(EDU) 2023 Q4 法說會逐字稿

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

晚上好，感謝您出席新東方2023財年第四季度業績電話會議。 （操作員指示）今天的會議正在錄製。如果您有任何異議，您可以此時掛斷電話。我現在想將會議轉交給今天會議的主持人趙思思女士。

Okay. Thank you. Hello, everyone, and welcome to New Oriental's Fourth 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.

好的。謝謝。大家好，歡迎參加新東方2023財年第四季度財報電話會議。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看。今天，我和執行總裁兼首席財務官楊士強將與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.

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做出的前瞻性陳述。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許多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，新東方不承擔任何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投資者關係網站investor.neworiental.org上播出。

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先生。斯蒂芬，請繼續。

Thank you, Sisi. Hello, everyone, and thank you for joining us on the call. It's our great pleasure to announce that New Oriental has managed to conclude this fiscal year with a set of remarkable financial results this quarter and with our top line performance beating the expectations. Our existing business lines and new initiatives have pivoted towards a stable recovery and anchored fruit-bearing growth, mainly benefiting from the strong post-COVID recovery of demand and the resumption of the consumption.

謝謝你，茜茜。大家好，感謝您加入我們的通話。我們很高興地宣布，新東方在本財年結束時在本季度取得了一系列出色的財務業績，並且我們的營收業績超出了預期。我們現有的業務線和新舉措已轉向穩定復甦並穩定了水果增長，主要受益於疫情后需求的強勁復甦和消費的恢復。

Our bottom line performance has also achieved a solid growth with operating margin and non-GAAP operating margin reaching 5.6% and 9.1%, respectively, for this quarter, depicting a well grounded resilience across our business lines, thanks to our ongoing efforts enhancing operational efficiency and cost control.

我們的淨利潤也實現了穩健增長，本季度營業利潤率和非公認會計準則營業利潤率分別達到5.6% 和9.1%，這表明我們的業務線具有堅實的彈性，這得益於我們不斷努力提高運營效率和成本控制。

In particular, I would like to highlight the solid recovery has been embodied in the growth of our overseas test prep and overseas study consulting businesses, which have recorded steady increments in revenues and enrollments. The dedicated blend of our restructured business model better utilized facility and streamlined cost structure have not only helped us yield better than expected margins in this fiscal quarter, but also enlivened our continued exploration of new potential ventures. As we unfold a new chapter of innovative endeavors, the company's sustainable profitability, resilient business lines and emerging new initiatives have reaffirmed our belief in maintaining a healthy growth of our market share amid the encouraging environmental recovery. Now I would like to spend some time to talk about the quarter's performance across our remaining business lines and the new business to you in detail.

我特別想強調的是，我們的海外備考和留學諮詢業務的增長體現了強勁的複蘇，這些業務的收入和入學人數穩步增長。我們重組後的業務模式、更好地利用設施和簡化的成本結構的專門結合，不僅幫助我們在本財季獲得了高於預期的利潤率，而且還激發了我們對新的潛在企業的持續探索。隨著我們翻開創新努力的新篇章，公司的可持續盈利能力、富有彈性的業務線和不斷湧現的新舉措再次堅定了我們在令人鼓舞的環境復甦中保持市場份額健康增長的信念。現在我想花一些時間向大家詳細介紹一下我們剩餘業務線和新業務的本季度業績。

Our key remaining business secured a promising trend, coupled with the positive momentum in our new initiatives. Breaking it down, the overseas test prep business recorded a revenue increase of 52% in dollar terms or 62% in RMB terms year-over-year for the fourth fiscal(added by company after the call) quarter. The overseas study consulting business recorded a revenue increase of about 6% in dollar terms or 13% in RMB terms year-over-year for this quarter.

我們的主要剩餘業務保持了有希望的趨勢，再加上我們的新舉措的積極勢頭。細分來看，第四財季（由公司在電話會議後添加）海外考試準備業務的收入按美元計算同比增長 52%，按人民幣計算增長 62%。本季度留學諮詢業務的收入按美元計算同比增長約6%，按人民幣計算同比增長13%。

The Adults and University students business recorded a revenue increase of 34% in dollar terms or a 43% increase in RMB terms year-over-year for this quarter. As mentioned in the previous quarters, we have launched several new initiatives, which mostly revolve around facilitating students all around development. I'm pleased to share with you that these initiatives have continued to exceed our expectations by sustaining our promising growth and generating meaningful profit to the company.

本季度成人和大學生業務的收入按美元計算同比增長 34%，按人民幣計算增長 43%。正如前幾個季度所提到的，我們推出了幾項新舉措，主要圍繞促進學生的全面發展。我很高興與您分享，這些舉措持續超出了我們的預期，維持了我們充滿希望的增長並為公司創造了可觀的利潤。

Firstly, the nonacademic tutoring courses, which we have offered in around 60 existing cities focused on cultivating students' innovative ability and comprehensive quality. We're happy to see further rise market penetration in those markets we have tapped into, especially in higher-tier cities with a total of 629,000 student enrollments recorded in this quarter.

一是非學業輔導課程，我們在現有的60多個城市開設了注重培養學生創新能力和綜合素質的課程。我們很高興看到我們所涉足的市場的市場滲透率進一步上升，特別是在二三線城市，本季度共有 629,000 名學生入學。

The top 10 cities in China have contributed about 60% of revenue of this business. Secondly, the intelligent learning system and device business or service designed to provide a tailored digital learning experience for students has been adopted in around 60 existing cities with 99,000 active paid users recorded in this quarter. The revenue contribution of this new business from the top 10 cities in China is around 60%.

中國排名前10位的城市貢獻了該業務約60%的收入。其次，旨在為學生提供量身定制的數字學習體驗的智能學習系統和設備業務或服務已在約60個現有城市採用，本季度活躍付費用戶達到9.9萬。該新業務來自中國前10名城市的收入貢獻在60%左右。

Thirdly, our study tour and research cap business, an initiative that aims at offering events of K-12 and university ages the opportunity to fully leverage their free time to broaden the scope of knowledge and cultivate a subject interest, has also achieved encouraging results. We have conducted study tour and research camp in over 50 cities across the country with the top 10 cities in China offering over 55% of revenue contribution to this new business.

第三，我們的遊學和研究帽業務，旨在為K-12和大學年齡段的活動提供充分利用他們的空閒時間拓寬知識範圍和培養學科興趣的機會，也取得了令人鼓舞的成果。我們在全國50多個城市開展了遊學和研學營，其中中國排名前10的城市為這項新業務貢獻了超過55%的收入。

Benefiting from the post-COVID recovery of demand, we have seen strong enrollment trends and expect the new business to contribute meaningful revenue in the coming new fiscal year.

受益於疫情后需求的複蘇，我們看到了強勁的入學趨勢，並預計新業務將在即將到來的新財年貢獻可觀的收入。

Last but not least, our smart education business, educational materials and digitalized smart study solutions, as well as exam preparation courses, have also contributed meaningful results to the overall growth of the company and has attained instrumental profit since the previous quarters.

最後但並非最不重要的一點是，我們的智慧教育業務、教材和數字化智慧學習解決方案以及備考課程也為公司的整體增長做出了有意義的成果，並自前幾個季度以來獲得了可觀的利潤。

With regard to our OMO system, our positions in revamping our platforms and advancing the technology capability has enabled us to continue to provide high-quality service to our customers and successfully capture the new business opportunity during the transition period.

就我們的OMO系統而言，我們在平台改造和技術能力提升方面的地位使我們能夠繼續為客戶提供高質量的服務，並在轉型期間成功抓住新的商機。

During the reporting period, a total of $31.7 million has been invested into the system. Now I would like to spend a bit of time to give you updates on East Buy latest performance. Fiscal year 2023 marks adventures beginning for East Buy. Since inception, it has achieved significant breakthroughs in both business operations and financial performance through proactive redesigning of strategic plan and the implementation of a series of the initiatives to strengthen the long-term sustainability.

報告期內，該系統共投資3170萬美元。下面我想花一點時間給大家介紹一下東買的最新業績。 2023 財年標誌著東買冒險的開始。自成立以來，通過積極重新設計戰略規劃以及實施一系列強化長期可持續發展的舉措，在業務運營和財務業績方面均取得了重大突破。

During the reporting period, the company introduced a change of its name from Koolearn Technology Holdings Limited to East Buy Holding Limited for closer alignment with its long-term core business direction, which is to offer top-quality agriculture products under our private label Dongfang Zhenxuan create a live streaming platform which safeguards product caliber and use experience for customers as well as nurture nationwide cultural appreciation.

報告期內，公司名稱由新東方在線科技控股有限公司變更為東買控股有限公司，以更加符合公司長期核心業務方向，即以自有品牌東方臻選提供優質農產品。打造一個保障產品品質和消費者使用體驗、培育民族文化的直播平台。

Throughout fiscal year 2023, East Buy continuing to expand the product variety to provide customers with high-quality and cost-effective offerings. The extremely stringent standard is applied in selecting suppliers and manufacturers have ensured outputs are always curated by a better craftmanship with similar ingredients.

整個2023財年，東買持續擴大產品種類，為客戶提供高品質、高性價比的產品。在選擇供應商時採用極其嚴格的標準，製造商確保產品始終採用更好的工藝和類似的成分來策劃。

In terms of private label products, while insisting to introduce only high-quality products that are price-worthy, East Buy elevated user experience by applying advanced technology to safeguard the entire process from product development sales to after sales service.

在自有品牌產品方面，東買在堅持只推出高品質、高性價比的產品的同時，通過先進技術保障從產品研發、銷售到售後服務的全流程，提升用戶體驗。

Furthermore, with the vision to foster content innovation and knowledge sharing with customers, East Buy began leading on-site live streaming events in various province in China, joined by the cultural celebrities from all walks of life to document a rich variety of intangible cultural heritage. We're also grateful for the support to East Buy's exploration in cultural tourism and is inspiring to see that the platform has since aroused wide public attention, awareness and most importantly, affection on Chinese cultural assets.

此外，以促進內容創新和與客戶分享知識為願景，東買開始在中國多個省份主導現場直播活動，並與各界文化名人一起記錄豐富多彩的非物質文化遺產。我們也感謝東買在文化旅遊領域探索的支持，並令人鼓舞地看到該平台已經引起了公眾的廣泛關注、認知，最重要的是，對中國文化資產的喜愛。

We will continue to explore the area of business and provide updates when suited. 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 $4.5 billion.

我們將繼續探索業務領域並在適當時提供更新信息。關於公司最新的財務狀況，我有信心與大家分享，公司財務狀況健康，現金及現金等價物、定期存款和短期投資總計約45億美元。

On July 26, 2022, the company's Board of Directors authorized a share repurchase of up to $400 million of the company ADSs or common shares during the period from July 28, 2022 through May 31, 2023.

2022年7月26日，公司董事會授權在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。

The company's Board of Directors further authorized the company to extend its share repurchase program launched in July 2022 by 12 months through May 31, 2024. As of July 25, 2023, the company repurchased aggregate of approximately 5.9 million ADSs for approximately $191.7 million from the open market under the share repurchase program.

公司董事會進一步授權公司將2022 年7 月啟動的股票回購計劃延長12 個月，直至2024 年5 月31 日。截至2023 年7 月25 日，公司以約1.917 億美元的價格回購了總計約590 萬股美國存託股票。股份回購計劃下的公開市場。

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塞西，與您分享關鍵的財務數據。茜茜，請繼續。

Now I'd like to walk you through the key -- other key financial details for this quarter. Operating costs and expenses for the quarter were $812.5 million, representing a 29% increase year-over-year. Non-GAAP operating costs and expenses for the quarter, which exclude share-based compensation expenses, were $782 million, representing a 30.1% increase year-over-year. The increase was primarily due to the cost expenses related to the substantial growth in East Buy's private label products and the livestreaming e-commerce business. .

現在我想向您介紹本季度的關鍵其他關鍵財務細節。該季度運營成本和費用為 8.125 億美元，同比增長 29%。本季度非公認會計準則運營成本和費用（不包括股權激勵費用）為 7.82 億美元，同比增長 30.1%。增長主要是由於東買自有品牌產品和直播電商業務大幅增長相關的成本費用。 。

Cost of revenue increased by 58% year-over-year to $391.6 million. Selling and marketing expenses increased by 54.3% year-over-year. to $147.8 million. G&A expenses for the quarter decreased by 4.5% year-over-year to $273.1 million. Non-GAAP G&A expenses, which exclude share-based compensation expenses, were $249.5 million, representing a 3% decrease year-over-year.

收入成本同比增長 58% 至 3.916 億美元。銷售及營銷費用同比增長54.3%。至 1.478 億美元。該季度的一般管理費用同比下降 4.5% 至 2.731 億美元。非 GAAP G&A 費用（不包括股權激勵費用）為 2.495 億美元，同比下降 3%。

Total share-based compensation expenses, which were allocated to related operating cost expenses, increased by 6.1% to $30.5 million in the fourth fiscal quarter of 2023. Operating income was $48.1 million compared to a loss of $105.6 million in the same period of the prior fiscal year. Non-GAAP income from operations for the quarter was $78.6 million compared to the loss of $76.9 million in the same period of prior fiscal year.

2023 年第四財季，分配給相關運營成本費用的股份獎勵費用總額增加了 6.1%，達到 3050 萬美元。運營收入為 4810 萬美元，而上年同期虧損 1.056 億美元財政年度。本季度非公認會計原則運營收入為 7860 萬美元，而上一財年同期虧損 7690 萬美元。

Net income attributable to New Oriental for the quarter was $29 million compared to the loss of $189.3 million in the same period of last year. Basic and diluted net income per ADS attributable to New Oriental were $0.18 and $0.17, respectively.

該季度歸屬於新東方的淨利潤為2900萬美元，而去年同期則虧損1.893億美元。新東方每股ADS基本淨利潤和稀釋後淨利潤分別為0.18美元和0.17美元。

Non-GAAP net income attributable to New Oriental for the quarter were $62.1 million compared to the loss of $160.3 million in the same period of the prior fiscal year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were $0.38 and $0.37, respectively.

本季度新東方應佔非公認會計準則淨利潤為 6210 萬美元，而上一財年同期虧損 1.603 億美元。非公認會計準則下新東方每股美國存託股基本淨利潤和稀釋後淨利潤分別為 0.38 美元和 0.37 美元。

Net cash flow generated from operations for the fourth fiscal quarter of 2023 was approximately $421.6 million and capital expenditure for the quarter were $68.4 million. Turning to the balance sheet.

2023 年第四財季運營產生的淨現金流量約為 4.216 億美元，該季度的資本支出為 6840 萬美元。轉向資產負債表。

As of May 31, 2023, New Oriental had cash and cash equivalents of $1,663 million. In addition, the company had $1,318.5 million in term deposits and $1,477.8 million in short-term investments. New Oriental's deferred revenue balance, which is cash collected upfront from customers and related revenue will be recognized as a service or goods as the services and goods are delivered at the end of the fourth fiscal quarter of 2023 was $1337.6 million, an increase of 43.4% as compared to $933.1 million and the same at the end of the fourth quarter of fiscal year 2022.

截至2023年5月31日，新東方擁有現金及現金等價物16.63億美元。此外，該公司還有13.185億美元的定期存款和14.778億美元的短期投資。新東方的遞延收入餘額（即預先向客戶收取的現金以及相關收入將在2023年第四財季末交付服務和商品時確認為服務或商品）為13.376億美元，增長43.4%相比之下， 2022 財年第四季度末為9.331 億美元。

Now I'll hand over to Stephen to go through our outlook and guidance.

現在我將交給斯蒂芬來介紹我們的展望和指導。

Thank you, Sisi. Heading into the first quarter of fiscal year 2024, we firmly believe that our business will progress on a healthy trajectory of growth, which will be reflected in our performance in the new fiscal year.

謝謝你，茜茜。進入2024財年第一季度，我們堅信我們的業務將沿著健康的增長軌道前進，這將反映在我們新財年的業績中。

The surge in demand we observed as a result of post-COVID reception and economic recovery has heightened our conviction in leveraging our brand advantage, rooted history, influential teaching content and resources and our long established solid foundation. We will continue to work diligently and having adhering to the latest guidance from the Chinese authorities on enhancing the nation's education level to strengthen its leading position to further unveil our potential in all business lines and seize new opportunities as they arise.

我們觀察到，疫情后的接待和經濟復甦帶來的需求激增，增強了我們利用我們的品牌優勢、根深蒂固的歷史、有影響力的教學內容和資源以及我們長期建立的堅實基礎的信念。我們將繼續努力工作，遵循國家有關提高國家教育水平、鞏固領先地位的最新指導意見，進一步釋放我們在各業務領域的潛力，抓住新的機遇。

With regard to learning center and classroom space, we plan to increase our capacity by about 15% to 20% in the new year, of which a small quantity of new learning centers is expected to be opened. While classroom areas of some existing learning centers will be expanded in a few major cities. Most of the new options will be launched in the city with a better top line and bottom line performance in fiscal year '23.

在學習中心和教室空間方面，我們計劃在新的一年增加約15%至20%的容量，其中預計將開設少量新的學習中心。同時，一些主要城市的一些現有學習中心的教室面積將得到擴大。大多數新選擇將在該市推出，並在 23 財年實現更好的收入和利潤表現。

We will keep monitoring the pace and scale of new offerings according to the local operation and financial results during the new year. In summary, we expect total net revenue in the first quarter of fiscal year 2024 and to be in the range of $983.2 million to $1,005.5 million, representing a year-over-year increase in the range of 32% to 35%.

我們將根據新的一年當地的運營和財務業績，繼續監控新股發行的節奏和規模。綜上所述，我們預計 2024 財年第一季度的總淨收入將在 9.832 億美元至 10.055 億美元之間，同比增長 32% 至 35%。

To conclude, the financial results we recorded in fiscal year '23 and performance of our new business have reaffirmed our confidence in achieving the satisfactory level of the operating profit and the improvement of the profitability in the first quarter and the whole year of fiscal year '24. New Oriental placed great determination to invigorate new endeavors with our existing capabilities. Simultaneously, we will also devote reasonable resources on research and application of new technologies such as AI and ChatGPT into our educational and product offerings with the vision to uplift our strength and pursued some growth and operating efficiency.

總而言之，我們23財年的財務業績和新業務的表現再次堅定了我們對實現令人滿意的營業利潤水平以及第一季度和全年盈利能力改善的信心。 24.新東方決心以現有能力激發新的活力。同時，我們還將投入合理的資源來研究人工智能和ChatGPT等新技術，並將其應用到我們的教育和產品中，以增強我們的實力並追求一定的增長和運營效率。

At the same time, we will continue to stay committed to seek guidance from and corporate with government authorities in various provinces. In alignment with its efforts to comply with the relevant policies as well as to further adjust our business operations as required. I must say that these expectations and forecasts reflect our considerations of the latest regulatory measures as well as our current and preliminary view, which is subject to change. This is the end of our fiscal year 2023 Q4 summary. At this point, I would like to open the floor for questions. Operator, please open the call for these. Thank you.

同時，我們將繼續致力於尋求各省政府部門的指導和配合。配合其努力遵守相關政策，並根據需要進一步調整我們的業務運營。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觀點，這些觀點可能會發生變化。這是我們 2023 財年第四季度總結的結尾。現在，我想請大家提問。接線員，請打開這些電話。謝謝。

(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UBS 的Felix Liu。

Congratulations on the strong quarter and guidance. My question is on capacity. I noticed that your capacity expansion had picked up this quarter and that you guided a 15% to 20% capacity increase for the next -- for FY '24, which I think is an acceleration from previous plans.

祝賀強勁的季度和指導。我的問題是關於容量。我注意到你們本季度的產能擴張有所加快，並且你們指導下一個 24 財年的產能增長 15% 到 20%，我認為這比之前的計劃有所加速。

So may I ask you to share more color on this capacity reacceleration? Are they in existing cities or in new cities? And are they for -- just for our new K-12 businesses? Or are they multi purpose in covering overseas test prep. And for the plan of 15% to 20% this year, do you see that as a sustainable level if we were to project this into a few years down the road?

那麼我可以請您分享更多有關產能重新加速的信息嗎？它們是在現有城市還是新城市？它們是為了——僅僅為了我們新的 K-12 業務嗎？或者他們是否有多種目的來涵蓋海外考試準備？對於今年 15% 到 20% 的計劃，如果我們將其預測到未來幾年，您認為這是一個可持續的水平嗎？

Yes. Thank you, Felix. I think as for the expansion plan, yes, we raised a little bit about the capacity expansion plan compared to that of the last quarter earnings call. Last quarter, I shared with you guys about the 10% capacity expansion.

是的。謝謝你，菲利克斯。我認為至於擴張計劃，是的，與上季度財報電話會議相比，我們對產能擴張計劃提出了一些建議。上個季度我跟大家分享了10%的產能擴張。

I think the reason is it's because we have seen the strong demand in education sector, especially in overseas test prep business and nonacademic courses. So that's -- and also, I think that's why we raised the guidance of the capacity expansion. And I think most of the new opening will be happened in the existing cities. We don't have the plan to open the new cities.

我認為原因是因為我們看到了教育領域的強勁需求，尤其是海外備考業務和非學術課程。這就是——我認為這就是我們提出產能擴張指導的原因。我認為大部分新開業將發生在現有城市。我們沒有開放新城市的計劃。

And -- but I must mention that we will open these small quantity of the new learning centers in certain cities, and we will expand some classroom area for some existing cities because it's almost a full of the existing some learning centers. And most of the new learning centers or the new areas will be used by the K-12 nonacademic process and overseas-related business and some domestic test at courses.

而且——但我必須提到，我們將在某些城市開設少量的新學習中心，並且我們將為一些現有城市擴大一些教室面積，因為它幾乎填滿了現有的一些學習中心。而新的學習中心或新區域大部分將用於K-12非學術流程和海外相關業務以及部分國內課程測試。

And as for the -- this is our fiscal year '24 plan. And I think in the next 2 to 3 years, I think we'll keep the same pace of the expansion plan. And it depends on the whole market environment and the development of the business.

至於——這是我們的 24 財年計劃。我認為在未來 2 到 3 年裡，我們將保持擴張計劃的相同步伐。這取決於整個市場環境和業務的發展。

Our next question comes from the line of Yiwen Zhang from China Renaissance.

我們的下一個問題來自華興資本的張藝文。

Congrats on very strong set of results. So just a general question on our guidance. So your August quarter guidance is quite impressive and even also in the medium term. So actually, what is driving such a strong growth? Can you like describe more maybe by segment?

祝賀取得了非常強勁的成績。這只是關於我們指導的一般性問題。因此，您的八月季度指導非常令人印象深刻，甚至在中期也是如此。那麼實際上，是什麼推動瞭如此強勁的增長呢？您能更詳細地描述一下嗎？

Okay. Yes. I think we remain confident and optimistic about the business performance in the coming Q1 and even for the new fiscal year '24. And as the post-COVID our reception and the whole economy recovery, I think we have seen a strong demands of the -- of our product like the overseas related courses and the non-academic courses from some new business.

好的。是的。我認為我們對即將到來的第一季度甚至新的 24 財年的業務表現仍然充滿信心和樂觀。隨著新冠疫情后我們的接待和整個經濟的複蘇，我認為我們已經看到了對我們產品的強烈需求，例如海外相關課程和一些新業務的非學術課程。

And so I think with the leveraging our brand advantage and the good teaching content and resources and our -- the -- our long established a solid foundation I think we will continue to seize the market opportunity in the market. That means we will take up the market share.

因此，我認為憑藉我們的品牌優勢、良好的教學內容和資源以及我們長期以來建立的堅實基礎，我認為我們將繼續抓住市場機會。這意味著我們將佔據市場份額。

And for example, as for the overseas related business, on demand side, we have seen a strong demand for the overseas test prep business. On supply side, we have seen some players disappear from the market. So that means we are facing less competition -- and for our new business, like the nonacademic courses, I think we are -- the encouraging performance in this quarter or even in the last year, proof that we are heading towards the right direction.

比如說海外相關業務，從需求方面來看，我們看到海外備考業務的需求非常旺盛。在供應方面，我們看到一些參與者從市場上消失。因此，這意味著我們面臨的競爭較少——對於我們的新業務，比如非學術課程，我認為我們是——本季度甚至去年令人鼓舞的表現，證明我們正在朝著正確的方向前進。

So in the coming Q1, we guided the top line growth will be in the range of 32% to 35% in dollar terms. And in RMB terms, there might be somewhere around 40%, 45%. And so -- and also as for the bottom line-wise, we're confident in achieving the greater profit in the coming Q1. That means we're quite optimistic about the operating margin expansion in the Q1 and the whole new year.

因此，在即將到來的第一季度，我們預計以美元計算的收入增長將在 32% 至 35% 之間。以人民幣計算，可能在 40%、45% 左右。因此，就盈利而言，我們有信心在即將到來的第一季度實現更大的利潤。這意味著我們對第一季度和整個新年的營業利潤率擴張相當樂觀。

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

我們的下一個問題來自美國銀行證券公司的 Lucy Yu。

One question on your selling expense. So I noticed that the selling expense has been up quite a lot Q-on-Q and Y-o-Y. Could you please elaborate what is driving that? And how should we think about the selling expense trend in the new fiscal year?

一個關於您的銷售費用的問題。因此，我注意到銷售費用環比和同比增長了很多。您能否詳細說明是什麼推動了這一點？我們又該如何看待新財年的銷售費用走勢呢？

Thank you, Lucy. I think, yes, we spend a little bit more money on selling marketing expenses because we're seeing the strong demand in the market. And yes, I think you saw our top line growth in this quarter is 64% in dollar terms. And even though we spent bit more on selling marketing experience.

謝謝你，露西。我認為，是的，我們在銷售營銷費用上花了更多的錢，因為我們看到市場的強勁需求。是的，我想您已經看到我們本季度的收入增長按美元計算為 64%。儘管我們在銷售營銷經驗上花了更多的錢。

But I think we do have the operating leverage in hand. And going forward, even in the Q1, the new year, I think we'll spend a little bit more on the selling and marketing expenses. But I think we do have the operating leverage on the cost and SG&A side. So that means you will see the margin improvement in the coming new year.

但我認為我們確實擁有運營槓桿。展望未來，即使在新的一年第一季度，我認為我們也會在銷售和營銷費用上花費更多。但我認為我們在成本和銷售管理費用方面確實擁有運營槓桿。因此，這意味著您將在新的一年看到利潤率的提高。

Just a follow-up, Stephen. So your selling expense up is mainly driven by which business? Is it nonacademic in overseas or any other business?

只是後續行動，斯蒂芬。那麼您的銷售費用上漲主要是由哪些業務推動的？是海外非學術性的還是其他商業性的？

Both despite the education business and East Buy.

儘管有教育業務和東買。

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。

This is Candis from Daiwa. So firstly, congratulations on the very strong revenue guidance for the coming quarter. And I would like to follow up on your comments about the operating margin. Would you mind sharing a little bit more on the margins by different businesses for it such as the market during and also the overseas test prep, et cetera? And my second question is about the revenue this quarter. Would you mind to break it down into different segments as well?

我是大和公司的坎迪斯。首先，祝賀下一季度非常強勁的收入指引。我想跟進您對營業利潤率的評論。您介意分享一些不同業務的邊際信息嗎，比如期間的市場以及海外考試準備等等？我的第二個問題是關於本季度的收入。您介意將其分成不同的部分嗎？

Yes. Yes, let's start with the margin analysis of this quarter. Because of the downsizing of the learning centers and laying off the some employees last year led to the lower fixed cost per learning centers, it drives the margin up. And as for the different business lines, the overseas test prep the growth is very good. in this quarter.

是的。是的，讓我們從本季度的利潤率分析開始。由於去年學習中心的規模縮小和解雇了一些員工，導致每個學習中心的固定成本降低，從而推動了利潤率的上升。而就不同業務線而言，海外考前的增長非常好。在本季度。

And with the higher utilization of the classrooms and the operating leverage and the margin was up. And going forward, I think both the overseas-related business and the new business, the margin will go up in the coming quarter and the coming new year. And the question really, the different business lines revenue, Sisi can take.

隨著教室利用率的提高以及運營槓桿和利潤率的上升。展望未來，我認為無論是海外相關業務還是新業務，利潤率在下個季度和新的一年都會上升。真正的問題是，塞西可以承擔不同業務線的收入。

You mean for Q4, right?

你是說第四季度吧？

Right. Mainly for Q4. But if you can also provide some colors on the 1Q, that would be very great.

正確的。主要針對第四季度。但如果你也能在 1Q 上提供一些顏色，那就太好了。

Okay. Yes. So for Q4, the revenue mix is roughly like -- in Q4, the overseas-related business contributes, like test prep is about 11%. And the consulting business is like 17% because it's the seasonality -- seasonally high quarter.

好的。是的。所以對於第四季度來說，收入結構大致是這樣的——在第四季度，海外相關業務的貢獻，比如考試準備大約佔 11%。諮詢業務大約佔 17%，因為這是季節性的——季節性高季度。

And also for university students business, the revenue contribution in Q4 is about 2% to 3%. And the new business together is about 18%, so roughly same for the whole fiscal year as well. And the rest are high school and some other business and also including Dongfang Zhenxuan, yes.

同樣對於大學生業務來說，第四季度的收入貢獻約為2%至3%。新業務合計約為 18%，因此整個財年也大致相同。剩下的就是高中和一些其他的生意，也包括東方振軒，是的。

May I ask one more question that is about the coming quarter. So I think that we do see that on the ground, the demand for the research camp and also the study tours have been very strong. Would you mind share a little bit more on the like what we are seeing for this? And what is our plan for this new year and going forward for this new business?

我可以再問一個有關下一季度的問題嗎？所以我認為我們確實看到，在實地，對研究營和遊學的需求非常強勁。您介意分享更多關於我們所看到的內容嗎？我們對新的一年和新業務的未來計劃是什麼？

Yes. So actually, we give the strong guidance for Q1's revenue. The key driver, if you look at by each categories of businesses, like overseas related business, both including the overseas test prep and consulting are growing faster. And also, we're seeing accelerating trends of the growth for overseas related business, because of the post-COVID recovery, the trend is very clear.

是的。所以實際上，我們對第一季度的收入給出了強有力的指導。關鍵的驅動力，如果你從各個業務類別來看，比如海外相關業務，包括海外備考和諮詢，都增長得更快。而且，我們看到海外相關業務增長加速的趨勢，因為疫情后的複蘇，這個趨勢非常明顯。

And also, the -- some other new business definitely is a key driver, even higher than our original expectation because we are seeing strong demand during the summer's registration and according to our current forecast, this portion can also grow very, very fast. So these are the key driver. Definitely, other business of the remaining businesses and also Dongfang Zhenxuan Are also contributing good revenue growth as well for Q1.

而且，其他一些新業務肯定是一個關鍵驅動因素，甚至高於我們最初的預期，因為我們在夏季註冊期間看到了強勁的需求，並且根據我們目前的預測，這部分業務也可能增長得非常非常快。所以這些是關鍵驅動因素。當然，其餘業務的其他業務以及東方振軒也為第一季度貢獻了良好的收入增長。

Our next question comes from the line of Tiny Wong from CICC.

我們的下一個問題來自中金公司的Tiny Wong。

My question is since we have announced to offer cultural and tourism services that target middle-aged and older people, so could you mind share more color on this, like how do we expect to enter this market? And to which extent do we expect this business to contribute to revenue?.

我的問題是，既然我們已經宣布推出針對中老年人的文化和旅遊服務，那麼您介意在這方面提供更多的信息嗎？比如我們預計如何進入這個市場？我們期望這項業務在多大程度上貢獻收入？

Yes. As for the new cultural tourism business, yes, I think first of all, we think the -- it has a big potential, the market opportunity in the country. And we do have a lot of the good teachers, some of them are star teachers. And by leveraging the knowledge of the teachers and in like the general study in history, were Chinese history, were some cultural studies, I think we believe we will be able to present one of a kind culture the tourism offerings.

是的。至於新的文化旅遊業務，是的，我認為首先，我們認為它在國內有很大的潛力和市場機會。我們確實有很多好老師，其中一些是明星老師。通過利用教師的知識以及一般的歷史研究、中國歷史和一些文化研究，我認為我們相信我們將能夠呈現一種獨特的文化和旅遊產品。

Combined both the entertainment and cultural education for the -- like the middle or the older aged people. In addition, I think we may also be able to leverage our extensive the online platforms and the school networks, the distribution channel. We have newly developed a couple of the top quality cultural tourism offerings in some feature in some feature tourism cities and provinces such as Hangzhou, Chengdu, Xi'an and Gansu. I think these offerings are gaining the increase tract -- the increase in the traction from the market.

將娛樂和文化教育結合起來，針對中老年人。此外，我認為我們還可以利用我們廣泛的在線平台和學校網絡、分銷渠道。在杭州、成都、西安、甘肅等旅遊特色省市，新開發了一批特色精品文化旅遊產品。我認為這些產品正在獲得增長——市場吸引力的增加。

And yes, we're still in the very early stage. And in the -- we are testing finally the products and the service process. And so -- and I will keep you posted for any updates on the new business. But we're excited for the new business as we did in the EBIT last year, we started the business of the East Buy. And the East Buy generate, a lot of the top line growth and the profit to the group in fiscal year '23. And this rounds for the -- we're very excited about the new business of the tourism business. Thank you.

是的，我們仍處於非常早期的階段。我們最終正在測試產品和服務流程。因此，我將隨時向您通報有關新業務的任何最新消息。但我們對新業務感到興奮，就像去年我們在息稅前利潤中所做的那樣，我們開始了東買業務。 East Buy 在 23 財年為集團帶來了大量的收入增長和利潤。這一輪——我們對旅遊業務的新業務感到非常興奮。謝謝。

(Operator Instructions) There are no further questions. I will now turn the call over to New Oriental's Executive President and CFO, Stephen Yang, for his closing remarks.

（操作員說明）沒有其他問題。現在我請新東方執行總裁兼首席財務官楊志強致閉幕詞。

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，請隨時聯繫我或我們的任何投資者關係代表。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接