Here Group Limited

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to ContaSync'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 the management's prepared remarks. Please note that today's event is being recorded. I will now turn the conference over to Ms. Leah Goh, Investor Relations Associate Director of the company. Please go ahead, ma'am.

Thank you. Hello, everyone, and welcome to Qantas' earnings call for the second quarter of fiscal year 2025. 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.quantuscent.com. You can also access a replay of today's 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's prepared 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 QantasSync, Mr. Li.

Okay. Good morning, everyone. Thank you for joining us today to discuss second quarter results for fiscal year 2025. Let me begin with our financial performance for this quarter. Our revenues were on the $726.6 million. As we have mentioned in previous quarters, we are taking a careful approach to business development. We are moderating growth in our traditional business lines while also testing new initiatives. This shift from focusing on traffic-driven growth to high-quality growth is delivering results. As shown by our financial results, the changes in revenue, both sequentially and year-over-year, reflect our planned reallocation of resources. At the same time, our disciplined execution has increased our net income to RMB 126.8 million. This strong bottom line performance highlights our ability to optimize operations while selectively investing in promising opportunities. Our established online learning business is doing well and generating steady cash flow to support our strategy. We built a user base of 139.6 million registered users and are committed to maintain high service quality. This quarter, We have made great progress in course development. For example, in our financial literacy program, we added 22 new lectures. We completed major updates to our financial report training tab. Our programs for business partnerships and user acquisition are keeping up with market trends and meeting the public's demands for financial knowledge. We are also seeing remarkable results in our calligraphy project for senior learners. This is a real enthusiasm for traditional culture learning among middle-aged and elderly individuals. And our change calligraphy program tailored to their needs We created a variety of courses to help seniors enhance their enjoyment of life and find spiritual fulfillment through learning calligraphy. Our two-week curriculum starts from basic writing techniques and moves on to studying Asian masters. And finally, allow for free creative expression. We tailored our program to fit the physical and mental needs of elderly students, respecting their learning pace at each stage. Our professional instructors provide homework, feedback, and offer technical guidance, helping students develop impressive calligraphy skills. Thanks to our thoughtful planning and diverse learning experiences, the conversion rate for advanced courses has increased from over 40% last quarter to over 60% this quarter. On top of our online learning, our consumer business is also growing revenues have reached RMB 64.5 million, which is a 39% increase compared to the same period of last year. This growth is largely due to our expansion into wellness products aimed at the silver economy, where we are already seeing strong results. Our Zhichu Tang brand of sold as medicine products has gained significant market traction with several flagship products performing exceptionally well. The combined cash flow from our established business lines gives us a solid base for making strategic investments in growth areas and exploring new opportunities. Our strong balance sheet and cash position stand out with RMB $1,213.2 million cash and cash equivalent restricted cash and short-term investments. We have the flexibility to invest in promising areas while staying financial discipline. Our ability to fund ourselves is crucial, allowing us to make smart investments without relying on external funding. This strong financial foundation sets the stage for our strategic expansion into diverse business opportunities. In a rapidly evolving market environment, we continue to identify and explore new possibilities. Throughout our history, we have adapted to market changes by standing agile and responsive. We began as pioneers in online learning, building a strong foundation in that area. As new opportunities arose, we expanded our offerings across multiple categories Now we are looking at opportunities both within our established area and beyond, including growing our customer business in the silver economy and testing new products and services. By diversifying our revenue streams across different business lines, we are positioning ourselves to navigate market uncertainties and cyclical changes. This diversification strategy helps us reduce risks in any single business area and builds a more resilient business in today's fast-changing environment. Let me share some of our early exploration initiatives and showcase this diversified kitchen strategy. One area we are exploring is the silver economy, which connects our established consumer business with new exploration initiatives. And we are seeing encouraging results, particularly in our health and wellness product line. In this line, our food and medicine products have gained drawn market acceptance. Our Zhizhou Town brand combines traditional Chinese wisdom with modern health solutions. Using time-tested natural ingredients and advanced extraction technologies, this approach leads to effective science-backed health solutions. Let me share why our products are resonating with customers. Many consumers, including a 70-year-old Shanghai resident, are adding our herbal extract products into their daily wellness routines. They found that these natural supplements fit well with their health habits and lifestyle choices. The positive feedback from customers shows that our products meet real market needs and support our strategy in this area. We are also focused on product innovation. We have a robust pipeline of additional health and wellness products aimed at the silver economy market. This shows our commitment to carefully testing and expanding successful offerings. Additionally, we are in the early stages of testing our offline service strategy. We are working with Beijing Nursing Home to explore integrated service models. This initiative is just the beginning. and we are following our test and scale approach. We are evaluating the results before deciding on the next steps. Let me also update you on our travel study program. We recently launched a new membership offering, the 2025 VIP member card, priced at 355 yuan. This card comes with several benefits, including discounts on travel study products, companion ticket options, station pickup services, travel planning assistance, and quality tips. We are keeping a close eye on how this program performs as we explore its potential for growth. our approach remains consistent. Following our discipline and test and scale methodology, we carefully explore new initiatives, making sure they fit the market before we invest heavily. When we consider new initiatives, we look at many factors, such as initial costs, expected returns, how we align with our strengths and impact on our overall cash flow. This balanced method, along with our strong financial position, allow us to purchase various opportunities. Looking ahead, we stay focused on our balanced approach to business development. Our journey from being a online learning leader through exploring many growth paths shows our ability to adapt and evolve successfully. With the right strategy, the right team, and our strong financial strength, we are confident in funding and seeding significant opportunities across different sectors. In today's rapidly changing environment, We are well prepared to remain agile, responsive, and disciplined as we approach new market opportunities. We look forward to updating you on our progress in the coming quarters. Thank you for your attention. I will now turn it over to Tim for a detailed review of our financial results.