17 Education & Technology Group Inc (YQ) 2025 Q1 法說會逐字稿

And good morning, ladies and gentlemen, and thank you for standing by for 17EdTech first-quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I'll now turn the meeting over to your host for today's call, Ms. Lara Zhao, 17EdTech Investor Relations Manager. Please proceed, Lara.

女士們、先生們，早安，感謝大家參加 17EdTech 2025 年第一季財報電話會議。此時，所有參與者都處於只聽模式。管理層準備好的發言之後，將有一個問答環節。提醒一下，今天的電話會議正在錄音。現在，我將會議交給今天的電話會議主持人，17EdTech 投資者關係經理 Lara Zhao 女士。請繼續，勞拉。

Thank you, operator. Hello, everyone, and thank you for joining us today. Our earnings release was distributed earlier today and is available on our IR website. Joining us today are Ms. Sishi Zhou, the Acting Chief Financial Officer, and myself, Investor Relations Manager. Sishi will walk you through our latest business performance and strategies, and I will discuss our financial performance in more details. After the prepared remarks, Sishi will be available to answer your questions during the Q&A session.

謝謝您，接線生。大家好，感謝大家今天加入我們。我們的收益報告已於今天早些時候發布，可在我們的 IR 網站上查閱。今天與我們一起參加會議的有代理財務長週思詩女士和我本人，投資者關係經理。Sishi 將向您介紹我們最新的業務表現和策略，我將更詳細地討論我們的財務表現。準備好發言後，Sishi 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 21E of the Securities Exchange Act of 1934 and the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions and relates to events that involve known, 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 achievements to differ materially.

在我們開始之前，我想提醒您，本次電話會議包含《1934 年證券交易法》第 21E 條和《1995 年美國私人證券訴訟改革法》所定義的前瞻性陳述。這些前瞻性陳述是基於管理層目前的預期和當前的市場和營運條件，涉及已知、未知的風險、不確定性和其他因素的事件，所有這些因素都難以預測，其中許多因素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、績效或成就產生重大差異。

Further information regarding these and other risks uncertainties or factors is included in the company's filings with the USADC. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise except as required under applicable laws.

有關這些和其他風險、不確定性或因素的更多資​​訊包含在公司向美國國家發展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。

I will now turn the call over to our Acting Chief Financial Officer to review some of our business development and strategic direction. Sishi, please go ahead.

現在，我將把電話轉給我們的代理財務官，以審查我們的一些業務發展和策略方向。西施，請說。

Thank you, Lara. Hello, everyone. Thank you all for joining us on our first-quarter 2025 earnings conference call. Before we begin, I would like to note that the financial information on the non-GAAP numbers in this release are presented on a continuing operation basis and in RMB unless otherwise stated. And let me begin with our latest business updates.

謝謝你，拉拉。大家好。感謝大家參加我們的 2025 年第一季財報電話會議。在我們開始之前，我想指出的是，本新聞稿中非公認會計準則 (non-GAAP) 財務資訊均按持續經營基礎並以人民幣列示，除非另有說明。首先讓我介紹一下我們最新的業務更新。

We're pleased to report a strong performance in the first quarter of 2025. This quarter has marked significant progress and innovation, particularly with the successful trial and implementation of our AI-powered product upgrades, facilitating teaching and learning efficiency by delivering intelligent adaptive solutions that enhance daily instructional decision-making, providing more personalized learning experiences for students.

我們很高興地報告 2025 年第一季的強勁業績。本季取得了重大進展和創新，特別是我們成功試用和實施了人工智慧產品升級，透過提供智慧自適應解決方案來提高教學效率，增強日常教學決策，為學生提供更個人化的學習體驗。

During the quarter, we have seen a strong growth in both new contract acquisitions and the expansion of our existing customer base. Our subscription business has risen as more schools and educational organizations recognize the value of our AI-powered solutions, showcased in strong retention rates and increased adoption of our value-added offerings.

本季度，我們的新合約收購和現有客戶群擴張均實現了強勁成長。隨著越來越多的學校和教育機構認識到我們人工智慧解決方案的價值，我們的訂閱業務也隨之增長，這體現在強勁的留存率和我們增值產品的採用率的提高。

In the first quarter of 2025, we recorded net revenues of RMB21.7 million, representing a 15% decrease from the previous quarter last year, which was primarily due to the reduction in net revenues from district level projects as we prioritize our resources on school-based projects on a subscription model, which generally have longer revenue recognition period.

2025年第一季度，我們實現淨收入2,170萬元人民幣，較去年上一季下降15%，主要由於我們將資源優先投放於採用訂閱模式的校本項目，導致區級項目淨收入減少，而這些項目的收入確認期通常較長。

As we improve operational efficiency, operation expenses reduced by 42.6% compared to the same quarter last year, resulting in a 44.8% reduction in net loss on a GAAP basis. Looking ahead, we will remain vigilant in monitoring our financial performance and making strategic decisions to ensure a long-term success and sustainability of our business. And now, let me go into more details.

由於我們提高營運效率，營運費用與去年同期相比減少了 42.6%，導致以 GAAP 計算的淨虧損減少了 44.8%。展望未來，我們將繼續保持警惕，監控我們的財務表現並做出策略決策，以確保我們業務的長期成功和永續性。現在，讓我來詳細介紹一下。

During the quarter, our district-level teaching and learning class business remains steady, continuously contributing an important portion in revenue recognition. Recently, we successfully supported Shanghai Minhang District to launch a specialized generative intelligent agent cluster and demonstrated it at the Shanghai Education Expo. The intelligent agent integrates universal large language models, leverage vast real-time teaching and learning database in Minhang district, and integrating with the localized knowledge system, aiming to provide precise contextualized support for learners and educators so that we can transform education services from knowledge transmission to competency development.

本季度，我們的區級教學班業務保持穩定，並持續為收入確認貢獻重要份額。近期，我們成功支持上海市閔行區啟動專門的生成智能體集群，並在上海教育博覽會上進行了展示。此智慧代理整合通用大型語言模型，利用閔行區龐大的即時教學資料庫，並與在地化知識體系相結合，旨在為學習者和教育者提供精準的情境化支持，使教育服務從知識傳遞轉向能力培養。

And following the successful launch of the new AI-powered solution in Shanghai Minhang, we are confident that this offering will expand to other regions and serve as a model for potential partners pursuing transformative learning technologies. This initiative demonstrates our expertise in educational innovation by delivering adaptable high-value AI-powered solutions that enhance daily instructional decision-making, improve teaching and learning efficiency, and promote high-quality regional education development.

隨著新的人工智慧解決方案在上海閔行成功推出，我們相信該產品將擴展到其他地區，並成為追求變革性學習技術的潛在合作夥伴的典範。該計劃展示了我們在教育創新方面的專業知識，透過提供適應性強的高價值人工智慧解決方案，增強日常教學決策，提高教學效率，促進高品質的區域教育發展。

And our school-based subscription business has sustained a steady growth driven by a year-over-year increase in newly subscribed students. This momentum underscores its strategic importance as a critical contributor and integral component of our overall revenue, which will continue to prioritize resource allocation.

我們的校本訂閱業務持續保持穩定成長，這得益於新訂閱學生數量的同比增長。這一勢頭凸顯了其作為我們整體收入的重要貢獻者和組成部分的戰略重要性，我們將繼續優先考慮資源配置。

And during the quarter, we have seen heightened demands and enthusiasm for our offerings in our partner schools reflecting in a higher retention rate and increased adoption of our expendable value-added services. Over 90% of renewal customers opted to continue their subscriptions, with many expanding their service coverage. This strong retention and upstanding potential not only reinforce customer engagement and the loyalty but also safeguards the business for long-term sustainable growth.

在本季度，我們看到合作學校對我們產品的需求和熱情有所提高，這反映在更高的保留率和對我們可消耗的增值服務採用率的提高。超過 90% 的續訂客戶選擇繼續訂閱，其中許多客戶擴大了服務範圍。這種強大的留任和持續潛力不僅加強了客戶參與度和忠誠度，而且還保障了業務的長期永續成長。

And as for our product and service offerings have been continuously upgraded with innovation driving customer satisfaction and business growth by integrating AI into core teaching and learning scenarios, including lesson planning, in-class interaction, assignment design, automated grading, data-driven analysis, and the personalized learning recommendations. We aim to streamline teachers' workflows, empowering them with evidence-based decisions, and individual -- individualized learning path for each student.

我們的產品和服務不斷升級，創新推動客戶滿意度和業務成長，將人工智慧融入核心教學場景，包括課程規劃、課堂互動、作業設計、自動評分、數據驅動分析和個人化學習建議。我們的目標是簡化教師的工作流程，使他們能夠做出基於證據的決策，並為每個學生提供個人化的學習路徑。

Specifically, our intelligent voice and the classroom monitoring functions are expected to boost classroom efficiency. As smart companion for teachers, it helps teachers understand students' thinking process and learning states while providing teaching research report -- support. Teachers can interact with the smart assistants in real time, analyzing multi-dimensional data such as students' response time, thinking patterns, as well as learning trajectories, identifying group and individual differences with (inaudible) learning analytics so that evidence-based teaching decisions can be made.

具體來說，我們的智慧語音和課堂監控功能有望提高課堂效率。作為教師的智慧伴侶，幫助教師了解學生的思考過程和學習狀態，並提供教學研究報告支援。教師可與智慧助理即時互動，分析學生的反應時間、思考模式、學習軌跡等多維數據，透過（聽不清楚）學習分析辨識群體和個別差異，從而做出以證據為基礎的教學決策。

Our intelligence solutions can customize classroom exercises and after-school assignments for students based on personalized learning conditions, automatically grade them and generate some dynamic error correction notebooks and provide customized problem-solving ideas and follow up teaching suggestions. These advancements reduce teachers' workloads while enhancing students' learning efficiency and achievement.

我們的智慧解決方案可以根據學生個人化的學習情況，為學生量身訂做課堂練習和課後作業，自動評分並產生一些動態的糾錯筆記本，並提供客製化的解題想法和後續教學建議。這些進步減輕了教師的工作量，同時提高了學生的學習效率和成績。

To date, we have conducted trials in over 50 schools, providing teaching administrators with the data-driven management tools covering the entire teaching scenario, as well as demonstrating scalable replication potentials of this model. And in terms of distribution channels, our multi-channel marketing efforts and a strategic partnerships have further solidified our presence in high growth markets.

目前，我們已經在50多所學校進行了試點，為教學管理者提供了涵蓋全教學場景的資料化管理工具，並展示了該模式的可擴展複製潛力。在分銷管道方面，我們的多通路行銷努力和策略合作夥伴關係進一步鞏固了我們在高成長市場中的地位。

We have consistently prioritized strategic market penetration by diversifying our distribution methods and fostering collaboration. By aligning product development with emerging educational trends and enhancing our distribution networks, we have improved product delivery and customer engagement, leverage data analytics for targeted marketing and the deeper customer insights.

我們始終透過多樣化分銷方式和促進合作來優先考慮策略市場滲透。透過將產品開發與新興教育趨勢相結合並增強我們的分銷網絡，我們改善了產品交付和客戶參與度，利用數據分析進行有針對性的營銷並獲得更深入的客戶洞察。

And now, I will return the call over to Lara to walk you through our latest financial performance. Thank you.

現在，我將回電給 Lara，向你們介紹我們最新的財務表現。謝謝。

Thanks, Sishi, 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 talked about will be presented in the RMB terms. I would like to remind you that the quarterly results we present here should be taken with care and reference to our potential future performance are subject to potential impacts from seasonality and one-off events as a result of the series of regulations introduced in 2021 and corresponding adjustment to our business model, organization, and workforce.

謝謝 Sishi，也謝謝大家參加電話會議。現在我將向大家介紹我們的財務和經營績效。請注意，我談到的所有財務數據都將以人民幣計算。我想提醒您，我們在此呈現的季度業績應謹慎對待，並參考我們未來的潛在表現，這些表現可能受到季節性和一次性事件的影響，這是由於 2021 年推出的一系列法規以及對我們的業務模式、組織和員工隊伍的相應調整造成的。

In the first quarter of 2025, we recorded net revenues of RMB21.7 million compared with RMB25.5 million in the first quarter of 2024, representing a 15% decrease on year-on-year basis, which was primarily due to the reduction in net revenues from district level projects as we prioritize our resources on school-based projects and their subscription model, which generally have longer revenue recognition period.

2025年第一季度，我們的淨收入為人民幣2,170萬元，而2024年第一季為人民幣2,550萬元，年減15％。這主要是由於我們將資源優先用於學校計畫及其訂閱模式，導致區級計畫的淨收入減少，這些計畫的收入確認期通常較長。

Gross margin for the first quarter of 2025 was 36.2% compared with 38.4% in the first quarter of 2024. Net loss on GAAP basis for the first quarter of 2025 was RMB30.9 million compared with RMB56.1 million in the first quarter of 2024, representing a decrease of 44.8% year on year. The adjusted net loss non-GAAP for the first quarter of 2025 was RMB22.4 million compared with adjusting net loss non-GAAP of RMB42.7 million in the first quarter of 2024, a decrease of 47.5% year on year.

2025 年第一季的毛利率為 36.2%，而 2024 年第一季的毛利率為 38.4%。2025年第一季以美國通用會計準則計算的淨虧損為人民幣3,090萬元，而2024年第一季為人民幣5,610萬元，較去年同期減少44.8%。2025年第一季調整後非美國通用會計準則淨虧損為2,240萬元人民幣，較2024年第一季調整後非美國通用會計準則淨虧損4,270萬元人民幣，年減47.5%。

As of March 31, 2025, we have cash reserves of RMB333.3 million on our balance sheet compared with RMB359.3 million as of December 31st, 2024. Next, I will go through our first quarter financials in greater detail.

截至 2025 年 3 月 31 日，我們的資產負債表上的現金儲備為人民幣 3.333 億元，而截至 2024 年 12 月 31 日為人民幣 3.593 億元。接下來，我將更詳細地介紹我們第一季的財務狀況。

Net revenues. Net revenues for the first quarter of 2025 were on the RMB21.7 million, representing a year-over-year decrease of 15.0% from RMB25.5 million in the first quarter of 2024. This was mainly due to the reduction in net revenues from the district level projects as we prioritize our resources on school-based projects and the increasing number of contracts and the subscription model, which requires a longer period of revenue recognition.

淨收入。2025年第一季淨收入為人民幣2,170萬元，較2024年第一季的人民幣2,550萬元年減15.0%。主要是由於我們將資源優先用於學校項目，導致區級項目淨收入減少，且合約數量增加，以及訂閱模式需要更長的收入確認期。

Cost of revenue. Cost of revenues for the first quarter of 2025 was RMB13.8 million, representing a year-over-year decrease of 11.9% from RMB15.7 million in the first quarter of 2024, which was largely in line with the decrease of net revenues during the quarter. Gross profit for the first quarter of 2025 was RMB7.8 million compared with RMB9.8 million in the first quarter of 2024. Gross margin for the first quarter of 2025 was 36.2% compared with 38.4% in the first quarter of 2024.

收入成本。2025年第一季的營業成本為人民幣1,380萬元，較2024年第一季的人民幣1,570萬元年減11.9%，與本季淨收入的降幅基本一致。2025年第一季毛利為人民幣780萬元，而2024年第一季為人民幣980萬元。2025 年第一季的毛利率為 36.2%，而 2024 年第一季的毛利率為 38.4%。

Total operating expenses for the first quarter of 2025 was RMB41.7 million, including RMB8.5 million of share-based compensation expenses, representing the year-over-year decrease of 42.6% from RMB72.7 million in the first quarter of 2024. Loss from operations for the first quarter of 2025 was RMB33.9 million compared with RMB62.9 million in the first quarter of 2024. Loss from operations the percentage of net revenues for the first quarter of 2025 was negative 156.3% compared with negative 246.7% in the first quarter of 2024.

2025年第一季總營運費用為人民幣4,170萬元，包括股權激勵費用人民幣850萬元，較2024年第一季的人民幣7,270萬元年減42.6%。2025 年第一季營業虧損為 3,390 萬元，而 2024 年第一季營業虧損為 6,290 萬元。2025 年第一季營業虧損佔淨收入的百分比為負 156.3%，而 2024 年第一季為負 246.7%。

Net loss for the first quarter of 2025 was RMB30.9 million compared with the net loss of RMB56.1 million in the first quarter of 2024. Net loss as the percentage of net revenues was negative 142.8% in the first quarter of 2025 compared with negative 219.9% in the first quarter of 2024. Adjusted net loss non-GAAP for the first quarter of 2025 was RMB22.4 million compared with adjusted net loss non- GAAP of RMB42.7 million in the first quarter of 2024. Adjusted net lost non-GAAP as the percentage of net revenues was negative 103.4% in the first quarter of 2025 compared with negative 167.4% of the adjusted net loss non-GAAP as a percentage of net revenues in the first quarter of 2024.

2025年第一季淨虧損為人民幣3,090萬元，而2024年第一季淨虧損為人民幣5,610萬元。2025 年第一季淨虧損佔淨收入的百分比為負 142.8%，而 2024 年第一季為負 219.9%。2025年第一季非美國通用會計準則調整後淨虧損為人民幣2,240萬元，而2024年第一季非美國通用會計準則調整後淨虧損為人民幣4,270萬元。2025 年第一季調整後非 GAAP 淨虧損佔淨收入的百分比為-103.4%，而 2024 年第一季調整後非 GAAP 淨虧損佔淨收入的百分比為-167.4%。

Please refer to the table caption reconciliation of non-GAAP measures to the most comparable GAAP measures at the end of this press release for the reconciliation of net loss and the US GAAP to adjusted net loss non-GAAP.

請參閱本新聞稿末尾的表格標題“非 GAAP 指標與最可比較 GAAP 指標的調整”，以了解淨虧損與美國 GAAP 和調整後淨虧損非 GAAP 的調整情況。

Cash and cash equivalents, restricted cash and term deposits. Cash and cash equivalents, restricted cash and term deposits were RMB333.3 million equals $45.9 million as of March 31, 2025, compared with RMB359.3 million as of December 31, 2024.

現金和現金等價物、受限現金和定期存款。截至 2025 年 3 月 31 日，現金及現金等價物、限制性現金及定期存款為人民幣 3.333 億元（約合 4,590 萬美元），而截至 2024 年 12 月 31 日為人民幣 3.593 億元。

Next, I'd like to share a brief update from the Board -- from our Board. We warmly welcome Mr. Gui Jia as an Independent Director and a member of Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee of the Board. Mr. Jia has extensive experiences in fintech and education sectors, and we are confident that his insights will further strengthen 17EdTech strategic direction, governance, and operations.

接下來，我想分享董事會（我們董事會）的簡短最新消息。我們熱烈歡迎桂嘉先生擔任獨立董事以及董事會審計委員會、薪酬委員會、提名和公司治理委員會成員。賈先生在金融科技和教育領域擁有豐富的經驗，我們相信他的見解將進一步加強17EdTech的策略方向、治理和營運。

We also extend our sincere gratitude to Mr. Xiao Weigang for his outstanding service and invaluable contributions as he retires. Additionally, Mr. Michael Chao Du has resigned as Director and Chief Financial Officer, and the company announced appointing Ms. Sishi Zhou as our Acting Chief Financial Officer. Ms. Zhou joined the company in December 20, 2020, and has served as Financial Director since June 2022, overseeing the company's overall financial operations, including financial reporting, business analysis, and strategies and strategy team.

值此肖偉剛先生退休之際，我們也向他的傑出服務和寶貴貢獻表示誠摯的感謝。此外，杜超先生已辭去董事兼財務長職務，公司宣布任命週思詩女士為代理財務長。週女士於2020年12月20日加入公司，自2022年6月起擔任財務總監，負責監督公司整體財務運營，包括財務報告、業務分析以及策略和策略團隊。

Ms. Zhou brings extensive financial expertise and has held advisory roles at several multinational companies, as well as senior auditor at PWC Zhong Tian CPA LLP. She received the dual bachelor's degrees in accounting and law from Tsinghua University in 2011 and her MBA from Peking University's Guanghua School of Management in 2023.

週女士擁有豐富的金融專業知識，曾在多家跨國公司擔任顧問，並擔任普華永道中天會計師事務所的高級審計師。她於2011年獲得清華大學會計和法學雙學士學位，2023年獲得北京大學光華管理學院工商管理碩士學位。

We welcome Mr. Jia and Ms. Zhou to the leadership team. Their joint expertise will be instrumental as we drive forward to our next growth phase. We also sincerely thank you -- thank Mr. Michael Chao Du and Mr. Xiao Weigang for their invaluable contributions during their tenure with the company.

我們歡迎賈先生和周女士加入領導團隊。他們的共同專業知識將有助於我們邁向下一階段的成長。我們也衷心感謝──感謝杜超先生和肖偉剛先生在公司任職期間所做的寶貴貢獻。

Moving forward, 17EdTech will take AI-driven educational innovation as its core focus, deeply integrating AI plus education to actively align with the national strategy for the educational digital transformation and upgrading. The company remains in its commitment to enriching learning experiences while upholding the mission of making learning a wonderful experience, centered on delivering efficient high-quality educational products and solutions. We aim to maintain growth momentum, enhance operational efficiency and steadily drive long-term, stable and sustainable development.

未來，17EdTech將以AI驅動教育創新為核心，深度融合AI+教育，積極對接國家教育數位轉型升級策略。本公司始終致力於豐富學習體驗，同時秉承讓學習成為美好體驗的使命，專注於提供高效優質的教育產品和解決方案。我們的目標是維持成長勢頭，提升營運效率，穩步推動長期、穩定和永續發展。

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

我們的準備好的演講到此結束。謝謝。接線員，我們現在可以開始問答環節了。

(Operator Instructions)

（操作員指示）

I'm showing no questions. I'll now turn the conference back to Miss Lara Zhao for closing comments.

我沒有提出任何問題。現在我將會議交還給 Lara Zhao 女士，請她發表最後評論。

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, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call.

謝謝您，接線生。最後，我謹代表 17EdTech 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。感謝您今天加入我們。通話到此結束。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your line.

感謝大家參加今天的會議。該計劃確實就此結束。現在您可以斷開線路了。