Here Group Limited

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to QuantaSing's earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note that today's event is being recorded. I will now turn the conference over to Ms. Leah Guo, Investor Relations Associate Director of the company. Please go ahead, ma'am.

Thank you. Hello, everyone, and welcome to CornerStream's earlier call for the third quarter of fiscal year 2023. With us today are Mr. Peng Li, our founder, chairman, and CEO, and Mr. Tim Hsieh, our CFO. Mr. Li will give a general business overview for the quarter, and then Tim will discuss the financials in more detail. Following their prepared remarks, Mr. Li and Tim will be available for the Q&A session. I will translate for Mr. Li. You can refer to our third fiscal quarter financial results on our IR website at ir.quantasim.com. You can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion. Before we continue, I would like to refer you to our safe harbor statement in our earnings price release, which also applies to this call. As we will be making forward-looking statements, please note that all numbers stated in the following management prepared remarks are in RIB terms and we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filings with the FDEC. I will now turn the call over to the CEO and founder of QuantaSync, Mr. Li.

Okay, thank you everyone for attending this meeting. I'm Peng Li, the founder and CEO of the company. Our commitment to our mission of improving people's quality of life through interest-based learning led to positive results in the third fiscal quarter of 2023. With strong pipeline visibility, diversified revenue streams, and an expensive addressable market, we were able to maintain our revenue growth under profitability path. During the quarter, we recorded 16.8% year-over-year revenue growth and an adjusted net income of 21.7 million RMB. This marks our second profitable quarter in a row. Our strong pipeline visibility is shown by our registered user growth As of March 31, 2023, we had around 86.3 million registered users. This is a 76.5% increase from the previous year. This number of paying learners grew 45.4% year-over-year to approximately 0.4 million. Our focus on agile, scalable business models have allowed us to rapidly expand our cost offerings and attract a large and growing user base. Since August 2021, we have ventured into offering learning courses tailored to personal interests, a strategic move that has garnered constant repeat purchase. We are especially delighted by the results of this quarter, and our diverse and engaging courses have generated an impressive 11% repeat purchase rate. This figure has been steadily growing since the launch of our personal interest branch. We have developed various ways to ensure customer loyalty and encourage repeat purchase. We do this by providing a high-quality and engaging experience for our learners. Our dual-instructure model of live streaming and community building combines practical exercises, one-on-one coaching, pre-recorded lectures, and supplemental Q&A live courses. These features enhance the joy and effectiveness of learning by fostering interaction and communication between instructors and learners. We follow the principle of service-driven excellence to ensure that learners receive the best possible value from our courses. Our courses are customized to our learners' specific needs. With a focus on developing their skills and abilities, we also provide other courses that offer professional value-added services. This allows our learners to apply what they have learned in practical settings. Our user centered courses and service provision are subject to a stringent review process. This process involves careful selection of our tutors and instructors, training and service standards. Our repeat purchase rates provides us with excellent visibility into our sales pipeline. As such, we are able to focus the revenue and manage our budgets with greater accuracy. Our commitment to diversified revenue streams has been a critical factor in our growth trajectory. By offering a wide range of services to both individuals and enterprises, we have been able to meet the needs of learners from diverse backgrounds and tap into various markets and revenue streams. We remain dedicated to addressing the dynamic demands of the business landscape. And we have been developing our enterprise-oriented services accordingly. This is exemplified by our Trainer Training Cap, or TTT Cap, led by experienced internal training specialists. This comprehensive course empowers novice trainers with essential skills across a wide range of modules. Topics include course development, activity design, presentation skills, and mastery of training knowledge. Participants and hands-on experience in creating materials, designing activities, delivering impactful presentations, building expertise, and enhancing the overall training experience. In adding to our TTT camp, our expanding field of enterprise-oriented services is equipping businesses with the necessary tools and training to optimize talent management and development. By extending our service offerings to enterprises, we position ourselves as a two-sided service provider. Our solution addresses the needs of both individuals and enterprises. This strategy reaffirms our commitment to delivering unmatched value and fostering enduring success with the corporate sector. Moreover, our targeted approach to cost offerings provides exceptional value to our learners while maximizing our revenues. During the third fiscal quarter, revenue from other personal interest causes grew to 238 million RMB, contributing 29.5% of our total revenues. We continuously introduced high-quality, pure lean, accessible content that resonates with our users. Our courses help people expand their horizons, enrich their lives, and achieve self-fulfillment. Through strategic course development, we address in-demand topics and capitalize on higher profit margins. Expanding our reach and seeding new opportunities for revenue growth, these efforts reflect our ongoing commitment to empowering learners and help them strive in our changing world. Take the example of a retired man in Harbin who found joy in learning calligraphy through our platform. he finally had the time and the opportunity to pursue his passion. Calligraphy not only brought him happiness and satisfaction, but also improved his hand-eye coordination. We are thrilled that our interest-based learning courses give him the opportunity to reach his goals and better his life. Another example is a 54-year-old homemaker who discovered our memory training course and improved her memory through regular practice. Our instructor's unique and engaging lecture style, combined with regular reviews, made the learning experience enjoyable and informative. impressed her gratitude for the useful course, which has improved her self-confidence. She also praised the online learning atmosphere, which helped make the experience positive and impacting. Finally, we have the empowering story of a man who leads a fulfilled life. owning a Taobao bookstore and a beauty store. Recently, he decided to try making short videos. To learn about video editing, he turned to our Jiang Zheng platform and quickly acquired the skills needed for his new interest. He then created videos inspired by the characters from the TV series Game of the Red Chamber. The content is original and innovative, and reflects his personality and interests, which helps him to expand his follower base, and he is now able to share his creations with a wider audience. We are proud that our accessible and diversified learning resources can empower individuals to pursue their passions and achieve their dreams. At Coffeesing, we are committed to create a vibrant community that fosters collaboration collaboration, and interaction among our learners. Our courses offer top quality content and encourage engagement and participation. As well as our online offerings, we host a range of offline activities such as workshops, meetups, and networking events. One such event that we recently hosted was the Memory Challenge on March 25. The event was followed by thousands of people, and around 1,000 registered to take part. From these applications, 30 people were selected to participate in these offline finals. The finalists had the opportunity to engage with the International Master of Memory, our memory instructors and the memory experts. It was an exciting and engaging event that showcased our commitment to building a strong community and promoting lifelong learning. In February 2023, we launched a self-training program for paying users of our advanced short video courses. The program is the industry's first of its kind closed-loop learning model based on the knowledge practice application circle. It provides learners with product selection assistance and further facilitate the practical application of knowledge by our learners. In an aging society like China, there is a significant market demand for the senior citizen learning. According to the WHO, the percentage of people in China aged 60 or above is expected to rise from 18.7% in 2020 to 28% in 2040. This will create a huge opportunity for us to help seniors embrace lifelong learning. Our Chen Chen and Jiang Zhen platforms provide user-friendly, interest-based learning resources that benefit senior learners. Our courses provide opportunities for learners to build self-confidence and self-esteem through social connection. As a result, our senior learners can develop a greater sense of belonging and fulfillment. In addition, our diversified course content allows users to access learning materials in different fields and expand their horizons. This can help people develop self-sufficiency skills, which they can then apply to other areas of their lives. As we continue to serve this growing market, we are confident that we can create value for both our learners and the shareholders. This will position us for continued success in this market. To summarize, we have sustained our revenue growth while efficiently controlling costs to boost our path to profitability and improve our cash flow. Our continuous efforts in optimizing our cost structure have begun to bear fruit. This is evident for our two consecutive quarters of positive adjusted net income. with our innovative cost offerings and focus on user engagement. Along with our steadfast dedication to financial prudence, we are confident in our ability to strive. We are excited about the huge opportunities ahead and look forward to delivering value to our shareholders in the long run. With that, I will turn the call over to Tim to discuss the details of our financials. Thank you all.