Here Group Limited

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Qantas Things Earnings Conference Call. At this time, all participants are in 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 now turn the conference over to Ms. Leah Guo, Investor Relations Associate Director of the company. Please go ahead, ma'am.

Qantas Things Earnings Thank you. Hello, everyone, and welcome to QuantumScience Earnings Call for the fourth quarter and fiscal year 2023. With us today are Mr. Peng Li, our founder, chairman, and CEO, and Mr. Tim Xie, our CFO. Mr. Li will give a general business overview for the quarter, then Tim will discuss the financials in more detail. Following their prepared remarks, Mr. Li and Tim will be available for the QA session. I will translate for Mr. Li. You can refer to our full fiscal quarter financial results on our IR website at ir.quantusin.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 press 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 IMB 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 SEC. I will now turn the call over to the CEO and founder of QuantumSync, Mr. Li.

Okay. Hello, everyone, and thank you all for joining us today. Despite the challenges presented by the current state of China's economy, we found ourselves well-placed to benefit from new opportunities in the adult learning market. While the fourth quarter of our fiscal year is usually a period of moderation, we recorded an impressive 31.7% year-over-year growth in revenue from the same period last year. Additionally, our adjusted net margin has improved significantly, reaching 10.9% compared to 0.7% during the same period last year. Our success has fueled by our robust pipeline visibility, diverse revenue streams, and an effective strategy approach. I would now like to reflect on our recent success and broader performance and share some operational updates. As of June 30, 2023, we had around 94.3 million registered users, representing a significant increase of 50.6 percent compared to the previous year. The number of paying learners rose as well, increasing by 29.9 percent compared to the previous year. Our focus on flexible and scalable business models has allowed us to quickly add more costs. This in turn attracts more users and fosters constant growth. We offer a diverse array of courses, each thoughtfully tailored to our distinct customer groups. For instance, for our financial literacy content, we offer accessible courses that guide beginners through topics such as asset management and achieving stable returns. Our learners can further explore specialized courses like financial analysis and family asset allocation. We diligently update and enhance our courses to align with shifts in industry policies. This ensures our learners have access to the most up-to-date market insights. Our focus on improvement has led to better customer experience. Thanks to our operational enhancement, our user survey shows that our financial literacy cost completion rate now stands at an impressive 97%. We are constantly updating our intelligence learning tools to act as a learning companion for our users. These tools use engaging AI interactions to assist the users in pulling key financial metrics from financial statements. During the first quarter, we once again co-authorized the financial literacy white books with industry experts and authoritative organizations in China. This was our 30th year doing so. The white book faces the financial literacy of Chinese residents across various demographics. This research serves as a guiding light for the institution seeking to expand financial learning across the nation. Our participation reflects our standing in the realm of financial literacy. We take immense pride in our contribution and are eager to help enhance financial literacy levels within society. Beyond our financial literacy efforts, We have also taken steps to boost user engagement and enhance our online cost repurchase reach. During the fourth quarter, we organized a series of offline competitions. One such event was a calligraphy competition targeted at senior adults. applied what they learned from our courses, showcasing their learning outcomes while enjoying face-to-face interactions with fellow learners. The participants created around 400 calligraphy works during the competition. To determine a winner, we engaged our broader community in the voting process. This type of offline event motivates learners to stick with their studies. It also encourages them to invite friends to join our courses. We believe that this offline competition helps foster a technic sense of community among our learners. We see them as both means of promoting courses and as a way to build community. As a part of our growth strategy, we are eager to bring our customers new opportunities for learning. One core part of this strategy is the creation of new personal interest courses. These courses are carefully designed to meet a diverse range of interests and tap into unrealized market potential. They help to enhance our appeal and boost engagement levels. Furthermore, the repeat purchase rate for other personal interest causes has risen to 18%. By refining our cost offerings, We enable learners to complete an in-depth learning circle on our platform. For instance, in our short video production course, we guide learners through the entire creation process. This encompasses subject selection, clip editing, content creation, and even using short videos to promote products on the live streaming platforms. In a similar way, we have fine-tuned the content of our memory courses to be more practical instead of theoretical. This empowers learners to apply their knowledge in real-life situations Ultimately, this leads to a more fulfilling learning experience. Meanwhile, our draft goal market remains extensive. As outlined in Frost and Sullivan's industry report on the adult learning market in China released on September 6, 2023, the Frost and Sullivan report affirms the significant market demand for senior citizen education. According to the report, the size of the senior adult learning market, as measured by revenue, is expected to reach RMB 120.9 billion by 2027. This estimate assumes CAGR of 34% from 2022 to 2027. We are well positioned to cater to this demographic. Many of our thoughtfully designed courses address the specific needs and interests of senior learners. As always, we remain committed to creating inclusive and accessible learning opportunities for people of all ages. Our courses aimed at senior citizens are specially crafted to bring them valuable knowledge and skills. This helps provide a sense of enrichment and foster a feeling of continued growth and success. We are actively building new carpets that cater to the interests of older learners. For example, we have developed a course on standing meditation, a traditional practice that combines fitness, strength, and inner peace. Our program emphasizes a holistic approach, boosting meridian flow, vital energy, and overall physical resilience. This cost has proven to be a mega-hit. It has accrued over $1.2 billion. 4 million registered users as of August 31, 2023, and its monthly growth building reached around 17 million RMB. As a company that provides itself on innovation, we are dedicated to enhancing our core business while exploring new opportunities for growth. We are excited to announce the launch of a dynamic new business initiative, Life eCommerce, with a strategic focus on the Chinese liquor market. Our decision to venture into Life eCommerce is rooted in a multi-faceted vision. This new business requires minimal capital investment with little operation risk. Well, also acting as a result to further foster our core business, we chose Chinese liquor as our entry point to the live e-commerce business. Chinese liquor holds an important place in Chinese society. especially when it comes to social interaction. Our target demographic is made up of individuals that are middle-aged and older. This demographic demands, robust demands for Chinese leaders. In the post-COVID era, online shopping has been become increasingly common, and that trend turns to the purchase of Chinese sneakers. At the forefront of online shopping today is live streaming e-commerce. On one of the live streaming platforms we operate on, there are over 300 million users with an interest in Chinese sneakers. indicated by a research report. This platform fosters an experience akin to one testing event, allowing users to share their insights about Chinese liquor through live streaming. Recognizing this market opportunity, We aim to provide our users with an all-in-one experience that combines goods and services into a single platform. Our learning-deepness model is also very mature. This is shown by our effective extensions of our Changsha and Jiangzhen brands, which follows by the success of our older Chinu brands. We invest in traffic at the front end, which is then converted into our private social media group. Through years of operation, we have built up substantial user insights. This allows us to effectively locate and acquire customers. We also have a well-developed a well-developed array of marketing tools. This allows us to lock in traffic, locate loyal customers, and convert registered users to paying learners. By leveraging our experience in the adult learning business, we are now acquiring customers for our live e-commerce business in the same way. A replicable approach gives us control over our costs and ROI, even during the early stages of a new business. Since launching the new business in June 2023, we have been very pleased with its operation results. We have generated RMB 13.3 in GMV during August. While we expect a slight adjustment in our gross margin, we are confident that this new initial will have a positive impact on our net margin and strengthen our financial resilience. While we maintain our revenue growth, We continue to improve our operation efficiency and expand our positive cash flow. Tim will explain our financial results in more detail later. We are leveraging AI to help improve our operating efficiency. For example, we are using AI-powered intelligent voice messages to demand learners to join our courses. AI-generated content, or AIGC, has also empowered us to provide a better, more efficient experience when learners pose questions. With AIGC, learners' questions are categorized, and the answers are generated automatically. Tutors simply need to double-check the answers before sending them out This has largely reduced the tutor workload during classes and improved learners' experience without sacrificing factual accuracy. Regarding content development, we are implementing a 4-in-1 interface that combines transcripts, presentation like chat and course requirements. At the same time, we also embraced the template-driven bulk generation of short videos, infographics, and more. This has greatly enhanced our content development efficiency. Despite the present state of the macro, we continue to refine our operations to meet persistent demands from individuals seeking improved quality of life and overall well-being. At the same time, we are strengthening our position as a reliable partner in cooperative and development. Our ability to innovate and explore new ideas has generated outstanding outcomes for our business. Despite a seasonal low, we generated robust year-over-year top-line growth, and our operational focus remains solid with strong pipeline visibility. we made the decision to drastically expand into live e-commerce. This will leverage our existing strengths to enhance profitability. As we navigate the ever-changing dynamics of the market, we are confident in our ability to generate sustainable long-term growth and success. We are grateful for the continued trust and the partnership of our shareholders. With that, I will turn the call over to Tim to discuss the details of our financials. Thank you all.