TAL Education Group (TAL) 2023 Q4 法說會逐字稿

Ladies and gentlemen, good day, and thank you for standing by. Welcome to TAL Education Group Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. (Operator Instructions). I'd now like to hand the conference over to Mr. Jackson Ding, Investor Relations Director. Thank you. Please go ahead, sir.

女士們，先生們，美好的一天，感謝你們的支持。歡迎來到好未來教育集團第四季度和 2023 財年收益電話會議。 （操作員說明）。我現在想把會議交給投資者關係總監 Jackson Ding 先生。謝謝。請繼續，先生。

Thank you, operator. Thank you all for joining us today for TAL Education Group Fourth Fiscal Quarter and Full Fiscal Year 2023 Earnings Conference Call. The earnings release was distributed earlier today, and you may find a copy on the company's IR website or through the newsletters.

謝謝你，運營商。感謝大家今天參加我們的好未來第四財季和 2023 財年全年收益電話會議。收益發佈於今天早些時候發布，您可以在公司的 IR 網站或通過新聞通訊找到一份副本。

During this call, you will hear from Mr. Alex Peng, President and Chief Financial Officer; and myself, Investor Relations Director. Following the prepared remarks, Mr. Peng and I will be available to answer your questions.

在此次電話會議中，您將聽到總裁兼首席財務官 Alex Peng 先生的講話；和我自己，投資者關係總監。在準備好的發言之後，彭先生和我將可以回答您的問題。

Before we continue, please note that today's discussions 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 are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. For more information about these risks and uncertainties, please refer to our 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。前瞻性陳述受風險和不確定因素的影響，可能導致實際結果大不相同從我們目前的期望。潛在風險和不確定性包括但不限於我們向美國證券交易委員會提交的公開文件中概述的風險和不確定性。有關這些風險和不確定性的更多信息，請參閱我們向美國證券交易委員會提交的文件。

Also, our earnings release and this call include discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures. I would like to now turn the call over to Mr. Alex Peng . Alex, please go ahead.

此外，我們的收益發布和本次電話會議包括對某些非 GAAP 財務措施的討論。請參閱我們的收益發布，其中包含非 GAAP 措施與最直接可比的 GAAP 措施的調節。我現在想把電話轉給 Alex Peng 先生。亞歷克斯，請繼續。

Thanks, Jackson. I appreciate you all for joining us on today's call. I would like to take this opportunity to share with you our progress for the fourth fiscal quarter as well as review some key results from the full fiscal year 2023.

謝謝，傑克遜。感謝大家參加今天的電話會議。我想藉此機會與大家分享我們在第四財季取得的進展，並回顧 2023 財年的一些關鍵成果。

Let's start with our financial performance for the fourth fiscal quarter of 2023. We continue to improve our service offerings, develop new initiatives and progress our strategic transformation road map. As a result, for the fourth fiscal quarter ending on February 28, 2023, we recorded USD 269 million and RMB 1.845 billion in net revenues for the quarter. The net revenues increased by 11% and 16% in RMB and U.S. dollar terms compared to the third fiscal quarter, respectively.

讓我們從 2023 年第四財季的財務業績開始。我們將繼續改進我們的服務產品，制定新計劃並推進我們的戰略轉型路線圖。因此，在截至 2023 年 2 月 28 日的第四財季，我們錄得 2.69 億美元和 18.45 億元人民幣的淨收入。與第三財季相比，以人民幣和美元計算的淨收入分別增長了 11% 和 16%。

In terms of profitability, for the fiscal quarter ended on February 28, 2023, we reported USD 18.1 million and USD 13.1 million in non-GAAP loss from operations and non-GAAP net loss attributable to TAL, respective. For the full fiscal year of 2023, we reported net revenues of more than USD 1 billion and generated positive non-GAAP operating profit.

在盈利能力方面，在截至 2023 年 2 月 28 日的財政季度，我們分別報告了 1810 萬美元和 1310 萬美元的非 GAAP 運營虧損和歸屬於好未來的非 GAAP 淨虧損。在 2023 年的整個財政年度，我們報告的淨收入超過 10 億美元，並產生了正的非 GAAP 營業利潤。

Fiscal year 2023 was a year of transformation for TAL. This was the first full fiscal year of our operations following the cessation of offering academic subjects to students from Kindergarten through to Grade 9 in the Mainland of China. In fiscal year 2023, some of our newer initiatives such as the enrichment learning, smart books and smart devices exhibited material development. While we are encouraged by these developments, we continue to upgrade our product offerings and improve our operational efficiency.

2023 財年是好未來轉型的一年。這是繼停止向中國大陸從幼兒園到 9 年級的學生提供學術科目後，我們運營的第一個完整財政年度。在 2023 財年，我們的一些新舉措（例如豐富學習、智能書籍和智能設備）展示了材料開發。雖然我們對這些發展感到鼓舞，但我們繼續升級我們的產品並提高我們的運營效率。

We believe the combination of these efforts by our team and all of our partners laid a solid foundation for our long-term sustainable development. As the industry evolves and technology advances, we'll endeavor to explore and seize new opportunities. At the same time, we would like to take this opportunity to express our gratitude to all of you for your continued support during our transformation journey. As the whole industry endorses analogical evolution, we look forward to TAL's next page of development.

我們相信，我們團隊和所有合作夥伴的共同努力為我們的長期可持續發展奠定了堅實的基礎。隨著行業的發展和技術的進步，我們將努力探索和抓住新的機遇。同時，我們也想藉此機會感謝大家在我們轉型過程中一直以來對我們的支持。在全行業都認可類比進化的情況下，我們期待好未來的下一頁發展。

With that overview, I would like to hand the call over to Jackson. He will give you an update on the operational development of our corporate perform and review our fourth fiscal quarter and for fiscal year's financial results. After that, I'll give an update on our go-forward strategy and plans for fiscal year 2024. We will then open the call for questions. Jackson, please go ahead.

有了這個概述，我想把電話交給傑克遜。他將向您介紹我們公司的運營發展情況，並回顧我們的第四財季和財年的財務業績。之後，我將介紹我們 2024 財年的前進戰略和計劃的最新情況。然後我們將公開提問。傑克遜，請繼續。

Thank you, Alex. I'm pleased to share some details on the progress we've made in our 3 main business lines this past quarter. Before we start, please note that the financial data are based on our unaudited results report. First of all, let me talk about our learning services, which accounted for around 75% of our total revenues in this fiscal quarter.

謝謝你，亞歷克斯。我很高興分享我們在過去一個季度的 3 大主要業務領域取得的進展的一些細節。在我們開始之前，請注意財務數據基於我們未經審計的結果報告。首先，讓我談談我們的學習服務，它佔本財季總收入的 75% 左右。

Our enrichment learning programs continue to develop in this quarter, and it is our largest revenue contributor within learning services. The net revenues generated from the enrichment learning programs grew quarter-over-quarter, primarily as a result of an increase in long-term "learner enrollment." During this quarter, we have observed signs of recovery in offline activity, which has had a positive impact on offline enrichment learning services.

我們的強化學習計劃在本季度繼續發展，它是我們在學習服務中最大的收入貢獻者。強化學習計劃產生的淨收入環比增長，主要是由於長期“學習者入學率”的增加。本季度，我們觀察到線下活動恢復的跡象，這對線下強化學習服務產生了積極影響。

As a result, we expanded our learning center network in this quarter. Going forward, we'll continue to manage our network expansion plan in accordance with market demand and business efficiency. With automatic learning services business continues on its development path. Think Academy, our overseas learning service business also maintained its growth momentum. For the fourth quarter of fiscal year 2023, Think Academy once again realized a year-over-year triple-digit growth in both total revenues and long-term development in learning.

因此，我們在本季度擴大了學習中心網絡。展望未來，我們將繼續根據市場需求和業務效率管理我們的網絡擴展計劃。借助自動學習服務，業務繼續在其發展道路上前進。 Think Academy，我們的海外學習服務業務也保持了增長勢頭。 2023財年第四季度，Think Academy的總收入和學習的長期發展再次實現了同比三位數的增長。

Moving on to our content solutions business, which accounted for more than 15% of total net revenues for the quarter. In this quarter, content solutions recorded year-over-year growth, driven by our product development and go-to-market capability. We continue to roll out new SKUs based on learner demand during different times of the year. In the fourth fiscal quarter, we launched a new smartphone that provides learners with a comprehensive and interactive learning experience for the winter -- a total of more than 40,000 copies -- sorry, a total of more than 400,000 copies have been sold in the fourth fiscal quarter.

繼續我們的內容解決方案業務，該業務佔本季度總淨收入的 15% 以上。在本季度，內容解決方案在我們的產品開發和上市能力的推動下實現了同比增長。我們在一年中的不同時間繼續根據學習者的需求推出新的 SKU。在第四財季，我們推出了一款新的智能手機，為學習者提供全面的冬季互動學習體驗——共計超過 40,000 份——抱歉，第四季度共售出超過 400,000 份財政季度。

A key element of our content solutions is to combine quality learning content with product formats that applies innovative technology. In February, we launched (inaudible), an AI-driven learning device with an 11-inch screen display designed with high protection function. The content library of (inaudible) includes both self-developed content and content from journal partners.

我們內容解決方案的一個關鍵要素是將高質量的學習內容與應用創新技術的產品格式相結合。 2 月，我們推出了（聽不清）一款 AI 驅動的學習設備，具有 11 英寸屏幕顯示，設計具有高保護功能。 （聽不清）的內容庫包括自主開發的內容和來自期刊合作夥伴的內容。

By combining intelligent functions such as personalized content, learners can have a personalized and interactive learning experience. We have been selling this product through live streaming, e-commerce and other channels. We have received some positive feedback from our customers on this product, and we'll continue to upgrade the product based on user input and our understanding of the market. With that overview, I would now like to walk you through our key financial results or profit.

通過結合個性化內容等智能功能，學習者可以獲得個性化、交互式的學習體驗。我們一直在通過直播、電商等渠道銷售這款產品。我們已經收到客戶對此產品的一些積極反饋，我們將根據用戶反饋和我們對市場的了解繼續升級產品。有了這個概述，我現在想向您介紹我們的主要財務業績或利潤。

Our net revenues totaled USD 269 million, representing a 50.3% decrease from USD 541.2 million in the same period last year. The decline in revenue was a result of the citation of offering academic subjects to students from Kindergarten through 9th Grade in the Mainland of China. Cost of revenues decreased by 35.5% year-over-year to USD 127.7 million from USD 198.1 million in the fourth quarter of fiscal year 2020. Non-GAAP cost of revenues, which excludes share-based compensation expenses, decreased by 36.9% to USD 124.9 million from USD 197.9 million in the fourth quarter of fiscal year 2022.

我們的淨收入總計 2.69 億美元，比去年同期的 5.412 億美元下降 50.3%。收益下降乃由於向中國內地幼稚園至九年級的學生提供學術科目所致。收入成本從 2020 財年第四季度的 1.981 億美元同比下降 35.5% 至 1.277 億美元。非 GAAP 收入成本（不包括基於股份的薪酬支出）下降 36.9% 至美元從 2022 財年第四季度的 1.979 億美元增加到 1.249 億美元。

Gross profit decreased by 58.8% to USD 141.3 million from USD 343.1 million in the fourth quarter of fiscal year 2022. Selling and marketing expenses decreased by 28% to USD 74.5 million from USD 103.5 million in the same period last year. Non-GAAP selling and marketing expenses, which excludes share-based compensation, decreased by 40.9% year-over-year to USD 56.9 million from USD 113.1 million in the same period last year.

毛利潤從 2022 財年第四季度的 3.431 億美元下降 58.8% 至 1.413 億美元。銷售和營銷費用從去年同期的 1.035 億美元下降 28% 至 7450 萬美元。不包括基於股份的薪酬的非美國通用會計準則銷售和營銷費用同比下降 40.9%，從去年同期的 1.131 億美元降至 5690 萬美元。

The year-over-year decrease was primarily the result of a reduced number of zoning and marketing activities. General and administrative expenses decreased by 47.1% to USD 112.2 million from $212.1 million in the fourth fiscal quarter last year. Non-GAAP general and administrative expenses, which excludes share-based compensation costs decreased by 53.5% year-over-year to USD 96.3 million from USD 202.5 million in the same period of fiscal 2022.

同比下降主要是由於分區和營銷活動數量減少。一般和行政費用從去年第四財季的 2.121 億美元下降 47.1% 至 1.122 億美元。不包括基於股份的薪酬成本的非美國通用會計準則一般和行政費用從 2022 財年同期的 2.025 億美元同比下降 53.5% 至 9630 萬美元。

Loss from operations was USD 44.4 million compared with an income of USD 0.6 million in the fourth fiscal quarter of fiscal year 2022. Non-GAAP loss from operations, which excludes share-based compensation expenses, was USD 18.1 million compared with an income of USD 0.8 million in the same period of the prior fiscal year. The year-over-year decrease in operating loss was primarily a result of the cessation of offering academic subjects to students from Kindergarten through 9th Grade in Mainland China, annual investments with several initiatives in this quarter designed to support our business position.

運營虧損為 4,440 萬美元，而 2022 財年第四財季的收入為 60 萬美元。非美國通用會計準則運營虧損（不包括基於股份的補償費用）為 1,810 萬美元，而收入為上一財年同期80萬。營業虧損同比減少主要是由於停止向中國大陸從幼兒園到 9 年級的學生提供學術科目，本季度的年度投資和多項旨在支持我們業務地位的舉措。

Net loss attributable to TAL was USD 39.4 million in this quarter compared with a net loss of USD 108.1 million in the same period of the prior fiscal. Non-GAAP net loss attributable to TAL, which excludes share-based compensation expenses, was USD 13.1 million compared with a loss of USD 108.0 million in the same period of the prior -- turning to our balance sheet. As of February 28, 2023, we had USD 2.022 billion of cash and cash equipment; USD 1.15 billion of short-term investments and $273 million in current and noncurrent restricted cash.

本季度歸屬於好未來的淨虧損為 3940 萬美元，而上一財年同期為淨虧損 1.081 億美元。非美國通用會計準則歸屬於 TAL 的淨虧損（不包括基於股份的補償費用）為 1310 萬美元，而上一時期同期為虧損 1.08 億美元——轉向我們的資產負債表。截至2023年2月28日，我們擁有現金及現金設備20.22億美元； 11.5 億美元的短期投資和 2.73 億美元的流動和非流動受限現金。

Our deferred revenue balance was USD 237 million as of the end of the fourth fiscal quarter. Comparing with USD 187.7 million as of February 28, 2022. Turning now to the fiscal year 2023 financial results. Let me briefly review from these financials and as well. Fiscal year net revenues decreased by 76.8% to USD 1,019,800,000. Gross profit decreased by 37.7% to $583.4 million.

截至第四財季末，我們的遞延收入餘額為 2.37 億美元。與截至 2022 年 2 月 28 日的 1.877 億美元相比。現在轉向 2023 財年的財務業績。讓我簡要回顧一下這些財務狀況。財年淨收入下降 76.8% 至 1,019,800,000 美元。毛利潤下降 37.7% 至 5.834 億美元。

Loss from operations was $90.7 million in the fiscal year 2023 compared to the loss of operations of $614.5 million in the prior year. Non-GAAP income from operations, which excluded share-based compensation expense was $17.8 million for the fiscal year 2023 compared to non-GAAP loss from operations of $439.7 million for fiscal year 2022.

2023 財年的運營虧損為 9070 萬美元，而上一年的運營虧損為 6.145 億美元。 2023 財年的非 GAAP 運營收入（不包括股權激勵費用）為 1780 萬美元，而 2022 財年的非 GAAP 運營虧損為 4.397 億美元。

Net loss attributable to TAL was $135.6 million in the fiscal year 2023 compared to the net loss attributable to TAL of USD 1,136,100,000 in the previous fiscal. Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was $27 million compared to non-GAAP net income attributable to TAL of $961.3 million in fiscal year 2022. That concludes the financial highlights section. I'll now hand the call back to Alex to briefly update you on our business strategy now. Alex, please go ahead.

2023 財年歸屬於好未來的淨虧損為 1.356 億美元，而上一財年歸屬於好未來的淨虧損為 11.361 億美元。 2022 財年歸屬於 TAL 的非 GAAP 淨虧損為 2700 萬美元（不包括基於股份的補償費用），而歸屬於 TAL 的非 GAAP 淨利潤為 9.613 億美元。財務摘要部分到此結束。我現在將電話轉回給亞歷克斯，向您簡要介紹我們的業務戰略。亞歷克斯，請繼續。

Thanks, Jackson. As we move into fiscal year 2024, I would like to share with you 3 key directions that are really simple to our strategy. First, in terms of execution of our current business, some of our businesses such as (inaudible) learning, really demonstrated the viable business model, while others are still in exploratory basis.

謝謝，傑克遜。隨著我們進入 2024 財年，我想與大家分享 3 個對我們的戰略來說非常簡單的關鍵方向。首先，在我們當前業務的執行方面，我們的一些業務，如（聽不清）學習，確實展示了可行的商業模式，而其他業務仍處於探索階段。

As for the more mature businesses, we plan to balance growth and profitability and manage our operational efficiency. But the business is still in exploratory phases such as learning device, we'll focus more on product markets and creating value for our customers. We expect our overall revenue to exhibit year-over-year growth in FY '24 and we'll manage our profitability overall.

至於更成熟的業務，我們計劃平衡增長和盈利能力，並管理我們的運營效率。但業務仍處於學習設備等探索階段，我們將更加專注於產品市場，為客戶創造價值。我們預計我們的總收入將在 24 財年實現同比增長，我們將全面管理我們的盈利能力。

AI technologies are broad and continue to bring profound changes to the learning industry, particularly with regards of how content will be developed and how services will be delivered. The adoption of AI technologies will create a new paradigm in our industry, and it presents significant opportunities as well as challenges.

人工智能技術範圍廣泛，並將繼續為學習行業帶來深刻的變化，尤其是在內容開發方式和服務交付方式方面。人工智能技術的採用將在我們的行業中創造一個新的範例，它帶來了巨大的機遇和挑戰。

We'll continue to innovate our business, adopt new technologies and aim to seize new opportunities well for by this new wave of technology. Whereas, we look for ways to generate shareholder return. In the last 12 months, under the share repurchase program from April 2022 through April 2023. The company spends approximately USD 66.4 million to repurchase 17.9 million shares of its American deposit ratio, representing 2.31% of total share outstanding of February 28, 2023.

我們將繼續創新我們的業務，採用新技術，並致力於抓住這一新技術浪潮帶來的新機遇。鑑於我們正在尋找產生股東回報的方法。在過去的 12 個月裡，根據 2022 年 4 月至 2023 年 4 月的股票回購計劃，公司斥資約 6640 萬美元回購了其美國存款比例的 1790 萬股股票，佔 2023 年 2 月 28 日已發行股票總數的 2.31%。

TAL's Board of Directors has authorized to expand its share repurchase program by 12 months. As I come to the end of my prepared remarks, I'd just like to share with everyone that I've been doing quite some reading on artificial intelligence, academic papers, articles and actually books. And I actually found that particularly (inaudible) that is widely attributed to ALK, the American Superior Sciences was also accredited of inventing upwards and intense learning.

TAL 的董事會已授權將其股票回購計劃延長 12 個月。當我準備好的發言結束時，我只想與大家分享我一直在閱讀有關人工智能、學術論文、文章和書籍的大量書籍。我實際上發現，特別是（聽不清）廣泛歸因於 ALK，美國高級科學也被認可發明向上和強化學習。

The best way to predict the future is to invent it. The best way to predict the future is to invent it. With this in the near where technology can evolve as a precedent and rather than reacting to the new opportunities brought forth by evolving technologies, we intend to proactively create them. So that concludes my prepared remarks. Operator, we're now ready to open the call for questions.

預測未來的最好方法就是創造它。預測未來的最好方法就是創造它。鑑於此，在技術可以作為先例發展的附近，而不是對不斷發展的技術帶來的新機遇做出反應，我們打算主動創造它們。我準備好的發言到此結束。接線員，我們現在可以開始提問了。

Thank you. We will now begin the question and answer session. (Operator Instructions). Our first question comes from the line of Felix Liu from UBS.

謝謝。我們現在開始問答環節。 （操作員說明）。我們的第一個問題來自瑞銀的 Felix Liu。

Thank you, Jackson, and thank you, Alex. I understand that we are investing a lot into the future, as you mentioned. And one of this area includes smart hardware. I noticed that you recently launched a new tablet and so a good development there. So I think my question is on the long-term addressable market for learning hardware. What do you think -- how big the market is? What is the unit economics that you would predict and what are the impact to our margin for the next fiscal year?

謝謝你，傑克遜，謝謝你，亞歷克斯。正如你提到的，我知道我們正在為未來投資很多。其中一個領域包括智能硬件。我注意到你們最近推出了一款新的平板電腦，因此發展勢頭良好。所以我認為我的問題是關於學習硬件的長期可尋址市場。你怎麼看——市場有多大？您預測的單位經濟效益是多少？對我們下一財年的利潤率有何影響？

Thanks, Felix. This is Alex. Let me take on that question. I think on the TAM question, we've obviously been reading and doing research. And I think if you go with the narrow definition of smart learning pad, we are looking at an annual shipment of about 4 million to 5 million units per year. But I would also add to that, that the actual target market is not just that narrow definition of learning pad. We're obviously seeing a lot of tablet -- general-purpose tablets are being used for the learning scenario. And if you add that to the total TAM, we're probably looking at maybe $10 million and even north of $10 million in terms of shipment. So this is a significant market in terms of TAM. Right now, I think our focus is really on optimizing the functionality of smart devices to enable students to use them more actively. We're also paying a lot of attention to managing the supply chain and optimizing costs. Right now, the business is really in it's pretty early stages. And we're confident that we'll have a positive impact on our revenue growth. So I hope that answers your question.

謝謝，菲利克斯。這是亞歷克斯。讓我來回答這個問題。我認為關於 TAM 問題，我們顯然一直在閱讀和研究。而且我認為，如果您採用智能學習墊的狹義定義，我們預計每年的出貨量約為 400 萬至 500 萬台。但我還要補充一點，實際的目標市場不僅僅是學習墊的狹義定義。我們顯然看到了很多平板電腦——通用平板電腦被用於學習場景。如果你把它加到總 TAM 中，就出貨量而言，我們可能會看到 1000 萬美元甚至超過 1000 萬美元。因此，就 TAM 而言，這是一個重要的市場。現在，我認為我們的重點實際上是優化智能設備的功能，讓學生能夠更積極地使用它們。我們也非常關注管理供應鍊和優化成本。目前，該業務確實處於早期階段。我們相信我們將對我們的收入增長產生積極影響。所以我希望這能回答你的問題。

Okay. Thank you.

好的。謝謝。

Thank you. Our next question comes from the line of [Howard Sun] from Macquarie. Howard.

謝謝。我們的下一個問題來自麥格理的[Howard Sun]。霍華德。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

Okay. I wanted to ask on the company's cash balance. So I see that you have a strong cash balance continuing as before. What is going to be the future direction in terms of investments? And could you elaborate more on how and when you're going to progress with your share repurchase plan?

好的。我想問一下公司的現金餘額。所以我看到你的現金餘額和以前一樣強勁。未來的投資方向是什麼？你能否詳細說明你將如何以及何時推進你的股票回購計劃？

Howard, thank you for the question. And this is Jackson. I'll take this one. We have about $3.4 billion in cash, cash equivalents, short-term investments and restricted cash, both current and non-current. In terms of use of cash, there are 3 main areas in the next -- in this new fiscal year where we intend to invest -- intend to use the cash. One is that some of the new -- some initiatives are still in exploratory phases, such as learning device, such as overseas learning services. So we'll continue to fund these initiatives. And secondly, as Alex talked about earlier, our industry is evolving and new technologies are developing. So we'll seek opportunities to make strategic investments into adopting new technologies in our business. And lastly, we continue to look for ways to generate shareholder returns. We used about a total of $66 million in total considerations in the last year in our share buyback program. We'll continue to seek to -- we'll continue to seek opportunities to generate return for our shareholders through our share buyback program. I hope that answers your question, Howard.

霍華德，謝謝你的提問。這是傑克遜。我要這個。我們擁有大約 34 億美元的現金、現金等價物、短期投資和受限現金，包括流動和非流動現金。在現金使用方面，未來有 3 個主要領域——在我們打算投資的新財政年度——打算使用現金。一是一些新的——一些舉措還處於探索階段，比如學習設備，比如海外學習服務。因此，我們將繼續資助這些舉措。其次，正如亞歷克斯之前所說，我們的行業正在發展，新技術正在發展。因此，我們將尋求機會進行戰略投資，以在我們的業務中採用新技術。最後，我們繼續尋找產生股東回報的方法。去年，我們在股票回購計劃中總共使用了約 6600 萬美元的總對價。我們將繼續尋求——我們將繼續尋求機會，通過我們的股票回購計劃為我們的股東創造回報。我希望這能回答你的問題，霍華德。

Yes. Thank you for the detailed explanation.

是的。謝謝你的詳細解釋。

Here. Our next question comes from the line of Tommy Wong from CMS.

這裡。我們的下一個問題來自 CMS 的 Tommy Wong。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

I just have 2 questions. First, can you share with us any operating data on the enrichment learning program? And my second question is that recently, investors have kind of a very mixed feeling about kind of consumption recovery in China, some good some bad. I'm just wondering what's your feel on the ground? And how is that looking going into the summer high season.

我只有兩個問題。首先，您能分享一下增補學習項目的運營數據嗎？我的第二個問題是，最近，投資者對中國的消費復甦有一種非常複雜的感覺，有好有壞。我只是想知道你在現場的感覺如何？進入夏季旺季的情況如何。

Tommy, this is Jackson. I'll take this one. And just to clarify, the second part of your question was with regard to our perspective on consumer behaviors in China or consumption recovery in China? Was that your question?

湯米，這是傑克遜。我要這個。澄清一下，你問題的第二部分是關於我們對中國消費者行為或中國消費復甦的看法？那是你的問題嗎？

Yes. But kind of more to, obviously, to our business -- relating to our business, not the overall macro, obviously. Yes.

是的。但顯然，更多的是與我們的業務相關——與我們的業務相關，而不是整體宏觀。是的。

Right. Got it. Okay. So I'll take your first -- the first part of your question first. Operating metrics for enrichment learning. I would say, if we look at the quarter-over-quarter trend, enrichment learning grew both in terms of revenue and long-term course learner enrollment. And if we look at retention, I would say at the current retention rate, enrichment Learning has a viable business model. quarter-over-quarter retention rate has been fairly stable and various variants in retention rate across different subject areas for enrichment learnings has also been converging. With regards to the second part of your question, general consumption behavior, I'll just limit that question to how that reflects in our business. I would say in this last quarter, we did see some signs of increasing offline activities, and that has had a positive impact on our offline learning services business. I hope that answers your question, Tommy.

正確的。知道了。好的。所以我先回答你的問題——你問題的第一部分。豐富學習的操作指標。我想說，如果我們看一下環比趨勢，強化學習在收入和長期課程學習者註冊方面都有所增長。如果我們看保留率，我會說在目前的保留率下，充實學習有一個可行的商業模式。季度保留率一直相當穩定，不同學科領域的保留率變化也趨於一致。關於你問題的第二部分，一般消費行為，我將把這個問題限制在它如何反映在我們的業務中。我要說的是，在上個季度，我們確實看到了一些線下活動增加的跡象，這對我們的線下學習服務業務產生了積極影響。我希望這能回答你的問題，湯米。

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

謝謝。我們的下一個問題來自美國銀行證券的Lucy Yu。

Alex and Jackson. This is Lucy from (inaudible). Two questions here. First of all, we are approaching the new year of FY '24. Could you please give us some guidance on the outlook in terms of revenue and margins? And secondly is that on the enrichment courses or enrichment segments, how should we think about the expansion in the following year as well. So like how many teachers we are going to recruit, how many learning centers that we are going to expand.

亞歷克斯和傑克遜。我是來自（聽不清）的露西。這裡有兩個問題。首先，我們即將迎來 24 財年的新年。您能否就收入和利潤率的前景給我們一些指導？其次是在增補課程或增補環節上，我們應該如何考慮來年的擴展。所以就像我們要招聘多少老師，我們要擴大多少學習中心。

Thank you, Lucy, for the question. I'll take the second part -- this is Jackson again. I'll take the second part of the question first; in terms of expansion plan. I guess, first on the capacity side, we did expand our learning center network in this past quarter. And going forward, in the new fiscal year, we'll manage our expansion plan according to market demand and operating efficiency. You also asked about personnel and specifically teacher recruiting plans. I would just say that, that will be a -- we will -- we do intend to recruit additional teachers -- and the pace at which we do that will primarily depend on our business progression for enrichment learning. Lucy, the first part of your question was about guidance -- of guidance for fiscal '24. I would just say, in fiscal '24, we do expect revenue to grow year-over-year, and we'll manage profitability closely. I hope that answers your question, Lucy.

謝謝露西提出的問題。我來做第二部分——這又是傑克遜。我先回答問題的第二部分；在擴張計劃方面。我想，首先在容量方面，我們在上個季度確實擴展了我們的學習中心網絡。展望未來，在新的財政年度，我們將根據市場需求和運營效率來管理我們的擴張計劃。您還詢問了人員招聘計劃，特別是教師招聘計劃。我只想說，那將是——我們將——我們確實打算招聘更多的教師——我們這樣做的速度將主要取決於我們在豐富學習方面的業務進展。露西，你問題的第一部分是關於指導——24 財年的指導。我只想說，在 24 財年，我們確實預計收入將同比增長，我們將密切管理盈利能力。我希望這能回答你的問題，露西。

Thank you. Our next question comes from the line of Liping Zhao from CICC.

謝謝。我們的下一個問題來自中金公司的趙麗萍。

Sure. Alex and Jackson. So AI and large language model are really hot topic these days. Just wondering whether AIGP will change your business? And does the company have any specific product plans in the future?

當然。亞歷克斯和傑克遜。所以人工智能和大型語言模型是最近非常熱門的話題。只是想知道 AIGP 是否會改變您的業務？以及公司未來有什麼具體的產品計劃嗎？

Thanks, Liping. This is Alex. Let me take this one on. I think the short answer is yes, yes. I think the long answer, I've actually been traveling overseas, spent about 10 days overseas very recently talking to a number of mature and evolved companies and start-ups -- and really people in academics in the technology area, I think there's a profound sense of how the long-term impact of generative AI and large language model moves to the learning space. I think purposefully speaking, humans have managed to help machines learn. And this is very important. And this actually can combat and help us rethink and reimagine how we help other teams work. I think this is a very interesting but important context to this. fundamentally learning is based on knowledge and content. And this is exactly in the area of generative AI and large language models. So we think the impact will be very fundamental to the industry and to every learner's experience. TAL will for sure, actively and proactively embrace these changes. I think it's going to come in a few different areas. First of all, we are a large services provider -- and a number of operational efficiencies that come from utilizing large language model to assess to become essentially copilots to our teacher assistants and service providers. Secondly, as we mentioned before, we are also a content solutions provider. So again, there is going to be, I think, improvement in both the quality and quantity. And then as a result, the operational efficiency in terms of content production. And thirdly, I think we really look forward to bringing a new type of interaction between students and content based on the large language model and natural language interface. So all of these, I think, will have a pretty profound impact to the industry. Now I would hasten to add that this is going to be a journey. It's not going to happen tomorrow. It's going to be a continuous journey, and I think we're going to see the impact in the coming months and years to come. So Liping, I hope that answers your question.

謝謝，麗萍。這是亞歷克斯。讓我穿上這個。我認為簡短的回答是肯定的，是的。我認為答案很長，實際上我一直在海外旅行，最近在海外度過了大約 10 天，與許多成熟和發展的公司和初創企業交談——實際上是技術領域的學術界人士，我認為有一個深刻理解生成式人工智能和大型語言模型的長期影響如何轉移到學習空間。我認為有目的地說，人類已經設法幫助機器學習。這非常重要。這實際上可以打擊並幫助我們重新思考和重新構想我們如何幫助其他團隊工作。我認為這是一個非常有趣但很重要的背景。從根本上說，學習是基於知識和內容。而這正是在生成人工智能和大型語言模型領域。因此，我們認為這種影響對於行業和每個學習者的體驗都將是非常根本的。好未來肯定會積極主動地接受這些變化。我認為它將出現在幾個不同的領域。首先，我們是一家大型服務提供商——利用大型語言模型評估運營效率，使其成為我們的教師助理和服務提供商的副駕駛。其次，正如我們之前提到的，我們也是內容解決方案提供商。因此，我認為，質量和數量都會有所改善。結果是，內容製作方面的運營效率。第三，我認為我們真的很期待基於大型語言模型和自然語言界面在學生和內容之間帶來一種新型的互動。所以我認為，所有這些都會對行業產生非常深遠的影響。現在我要趕緊補充說，這將是一段旅程。這不會發生在明天。這將是一個持續的旅程，我認為我們將在未來幾個月和幾年內看到其影響。所以麗萍，我希望這能回答你的問題。

Got it.

知道了。

Great. We have reached the end of the question-and-answer session. We thank you all very much for your questions. I'd now like to turn the conference back to the management team for closing remarks.

偉大的。我們已經結束了問答環節。我們非常感謝大家提出的問題。我現在想把會議轉回給管理團隊作閉幕詞。

Thank you, operator. One quick clarification before we end this call. Non-GAAP net loss attributable to TAL -- when I was going over the full fiscal year financial performance, I want to clarify that non-GAAP loss attributable to TAL, which excluded share-based compensation expenses, was USD 27.0 million compared to non-GAAP net loss attributable to TAL of USD 961.3 million in the fiscal year 2022. With that, thank you again for taking your time today, and we look forward to speaking with you next quarter.

謝謝你，運營商。在我們結束本次電話會議之前，請快速澄清一下。歸屬於好未來的非美國通用會計準則淨虧損——當我回顧整個財政年度的財務業績時，我想澄清一下，歸屬於好未來的非美國通用會計準則虧損（不包括基於股份的補償費用）與非美國通用會計準則相比為 2700 萬美元- 2022 財年歸屬於 TAL 的 GAAP 淨虧損為 9.613 億美元。因此，再次感謝您今天抽出時間，我們期待下個季度與您交談。

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。