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 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 would now like to 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 Qantasim's earnings call for the first quarter fiscal year 2024. With us today are Mr. Peng Li, our founder, chairman, and CEO, and Mr. Tim Xie, our CFO. Mr. Li will provide a 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 quarterly financial results on our IR website at ir.concessing.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 prepaid remarks are in RMB 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 Quantasyn, Mr. Li.

Okay. Hello, everyone. I'm Matt, the founder of the company. And thank you all for joining us today. We started the new fiscal year with a solid quarter. We focused on the growth of our core business, which revolves around adult learning services. During this quarter, our revenue increased by 31.8% year-over-year, showing the success of our strategy to diversify our cost offerings. Notably, our Personal interest courses have grown strongly with a 36.1% increase in revenue quarter over quarter. These courses now make up around 47% of our total revenue, a large jump from the 18% they contributed just a year ago. Let me share some updates on what we are doing and have a quick look at our recent successes and overall performance. As of September 30, 2023, we had around 103.3 million registered users, representing a significant increase of 51.9 percent from 8.1 million as of September 30, 2022. Our paying learners rose as well, increasing by 18.2% compared to the same period last year. Over the past few months, we have successfully grown our user base and our interest content is drawing more learners to our courses. We have further enriched our course offerings by providing more tools to help our learners build knowledge and skills. For example, we introduced learning tools with more detailed contents to facilitate the understanding of concepts such as REITs and ETFs to Qinyu, our financial literacy learning platform. This gives users more knowledge and improves their overall experience when learning about found concepts. With this update, Xinyu has achieved a closed-loop learning tool system, offering learners a more practical and comprehensive learning journey. We have also been improving our courses structure. In the past, some of our courses each had multiple instructors. Because of this, courses lasted longer due to the transition between instructors. We found that our learners prefer to have a single instructor who can follow their full learning circle. So we have streamlined our process by assigning one instructor and one assistant for our financial literacy courses. These results are good. We improved our operational efficiency. We lowered our personal costs. Fewer people dropped out of courses, and the completion rates remain steady. Notably, our customer-satisfied rate courses with refined structures remain stable at an impressive 98.5%. As a crucial part of our growth strategy, we regularly refine our cost offerings to align with changing demands. For short video courses on our Jiangzhen platform, we designed a weekly insights section to help our learners stay on top of the trending topics on short video platforms. And the recent changes in platform rules, this not only enhanced the quality and the visibility of their work, but also catered to their extracurricular content needs. Let's turn to Chenchi, our silver learners focused platform. We made an important change by moving from using external courses when we first launched and during its early stages to creating our own content. We have designed a unique 3D approach that combines courses with AI tools and practical exercises. That is tailored to senior demographics. We have improved various elements of the courses, including content volume, difficulty level, and the tools and the logic used in the course interface. This shift also gives us more control over our content and makes us better at adapting to changes in learning behavior. Our goal is to make sure our content is always interesting, informative, and useful. Change has become an industry leader in offering courses that truly meet the needs of the senior population. We remain committed to delivering high-quality, tailored learning experiences and we are excited about the positive direction of our platform. Meanwhile, we are contributing to organize offline events to enhance our brand awareness. For example, on July 18, we hosted an offline anniversary event for Xinyu. We invited various stakeholders, including industry leaders, business partners, employee representatives, and many more. During the event, we announced our nonprofit collaborations and unveiled our latest white paper on financial literacy. conversations about expanding financial understanding and recognized outstanding contributions through a wealth. This event played an important role in enhancing our cooperative culture and further boosted our brand awareness. Our offline events also offer users an integrated online-offline learning experience. These events allow users to apply what they learn to real-life situations and how we enhance user engagement within our learner community. During the quarter, we organized a memory and short-value competition attracting a dynamic group of motivated learners. This competition gave those completing our courses a final challenge, reinforced what they have learned, and gave them an opportunity for self-expression. Our senior learners showed resilience, competitiveness, and love for learning, setting a great example for younger generations. we have received lots of positive responses from learners, which are widely circulated within our learning groups, boosting learners' motivation. Our offline activities go beyond competitions. For example, we organize the various events under a change. where senior learners can connect through calligraphy, piano, and standing meditation. Shared appreciation of these events among senior learners has built a strong emotional bond with our community. Our learn online and present offline approach has greatly increased learner satisfaction. Internally, to ensure overall learner satisfaction and our operational efficiency, we integrated customer feedback into our service evaluation system this quarter. This allowed us to do a systematic analysis of the feedback, sorting it based on aspects like timelines quality and overall sentiments. The fundings give us a more complete picture of our services and help us to better manage our service quality. Enterprise service remains a business upsell channel and currently represents 8% of our total revenue. Our main focus is still on 2C online learning service. Our strategy is centered on our adult learning service with the aim of improving people's lives and well-being while using our existing resources to maximize shareholder return. Turning to our new business initiatives, live e-commerce continues to benefit from our existing user reach and has generated a solid GMV, reaching RMB 41.8 million during the first quarter of fiscal year 2024. We are adopting a prudent growth approach and our current focus remains on sales of Chinese liquor. As part of our commitment to expand globally, We recently acquired Kelly's Education. We will share more updates on this when they are available. In summary, our strong first fiscal quarter performance was driven by our commitment to adult learning services and the significant growth of personal interest courses. Our focus on refining course structure and offerings has expanded our learner base. Hosting offline events has boosted brand awareness and sustained high satisfaction rates. AI-driven operation efficiency improvements through systematic feedback monitoring has been vital. Our ongoing mission is to enhance individuals' quality of life through lifelong learning opportunities. We appreciate our shareholders' unwavering trust and support as we strive for continuous progress. We will continue to provide regular updates on our journey ahead. With that, I will turn the call over to Tim. to discuss the details of our financials.