51Talk Online Education Group

Ladies and gentlemen, thank you for standing by for China Online Education Group's second quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Ni Yan, investor relations for the company. Please go ahead, Ni.

Hello, everyone, and welcome to the second quarter 2022 Earnings Conference Call of China Online Education Group, also known as 5M Talk. The company's results were issued via Newswire services earlier today and are posted online. You can download the earnings press release and sign up for the company's distribution list by visiting the IR section of our website at ir5mtalk.com. Mr. Jack Huang, our chief executive officer, and Mr. Ming Xu, our chief financial officer, will begin with some prepared remarks. Following the prepared remarks, there will be a Q&A session. Before we continue, please know that the session will contain forward-looking statements made under the Steve Harper provision of the U.S. Private Securities Limitation 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 this and other risks and uncertainties is included in the company's Form 20-F and other public filings as filed 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 the applicable law. Please also note that the online press release and its conference call include discussion of unaudited gap financial information, as well as unaudited non-gap financial matters. Five Untalked press releases contain a reconciliation of the unaudited non-gap matters to the audited most directly comparable gap matters. I will now turn the call over to our CEO, Jack Huang. Please go ahead.

Thank you. Hello, everyone. Thank you for joining our conference call today. In the second quarter of 2022, we successfully completed the divestiture of our China mainland business, and we are solely focused on our overseas business going forward. Starting from the third quarter, 100% of the company's revenues will be derived from overseas markets. Furthermore, to reflect our overseas focus, we will hold an annual general meeting on September 30th to vote on the proposal of changing our legal name from China Online Education Group to Five One Talk Online Education Group. We are very excited to report another quarter marked by continuing top-line growth of our overseas business. In the second quarter, our overseas business continues to see healthy and sustainable development. Our second quarter overseas business net the gross billing reached $7.8 million, representing 46.5% sequential growth. The number of our 10 students reached 8.1,000, representing 25% sequential growth. And the number of our active students with attended lesson consumption reached 40.9,000, representing a 60% sequential growth in the second quarter. In addition, our overseas business achieved breakeven in cash flow during the two months of May and June. This reflects our strong execution of healthy growth strategy in overseas business, and we are looking forward to the future performance of cash flow. We are sorry to announce that our CFO, Mr. Ming Xu, submitted his resignation for today for personal reasons, and his last day will be September 30, 2022. Our VP of Finance, Ms. Cindy Chen Tang, will assume the role of CFO on October 1, 2022. On behalf of the Board of Directors and myself, I would like to thank Moon for his service over the past four years, leading our company to profitability by focusing on sustainable growth. We wish him the best in his future endeavors. With that, I will now turn the call over to Moon.