarter of last year. So the last year's numbers was very small, very small. So that means this quarter, our non-academic courses business performed very well. And the revenue growth, it was [nil]. So -- and we expect the non-academic courses business will grow at the -- very fast in the future. Mark?

謝謝你，馬克。我們剛剛推出了非學術課程。這是自去年第二季度以來的純新產品。所以去年的數字非常小，非常小。這意味著本季度，我們的非學術課程業務表現非常出色。收入增長，它是[nil]。所以 - 我們預計非學術課程業務將在未來非常快速地增長。標記？

Can you hear me?

你能聽到我嗎？

Yes, we can.

我們可以。

I just want to follow up for the Q1 number. Like would we have any seasonality for the full year? Like can we just multiply the numbers for the Q1 for the full year for the non-academic enrollment? Or could you share a bit more color on this year? Thank you.

我只想跟進 Q1 號碼。就像我們全年會有任何季節性嗎？就像我們可以將全年第一季度的非學術入學人數相乘嗎？或者你能在今年分享更多的顏色嗎？謝謝你。

Yes. For non-academic courses, specifically, actually, the seasonality should not be very apparent. It's not like other business like overseas test prep and domestic test prep business, which is quite seasonal. So I think this will be similar to other K-9, K-12 business, so it should be pretty smooth throughout the whole year. But actually now, this year is the beginning of these new initiatives, so we should start to see each quarter start to contribute more and more revenue, overall revenue from these new businesses.

是的。對於非學術課程，具體來說，實際上，季節性應該不是很明顯。它不像海外備考和國內備考業務那樣的其他業務，具有很強的季節性。所以我認為這將與其他 K-9、K-12 業務類似，因此全年應該會非常順利。但實際上現在，今年是這些新舉措的開始，所以我們應該開始看到每個季度開始貢獻越來越多的收入，這些新業務的整體收入。

Our next question comes from the line of Felix Liu from UBS.

我們的下一個問題來自瑞銀的 Felix Liu。

Congratulations for the very strong results. And it's very impressive amidst the macro weakness and considering the magnitude of the restructuring that you have just completed. So my question is on margins. We noticed that the GP margin of this quarter is very strong. May I know the driver behind? Is it due to mix or any particular cost saving that we have achieved? And is there any margin seasonality that we should keep in mind for the rest of this year?

祝賀你取得了非常好的結果。在宏觀疲軟的情況下，考慮到您剛剛完成的重組規模，這是非常令人印象深刻的。所以我的問題是關於邊緣的。我們注意到本季度的 GP 利潤率非常強勁。我可以知道後面的司機嗎？是因為我們實現了混合還是任何特定的成本節約？在今年剩下的時間裡，我們是否應該記住任何保證金季節性？

Okay. Thank you, Felix. As for the margins, yes, as you saw in this quarter, the gross margin and operating margin has increased both. The increase was mainly driven by following reasons. Number one, the downsizing of the learning centers and the employee layoff led to the lower fixed cost. We did a lot of the learning center close down and the employee layoff last fiscal year. And it makes the -- it drives the margin up for learning centers and the whole group. So this is the first reason.

好的。謝謝你，菲利克斯。至於利潤率，是的，正如您在本季度看到的那樣，毛利率和營業利潤率都增加了。增加主要是由於以下原因。第一，學習中心的縮小和員工裁員導致固定成本降低。上個財政年度，我們關閉了很多學習中心和裁員。它使 - 它提高了學習中心和整個團隊的利潤。所以這是第一個原因。

Secondly, the revenue from the Koolearn from the Dongfang Zhenxuan grew since this quarter -- I think it's this quarter, and it helps the margin up for the whole group.

其次，東方振軒的Koolearn收入自本季度以來有所增長-我認為是本季度，這有助於整個集團的利潤率上升。

And lastly, we didn't do the summer promotion classes this quarter. In last year, the summer quarter, we did some of the summer promotion. And this year, we didn't do that. So it helps the margin up. And so those abovementioned 3 are reasons drive the whole margin up. And as I said, we have entered the stage of the starting a fresh pace of New Oriental. And so as for the remaining business, we keep it there and to keep the profitability of that.

最後，本季度我們沒有開設暑期推廣課程。在去年的夏季季度，我們做了一些夏季促銷活動。而今年，我們沒有這樣做。所以它有助於提高利潤率。因此，上述三個是推動整體利潤率上升的原因。而正如我所說，我們已經進入了新東方開始新步伐的階段。因此，對於剩餘的業務，我們將其保留在那裡並保持其盈利能力。

And as for the new initiatives, as I said, we will invest very cautiously. So the good news for us is the new business is growing very fast and will be profitable very quickly. And so going forward, I think the margin -- I suppose margin-wise, the bottom line-wise, we're confident that we will be profitable in the full year of the 2023. I want to give the guidance of the next quarter Q2's guidance on the margins, Felix.

至於新舉措，正如我所說，我們將非常謹慎地投資。所以對我們來說好消息是新業務增長非常快，並且很快就會盈利。因此，展望未來，我認為利潤率——我認為就利潤率而言，從底線而言，我們有信心在 2023 年全年實現盈利。我想給出下一季度的指導Q2 的利潤指引，Felix。

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

我們的下一個問題來自泰合資本的天侯。

Congratulations. So each line of the business growth is [copay] nearly positive. What's the outlook for each line of the business to grow -- growth outlook for each line of the business going forward? So that is number one.

恭喜。因此，每條業務增長都 [copay] 幾乎是正數。各業務線的增長前景如何——各業務線未來的增長前景如何？所以這是第一。

And also, I'm not sure I know the composition of your revenue. With each line of the business, how much should they contribute to the total revenue? If it's possible, Stephen you give some detail on that part? That's the question.

而且，我不確定我是否知道你的收入構成。對於每條業務線，他們應該為總收入貢獻多少？如果可能的話，斯蒂芬，你能提供一些關於那部分的細節嗎？這就是問題所在。

Yes. Looking at the -- looking ahead into the second quarter or even the quarters after the Q3 and Q4, and I think as I said, this restructuring process now largely completed. And going forward, I think the remaining business, such as the overseas-related business and domestic test prep, college students business will grow, especially for the overseas-related business will grow faster.

是的。展望第二季度，甚至第三季度和第四季度之後的季度，我認為正如我所說，這個重組過程現在已經基本完成。未來，我認為剩下的業務，例如海外相關業務和國內考試準備，大學生業務將增長，特別是海外相關業務將增長更快。

And because in this quarter, we have seen the strong enrollment in growth for the overseas-related business. And the new business, like the learning device and like the summer camp also and the other new businesses is growing very fast. We started the business last year. But this year, we will start to bear fruit of this business.

因為在本季度，我們看到了海外相關業務的強勁增長。而新的業務，像學習設備和夏令營一樣，也和其他新業務一樣增長非常快。我們去年開始做生意。但今年，我們將開始在這項業務上結出碩果。

So the growth will be extremely high in the -- in this -- the whole year. And the Koolearn, Dongfang Zhenxuan, I'm afraid I can't share the numbers of the Koolearn. But I can say Dongfang Zhenxuan has developed an innovative plan like a broadcasting model of the knowledge sharing and the selling agriculture and other products. And this quarter, Dongfang Zhenxuan achieved remarkable the official results and start to contribute notable revenue and profit to the group. And going forward, I think Dongfang Zhenxuan will do better because look at the trend and the very good response from the customers. And yeah, this is the trends of the different business lines.

因此，這一年的增長將非常高。還有酷學，東方振軒，怕是不能分享酷學的號碼。但我可以說，東方振軒制定了一個創新的計劃，比如知識共享和銷售農產品等產品的傳播模式。而本季度，東方振軒取得了驕人的業績，開始為集團貢獻可觀的收入和利潤。展望未來，我認為東方振軒會做得更好，因為看趨勢和客戶的非常好的反應。是的，這是不同業務線的趨勢。

As for the revenue contribution for the whole year -- for the new year, the -- I mean there will be revenue contribution, I think the overseas-related business will contribute 30% of the total revenue. And K-12 include the traditional business, and the new business will contribute 45% of total revenue.

至於全年的收入貢獻——對於新的一年，我的意思是會有收入貢獻，我認為海外相關業務將貢獻總收入的30%。而K-12包括傳統業務，新業務將貢獻45%的總收入。

And the college students, the test prep business will contribute 5% of the revenue. And all the others, including Koolearn and the others will contribute the more than 30% of total revenue because Koolearn grows very fast, and the other small business growth mostly is okay. So this is the breakdown of revenue contribution of the -- from different business lines. Yes.

而大學生，備考業務將貢獻5%的收入。而所有其他的，包括 Koolearn 和其他人，將貢獻超過 30% 的總收入，因為 Koolearn 增長非常快，其他小業務增長大多是可以的。因此，這是來自不同業務線的收入貢獻的細分。是的。

(Operator Instructions) So we'll move to our next question from Candis Chan from Daiwa.

（操作員說明）所以我們將轉到大和的 Candis Chan 的下一個問題。

Congratulations on the very strong set of results. My question is related to the new business intelligence learning system and devices. And may I know who are our target customers? And the 130,000 active users, are they mainly charged by subscription? And I just wanted to see whether this part of revenue will be recurring. And how significant the revenue contribution could be for this new business?

祝賀取得了非常強勁的結果。我的問題與新的商業智能學習系統和設備有關。我可以知道誰是我們的目標客戶嗎？而13萬活躍用戶，主要是通過訂閱收費嗎？我只是想看看這部分收入是否會經常出現。對這項新業務的收入貢獻有多大？

Yes. The intelligent learning device system actually is something new after we comply with the government policy terminated the academic training for K-9 students. But we realized that we still got some students have the demand for studying the academic subjects. So we use -- actually, we have the content strength and targeted those students who have the demand for academic study, and we use our technology and content strength to embed our existing, like, digitalized content into the hardware and hand over to students and let students to use the study machine to do the self study. And it can actually help students to enhance their academic results and also to help them to drive them to enhance their proactive study habits.

是的。智能學習設備系統實際上是我們遵照政府政策終止對K-9學生的學術培訓後的新事物。但我們意識到，我們仍然有一些學生有學習學術科目的需求。所以我們使用——實際上，我們有內容實力，針對那些有學術學習需求的學生，我們利用我們的技術和內容實力，將我們現有的，比如數字化的內容嵌入到硬件中，並交給學生和讓學生使用學習機進行自學。它實際上可以幫助學生提高他們的學業成績，也可以幫助他們推動他們提高積極的學習習慣。

So this is something -- this is a new business model. And nowadays, we are mostly using the rent the device to students and let customers subscribe the content from the platform. And we believe that this revenue -- this business should be -- generate recurring revenue because students, if they think the machine is helpful and they can use it to do the efficient self-study, then they can resubscribe, continue to subscribe new content from the platform.

所以這就是——這是一種新的商業模式。而現在，我們主要是把設備租給學生，讓客戶從平台上訂閱內容。我們相信這個收入——這個業務應該是——產生經常性收入，因為學生，如果他們認為這台機器很有幫助，他們可以用它來進行有效的自學，那麼他們可以重新訂閱，繼續訂閱新內容從平台。

Yes. And sorry, let me clarify the revenue contribution for the new year. So the other -- the revenue from others will contribute 20% of the total revenue. So yes, sorry.

是的。對不起，讓我澄清一下新一年的收入貢獻。所以另一個——來自其他人的收入將佔總收入的 20%。所以是的，對不起。

Our next question comes from the line of Hongyi Cao from CICC.

我們的下一個問題來自中金公司曹宏義的話。

First, congratulations on the strong performance for the first quarter. So I will -- I have a follow-up question. You mentioned the revenue breakdown before. And I wonder, can you share the number contributed by the non-academic tutoring? And maybe could you share more color on what kind of courses you see it has the most strong performance?

首先，祝賀第一季度的強勁表現。所以我會 - 我有一個後續問題。你之前提到過收入明細。我想知道，你能分享一下非學術輔導貢獻的數字嗎？也許你能分享更多關於你認為什麼樣的課程表現最強的顏色？

The numbers -- I think Sisi will give you the numbers of the non-academic courses. You ask the revenue contribution for Q1 or the full year?

數字——我想 Sisi 會給你非學術課程的數字。您問第一季度或全年的收入貢獻？

For Q1 period.

對於第一季度。

For Q1, Sisi.

對於第一季度，思思。

All the new business together are contributing roughly about -- yes for -- sorry, let me check the detailed numbers. For all new business together are contributing roughly about 16% of total revenue. And all the new businesses, non-academic tutoring is the biggest one, has the biggest contribution, and next to it is the learning device business.

所有新業務共同貢獻了大約 - 是的 - 抱歉，讓我查看詳細數字。所有新業務共同貢獻了大約 16% 的總收入。而所有的新業務中，非學業輔導是最大的，貢獻最大的，其次是學習器業務。

Yes. And I think the non-academic tutoring focus on the help the students to improve their innovative ability and comprehensive quality, and we do have a lot of subject like the reading, programming or robot design, presentation skill, art, sports. Now the reading and programming contribute a little bit more revenue within the all products.

是的。而且我認為非學術輔導側重於幫助學生提高創新能力和綜合素質，我們確實有很多科目，比如閱讀、編程或機器人設計、演講技巧、藝術、體育。現在閱讀和編程在所有產品中貢獻了更多的收入。

Our next question will come from the line of Lucy Yu from Bank of America.

我們的下一個問題將來自美國銀行的 Lucy Yu。

Two questions. First is the first quarter revenue breakdown. You just mentioned the new business is 16%. How about the rest, like test prep, consulting, et cetera? Second question is on the second quarter revenue guidance, what is the breakdown of different business in the second quarter?

兩個問題。首先是第一季度的收入明細。你剛才提到新業務是16%。其他的呢，比如備考、諮詢等等？第二個問題是關於第二季度的收入指導，第二季度不同業務的細分是什麼？

Yes. For Q1, I can give you a rough contribution. So for overseas-related business, like test prep and consulting together, contributing roughly about 24%, 25% of total revenue. And we have a new business roughly about 16%, and all the (technical difficulty) adult university students business, tutoring, and new business together contributing roughly like 55%, 55%, 57% of total revenue. And the remaining others mostly the online platform and some other businesses like book, content, et cetera. Okay.

是的。對於 Q1，我可以給你一個粗略的貢獻。所以對於海外相關的業務，比如備考和諮詢，大約佔總收入的 24%、25%。我們有大約 16% 的新業務，所有（技術難度）成人大學生業務、輔導和新業務共同貢獻了大約 55%、55%、57% 的總收入。其餘的主要是在線平台和其他一些業務，如書籍、內容等。好的。

And also...

並且...

Okay. The Q2, our Q2 revenue guidance breakdown. The overseas-related business will contribute 20% of total revenue. And college and university students business contributed [16%] of total revenue. And the K-12, and the traditional, and new businesses will contribute 40% of the revenue. The others, 30 -- roughly 25%, 30% of total revenue, included the Koolearn and Dongfang Zhenxuan.

好的。第二季度，我們的第二季度收入指導細分。海外相關業務將貢獻總收入的20%。大學生業務貢獻了總收入的[16%]。 K-12 以及傳統業務和新業務將貢獻 40% 的收入。其他 30 人——大約佔總收入的 25%，佔總收入的 30%，包括 Koolearn 和東方振軒。

Others.

其他。

Next follow-up question comes from the line of Tian Hou from T. H. Capital.

下一個問題來自泰合資本的田侯的話。

Just another question. So for the -- is the business really totally new? So what's the different lines seasonality -- business seasonality? Do they have a different seasonality?

只是另一個問題。那麼對於 - 業務真的是全新的嗎？那麼不同的線路季節性——業務季節性是什麼？他們有不同的季節性嗎？

Most of the new business don't have the seasonality impact. But for the -- I think the only one new business, the summer camp and the research camp business do have the seasonality. Summer and winter, the revenue contributed more. But as you know, while launching some weekends, the camp -- the study camp during the weekend, so the seasonality impact becomes less than before.

大多數新業務沒有季節性影響。但是對於--我認為唯一的一項新業務，夏令營和研究營業務確實具有季節性。夏季和冬季，收入貢獻更大。但是如你所知，在一些週末開展的同時，夏令營——週末的學習營，所以季節性的影響變得比以前小了。

We are now approaching the end of the conference call. I will now turn the call over to New Oriental's Executive President and CFO, Mr. Stephen Yang, for his closing remarks.

我們現在接近電話會議的尾聲。現在，我將把電話轉給新東方執行總裁兼首席財務官 Stephen Yang 先生作閉幕詞。

Again, thank you for joining us today. If you have any further questions, please do not hesitate to contact me or any of our Investor Relations representatives. Thank you.

再次感謝您今天加入我們。如果您還有任何問題，請隨時與我或我們的任何投資者關係代表聯繫。謝謝你。

(technical difficulty) today's call. Thank you for attending today's presentation. You may now disconnect your lines.

（技術難度）今天的電話。感謝您參加今天的演講。您現在可以斷開線路。