17 Education & Technology Group Inc.

And good morning, ladies and gentlemen, and thank you for standing by for 17XX First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. After the mention's prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I'll now turn the meeting over to your host for today's call, Ms. Laura Zhao, 17XX Investor Relations Manager. Please proceed, Laura.

Thank you, Operator. Hello, everyone, and thank you for joining us today. Our earnings release was distributed earlier today and is available on our IR website. Joining us today are Ms. Sushi Zhou, the Acting Chief Financial Officer, and myself, Investor Relations Manager. Sushi will walk you through our latest business performance and strategies, and I will discuss our financial performance in more detail. After the prepared remarks, you 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 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, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control. These risks may cause the company's actual results, performance, or achievements to differ materially. Further information regarding these and other risks and certainties or factors is included in the company's filing with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statement as a result of new information due to events or otherwise except as required under applicable law. I will now turn the call over to our Acting Chief Financial Officer to review some of our business developments and strategic direction. Fisher, please go ahead.

Thank you, Laura. Hello, everyone. Thank you all for joining us on our first quarter 2025 earnings conference call. Before we begin, I would like to note that the financial information on the non-GAAP numbers in this release are presented on a continuing operation basis and in RMD. unless otherwise stated. And let me begin with our latest student updates. We are pleased to report a strong performance in the first quarter of 2025. This quarter has marked significant progress and innovation, particularly with the successful trial and implementation of our AI-powered product upgrades. facilitating teaching and learning efficiency by delivering intelligent, adaptive solutions that enhance daily instructional decision-making, providing more personalized learning experiences for students. During the quarter, we have seen a strong growth in both new contract acquisitions and the expansion of our existing customer base. Our staff subscription business has risen as more schools and educational organizations recognize the value of our AI-powered solutions, showcase a strong retention rate, and increase adoption of our value-added offerings. In the first quarter of 2025, we recorded net revenues of RMB 21.7 million, representing a 15% decrease from the previous quarter last year, which was primarily due to the reduction in net revenues from district-level projects. as we prioritize our resources on school-based projects on a subscription model, which generally have longer revenue recognition periods. As we improve operational efficiency, operating expenses reduced by 42.6% compared to the same quarter last year, resulting in a 44.8% reduction in net loss on a gap basis. Looking ahead, we will remain vigilant in monitoring our financial performance and making strategic decisions to ensure a long-term success and sustainability of our business. And now let me go into more details. During the quarter, our district-level teaching and learning staff business remained steady, continuously contributing an important portion in revenue recognition. Recently, we successfully supported Shanghai Minhang District to launch a specialized generative intelligent agent cluster and demonstrated it at the Shanghai Education Expo. The intelligent agent integrates universal large language models, leverage vast real-time teaching and learning database in Minhang District, and integrating with the localized technology system, aiming to provide precise, contextualized support for learners and educators, so that we can transform education services from knowledge transmitters to competency development. And following the successful launch of the new AI-powered solution in Shanghai Minhang, we are confident that this offering will expand to other regions and serve as a model for potential partners pursuing transformative learning technologies. This initiative demonstrates our expertise in educational innovation by delivering adaptable, high-value AI-powered solutions that enhance daily instructional decision-making, improve teaching and learning efficiency, and promote high-quality regional education development. And our school-based subscription business has sustained a steady growth driven by a year-over-year increase in newly subscribed students This momentum underscores its strategic importance as a critical contributor and integral component of our overall revenue, which will continue to prioritize resource allocation. And during the quarter, we have seen heightened demand and enthusiasm for our offerings in our partner schools, reflecting in a higher retention rate and increased adoption of our expandable value-added services. Over 90% of renewal customers opted to continue their subscriptions, with many expanding their service coverage. This strong retention and upselling potential not only reinforce customer engagement and loyalty, but also safeguards the business for long-term sustainable growth. And as for our product and service offerings, have been continuously upgraded with innovation, driving customer satisfaction and business growth. By integrating AI into core teaching and learning scenarios, including lesson planning, in-class interaction, assignment design, automated grading, we have given analysis and personalized learning recommendations. We aim to streamline teachers' workflows, empowering them with evidence-based decisions, and individualize the learning path for each student. Specifically, our intelligent voice and classroom monitoring functions are expected to boost classroom efficiency. A smart companion for teachers, it helps teachers understand students' thinking process and learning states while providing teaching research support. Teachers can interact with their small assistants in real time, analyzing multidimensional data that has students' response time, thinking patterns, as well as learning trajectories, identifying group and individual differences with market-type learning analytics so that evidence-based teaching decisions can be made. Our intelligent solutions can customize classroom exercises and after-school assignments for students based on personalized learning conditions, automatically grade them, and generate some dynamic error correction notebooks, and provide customized problem-solving ideas and follow-up teaching suggestions. These advancements reduce teachers' workloads while enhancing students' learning efficiency and achievement. Today, we have conducted trials in over 52 schools, providing teaching administrators with data-driven management tools covering the entire teaching scenario, as well as demonstrating scalable verification potentials of this model. And in terms of distribution channels, our market channel marketing efforts and strategic partnerships have further solidified our presence in high-growth markets. We have consistently prioritized strategic market penetration by diversifying our distribution methods and fostering collaboration. By aligning product development with emerging educational trends and enhancing our distribution network, we have improved product delivery and customer engagement, leveraged data analytics for targeted marketing and deeper customer insights. And now I will turn the call over to Lara to walk you through our latest financial performance. Thank you.