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spk00: Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17 EdTech's fourth quarter 2023 and four-year earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Lara Zhao, 17 Eds, Techs, Investor Relations Manager. Please proceed, Lara.
spk02: Thank you, operator. Hello, everyone, and thank you for joining us today. Our earnest release was distributed earlier today and is available on our IR website. Joining us today are Mr. Michael Du, Director and Chief Financial Officer, and myself, Investor Relations Manager. Michael will walk you through our latest business performance and strategies and I will discuss our financial performance in more details. After the prepared remarks, Michael will be available to answer your questions during the Q&A session. Before we begin, I'd like to remind you that this conference call contains four looking statements as defined in Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These four looking statements are based upon management's current expectations and current market and operating conditions and relates to events that involve known and unknown risks and certainties and other factors, all of which are difficult to predict and many of which are beyond the company's control. This may cause the company's actual results, performance, or achievements to differ materially. Further information regarding these and other risks and certainties and factors is included in the company's filings with the US SEC. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise except as required under applicable law. I will now turn the call over to our director and chief financial officer to review some of our business development and strategic directions. Michael, please go ahead.
spk05: Thank you, Lara. Hello, everyone. Thank you all for joining us on fourth quarter 2023 and full year earning results call. Before we begin, I would like to note that the financial information and the gap numbers in this release are presented on a continuing operation basis and in R&B unless otherwise stated. Let me now start with our latest business updates. In this quarter, the company has maintained solid development and progress in our teaching and learning SaaS businesses. We've achieved 19.7 revenue growth in the fourth quarter of 2023 from the previous quarter. This was primarily driven by our growth in the teaching and learning SaaS businesses. An important progress is that we were able to win orders from additional group of clients, and expanding into our potential new customer groups, and under new transaction modes. Particularly, business with individual schools and group-operated schools has started building momentum with regular new contract screenings. Moving forward, we will accelerate the development of smart classrooms, big data precision teaching, intelligent homework solutions, and other products, including those with five aspects of education, holistically supporting personalized learning, and accommodate students' individual aptitudes in their inter-school solutions. Now let me go into more details. In the fourth quarter, our teaching and learning services continue to make consistent advances. Our key projects continue to generate revenues marked by successful delivery and client acceptance. Notably, the digital transformation projects in Shanghai Minghang District that is based on our smart pen and paper technology, has completed its surface revenue recognition. Similarly, our project in Beijing Xichen District has successfully completed its delivery as well. All such projects have seen immediate and consistent high usage with active rates above 90%. These continue to demonstrate our leading ability to deliver large-scale and systematic projects. In the fourth quarter, we secured a contract for the Teaching Software Integration and Data Analysis Services Project in Shanghai's Songjiang Project. This is a fast-paced pilot project valued at RMB around $3 million and initially covers eight schools, around 100 classes, 200 teachers, and 4,000 students within the district. Our services include integrating teaching software and providing big data analysis, By gathering learning process data from daily homework, staged assignments, and in-cloud exercises, among other sources, we combine various dimensions such as student economic performance, learning behavior, and subject literacy to create comprehensive student data profiles, enable precise, data-driven, and a semi-automatic teaching and management strategies. During this quarter, we pursued new growth strategies and expanded our customer base. By establishing strategic partnership with regional schools associated with well-known private education groups, as well as individually operated public schools, we have successfully executed and delivered projects. This new strategy, targeting private school and select public schools with adaptable structure, has continued to show strong performance. in terms of both contract value and quantity since last quarter. This model is a very good complement to our existing flagship-style projects with district education bureaus that typically aim at covering the whole district. Projects with individual or group-managed private or public schools have a much quicker decision process and a higher certainty of funding. This more diversified revenue contribution by each project also helps build up a more smooth revenue stream. This model also further helps accelerate our strategy to reach more schools and students that will create a virtuous cycle that further allows us to enhance our product and solutions. We are dedicated to provide the market with innovative leading product and solutions that set new standards in education technology. The Aerospace City Campus of the high school affiliated to China Renmin University, Kunshan Foreign Language School, Nanjing Jiangning Bingjiang Foreign Language School, Zhongshan Zhiyuan Middle School are among the long list of top leading schools that have subscribed to our teaching and learning SaaS offering. Their recognition and early adoption of our solution, I believe, to be influential are expected to further accelerate the adoption process within the area. In addition, projects with this group of clients are typically in subscription modes with semi-annual or annual renewal. In the first project we signed last September that has entered the renewal this month, we have seen a revenue retention rate of 120%, which means additional classes and students and functions are being subscribed and used. This is a great result, great initial results built upon our teaching and learning SAS offerings high active use and a very positive sign that we are building up an increasingly steady SAS revenue portfolio. Looking ahead, We expect adoption of the SaaS billing model to steadily grow as the market becomes more familiar with its benefits, and we are confident that this model will not only unlock new revenue streams for the company, but also highlight the advantage of its current nature, fostering sustainable business growth. In terms of product and service offering, we have been continually refining our core offerings and enhancing user experiences to promote regular school use. by integrating application systems and data profiles from daily teaching scenarios such as classroom, homework, and exams. Such integration aids effective teaching, enhances classroom quality, and supports teachers in delivering differentiated instructions. During this quarter, we enhanced our personalized learning products that focus on students' incorrect answers, enabling automatic error correction across all school scenarios, and effectively utilizing correction data between online and offline platforms. Furthermore, we provide high quality and a diverse resource for personalized learning and to boost students' independent learning efficiency. Meanwhile, we continue to explore the practical application of AIGC in actual teaching scenarios as well as content preparation process to further deliver better results in pilot projects. Our proprietary SmartPen, which has passed the project pilot verification, further improves teachers' efficiency and experiences in correcting daily homeworks. We plan to conduct further math distributions in 2024. Recently, the 2024 World Digital Education Conference was held in Shanghai. With digital education, application, sharing, and innovation as its theme, The conference facilitated in-depth discussion on topics such as enhancing teaching's digital literacy and competence, constructing our learning societies throughout education digitalization, artificial intelligence and digital ethics, and digital education evaluation. We participated in the conference and exhibit at the Digital Wisdom Future Education Exhibition under the theme. We provided data-backed solution and shared experience to advance global digital education clients and tackle the challenge. From December 12th to 14th, 2023, as a response and development major change, 2023 China Corporate Competitiveness Annual Conference hosted by the China Business News. Our One Teaching, One Learning K-12 Digital Teaching and Learning Science Platform was honored with the 2023 Excellent Performance Company Award, Best Technology Innovation Award. This award recognizes and honors companies that have made exemplary contributions to the socioeconomic field and has established themselves as exemplars and leaders in the responsive industries. the Beijing Municipal Education Commission selected 37 innovative application cases of big data in education. Notably, Xichen District, as served by 17 ATT&CK, was selected as a district-level case, and three other schools, including the Aerospace City Campus of the high school affiliated to Renmin University, Beijing number 43 middle schools and Beijing primary school Tongzhou branch, which are all our clients, we recognize and are standing on school-level cases. These exceptional innovative application cases serve as a great model for schools in various districts and help us to win additional clients. Looking ahead, One teaching and one learning platform will continue to facilitate the digital transformation of education, consistent meeting the needs of both teaching and students, thereby assisting schools in improving their teaching and nurturing process. The demand for our other educational service products is also highly dependent on the regulatory environment and provision of competing services. We are closely monitoring the development of the market as well as regulatory environments. Moving forward, we remain committed to explore additional educational products and services that are compliant with regulatory requirements. Now I will turn the call over to Lara to walk you through our latest financial performance. Thank you.
spk02: Thanks, Michael, and thank you, everyone, for joining the call. I will now walk you through our financial and operating results. Please note that all financial data I talk about will be presented in R&D terms. I would like to remind you that the quarterly results we present here should be taken with care, and reference to our potential future performance are subject to potential impacts from seasonality and one-off events as a result of the series of regulations introduced in 2021, and corresponding adjustments to our business model, organization, and workforce. In this quarter, our teaching and learning SaaS business generated increasing revenue compared to the same quarter last year, signifying consistent client satisfaction and future development. We are also meticulously managing our expenses to further improve operational efficiency. We are confident that our SaaS billing model is gaining recognition from our clients helping us build a healthier and recurrent businesses as we enhance our service offerings and customer satisfaction. In the fourth quarter, we recorded net revenues of $47.3 million compared with $39.6 million in the fourth quarter of 2022, representing a 19.7% of increase on year-on-year basis. The net loss for the fourth quarter of 2023 was 98.4 million, compared with 103.1 million RMB in the fourth quarter of 2022. The adjusted net loss non-GAAP for the fourth quarter of 2023 was 81.8 million RMB, compared with adjusted net loss of 70.1 million RMB in the fourth quarter of 2022. Gross margin for the fourth quarter of 2023 was 43.4%, compared with 52.1% in the fourth quarter of 2022. As of December 31st, 2023, we have cash reserves of 476.7 million RMB on our balance sheet, providing sufficient funds for future development. Now I will go through our fourth quarter financials in greater detail. Net revenues. Net revenues for the fourth quarter of 2023 were 47.3 million RMB, representing a year-over-year increase of 19.3% from 39.6 million RMB in the fourth quarter of 2022. This was mainly due to the increased number of teaching and learning staff contracts and the recurring revenue generated from our ongoing projects. Cost of revenues for the fourth quarter of 2023 was 26.8 million RMB, representing a year-over-year increase of 41.4% from 18.9 million RMB in the fourth quarter of 2022, which was mainly attributed to a higher proportion of deliveries in our teaching and learning SaaS projects during the quarter, as well as a partial contribution from hardware upgrades. Gross profit for the fourth quarter of 2023 was 20.6 million RMB, remained unchanged from 20.6 million RMB in the fourth quarter of 2022. Gross margin for the fourth quarter of 2023 was 43.4%, compared with 52.1% in the fourth quarter of 2022. Total operating expenses for the fourth quarter of 2023 was 122.8 million RMB, including 16.6 million RMB of share-based compensation expenses, representing a year-over-year decrease of 12.9% from 141.0 million in the fourth quarter of 2022. Loss from operations for the fourth quarter of 2023 was 102.3 million RMB compared with 120.3 million in the fourth quarter of 2022. Lost from operations as a percentage of net revenues for the fourth quarter of 2023 was negative 216.0% compared with negative 304.2% in the fourth quarter of 2022. Net loss for the fourth quarter was 98.4 million RMB compared with net loss of 103.1 million in the first quarter of 2022. Net loss as a percentage of net revenues was negative 207.9% in the first quarter of 2023 compared with negative 260.7% in the first quarter of 2022. Adjusted net loss net gap for the first quarter of 2023 was 81.8 million, compared with adjusted net loss of 70.1 million in the first quarter of 2022. Adjusted net loss net gap as a percentage of net revenues was negative 172.8% in the first quarter, compared with negative 177.3% of adjusted net loss as a percentage of net revenues in the fourth quarter of 2022. Please refer to the table captioned Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures at the end of this press release for reconciliation of net loss and the U.S. GAAP to the adjusted net income or loss non-GAAP. Cash and cash equivalents, restricted cash, Short-term investment and term deposits were 476.7 million RMB as of December 31, 2023, compared with 737.7 million as of December 31, 2022. As we look to the future, the company will persist in devoting itself to the field of educational digitalization, committed to the mission of making learning a wonderful experience. We aim to offer our customer efficient and high-quality product solutions and experiences. While remaining focused on sustaining our developmental momentum and improving the operational efficiency, we are dedicated to fostering steady progress and achieving a long-term stable and sustainable growth. In this quarter, the company and the founder, chairman, and chief executive officer of the company, Andy Liu, has entered into a share repurchase agreement pursuant to which the company proposed to issue, and Mr. Andy Chang Liu proposed to subscribe for $58,450. For 58,453, 186 class B ordinary shares of a company as a subscription price, of the average closing price per ordinary share for the 30 trading days preceding the date of the share repurchase agreement, pursuant and subject to and consistent with applicable laws and NASDAQ rules and the company securities trading policies. Following the share subscription, Mr. Liu will beneficially own approximately 26.2% of the company's total issued and outstanding share capital. This share subscription demonstrates Mr. Liu's confidence in the value and long-term growth of the company. With that, that concludes our prepared remarks. Thank you. Operator, we are now ready to begin the Q&A session. Thanks.
spk00: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. We'll now pause a moment to allow for questioners to register. Thank you. We are showing no questions at this time. I'll now hand the conference back to Ms. Zhao for closing remarks.
spk06: Thank you.
spk00: We are showing no questions at this time. I'll now hand the conference back to Ms. Zhao for closing remarks.
spk02: Thank you, operator. In closing, on behalf of 17 EdTech's management team, we'd like to thank you for your participation on today's call. If you require any further information, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call.
spk00: That does conclude our conference for today. Thank you for participating. You may now disconnect. Thank you. Thank you. you you you Thank you. Thank you. Bye. Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17 EdTech's fourth quarter 2023 and full year earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Lara Zhao, 17 Eds, Techs, Investor Relations Manager. Please proceed, Lara.
spk02: Thank you, operator. Hello, everyone, and thank you for joining us today. Our earnest release was distributed earlier today and is available on our IR website. Joining us today are Mr. Michael Du, Director and Chief Financial Officer, and myself, Investor Relations Manager. Michael will walk you through our latest business performance and strategies and I will discuss our financial performance in more details. After the prepared remarks, Michael will be available to answer your questions during the Q&A session. Before we begin, I'd like to remind you that this conference call contains four looking statements as defined in Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These four looking statements are based upon management's current expectations and current market and operating conditions and relates to events that involve known and unknown risks and certainties and other factors, all of which are difficult to predict and many of which are beyond the company's control. This may cause the company's actual results, performance, or achievements to differ materially. Further information regarding these and other risks and certainties and factors is included in the company's filings with the US SEC. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise except as required under applicable law. I will now turn the call over to our Director and Chief Financial Officer to review some of our business development and strategic directions. Michael, please go ahead.
spk05: Thank you, Lara. Hello, everyone. Thank you all for joining us on fourth quarter 2023 and full year earning results call. Before we begin, I would like to note that the financial information and numbers in this release are presented on a continuing operation basis and in RMV unless otherwise stated. Let me now start with our latest business updates. In this quarter, the company has maintained solid development and progress in our teaching and learning SaaS businesses. We've achieved 19.7 revenue growth in the fourth quarter of 2023 from the previous quarter. This was primarily driven by our growth in the teaching and learning SaaS businesses. An important progress is that we were able to win orders from additional group of clients and expanding into our potential customers. new customer groups, and under new transaction modes. Particularly, business with individual schools and group-operated schools has started building momentum with regular new contract screenings. Moving forward, we will accelerate the development of smart classroom, big data precision teaching, intelligent homework solutions, and other products, including those with five aspects of education, holistically supporting personalized learning, and accommodate students' individual aptitudes in their inter-school solutions. Now let me go into more details. In the fourth quarter, our teaching and learning services continue to make consistent advances. Our key projects continue to generate revenues marked by successful delivery and client acceptance. Notably, the digital transformation projects in Shanghai-Minghang District that is based on our smart pen and paper technology, has completed its surface revenue recognition. Similarly, our project in Beijing Xichen District has successfully completed its delivery as well. All such projects have seen immediate and consistent high usage with active rates above 90%. These continue to demonstrate our leading ability to deliver large-scale and systematic projects. In the fourth quarter, we secured a contract for the Teaching Software Integration and Data Analysis Services Project in Shanghai's Songjiang Project. This is a fast-paced pilot project valued at RMB around 3 million and initially covers eight schools, around 100 classes, 200 teachers, and 4,000 students within the district. Our services include integrating teaching software and providing big data analysis, By gathering learning process data from daily homework, staged assignments, and in-cloud exercise, among other sources, we combine various dimensions such as student academic performance, learning behavior, and subject literacy to create comprehensive student data profiles, enable precise, data-driven, and a semi-automatic teaching and management strategies. During this quarter, we pursued new growth strategies and expanded our customer base. By establishing strategic partnership with regional schools associated with well-known private education groups, as well as individually operated public schools, we have successfully executed and delivered projects. This new strategy, targeting private school and select public schools with adaptable structure, has continued to show strong performance. in terms of both contract value and quantity since last quarter. This model is a very good complement to our existing flagship-style projects with district education bureaus that typically aim at covering the whole district. Projects with individual or group-managed private or public schools have a much quicker decision process and a higher certainty of funding. This more diversified revenue contribution by each project also helps build up a more smooth revenue stream. This model also further helps accelerate our strategy to reach more schools and students that we create a virtual cycle that further allows us to enhance our product and solutions. We are dedicated to provide the market with innovative leading product and solutions that set new standards in education technology. The aerospace city campus of the high school affiliated to China Renmin University, Kunshan Foreign Language School, Nanjing Jiangning Bingjiang Foreign Language School, Zhongshan Zhiyuan Middle School are among the long list of top leading schools that have subscribed to our teaching and learning SaaS offerings. Their recognition and early adoption of our solution I believe to be influential are expected to further accelerate the adoption process within the area. In addition, projects with this group of clients are typically in subscription modes with semi-annual or annual renewal. In these projects, in the first project we signed last September that has entered the than renewal this month, we have seen a revenue retention rate of 120%, which means additional classes and students and functions are being subscribed and used. This is a great result, great initial results, built upon our teaching and learning SAS offerings high active use and a very positive sign that we are building up an increasingly steady SAS revenue portfolio. Looking ahead, We expect adoption of the SaaS billing model to steadily grow as the market becomes more familiar with its benefits, and we are confident that this model will not only unlock new revenue streams for the company, but also highlight the advantage of its current nature, fostering sustainable business growth. In terms of product and service offering, we have been continually refining our core offerings and enhancing user experiences to promote regular school use. by integrating application systems and data profiles from daily teaching scenarios such as classroom, homework, and exams. Such integration aids effective teaching, enhances classroom quality, and supports teachers in delivering differentiated instructions. During this quarter, we enhanced our personalized learning products that focus on students' incorrect answers, enabling automatic error correction across all school scenarios, and effectively utilizing correction data between online and offline platforms. Furthermore, we provide high quality and a diverse resource for personalized learning and to boost students' independent learning efficiency. Meanwhile, we continue to explore the practical application of AIGC in actual teaching scenarios as well as content preparation process to further deliver better results in pilot projects. Our proprietary smart pen, which has passed the project pilot verification, further improves teachers' efficiency and experiences in correcting daily homeworks. We plan to conduct further math distributions in 2024. Recently, the 2024 World Digital Education Conference was held in Shanghai. With digital education, application sharing and innovation as its theme, The conference facilitated in-depth discussion on topics such as enhancing teaching's digital literacy and competence, constructing a learning society throughout education digitalization, artificial intelligence and digital ethics, and digital education evaluation. We participated in the conference and exhibit at the Digital Wisdom Future Education Exhibition under the theme. We provided data-backed solution and shared experience to advance global digital education clients and tackle the challenge. From December 12th to 14th, 2023, as a response and development major change, 2023 China Corporate Competitiveness Annual Conference hosted by the China Business News. Our One Teaching, One Learning K-12 Digital Teaching and Learning Science Platform was honored with the 2023 Excellent Performance Company Award, Bass Technology Innovation Award. This award recognizes and honors companies that have made exemplary contributions to the socioeconomic field and has established themselves as exemplars and leaders in the responsive industries. the Beijing Municipal Education Commission selected 37 innovative application cases of big data in education. Notably, Xichen District, as served by 17 ATT&CK, was selected as a district-level case, and three other schools, including the Aerospace City Campus of the high school affiliated to Renmin University, Beijing No. 43 Middle School and Beijing Primary School Tongzhou Branch, which are all our clients, we recognize and are standing on school-level cases. These exceptional innovative application cases serve as a great model for schools in various districts and help us to win additional clients. Looking ahead, OneTeach and OneLearning platform will continue to facilitate the digital transformation of education, consistent meeting the needs of both teachers and students, thereby assisting schools in improving their teaching and nurturing process. The demand for our other educational service products is also highly dependent on the regulatory environment and provision of competing services. We are closely monitoring the development of the market as well as regulatory environments. Moving forward, we remain committed to explore additional educational products and services that are compliant with regulatory requirements. Now I will turn the call over to Lara to walk you through our latest financial performance. Thank you.
spk02: Thanks, Michael, and thank you, everyone, for joining the call. I will now walk you through our financial and operating results. Please note that all financial data I talk about will be presented in R&D terms. I would like to remind you that the quarterly results we present here should be taken with care and reference to our potential future performance are subject to potential impacts from seasonality and one-off events as a result of a series of regulations introduced in 2021 and corresponding adjustments to our business model, organization, and workforce. In this quarter, our teaching and learning SaaS business generated increasing revenue compared to the same quarter last year, signifying consistent client satisfaction and future development. We are also meticulously managing our expenses to further improve operational efficiency. We are confident that our SaaS billing model is gaining recognition from our clients helping us build a healthier and recurrent businesses as we enhance our service offerings and customer satisfaction. In the fourth quarter, we recorded net revenues of $47.3 million compared with $39.6 million in the fourth quarter of 2022, representing a 19.7% of increase on year-on-year basis. The net loss for the fourth quarter of 2023 was 98.4 million, compared with 103.1 million RMB in the fourth quarter of 2022. The adjusted net loss non-GAAP for the fourth quarter of 2023 was 81.8 million RMB, compared with adjusted net loss of 70.1 million RMB in the fourth quarter of 2022. Gross margin for the fourth quarter of 2023 was 43.4%, compared with 52.1% in the fourth quarter of 2022. As of December 31st, 2023, we have cash reserves of 476.7 million RMB on our balance sheet, providing sufficient funds for future development. Now I will go through our fourth quarter financials in greater detail. Net revenues. Net revenues for the fourth quarter of 2023 were 47.3 million RMB, representing a year-over-year increase of 19.3% from 39.6 million RMB in the fourth quarter of 2022. This was mainly due to the increased number of teaching and learning staff contracts and the recurring revenue generated from our ongoing projects. Cost of revenues for the fourth quarter of 2023 was 26.8 million RMB, representing a year-over-year increase of 41.4% from 18.9 million RMB in the fourth quarter of 2022, which was mainly attributed to a higher proportion of deliveries in our teaching and learning SAS project during the quarter, as well as a partial contribution from hardware upgrades. Gross profit for the fourth quarter of 2023 was 20.6 million RMB, remained unchanged from 20.6 million RMB in the fourth quarter of 2022. Gross margin for the fourth quarter of 2023 was 43.4%, compared with 52.1% in the fourth quarter of 2022. Total operating expenses for the fourth quarter of 2023 was 122.8 million RMB, including 16.6 million RMB of share-based compensation expenses, representing a year-over-year decrease of 12.9% from 141.0 million in the fourth quarter of 2022. Loss from operations for the fourth quarter of 2023 was 102.3 million RMB compared with 120.3 million in the fourth quarter of 2022. Loss from operations as a percentage of net revenues for the fourth quarter of 2023 was negative 216.0% compared with negative 304.2% in the fourth quarter of 2022. Net loss for the fourth quarter was 98.4 million RMB compared with net loss of 103.1 million in the first quarter of 2022. Net loss as a percentage of net revenues was negative 207.9% in the first quarter of 2023 compared with negative 260.7% in the first quarter of 2022. Adjusted net loss net gap for the first quarter of 2023 was 81.8 million, compared with adjusted net loss of 70.1 million in the first quarter of 2022. Adjusted net loss net gap as a percentage of net revenues was negative 172.8% in the first quarter, compared with negative 177.3% of adjusted net loss as a percentage of net revenues in the fourth quarter of 2022. Please refer to the table captioned Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures at the end of this press release for reconciliation of net loss and the U.S. GAAP to the adjusted net income or loss non-GAAP. Cash and cash equivalents, restricted cash, Short-term investment and term deposits were 476.7 million RMB as of December 31, 2023, compared with 737.7 million as of December 31, 2022. As we look to the future, the company will persist in devoting itself to the field of educational digitalization, committed to the mission of making learning a wonderful experience. We aim to offer our customer efficient and high-quality product solutions and experiences. While remaining focused on sustaining our developmental momentum and improving the operational efficiency, we are dedicated to fostering steady progress and achieving a long-term stable and sustainable growth. In this quarter, the company and the founder, chairman, and chief executive officer of the company, Andy Liu, has entered into a share repurchase agreement pursuant to which the company proposed to issue, and Mr. Andy Chang Liu proposed to subscribe for $58,450. For $58,453,186 class B ordinary shares of a company as a subscription price, of the average closing price per ordinary share for the 30 trading days preceding the date of the share repurchase agreement, pursuant and subject to and consistent with applicable laws and NASDAQ rules and the company securities trading policies. Following the share subscription, Mr. Liu will beneficially own approximately 26.2% of the company's total issued and outstanding share capital. This share subscription demonstrates Mr. Liu's confidence in the value and long-term growth of the company. With that, that concludes our prepared remarks. Thank you. Operator, we are now ready to begin the Q&A session. Thanks.
spk00: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. We'll now pause a moment to allow for questions to register. Thank you, we are showing no questions at this time. I'll now hand the conference back to Ms. Zhao for closing remarks.
spk02: Thank you, operator. In closing, on behalf of 17 EdTech's management team, we'd like to thank you for your participation on today's call. If you require any further information, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call.
spk00: That does conclude our conference for today. Thank you for participating. You may now disconnect.
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