17 Education & Technology Group Inc.

Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17FX Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management prepare 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. Lara Chow, 17FX Investor Relations Manager. Please proceed, Lara.

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. Sishi Zhou, the Acting Chief Financial Officer, and myself, Investor Relations Manager. Sishi will walk you through our latest business performance and strategies, and I will discuss our financial performance in more detail. After the prepared remarks, 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, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond a company's control. These risks may cause the company's actual results, performance, or achievements to differ materially. Further information regarding these and other factors, uncertainties, or factors is included in a company's filings with the USSEC. The company does not undertake any obligation to update any forwarding 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 Acting Chief Financial Officer to review some of our business development and strategic direction. Sishi, please go ahead.

Thank you, Lara. Hello, everyone. Thank you all for joining us on our second quarter 2025 Earnings Conference Call. Before we begin, I would like to note that the financial information and non-GAAP numbers in this release are presented on a continuing operation basis and are in IMB, unless otherwise stated. Let me begin with our latest business updates. We are pleased to announce a healthy financial result for the second quarter of 2025. During this period, we sustained our business momentum and achieved consistent progress in our core operations. with a quarter-on-quarter top-line growth of 17.3%. Our commitment to cost control restored the gross margin to a normalized level of 57.5% in Q2. Additionally, as we improved our operating efficiency continuously, operating expenses decreased by 39%, leading to a 53.4% reduction in net loss on a gap basis. compared to the same period last year. During the quarter, we are pleased to see positive growth viewed by our efforts and innovations. Notably, our focus on the school-based subscription model has led to an encouraging year-over-year and quarter-over-quarter growth. Meanwhile, our district-level teaching and learning SaaS business remains a key component of our operations, continuing to be a vital revenue contributor in the quarter too. The company advanced its business by continuously optimizing and innovating AI technology across our product portfolios to constantly enhance customer satisfaction and customer engagement. We launched the Yiqi Tongxue, meaning classmates standing together, intelligent agents, and successfully upgraded AI solutions in Shanghai Minhang District during this quarter. Leverage our strong brand endorsements and customer loyalty from our district projects and subscription model, as well as capitalizing on the emerging market opportunities and evolving customer needs. We will continuously strive to explore product innovation and new growth opportunities to extend our reach to a broader customer base so that we can drive sustainable growth. Now let me go into more details. In the second quarter, our district-level teaching and learning fast business continued to contribute an important portion in revenue, while school-based subscription business maintained a strong growth momentum. The company continued to prioritize resource allocation towards the subscription model. We observed increased demands and enthusiasm for our service offerings in partner schools. Underscoring its strategic importance, and integral role in our overall strategy for sustainable growth. Meanwhile, in response to the advocated trend of integrating AI into the entire education process, we strive to upgrade AI capabilities of our product offerings to deliver more efficient, satisfying solutions to customers. This quarter, in addition to upgrading AI solutions in Shanghai Minhang District, which accelerated the digital transformation in regional education, we launched the Yiqi Tongxue. It is an intelligent agent built on 14 years of teaching experiences and extensive behavioral data, and centered on the core concepts of intelligent teaching and personalized learning. Representing a pivotal step in our AI-driven transformation, Yiqi Tongxue serves as a teaching assistant that alleviates teachers' workload, a smart learning companion that supports students in targeted learning, and functions as a data intelligent brain that provides data support for managers and facilitates efficient decision making. The enhancement of these AI capabilities further strengthens the market competitiveness of our product and provides opportunities to reach a broader customer base. Capitalizing our strong brand endorsements accumulated from district projects and a subscription model, we will commit to further product innovation based on existing successful AI initiatives. Resources will be allocated to explore potential integration of AI capabilities into the consumer CN market to capture new growth opportunities. During the period, we focused on strategic market penetration through diversified channels and enhanced customer acquisition efficiency. The strategy was highlighted at the recent Global Smart Education Conference, where we partnered with the National Engineering Research Center for Intelligent Technology and Applications in Internet Education to launch the Public Welfare Initiative, AI empowerment for hundreds of districts, thousands of schools, and tens of thousands of teachers. This initiative provides comprehensive support in terms of hardware, software, content, and services, facilitating in-depth AI integration into teaching management and evaluation. We believe large-scale rollout of this initiative will further deepen our market presence by driving widespread adoption of our solutions among teachers and students. It will also enhance our credibility by building a strengthened ecosystem and fostering long-term engagement. Now, I will turn the call over to Lara to walk you through our latest financial performance. Thank you.