TAL Education Group (TAL) 2026 Q1 法說會逐字稿

Ladies and gentlemen, good day and thank you for standing by. Welcome to TAL Education Group's fiscal 2026 first quarter earnings conference call. At this time, all participants are in a listen-only mood. After the speaker's presentation, there will be a question and answer session. Please be informed that today's conference is being recorded.

女士們、先生們，大家好，感謝你們的支持。歡迎參加好未來教育集團2026財年第一季財報電話會議。此時，所有參與者都處於只聽的狀態。演講者演講結束後，將有問答環節。請注意，今天的會議正在錄製中。

And I'd like to hand the conference over to Ms. Fong Liu, Investor Relations Director. Thank you. Please go ahead.

我想將會議交給投資者關係總監劉芳女士。謝謝。請繼續。

Thank you all for joining us today for TAL Education Group's first quarter fiscal year 2026 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 news wires.

感謝大家今天參加好未來教育集團2026財年第一季財報電話會議。該收益報告已於今天早些時候發布，您可以在公司的 IR 網站或透過新聞通訊社找到一份副本。

During this call, you will hear from Mr. Alex Peng, President and Chief Financial Officer, and Mr. Jackson Ding, Deputy Chief Financial Officer.

在本次電話會議中，您將聽到總裁兼財務長 Alex Peng 先生和副財務長 Jackson Ding 先生的演講。

Following the prepared remarks, Mr. Fang and Mr. Ding will be available to answer your questions.

準備好的發言之後，方先生和丁先生將回答大家的提問。

Before we continue, please note that today's discussions will contain forward-looking statements made under the set type of provisions of the US 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.

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規定類型做出的前瞻性陳述。前瞻性陳述受風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異。

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. Also, our earnings release and this call include discussions of certain non-GAAP financial measures. It referred to our earnings release which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures.

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。此外，我們的收益報告和本次電話會議還包括對某些非公認會計準則財務指標的討論。它指的是我們的收益報告，其中包含非公認會計準則指標與最直接可比較的公認會計準則指標的對帳。

I would like to turn the call over to Mr. Alex Peng. Alex, please go ahead.

我想將電話轉給 Alex Peng 先生。亞歷克斯，請繼續。

Thank you. I'd also like to thank all of you for participating in today's conference call. I'll begin with an overview of our business developments for the first quarter of fiscal year 2026. Following this, Jackson will cover operational developments and financial results. And to wrap it up, I'll share updates on our business outlook and strategic priorities.

謝謝。我還要感謝大家參加今天的電話會議。我將首先概述我們 2026 財年第一季的業務發展。隨後，傑克森將介紹營運發展和財務結果。最後，我將分享我們業務前景和策略重點的最新情況。

As we enter this fiscal year, we remain focused on executing our strategic priorities while strengthening the foundation for future development. As always, we aim to improve the learning experience and support students' holistic development.

進入本財年，我們將繼續專注於執行策略重點，同時鞏固未來發展的基礎。一如既往，我們的目標是改善學習體驗並支持學生的全面發展。

Our efforts in the first quarter reflect this commitment. So, let me outline our core business' performance for this physical court. To start, learning services achieved a steady growth trajectory across both offline pay you programs and online enrichment offerings.

我們第一季的努力體現了這項承諾。那麼，讓我來概述一下我們這個實體球場的核心業務表現。首先，學習服務無論是線下付費項目還是線上充實課程都實現了穩定成長。

We strategically expanded our pay you Learning Center network at a measured pace, primarily reinforcing our presence in cities where our services are already established. Our discipline expansion and ongoing commitment to product quality consistently deliver value to our users, earning the satisfaction from parents and healthy retention.

我們以穩健的步伐策略性地擴展了我們的付費學習中心網絡，主要加強了我們在已經提供服務的城市的影響力。我們對學科的擴展和對產品品質的持續承諾始終如一地為我們的用戶提供價值，贏得家長的滿意和健康的保留。

Guided by our strategic objectives, our online enrichment learning progress steadily with product refinements that feature new, smart, interactive experiences. This technology empowered approach offers a more appealing and personalized learning journey, helping sustain user engagement and fostering greater interest in learning.

在我們的策略目標的指導下，我們的線上充實學習穩步前進，產品不斷改進，具有全新、智慧、互動的體驗。這種技術支援的方法提供了更具吸引力和個人化的學習之旅，有助於維持用戶參與並培養更大的學習興趣。

In addition to our learning services, we continue to support users with motivating and impactful tools and resources through our content solutions. In education, we often reference the impossible triangle, which is the ability to provide high quality teaching, personalized learning journey, and affordable cost at scale. Traditional models rarely deliver all three simultaneously.

除了我們的學習服務之外，我們還繼續透過我們的內容解決方案為用戶提供激勵和有影響力的工具和資源。在教育領域，我們經常提到不可能三角，也就是提供高品質的教學、個人化的學習旅程和可負擔的大規模成本的能力。傳統模式很少能同時實現這三種功能。

Driven by the goal of addressing this long-standing challenge, we've been strategically focused on AI power learning devices over the past two years. Our approach is twofold. First, we're expanding high quality content offerings by leveraging years of accumulated resources to reach an even broader group of users. And second, we're adding practical and smart features to make the learning experience more immersive and engaging.

為了解決這一長期存在的挑戰，我們在過去兩年中一直將策略重點放在人工智慧學習設備上。我們的方法有兩個面向。首先，我們利用多年累積的資源，擴大優質內容供應，以涵蓋更廣泛的使用者群體。其次，我們增加了實用和智慧的功能，使學習體驗更加身臨其境、更具吸引力。

We've enhanced the personalized learning experience by integrating multimodal interactions with AI across multiple touchpoints, delivering real-time feedback, grading, and tailored explanations and guidance.

我們透過在多個接觸點上整合多模式互動和人工智慧來增強個人化學習體驗，提供即時回饋、評分以及量身定制的解釋和指導。

So building on the strategic direction, we further expanded our product lineup in this quarter, providing learning solutions.

因此，在策略方向的基礎上，我們在本季進一步擴大了產品陣容，提供學習解決方案。

Tailored to diverse user needs. In May, we launched three new models, the P4, S4, and T4 across different price tiers. These new models further enriched our learning device portfolio, providing users with better content, more enhanced AI capabilities, while enabling us to reach a broader user base.

滿足不同使用者的需求。五月份，我們推出了三款不同價位的新機型，分別是 P4、S4 和 T4。這些新型號進一步豐富了我們的學習設備組合，為用戶提供更好的內容、更強大的人工智慧功能，同時使我們能夠覆蓋更廣泛的用戶群。

With that operational context, let me briefly touch on our financial performance for this quarter.

在這樣的營運背景下，讓我簡要談談我們本季的財務表現。

In the first quarter, we recorded net revenues of USD575 million or RMB4.2 billion reflecting year over year growth of 38.8%. And 39.4% respectively.

第一季度，我們的淨營收為5.75億美元，即42億元人民幣，年增38.8%。和39.4%。

On a non-gap basis, income from operations was USD25.1 million while net income attributable to to reached USD42 million . Now, I'll turn the call over to Jackson. To discuss our operational execution and detailed financial performance for this quarter. Jackson, please go ahead.

以非缺口計算，營業收入為 2,510 萬美元，而歸屬於的淨收入達到 4,200 萬美元。現在，我將把電話轉給傑克森。討論本季的營運執行情況和詳細財務表現。傑克遜，請繼續。

Thank you, Alex. Before I begin, I'd like to know that all quarterly financial figures discussed today are un audited.

謝謝你，亞歷克斯。在開始之前，我想了解今天討論的所有季度財務數據均未經審計。

Let me start with payos small cost enrichment programs. Our payout enrichment programs continued to deliver year over year revenue growth over the past few quarters.

讓我先從 payos 小成本充實計劃開始。過去幾個季度，我們的支出充實計畫繼續帶來逐年的收入成長。

Supported by consistent service quality and broad user recognition. Positive feedback from both learners and parents has reaffirmed the value we provide. To balance growth with quality and long-term sustainability, we have taken a disciplined approach to expanding our learning center network. We holistically evaluate local market demand, user feedback.

以始終如一的服務品質和廣泛的用戶認可為支撐。來自學習者和家長的正向回饋再次證實了我們所提供的價值。為了平衡成長與品質和長期可持續性，我們採取了嚴謹的方法來擴展我們的學習中心網絡。我們全面評估當地市場需求、使用者回饋。

As well as operational capability and efficiency while making center rollout decisions. Our focus remains on achieving sustainable, healthy growth rather than pursuing growth for its own sake. The effectiveness of this approach is reflected in our operating metrics. Enrollment continued to rise on a year over year basis.

以及在製定中心部署決策時的營運能力和效率。我們的重點仍然是實現永續、健康的成長，而不是為了追求成長而追求成長。這種方法的有效性反映在我們的營運指標中。入學人數逐年持續上升。

And the retention rate for pay of small class stood at around 80% this quarter. In our online enrichment learning business, ongoing innovation has helped us respond to the ever evolving market landscape and user needs.

本季小班課薪資留存率維持在80%左右。在我們的線上充實學習業務中，持續的創新幫助我們應對不斷變化的市場格局和用戶需求。

One key example is she's reading. A product designed to help children develop lifelong reading skills. In May, we marked the second anniversary with an upgraded edition. That delivers a more immersive and engaging online classroom experience. The new version features exploratory reading modules that spark children's curiosity. By embedding thought provoking questions within the text. In a series of interactive sessions, these modules encourage students to investigate and discover as they read. This fosters not just an understanding of a topic, but also the skills needed to learn effectively in complex information rich environments.

一個關鍵的例子就是她正在閱讀。旨在幫助兒童培養終身閱讀技能的產品。五月，我們以升級版慶祝了兩週年。這提供了更身臨其境、更具吸引力的線上課堂體驗。新版本具有激發孩子好奇心的探索性閱讀模組。透過在文本中嵌入發人深省的問題。在一系列互動環節中，這些模組鼓勵學生在閱讀時進行調查和發現。這不僅能促進對主題的理解，還能培養在複雜資訊豐富的環境中有效學習所需的技能。

Next, our learning devices business. The business saw continued year over year revenue growth this quarter. Driven by our efforts to optimize products. Enhance our user experience and strengthen our sales channels. In terms of product line expansion, as Alex mentioned, we enriched our product portfolio with the launch of 3 new learning devices in May.

接下來是我們的學習設備業務。本季度，該業務的收入繼續同比增長。以我們優化產品的努力為動力。增強我們的用戶體驗並加強我們的銷售管道。在產品線擴展方面，正如 Alex 所提到的，我們在 5 月推出了 3 款新的學習設備，豐富了我們的產品組合。

These newly released models offer different functionality configurations and price points, enabling us to better address the diverse needs of all users. On the AI front, we have been iterating the SR learning devices in two core areas.

這些新發布的型號提供了不同的功能配置和價格點，使我們能夠更好地滿足所有用戶的多樣化需求。在人工智慧方面，我們一直在兩個核心領域迭代 SR 學習設備。

We continue to refine the user and device and our actions. Aiming for an experience that feels more natural and closer to real human communication and interactions. Additionally, we're introducing practical tools that address real needs in at-home learning scenarios. We also continuously optimize these tools to enhance the effectiveness and ease of use, further aligning our product with the core objective of supporting learning.

我們不斷完善使用者、設備以及我們的行動。旨在實現一種更自然、更接近真實的人類交流和互動的體驗。此外，我們也推出了滿足家庭學習場景實際需求的實用工具。我們也不斷優化這些工具，以提高其有效性和易用性，進一步使我們的產品與支援學習的核心目標保持一致。

Our ongoing efforts to enhance product capabilities have contributed to the positive performance for learning device business. Key user engagement metrics remained stable as our product portfolio and user base expanded. Throughout the quarter, the average weekly active rate across our learning device user base stood at around 80%. With an average of data usage time of one hour per active device.

我們不斷努力提升產品性能，為學習設備業務的積極表現做出了貢獻。隨著我們的產品組合和用戶​​群的擴大，關鍵用戶參與度指標保持穩定。整個季度，我們的學習設備用戶群的平均每週活躍率約為 80%。每個活躍設備的平均數據使用時間為一小時。

Okay. With that overview, I would now like to share our key financial results for the first fiscal quarter. We recorded net revenues of $575 million US dollars or RMB4.2 billion, an increase of 38.8% and 39.4% year over year in US dollar and R&B terms respectively. The increase was attributable to the growth in both our learning services business and our content solutions business.

好的。有了上述概述，我現在想分享我們第一財季的主要財務表現。我們實現淨收入 5.75 億美元或人民幣 42 億元，以美元和 R&B 計算分別年增 38.8% 和 39.4%。這一增長歸因於我們的學習服務業務和內容解決方案業務的成長。

Cost of revenues increased by 29.8% from $200 million US dollars in the first quarter of fiscal year 2025 to $259.6 million US dollars in the first quarter of fiscal year 2026.

營收成本從2025財年第一季的2億美元成長29.8%至2026財年第一季的2.596億美元。

Non-gap cost of revenues, which excluded share-based compensation expenses increased by 31% from $197.6 million US dollars in the first quarter of fiscal year 2025 to $258.9 million US dollars in the first quarter of fiscal year 2026.

不包括股權激勵費用的非缺口收入成本從 2025 財年第一季的 1.976 億美元增長 31% 至 2026 財年第一季的 2.589 億美元。

Gross profit also increased in the first quarter of fiscal 2026, rising by 4 excuse me, rising by 47.3% from $214.2 million US dollars for the same period last year to $315.4 million US dollars for this quarter. Gross margin increased to 54.9% from 51.7% for the same period last year.

2026財年第一季毛利也出現成長，季增4%，從去年同期的2.142億美元上漲47.3%至本季的3.154億美元。毛利率由去年同期的51.7%上升至54.9%。

Turning to operating expenses. Selling and marketing expenses for the quarter were $180.8 million US dollars, representing an increase of 47.7% from $122.4 million US dollars for the same period last year. Non-gap selling and marketing expenses, which excluded share-based compensation expenses increased by 50.5% to $177.7 million US dollars in the first quarter of fiscal year 2026, from $118.1 million US dollars for the same period last year.

談到營運費用。本季銷售和行銷費用為1.808億美元，較去年同期的1.224億美元成長47.7%。2026財年第一季，非差距銷售和行銷費用（不含股權激勵費用）從去年同期的1.181億美元成長50.5%至1.777億美元。

The uptick in selling and marketing expenses was primarily driven by increased selling and marketing activities. Non-gap selling and marketing expenses as a percentage of total net revenues increased from 28.5% to 30.9% year over year.

銷售和行銷費用的上升主要是由於銷售和行銷活動的增加。非差距銷售和行銷費用佔總淨收入的百分比從去年同期的 28.5% 上升到 30.9%。

General and administrative expenses increased by 10.4% to USD121.1 million from $109.7 million US dollars in the same period of last year. Non-gap general and administrative expenses, which excludes share-based compensation costs, increased by 16.1% year over year to USD114 million from $98.2 million US dollars for the same period of last year.

一般及行政開支由去年同期的1.097億美元增加10.4%至1.211億美元。非差距性一般及行政開支（不含股權激勵成本）較去年同期的 9,820 萬美元年增 16.1% 至 1.14 億美元。

Non-gap general administrative expenses as a percentage of total revenues decreased from 23.7% to 19.8% year over year. Total share based compensation expense allocated to the related cost, operating costs and expenses decreased by 40.9% to USD10.8 million. In the first quarter of fiscal year 2026. From $18.2 million US dollars in the same period of last year. This quarter, we achieved positive operating income.

非差距一般管理費用佔總收入的百分比從去年同期的 23.7% 下降到 19.8%。分配至相關成本、營運成本和費用的股份薪酬費用總額下降 40.9% 至 1,080 萬美元。2026財年第一季。而去年同期為1820萬美元。本季度，我們實現了正營業收入。

Income from operations was USD14.3 million in the first quarter of fiscal year 2026 compared to loss from operations of USD17.3 million in the same period of last year.

2026財年第一季營業收入為1,430萬美元，而去年同期營業虧損為1,730萬美元。

Non-gap income from operations, which excluded share-based compensation expenses, was $25.1 million US dollars compared to non-gap income from operations of USD0.9 million in the same period last year.

不包括股權激勵費用的非缺口營業收入為 2,510 萬美元，而去年同期的非缺口營業收入為 90 萬美元。

Net income attributable to tau was USD31.3 million in the first quarter of fiscal year 2026 compared to net income attributable to tau of USD11.4 million in the same period of last year.

2026財年第一季歸屬於tau的淨利為3,130萬美元，去年同期歸屬於tau的淨利為1,140萬美元。

Non-gap net income attributable to COO, which excludes share-based compensation expenses, was USD42 million compared to non-gap net income attributable to tau of USD29.6 million in the same period of last year.

歸屬於營運長的非差距淨利潤（不含股權激勵費用）為 4,200 萬美元，而去年同期歸屬於 tau 的非差距淨利潤為 2,960 萬美元。

Moving on to a balance sheet. As a May 31, the company had USD1267.2 million of cash and cash equivalents. $2.2 billion , USD205.6 million in short-term investments.

轉到資產負債表。截至5月31日，該公司擁有現金及現金等價物12.672億美元，其中現金22億美元，短期投資2.056億美元。

And USD291.2 million in current and non-current restricted cash. Our deferred revenue balance was $900 million. USD67.9 million as of the end of the first fiscal quarter.

以及2.912億美元的流動和非流動受限現金。我們的遞延收入餘額為 9 億美元。 679 億美元截至第一財季末，該公司淨利為 1,000 萬美元。

Now turning to a cash flow statement, that cash provided by operating activities for the first quarter of fiscal year 2026 was USD347.8 million.

現在轉向現金流量表，2026財年第一季經營活動提供的現金為3.478億美元。

Finally, I'd like to briefly address our share repurchase program. In April 2025, the company's board of directors approved another twelve-month extension of its share repurchase program, originally launched in April 2021.

最後，我想簡單介紹一下我們的股票回購計畫。2025 年 4 月，公司董事會批准將原定於 2021 年 4 月啟動的股票回購計畫再延長 12 個月。

In fiscal year 2026, as of July 30, 2025, following the extension of the share repurchase program. The company had repurchased 15.2 million common shares for a total consideration of approximately $477.4 million US dollars under the program.

2026財年，即截至2025年7月30日，股票回購計畫延長後。根據該計劃，該公司已回購 1,520 萬股普通股，總對價約 4.774 億美元。

On July 28, 2025, the company's board of directors authorized a new share repurchase plan. Under the new program, the company may spend up to USD600 million to repurchase its common shares over the next 12 months. We will execute the shared repurchase program in accordance with market conditions amongst other considerations.

2025年7月28日，公司董事會批准了一項新的股票回購計畫。根據新計劃，該公司可能在未來12個月內花費高達6億美元回購其普通股。我們將根據市場情況等考慮因素執行共享回購計劃。

And we might or might not use the full amount of $600 million in the next 12 months. That concludes my review of our business performance and financial updates. I will now hand the call back to Alex to briefly update you on our business outlook and strategic priorities. Alex, please go ahead.

我們在未來 12 個月內可能會或可能不會用完全部 6 億美元。這是我對我們的業務表現和財務更新的回顧。現在我將把電話交還給亞歷克斯，讓他簡要介紹我們的業務前景和戰略重點。亞歷克斯，請繼續。

Thanks.

謝謝。

Jackson. I'd like to share a few thoughts on our outlook for the next quarter. We expect our progress to continue into the 2nd quarter of fiscal year 2026.

傑克遜。我想分享一些關於下一季展望的想法。我們預計我們的進展將持續到 2026 財年第二季。

Q2 is generally a high season for our business, benefiting from summer vacation and major e-commerce shopping festivals, which we expect to contribute positively to revenue. On a non-gap basis, we anticipate an improvement in operating profit compared to this quarter.

第二季度通常是我們業務的旺季，受益於暑假和大型電子商務購物節，我們預計這些將對收入產生積極貢獻。從非差距角度來看，我們預計營業利潤將比本季有所改善。

Operationally in our learning services business, we will remain focused on enhancing both product and service quality to better meet user needs. For the content solutions business, product optimization, innovation, and go to market execution will remain our key priorities.

在學習服務業務的營運上，我們將繼續專注於提高產品和服務質量，以更好地滿足用戶需求。對於內容解決方案業務，產品優化、創新和市場執行仍將是我們的首要任務。

Looking beyond daily operations, we remain committed to innovating in the K-12 learning sector to meet evolving user needs and keep pace with ongoing advances in AI and technology. In a fast changing market, we're exploring new areas and pushing beyond our boundaries. More importantly, we are building organizational strength that allows us to adapt quickly as part of our broader effort to foster learning-driven organization with a growth mindset.

除了日常營運之外，我們仍然致力於在 K-12 學習領域進行創新，以滿足不斷變化的用戶需求並跟上人工智慧和技術的不斷進步。在快速變化的市場中，我們正在探索新的領域並超越我們的界限。更重要的是，我們正在建立組織實力，使我們能夠快速適應，這是我們更廣泛努力的一部分，旨在培養具有成長心態的學習驅動型組織。

With these priorities in place, we remain focused on execution and the long-term development of our core businesses.

有了這些優先事項，我們將繼續專注於核心業務的執行和長期發展。

So that concludes my prepared remarks, operator, we're ready to open the call for questions.

接線員，我的準備好的發言到此結束，我們準備開始提問。

(Operator Instructions)

（操作員指示）

Timothy Zhao, Goldman Sachs.

高盛的趙蒂莫西。

Thank you Benjamin for taking my question and congrats on the very strong results. My question is regarding your payO business. Just wondering if you can share any updates, on the expansion pace of the offline learning centers and also what is your outlook for the payroll benefits for this year and also in 2025 in fiscal year '25, I note that you opened around. 60% of the new learning centers on a year on year basis. Just wondering, could you, share any color in terms of the new learning center, ramp up and any financial operating data that would be helpful.

感謝 Benjamin 回答我的問題，並祝賀你取得了非常出色的成績。我的問題是關於您的 payO 業務。只是想知道您是否可以分享一些關於線下學習中心擴張速度的最新消息，以及您對今年和 2025 財年的工資福利的展望，我注意到您每年開設的新學習中心約佔 60%。只是想知道，您能否分享有關新學習中心、提升和任何有用的財務運營數據的資訊。

Thank you.

謝謝。

Thanks, Timothy. This is Alex. Let me take this one.

謝謝，蒂莫西。這是亞歷克斯。讓我來拿這個。

So I would, unpack that into a few different parts. So first of all, the continued expansion of our learning center network remains the key growth driver for both fiscal '25 and Fiscal '26. Will open new centers, to provide high quality offerings to more users and really to support their holistic development.

所以我會把它分解成幾個不同的部分。首先，我們學習中心網路的持續擴張仍然是 25 財年和 26 財年的主要成長動力。將開設新的中心，為更多用戶提供高品質的服務，真正支持他們的全面發展。

For Physical 26. Our focus will be on increasing center density in existing cities, right? This is something that we cover on a number of previous calls. I think our, focus will continue to be increasing center density in those existing cities where we have strong teams. And organizational capabilities.

對於物理 26。我們的重點是提高現有城市的中心密度，對嗎？我們在之前的多次電話會議中都討論過這個問題。我認為我們的重點將繼續放在增加我們擁有強大團隊的現有城市的中心密度。以及組織能力。

Obviously we'll also explore open centers in a few new cities, which we've done in the past quarters, and I think that's where there is a clear local demand for a high quality learning experience.

顯然，我們還將探索在一些新城市開設中心，正如我們在過去幾季所做的那樣，我認為這些城市對高品質的學習體驗有著明顯的需求。

The second part is really in terms of rollout pace. I think we've maintained, have always maintained a disciplined approach, we've taken in recent quarters. We look at the pace of network expansion and overall business growth.

第二部分其實是關於推出速度。我認為，我們一直保持著嚴謹的態度，這是我們在最近幾季採取的措施。我們專注於網路擴張的速度和整體業務成長。

Based on a number of factors, the market supply and demand locally, in that city in that district are organizational capacity, and the overall health of the business.

基於多種因素，當地的市場供需、該城市該地區的組織能力以及業務的整體健康狀況。

So for the pay you small class enrichment programs, the service model is built around our organizational capacity, and that's really the key, right? So it's scaling requires careful capacity planning.

因此，對於付費小班輔導計劃，服務模式是圍繞著我們的組織能力建立的，這才是關鍵，對嗎？因此它的擴展需要仔細的容量規劃。

Building the capabilities for broader service coverage while maintaining the high quality service, that's going to take time and effort. So, for instance, to support a larger network, we need to recruit and train a sufficient number of high quality.

建立更廣泛的服務覆蓋能力並保持高品質的服務，這需要時間和精力。例如，為了支持更大的網絡，我們需要招募和培訓足夠數量的高素質人才。

Teachers and instructors.

教師和指導員。

At the core of our strategy, we really focus on prioritizing long-term healthy and sustainable business growth.

在我們的策略核心中，我們真正注重優先考慮長期健康和可持續的業務成長。

Rather than pursuing aggressive expansion, we're committed to strengthening product competitiveness.

我們不追求激進的擴張，而是致力於增強產品競爭力。

Improving user experience and really delivering consistent value to our users over time. So this was reflected in the moderation of pays year over year revenue growth over the past few quarters. We really do not, we do not anticipate. Of the physical 25 growth pa to stay the same in physical 26.

改善用戶體驗並真正為我們的用戶提供持續的價值。因此，這反映在過去幾個季度中支付收入同比增長的放緩。我們確實沒有，我們也沒有預料到。身體 25 年的成長在身體 26 年保持不變。

And looking ahead, we expect pays year over year revenue growth to gradually taper off.

展望未來，我們預期支付收入年增率將逐漸放緩。

So, the third thing is for the existing learning centers, we're really pleased with their performance. Overall business and financial health remains solid, and we expect that to be sustained. Retention for pay of small clients stood at around 80% in this quarter.

第三件事是，對於現有的學習中心，我們對它們的表現非常滿意。整體業務和財務狀況依然穩健，我們預計這種狀況將持續下去。本季小客戶的付款保留率約為 80%。

So as supply and demand begin to normalize. We've observed that some newly opened centers could take a bit longer to reach full enrollment compared to physical '24, which is a very different, time.

因此，供給與需求開始正常化。我們觀察到，與實際的 24 小時相比，一些新開設的中心可能需要更長的時間才能達到滿員招生，這是一個非常不同的時間。

But once they move past that initial ramp up phase, they typically reach a healthy level and do not really put pressure on overall business health or margins afterwards.

但一旦他們度過了最初的成長階段，他們通常就會達到一個健康的水平，並且不會對整體業務健康或利潤率造成真正的壓力。

So, just to recap that paragraph, for you, Timothy, so what we're saying is, as the overall supply and demand begin to balance again, these some of these newly opened centers take a bit longer to ramp up initially, but once they ramp up, they would typically reach the same healthy level and do not create a pressure on the overall margins.

因此，蒂莫西，我們來重述那一段，我們的意思是，隨著整體供需開始再次平衡，這些新開設的中心最初需要更長的時間才能恢復正常，但一旦恢復正常，它們通常會達到相同的健康水平，不會對整體利潤率造成壓力。

So regarding other operating metrics, the performance of new centers, remains broadly consistent with our established model in terms of classroom count, rental size, and so forth. So there's really have been no major change, in that regard. So, Timothy, I hope that answered your question.

因此，就其他營運指標而言，新中心的表現在教室數量、租金規模等方面與我們既定的模型大致一致。因此，在這方面確實沒有發生重大變化。所以，蒂莫西，我希望這回答了你的問題。

Great, thank you Alex.

太好了，謝謝你，亞歷克斯。

Eddy Wang, Morgan Stanley.

摩根士丹利的 Eddy Wang。

Yeah, thank you, Alex Jackson for taking my question. Congratulations on the great results. So my question is mainly focused on the learning devices. Would you please give us some color on the performance of the learning devices in the first quarter? How's the three new learning devices you launched in May have been doing so far and why you decided to, launch three different models. And what the impacts, the lower price model, have on your revenue and the margins. Can you, talk about your overall learning devices strategy with this new product in place? And lastly, how do you view the current competitive landscape in the learning devices industry?

是的，謝謝亞歷克斯傑克森回答我的問題。恭喜您取得如此優異的成績。所以我的問題主要集中在學習設備。能否介紹一下第一季學習設備的表現？您在五月推出的三款新學習設備到目前為止表現如何？為什麼您決定推出三種不同的型號？低價模式會對您的收入和利潤產生什麼影響？您能否談談針對這款新產品的整體學習設備策略？最後，您如何看待目前學習設備產業的競爭格局？

Thank you.

謝謝。

Thanks, Eddie. This is Alex. Let me take this one as well. So let me first start with the overall sales performance. Q1, our physical first quarter, which covers the month of, March, April, and May, that is typically a low season for our learning device business and revenue, declines.

謝謝，艾迪。這是亞歷克斯。讓我也拿下這個。那麼，我先從整體銷售業績開始。Q1 是我們實體業務的第一季度，涵蓋三月、四月和五月，這通常是我們學習設備業務和收入的淡季，但今年收入有所下降。

Quarter over quarter, compared to, for example, 4th quarter last fiscal year, and that's just normal seasonality, right? On a year over year basis, we still recorded healthy growth driven by sales volume expansion.

與上一財年第四季相比，這是一個季度環比增長，這只是正常的季節性現象，對嗎？與去年同期相比，我們在銷售擴張的推動下仍然實現了健康成長。

The blended, EFT, that's the average sales price. That declined mainly due to changes in the product mix. From a financial standpoint, we observed that our new model, the T-series, priced at 2,000+ RMB, has a bomb cost ratio that's roughly in line with our other learning devices.

混合 EFT 即為平均銷售價格。下降的主要原因是產品結構的變化。從財務角度來看，我們觀察到我們的新款T系列售價為2000多元人民幣，其性價比與我們的其他學習設備大致相當。

So the 3 new models, which I mentioned earlier in the call, they were launched in May, and so they're still in the early stages of their, product life cycles. I would say it's a bit early to draw conclusions on overall financial impact, but I do want to talk a little bit more about why we introduced these new products.

我在電話中提到的這 3 款新車型是在 5 月推出的，因此它們仍處於產品生命週期的早期階段。我想說現在就對整體財務影響下結論還為時過早，但我確實想再多談談我們推出這些新產品的原因。

So the P series is designed to be an ideal first learning device. Delivering a clear value for money proposition. As the first product in our portfolio to be priced below RMB3,000, it fills a pretty critical and strategic GAAP. By focusing on cost-effectiveness, it really helps address common challenges in at home learning, and strategically, it allows us to reach a broader user base.

因此，P系列被設計為理想的第一學習設備。提供明確的物有所值的主張。作為我們產品組合中第一款價格低於 3,000 元人民幣的產品，它滿足了非常關鍵和策略性的 GAAP。透過專注於成本效益，它確實有助於解決在家學習中常見的挑戰，並且從策略上講，它使我們能夠接觸到更廣泛的用戶群。

The S&P series, on the other hand, they are upgraded versions of our classic and flagship models. The S series is designed as an all-around performer. And the T series sets at the high end of our portfolio and features the latest version. Of our artificial intelligence learning companion, Xiaosu, which now comes with enhanced multimodal interaction capabilities and are more user friendly interactions.

另一方面，S&P系列是我們經典和旗艦型號的升級版。S 系列被設計為一款全能型表演產品。T 系列是我們產品組合中的高階產品，採用最新版本。我們的人工智慧學習伴侶小蘇，現在具有增強的多模式互動功能和更用戶友好的互動。

So if I take a step back, what we've noticed is that as product capabilities continue to advance, learning devices are playing increasingly important roles in addressing learning needs and shaping new user habits.

因此，如果我退一步來看，我們注意到，隨著產品功能的不斷進步，學習設備在滿足學習需求和塑造新的使用者習慣方面發揮著越來越重要的作用。

And we talked about this quite a bit. This is really fundamentally addressing the at home self-paced learning scenario, right? So we believe that the overall market opportunity remains wide open. Exploring the intersection of learning and technology is one of our long-term strategic directions. We look at technology as the key driver of progress, and we believe embracing innovation. It's just essential for capturing that emerging opportunity and staying competitive.

我們對此進行了多次討論。這確實從根本上解決了在家自主學習的場景，對嗎？因此，我們相信整體市場機會依然廣闊。探索學習與科技的交叉是我們長期的策略方向之一。我們將科技視為進步的關鍵驅動力，我們相信擁抱創新。這對於抓住新興機會和保持競爭力至關重要。

So our goal is really to develop long-term capabilities by combining our extensive expertise in teaching, in learning, with advancement in AI and technology. So this will enable us to, better serve users and really create more value for them and for society. . So to realize that vision, we'll continue to expand our product portfolio, strengthening our content offerings, and develop even more effective, user-friendly artificial intelligence tools. At the same time, we're focused on scalability through user growth and engagement, as well as on the go to market side, the channel and brand strengthened to support adoption.

因此，我們的目標是將我們在教學和學習方面的豐富專業知識與人工智慧和技術的進步相結合，從而發展長期能力。因此，這將使我們能夠更好地服務用戶，並真正為用戶和社會創造更多價值。。因此，為了實現這一願景，我們將繼續擴大我們的產品組合，加強我們的內容供應，並開發更有效、更用戶友好的人工智慧工具。同時，我們專注於透過用戶成長和參與實現可擴展性，以及在市場方面，加強通路和品牌以支持採用。

So collectively, these initiatives really serve as the key building blocks to support our long-term objectives of delivering value to users, product competitiveness, and really to shape and and imagine that future of technology-driven learning.

因此，總的來說，這些措施確實成為支持我們長期目標的關鍵基石，即為用戶提供價值、提高產品競爭力，並真正塑造和想像技術驅動學習的未來。

I think one thing that, in the question that has been asked before is the competitive landscape, right? So we talked about this before, really, the competition in the learning device market is intensifying, as players, as some of the, full stacks, players expand their offerings. Of course this raises the bar for product quality and it really, from our point of view, accelerates consumer education, and fundamentally and ultimately it also encourage us to continuously raise our own standards. So this reinforces our focus on innovation. While managing the business with greater precision, all with the goal of improving the health of the business and our overall competitiveness. So we view this dynamic as really a catalyst, to elevate standards across the industry, while sharpening our own value proposition. So Eddie, I hope that answered your question.

我認為，之前提出的問題中的一件事是競爭格局，對嗎？我們之前討論過這個問題，實際上，學習設備市場的競爭正在加劇，因為一些全端廠商擴大了他們的產品範圍。當然，這提高了產品品質的標準，從我們的角度來看，它確實加速了消費者教育，從根本上和最終也鼓勵我們不斷提高自己的標準。因此這加強了我們對創新的關注。在更精準地管理業務的同時，所有這些都是為了改善業務的健康狀況和我們的整體競爭力。因此，我們將這種動態視為一種催化劑，可以提高整個產業的標準，同時強化我們自己的價值主張。所以 Eddie，我希望這回答了你的問題。

Felix Liu, UBS.

瑞銀集團的 Felix Liu。

Thank you, Alex, and Jackson for taking my question and congratulations on the strong quarter. My question is on your sales and marketing expense. I noticed that your, sales and marketing expense increased on year this quarter. Was this primarily related to learning devices, and could you provide an update on the margin profile and outlook for your, hardware business from here.

感謝亞歷克斯和傑克森回答我的問題，並祝賀你們本季業績強勁。我的問題是關於你們的銷售和行銷費用。我注意到貴公司本季的銷售和行銷費用年增。這主要與學習設備有關嗎？您能否在此提供有關硬體業務的利潤狀況和前景的最新資訊？

Thank you.

謝謝。

Thank you, Felix. This is Jackson. Let me take this one. I think it was a two-part question, right? First part on the, on the trend for sales and marketing expenses and the second part, related to the margin profile of our hardware business. So maybe let me take that piece by piece, for.

謝謝你，菲利克斯。這是傑克遜。讓我來拿這個。我認為這是一個由兩個部分組成的問題，對嗎？第一部分涉及銷售和行銷費用的趨勢，第二部分涉及我們的硬體業務的利潤狀況。因此，也許讓我一點一點地來討論這個問題。

Sales and marketing expenses, yes, you're right. On a year over year basis, non-gap selling and marketing expenses, I think as a percentage of revenue increased slightly from 28.5% to to 30.9% year over year. This increase. Was primarily driven by our investment in online marketing activities. So as you probably know, we do conduct selling and marketing activities in your classic online advertising channels, right? And that's aimed at driving market penetration and improving product visibility.

銷售和行銷費用，是的，你是對的。與去年同期相比，我認為非差距銷售和行銷費用佔收入的百分比從 28.5% 略微增加到 30.9%。這種增幅。主要是由我們對線上行銷活動的投資所推動的。所以您可能知道，我們確實在您的傳統線上廣告管道中開展銷售和行銷活動，對嗎？其目的是推動市場滲透並提高產品知名度。

For number one, our learning device business, and number 2, also shares.com. So it wasn't just related to learning devices at all. Additionally, we implemented a few brand building in the Initiatives. Now, these efforts may not contribute to near term revenue, but they are intended to strengthen our customers' lifetime value and also reinforce our long-term market position.

第一是我們的學習設備業務，第二是shares.com。所以這不僅僅是與學習設備有關。此外，我們也在措施中實施了一些品牌建立。現在，這些努力可能不會對短期收入產生貢獻，但它們旨在增強我們客戶的終身價值並鞏固我們的長期市場地位。

Felix, the second part of your question was on the margin profile and outlook for learning devices business. For that business, we recorded a non-gap operating loss in Q1. Our learning device business strategy. Balances in near-term investment with long-term development. This business remains in an investment phase and the market environment continues to evolve.

菲利克斯，你問題的第二部分是關於學習設備業務的利潤狀況和前景。對於該業務，我們在第一季記錄了非差距經營虧損。我們的學習設備業務策略。平衡短期投資與長期發展。該業務仍處於投資階段，市場環境不斷發展。

We remain confident in its trajectory, actively monitoring developments, continuing to adjust tactics based on market dynamics. If we look beyond near term financial results, and we remain focused on our long-term strategic priorities.

我們對其發展軌跡充滿信心，積極監測事態發展，並根據市場動態持續調整策略。如果我們不只專注於短期財務業績，我們還會繼續關注我們的長期策略重點。

As a business evolves, we are expanding into new sectors and exploring broader opportunities. Throughout this journey, we're committed to building long-lasting competitiveness by strengthening our channel capabilities, increasing brand visibility, and deepening engagement with the next generation of parents and users in this evolving market.

隨著業務的發展，我們正在擴展到新的領域並探索更廣泛的機會。在此過程中，我們致力於透過加強通路能力、提高品牌知名度以及深化與不斷發展的市場中的下一代父母和用戶的互動來建立持久的競爭力。

With continued investment in user engagement, effective channel strategy, and a diversified distribution network, were well positioned for long term sustainable growth.

透過對用戶參與度的持續投資、有效的通路策略和多樣化的分銷網絡，我們為長期可持續成長做好了準備。

I hope that answers your question for products.

我希望這能回答您關於產品的問題。

[Jingyuan from CICC.]

[中金公司記者 景元]

Thanks for taking my question. First, congratulations on this quarter good result. My question is about about the margin overall. I noticed that the quarter 1 margin performance was solid. I wonder what was the main driver behind that? What cost optimization measures have you taken? And could management share more on how you view the margin outlook going forward? Thanks.

感謝您回答我的問題。首先恭喜本季取得良好業績。我的問題是關於整體利潤率。我注意到第一季的利潤表現穩健。我想知道這背後的主要驅動力是什麼？您採取了哪些成本優化措施？管理階層能否分享更多關於您對未來利潤前景的看法？謝謝。

Thanks, Jen. This is Jackson. Let me take this one. And I think we talked about this on the past couple of calls, you know. Improving overall profitability is one of the company's key priorities. We take a holistic approach at the group level, and have initiatives to enhance our cost efficiency and improve operating profitability. And this includes targeted operational refinements at different stages of our workflow. So let me walk you through a few drivers that contributed to our margin performance.

謝謝，Jen。這是傑克遜。讓我來拿這個。我想我們在過去的幾次通話中討論過這個問題。提高整體獲利能力是公司的首要任務之一。我們在集團層級採取整體方法，並採取措施提高成本效率和改善營運獲利能力。這包括我們工作流程不同階段有針對性的操作改進。那麼，讓我向您介紹一下影響我們利潤表現的幾個因素。

First, I would say. Is really unlocking our operating leverage through scale. Our expanding revenue base naturally creates operating leverage, and allows for more efficient allocation of fixed costs across different business units. I'll give you an example, right? If you just look at our General administrative expenses as a percentage of revenue, that number decreased from 27, 23.7% to 19.8% year over year on a non-gap basis. And that reflected some of the improved efficiency and operating leverage from a larger revenue base, I just talked about.

首先我想說。確實透過規模釋放了我們的經營槓桿。我們不斷擴大的收入基礎自然會產生營運槓桿，並允許在不同業務部門之間更有效地分配固定成本。我舉個例子好嗎？如果您只看我們的一般管理費用佔收入的百分比，那麼在非差距基礎上，該數字從 27、23.7% 年減至 19.8%。這反映了我剛才談到的更大收入基礎所帶來的效率提高和經營槓桿作用。

The second driver I would say is is refining our operations at different stages of our workflow. We continue to take efforts and improve operational efficiency, and that includes our activities in research and development and service delivery and in selling and marketing.

我想說的第二個驅動因素是改善我們工作流程不同階段的運作。我們將繼續努力提高營運效率，包括研發、服務交付以及銷售和行銷方面的活動。

We're also working on optimizing resource allocation to improve overall operational efficiency. The third driver I would say is really, leveraging, today's technology and driving overall efficiency, right? And we're leveraging, and maybe the best way to explain this is to let me give you a few examples. One example could be AI empowered learning coach, right? We're utilizing AI agents to support our learning coaches with tasks such as tracking students attendance. Doing study plans, answering questions, and managing routine logistics. By integrating AI agents into these processes, we have, enhanced productivity and efficiency.

我們也致力於優化資源配置，以提高整體營運效率。我想說的第三個驅動因素實際上是利用當今的技術來提高整體效率，對嗎？我們正在利用這一點，也許解釋這一點的最好方法就是讓我給你舉幾個例子。一個例子可能是人工智慧賦能學習教練，對嗎？我們正在利用人工智慧代理來支援我們的學習教練完成諸如追蹤學生出勤率等任務。制定學習計劃、回答問題並管理日常後勤工作。透過將人工智慧代理整合到這些流程中，我們提高了生產力和效率。

Another example could be, improving content production efficiency, right. We're using AI powered digital humans to improve quantum production efficiency, particularly in humanities subjects. For example, instead of using real person recordings for lessons and exercise explanation, we now use AI powered digital human.

另一個例子是，提高內容生產效率，對吧。我們正在使用人工智慧數位人類來提高量子生產效率，特別是在人文學科領域。例如，我們現在不再使用真人錄音來講解課程和練習，而是使用人工智慧驅動的數位人。

Which reduces content production costs. We're also applying AI to design and generate exam questions, for example. And my one last example would be, us building internal system for AI content production, right. Through this approach, we aim to make leveraging AI for content creation more systematic, streamlined and standard.

這降低了內容製作成本。例如，我們也應用人工智慧來設計和產生考試題目。我的最後一個例子是，我們正在建立一個用於 AI 內容製作的內部系統，對吧。透過這種方式，我們的目標是讓利用人工智慧進行內容創作更加系統化、流程化和標準化。

It facilitates comprehensive implementation, enhancing overall content production efficiency. Jim, you asked about margin outlook. While we are encouraged by margin performance this quarter, our primary focus remains on sustainable long-term growth rather than short term financial metrics. Looking ahead, we'll continue to prioritize investments that align with our strategic objectives, seeking opportunities to expand and innovate within our core business.

它有助於全面實施，提高整體內容生產效率。吉姆，你詢問了利潤前景。雖然我們對本季的利潤率表現感到鼓舞，但我們的主要關注點仍然是可持續的長期成長，而不是短期財務指標。展望未來，我們將繼續優先考慮符合我們策略目標的投資，尋求在我們的核心業務中擴展和創新的機會。

To navigate business dynamics and seasonal factors, we'll allocate resources flexibly, making timely adjustments guided by disciplined, return on investment evaluation. This approach enables informed capital allocation decisions that support sustainable growth.

為了應對業務動態和季節性因素，我們將靈活分配資源，並在嚴格的投資回報評估指導下及時進行調整。這種方法可以做出明智的資本配置決策，以支持永續成長。

By balancing operational efficiency with prudent spending, we aim to invest strategically, maintain financial discipline and strengthen our competitive position in the future.

透過平衡營運效率和審慎支出，我們旨在進行策略性投資，保持財務紀律並加強我們未來的競爭地位。

I hope that answers your question.

我希望這能回答你的問題。

Thank you. We have reached the end of the question and answer session.

謝謝。問答環節已經結束。

Thank you all very much for your questions. I'd now like to turn the conference back to the management team for the closing comments.

非常感謝大家的提問。現在，我想將會議交還給管理團隊，請他們發表結束語。

So, thanks again for joining us today and we look forward to seeing all of you next quarter. Bye-bye.

因此，再次感謝您今天的加入我們，我們期待下個季度與大家見面。再見。

Thank you for your participation in today's conference. This does conclude the program. You may not disconnect your lines.

感謝大家參加今天的會議。該計劃確實就此結束。您不能斷開您的線路。