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spk04: Ladies and gentlemen, thank you for standing by and welcome to the fourth quarter and full year of 2021 Tarina International Inc. Earnings Conference Call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. I must advise you that this conference is being recorded today, March 16, 2022. I'd now like to hand the conference over to your first speaker today, Ms. Sylvia Young, Investor Relations Manager. Thank you. Please go ahead.
spk03: Thank you, operator. Hello, everyone, and welcome to Tarina's Earnings Conference Call for the fourth quarter and fourth year of 2021. The company's earnings results were released earlier today and available on our IR website, ir.edu.cn, as well as our newswire services. Today, you will hear from Ms. Nancy Ying Sun, our CEO, and Mr. Calvin Lau, our CFO, who will take you through the company's operational and financial results for the fourth quarter and fourth year of 2021 and give revenue guidance for the fourth quarter of 2022. After their prepared remarks, Nancy and Kelvin will be available to answer your questions. Before we continue, please note that the discussion today will contain certain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Tarina does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also, please note that some of the information to be discussed includes non-GAAP financial measures as defined in Regulation G. The U.S. GAAP financial measures and information reconciling these non-GAAP financial measures to Tarina's financial results prepared in accordance with U.S. GAAP are included in Tarina's earnings release, which has been posted on the company's IR website at ir.edu.cn. Finally, as a reminder, this conference call is being recorded. In addition, A webcast of this conference call is available on Terena's investor relations website. I will now turn the call over to Ms. Nancy Ying Sun, the CEO of Terena.
spk01: Thank you, Sylvia, and thanks to all the shareholders to participate in our call. Thank you very much for your attention and your support.
spk05: 在此,我很高兴地向大家宣布达内公司2021年第四季度的业绩情况。 2021年的第四季度,我们欣喜地看到,无论是青少年的素质教育业务,还是成人的IT职业教育业务,我们的现金收款都创出了年内的季度新高。 We are pleased to announce Tarina's results for the fourth quarter of 2021. We are delighted to see that in the fourth quarter of 2021, both of our childhood and adolescent quality education and adult professional education businesses
spk01: reached their highest amounts of quarterly cash collection during the year of 2021. As a result, our net cash provided by operating activities in the fourth quarter of 2021 achieved RMB 129.5 million, and our total cash and cash equivalent balance increased to RMB 430.4 million as of December 31, 2021.
spk05: The increase in income tax is mainly due to the reasonable amount of income tax fees that are used in the five-year possibility at the end of the year. At the same time, the total number of employees in our company has dropped from 10,181 people at the end of the fourth quarter of 2020 to 10,009 people at the end of 2021. The total output from the same period last year was about 17.24 million yuan. At the same time, we are glad to see that our total net revenues were RMB 655.3 million, which was higher than the guidance we gave in the last quarter.
spk01: The total net revenues in the fourth quarter of 2021 increased by 0.8%, as compared to the total net revenues of RMB 650.3 million in the same period of last year, and increased by 6.5% as compared to the total net revenue of RMB 615.2 million in the third quarter of 2021. Operating loss decreased by about 29.1% to RMB 60.4 million in the fourth quarter of 2021 from RMB 85.1 million in the same period of last year. Operating margin improved by 3.9 points to 9.2%. in the fourth quarter of 2021 from 13.1% in the same period of 2020. Net loss after deducting the income tax expense of RMB 125.7 million was RMB 182.5 million in the fourth quarter of 2021. The increase in income tax expenses was mainly because we have made appropriate provision allowance against the deferred income tax assets, which was derived from the utilized tax loss as it was more likely than not that the unutilized tax laws will not be utilized within the five-year deduction period. Meanwhile, the number of total headcounts decreased by 1.7% to 10,009 in the fourth quarter of 2021 from 10,181 in the same period of last year. The productivity per capita on annual basis increased by 37.1%, to RMB 236,000 in 2021 from RMB 172,000 in 2020. Our total revenues increased by 25.7% to RMB 2,386.5 million in 2021, from RMB 1,897.9 million in 2020. In 2021, as we have achieved a steady growth in net revenues and have implemented effective measures to control costs and expenses, and our operating loss decreased significantly by 54.2%, to RMB 369.1 million in 2021 from RMB 806.4 million in 2020. Operating margin improved by 27% point to 15.5% in 2021 from 42.5% in 2020. 接下来和大家汇报分享一下我们2021年第四季度的两个业务的运营情况。 I will walk you through our two businesses' operations in the fourth quarter of 2021.
spk05: 首先介绍一下成人IT职业教育业务的情况。 First of all, let's look at the performance of our adult professional education business. We admit that the number of middlemen compared to the end of the fourth quarter of 2020 has decreased by four. Because of that, the number of people who have read the book has decreased by 3.510,000 people in the fourth quarter of 2020 by 14%, which is 3.02 million people. The income of the business is 3.193 billion yuan, which is 9.4% lower than the 3.524 billion yuan in the fourth quarter of 2020. However, At the same time, our central unit production has also been effectively improved. The average income of the single center rose from about 5.71 million yuan last year to 16.1% to about 11.28 million yuan in 2021. We have also made great progress in managing costs and operating costs.
spk01: 2021年第四季度,我们通过大幅降低管理费用中的人员成本,使得管理费用比2020年同期降低了61.1%。 Optimizing the business structure, reducing costs, and uplifting the operational efficiency and productivity has always been the business strategies of our adult professional education business. Due to the number of learning centers have been reduced by four by the end of the fourth quarter of 2021, As compared to that by the end of the same period of 2020, student enrollment decreased by 14% to 30,200 in the fourth quarter of 2021 from 35,100 in the same period of last year. Net revenue from adult professional education business dropped by 9.4% to RMB 319.3 million in the fourth quarter of 2021 from RMB 352.4 million in the same period of last year. we have achieved gratifying improvement in the average annual net revenue per single learning center, which increased by 16.1% to RMB 11.3 million in 2021 from RMB 9.7 million in 2020. We have also made significant progress in managing costs and operating expenses. By significantly optimizing the personnel-related costs, General and administrative expenses dropped by 61.1% in the fourth quarter of 2021 as compared to that in the same period of 2020.
spk05: 2021年的第四季度,我们毕业六个月学员的就业率依旧保持在90%以上。 良好的教学质量和效果持续构建了我们的长期优势。 The postgraduate job placement rate still maintained at a level of over 90% in the fourth quarter of 2021.
spk01: Outstanding tutoring quality and effectiveness continued to build our long-term competitive advantage in the market.
spk05: 2021年的毛利为7.41亿,同比2020年的7.16亿,上幅了3.5%。毛利率64.4%,同比2020年同期的63%,上涨了1.4个百分点。 Net revenue from adult professional education business increased by 1.2% to RMB 1,150.2 million in 2021,
spk01: from RMB 1,136.1 million in 2020. Cost of revenue dropped by 2.6% to RMB 409.3 million in 2021 from RMB 420.3 million in 2020. Gross profit increased by 3.5% to RMB 740.9 million in 2021 from RMB 715.7 million in 2020. Growth margin improved by 1.4% to 64.4% in 2020 from 63% in 2020. 接下来,我再和大家介绍一下我们的青少年素质教育业务的情况。 Next, I would like to share with you the performance of our childhood and adolescent quality education business.
spk05: In 2021,
spk01: We achieved great development in customer acquisition, operation, product structure, and business process optimization in our childhood and adolescent quality education business. These achievements resulted in the net revenues have been increased significantly. Cost of revenues and operating expenses have been properly and effectively managed, and operational efficiency has been improved to a greater extent in 2021.
spk05: In the fourth quarter of 2021, the income of the children's business was 3.360 billion yuan, which increased by 12.8% compared to the 2.979 billion yuan in the fourth quarter of 2020. The number of returnees increased from 12.83 million people in the fourth quarter of 2020 to 15.13 million people in the same period in 2021, which increased by 17.9%. New tuition students, including new registrants and tuition students, increased by 4.28 million people. net revenues from childhood and adolescent quality education increased by 12.8%, to RMB $336 million in the fourth quarter of 2021, from RMB $297.9 million in the same period of last year.
spk01: Student enrollments increased by 17.9%, to 151,300 in the fourth quarter of 2021, from 128,300 in the same period of last year. The number of new contracted students, including new registered students and renewal students, increased year over year by about 22.3%, to approximately 42,800 in the fourth quarter of 2021, from approximately 35,000 in the same period of last year.
spk05: In the whole year of 2021,
spk01: Net revenue from childhood and adolescent quality education increased significantly by 62.3% to RMB 1,236.3 million from RMB 761.8 million in 2020. The number of new contracted students, including new registered students and renewal students, was approximately 143,100. up about 38.4% from last year's 103,400, of which the proportion came for students' renewal and word-of-mouth promotional activities continued to increase, reaching 70.8% in the fourth quarter of 2021, compared to the full-year rate of 66.4% in 2020. The high rate of students' satisfaction guaranteed that the renewal rate of students who have enrolled for more than one year exceeded over 83.2% in 2021. Students enrollment were 178,400 in 2021, up 26% year over year.
spk05: Di si ji du, shao er ye wu de zhong xin shu liang you 2020 nian di si ji du muo de 236 ge kuo da dao la 2021 nian di si ji du muo de 238 ge. Tong shi, dan zhong xin xue sheng bao du de ren shu you qi nian de mei zhong xin 625 ren tisheng dao 2021 nian de mei zhong xin 753 ren. Pingjun dan zhong xin de shou ru ye you qi nian de 336 wan yuan shang zhang le 55.4 zhi 2021 nian de yue 522 wan yuan.
spk01: The number of learning centers increased to 238 in the fourth quarter of 2021 from 236 in the same period of 2020. Student enrollment per learning center increased to 753 in 2021 from 625 in 2020. Average annual net revenue per single learning center increased by 55.4%. to RMB 5.22 million in 2021 from RMB 3.36 million in 2020.
spk05: 2021年全年,由于业务净收入增长达到了62.3%,远大于成本增长的比例22.5%,也使得我们全年毛利同比增长达到了285.3%,毛利率达到了35.9%,同比上升了20.8个百分点。 In the fourth quarter of 2021, with the growth of net revenue, cost of revenue increased by 25.5% year over year.
spk01: and gross profit decreased by 4.7% year-over-year. Gross margin was 35.6% in the fourth quarter of 2021. In 2021, the increase in net revenue was 62.3%, outweighing the increase in cost of revenue of 22.5%, and skyrocketing in the gross profit by 285.3% year-over-year. Gross margin increased by 20.8% points to 35.9% in 2021. 我们的少儿在线业务也在持续增长,2021年全年收入1.12亿元同比增长3.2%,在少儿总收入中占比达到9%。 Our childhood and adolescent quality education online business has continued to grow. with revenue of RMB 111.5 million in 2021, which represented an increase of 3.2% from last year, and accounted for about 9% of the total net revenue of childhood and adolescent quality education in 2021. 回顾2021年
spk05: Based on the online and offline integration, that is, the product development and delivery capability of OMO, as well as the strong offline door-to-door operation capability and customer capability, we have continued to build our core advantages. At the same time, the optimization of business structure and the improvement of operation efficiency have also allowed us to successfully deal with the epidemic recurrence in some areas.
spk01: Looking back on 2021, our abilities to develop and deliver products based on the online-merge-offline, which is OMO model, strong offline learning centers operation capabilities and customer acquisition capabilities have continued to enhance our core competitive advantages. Meanwhile, our measures to optimize business structure and uplift operational efficiency enabled us to cope with the negative impact arising from the sporadic occurrence of COVID-19 cases.
spk05: So looking ahead, based on what we have achieved in 2021,
spk01: We will continue to uplift our operational efficiency, and at the same time, we will enhance our business growth capabilities and adhere to the strategy of long-term sustainable development. We strive to achieve the goal of turning from net loss to net profit as soon as possible.
spk05: I want to take this opportunity to thank you all again for your continued attention and support. I would like to turn the call to Kelvin, our CFO, who will share with you the fourth quarter and full year of 2021 financial highlights. Thanks. Thank you, Nancy.
spk01: Now I would like to take you through the fourth quarter and full year of 2021 financial highlights.
spk00: Total net revenues increased by 0.8% to RMB $655.3 million in the fourth quarter of 2021, from RMB $650.3 million in the same period of 2020. Net revenue from childhood and adolescent quality education business increased by 12.8%, to RMB $336 million in the fourth quarter of 2021, from RMB $297.8 297.9 million in the same period of 2020. The increase was primarily due to increase in student enrollments from 128,300 in the fourth quarter of 2020 to 151,300 in the same period of 2021. Net revenue from adult professional education business decreased by 9.4% to RMB 319.3 million in the fourth quarter of 2021. from RMB352.4 million in the same period of 2020. The decrease was primarily due to decrease in student enrollments from 35,100 in the fourth quarter of 2020 to 30,200 in the same period of this year. Cost of revenues increased by 12.4% to RMB327.7 million in the fourth quarter of 2021. from RMB 291.5 million in the same period of 2020. The increase was primarily due to increase in personal related costs, resulting from the growing number of teaching staff at our childhood and adolescent quality education learning centers. An increase in social security fees, which were exempted according to the preferential policies and edited by the government during COVID-19 pandemic in the fourth quarter of 2020, but were not exempted in the fourth quarter of 2021. Gross profit decreased by 8.7% to RMB327.6 million in the fourth quarter of 2021, from RMB358.8 million in the same period of 2020. Gross margin, which is equal to gross profit divided by net revenues, was 50% in the fourth quarter of 2021, compared to 55.2% in the same period of 2020. The decrease in gross margin was primarily attributable to the increase in total cost of revenues, awaiting the increase in total net revenue in the fourth quarter of 2021. Total operating expenses decreased by 12.6% to RMB $388 million in the fourth quarter of 2021, from RMB $443.9 million in the same period of 2020. Total non-GAAP operating expenses, which is good share-based compensation expenses, decreased by 12.1% to RMB $383.6 million in the fourth quarter of 2021, from RMB $436.4 million in the same period of 2020. Total share-based compensation expenses allocated to the related operating expenses decreased by 41.3% to RMB $4.4 million in the in the fourth quarter of 2021, and RMB $7.5 million in the same period of 2020. Selling and marketing expenses decreased by 0.7% to RMB $221.8 million in the fourth quarter of 2021, from RMB $223.3 million in the same period of 2020. The decrease was mainly due to decrease in personnel related costs, resulting from drop in the number of sales staff. which was partially offset by the increase in sales promotion fee in the fourth quarter of 2021 as compared to the same period of 2020. General and administrative expenses decreased by 32.2% to RMB $132.5 million in the fourth quarter of 2021, from RMB $195.3 million in the same period of 2020, The decrease was mainly due to decrease in personal related costs as a result of decrease in the number of staff and the one-off income recognized resulting from the receipt of the settlement payment from the buyer group parties of the proposed subpar taxation transaction in the fourth quarter of 2021. Research and development expenses increased by 33.3% to RMB $33.7 million in the fourth quarter of 2021 from RMB 25.2 million in the same period of 2020. The increase was mainly due to increase in personnel related costs in the fourth quarter of 2021. Operating loss was RMB 60.4 million in the fourth quarter of 2021, compared to operating loss of RMB 85.1 million in the same period of 2020. Non-GAAP operating loss which excluded share-based compensation expenses was RMB 56.5 million in the fourth quarter of 2021, compared to the non-GAAP operating loss of RMB 77.5 million in the same period of 2020. The company recorded an income tax expense of RMB 125.7 million in the fourth quarter of 2021, compared to income tax expenses of RMB 7 million in the same period of 2020. The increase in tax expenses was mainly due to an increase in provision allowance related to the deferred tax access, which was derived from the unutilized tax laws, as it was more likely that the tax laws will not be utilized within the five-year deduction period. As a result of the fourth going, net loss was RMB 182.5 million in the fourth quarter of 2021, compared to net loss of RMB 94.7 million in the same period of 2020. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB 178.6 million in the fourth quarter of 2021. compared to non-GAAP net loss of RMB 87.1 million in the same period of 2020. Loss per ordinary shares was RMB 3.22 in the fourth quarter of 2021, compared to loss per ordinary shares of RMB 1.72 in the fourth quarter of 2020. Non-GAAP loss per ordinary shares, which excluded share-based compensation expenses, was RMB 3.16 in the fourth quarter of 2021, compared to non-GAAP loss per ordinary shares of RMB 1.58 in the fourth quarter of 2020. Net cash inflow from operating activities in the fourth quarter of 2021 was RMB 129.5 million. Capital expenditures in the fourth quarter of 2021 were RMB 21.4 million. Now I'm going to take you through the full year of 2021 financial highlights. Net revenues increased by 25.7% to RMB 2,386.5 million in 2021, from RMB 1,897.9 million in 2020. Net revenue from childhood and adolescent quality education increased by 62.3%, from RMB 761.8 million in 2020 to RMB 1,236.3 million in 2021. The increase was mainly due to increase in student enrollments of childhood and adolescent quality education from 141,600 in 2020 to 178,400 in 2021. Net revenue from adult professional education business increased by 1.2% from RMB 1,136.1 million in 2020 to RMB 1,150.2 million in 2021. The increase was mainly attributable to increase in unit price of tuition fee and certificate revenue, whilst partially offset by decrease in student enrollments from 83,400 in 2020 to 72,100 in 2021. Cost of revenues increased by 12.6% to RMB 1,201.4 million in 2021, from RMB 1,066.8 million in 2020. The increase was mainly due to increase in personal related costs resulting from the growing number of teaching staff and increase in social security fee which were examined according to the prudential policies and edited by the government during COVID-19 pandemic in 2020, but were not examined in 2021. Gross profit increased by 42.6% to RMB 1,185.1 million in 2021, from RMB 831 million in 2020. Gross margin, which is equal to gross profit divided by net revenues, was 49.7% in 2021, compared to 43.8% in 2020. The increase in gross margin was primarily attributable to the increase in total net revenues await the increase in cost of revenues in 2021 and the effective cost controls we have implemented in 2021. Total operating expenses decreased by 5.1% to RMB 1,554.2 million, in 2021 from RMB $1,637.4 million in 2020. Total non-GAAP operating expenses, which excluded share-based compensation expenses, decreased by 4.1% to RMB $1,535.2 million in 2021 from RMB $1,601.6 million in 2020. Total share-based compensation expenses allocated to the related operating expenses decreased by 46.9% to RMB 19 million in 2021 from RMB 35.9 million in 2020. Selling and marketing expenses decreased by 3.1% to RMB 878.1 million in 2021 from RMB 906.3 million in 2020. The decline was mainly due to decrease in advertising expenses in 2021. General and administrative expenses decreased by 9.6% to $570 million in 2021, from RMB's $630.6 million in 2020. The decline was mainly due to a decrease in personnel-related costs and welfare as a result of a decrease in the number of staff and the lack of income recognized resulting from the receipt of the settlement payment from the buyer group parties of the proposed prioritization transaction in 2021. Research and development expenses increased by 5.6% to RMB 106.1 million in 2021, from RMB 100.5 million in 2020. The increase was mainly due to increase in personnel related costs in 2021. Operating loss was RMB 369.1 million in 2021, Compatible to operating loss of RMB 806.4 million in 2020. Non-GAAP operating loss which excluded share-based compensation expenses was RMB 350 million in 2021. Compatible to non-GAAP operating loss of RMB 770.1 million in 2020. The company recorded an income tax expenses of RMB 114.1 million in 2021. compared to the income tax benefit of RMB $35 million in 2020. The increase in tax expenses was mainly due to increase in provision allowance made to the deferred tax access, which was derived from the unutilized tax laws, as it was more likely than not that the tax laws will not be utilized in a five-year deduction period. As a result, Of the four going, net loss was RMB 475.8 million in 2021, compared to net loss of RMB 771.2 million in 2020. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB 456.7 million in 2021, compared to non-GAAP net loss of RMB 734.9 million in 2020. loss per ordinary shares was RMB 8.43 in 2021, compared to loss per ordinary shares of RMB 14.11 in 2020. Non-GAAP loss per ordinary shares, which is good share-based compensation expenses, was RMB 8.1 in 2021, compared to non-GAAP loss per ordinary shares of RMB 13.44 in 2020. Net cash inflow from operating activities in 2021 was RMB 8.6 million. Net cash inflow from investing activity in 2021 was RMB 33.7 million. The net proceeds from disposal of properties and long-term investments were RMB 94.6 million, and the capital expenditures were RMB 67.7 million in 2021. In terms of financial guidance, Based on our current estimates, total net revenues for the first quarter of 2022 are expected to be in the range of RMB580 million to RMB610 million, which represent an increase of 8.6% to 14.2% as compared to net revenues in the first quarter of 2021. After taking into consideration the seasonal fluctuation, and the likely continuous impact of the COVID-19. This guidance is based on the current market condition and reflects the company's current and preliminary estimates of the market and operating conditions, which are subject to change, particularly as to the potential impact of COVID-19 on the economy in China and elsewhere in the world. This concludes my financial highlights section. Operator, we are ready for questions. Thank you.
spk04: Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star 1 on your telephone and light for your name to be announced. If you wish to cancel your request, please press the pound or hash key. Please stand by while we compile the question and answer roster. As a reminder, if you wish to ask a question, please press star 1 on your telephone. Well, once again, the star 1 for questions. but we don't have any question at the moment. Presenters, please continue.
spk00: Certainly, once again, ladies and gentlemen, if you wish to ask a question, please press star 1 on your telephone.
spk05: Thank you very much to all the investors who came to our conference today. In the past year 2021, although there has been a resurgence of the epidemic in some areas, we have still achieved a good growth of two businesses throughout the year. And the strategy of optimizing the structure and reducing costs that we once adopted So this is Nancy. And first of all, I'd like to thank all of our investors for joining the call. Actually, we did quite well in 2021, even though there are sporadic fluctuations and occurrence of COVID-19, but we still achieved good growth for our two businesses.
spk01: i.e. the childhood and adolescent quality education business, as well as very good growth for our good performance for our adult professional education business throughout 2021. In the future, we will continue to optimize our business structure, always trying to lower the cost, and we are very confident that we can achieve a very healthy and sound growth for our two businesses in 2022. So in 2022,
spk05: Our core business goal is still to achieve profit. At the same time, we will also monitor the health of our business and the ability for business to continue to develop. Based on the health of the business and the ability to continue to develop, this kind of profit is our strategic direction. So because the two businesses under us are in different stages of development, we have adopted two different business strategies to achieve the goal of healthy, sustainable growth of profit. Then we see that this Shaoer business has a history of operation for six years, but in the entire Shaoer programming industry in China, it is all in the exploration period of business. So in such a stage of business, we are thinking about how to find its strong business logic under the premise of growth. Then here I am very happy to share with you that we believe that in the fourth quarter of 2021, we have completed the exploration of the entire business model, and determined the business model that our young people can benefit from. You can see from our business performance in 2021 that the young people's business is also greatly declining under a significant increase. Then in January 2022, OK, so in 2022, we will continue to improve our operational efficiency, and our core goal is to make profits. And our overall strategy, our overall objective,
spk01: is to achieve a long-term sustainable development. Even though that our adolescent and childhood business are in different stage than our adult professional education business, so that is why we have different strategies for these two businesses. For example, for our childhood and adolescent quality education business, that's been going on for more than six years. And right now, what we are focusing on is to achieve a profitable business model In the Q4 of 2021, we are already making profit for our childhood and adolescent quality education business. Going forward, we will continue to improve our business development. By the way, the business has already developed for our childhood and adolescent business, and we have already achieved a very significant loss reduction for this business. Judging from the records of our January in 2022, we have already making profits for our childhood and adolescent business. And in the future, we will continue to hone in our childhood and adolescent quality education business.
spk05: continue to maintain the optimized business structure, improve efficiency, and expand profitability. So what we see is that in the end of 2021, in the case of a reduction of four in the central quantity, our annual income is increasing, our annual profit is increasing, and our single-center income is increasing. So even in January 2022, the financial report that has not been audited shows that our adult business
spk01: Regarding our adult professional education business, it is a business that's going on for more than 20 years. It enjoys a very mature business model. And going forward, we will continue to optimize our adult business structure, continue to improve our capability to improve its profits, And by the end of 2024, even though that the number of learning centers have been reduced by four by the end of the Q4 of 2021, we all still can achieve a positive revenue throughout the year for our adult business, as well as significant improvement of our gross profit and the improvement of revenue per single learning center. And judging by the record of our January performance in 2022, the gross profit of our adult professional education business reached around 70%, and the profitable level reached around 30%. 大家能够看到我们在2022年QE给出的收入指引是大幅度高于我们去年同期的收入水平的。 And the revenue guidance that we gave you based on the Q1 of 2022 is significantly higher than the same period of last year.
spk05: And
spk01: Even though the performance of Q1 in 2022 was slightly impacted by China's Lunar New Year that happened in February, which was quite seasonal, we are fully prepared to welcome other breakthroughs. For example, breakthroughs of our net revenue throughout the year in 2022, because we have already achieved a very sound and sustainable growth model for our two businesses.
spk05: So I'd just like to take this opportunity to thank all of you for your long-term attention, as well as your patience and your support. Just trying to ask, are there any other questions?
spk04: Thank you. Just a quick reminder, to ask a question, please press star 1 on your telephone. We have a question from Dave from Super Bowl. Please go ahead. Please ask a question, Dave.
spk01: Hello.
spk02: So thank you very much for that presentation. First off, I want to congratulate on Tarina's good performance
spk01: in the Q4 of 2021, which was quite commendable. My question is regarding the rebound of COVID-19. Due to the outbreak of the COVID-19 in Beijing yet again this year, a lot of off-campus training institutes have been called off and shut down. So will this impact our offline learning centers?
spk05: Thank you for your question. I'm Nancy. In the past two years, the pandemic has always been a part of our lives. It always happens. In fact, for each of us, we all have the habit of responding to the pandemic in a normal way. For an education company, I think it's very important that in the event of a pandemic, we provide good educational products and services that meet the child's growth rate. Because no matter whether the pandemic happens, our children must grow up healthily. So,
spk01: Thank you for that question. And this is Nancy, the CEO of Terena International Incorporates. And thank you very much for that question because it is quite normal that we see this rebound of COVID-19. And we only need to look at it with a detached mind and to look at it as a normal thing going on in China, in Beijing. And for us, we are an educational company and we are providing good educational product as well as high quality education service. So no matter what's going on in the world, in the society, we still need to provide high quality service for the sustainable growth of our kids and for our adults. So that is why the core competitive edge for Terena has always been a sound and a sustainable growth model. So we are very fortunate that all of our business, our adult business, as well as our childhood and adolescence business can be transferred online because for programming education course, it is in its nature that it can be taught online.
spk05: 我进一步解读一下我们为什么认为我们是有先天的优势和属性的。 So let me dive a little deeper about the advantage of our curriculum. 我们基于OMO的这种在线编程培训已经有16年的历史了, 具有 非常成熟和丰富的教学交付的经验。 First off, we've been doing OMO, the online merge offline, online programming training for around 16 years. We have accumulated a lot of experience in this regard. 在2020年的疫情期间,我们成人的IT培训线下课程, During the pandemic in 2020, our adult professional education business offline was totally transferred to online, and with very good and very positive feedback from our students, and also we can maintain a very stable job placement rate. 那么截止到目前为止,我们少儿的编程课,不包括机器人的少儿编程课,线下转线上的教学比例已经达到了90%以上,而且我们还在不断地提升。 So far, 80% of our offline childhood and adolescent programming course has been transferred to online, and this rate has continued, except for our robotic training course. 我们的机器人课程也具备很有效的转线上实施的这种方案,而且在整个过程里我们严格遵守了国家的规范。 We also have already come up with a very effective transfer plan to transfer our offline robotic cores to online. Meanwhile, we also will abide by the regulations of China. 在我们看到北京市教委下发了这个全体中小学生停课的通知的同时,其实在3月15号,北京市教委还印发了另外一个文件,那就是北京市教育信息化和网络安全工作要点的一个文件。 We also know that because the Chinese government has issued a policy to shut down a lot of schools and try to shut off a lot of off-campus training institutes, on March 15th,
spk01: the Education Bureau of Beijing Municipal Government has also released another document titled the 2022 Key Point for Informatization and Cybersecurity for the Education in Beijing.
spk05: So this document
spk01: where this policy encourages off-campus institutions to come up with online-merging offline learning products to deliver good learning practice and good high-quality learning products for the students. 我们的同城同美,也就是我们的少儿业务,既有线上交付和实施的能力和经验,又有很好的线下教学的场景。 我相信基于此构建的应对疫情和面对未来的人工智能的这种教学模式会成为我们新的核心竞争能力。 And our childhood and adolescence quality education business can be taught either offline or online, and I think that this will be our core competitiveness in the future, and also in the future where artificial intelligence will be the mainstay of education.
spk05: So I think that the COVID-19 is like a double-edged sword. It is both an opportunity but also a challenge for us. We are fully capable to cope with the impact of COVID-19, and we are very confident that we will enjoy better performance in the future.
spk01: And to sum up, I want to thank you for this question again.
spk05: Thank you.
spk01: Thank you.
spk04: Just a reminder, if you wish to ask a question, please press star 1 on your telephone. We don't have any other questions at the moment. Presenters, please continue.
spk03: Thank you, Amber. If there are no further questions, I'll pray now. We would like to conclude by thanking everyone for joining our conference call. We welcome you to reach out to us directly by emailing at ir.edu.cn. Should you have any questions or requests for additional information, we encourage you to visit our IR website at ir.edu.cn. Thank you.
spk02: Thank you.
spk04: Thank you. Thanks. All right. Thank you, ladies and gentlemen. That does conclude our conference for today. Thank you for participating. You may all disconnect.
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