51Talk Online Education Group

Hello, ladies and gentlemen. Thank you for standing by for China Online Education Group's first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Joyce Lee, Investor Relations for the company. Please go ahead, Joyce.

Hello, everyone, and welcome to the first quarter 2021 earnings conference call of China Online Education Group, also known as 5.1 Talk. The company's results were issued via newsware services earlier today and are posted online. You can download the earnings price release and sign up for the company's distribution list by visiting the IR section of our website at ir.51talk.com. Mr. Jack Huang, our Chief Executive Officer, and Mr. Min Xi, our Chief Financial Officer, will begin with some prepared remarks. Following the prepared remarks, Mr. Li Min Zhang, our Chief Operating Officer, will also join the call for our Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Legitimacy Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's Form 20-F and other public filings as filled with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under abdicable law. Please also note that 5.1 TOCS Earnings Price Release and its conference call include discussion of end-audit GAAP financial information, as well as end-audit non-GAAP financial measures. 5.1 TOCS Price Release contains a reconciliation of the end-audit non-GAAP measures to the end-audit most directly comparable GAAP measures. I will now turn the call over to our CEO, Jack Huang. Please go ahead.

OK. Hello, everyone. Thank you for joining our conference call. We are happy to report another solid quarter as the first quarter net revenues exceeded 600 million RMB, a 23.3% year-over-year increase that once again beat the top end of our guidance. Remarkably, our net revenues from K-12 101 mass market offerings grew 36% compared to first quarter last year. This performance was mainly driven by an increase in active students, which rose 37% year over year. These results illustrate the massive opportunity that exists in K-12 mass market with the growing acceptance of online education. In addition to organic growth, through our existing strategies. We have also been pursuing external opportunities with our recent acquisition of Koala Reading. We are leveraging its expertise in Chinese reading assessments and the plan to further establish a trailblazing English reading skill evaluation system that allows us to improve our product offerings. Furthermore, this acquisition widens our course offerings with additional Chinese courses, which is in line with the long-term strategy of expanding our curriculum portfolio, along with our efforts in enhancing teacher operations, optimizing curriculums, and advancing AI-powered robotic tutors. The acquisition of Koala Reading is a testament to our commitment in providing the best learning experience to our students. In order to solidify our leadership in K-12 mass market English education, we are focused on wrapping our market efforts and improving student satisfaction, while also investing in research and upgrading course offerings. We are excited to announce the appointment of Ms. Meng Mendoza as our latest Brand Ambassador and the Five One Talk guest teacher. Meng Mendoza is a well-known Filipino actress and a social media influencer. Her appointment instantly became the most treated event in the Philippines, first strengthening our brand recognition in the country. I look forward to continuing to execute our mission to generate long-term benefits to all stakeholders. With that, I will now turn the call to our CFO, Ximing.