Hailiang Education Group Inc.

Good day, ladies and gentlemen. Thank you for standing by and welcome to the Hailing Education Group's first quarter of the fiscal year 2021 earnings conference call. During today's presentation, all parties will be in listen-only mode. This conference is being recorded today, Tuesday, December 1st, 2020. Joining us today from Hailing Education Group are the company's chairman and CEO, Mr. Jen Wei Chen, the company's vice president, Mr. Peng Fang, the company's chief financial officer, Mr. Zhenru Yu, and the company's board secretary, Mr. Lido Chu. I would like to remind our listeners who are on this call, management's prepared remarks contain forward-looking statements which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of safe harbor for forward-looking statements as contained in the Private Security and Litigation Reform Act of 1995. Hailing Education is under no obligation to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. At this time, I would like to turn the call over to Mr. Junwei Chen, the company's chairman and CEO. Mr. Chen, please go ahead.

Thank you operator and everyone for joining Hainan Education Group's first quarter of fiscal year 2021 Early Conference call today. Starting from this fiscal year, the company will resume the release of quarterly reports, hoping to gradually improve the transparency of the company, fully protect the rights and interests of investors. and keep more investors updated with the company's latest development and competitive advantages. I am very pleased to announce that Heilian Education, with its strong bright image, excellent education quality, and our continued progress in executing and innovating our growth strategy, still achieved outstanding results in the first quarter of fiscal year 2021, reducing the temporary disruptions and the short-term impact on our business by the COVID-19 pandemic. In the first quarter of fiscal year 2021, we recorded revenue of RMB $298.5 million, or US dollar $44 million, up 29.8% year on year. We generated $263.1 million, or $38.8 million, from primary, middle, and high school educational services, up 36.1% year-on-year. The net profit attributable to the company's shareholders was $26.9 million, or $4 million, compared with a net loss of maybe 50.3 million for the same period last year. The net profit attributable to the company's shareholders margin was 9%. Comparing with the net loss attributable to the company's shareholders margin was 6.7% for the same period last year. Demonstrating high-end education's significant profitability, Thank you for your continued support to the company. Next, I will turn the call over to Andrew, our vice president, who will summarize our first quarter of fiscal year 2021 business operation results on behalf of the management team. Andrew, please go ahead.

Thank you, Dr. Chen, and good morning, everyone. On behalf of the management team, I will start with a summary of first quarter of fiscal year 2021 operation and several key initiatives for this quarter. The first quarter of fiscal year 2021 was a critical period for enrollment of new students. As of September 30th, 2020, our school network has expanded to 42 schools 13 of which were affiliated schools that we sponsored, and 29 of which were managed schools that we provided the education and management services to. The aggregate number of students enrolled in our affiliated schools was 26,869, up approximately 10.8% year-on-year. The aggregate number of students enrolled in both our affiliated and managed schools was 72,846, up approximately 9.5% year-on-year. For our primary, middle, and high school educational services, we added three affiliated schools to our school network, namely Lanzhou Hailiang Experimental School, Hailiang Overseas Chinese School, and Wuhu Hailiang Experimental School, all of which started their first year of enrollment for the 2020 to 2021 school year in the first quarter of fiscal year 2021. As of September 30, 2020, there were 568, 828, and 409 students enrolled in these three schools, respectively. The company also acquired Jinhua Hai Liang Foreign Language School and completed the transfer of sponsorship in September 2020. As of September 30, 2020, 739 students enrolled in Jinhua Hai Liang Foreign Language School, an increase of 164 students from last year. As of September 30, 2020, the number of students enrolled in the basic educational programs of our affiliated schools was 21,607, up by 11.6% year-on-year, and the number of students enrolled in the international programs of our affiliated school was 5,262, up by 7.6% year-on-year. The increase in the number of students enrolled in our schools shows that the company's effective response measures during the COVID-19 pandemic have been recognized by the public, and also thanks to the company's diversified curriculum business. especially our efforts in integrating international education resources with Chinese education systems. Our growth should also be attributed to the company's strong insight into market opportunities and our ability to resist systematic risks when making important decisions. At the same time, the company intends to promote the development of high-quality education through the power of technology. and is committed to improve management efficiency and teaching and learning quality by creating systems such as smart campus and smart classrooms. We have established an education R&D team with rich experiences in education and IT application development. We are cooperating with top-tier universities and industry leaders in China in terms of technology and products. and will continue to upgrade smart campus and smart classrooms with rich application scenarios. At present, more than 50 educational technology systems are used in various application scenarios in order to further standardize and intelligentize our management and teaching activities. Moreover, we have a team of teachers and educational staff with rich experiences As of September 30, 2020, there was an aggregate of 2,441 teachers and educational staff in our affiliated schools, which included 14 Golden Olympiad competition training coaches, 12 exceptional teachers, 154 senior teachers. At the same time, we have more than 500 staff who graduated from double first-class universities to take key positions in teaching and management. Now let's move on to educational training services. Due to the outbreak of COVID-19, online education has become an indispensable learning resource. Heilong education relied on strong teaching and research ability to deeply integrate the latest technology with education. We have officially launched online educational training services across all subjects and all stages in the summer of 2020. The online educational training services used Cloud classrooms as a carrier make full use of internet concepts, AI smart technology, and the big data tools to deliver an interactive teaching experiences. The teaching quality has been widely recognized by our students and their parents. In the first quarter of fiscal year 2021, our online educational training services have served 10,415 students As of November 15, 2020, we have served a total number of 28,424 students online during fiscal year 2021. Driving the company's development and innovation in new business model, offline educational training services are also in a steady state of development. We expect that offline training campuses will be opened in all Heilong education schools in the future. Revenue generated from study trip services declined in the first quarter of fiscal year 2021. It was mainly due to restriction on travels because of COVID-19, which affected our study trip services in fiscal year 2021. We are actively building up new revenue sources for our study trip services, starting from the weekend parent-child camp, setting up online sales channels, and gradually expanding our customer base of non-Kai Liang students with high-quality study trip products and services. As of September 30, 2020, there were two new managed schools in Suchian City, Jiangsu Province, namely Xiamen Road School and Fuming Avenue School. These two schools include the primary and middle school programs. In recent years, the company, through continuous accumulated experiences, has gradually provided the education and management services to manage the schools in an intelligent and standardized way. And these services include academic management, brand culture, and logistic management. The company's operation and management capabilities have improved year by year. In the future, the company will continue to develop rapidly through the asset-light model and provides more extensive and high-quality services to a variety of public and private schools. Looking forward, we will continue to strictly monitor the guidance for COVID-19 from health authorities to ensure the health and safety of our students, faculty, and staff. Meanwhile, we will continue to build a one-stop comprehensive service platform for primary, middle, and high school education. in order to provide students with high-quality education and management services and vigorously develop additional education services, such as online and offline educational training services, study trip services, and overseas study services. Thank you again for all your support and attention. Next, I will turn the call over to Thomas, our CFO, who will summarize our first quarter of fiscal year 2021 financial results on behalf of the management team. Thomas, please go ahead.