New Oriental Education & Technology Group Inc (EDU) 2023 Q2 法說會逐字稿

Good evening, and thank you for standing by for New Oriental's Fiscal Year 2023 Second Quarter Results Earnings Conference Call. (Operator Instructions). Today's conference is being recorded.

晚上好，感謝您支持新東方 2023 財年第二季度業績收益電話會議。 （操作員說明）。今天的會議正在錄製中。

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

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 Second 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, Stephen Yang, Executive President and Chief Financial Officer, and I will share New Oriental's latest earnings results and business updates in detail with you. After that, Stephen and I will be available to answer your questions.

謝謝。大家好，歡迎來到新東方2023財年第二季度財報電話會議。我們這一時期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。今天，我將與執行總裁兼首席財務官楊振寧一起為大家詳細分享新東方最新的財報和業務動態。之後，斯蒂芬和我將有空回答您的問題。

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. 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. 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.

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的風險和不確定性。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。新東方不承擔任何更新任何前瞻性陳述的義務，適用法律要求的除外。提醒一下，這次會議正在錄製中。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'll now first turn the call over to Mr. Yang Stephen. Please go ahead.

我現在先把電話轉給楊斯蒂芬先生。請繼續。

Thank you, Sisi. Hello, everyone, and thank you for joining us on the call. This second quarter is a successful phase of manifestation as we have turned over a new leaf in our business and embarked on innovative journey for rich business opportunities since the beginning of fiscal year 2023.

謝謝你，茜茜。大家好，感謝您加入我們的電話會議。自 2023 財年開始以來，第二季度是一個成功的體現階段，因為我們已經翻開了業務的新篇章，並開始了創新之旅以獲取豐富的商機。

Before going into details of our financial performance for this quarter, I would like to take this opportunity to extend our gratitude to those who have been delivering and supporting New Oriental along the way. I'm delighted to share with you that after a year of restructuring process, New Oriental has successfully generated fruitful yields from our new business ventures, combined with our existing business and innovative business opportunity.

在詳細介紹本季度的財務業績之前，我想藉此機會向一路以來一直交付和支持新東方的人們表示感謝。我很高興與大家分享，經過一年的重組過程，新東方成功地從我們的新業務中獲得了豐碩的成果，並結合了我們現有的業務和創新的業務機會。

Despite the seasonality of some of our major businesses, which has historically resulted in a slower period for every second quarter, it's immensely encouraging to see that we have achieved a meaningful profitability and a better-than-expected margins in the second quarter. We have achieved a non-GAAP operating margin of 2.6% for this quarter as compared to negative 112.0% in the same period of prior fiscal year, which was characterized by the several significant one-off expenses incurred from class cancellations, school closures and employee layoffs.

儘管我們的一些主要業務存在季節性，從歷史上看，這導致每個第二季度都有一個較慢的時期，但看到我們在第二季度實現了可觀的盈利能力和好於預期的利潤率，這令人非常鼓舞。本季度我們實現了 2.6% 的非美國通用會計準則營業利潤率，而上一財年同期為負的 112.0%，其特點是課程取消、學校關閉和員工產生的多項重大一次性費用裁員。

Our key remaining business have continued to demonstrate remarkable resilience. In particular, overseas test prep business and overseas study consulting business have recorded remarkable year-over-year revenue increase as global COVID restriction eases and overseas study market is recovering. Our solid profitability, strong performing remaining business lines and then emerging new business initiatives in this quarter have again strengthened our confidence in preferring innovative endeavors and profitable growth through the rest of the year.

我們的主要剩餘業務繼續表現出非凡的彈性。特別是，隨著全球COVID-19限制措施的放鬆和留學市場的複蘇，海外備考業務和海外留學諮詢業務的收入同比增長顯著。我們穩健的盈利能力、表現強勁的其餘業務線以及本季度出現的新業務計劃再次增強了我們在今年餘下時間選擇創新努力和盈利增長的信心。

Now I would like to spend some time to talk about the quarter's performance across our remaining business lines and new initiatives to you in detail.

現在我想花點時間詳細談談本季度我們剩餘業務線的表現和新舉措。

Our key remaining business have achieved promising trends, while our new initiatives have shown a positive momentum. Breaking it down, the overseas test prep business recorded a revenue increase of 17% in dollar terms, or 30% in RMB terms year-over-year for the second quarter. The overseas study consulting business recorded revenue increase of about 14% in dollar terms or 27% in RMB terms year-over-year for the second quarter. The adults and university students business recorded a revenue decrease of 9% in dollar terms or 2% increase in RMB terms year-over-year for the second-quarter.

我們的主要剩餘業務取得了可喜的趨勢，而我們的新舉措也顯示出積極的勢頭。細分來看，第二季度海外備考業務收入以美元計算同比增長17%，以人民幣計算同比增長30%。留學諮詢業務第二季度收入按美元計算同比增長約14%，按人民幣計算同比增長27%。成人和大學生業務第二季度收入按美元計算同比下降 9%，按人民幣計算同比增長 2%。

As for our new business initiatives, as mentioned in the past quarter, we have launched several new initiatives, which mostly revolves around facilitating students all-round development. I'm glad to share with you that these new initiatives have further exceeded our expectations by sustaining a positive momentum and generating meaningful profits to the company.

至於我們的新業務舉措，正如上個季度所述，我們推出了多項新舉措，主要圍繞促進學生全面發展展開。我很高興與您分享，這些新舉措通過保持積極的勢頭並為公司創造可觀的利潤，進一步超出了我們的預期。

Firstly, the non-academic tutoring business, which we have rolled out in over 60 cities, focused on cultivating students' innovative ability and comprehensive quality. We're happy to see increased market penetration in both markets we have tapped into, especially higher-tier cities with a total of 477,000 enrollments recorded in this quarter. The top 10 cities in China have contributed about 60% of revenue of this business.

一是在60多個城市開展非學歷輔導業務，著力培養學生的創新能力和綜合素質。我們很高興看到我們進入的兩個市場的市場滲透率都有所提高，尤其是本季度共有 477,000 人註冊的高線城市。中國前10大城市貢獻了該業務約60%的收入。

Secondly, intelligence learning system and device business, is a service designed to provide a tailored digital learning experience for students. It'll utilize our path to teaching experience, data and technology to provide a personalized targeted learning and exercise content. Our continuous investments in technology has fueled our comparative edge, which drives our navigation amidst the chain of challenges from the last year.

其次，智能學習系統和設備業務，是一項旨在為學生提供量身定制的數字學習體驗的服務。它將利用我們的教學經驗、數據和技術路徑來提供個性化的有針對性的學習和練習內容。我們對技術的持續投資增強了我們的比較優勢，推動我們在去年的一系列挑戰中前行。

Together with our teachers monitoring and accessing the learning curve for students at the back-end system, this new innovative education service not only greatly improves students learning efficiency, but also cultivates students proactive learning habits. We have tested its adoption in over 60 cities with 108,000 active paid users in this quarter and are delighted to see improved customer retention and scalability of this new business. The revenue contribution from top 10 cities in China is around 60%.

加上我們的老師在後台系統監控和訪問學生的學習曲線，這種創新的教育服務不僅大大提高了學生的學習效率，還培養了學生主動學習的習慣。本季度我們已經在 60 多個城市測試了它的採用情況，擁有 108,000 名活躍付費用戶，並且很高興看到這項新業務的客戶保留率和可擴展性有所提高。中國前10名城市的收入貢獻在60%左右。

Last but not least, our smart education business, which comprises smart teaching, smart hardware, science, technology and innovation education and other service serves local governments, education authorities, schools and kindergartens. Our educational material utilizes the smart study solutions, the self-learning system, which leverages advanced technology, enables students to have complete control over the pace and the flexibility of the learning age where remote learning becomes increasingly mainstream.

最後但同樣重要的是，我們的智慧教育業務包括智慧教學、智能硬件、科技創新教育和其他服務，服務於地方政府、教育部門、學校和幼兒園。我們的教材採用智能學習解決方案，自主學習系統利用先進技術，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。

We also offer exam prep courses designed for students with junior college diplomas to obtain bachelor's degrees. The above-mentioned business has been gaining wide traction and contributes the overall growth of the company, and has attained instrumental profit since the last quarter.

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。上述業務受到廣泛關注，為公司的整體增長做出貢獻，自上個季度以來已實現可觀的利潤。

Coming to our OMO system. We continuously invest in developing and revamping our OMO teaching platform and have leveraged our educational infrastructure, and technology strength over the remaining business and new initiatives to provide more advanced and diversified education service to our customers for all ages. Our OMO system has been a core support to our business, especially with some of the strict social control measures were implemented in the past months. We have invested a total of $21 million in the quarter on our OMO teaching platform, which provide us the flexibility to continue to offering high-quality service to students during the pandemic.

來到我們的OMO系統。我們不斷投資開發和改造我們的 OMO 教學平台，並利用我們的教育基礎設施、剩餘業務的技術實力和新舉措，為所有年齡段的客戶提供更先進、更多元化的教育服務。我們的 OMO 系統一直是我們業務的核心支持，特別是在過去幾個月實施了一些嚴格的社會控制措施。本季度我們在 OMO 教學平台上總共投資了 2100 萬美元，這使我們能夠靈活地在大流行期間繼續為學生提供高質量的服務。

Now I would like to give you all an update on Koolearn's latest performance. In the first half of this fiscal year, Koolearn has achieved incremental breakthroughs in both business operations and financial performance. This significant progress was made as a result of Koolearn's strategic transformation from focusing on online education to livestreaming e-commerce. In 2021, Koolearn expanded its livestreaming e-commerce business and established Dongfang Zhenxuan, which has since become a well-known platform for promoting healthy, top-quality and cost-effective products to the public.

現在我想向大家介紹一下新東方在線的最新表現。本財年上半年，新東方在線在業務運營和財務業績上實現增量突破。這一重大進展得益於新東方在線從專注在線教育向直播電商的戰略轉型。 2021年，新東方在線拓展直播電商業務，成立東方臻選，成為向大眾推廣健康、優質、高性價比產品的知名平台。

The platform has formed a part of the tight supply chain management and after-sales service system, which strictly abide by a set of relevant laws and regulations. Leveraging our deep understanding of customer needs, Dongfang Zhenxuan continues to expand its product selection and SKUs through proactive cooperation with third parties, coupled with the development of our Dongfang Zhenxuan private labeled products. The platform's business developments has gratefully benefited from the maturity of China social infrastructure and the contributions and support from the community.

該平台已形成嚴密的供應鏈管理和售後服務體系的一部分，嚴格遵守一整套相關法律法規。憑藉我們對客戶需求的深刻理解，東方臻選通過與第三方的積極合作以及東方臻選自有品牌產品的開發，繼續擴大其產品選擇和 SKU。平台業務的發展，得益於中國社會基礎設施的成熟和社會各界的貢獻與支持。

To summarize, the Koolearn growth and profitability with our financial performance, for the first 6 months of this fiscal year, Koolearn recorded the revenue of plus nearly RMB 2,080.1 million , which represents a 590.2% increase from revenues from continuing operations of RMB 301.4 million in the same-period of last prior fiscal year. Koolearn recorded RMB 585.3 million of net profits, a 638.5% increase from the net loss from the continuing operation of RMB 108.7 million in the same-period of prior fiscal year.

總而言之，新東方在線的增長和盈利能力以及我們的財務表現，在本財年的前 6 個月，新東方在線錄得近 20.801 億元人民幣的收入，比 3.014 億元人民幣的持續經營收入增長了 590.2%上一財政年度同期。新東方在線錄得淨利潤人民幣5.853億元，較上一財年同期的持續經營淨虧損人民幣1.087億元增加638.5%。

In the first 6+ months of fiscal year, the gross profit of Koolearn reached around RMB 982.5 million, accounting for 47.2% in terms of the GP margin. As we continuously map the platform's strategic transformation, the fast-growing Dongfang Zhenxuan is also committed to give back to customers and the community. Since its launch, Dongfang Zhenxuan has stood firm to not charge commissions from 0customers or any fees. And have always taken close reference to industry standards, focusing on its partnerships, the mostly beneficial long-term collaboration with various parties, so as to maximize benefits to customers.

本財年前6個月，新東方在線的毛利達到約9.825億元人民幣，按毛利率計佔47.2%。在不斷謀劃平台戰略轉型的同時，快速成長的東方振軒也致力於回饋客戶和社會。東方臻選自上線以來，就堅持不向0客戶收取佣金，不收取任何費用。並一直密切參考行業標準，注重其合作夥伴關係，多與各方長期合作，為客戶帶來最大利益。

Dongfang Zhenxuan also ensures to attain the cost-effective performance as one of its development principal. On one hand, Dongfang Zhenxuan focuses on enhancing product capability. We're continuing to establish its cultural content. On the other hand, Dongfang Zhenxuan has also organized to diversify -- diverse outdoor livestreaming activities to promote special agriculture products and contribute to the cultural tourism. Through its unyielding aspiration to create value in related industries, which have also attracted and retained a larger pool of talents, cooperators as well as followers and members, Dongfang Zhenxuan has successfully received in return meaningful revenues and a loyal customer base during the reporting period.

東方振軒也將確保性價比作為其開發主體之一。一方面，東方震炫著力提升產品力。我們正在繼續建立它的文化內容。另一方面，東方振軒還舉辦了形式多樣的戶外直播活動，推介特色農產品，助力文化旅遊。憑藉在相關行業創造價值的不懈追求，也吸引並留住了更多的人才、合作者以及追隨者和會員，報告期內，東方振軒成功獲得可觀的收入回報和忠實的客戶群。

With regard to the company's latest financial position, I'm confident to share with you that the company is in a healthy financial status with cash and cash equivalents, term deposits and short-term investments totaling approximately $4.2 billion. On July 26, 2022, the company and the Board of Directors authorized a share repurchase of up to $400 million of the company ADS or common shares during the period from July 28, 2022 through May 31, 2023. As of January 16, 2023, the company repurchased aggregate of approximately 3.1 million ADS for approximately $79 million from the open market under the share repurchase program.

關於公司的最新財務狀況，我有信心與大家分享，公司財務狀況良好，現金和現金等價物、定期存款和短期投資總額約為 42 億美元。 2022年7月26日，公司和董事會授權在2022年7月28日至2023年5月31日期間回購最多4億美元的公司ADS或普通股。截至2023年1月16日，根據股票回購計劃，公司以約 7900 萬美元的價格從公開市場回購了總計約 310 萬股美國存託憑證。

Now I'll 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，與您分享主要的財務信息。思思，請繼續。

Okay. Now I'd like to walk you through the other key financial details for this quarter. Operating cost and expenses for the quarter were $640.7 million, representing a 55.1% decrease year-over-year. Non-GAAP operating costs and expenses for the quarter, which excludes share-based compensation expenses, were $621.9 million, representing a 55.4% decrease year-over-year. The decrease was primarily due to the reduction of facilities and number of staff as a result of the downsizing in the fiscal year 2022.

好的。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支出為 6.407 億美元，同比下降 55.1%。本季度的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 6.219 億美元，同比下降 55.4%。減少的主要原因是由於 2022 財年的裁員導致設施和員工人數減少。

Cost of revenue decreased by 31.6% year-over-year to $336.2 million. Selling and marketing expenses decreased by 15% year-over-year to $95.5 million. G&A expenses for the quarter decreased by 74.6% year-over-year to $209 million. Non-GAAP G&A expenses, which excludes share-based compensation expenses, were at $190.9 million, representing a 75.7% decrease year-over-year. Total share-based compensation expenses, which were allocated to related operating costs and expenses decreased by 39.5% to $18.8 million in the second fiscal quarter of 2023.

收入成本同比下降 31.6% 至 3.362 億美元。銷售和營銷費用同比下降 15% 至 9550 萬美元。本季度的 G&A 費用同比下降 74.6% 至 2.09 億美元。不包括基於股份的補償費用的非 GAAP G&A 費用為 1.909 億美元，同比下降 75.7%。 2023 年第二財季，分配給相關運營成本和費用的基於股份的薪酬支出總額下降 39.5% 至 1,880 萬美元。

Operating loss was $2.5 million compared to a loss of $768.1 million in the same period of prior fiscal year. Non-GAAP income from operations for the quarter was $16.3 million compared to a loss of $737.1 million in the same period of prior fiscal year. Net income attributable to New Oriental for the quarter was $0.7 million compared to the loss of $936.5 million in the same period of last fiscal year. Basic and diluted net income per ADS attributable to New Oriental were $0 and $0 respectively.

營業虧損為 250 萬美元，而上一財年同期為虧損 7.681 億美元。本季度非美國通用會計準則運營收入為 1630 萬美元，而上一財年同期為虧損 7.371 億美元。本季度歸屬於新東方的淨利潤為 70 萬美元，而上一財年同期為虧損 9.365 億美元。歸屬於新東方的每 ADS 基本和稀釋淨收益分別為 0 美元和 0 美元。

Non-GAAP net income attributable to New Oriental for the quarter was $17.8 million compared to the loss of $901.6 million in the same period of last year. Non-GAAP basic and diluted net loss per ADS attributable to New Oriental was $0.11 and $0.10 respectively. Net cash-flow generated from operation for the second fiscal quarter of 2023 was approximately $173.7 million and capital expenditure for the quarter were $11.4 million.

本季度歸屬於新東方的非美國通用會計準則淨利潤為 1780 萬美元，而去年同期為虧損 9.016 億美元。歸屬於新東方的每份美國存託憑證的非美國通用會計準則基本和攤薄淨虧損分別為 0.11 美元和 0.10 美元。 2023 年第二財季運營產生的淨現金流約為 1.737 億美元，本季度資本支出為 1140 萬美元。

Turning to the balance sheet. As of November 30, 2022, New Oriental had cash and cash equivalents of $1,029.9 million. In addition, the company has $1,033.2 million in term deposits and $2,145.7 million in short-term investments.

轉向資產負債表。截至2022年11月30日，新東方擁有現金及現金等價物10.299億美元。此外，該公司還有 10.332 億美元的定期存款和 21.457 億美元的短期投資。

New Oriental's deferred revenue balance, which is cash collected from registered students for courses and recognized proportionally as revenue as the instructions were delivered at the end of the second quarter of fiscal year 2023 was $1,139.1 million, an increase of 6.9% as compared to $1,065.8 million at the end-of-the second-quarter of fiscal year 2022.

新東方的遞延收入餘額為 11.391 億美元，即從註冊學生那裡收取的課程現金，並在 2023 財年第二季度末按比例確認為收入，為 11.391 億美元，比 10.658 億美元增長 6.9%在 2022 財年第二季度末。

Now, I'll hand over to Stephen again to go through our outlook and guidance with you.

現在，我將再次交給斯蒂芬，與您一起了解我們的展望和指導。

Thank you, Sisi. Looking ahead into the rest of fiscal year 2023 with the restructuring process largely completed and our new business in their early stage, we expect our school network and geographic coverage to stabilize. The company remains tireless in seeking new opportunities with greater flexibility and strong cash flows. We're confident in the sustainable profitability of all our remaining key businesses, as well as the growth and the prospects of our new initiatives.

謝謝你，茜茜。展望 2023 財年的剩餘時間，重組過程基本完成，我們的新業務處於早期階段，我們預計我們的學校網絡和地理覆蓋範圍將穩定下來。公司不懈地尋求具有更大靈活性和強勁現金流的新機會。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 business, as we observed in the first-half of this fiscal year, the encouraging performance that these businesses have achieved proves that we are heading towards the right direction and we firmly believe that business will be able to maintain a upward growth trajectory and generates meaningful profits to the company in fiscal year 2023.

對於我們的新業務，正如我們在本財年上半年觀察到的那樣，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，我們堅信業務將能夠保持向上的增長軌跡並在 2023 財年為公司帶來可觀的利潤。

As for evolving pandemic development in China, since late November 2022 many cities are experiencing certain level of disruption on business operations. Although we're expecting a negative impact, our financials in the coming 1 or 2 quarters, we remain confident and optimistic that the overall impact will be temporary and manageable. Hence, we expect total net revenue in the third-quarter of the fiscal year 2023 to be in the range of $702.8 million to $719.8 million, representing a year-over-year increase in the range of 14% to 17%. The projects of the increase of revenue in our assumptions of the currency RMB is expected to be in the range of 24% to 27%.

至於中國不斷演變的大流行病發展，自 2022 年 11 月下旬以來，許多城市的業務運營都經歷了一定程度的中斷。儘管我們預計未來 1 或 2 個季度的財務狀況會受到負面影響，但我們仍然有信心和樂觀地認為整體影響將是暫時的且可控的。因此，我們預計 2023 財年第三季度的總淨收入將在 7.028 億美元至 7.198 億美元之間，同比增長 14% 至 17%。我們假設貨幣為人民幣的收入增長項目預計在 24%至 27%的範圍內。

As the profitability we recorded in this fiscal quarter has reaffirmed our success and dedication in turning a new page and generating profits for the rest of the year, bottom-line wise, we're confident in achieving greater operating profit in the full year of fiscal year 2023.

由於我們在本財政季度記錄的盈利能力再次證明了我們在翻開新的一頁並為今年餘下時間創造利潤方面的成功和奉獻精神，我們有信心在本財政年度實現更高的營業利潤2023 年。

To conclude, we're now taking multipronged operational actions to promote our key remaining businesses while we're cautiously investing in new initiatives, which will remain new growth engines that accelerates our recovery and the pursuit of profitable growth. 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 and regulations as well as to further adjust our business operations as required.

總而言之，我們現在正在採取多管齊下的運營行動來促進我們剩餘的關鍵業務，同時我們正在謹慎地投資於新舉措，這些舉措將仍然是加速我們復甦和追求盈利增長的新增長引擎。同時，我們將繼續尋求中國各省政府部門的指導和配合，努力遵守相關政策法規，並根據需要進一步調整我們的業務運營。

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

我必須說，這些預期和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 Q2 summary. At this point, I would like to open the floor for questions. Operator, please open the call for this.

這是我們 2023 財年第二季度總結的結尾。現在，我想開始提問。接線員，請為此打開呼叫。

(Operator Instructions) Our first question comes from the line of Felix Liu from UBS.

（操作員說明）我們的第一個問題來自瑞銀的 Felix Liu。

Congratulations on the on the topline as well as the guidance. My question is on the COVID impact. I know that COVID has come pretty viciously in December, but now we're past the peak. So I'm just wondering how has COVID impacted our February quarter. If there is any quantifiable metric that will be very helpful. And my second question is, what's the expectation of our various businesses from here? If you were to rank the fastest to more stable business, how would you rank your various business segments?

恭喜上線以及指導。我的問題是關於 COVID 的影響。我知道 COVID 在 12 月來得非常兇猛，但現在我們已經過了高峰期。所以我只是想知道 COVID 如何影響我們的二月季度。如果有任何可量化的指標將會非常有幫助。我的第二個問題是，我們的各種業務對這裡有何期望？如果您要對最快的業務和更穩定的業務進行排名，您會如何對各個業務部門進行排名？

Thank you, Felix. Yes, as for the evolving pandemic development in China since the last December, yes, I know the peak in the past, right. And yes, in many cities, I think some of our business are effectively impacted. But as our current estimation, I think the net impact is small and so we remain confident and I'm optimistic that overall impact from the pandemic will be temporary and manageable. And yes, you look at our guidance for Q3 is very strong. And the different business lines, the revenue outlook for Q3, right -- can you repeat the second question? Yes.

謝謝你，菲利克斯。是的，至於去年 12 月以來中國不斷演變的流行病發展，是的，我知道過去的高峰，對吧。是的，在許多城市，我認為我們的一些業務受到了有效影響。但正如我們目前的估計，我認為淨影響很小，因此我們仍然有信心，我樂觀地認為大流行的總體影響將是暫時的和可控的。是的，你看我們對第三季度的指導非常強大。還有不同的業務線，第三季度的收入前景，對——你能重複第二個問題嗎？是的。

Yes. So maybe for Q3 and for the whole year, which are the business lines that you think will grow the fastest and which are the ones that are more stable?

是的。那麼也許對於第三季度和全年，您認為哪些業務線增長最快，哪些業務線更穩定？

I think that -- we have 2 kinds of business. The number one is the traditional business, the remaining business, the overseas related business including the overseas test prep and consulting business, which contributes the 24%, 25% of the total revenue. What I'm saying is that for the whole year, 24% or 25% of the total revenue. I think we got suffered the impact from the last year. But this year, I think we're seeing the revenue growth is booming. Things are 2 quarters above.

我認為——我們有兩種業務。排名第一的是傳統業務，其餘業務，海外相關業務包括海外備考和諮詢業務，貢獻了總收入的24%、25%。我的意思是，全年佔總收入的 24% 或 25%。我認為我們受到了去年的影響。但今年，我認為我們看到收入增長正在蓬勃發展。事情在 2 個季度以上。

And the new business within the schools, we started the new business last year, the year before last year, right? November 2020, yes, last fiscal year. And the growth is, we just started the business 1 year ago. The growth is extremely high. So this isn't the -- ranks #1, the revenue growth within all business lines and also we do have the Dongfang Zhenxuan. And Dongfang Zhenxuan, they reported, the management of Dongfang Zhenxuan reported the first-half year reports today and you saw the growth, you saw the numbers. And so we're excited for the exciting performance for Dongfang Zhenxuan. And so, yes, the new businesses within the EDU side, the K-12 schools and Dongfang Zhenxuan are the 2 top performers within the business lines, Felix.

還有學校內部的新業務，我們是去年，前年才開始新業務的，對吧？ 2020 年 11 月，是的，上一財年。增長是，我們 1 年前才開始這項業務。增長非常高。所以這不是 - 排名第一，所有業務線的收入增長，我們也有東方振軒。還有東方振軒，他們報告說，東方振軒的管理層今天報告了上半年的報告，你看到了增長，你看到了數字。因此，我們為東方振軒的精彩表演感到興奮。所以，是的，EDU 方面的新業務，K-12 學校和東方振軒是業務線中表現最好的 2 個，Felix。

Got it. Congratulations on the results again.

知道了。再次祝賀結果。

Our next question comes from the line of [Kan Wang] from CICC.

我們下一個問題來自中金公司【王侃】的台詞。

So congrats on the profitable status for this quarter. And my question is, since COVID restrictions have been lifted in China, do we expect higher-growth rates of our new business line in the next quarter and also in the next fiscal year? And is there any new opportunities within our new initiatives business?

因此，祝賀本季度的盈利狀況。我的問題是，由於中國取消了 COVID 限制，我們是否預計下一季度和下一財年我們新業務線的增長率會更高？我們的新舉措業務中是否有任何新機會？

Yes, for the new business, yes, as we saw in this quarter and last quarter, the encouraging performance proves that we are heading towards the right direction and we firmly believe that the new business will be -- we will be able to maintain upward growth in Q3 and Q4 and the next fiscal year, what I mean is fiscal year 2024. And we started the new business last year, but I think we ramped up the new business very quickly. And as a good news for us is the merger for the new business in this quarter, it's already over 10%. So think about that. We started this business last year and took us to spend like 2 to 3 quarters to get to breakeven point and then we make it profitable. So it sounds very good. And I think we are on the good track and I think management of New Oriental will pay more efforts where it creates more opportunity, business opportunities to develop the new business as it is in Dongfang Zhenxuan and the new business in this year. And so we will do more -- to do more creative in future.

是的，對於新業務，是的，正如我們在本季度和上一季度所看到的那樣，令人鼓舞的業績證明我們正朝著正確的方向前進，我們堅信新業務將 - 我們將能夠保持向上第三季度和第四季度以及下一個財政年度的增長，我的意思是 2024 財政年度。我們去年開始了新業務，但我認為我們很快就開始了新業務。對我們來說，好消息是本季度新業務的合併，已經超過 10%。所以想想看。我們去年開始這項業務，花了大約 2 到 3 個季度來達到盈虧平衡點，然後我們讓它盈利。所以聽起來非常好。而且我認為我們正處於良好的軌道上，我認為新東方的管理層將付出更多的努力，創造更多的機會，發展新業務的商機，就像在東方振軒和今年的新業務一樣。所以我們會做更多——在未來做更多有創意的事情。

Yes. Actually the new pandemic situation with the gradual opening up after these recent developments of the new situation, I think, probably we can see more opportunities in some certain kind of new initiatives such as the study tours and research camping business that we mentioned, 1 to 2 quarters ago that as one of the new initiatives. But as the pandemic situation happened after 1 to 2 quarters, we did not have a very good chance to rollout business domestically. But with the new situation, we have confidence that there is more opportunity for this business to perform better.

是的。實際上，隨著最近這些新形勢的發展，新的疫情逐漸開放，我認為，我們可能會在某些特定的新舉措中看到更多的機會，例如我們提到的遊學和研究營地業務，1到2 個季度前，這是一項新舉措。但是由於大流行情況發生在一到兩個季度之後，我們沒有很好的機會在國內開展業務。但在新形勢下，我們有信心這項業務有更多機會表現得更好。

(Operator Instructions). Our next question comes from the line of Lucy Yu from BofA.

（操作員說明）。我們的下一個問題來自美國銀行的 Lucy Yu。

Congratulation on a profitable quarter. Could you please give us some color on the revenue breakdown this quarter and as well as the margin profile for different business lines? I know, Stephen, you already mentioned the new business is 10% OP margin. How about the rest?

祝賀一個有利可圖的季度。您能給我們介紹一下本季度的收入明細以及不同業務線的利潤率嗎？我知道，斯蒂芬，你已經提到新業務是 10% 的 OP 利潤率。剩下的呢？

Yes, for the reported quarter, the overseas related business including the overseas test prep and consulting contributed roughly about 21% of total revenue and the domestic test lab, the adults university students' business contributed roughly about 6%, and the school business, including our remaining like high-school business and also the new initiatives for younger students together contributing roughly about over 40% of total revenue. And the rest are Koolearn and some other businesses. So that's the rough contribution, yes.

是的，對於報告的季度，包括海外備考和諮詢在內的海外相關業務貢獻了大約 21% 的總收入和國內測試實驗室，成人大學生業務貢獻了大約 6%，學校業務，包括我們剩下的高中業務和針對年輕學生的新舉措共同貢獻了大約 40% 以上的總收入。其餘的是新東方在線和其他一些業務。這就是粗略的貢獻，是的。

Lucy, I just want to share with you the margins by different business lines. The overseas related business, overseas test lab combined with the consulting business, the margin for the whole year, fiscal year 2023 will be around 10% to 15% margin. What I'm saying the margin is before the corporate overhead. And the adults and the university study business, I think the margin profile, I think the business will be breakeven in this year. And the school business, including the remaining business and new initiatives as Sisi said contributed 45% of total revenue. The margin should be somewhere around 20% to 25% or little bit higher. So the others, this is the big others, including the Koolearn, Dongfang Zhenxuan and others, I think, if you follow the numbers, the Koolearn, the first-half year report, I think you will see more color on the margin profile of the Koolearn and the others, Lucy.

露西，我只想和你分享不同業務線的利潤。海外相關業務、海外測試實驗室與諮詢業務相結合，全年利潤率，2023 財年利潤率將在 10% 至 15% 左右。我所說的利潤率是在公司間接費用之前。而成年人和大學學習業務，我認為利潤率概況，我認為業務將在今年實現收支平衡。而學校業務，包括思思所說的剩餘業務和新舉措，貢獻了總收入的 45%。利潤率應該在 20% 到 25% 左右或更高一點。所以其他人，這是其他大公司，包括新東方在線、東方振軒等，我想，如果你關注數字，新東方在線，上半年報告，我想你會在保證金概況上看到更多顏色新東方在線和其他人，露西。

Just one follow-up. Could you also talk about Y-o-Y growth for different business line in this quarter?

只是一個跟進。您能否談談本季度不同業務線的同比增長情況？

Year-over-year, I think the revenue contributions --

與去年同期相比，我認為收入貢獻——

Yes, we talked about it in the prepared remarks. So for this quarter, like U.S. dollar terms, overseas test prep business increased by roughly 17%. Actually, for RMB term, you should add another 10%, 15% more. The university students' business is stable and in U.S. dollar term it is negative 8%, but RMB term is positive. And the -- yes, the school business actually increased because of the new initiatives. And also Koolearn and other business increased a lot.

是的，我們在準備好的評論中談到了它。因此，本季度，以美元計算，海外備考業務增長了約 17%。其實人民幣的話，應該再加10%，再加15%。大學生業務穩定，以美元計為負8%，但以人民幣計為正。而且 - 是的，由於新舉措，學校業務實際上有所增加。而新東方在線等業務也增長了很多。

Our next question comes from the line of Candis Chan from Daiwa.

我們的下一個問題來自 Daiwa 的 Candis Chan。

Congratulations on the very strong set of results and also on the strong guidance for next quarter. My first question is related to the third-quarter revenue guidance and also the profitability that we are aiming for.

祝賀非常強勁的結果以及對下一季度的強有力指導。我的第一個問題與第三季度的收入指引以及我們的目標盈利能力有關。

So firstly, can you give us a break, rough breakdown of revenue for the third quarter and also in terms of the operating margin, how should we look at it for the third quarter, given the strong revenue?

所以首先，你能不能給我們一個休息，第三季度的收入粗略細分以及營業利潤率，鑑於強勁的收入，我們應該如何看待第三季度？

Okay. In the Q3 forecast, I think the number-one, the overseas related business, test lab and consulting business will contribute 24%, 25% of total revenue in Q3. And the second, the adults and university students business contribute 2% of the revenue because of the COVID. And the school business, including the traditional business and remaining business and the new initiatives will contribute 43%, 44% of total revenue. And the other 30% comes from the Koolearn, Dongfang Zhenxuan and the other business like the books or the other 2 businesses.

好的。在第三季度的預測中，我認為排名第一的海外相關業務、測試實驗室和諮詢業務將佔第三季度總收入的 24%、25%。其次，由於 COVID，成人和大學生業務貢獻了 2% 的收入。而學校業務，包括傳統業務和剩餘業務以及新舉措將貢獻43%、44%的總收入。另外30%來自新東方在線、東方振軒和其他業務，比如圖書或其他2個業務。

And the margin profile, I think the margins -- let us start with the margin analysis from this quarter. In Q2, you saw our GP margin and OP margin increased a lot compared to last year. And I think this is mainly driven by volume of reasons. Number-1, in last year Q2, even before last year before year, the first 3 quarters, we had the considerable one-off cost related to the class cancellation, the learning center closures and the staff layoffs. In this quarter and even in this fiscal year, we have no one-off cost. Number 2, I think the downsizing learning center numbers led to the lower fixed cost. So it strives the margin up per learning center. Number 3, the new businesses, the margin is over 10% this year. I think it's good news for us and also the recovery of the remaining business, for example, like the overseas-related business, generally has the higher-margin than that of last year. And the last reason, number 4, the Dongfang Zhenxuan, the Koolearn, the last streaming e-commerce business enjoys higher margin. So it makes the margin, it drives the margin for the whole group.

還有利潤率概況，我認為是利潤率——讓我們從本季度的利潤率分析開始。在第二季度，您看到我們的 GP 利潤率和 OP 利潤率與去年相比增加了很多。我認為這主要是由數量原因驅動的。第一，在去年第二季度，甚至在去年和前三個季度之前，我們都有與課程取消、學習中心關閉和員工裁員相關的相當大的一次性成本。在本季度甚至本財年，我們都沒有一次性成本。第二，我認為縮小學習中心數量導致固定成本降低。因此，它努力提高每個學習中心的利潤率。第三，新業務，今年的利潤率超過 10%。我認為這對我們來說是個好消息，其餘業務的複蘇，例如海外相關業務，通常比去年有更高的利潤率。最後一個原因，第四，東方振軒，新東方在線，最後一個流媒體電子商務業務享有更高的利潤率。所以它創造了利潤，它推動了整個集團的利潤。

And going-forward, I think all of this is aligned. We are, will contribute even higher profit and drive the whole margin up year-over-year. So we are quite optimistic of the margin profile of the whole year, fiscal year 2023.

展望未來，我認為所有這些都是一致的。我們將貢獻更高的利潤，並推動整體利潤率同比增長。因此，我們對 2023 財年全年的利潤率狀況相當樂觀。

So my second question is related to the regulations, recently in late December that we saw, we saw that there's new document about the non-academic tutoring activities. So do we see impact on our business overall, like in terms of pricing and also the expansion?

所以我的第二個問題與法規有關，最近在 12 月下旬，我們看到有關於非學術輔導活動的新文件。那麼我們是否看到對我們整體業務的影響，例如定價和擴張方面的影響？

Actually, since the government has issued the policy last year, I think we have the authority exploring the new business direction and follow all of the central and local governments authorities, the rules. And so, yes, you mentioned that the new rules in last October, in October last year, I think there will be no material impacts to our business.

實際上，自去年政府發布政策以來，我認為我們有權探索新的業務方向並遵守所有中央和地方政府的規定。所以，是的，你提到去年 10 月的新規則，去年 10 月，我認為不會對我們的業務產生實質性影響。

We'll move on to our next question. Please standby. We have a follow-up question from the line of Felix Liu from UBS. Please go ahead, your line is open.

我們將繼續下一個問題。請待命。我們有來自瑞銀的 Felix Liu 的後續問題。請繼續，您的線路已開通。

Stephen, this is Felix. And my follow-up question is on your learning center network. I know that you opened 2 centers in this quarter. So I think that's a good step forward, although a small step. Could you share some color on your expansion outlook from here may be this year and next year?

斯蒂芬，這是菲利克斯。我的後續問題是關於您的學習中心網絡。我知道你們在這個季度開設了 2 個中心。所以我認為這是向前邁出的一大步，儘管只是一小步。您能否從這里分享今年和明年的擴張前景？

Okay. I think in the rest of this fiscal year, I think we have no big plan to set-up new learning centers. I think the learning center number will be stabilized because we made a loss on the OMO system in last -- in past so many years, and we moved a lot of cost from the offline to online. So it saves the cost from the areas. And also -- and we changed from the traditional business, classroom areas to the new businesses. So this is the internal change.

好的。我認為在本財政年度的剩餘時間內，我認為我們沒有建立新學習中心的大計劃。我認為學習中心的數量會穩定下來，因為我們過去這麼多年在 OMO 系統上虧損，我們把很多成本從線下轉移到了線上。因此，它節省了該地區的成本。而且——我們從傳統的業務、教室區域轉變為新的業務。所以這是內部變化。

And the next year we do hope we'll open more learning centers. But so-far, since it's too early to say how many learning centers we set up for the new year because we have not finished new year budget. I think I want to share with you the new learning center expansion plan next quarter earnings call.

明年我們確實希望開設更多的學習中心。但是到目前為止，因為我們還沒有完成新年預算，現在說我們為新的一年設立了多少個學習中心還為時過早。我想在下個季度的財報電話會議上與大家分享新的學習中心擴展計劃。

(Operator Instructions) Our next question comes from the line of [Lyanne Antoine] from HDFC.

（操作員說明）我們的下一個問題來自 HDFC 的 [Lyanne Antoine]。

My question is about the ratio of teachers to students. Could you share some color on the teacher to student ratio on each learning service segments? And do you have more plans to recruit more teachers in the next 2 years?

我的問題是關於師生比例。您能否分享一下每個學習服務領域的師生比例？在接下來的兩年裡，您是否有更多的計劃來招聘更多的老師？

I can't share with you the teachers number. By the end of this quarter, we have 26,000 teachers in total . And because we started a new business, just I think the last year, so I think it's too early to like calculate the teachers to student ratio. I think maybe next quarter, we'll be in the new year, we'll disclose the ratio. And yeah, I think we are hiring new teachers, because you know we started new businesses. And for some non-academic courses or the other new business, we do need to hire more features. But the key is, we don't hire more teachers. So we can't move above the elevation and the efficiency of the whole company, so I think we believe we will keep the higher utilization and the higher efficiency for the whole company in the future.

我不能告訴你老師的電話號碼。到本季度末，我們共有 26,000 名教師。而且因為我們開始了一項新業務，我認為就在去年，所以我認為現在計算師生比例還為時過早。我想也許下個季度，我們會在新的一年裡，我們會披露這個比率。是的，我認為我們正在招聘新教師，因為你知道我們開始了新業務。對於一些非學術課程或其他新業務，我們確實需要雇用更多功能。但關鍵是，我們不聘請更多的老師。所以我們不能超越整個公司的高度和效率，所以我認為我們相信我們將在未來為整個公司保持更高的利用率和更高的效率。

Our next question comes from the line of 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 a strong result. I actually just have 1 quick follow-up question on all your comments regarding margins. Can I ask how much of corporate overhead costs shall we expect at this stage, i.e., I remember, corporate overhead used to be like high single digit-ish revenue pre double reduction policy like 2 years back. So given much smaller or reasonably smaller revenue base now, I'm wondering how much about overhead we should model and expect for this year either as percentage of revenue or dollar term would be appreciated.

祝賀你取得了很好的成績。實際上，關於您對利潤率的所有評論，我只有 1 個快速跟進問題。我能問一下在這個階段我們應該期望多少公司管理費用嗎？也就是說，我記得，公司管理費用曾經像 2 年前雙倍削減政策前的高個位數收入。因此，鑑於現在的收入基礎要小得多或相當小，我想知道我們應該對今年的管理費用進行建模並期望多少，無論是收入百分比還是美元期限都會受到讚賞。

Yes, I think since the last year, we cut-off some fixed costs and expenses in the headquarters. So I think the headquarters expenses as a percentage of the total revenue will be stabilized and roughly at 6%, 7% of total revenue, this is the total expense from the headquarters.

是的，我認為自去年以來，我們削減了總部的一些固定成本和費用。所以我認為總部支出佔總收入的比例會穩定下來，大致在總收入的6%、7%，這是總部的總支出。

That's very impressive and a greater margin guidance. If I may follow-up again on all your comment on the expansion plan, I don't want to ask too much about the number of learning centers, but may I check for non-subject tutoring classes. Where do we see incremental demand opportunity say top tier cities, top 10 cities versus the rest of the nation by, like do you see stronger demand and where do you think we would open more stores and more centers in terms of the geographical exposure and that's all from me.

這是非常令人印象深刻和更高的利潤指導。如果我可以再次跟進您對擴展計劃的所有評論，我不想過多詢問學習中心的數量，但我可以檢查一下非學科輔導班。我們在哪裡看到增量需求機會，比如說一線城市，前 10 大城市與全國其他城市相比，你看到更強勁的需求嗎？你認為我們會在哪裡開設更多的商店和更多的中心，就地理風險而言，這是全部來自我。

I think the new business developments in the top-tier cities is a little bit better than the low-tier cities. And this is -- we have seen in the past quarters. But I do believe even in some low-tier cities, I think they will catch-up because they start with the business, it's a little bit slower than the top-tier cities. And so, almost everywhere we're seeing the business opportunities for the non-academic courses, almost everywhere. And, yes, that's all.

我認為一線城市的新業務發展比低線城市好一點。這是 - 我們在過去幾個季度看到的。但我確實相信，即使在一些低線城市，我認為他們也會迎頭趕上，因為他們從業務開始，比一線城市慢一點。因此，幾乎在任何地方我們都能看到非學術課程的商機，幾乎無處不在。而且，是的，僅此而已。

Capacity, as I said, now we don't have the capacity expansion plan and we just want to keep the same learning center numbers moving next quarter or even for the -- till the end of this fiscal year. And next year, maybe we'll expand, we will extend some new learning centers. But so far, we don't -- we haven't finished the next year budget. I will share with you the numbers next quarter.

產能，正如我所說，現在我們沒有產能擴張計劃，我們只想在下個季度甚至本財年末保持相同的學習中心數量。明年，也許我們會擴大，我們會擴建一些新的學習中心。但到目前為止，我們還沒有——我們還沒有完成明年的預算。我將在下個季度與您分享這些數字。

Our next question comes from the line of Kan Wang from CICC.

我們的下一個問題來自中金公司的王侃。

Stephen, I have a follow-up questions. I noticed that there is a significant increase in non-academic tutoring enrollment in Q2. Would you like to specify the driver behind? And do we have any target for the enrollments during the whole year?

斯蒂芬，我有一個後續問題。我注意到第二季度非學術輔導入學人數顯著增加。你想指定後面的驅動程序嗎？全年的招生人數有什麼目標嗎？

I think the markets always there. And we do have the famous brands, and we do have the teachers. And yes, we started business just a year ago that you saw the numbers. And the exciting news for us is that the profitable of the new business is exciting. It's much better than we expected. And for the new business, I don't believe in the rest of this fiscal year, the new business, the revenue growth will be accelerated again. And even for the next new year, fiscal year 2024, I believe the revenue growth of the new business will be high, yes. So we're optimistic about the non-academic courses business.

我認為市場總是存在的。我們確實有名牌，我們也有老師。是的，我們在一年前就開始了業務，您看到了這些數字。對我們來說令人振奮的消息是新業務的盈利令人興奮。這比我們預期的要好得多。而對於新業務，我不相信在本財年的剩餘時間裡，新業務的收入增長會再次加速。即使是下一個新年，即 2024 財年，我相信新業務的收入增長也會很高，是的。因此，我們對非學術課程業務持樂觀態度。

Yes. And by the way, the nonacademic tutoring business, according to our experience in the last several quarters, we think that its seasonality is not that apparent as some other test prep business. So every quarter, probably the enrollments will be relatively stable if we do the Q-on-Q comparison. And also as new business development in all the local cities, probably you can see strong momentum. As we have seen that Q2's growth or the enrollment trends are also similar or even better than Q1. Yes.

是的。順便說一下，根據我們過去幾個季度的經驗，非學術輔導業務的季節性並不像其他一些備考業務那麼明顯。所以每個季度，如果我們進行 Q-on-Q 比較，入學人數可能會相對穩定。而且隨著所有地方城市的新業務發展，您可能會看到強勁的勢頭。正如我們所看到的，第二季度的增長或入學趨勢也與第一季度相似甚至更好。是的。

We have a follow-up question from the line of Lyanne Antoine from HDFC.

我們有來自 HDFC 的 Lyanne Antoine 的後續問題。

Just 1 more follow-up question. Do we have any color on the retention rate for each segment?

還有 1 個後續問題。我們對每個細分市場的保留率有任何顏色嗎？

I think the retention rate is related to the traditional K-12 business. But we closed on the K-9, this is last year. And -- but for new businesses like nonacademic courses, we just follow up -- we just trace the retention rate. The good news for us is we are seeing the retention rate is getting higher and higher. And for example, as for the nonacademic courses, the retention rate now is between 65% to 70%. We just started the new business and the retention rate now is better than we expected. And we believe the retention rate will get higher going forward.

我認為保留率與傳統的 K-12 業務有關。但我們關閉了 K-9，這是去年的事了。而且——但對於像非學術課程這樣的新業務，我們只是跟進——我們只是追踪保留率。對我們來說，好消息是我們看到保留率越來越高。例如，對於非學術課程，現在的保留率在 65% 到 70% 之間。我們剛剛開始新業務，現在的保留率比我們預期的要好。我們相信未來的保留率會更高。

And overseas test prep and the university students business --

以及海外備考和大學生業務——

One-off.

一次性。

Yes, that's -- roughly, it's one-off.

是的，那是——粗略地說，這是一次性的。

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, Stephen Yang, for his closing remarks.

我們現在接近電話會議的尾聲。我現在將把電話轉交給新東方的執行總裁兼首席財務官 Stephen Yang，他將發表閉幕詞。

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。謝謝。