17 Education & Technology Group Inc (YQ) 2020 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the 17 Education & Technology Group Inc. Fourth Quarter and Fiscal Year 2020 Earnings Conference Call.

女士們、先生們，感謝大家的支持，歡迎參加第 17 屆教育科技集團 2020 年第四季及財年獲利電話會議。

(Operator Instructions) I must advise you that this conference is being recorded today, Tuesday, the 9th of March 2021.

（操作員說明）我必須告知您，本次會議將於今天（2021 年 3 月 9 日星期二）錄製。

I would now like to hand the conference over to your first speaker today, Mr. Raymond Huang, Investor Relations Director of the company. Please go ahead.

現在我想把會議交給今天的第一位發言者，公司投資者關係總監黃雷蒙先生。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining us today. 17EdTech's earnings release was distributed earlier today and is available on the company's IR website.

謝謝你，接線生。大家好，感謝您今天加入我們。 17EdTech 的收益報告已於今天稍早發布，並可在該公司的投資者關係網站上查看。

On the call with me today are Mr. Andy Chang Liu, Founder, Chairman and Chief Executive Officer of 17EdTech; and Mr. Michael Chao Du, Director and the Chief Financial Officer of 17EdTech. Andy will walk you through our latest business performance and strategies, followed by Michael, who will discuss our financial performance and the guidance. They will be available to answer your questions during the Q&A session after their prepared remarks.

今天與我通話的是 17EdTech 創辦人、董事長兼執行長劉暢先生；杜超先生，17EdTech董事兼財務長。安迪將向您介紹我們最新的業務績效和策略，隨後邁克爾將討論我們的財務績效和指導。在準備好發言後，他們將在問答環節回答您的問題。

Before we begin, I'd like to remind you that this conference call contains forward-looking statements as defined in Section 20E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current views, current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control. These risks may cause the company's actual results, performance or achievement to differ materially. Further information regarding this and other risks, uncertainties or factors is included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

在開始之前，我想提醒您，本次電話會議包含 1934 年《證券交易法》第 20E 條和 1995 年《美國私人證券訴訟改革法》中定義的前瞻性陳述。這些前瞻性陳述基於根據管理層目前的觀點、當前的預期以及當前的市場和經營狀況，並涉及涉及已知或未知風險、不確定性和其他因素的事件，所有這些都難以預測，其中許多超出了公司的控制範圍。這些風險可能導致公司的實際結果、績效或成就出現重大差異。有關此風險和其他風險、不確定性或因素的更多資​​訊包含在該公司向美國證券交易委員會提交的文件中。除適用法律要求外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

It is now my pleasure to introduce our Chairman and Chief Executive Officer. Andy, please go ahead.

現在我很高興向大家介紹我們的董事長兼執行長。安迪，請繼續。

Thank you, Raymond. Hello, everyone. Thank you all for joining us for our earnings call. This is our first call as a public company since we successfully listed on NASDAQ in early December 2020. We are grateful for the support from the investor community, and we believe our IPO helped further strengthen our brand image among parents, students and public school teachers as well as help us attract more great talent to join our team.

謝謝你，雷蒙德。大家好。感謝大家參加我們的財報電話會議。這是我們自2020 年12 月初在納斯達克成功上市以來，作為一家上市公司的首次電話會議。我們感謝投資者群體的支持，我們相信我們的IPO 有助於進一步強化我們在家長、學生和公立學校教師中的品牌形象並幫助我們吸引更多優秀人才加入我們的團隊。

Please allow me to start with a very quick background for those who might be new to our story. We have successfully developed our differentiated "in-school + after-school" integrated model that coherently brings together our smart in-school classroom solutions and online after-school tutoring operations.

請容許我先為那些可能不熟悉我們故事的人簡單介紹一下背景。我們成功開發了差異化的「校內+課外」一體化模式，將校內智慧課堂解決方案和線上課外輔導業務有機結合起來。

Our smart in-school classroom solution operation started in 2011 and provides school teachers with industry-leading tools and content libraries in a wide range of in-school teaching and learning scenarios, including class preparation, class delivery, homework assignment and grading and academic assessments to allow a smoother and more efficient data-driven teaching, learning and tracking experience for teachers and students at over 70,000 K-12 schools across China. We are now the largest in-school classroom solution provider in China in terms of MAU.

我們的智慧校內課堂解決方案運作始於2011年，為學校教師提供業界領先的工具和內容庫，涵蓋各種校內教學場景，包括備課、授課、作業和評分以及學業評估為中國70,000多所K- 12學校的師生提供更流暢、更有效率的數據驅動的教學、學習和追蹤體驗。按月活躍用戶數計算，我們現在是中國最大的校內課堂解決方案提供者。

Under our "in-school + after-school" integrated model, we also offer online K-12 large-class after-school tutoring services that complement students' in-school learning, leveraging our insights into students' localized education needs and personal learning profile gained from our in-school operations. Powered by our integrated model and technology, our online K-12 large-class after-school tutoring courses stand out in terms of unique approach to personalization based on our data-driven understanding of individual students' in-school performance as well as our district-level localized insights.

在「校內+課外」一體化模式下，我們還提供線上K-12大班課後輔導服務，以補充學生的校內學習，充分利用我們對學生本地化教育需求和個人學習的洞察從我們的校內運營中獲得的個人資料。在我們的整合模型和技術的支持下，我們的線上 K-12 大班課後輔導課程以獨特的個人化方法脫穎而出，該方法基於我們對個別學生在校表現以及我們學區的數據驅動的了解級本地化見解。

Our business continued to grow rapidly in 2020. In 2020, our net revenues grew by 217% to RMB 1.29 billion from 2011 -- 2019. Our gross billings from our online K-12 tutoring services were approximately RMB 1.65 billion, up 203%. And our paid course enrollments reached 2.02 million, up 178%.

2020年，我們的業務繼續快速成長。2020年，我們的淨收入比2011年至2019年成長了217%，達到人民幣12.9億元。我們線上K-12輔導服務的總收入約為人民幣16.5億元，成長203%。付費課程報名人數達202萬人，成長178%。

We are committed to our differentiated "in-school + after-school" integrated model in this highly competitive market. After multiple years of investment, our in-school products now connect a lot of teachers, students and parents and are used at schools across over 360 cities across China. In addition, through more than the 722 billion of homework assignments students completed on our platform, we're gaining insights into students' learning progress, which help us pinpoint the strengths and the weakness of individual students. Teachers, students and parents interact actively around the apps across various learning and teaching scenarios such as homework and academic assessments. All of this make it possible for us to deliver teaching and services with a higher level of personalization in the after-school tutoring market.

在這個競爭激烈的市場中，我們致力於打造差異化的「校內+課外」一體化模式。經過多年的投入，我們的校內產品現已連結了眾多教師、學生和家長，並在全國360多個城市的學校使用。此外，透過學生在我們平台上完成的超過 7,220 億份家庭作業，我們可以深入了解學生的學習進度，這有助於我們找出個別學生的優勢和劣勢。教師、學生和家長圍繞著應用程式在各種學習和教學場景（例如作業和學術評估）中積極互動。所有這些使我們能夠在課外輔導市場上提供更高水準的個人化教學和服務。

In the fourth quarter of 2020, the average MAU of in-school application for students were approximately 20 million, representing a year-over-year increase of 28% from approximately 60 million in the fourth quarter of 2019. 2021 spring semester has also recently started and we are happy to see continuous growth in the use of our in-school applications among teachers and students in terms of DAU in the first week of the semester as compared with the first week of fourth semester of 2020.

2020年第四季度，學生在校申請平均月活躍用戶數約為2000萬，較2019年第四季度的約6000萬同比增長28%。2021年春季學期也於近日我們很高興地看到，與2020 年第四學期第一週相比，學期第一週教師和學生使用校內應用程式的DAU 持續成長。

The long-term trend of informatization within China's public education system presents tremendous growth opportunities. Government policy has also been supported since technology will allow students in smaller cities to have a better chance than ever to access the same high-quality teaching opportunities that until now have otherwise only been enjoyed by kids living in large cities.

中國公共教育系統資訊化的長期趨勢帶來了巨大的成長機會。政府政策也得到了支持，因為科技將使小城市的學生比以往任何時候都有更好的機會獲得相同的高品質教學機會，而迄今為止只有生活在大城市的孩子才能享受這些機會。

In April 2018, the Ministry of Education issued the Education Informatization 2.0 Action Plan. And in February 2019, the State Council issued China's Education Modernization 2035, emphasizing the position and role of education implementation in the process of promoting education modernization. Just recently on January 28, 2021, the opinions of the Ministry of Education and 4 other departments on strengthening the construction and application of online education and teaching resources for primary and secondary schools were released. We believe education informatization will provide huge room for our in-school operations to grow in the years ahead.

2018年4月，教育部印發《教育資訊化2.0行動計畫》。 2019年2月，國務院印發《中國教育現代化2035》，強調教育實施在推廣教育現代化過程中的地位與角色。就在不久前的2021年1月28日，教育部等4部門關於加強中小學線上教育教學資源建置與應用的意見發布。我們相信，教育資訊化將為我們校內業務未來幾年的發展提供巨大的空間。

We have continued to invest in our smart in-school solutions in terms of products, content, services and school coverage. Our understanding of students' learning profile continued to improve as the use of apps in the in-school scenarios. This, at the same time, help us improve the quality of our after-school tutoring business and services to better address their own learning needs. We see great synergies and further potentials between our in-school and after-school business in helping us provide products and services that better address the needs of our users and customers.

我們在產品、內容、服務和學校覆蓋等方面持續投資智慧校內解決方案。隨著應用程式在校內場景的使用，我們對學生學習概況的了解不斷提高。同時，這也有助於我們提高課後輔導業務和服務的質量，更能滿足他們自己的學習需求。我們看到校內和課外業務之間存在巨大的協同效應和進一步的潛力，可以幫助我們提供更好地滿足使用者和客戶需求的產品和服務。

Under our integrated model, we have achieved rapid growth in our after-school tutoring business, leveraging the advantages of our proprietary user base, localized content and data insights into student learning from our in-school business. Our paid course enrollments increased by 165% year-over-year to 849,000 in the fourth quarter of 2020 and our annual total paid course enrollments has reached 2.02 million.

在我們的整合模式下，我們利用我們專有的用戶基礎、在地化內容和校內業務對學生學習的數據洞察的優勢，實現了課外輔導業務的快速成長。 2020年第四季度，我們的付費課程註冊人數年增165%至84.9萬人，全年付費課程註冊總人數達202萬人。

The integrated model allowed us to grow rapidly without relying on massive spending on external traffic acquisition. This allows us to enjoy healthy new customer acquisition costs and more attractive unit economics. We continue to maintain low and relatively stable new customer acquisition costs in this highly competitive market. Given our differentiated customer acquisition approach and high entry barrier in the in-school industry, our new customer acquisition costs are also less susceptible to industry competition and cost increases. Our new customer, CAC, has demonstrated strong stability over the past few quarters, including this last winter.

一體化的模式讓我們能夠在不依賴大量外部流量獲取支出的情況下快速成長。這使我們能夠享受健康的新客戶獲取成本和更具吸引力的單位經濟效益。在這個競爭激烈的市場中，我們持續保持較低且相對穩定的新客戶獲取成本。鑑於我們差異化的獲客方式以及校內產業的高進入壁壘，我們的新獲客成本也不易受到產業競爭和成本增加的影響。我們的新客戶 CAC 在過去幾季（包括去年冬天）表現出了強大的穩定性。

We are achieving increasing high number of new paid course enrollments conversion. Such advantage in customer acquisition costs has allowed us to achieve better unit economics and healthier growth. We plan to continue to grow our online large-class K-12 after-school tutoring business, relying on our proprietary user base under our integrated model. We are confident that this unique integrated model allows us to grow and compete effectively and efficiently in the market.

我們正在實現越來越多的新付費課程註冊轉換。這種獲客成本的優勢使我們能夠實現更好的單位經濟效益和更健康的成長。我們計劃依靠我們綜合模式下的專有用戶群，繼續發展我們的線上大班 K-12 課後輔導業務。我們相信，這種獨特的整合模式使我們能夠在市場上有效和有效率地發展和競爭。

Another benefit of our integrated model is the insight we gain into students' personal learning needs and our understanding of local teaching and assessment emphasis. My team and I spend significant time in reaching out to our customers to better understand their education needs.

我們綜合模式的另一個好處是我們能夠深入了解學生的個人學習需求以及對當地教學和評估重點的理解。我和我的團隊花了大量時間與客戶接觸，以便更好地了解他們的教育需求。

Together with the feedback and our understanding of their in-school academic profiles, we have invested in a proprietary teaching assistance system, (foreign language), borrowing the name of an ancient Chinese doctor we can -- who can diagnose disease from limited symptoms. This system allows us to better integrate the insights we gain from our in-school operations with our after-school tutoring business on an individual basis to achieve higher level of personalization. We have noted that the renewal rates of students who are helped by such system tend to have renewal rates of up to high single-digit higher than those whose in-school learning data are not yet available to us.

結合回饋以及我們對他們在校學術概況的了解，我們投資了一個專有的教學輔助系統（外語），我們可以藉用一位中國古代醫生的名字——他可以從有限的症狀診斷疾病。該系統使我們能夠更好地將我們從校內運營中獲得的見解與我們的課後輔導業務結合起來，以實現更高水平的個性化。我們注意到，受到該系統幫助的學生的續訂率往往比我們尚未獲得校內學習數據的學生的續約率高出個位數。

We see huge potential in our integrated model not only because it allows us to achieve healthier customer acquisition in this market so that more resources can be invested into improving our products and services, but also because we believe it has its unique value in evaluating teaching and learning efficiencies and effectiveness, both in-school and after-school, to a new rate that will create more value for our users and customers.

我們看到了我們的整合模式的巨大潛力，不僅因為它使我們能夠在這個市場上實現更健康的客戶獲取，從而可以投入更多的資源來改進我們的產品和服務，還因為我們相信它在評估教學和服務方面有其獨特的價值。將校內和課外的學習效率和效果提高到一個新的水平，為我們的用戶和客戶創造更多價值。

Now I will turn the call over to Michael, our CFO, to walk you through our latest financial performance. Thank you.

現在我將把電話轉給我們的財務長邁克爾，向您介紹我們最新的財務業績。謝謝。

Thanks, Andy, and thank you, everyone, for joining the call. I will now walk you through our financial and operating results. Please note that all financial data I talk about will be presented in RMB terms.

謝謝安迪，也謝謝大家加入這場電話會議。現在我將向您介紹我們的財務和營運績效。請注意，我談到的所有財務數據均以人民幣表示。

I'm pleased to report our strong results for the fourth quarter and for the full year of 2020. We achieved strong top line growth. Net revenues increased by 153% year-over-year to RMB 487 million in the fourth quarter of 2020 and increased by 218.6% to RMB 1,294.4 million in 2020.

我很高興地報告我們在第四季和 2020 年全年的強勁業績。我們實現了強勁的營收成長。 2020年第四季淨收入年增153%至人民幣4.87億元，2020年淨收入成長218.6%至人民幣12.944億元。

The net revenues from online K-12 tutoring services increased by 164% to RMB 468 million in the fourth quarter of 2020 and increased by 239% to RMB 1,219 million in 2020. Gross billings of online K-12 tutoring services, which is a non-GAAP measure, increased by 166% year-over-year to RMB 579 million in the fourth quarter of 2020 and increased by 203% year-over-year to RMB 1,655 million for the full year. Paid course enrollments increased by 165% year-over-year to 849,000 in the fourth quarter of 2020 and increased by 178% year-over-year to 2.02 million.

2020 年第四季線上 K-12 輔導服務淨收入成長 164% 至人民幣 4.68 億元，2020 年成長 239% 至人民幣 12.19 億元。- 依公認會計原則計算，2020年第四季年增 166%至人民幣5.79億元，全年年增203%至人民幣16.55億元。 2020年第四季付費課程註冊人數較去年成長165%至84.9萬人，較去年同期成長178%至202萬人。

In addition to robust revenue growth, our operational efficiency continued to improve in the fourth quarter and the year of 2020. Our gross margin was 64.3% in the fourth quarter of 2020, improving from 62.9% in the fourth quarter of 2019. It was also 61.7% for the full year 2020 compared with 57.3% in 2019.

除了強勁的營收成長外，我們的營運效率在第四季和 2020 年全年持續改善。我們的毛利率在 2020 年第四季為 64.3%，較 2019 年第四季的 62.9% 有所提高。 2020 年全年為61.7%，而2019 年為57.3%。

Our adjusted net loss, also a non-GAAP measure which excludes share-based compensation expenses, was RMB 134.6 million loss in the fourth quarter of 2020, a decrease from RMB 163 million in the fourth quarter of 2019. For the full year 2020, our adjusted net loss was RMB 984 million compared with RMB 871 million in 2019.

2020 年第四季，我們的調整後淨虧損（也是不包括股權激勵費用的非公認會計準則衡量標準）為1.346 億元人民幣，較2019 年第四季的1.63 億元人民幣有所下降。2020 年全年，調整後淨虧損為人民幣 9.84 億元，而 2019 年為 8.71 億元。

In terms of adjusted net loss as a percentage of net revenue, it was negative 27.7% in the fourth quarter of 2020, significantly narrowed from negative 84.8% in the fourth quarter of 2019. For the full year 2020, our adjusted net loss as a percentage of net revenues was negative 76%, significantly decreased from the negative 214% in 2019. We're happy to share that operating cash flow has also turned positive in the first -- in the fourth quarter of 2020.

就調整後淨虧損佔淨收入的百分比而言，2020年第四季為負27.7%，較2019年第四季的負84.8%大幅收窄。2020年全年，我們調整後淨虧損為淨收入百分比為負76%，較2019 年的負2​​14% 顯著下降。我們很高興地告訴大家，營運現金流在2020 年第一季（即第四季）也已轉為正值。

Our business model has strong operational leverage. Our differentiated integrated model allows us to grow at relatively attractive and stable customer acquisition costs as our net revenue growth from online K-12 tutoring businesses will be much faster than the increase in costs and expenses associated with our in-school operations. Our operational leverage continues to increase as we grow. Our larger revenue base allows us to better observe the sales and marketing, R&D and G&A expenses associated with our in-school operations and thus allow continuous improvements in our operational efficiency.

我們的商業模式具有強大的營運槓桿。我們的差異化整合模式使我們能夠以相對有吸引力且穩定的客戶獲取成本實現增長，因為我們來自在線K-12 輔導業務的淨收入增長將遠遠快於與我們校內運營相關的成本和費用的增長。隨著我們的成長，我們的營運槓桿不斷增加。我們更大的收入基礎使我們能夠更好地觀察與校內營運相關的銷售和行銷、研發和一般行政費用，從而不斷提高我們的營運效率。

Next, I would like to go through our fourth quarter financials in greater details. Our net revenues for the fourth quarter of 2020 were RMB 487 million, representing a year-over-year increase of 153% from RMB 192 million in the fourth quarter of 2019. The increase was primarily driven by the increase in net revenues from our online K-12 tutoring businesses.

接下來，我想更詳細地介紹一下我們第四季的財務狀況。 2020年第四季我們的淨收入為人民幣4.87億元，較2019年第四季的人民幣 1.92億元同比增長153%。這一增長主要是由於我們的在線淨收入增長所致。K-12 輔導業務。

Our net revenues from online K-12 tutoring businesses were RMB 468 million, up 164% year-over-year from RMB 177 million in the fourth quarter of 2019 and accounted for 96% of our total revenues. The increase was primarily driven by increasing paid course enrollments and increase in the medium levels of our course fees.

我們來自線上K-12補習業務的淨收入為人民幣4.68億元，較2019年第四季的人民幣1.77億元年增164%，占我們總收入的96%。這一增長主要是由於付費課程入學人數的增加和中等課程費用的增加所致。

Our paid course enrollments for fourth quarter of 2020 were 849,000, representing an increase of 165% year-over-year from approximately 320,000 in the fourth quarter of 2019.

2020 年第四季我們的付費課程報名人數為 849,000 人，較 2019 年第四季的約 32 萬人年增 165%。

Our cost of revenue for the fourth quarter of 2020 was RMB 174 million, representing an increase of 144% year-over-year, primarily due to the increase in compensation costs for instructors and tutors and teaching materials, which were largely in line with the revenue growth.

2020年第四季度，我們的收入成本為人民幣1.74億元，年增144%，主要是由於講師和導師的薪酬成本以及教材費用的增加，與去年同期基本一致。收入增長。

Our gross profit for the fourth quarter was RMB 313 million, representing a year-over-year increase of 159%. The increase was primarily driven by the increase in net revenues. We also see growth in our gross margin, improving to 64.3% from 62.9% in the fourth quarter last year. The increase was primarily attributable to the growth of the business operation scale as well as improvements in our operational efficiency.

第四季毛利為人民幣3.13億元，年增159%。這一增長主要是由淨收入的成長所推動的。我們也看到毛利率有所成長，從去年第四季的 62.9% 提高到 64.3%。此成長主要歸因於業務經營規模的成長以及營運效率的提升。

Our average MAUs of in-school applications for students for the fourth quarter in 2020 was 20.4 million, representing a year-over-year increase of 28% from around 16 million in the fourth quarter of 2019.

2020 年第四季學生在校申請的平均每月活躍用戶數為 2,040 萬，較 2019 年第四季的 1,600 萬左右年增 28%。

Moving to the expense side. Our total expense -- operating expenses for the fourth -- were RMB 676 million. This includes RMB 230 million of share-based compensation expenses. Our total operating expenses as a percentage of net revenues decreased to 139% from 157% in the fourth quarter of 2019.

轉向費用方面。我們的總支出——第四季度的營運支出——為人民幣 6.76 億元。其中包括人民幣2.3億元的股權激勵費用。我們的總營運費用佔淨收入的百分比從 2019 年第四季的 157% 下降至 139%。

Our selling and marketing expenses for the fourth quarter of 2020 were RMB 247 million. This includes RMB 23.4 million of share-based compensation expenses. This represents an increase of 74.5% from RMB 142 million in the fourth quarter of 2019. The increase was significantly slower than our revenue growth. This was primarily due to the increase in our operational efficiency as well as our payments into the salary and welfare for sales and marketing personnels, branding-related expenses as well as promotional cost expenses as we have enhanced our sales and marketing efforts to prepare our growth.

2020年第四季我們的銷售和行銷費用為人民幣2.47億元。其中包括人民幣2,340萬元的股權激勵費用。這比 2019 年第四季的人民幣 1.42 億元成長了 74.5%。這一成長明顯慢於我們的營收成長。這主要是由於我們的營運效率提高，以及我們為銷售和行銷人員的工資和福利、品牌相關費用以及促銷成本費用支付的費用，因為我們加強了銷售和行銷力度以準備我們的成長。

We have seen similar trends in our R&D expenses which were RMB 192 million, representing a year-over-year growth of 49%. The increase was primarily due to continuous investments into R&D, including salaries and welfare for R&D personnels.

我們的研發費用也有類似的趨勢，為人民幣1.92億元，年增49%。成長主要是由於對研發的持續投入，包括研發人員的薪資和福利。

G&A expenses were RMB 237 million, which also includes our share-based compensation expenses of RMB 176 million. The share-based compensation was primarily due to an increase of share-based compensations that are related to IPO.

一般及行政費用為 2.37 億元，其中還包括我們的股權激勵費用 1.76 億元。股權激勵主要是由於與IPO相關的股權激勵增加所致。

Our net loss on a GAAP basis was RMB 365 million compared with RMB 178 million last quarter, but on a non-GAAP -- adjusted basis, which excludes share-based compensation, we see our adjusted net loss narrowing to RMB 135 million, which was negative 27.7% of our net revenues in the first -- in the fourth quarter of 2020 compared to a negative 84.8% in the fourth quarter of 2019.

以GAAP 計算，我們的淨虧損為3.65 億元人民幣，而上季為1.78 億元人民幣，但在非GAAP 調整後（不包括股權激勵）的基礎上，我們預計調整後的淨虧損將收窄至1.35 億元人民幣。2020 年第四季度，我們的淨收入為負 27.7%，而 2019 年第四季為負 84.8%。

As of December 31, 2020, other than restricted cash of around RMB 0.2 million, our cash and cash equivalents were RMB 2.8 billion compared to RMB 654 million as of December 31, 2019.

截至2020年12月31日，除了約20萬元人民幣的限制性現金外，我們的現金和現金等價物為28億元人民幣，而截至2019年12月31日為6.54億元人民幣。

And finally, our deferred revenue was RMB 598 million, up 145% year-over-year. This was primarily attributable to our rapid growth in our after-school tutoring businesses. We generally collect course fees in advance, which we initially record as deferred revenues. We believe our deferred revenue give us greater visibilities on our upcoming quarters' performance.

最後，我們的遞延收入為人民幣5.98億元，年增145%。這主要歸功於我們課外輔導業務的快速成長。我們通常會提前收取課程費用，最初將其記錄為遞延收入。我們相信，我們的遞延收入使我們能夠更好地了解未來幾季的業績。

With that, I will now provide our views on our business outlook. Based on our current estimate, total revenues for the first quarter of 2021 are expected to be between 458 million and 470 million, representing a year-over-year increase of around 100% to 105.2%. These estimates represent our current and preliminary view, which are subject to potential change.

現在，我將就我們的業務前景發表我們的看法。根據我們目前的預測，2021年第一季的總營收預計在4.58億至4.7億之間，年增約100%至105.2%。這些估計代表了我們當前和初步的觀點，可能會改變。

Although due to negative accretion of redeemed preferred shares pure accounting treatment, we have actually achieved net income available to ordinary shareholders of RMB 552.6 million in the fourth quarter of 2020. We do not expect this to continue as this is one-off event. We will continue to balance the growth rate and profitability. We believe, at this stage, continuous investment into our business growth is more important for the company.

儘管由於純會計處理的已贖回優先股的負增加，我們實際上在2020 年第四季度實現了普通股股東可獲得的淨利潤5.526 億元人民幣。我們預計這種情況不會持續下去，因為這是一次性事件。我們將繼續平衡增速和獲利能力。我們相信，現階段，持續投資於我們的業務成長對公司來說更為重要。

To conclude, I would like to remind everyone about the seasonality within our businesses. The fourth quarter tends to be a quarter with relatively higher margins. We typically have higher revenue and lower selling and marketing expenses in the second and fourth quarters of the year, and thus, higher profitability. And also relatively lower quarter-to-quarter revenue growth will be seen in the first and third quarters, but together with higher selling and marketing expenses as a majority of the conversion and promotion expense activities take place in winter and summer vacations. Therefore, for the first and third quarters, they tend to have to experience more losses.

最後，我想提醒大家注意我們業務的季節性。第四季往往是利潤率相對較高的季度。通常，我們在第二季和第四季的收入較高，銷售和行銷費用較低，因此獲利能力較高。第一季和第三季的季度收入成長相對較低，但銷售和行銷費用較高，因為大部分轉換和促銷費用活動發生在寒暑假。因此，第一季和第三季度，他們往往會遭受更多損失。

This is a primary result of, first, we primarily rely on our proprietary user base for our trial course enrollments. Therefore, the biggest chunk of our selling and marketing expenses are actually related to providing the services for potential students instead of paying to external parties for them to attain our trial courses. That's why the substantial portion of our trial course service fee takes place in the first and third quarters. On a similar reason, we typically see more material increases in paid course enrollments after the winter and summer vacations and -- which have more revenue uplift in the second and fourth quarters on a quarter-over-quarter basis.

首先，這是我們主要依靠我們專有的用戶群來註冊試用課程的主要結果。因此，我們銷售和行銷費用的最大一部分實際上與為潛在學生提供服務有關，而不是向外部各方支付費用以讓他們獲得我們的試用課程。這就是為什麼我們的試聽課程服務費的很大一部分發生在第一季和第三季。出於類似的原因，我們通常會看到寒暑假後付費課程的註冊人數出現更多實質增長，並且第二季度和第四季度的收入環比增長更多。

Similarly, our selling and marketing expenses in second and fourth quarters tends to be lower than the first and third quarter. This fluctuation is further amplified by the fact that we don't incur a large amount of online external traffic acquisition expenses which is common in the industry. That's why relative compared to our peers, we might be seeing a slightly stronger seasonality fluctuation between different quarters.

同樣，我們第二和第四季的銷售和行銷費用往往低於第一季和第三季。由於我們沒有承擔行業內常見的大量線上外部流量獲取費用，這一事實進一步放大了這種波動。這就是為什麼相對於我們的同行，我們可能會看到不同季度之間的季節性波動稍強。

We do expect us to reach breakeven on our profitability in the second or the fourth quarters easier and earlier when compared with the first or third quarters or on a full year basis. However, if reaching profitability in certain quarter, especially in the second and fourth quarter, doesn't automatically guarantee the next quarter to be profitable due to the seasonality reasons I mentioned above. That's why we internally review our performance and operational efficiency on a semi-annual basis to gain a more complete view.

我們確實預計，與第一季或第三季或全年相比，我們將在第二或第四季更容易、更早地實現獲利盈虧平衡。然而，由於我上面提到的季節性原因，如果在某個季度，特別是第二季度和第四季度實現盈利，並不能自動保證下一個季度盈利。這就是為什麼我們每半年對我們的績效和營運效率進行一次內部審查，以獲得更全面的了解。

With that, it concludes our prepared remarks. Thank you. Operator, we are now ready to begin the Q&A session.

我們準備好的演講到此結束。謝謝。接線員，我們現在準備開始問答環節。

(Operator Instructions) Our first telephone question comes from Sheng Zhong from Morgan Stanley.

（操作員指示） 我們的第一通電話問題來自摩根士丹利的盛忠。

My first question is on your next quarter revenue guidance. How much impact do you see from the late Chinese New Year? And can you also provide the revenue guidance for the full year next year?

我的第一個問題是關於你們下一季的收入指引。您認為遲到的農曆新年有多大影響？您能否提供明年全年的收入指引？

And second question is about the regulation. We see government disallow electronic homework. And especially for primary school students, the government now requires the homework to be done in school. Do you think this will impact the -- your in-school business, the MAU growth? And do you have a plan to do more external student acquisition if there is impact from the regulation?

第二個問題是關於監管的。我們看到政府禁止電子作業。特別是對於小學生，政府現在要求家庭作業必須在學校完成。您認為這會影響您的校內業務、每月活躍用戶數成長嗎？如果受到法規的影響，您是否計劃招收更多外部學生？

Thanks, Zhong Sheng. I'll answer the first questions, and then I'll pass to Andy for the second questions.

謝謝鐘升。我將回答第一個問題，然後我將交給安迪回答第二個問題。

So on your question on net quarter's revenue guidance, how much was it affected by late Chinese New Year, yes, it's actually indeed affected by that. We actually have already completed our winter conversion cycle and that we do see strong growth during that period. However, as the Chinese New Year is actually relatively late, so actually for the spring revenues, actually it has one whole week less of revenue that is being recognized in the first quarter. On our initial estimation, it probably will actually decrease the overall revenue by around 10%, assuming if all cycles were similar as previous year.

因此，關於您關於季度淨收入指導的問題，它受到農曆新年末的影響有多大，是的，它實際上確實受到了影響。實際上，我們已經完成了冬季轉換週期，並且在此期間我們確實看到了強勁的成長。不過，由於農曆新年其實比較晚，所以實際上春季的收入，實際上比第一季確認的收入少了整整一周。根據我們的初步估計，假設所有周期與去年相似，它實際上可能會使整體收入減少 10% 左右。

In terms of annual revenue guidance, we actually do not provide revenue guidance for the full year.

在年度收入指引方面，我們實際上並沒有提供全年的收入指引。

With that, I will pass to Andy for the second question.

接下來，我將請安迪回答第二個問題。

I would speak in Chinese and Michael will translate in English. (foreign language)

我會用中文發言，麥可會用英文翻譯。 （外語）

[Interpreted] Even considering the regulatory environment we have seen, we are still very confident in our overall annual growth in terms of revenues. Especially, we are confident that we are able to achieve that without relying on external traffic acquisition.

【解讀】即使考慮到我們所看到的監管環境，我們仍然對我們整體的年度收入成長充滿信心。特別是，我們有信心在不依賴外部流量獲取的情況下能夠實現這一目標。

(foreign language)

（外語）

Then I'll further elaborate on the reasons behind that. So first, in terms of the -- our in-school ecosystem, essentially it's not only a homework. It actually includes class preparation, class delivery, homework assignments as well as assessments, which is comprehensive multiple scenarios interacting with the teachers, students and the parents.

接下來我會進一步闡述背後的原因。首先，就我們的校內生態系統而言，本質上它不僅僅是一項作業。它實際上包括備課、授課、作業以及評估，是與老師、學生、家長互動的綜合性多場景。

Secondly, even in terms of homework, it can be completed by students in multiple type of devices, including PCs, pads and including mobile phones in the home. Also, in terms of completing homeworks and homes on different multiple devices, it was actually activities controlled by the parents and students themselves. So we don't see much impact on that. And also the philosophy, I think, starting from last year's, we actually have been exploring private domains where we are able to back up and duplicate the -- reach to parents and to various students on our various social networks, which further allow us to be less impacted in terms of the app itself.

其次，即使是作業，學生也可以在多種裝置上完成，包括PC、Pad、包括家中的手機。另外，就在不同的多種設備上完成作業和回家而言，實際上是家長和學生自己控制的活動。所以我們認為這不會產生太大影響。我認為，從去年開始，我們實際上一直在探索私有領域，在這些領域中，我們能夠備份和複製——接觸到我們各種社交網路上的家長和各種學生，這進一步使我們能夠應用程式本身受到的影響較小。

(foreign language)

（外語）

[Interpreted] So therefore, those in terms of near-term and the longer-term of our integrated model, we are fairly confident because we believe if you look at things at 3 or 5 years or even longer cycle or longer horizons, the informatization and modernization of China's education system is irreversible. This is actually the only way to achieve or to improve education and quality in China.

【解讀】所以說，對於我們的綜合模式的近期和長期來說，我們是相當有信心的，因為我們相信如果你從3年、5年甚至更長的周期、更長的視野來看，訊息化中國教育體系的現代化進程不可逆轉。這實際上是中國實現或提高教育和品質的唯一途徑。

So we are very confident. As long as we can provide high values to the teachers, students and parents in class preparations, deliveries, homework assessments, various learning and teaching scenarios, we are confident this is a model that has long prosperities. If some of you might be interested, you're encouraged you to actually see the 14th 5-year plans, its interpretation and discussion about informatization of China's education over the next few years. We see very strong needs and willingness to prepare this from China's government.

所以我們非常有信心。只要我們能夠在備課、授課、作業考核、各種學教場景等方面為老師、學生和家長提供高價值，我們就有信心這是一個長久繁榮的模式。如果你們有興趣的話，我們鼓勵你們去實際看看「十四五」規劃，它的解讀以及對未來幾年中國教育資訊化的討論。我們看到中國政府對此做好準備的強烈需求和意願。

May I follow-up that your MAU outlook for next year?

我可以跟進一下你們明年的月活躍用戶數展望嗎？

Thanks, Zhong Sheng. So we don't actually provide, say, outlook for a particular 1 year or so, but I think despite the policy environment, we are still confident that the MAU of apps is likely to double over the next 2 to 3 years' horizon.

謝謝鐘升。因此，我們實際上並沒有提供特定 1 年左右的前景，但我認為，儘管有政策環境，我們仍然相信應用程式的 MAU 可能在未來 2 到 3 年內翻一番。

(foreign language)

（外語）

[Interpreted] Yes. Just to supplement our remarks, Andy added, so probably it might be -- to be more accurate, it will be unique IDs, both in terms of apps as well as potentially PC or other formats.

[解釋] 是的。安迪補充道，為了補充我們的評論，所以可能是 - 更準確地說，它將是唯一的 ID，無論是在應用程式方面還是在潛在的 PC 或其他格式方面。

Our next telephone question in queue is from Lucy Yu from BofA Securities.

我們的下一個電話問題來自美國銀行證券公司的 Lucy Yu。

So I have 2 questions here. One is also on the policy side, but more on the after-school tutoring. So we have seen government requiring all instructors to have the teacher qualification. So may I know that how many of your current instructors who are teaching right now is without the qualification at the moment? So if they don't have the qualification, does it mean that they cannot teach the classes for the upcoming semester? And also how should we think about the competition in after-school part going forward? So that's question number one.

所以我這裡有兩個問題。一也是在政策方面，但更多的是在課後輔導方面。所以我們看到政府要求所有教師都必須具備教師資格。請問你們目前在任的老師中有多少人目前沒有資格？那如果沒有資格，是不是就不能教下學期的課程呢？還有我們該如何看待接下來課後部分的競爭？這是第一個問題。

Number 2 is could we elaborate a bit more about our winter promotion strategy? So I have seen that the conversion rate from in-school to after-school went up quite nicely in the fourth quarter of last year with MAU being largely flattish Q-on-Q, but the paid enrollment actually surged a lot. So how should we think about the conversion rate from in-school to after-school in 2021?

第二個問題是我們能否詳細說明一下我們的冬季促銷策略？因此，我看到去年第四季從校內到課外的轉換率上升得相當不錯，每月活躍用戶數比基本持平，但付費入學人數實際上大幅增加。那我們該如何看待2021年從校內到課外的轉換率呢？

Thanks, Lucy. Let me quickly translate the questions to Andy first.

謝謝，露西。讓我先快速將問題翻譯給安迪。

Thanks, Lucy. So basically, in terms of instructor qualifications, as I recall, we have more than -- around 2/3 of our instructors actually are properly qualified or have already and only around 10% of them have passed all the tests but not yet got their qualifications yet. We don't see this have a major impact on us as the vast majority of the revenues generated from instructors are with those with qualifications. And we are actually among the leading players with a higher percentage of teachers or instructors having such qualification.

謝謝，露西。所以基本上，就教練資格而言，據我記得，我們​​有超過——大約2/3 的教練實際上具有適當的資格或已經合格，只有大約10% 的人通過了所有測試，但尚未獲得資格。資格還沒。我們認為這不會對我們產生重大影響，因為絕大多數收入來自具有資格的講師。事實上，我們是擁有此類資格的教師或講師比例較高的領導者之一。

On your second question, in terms of our school tutoring competition and how we can -- how we see our fourth quarter paid course enrollment, I think the fourth quarter paid course enrollments was a combination of our improvements in terms of the students we can convert from our in-school traffic as well as the student -- existing students renew their course and signing up of their course. That's why you can see the number keep increasing in the fourth quarter.

關於你的第二個問題，就我們的學校輔導競賽以及我們如何看待第四季度的付費課程入學人數而言，我認為第四季度的付費課程入學人數是我們在可以轉化的學生方面取得的進步的結合來自我們校內的交通以及學生——現有學生更新他們的課程並註冊他們的課程。這就是為什麼你可以看到第四季度這個數字不斷增加。

In terms of our winter strategy or actually our expectation for 2020, as you know, the winter conversion season actually has already completed. We have some preliminary statistic from that, and we see them are very promising and we're happy to see the trend.

就我們的冬季策略或實際上我們對2020年的預期而言，正如你所知，冬季轉換季節實際上已經結束了。我們從中得到了一些初步統計數據，我們認為它們非常有前途，我們很高興看到這種趨勢。

In summary, we see, first, in terms of the number of full price students that get converted from our winter actually has increased significantly, which is actually more than double the same number of the last winter. Secondly, in terms of unit customer acquisition expenses, it's also remained highly stable. I think it only increased by around 10% compared to the last conversion cycle, which is significantly slower than industry increase. We believe this is a significant benefit and the edge of our integrated models. That's why with, as you mentioned earlier, the paid course enrollment that took place in the fourth quarter and also what we have seen in the winter cycle, we actually see us approaching what we believe is major milestones for our business where the number of concurrent students getting very close to 1 million enrollments after the winter cycle.

綜上所述，我們看到，首先，從我們冬季轉來的全價學生數量來看，實際上已經大幅增加，實際上是去年冬季相同數量的兩倍多。其次，單位獲客費用方面也維持高度穩定。我認為與上一個轉換週期相比僅增長了10%左右，這明顯慢於行業增長。我們相信這是一個顯著的優勢，也是我們整合模型的優勢。這就是為什麼，正如您之前提到的，第四季度發生的付費課程註冊以及我們在冬季週期中看到的情況，我們實際上看到我們正在接近我們認為是我們業務的主要里程碑，其中並發數量冬季學期結束後，學生入學人數接近100 萬人。

So for 2021, I think we are -- as Andy has mentioned earlier, we are very confident to continuously grow in these sectors despite the competition and we are confident delivering a very strong overall year.

因此，對於 2021 年，我認為我們——正如安迪之前提到的那樣，儘管存在競爭，我們仍然非常有信心在這些領域不斷增長，並且我們有信心實現非常強勁的整體業績。

(foreign language)

（外語）

[Interpreted] So the numbers we have seen in fourth quarter and also the initial statistics we've seen on the winter were very stable, CAC only increasing of around 10% and also the number of students getting converted was actually doubling what we've seen in last winter 2019 as well. Also the -- our over -- our after-school tutoring business approaching a SKU very close to 1 million concurrent full price students enrollments.

[解讀]所以我們在第四季度看到的數字以及我們在冬季看到的初步統計數據都非常穩定，CAC 僅增長了 10% 左右，而轉換的學生數量實際上是我們預期的兩倍2019 年冬天也出現過。此外，我們的課後輔導業務的 SKU 非常接近 100 萬名並發全價學生入學人數。

This is actually all behind -- as a result, the long-term advantage of our -- inherent advantage of our integrated models. So over the last few years, our accumulations of presence in in-school scenarios of more than 70,000 schools actually is a long-term strength and the benefit that we actually gradually play out in the next few quarters and years. We are confident that we actually will be growing on a very healthy unique customer acquisition expenses and in a relatively solid growth rates without relying on external traffic.

這實際上是我們整合模型固有優勢的長期優勢。所以這幾年我們在7萬多所學校校內場景的累積其實是一個長期的優勢，也是我們在接下來的幾季、幾年逐步發揮的效益。我們相信，我們實際上將在非常健康的獨特客戶獲取費用和相對穩定的成長率上實現成長，而無需依賴外部流量。

(Operator Instructions) Our next telephone question is from Sheng Zhong from Morgan Stanley.

（操作員指示） 我們的下一個電話問題是來自摩根士丹利的盛忠。

Actually, I asked my questions already, but if I may, I want to ask one question, one more question. Since you mentioned that your retention rates seen very strong improvement, so do you -- can you add some color on this perspective? What the retention rate for the students you have, their academic performance record and comparing with the normal ones?

事實上，我已經問了我的問題，但如果可以的話，我想問一個問題，再問一個問題。既然您提到您的保留率有了很大的提高，那麼您是否可以在這個角度上添加一些色彩？你們的學生的留任率、學業成績以及與正常學生的比較如何？

(foreign language)

（外語）

[Interpreted] Let me try to translate. So as we have shared earlier and also some of the investor has been communicating with us, we do experience customer acquisition expenses that is significantly lower than industry average and also at similar retention rates among the leading players. Therefore, we have -- we enjoy significantly better unit economics with much higher LTV versus CAC structures. But we also want to share that we do see stronger potentials of our renewal rates to improve further. As we shared earlier, that we have built a (foreign language) system where we utilized the in-school students learning and localized learning data information together with our after-school tutoring services.

[已翻譯] 我來試著翻譯。正如我們之前所分享的，以及一些投資者一直與我們溝通的那樣，我們確實經歷了客戶獲取費用明顯低於行業平均水平，並且領先企業的保留率也相似。因此，與 CAC 結構相比，我們享有更高的 LTV 和更高的單位經濟效益。但我們也想分享的是，我們確實看到我們的續約率有進一步提高的更大潛力。正如我們之前分享的，我們建立了一個（外語）系統，利用在校學生的學習和本地化學習數據資訊以及我們的課後輔導服務。

We believe vast majority of our potential students or our current students actually want to improve their grades in their in-school learning scenarios. That's why our in-school learning scenarios where we accumulate a lot of data in terms the academic assessments, homework data, what's the student mistakes and what's the local exam focus is, such insights allows us to be much more efficient in terms of helping the students to improve their learning results and to be more targeted. So I know people might be more -- this might be more obvious to the people where the integrated model allows us to enjoy a significantly lower customer acquisition expense, but actually in our mind, what's even more valuable and especially more valuable in the longer-term is that the localized content and data that it provides that allow us to actually providing a stronger and more efficient and effective after-school tutoring and learning products to the students.

我們相信絕大多數潛在學生或現有學生實際上希望在校內學習場景中提高成績。這就是為什麼我們在校內學習場景中累積了大量的數據，包括學業評估、作業數據、學生的錯誤是什麼以及當地考試的重點是什麼，這些見解使我們能夠更有效地幫助學生學生提高學習成績，更有針對性。所以我知道人們可能會更——這對人們來說可能更明顯，因為整合模型使我們能夠享受顯著降低的客戶獲取費用，但實際上在我們看來，什麼更有價值，尤其是從長遠來看更有價值——術語是它提供的在地化內容和數據，使我們能夠真正為學生提供更強大、更有效率、更有效的課後輔導和學習產品。

Our next telephone question is from Christine Cho from Goldman Sachs.

我們的下一個電話問題來自高盛的 Christine Cho。

Just -- I think we start to notice a lot more of your competitors actually starting to talk about localization as well as potentially exploring some offline customer acquisition channels. Can you highlight any product or R&D, some developments on that side over the last few months that you can highlight there?

只是 - 我認為我們開始注意到更多的競爭對手實際上開始談論本地化以及可能探索一些線下客戶獲取管道。您能否重點介紹過去幾個月您可以重點介紹的任何產品或研發以及這方面的一些進展？

(foreign language)

（外語）

[Interpreted] Let me translate what Andy has shared earlier. So the question was about more and more players are talking about localizations as well as trying to acquire students or -- from offline channels and what was our investments, especially in R&D products, in these aspects.

[解讀]我來翻譯Andy之前分享的內容。所以問題是越來越多的參與者正在談論本地化以及試圖從線下管道獲取學生，以及我們在這些方面的投資，特別是在研發產品方面的投資是什麼。

So I think this actually as well a trend where we have pioneered. If people -- if everyone remembers that even during last year's investor meetings, roadshows, we have already mentioned that we have already become the leading -- among the leading players who has the most number of localized textbook versions in terms of after-school tutoring courses as well as multiple levels of difficulties for online large classes. And this is what we have always been focused about too so that we can provide more targeted services.

所以我認為這其實也是我們開創的趨勢。如果人們——如果大家還記得的話，我們在去年的投資人會議、路演的時候就已經提到過，在課外輔導方面，我們已經成為了本土化教材版本數量最多的領先者之一。在線大班的課程以及多個難度等級。這也是我們一直在關注的，這樣我們才能提供更有針對性的服務。

However, what we believe, having multiple localized course versions and multiple difficulties are actually only the first steps. It has some value to the parents, but may not be as great because from a parent's perspective, they don't really know about look -- they don't really look -- see localized versions. What they really need is to have courses and services that's more targeted to helping them in solving the problems that they have seen from in-school and to help them get better prepared to face exams within the schools.

然而，我們認為，擁有多個在地化課程版本和多個難度實際上只是第一步。它對父母有一定的價值，但可能沒有那麼大，因為從父母的角度來看，他們並不真正了解外觀——他們並沒有真正看起來——看到本地化版本。他們真正需要的是更有針對性的課程和服務，幫助他們解決在學校遇到的問題，並幫助他們更好地準備面對學校的考試。

And this, to our perspective, 2 level of data of the highest value. The first is on school level, what's the -- or a district level, what's its exam focus is, teaching focus is and what's more likely to be tested. And secondly, on individual level, so what the person's own learning problem is, what's the strength and weaknesses, how you can be more targeted to providing our tutoring services. And this too is actually expect what we have particularly strong with our integrated model.

而這，在我們看來，2級數據的價值最高。第一個是學校層面，或地區層面，它的考試重點是什麼，教學重點是什麼，以及更有可能測試什麼。其次，在個人層面上，那麼這個人自己的學習問題是什麼，優勢和劣勢是什麼，如何更有針對性地提供我們的輔導服務。這實際上也是我們對我們的整合模型特別強大的期望。

To share with a number, more than 10 million students actually have took our academic assessments in 2020. This is consistent with the trend where the Chinese government is trying to use progress data instead of one final exams to evaluate how students are learning. This is a product and service where it's highly demanding in terms of -- those in terms of technology as well as expertise accumulation over the last few years.

告訴大家一個數字，2020年實際上有超過1000萬學生參加了我們的學業評估。這與中國政府嘗試使用進度數據而不是一次期末考來評估學生學習情況的趨勢是一致的。這是一種對技術以及過去幾年的專業知識累積要求很高的產品和服務。

Such large number of students attending assessments of our platform, more than 10 million of them, actually give us significant knowledge advantage in terms what the schools are likely to test, what's the exam focus. All such information will actually be imported into our (foreign language) system. This system will be used by our tutors so that they can be providing -- when they provide services to our students, it can be more targeted and organized, small tutoring sessions to talk about more localized, school-based and individual-based questions and complementing to the overall relatively general large classes.

如此多的學生參加我們平台的評估，超過 1000 萬，實際上為我們帶來了顯著的知識優勢，例如學校可能會測試什麼、考試重點是什麼。所有這些資訊實際上都會導入到我們的（外語）系統中。我們的導師將使用這個系統，以便他們在為我們的學生提供服務時，可以更有針對性和更有組織性，小型輔導課程來討論更多本地化的、基於學校和個人的問題，以及補充整體比較一般的大班。

In terms of the offline customer acquisitions, we do see this trend fairly early. As we've shared earlier, we believe all the players will be actually having a matrix of customer acquisition trends channels, both online and offline, as the customer acquisition expenses in the social platform are becoming increasing and increasingly more expensive.

就線下獲客而言，我們確實很早就看到了這一趨勢。正如我們之前所分享的，我們相信所有參與者實際上都會擁有一個線上和線下的客戶獲取趨勢管道矩陣，因為社交平台中的客戶獲取費用正在變得越來越高且越來越昂貴。

However, in terms of when you look at offline, we can still further dissect into multiple segments. You can -- first is offline but still outside the schools. This is not difficult and doesn't have much barriers at all, and that has what -- all the industry -- offline actually has been doing over the last few years. But the difficulty is that it's more difficult to scale out. It's not as scalable. You can do that, you have low customer acquisition expenses, but it will be difficult for our players to build such an offline structures within short time so that it can provide major growth.

但如果從線下來看，我們還可以進一步細分為多個部分。你可以——先離線，但仍在學校外面。這並不困難，也沒有太多障礙，而這正是線下所有行業在過去幾年裡實際上一直在做的事情。但困難在於橫向擴展更加困難。它的可擴展性不太好。你可以做到這一點，你的獲客費用很低，但我們的玩家很難在短時間內建立這樣的線下結構，從而能夠提供大幅增長。

Secondly is those that involves in-school scenarios. Even within the in-school scenarios, you have multiple growth paths. First is product-driven, in-school systems similar to us. This requires a much longer -- multiple years of investments, both in terms of products, contents, trust and relationship buildup within the schools and the students. This one we believe will be very difficult for others to replicate and build up in a short time.

其次是涉及學校場景的。即使在校內場景中，你也有多種成長路徑。首先是產品驅動的校內系統，與我們類似。這需要更長的時間——多年的投資，無論是在產品、內容、學校和學生內部的信任和關係建立方面。我們相信其他人很難在短時間內複製和建立這一點。

Others, what we have seen is more trying to do more efficient in terms of timing and one-off approach such as holding seminars within schools. This is similar to those that took place in outside schools. This is also something what offline institutions has been using for multiple years. It has some advantage in terms of costs, but it's more difficult to scale up.

另一些人，我們看到的是更多地嘗試在時間安排和一次性方法方面做得更有效率，例如在學校內舉辦研討會。這與在校外發生的情況類似。這也是線下機構多年來一直在使用的東西。它在成本方面有一定優勢，但規模化比較困難。

Our next telephone question is from Manik Mahajan from Freemont Capital.

我們的下一個電話問題來自 Freemont Capital 的 Manik Mahajan。

I just have one question, and that's around the ASP trend. So how should we think about the average selling price for the after-school tutoring courses going forward? And any color you can share on how it has been trending as per your expectations?

我只有一個問題，是關於 ASP 趨勢的。那麼，我們該如何看待未來課外補習課程的平均售價呢？您可以分享您所期望的任何顏色的流行趨勢嗎？

(foreign language)

（外語）

[Interpreted] So let me share my view of results first. In terms of ASP, I believe it's very likely that the average -- on an average basis, it is likely to grow at around 15% annual growth over the next few years. The reasons behind that is that if you look at the average price of the online large classes, it's around RMB 3,000 for the whole year. This is a price even highly acceptable and comfortable for students in Tier 3 and Tier 4 cities. This would account for around up to 10% of their annual income, even in Tier 3 and Tier 4 cities. We have also conducted several surveys. We believe this is fairly comfortable levels where they can accept.

[解讀]那麼我先分享一下我對結果的看法。就平均售價而言，我相信未來幾年的平均年增長率很可能在 15% 左右。原因是，如果你看線上大班的平均價格，全年都在3000元左右。這個價格對於三、四線城市的學生來說也是非常容易接受和舒適的。即使在三、四線城市，這也將佔他們年收入的 10% 左右。我們也進行了多項調查。我們相信這是他們可以接受的相當舒適的水平。

Second, in terms of the emphasis and focus on education as a whole and driven by the continuous product improvements of the industries. Indeed, the online large classes actually bringing much better and attractive instructors into lower-tier cities so that -- we believe it will actually drive continuous demand from even lower-tier cities.

二是對教育整體的重視與關注，以及產業產品不斷改進的帶動。事實上，線上大班實際上為低線城市帶來了更好、更有吸引力的教師，因此我們相信，這實際上將推動低線城市的持續需求。

Also, as for online large classes alternative to other formats, it also have significant price advantage compared to multiple other forms. So even with 15% annual price increase over, say, next 2 to 3, its price will still remain competitive.

另外，作為替代其他形式的線上大班，與其他多種形式相比也具有顯著的價格優勢。因此，即使未來 2 到 3 年價格每年上漲 15%，其價格仍將保持競爭力。

There are no more further questions at this time. I would like to hand the call back to the speakers for closing remarks. Please continue.

目前沒有更多問題。我想將電話轉回給發言者進行閉幕致詞。請繼續。

Thank you, operator. In closing, on behalf of 17EdTech's management team, we'd like to thank you for your participation on today's call. If you require any further information, feel free to reach out to us directly.

謝謝你，接線生。最後，我們謹代表 17EdTech 的管理團隊感謝您參加今天的電話會議。如果您需要任何進一步的信息，請隨時直接與我們聯繫。

Thank you for joining us today. This concludes the call.

感謝您今天加入我們。通話就此結束。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。]