Four Seasons Education (Cayman) Inc (FEDU) 2021 Q4 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for the Four Seasons Education's Fourth Quarter and Fiscal Year 2021 Earnings conference call. (Operator Instructions) Today's conference call is being recorded.

女士們、先生們，大家好，感謝您出席四季教育第四季及 2021 財年獲利電話會議。（操作員指示）今天的電話會議正在錄音。

I will now turn the call over to your host, Ms. Olivia Li, Investor Relations Manager for the company. Please go ahead, Olivia.

現在我將把電話轉給你們的東道主，公司投資者關係經理李女士。請繼續，奧利維亞。

Hello, everyone, and welcome to Four Seasons Education's Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. The company's results were issued via Newswire services earlier today and are posted online. You can download the earnings press release and sign up for the company's e-mail distribution list by visiting the IR section of our website at ir.sijiedu.com.

大家好，歡迎參加四季教育2021年第四季及財年獲利電話會議。該公司的業績今天稍早透過新聞專線服務發布並發佈在網路上。您可以造訪我們網站 ir.sijiedu.com 的 IR 部分，下載收益新聞稿並註冊公司的電子郵件分發清單。

On today's call, Ms. Joanne Zuo, our Chief Executive Officer, will start by providing an overview of the company's performance highlights for the quarter. Ms. Xun Wang, the company's Vice President of Finance, will provide details on the company's financial results and business outlook before opening the call for your questions.

在今天的電話會議上，我們的執行長左瓊女士將首先概述該公司本季的業績亮點。該公司財務副總裁王迅女士將在開始提問之前詳細介紹公司的財務表現和業務前景。

Before we continue, please note that today's discussion 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, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's prospectus and its annual report on Form 20-F as filed with the U.S. Securities and Exchange Commission.

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風險和不確定性。因此，該公司的業績可能與今天表達的觀點有重大差異。有關此風險和其他風險和不確定性的更多資訊包含在該公司的招股說明書及其向美國證券交易委員會提交的 20-F 表格年度報告中。

The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

Please also note that Four Seasons Education's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Four Seasons Education's press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

另請注意，四季教育的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。四季教育的新聞稿包含未經審計的非公認會計準則衡量標準與未經審計的最直接可比較的公認會計準則衡量標準的調節表。

I will now turn the call over to our CEO, Ms. Zuo. Please go ahead.

我現在將電話轉給我們的執行長左女士。請繼續。

Thank you, Olivia, and hello, everyone. Thank you for joining our call today. This fiscal year has been unusual and unprecedented in many ways, largely due to the COVID-19 pandemic. Despite the challenges we faced throughout the year, we have been proactively optimizing our operations and cost offerings to maintain competitive advantages in a tough market as we endeavor to prepare our business toward long-term sustainability.

謝謝你，奧利維亞，大家好。感謝您今天加入我們的電話會議。本財年在許多方面都是不尋常且史無前例的，這主要是由於新冠肺炎 (COVID-19) 大流行造成的。儘管我們全年面臨挑戰，但我們一直在積極優化我們的營運和成本產品，以在嚴峻的市場中保持競爭優勢，同時努力為我們的業務實現長期永續發展做好準備。

In the fourth quarter of fiscal 2021, we are pleased to have concluded the year with a robust business recovery momentum, as market demand for our effective academically focused curricular and superior learning experience remains strong. We continue to outperform our revenue guidance and achieved a 26% year-over-year increase in total student enrollment during the quarter, underscoring our solid recovery trajectory.

在 2021 財年第四季度，我們很高興以強勁的業務復甦勢頭結束了這一年，因為市場對我們有效的學術課程和卓越的學習體驗的需求仍然強勁。我們繼續超越我們的收入指引，本季度學生總入學人數年增 26%，凸顯了我們穩健的復甦軌跡。

Our heavy emphasis on curriculum design and the development distinguished us as a trusted partner of choice for students in their pursuit of our academic and intellectual excellence. In addition, our exceptional educational resources and well-versed tutors with strong academic background ensure that our adaptive curricula and effective educational programs resonate with students' needs, helping them meet their desired learning outcomes and academic goals throughout the unprecedented year.

我們對課程設計和發展的高度重視使我們成為學生追求學術和智力卓越的值得信賴的首選合作夥伴。此外，我們卓越的教育資源和具有深厚學術背景的資深導師確保我們的適應性課程和有效的教育計劃與學生的需求產生共鳴，幫助他們在前所未有的一年中實現他們期望的學習成果和學術目標。

We are also very excited to see a set of accelerated enrollment retention rates across our class offerings for the spring season in Shanghai-based learning centers, as they reach some of the highest levels in our record history. Heading into fiscal 2022, we are more confident than ever that we are on the right track to further improve our operations and return to our pre-pandemic growth trajectory.

我們也非常高興地看到上海學習中心春季課程的入學留任率不斷提高，達到了我們歷史上的最高水準。進入 2022 財年，我們比以往任何時候都更有信心，相信我們正走在正確的軌道上，進一步改善我們的營運並恢復到疫情前的成長軌跡。

Student enrollment in our middle school programs maintained its growth momentum with a 78% year-over-year increase in the fourth quarter. Further demonstrating our curriculum development capabilities to capture market dynamics in the fast-evolving after-school education landscape.

我們的中學課程入學人數保持成長勢頭，第四季年增 78%。進一步展示我們的課程發展能力，以捕捉快速發展的課外教育領域的市場動態。

Our proven track record of delivering tangible learning outcomes enables us to generate a broader appeal for our well-aligned middle school course offerings and further cement our foothold in the after-school education market. In order to strengthen learning engagement and student loyalty, we continue to feature a wider spectrum of co-curricular and extracurricular programs, such as winter camps on writing, mathematical thinking, intangible culture, heritage, et cetera.

我們在提供實際學習成果方面的良好記錄使我們能夠對我們精心設計的中學課程產品產生更廣泛的吸引力，並進一步鞏固我們在課外教育市場的立足點。為了加強學習參與度和學生忠誠度，我們繼續提供更廣泛的課外活動，例如寫作、數學思維、非物質文化、遺產等冬令營。

As part of efforts to expand our educational service portfolio, we have collaborated with community service providers to establish a community-based study room chain brand, the best learning space, which aims to deliver a wide range of educational programs, such as educational salons, study planning, self-study rooms, et cetera. We will also leverage the best to host various education-related events across online and offline venues to tap into a broader base of lifelong learners.

作為拓展教育服務組合的一部分，我們與社區服務提供者合作，建立社區自習室連鎖品牌“最佳學習空間”，旨在提供廣泛的教育項目，例如教育沙龍、學習計劃、自習室等等。我們還將利用最好的資源，在線上和線下舉辦各種與教育相關的活動，以吸引更廣泛的終身學習者。

Additionally, we will cooperate with tech-focused Internet companies such as Tencent to explore the possibilities of delivery intelligent education to various consumers. Our learning space will support our endeavors to reach a wide student base and their daily and basic learning needs. Furthermore, our efforts to optimize our nationwide learning center network continued during the quarter as we add a new center outside Shanghai, a further testament to the growing organic demand for high-quality K-12 after-school tutoring services across the nation.

此外，我們也將與騰訊等科技互聯網公司合作，探索提供各類消費者智慧教育的可能性。我們的學習空間將支持我們努力滿足廣泛的學生群體及其日常和基本學習需求。此外，本季度我們繼續努力優化全國學習中心網絡，在上海以外增設了一個新中心，這進一步證明了全國範圍內對高品質 K-12 課外輔導服務不斷增長的有機需求。

Going forward, we'll continue to enhance our stellar cost and service offerings in the K-12 after-school market to propel sustainable business development while simultaneously exploring new growth avenues. Also in the best-in-class educational programs and a strong tutoring team, we're confident in our ability to serve a broader user base in the pursuit of better learning experience while delivering long-term value to our shareholders.

展望未來，我們將繼續增強 K-12 課外市場的一流成本和服務，以推動永續業務發展，同時探索新的成長途徑。此外，憑藉一流的教育計畫和強大的輔導團隊，我們有信心為更廣泛的用戶群提供服務，追求更好的學習體驗，同時為股東創造長期價值。

With that, I will now turn the call over to our Vice President of Finance, Ms. Xun Wang, who will discuss our key financial results.

現在，我將把電話轉給我們的財務副總裁王迅女士，她將討論我們的主要財務表現。

Thank you, Joanne, and hello, everyone. Now let's move to the financial results. Revenue was RMB 70.2 million for the fourth quarter of fiscal year 2021 compared with RMB 71.1 million in the same period of last year. Cost of revenue decreased by 9.4% to RMB 41.9 million for the fourth quarter of fiscal year 2021 from RMB 46.3 million in the same period of last year. Gross profit increased by 14.1% to RMB 28.3 million for the fourth quarter of fiscal year 2021 from RMB 24.8 million in the same period of last year.

謝謝喬安妮，大家好。現在讓我們來看看財務業績。2021財年第四季營收為人民幣7,020萬元，上年同期營收為人民幣7,110萬元。2021財年第四季營收成本從去年同期的人民幣4,630萬元下降9.4%至人民幣4,190萬元。2021財年第四季毛利由去年同期的人民幣2,480萬元成長14.1%至人民幣2,830萬元。

General and administrative expenses decreased by 29.0% to RMB 28.3 million for the fourth quarter of fiscal year 2021 from RMB 39.8 million in the same period of last year, primarily attributable to the allowance accrued last year. Impairment loss on intangible assets and goodwill was 0 for the fourth quarter of fiscal year 2021 compared to RMB 145.4 million in the same period of last year. Sales and marketing expense increased by 10.2% to RMB 8.5 million in the -- for the fourth quarter of fiscal year 2021 from RMB 7.7 million in the same period of last year.

2021財年第四季的一般及管理費用從去年同期的人民幣3,980萬元下降29.0%至人民幣2,830萬元，主要是由於去年提列的備抵所致。2021財年第四季無形資產及商譽減損損失為0，去年同期為1.454億元。2021財年第四季銷售和行銷費用從去年同期的770萬元成長10.2%至850萬元。

Operating loss was RMB 8.5 million for the fourth quarter of fiscal year 2021 compared with RMB 168.2 million in the same period of last year. Adjusted operating income loss was RMB 1.9 million for the fourth quarter of fiscal year 2021 compared with RMB 15.1 million in the same period of last year.

2021財年第四季營運虧損為人民幣850萬元，去年同期為人民幣1.682億元。2021財年第四季調整後營業收入虧損為人民幣190萬元，去年同期為人民幣1,510萬元。

Other income, net was RMB 0.6 million for the fourth quarter of fiscal year 2021 compared with RMB 4.9 million in the same period of last year, primarily due to investment fair value change and foreign exchange loss. Income tax expenses was RMB 4.7 million for the fourth quarter of fiscal year 2021 compared with benefit of RMB 15.7 million in the same period of last year, primarily attributable to the valuation allowance of deferred tax assets recorded in the fiscal year 2021.

2021財年第四季其他收入淨額為人民幣60萬元，去年同期為人民幣490萬元，主要是由於投資公允價值變動及外匯損失。2021財年第四季所得稅費用為人民幣470萬元，去年同期收益為人民幣1,570萬元，主要歸因於2021財年記錄的遞延所得稅資產的估價備抵。

Net loss was RMB 11.5 million during the fourth quarter of fiscal year 2021 compared with RMB 145.4 million in the same period of last year. Adjusted net loss was RMB 4.2 million compared with RMB 4.7 million in the same period of last year.

2021財年第四季淨虧損為人民幣1,150萬元，去年同期淨虧損為1.454億元。調整後淨虧損為人民幣420萬元，去年同期為人民幣470萬元。

Basic and diluted net loss per ADS attributable to ordinary shareholders for the fourth quarter of fiscal year 2021 were both RMB 0.25 compared with both RMB 3.11 for the same period of last year. Adjusted basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB 0.09 compared with both RMB 0.07 for the same period of last year.

2021財年第四季歸屬於普通股股東的每股ADS基本及攤薄淨虧損均為人民幣0.25元，而去年同期均為人民幣3.11元。調整後歸屬於普通股股東的每股美國存託股基本虧損和稀釋後淨虧損均為人民幣0.09元，去年同期均為0.07元人民幣。

Cash and cash equivalents. As of February 28, 2021, the company had cash and cash equivalents of RMB 410 million compared with RMB 404.7 million as of February 29, 2020.

現金及現金等價物。截至2021年2月28日，該公司擁有現金及現金等價物為人民幣4.1億元，截至2020年2月29日為人民幣4.047億元。

To be mindful of the length of our earnings call for the fiscal year 2021 financial results, I'll encourage listeners to refer to our earnings press release for further details.

為了注意我們 2021 財年財務業績的財報電話會議的長度，我鼓勵聽眾參考我們的財報新聞稿以了解更多詳細資訊。

Looking forward, for the first quarter of fiscal year 2022, the company expects to generate revenues in the range of RMB 67.5 million to RMB 70.4 million, representing an increase of 15% to 20% on a year-over-year basis. The above guidance reflects the company's current and preliminary view, which is subject to change.

展望2022財年第一季度，公司預計營收在6,750萬元至7,040萬元人民幣之間，較去年同期成長15%至20%。上述指導意見反映了公司目前的初步觀點，可能會發生變化。

This concludes my portion of prepared remarks. We will now open the call to questions. Operator, please go ahead.

我準備好的發言部分到此結束。我們現在開始提問。接線員，請繼續。

(Operator Instructions) As there are no further questions now, I would like to turn the call back over to the company for closing remarks.

（操作員說明） 由於現在沒有其他問題，我想將電話轉回公司進行結束語。

Thank you once again for joining us today. If you have further questions, please feel free to contact Four Seasons' Investor Relations through the contact information provided on our website or the Piacente Group Investor Relations.

再次感謝您今天加入我們。如果您還有其他疑問，請隨時透過我們網站上提供的聯絡資訊或 Piacente 集團投資者關係部門聯繫四季投資者關係部門。

This concludes this conference call. You may now disconnect your line. Thank you.

本次電話會議到此結束。現在您可以斷開線路。謝謝。