TAL Education Group (TAL) 2027 Q2 法說會逐字稿

Ladies and gentlemen, good day and thank you for standing by. Welcome to TAL Education Group's fiscal 2027 second quarter earnings conference call. (Operator Instructions) Please be informed, today's conference is being recorded.

各位女士、先生，大家好，感謝各位撥冗等候。歡迎參加好未來教育集團（TAL Education Group）2027 財年第二季度業績電話會議。（接線員指示）請注意，今天的會議將被錄音。

I would now like to hand the conference over to Ms. Fang Liu, Investor Relations Director. Please go ahead.

現在我想將會議交給投資者關係總監劉芳女士。請開始。

Thank you all for joining us today for TAL Education Group's second quarter fiscal year 2027 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 newswire. During this call, you will hear from Mr. Alex Peng, President and Chief Financial Officer and Mr. Jackson Ding, Deputy Chief Financial Officer.

感謝各位今天參加好未來教育集團 2027 財年第二季度業績電話會議。業績新聞稿已於今日稍早發布，您可在公司投資者關係網站或透過新聞稿發布渠道取得副本。在本次電話會議中，您將聽到總裁兼首席財務官彭亞偉先生（Alex Peng）以及副首席財務官丁傑克遜先生（Jackson Ding）的發言。

Following the prepared remarks, Mr. Peng and Ms. Ding will be available to answer your questions. Before we continue, please note that today's discussion will contain overlooking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Overlooking 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.

在預先準備的發言之後，彭先生與丁先生將回答各位的提問。在我們繼續之前，請注意今天的討論將包含依據 1995 年《美國私人證券訴訟改革法案》安全港條款所作的前瞻性陳述。前瞻性陳述存在風險與不確定性，可能導致實際結果與我們目前的預期存在重大差異。潛在風險與不確定性包括但不限於我們向美國證券交易委員會（SEC）提交的公開文件中所列示者。

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. Please refer to our earnings release, which contains a reconsideration of the non-GAAP measures to the most directly comparable GAAP measures.

關於上述風險與不確定性的更多資訊，請參閱我們向 SEC 提交的文件。此外，我們的業績新聞稿及本次電話會議亦包含對若干非 GAAP 財務指標的討論。請參閱我們的業績新聞稿，其中載有非 GAAP 指標與最直接可比的 GAAP 指標之間的調節表。

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

接下來我想把電話會議交給彭亞偉先生。Alex，請開始。

Thank you, Feng, and thanks to everybody for joining today's conference call. For more than 20 years, TAL has been committed to helping students learn and grow. Today, we do this through our learning services, content solutions, and other products. Across all of these offerings, we remain committed to delivering meaningful learning experiences and building lasting relationships with the students and families we serve.

謝謝芳，也感謝各位參加今天的電話會議。二十多年來，好未來一直致力於幫助學生學習與成長。如今，我們透過學習服務、內容解決方案以及其他產品來實現這一使命。在所有這些產品與服務中，我們始終致力於提供有意義的學習體驗，並與我們所服務的學生與家庭建立長期關係。

Let me start with an overview of our second quarter performance. Our overall revenue continues to grow, although at a slower pace than in previous quarters. As our business has grown in scale, we expect our overall growth rate to moderate. The picture across our businesses, however, is different.

我先概述一下我們第二季度的表現。我們的整體營收持續成長，但增速較前幾個季度有所放緩。隨著業務規模擴大，我們預期整體成長率將趨於溫和。不過，各項業務的表現情況並不相同。

Our Peiyou offline programs continue to grow at a healthy pace. Demand for face-to-face learning remains solid, and student retention remains healthy. We believe that interaction between teachers and students continues to play an important role in learning.

我們的培優線下課程仍以健康的速度成長。面對面學習的需求依然穩健，學生留存率也保持良好。我們相信，師生之間的互動在學習中仍然扮演重要角色。

Our learning device business, on the other hand, is facing a challenging industry environment. Respectable competition, shifting consumer sentiment, and rising component costs have put pressure on the market. These conditions have affected our business and have become a drag on our overall revenue growth. Despite these near-term challenges, we continue to see a strategic role for learning devices in helping students learn independently at home. We're focused on improving our content and product experience while managing the business with discipline.

另一方面，我們的學習設備業務正面臨具挑戰性的產業環境。激烈的競爭、消費者情緒的變化以及零組件成本上升，對市場造成壓力。這些狀況也影響了我們的業務，並拖累了整體營收成長。儘管短期面臨挑戰，我們仍然認為學習設備在幫助學生在家自主學習方面具有策略性作用。我們將專注於提升內容與產品體驗，同時以嚴謹的方式管理該業務。

Turning briefly to our financial results, second quarter net revenues were USD995 million or RMB6.7 billion, representing a year-over-year increase of 15.9% in US dollar and RMB terms, respectively. Our non-GAAP income from operations was USD248 million, representing a year-over-year increase of more than 100%. Our non-GAAP operating margin increased to 24.9% from 12.5% for the same period last year. The continued improvement in our operating margin reflects operating leverage, efficiency gains, and disciplined resource allocation.

簡要說明我們的財務結果，第二季度淨營收為 9.95 億美元（或人民幣 67 億元），以美元及人民幣計分別同比成長 15.9%。我們的非 GAAP 經營利潤為 2.48 億美元，同比增幅超過 100%。非 GAAP 經營利潤率由去年同期的 12.5% 提升至 24.9%。經營利潤率的持續改善反映了規模效應（經營槓桿）、效率提升以及嚴謹的資源配置。

With that, I will turn the call over to Jackson, who will cover operational progress across our core business lines and review our financial performance for the second fiscal quarter. Jackson, over to you.

接下來我把電話會議交給 Jackson，他將介紹我們核心業務線的營運進展，並回顧本財年第二季度的財務表現。Jackson，交給你。

Thank you, Alex. I will start with the operational progress across our core business lines and then review all financial results, starting with our Peiyou programs. Revenue grew by double digits year-over-year in the second quarter. Enrollment growth was the largest growth contributor of revenue growth in this business line.

謝謝 Alex。我將先介紹核心業務線的營運進展，然後回顧全部財務結果，先從我們的培優課程開始。第二季度營收同比實現雙位數成長。在這條業務線中，報名人數的成長是推動營收成長的最大貢獻因素。

Our overall retention rate remained healthy. Take Peiyou enrichment learning classes as an example. The retention rate was over 80%, reflecting the continued trust from students and families. We continue to see steady demand for face-to-face learning. Beyond helping students build knowledge, the classroom gives them a place to interact with teachers and peers, ask questions, and develop confidence. These interactions are an important part of the learning experience, and they remain at the heart of our Peiyou programs.

我們的整體留存率保持健康。以培優素養類課程為例，留存率超過 80%，反映出學生與家庭持續的信任。我們仍看到面對面學習需求穩定。除了幫助學生建立知識之外，課堂也為他們提供與老師和同學互動、提問並建立自信的場所。這些互動是學習體驗的重要組成部分，也始終是我們培優課程的核心。

During the summer, our Learning Center network was well-positioned to serve our students and families. We continued to focus on teaching quality, teacher development, and the consistency of our services across Learning Centers. As the business grows, our priority is to remain a high-quality experience for students while managing our network in a disciplined manner.

在暑期期間，我們的學習中心網絡具備良好佈局，能夠服務學生與家庭。我們持續聚焦於教學品質、教師培訓與發展，以及各學習中心之間服務的一致性。隨著業務成長，我們的首要任務是在以嚴謹方式管理網絡的同時，持續為學生提供高品質體驗。

For our online enrichment learning business, we continued to develop learning experiences that respond to students' interests and needs. In our science-related courses, for example, we combined online learning with hands-on activities to help students explore science and technology beyond the classroom. During the quarter, we launched our first National Youth Microsoft. The event encouraged students to draw inspiration from everyday life, develop their own ideas, and turn those ideas into practical projects. We believe these experiences can help students build curiosity and learn through practice.

在我們的線上素養學習業務方面，我們持續打造能回應學生興趣與需求的學習體驗。例如在科學相關課程中，我們將線上學習與動手實作活動結合，幫助學生在課堂之外探索科學與科技。本季度，我們推出了首屆全國青少年微軟大賽。該活動鼓勵學生從日常生活中汲取靈感，發展自己的想法，並將想法轉化為可落地的專案。我們相信，這些體驗能幫助學生培養好奇心，並在實作中學習。

Turning to our learning device business, the industry is going through a challenging period. The overall market has contracted by double digits year-over-year, and competition remains intense. At the same time, rising chip costs are putting pressure on device pricing and adding to the challenges facing the industry. These conditions are affecting our business as well. While our learning device business has grown in recent years, the current market environment is weighing on its performance, especially on the top line.

談到我們的學習設備業務，整個產業正處於具挑戰性的階段。整體市場同比出現雙位數萎縮，競爭仍然激烈。同時，晶片成本上升對設備定價造成壓力，並加劇了產業所面臨的挑戰。這些狀況也正在影響我們的業務。儘管學習設備業務近年來有所成長，但目前的市場環境正在拖累其表現，尤其是營收端。

In this quarter, learning device was a drag on our company-level growth rate. We expect this business to continue to face pressure as the industry works through these challenges. Against this backdrop, we remain focused on serving our users and improving the learning experience through our learning devices. As a result, user engagement remains stable during the quarter. The average weekly active rate across our learning device user base was around 80%. And the active devices were used for an average of one hour per day. We believe this reflects the value our products continue to provide to students, even as the market faces pressure.

本季度，學習設備業務拖累了公司整體層面的成長率。我們預期在產業消化這些挑戰的過程中，該業務仍將持續承壓。在此背景下，我們仍專注於服務用戶，並透過學習設備提升學習體驗。因此，本季度用戶參與度保持穩定。在學習設備用戶群中，平均每週活躍率約為 80%。活躍設備的日均使用時長約為一小時。我們相信，這反映出即使市場承壓，我們的產品仍持續為學生提供價值。

Next, I will walk you through our key financial results for the second fiscal quarter. Please note that all financial data for the quarter are unaudited. Our net revenues were USD995 million, or RMB6.7 billion, representing a year-over-year increase of 15% and 9% in US dollar and RMB terms. Cost of revenues increased by 8% year-over-year to USD400 million. On a non-GAAP basis, excluding share-based compensation expenses, cost of revenues also increased by 8% year-over-year to USD399 million. Gross profit increased by 21% year-over-year to USD595 million. Gross margin for the second quarter of fiscal year 2027 was 59.8%, compared to 57.0% in the same period of the prior year.

接下來，我將帶您回顧我們第二個財政季度的主要財務業績。請注意，本季度所有財務數據均未經審計。我們的淨營收為9.95億美元（約合人民幣67億元），按年分別以美元及人民幣計增長15%及9%。營收成本按年增加8%至4.00億美元。按非GAAP口徑（剔除股份支付薪酬費用），營收成本亦按年增加8%至3.99億美元。毛利按年增加21%至5.95億美元。2027財年第二季度毛利率為59.8%，而上年同期為57.0%。

Turning to operating expenses, non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 16% to USD223 million from USD264 million in the second quarter of fiscal year 2026. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 4% to USD124 million from USD119 million in the second quarter of fiscal year 2026.

再看營運費用，按非GAAP口徑（剔除股份支付薪酬費用）的銷售及市場費用，從2026財年第二季度的2.64億美元下降16%至2.23億美元。按非GAAP口徑（剔除股份支付薪酬費用）的一般及行政費用，從2026財年第二季度的1.19億美元增加4%至1.24億美元。

Non-GAAP income from operations, which excluded share-based compensation expenses, was USD249 million, compared to non-GAAP income from operations of USD108 million in the same period of the prior year. Other expense was USD190 million for the second quarter of fiscal year 2026 -- excuse me. Other expense was USD190 million for the second quarter of fiscal year 2027, compared to other income of USD67 million in the second quarter of fiscal year 2026. The change was mainly driven by fluctuations in the fair value of certain investments.

按非GAAP口徑（剔除股份支付薪酬費用）的營運利潤為2.49億美元，而上年同期按非GAAP口徑的營運利潤為1.08億美元。其他費用在2026財年第二季度為1.90億美元——抱歉。其他費用在2027財年第二季度為1.90億美元，而2026財年第二季度為其他收入6,700萬美元。該變動主要由若干投資公允價值波動所致。

Income tax expense was USD136 million in the second quarter of fiscal 2027. Compared to USD51 million of income tax expense in the second quarter of fiscal year 2026. The increase in income tax expense was mainly due to changes in deferred tax liabilities relating to withholding tax. Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was USD36 million, compared to non-GAAP net income attributable to TAL of USD136 million in the second quarter of fiscal year 2026.

2027財年第二季度所得稅費用為1.36億美元。相比之下，2026財年第二季度所得稅費用為5,100萬美元。所得稅費用增加主要由與預提稅相關的遞延所得稅負債變動所致。按非GAAP口徑（剔除股份支付薪酬費用）歸屬於TAL的淨虧損為3,600萬美元，而2026財年第二季度按非GAAP口徑歸屬於TAL的淨利潤為1.36億美元。

Moving on to our balance sheet. As of August 31, 2026, the company had approximately USD2.0 billion of cash and cash equivalents, USD796 million of short-term investments, and USD254 million in current and non-current restricted cash. Our deferred revenue balance was approximately USD930 million as of the end of the second fiscal quarter. Net cash used in operating activities for the second quarter of fiscal year 2027 was USD179 million.

接下來看我們的資產負債表。截至2026年8月31日，公司持有約20億美元的現金及現金等價物、7.96億美元的短期投資，以及2.54億美元的流動及非流動受限制現金。截至第二個財政季度末，我們的遞延收入餘額約為9.30億美元。2027財年第二季度經營活動所用淨現金為1.79億美元。

Finally, a brief update on shareholder returns, including our cash dividend. Between July 29, 2026, and October 23, 2026, the company repurchased approximately 64,226 common shares at an aggregate consideration of approximately USD2 million. The company's board of directors has approved the declaration and payment of a special cash dividend to all shareholders out of the company's cash balance in an amount of USD0.30 per common share, equivalent to USD0.10 per ADS, representing an aggregate dividend payment of approximately USD55.2 million to all shareholders of the company. That concludes my review.

最後，簡要更新股東回報情況，包括我們的現金股息。在2026年7月29日至2026年10月23日期間，公司以合計約200萬美元的對價回購約64,226股普通股。公司董事會已批准從公司現金餘額中向全體股東宣派並支付特別現金股息，每股普通股0.30美元（相當於每股ADS 0.10美元），向公司全體股東支付的股息總額約為5,520萬美元。我的回顧到此結束。

I will now hand the call back to Alex for his comments on a strategy and outlook. Alex, please go ahead.

接下來我把電話交回給Alex，請他就策略與展望發表評論。Alex，請開始。

Thanks, Jackson. Let me close with a few thoughts on our strategy and outlook. Our businesses serve students in different ways. In our learning services, teachers help students develop knowledge, confidence, and curiosity through direct interaction.

謝謝你，Jackson。最後我想就我們的策略與展望做幾點總結。我們的業務以不同方式服務學生。在我們的學習服務中，老師透過直接互動，幫助學生培養知識、自信與好奇心。

In our content and technology products, we help students build the ability to learn more independently. We believe both are important parts of a student's learning journey. We'll continue to bring together our experience in education and our capabilities in technology to improve the learning experience.

在我們的內容與科技產品中，我們幫助學生建立更獨立學習的能力。我們相信這兩者都是學生學習旅程的重要組成部分。我們將持續結合我們在教育方面的經驗與科技能力，以提升學習體驗。

Looking ahead, we expect our overall revenue growth to moderate as our business grows in scale and our learning device business continues to face industry headwinds. As the educator Jiang Duwei wrote in his Reconstruction in Philosophy, a person is always in process of growth.

展望未來，隨著我們業務規模擴大，以及我們的學習設備業務持續面臨行業逆風，我們預期整體營收增長將趨於放緩。正如教育家蔣杜威在《哲學之重建》中所寫，人總是在成長的過程之中。

At TAL, we are grateful for the opportunity to support our students in that process. And we remain committed to learning and growing alongside them. So that concludes my prepared remarks.

在TAL，我們很感謝能有機會在這個過程中支持我們的學生。我們也將持續致力於與他們一同學習與成長。以上為我事先準備的發言。

Operator, we are ready to open the call for questions.

接線員，我們已準備好開放提問。

(Operator Instructions)

(接線員指示)

Eddy Wang, Morgan Stanley

王艾迪，摩根士丹利

Thank you, Alex and Jackson, for taking my question. My question is regarding the revenue growth. We saw the year-over-year revenue growth moderate in the second quarter. And you walk us through the top-line performance across the major business lines. And how should we think about the growth outlook going forward? Thank you.

謝謝Alex和Jackson回答我的問題。我的問題是關於營收增長。我們看到第二季度按年營收增長有所放緩。請您帶我們梳理一下主要業務線的收入表現。以及我們應該如何看待未來的增長展望？謝謝。

Yeah, Eddy, this is Alex. Let me take that one on. So as we just mentioned, our overall revenue growth moderated in the second quarter. And we expect growth to become more moderate going forward. This really reflects both the increasing scale of our business and the different conditions we're seeing across our business lines.

好的，Eddy，我是Alex。我來回答這個問題。正如我們剛才提到的，我們第二季度整體營收增長有所放緩。我們也預期未來增長會進一步趨於溫和。這主要反映了我們業務規模的擴大，以及我們在各條業務線上所看到的不同經營環境。

So our Peiyou offline programs continue to perform well. The business delivered double-digit revenue growth in the quarter, supported primarily by enrollment growth. Student retention remained healthy. And we continue to see steady demand for face-to-face learning experience. Our learning device business, as both myself and Jackson just mentioned, the business is facing a more difficult market. The industry as a whole for learning devices has contracted, as noted by several independent third-party market reports. And these conditions have affected our performance.

我們的培優線下課程持續表現良好。在本季度，該業務實現了兩位數的收入增長，主要由報名人數增長所帶動。學生留存率保持健康。我們也持續看到對面對面學習體驗的穩定需求。至於我們的學習設備業務，正如我和Jackson剛才提到的，該業務正面臨更為艱難的市場環境。根據多份獨立第三方市場報告所示，整體學習設備行業已出現收縮。而這些情況也影響了我們的表現。

So as a result, learning devices have become a drag on our overall revenue growth. We also saw growth in our online enrichment business moderate during the quarter. So overall, we see our learning services business continue to develop on a healthy foundation, while the learning device business works through a more challenging period in the broader industry environment. So Eddy, I hope that answers your question.

因此，學習設備業務已對我們整體營收增長形成拖累。我們也看到本季度線上素質教育業務的增長有所放緩。總體而言，我們看到學習服務業務在健康的基礎上持續發展，而學習設備業務則在更具挑戰的行業大環境中度過一段較為艱難的時期。Eddy，希望這回答了你的問題。

Jenny Yuan, UBS.

袁婧，瑞銀。

Hi, Alex. Hi, Jackson. So thank you for taking my question. And my question is on our Learning Device business. So given the current challenges in the market, how are you navigating the business? And how should we think about the trade-off between revenue growth and profitability? And are you prioritizing one over the other? Thank you.

嗨，Alex。嗨，Jackson。謝謝你們回答我的問題。我的問題是關於我們的學習裝置業務。鑑於目前市場的挑戰，你們是如何應對這項業務的？我們應該如何看待營收成長與獲利能力之間的取捨？你們是否會優先考量其中一項而非另一項？謝謝。

Thanks, Jenny. This is Alex. Let me take this question on as well. So let me start by saying that we continue to believe learning devices have a strategic role to play in supporting students' learning at home. Over the past few years, we've built a sizable user base. And we remain committed to providing these students and families with quality content and a great learning experience.

謝謝你，Jenny。我是Alex。我也來回答這個問題。我先說明，我們仍然相信學習裝置在支援學生居家學習方面具有策略性角色。過去幾年，我們建立了相當可觀的用戶基礎。我們也仍然致力於為這些學生與家庭提供優質內容與良好的學習體驗。

That said, the industry is going through a challenging period, as we just talked about. The market has contracted, competition remains intense. And rising component costs have added pressure across the industry. Our business has not been, really, it has not been immune to these conditions. We expect learning devices to continue to weigh on the company's overall revenue growth rate.

不過，正如我們剛才談到的，產業正處於一段充滿挑戰的時期。市場規模已經收縮，競爭仍然激烈。而零組件成本上升也為整個產業帶來壓力。我們的業務也確實未能免於這些情況的影響。我們預期學習裝置將持續拖累公司整體營收成長率。

So in this environment, what's our focus? Our focus is on managing the business in a disciplined way. We'll continue to invest in content, technology, and the product experience. But we'll also be thoughtful about how we allocate resources and manage costs. We do not anticipate significant losses from the learning device business for the full fiscal year.

那麼在這樣的環境下，我們的重點是什麼？我們的重點是以嚴謹自律的方式管理這項業務。我們會持續投資於內容、技術與產品體驗。但同時也會審慎思考資源配置方式並控管成本。我們預期在整個會計年度內，學習裝置業務不會出現重大虧損。

Looking ahead, what do we see? We believe there is still a strategic opportunity to use technology to support students' independent learning. We want to continue developing this business with a long-term perspective, while making sure that our near-term decisions reflect the market conditions we're facing today.

展望未來，我們看到了什麼？我們相信，運用科技支援學生自主學習仍然存在策略性機會。我們希望以長期視角持續發展這項業務，同時確保我們的短期決策能反映當前所面臨的市場狀況。

So, Jenny, I hope that answers your question.

所以，Jenny，希望這回答了你的問題。

Okay, thank you.

好的，謝謝。

Timothy Zhao, Goldman Sachs.

Timothy Zhao，高盛。

Hi, Alex. Hi, Jackson. This is Eunice Liu from Goldman Sachs. I'm asking a question on behalf of our analyst, Timothy Zhao. Thank you for taking the question. In this quarter, companies' operating margin improved significantly. We want to ask what drove the improvement, and how should we think about the profitability going forward? Thank you.

嗨，Alex。嗨，Jackson。我是高盛的Eunice Liu。我代表我們的分析師Timothy Zhao提問。謝謝你們回答問題。本季公司的營業利潤率顯著改善。我們想請教改善的驅動因素是什麼，以及未來應如何看待獲利能力？謝謝。

Eunice, thank you for the question. This is Jackson. Let me take this one. And the improvement this quarter in operating margin reflects progress across several areas. As our business has grown in scale, we are being able to serve more students and users, while also managing our costs more efficiently. We've also become more disciplined in how we allocate our resources across the organization.

Eunice，謝謝你的提問。我是Jackson。我來回答這題。本季營業利潤率的改善，反映了我們在多個面向的進展。隨著業務規模擴大，我們能服務更多學生與用戶，同時也能更有效率地管理成本。我們在全公司資源配置方面也變得更有紀律。

Looking ahead, improving profitability remains a priority for us. We'll continue to invest in our products and services, while also driving greater operating efficiency. And as you've seen in the last couple quarters, we expect our operating margin for fiscal 2027 to improve compared with fiscal 2026. At the same time, as always, profitability may vary from quarter to quarter due to seasonality, market conditions, and the timing of our investments. We believe it is more useful to look at our progress over a longer period of time.

展望未來，提升獲利能力仍是我們的優先事項。我們會持續投資於產品與服務，同時推動更高的營運效率。正如你在過去幾季所看到的，我們預期2027會計年度的營業利潤率將較2026會計年度改善。同時，一如既往，由於季節性、市場狀況以及投資時點等因素，獲利能力可能會在各季之間有所波動。我們認為，以較長期間來觀察我們的進展會更有參考價值。

Eunice, I hope that answers your question.?

Eunice，希望這回答了你的問題？

Thank you, Jackson. This is very helpful.

謝謝你，Jackson。這非常有幫助。

(Operator Instructions)

（接線員指示）

Elsie Sheng, CLSA.

Elsie Sheng，里昂證券（CLSA）。

Thank you, management, for taking my question. I'm Elsie, and my question is about other income and shareholder return. So I noticed that other income declined significantly this quarter, and the company also declared a cash dividend for the first time. So could you explain what is the driver behind the change in other income, and also share how you think about the shareholder return? Thank you.

謝謝管理層回答我的問題。我是Elsie，我的問題是關於其他收入與股東回報。我注意到本季其他收入大幅下降，公司也首次宣告現金股利。請問能否說明其他收入變動背後的驅動因素，並分享你們如何看待股東回報？謝謝。

Elsie, thank you for the question. This is Jackson again. Let me take this. And that's not like a two-part question. The first part about other income, and the second part about shareholder return. So then maybe let me tackle them piece by piece.

Elsie，謝謝你的提問。我又是Jackson。我來回答。這其實是個兩部分的問題。第一部分是其他收入，第二部分是股東回報。那我就分別逐一回答。

So first, other income. As part of our capital allocation strategy, look, we maintain an investment portfolio that includes a variety of investment products, ranging from wealth management products to minority equity investments and others. During the quarter, the fair value of certain investments declined, which was a primary driver of the sequential decrease in other income. The value of these investments can change with market conditions, so other income line may fluctuate from quarter to quarter.

先談其他收入。作為我們資本配置策略的一部分，我們維持一個投資組合，涵蓋多種投資產品，從理財產品到少數股權投資等。本季部分投資的公允價值下滑，是其他收入較上一季下降的主要原因。這些投資的價值會隨市場狀況變動，因此其他收入科目可能會在各季之間波動。

The second part of the question was about shareholder returns. Returning value to shareholders is and has always been an important part of our capital allocation strategy. And the dividend declared this quarter complements our ongoing share repurchase program. Looking ahead, we intend to make shareholder returns a more systematic part of our capital allocation approach, using both dividends and share repurchases. Our decisions on the form and the scale of returns will take into account our financial position, the needs of our business, investment opportunity, and market conditions. Elsie, I hope that answers your question.

第二部分是關於股東回報。向股東回饋價值一直是、也始終是我們資本配置策略的重要部分。本季宣告的股利，是對我們持續進行的股票回購計畫的補充。展望未來，我們打算讓股東回報成為資本配置方法中更制度化的一部分，同時運用股利與股票回購。我們在回饋形式與規模上的決策，將考量我們的財務狀況、業務需求、投資機會以及市場狀況。Elsie，希望這回答了你的問題。

Thank you.

謝謝。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

問答環節到此結束。我想把電話會議交回管理層，請他們做結語。

So again, thanks to everybody for joining us today. And we'll see you next quarter. Bye-bye.

再次感謝各位今天參與。我們下季再見。再見。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議到此結束。感謝各位出席今天的簡報。您現在可以掛線。