17 Education & Technology Group Inc.

Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17 AgTech's second quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be 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 Zhao, 17 AgTech's 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, Chief Financial Officer, and myself, Investor Relations Manager. Sishi will walk you through our latest business performance and strategic directions, and I will then 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 Security Litigation Reform Act of 1995. These four looking statements are based upon management's current expectations and current market and operating conditions and relate 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, uncertainties or factors is included in the company's filings with the USICC. The company does not undertake any obligation to update any forelooking 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 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 2026 Earnings Conference Call. Before we begin, I would like to note that the financial information and the non-GAAP numbers in this release are presented on a continuing operations basis and in RMB, unless otherwise stated. Let me begin with our second quarter business highlights. We are pleased to report another quarter of strong progress. Net revenues increased 254.6% year-over-year to RMB 90.1 million, bringing first half 2026 net revenues to RMB 189.5 million, up 302.6% from the same period last year. Growth margin expanded to 69.2%, representing a year-over-year improvement of 11.7 percentage points which is driven by the growing contribution of our AI-powered application services and ongoing optimization of our revenue mix. During the quarter, we achieved our first quarterly GAAP and non-GAAP profitability with GAAP net income of RMB 1.1 million and adjusted net income of RMB 4.7 million. We believe these results provide further validation of our strategic transformation into an AI-powered application service provider and demonstrate the improving economics and scalability of our evolving business model. Importantly, this progress was achieved while we continued to invest in AI capabilities, product innovation and the expansion of our application ecosystem. Beyond our financial performance, we also made important progress in advancing our AI application service strategy. Over the past several years, We have built extensive experience serving education scenarios across districts, schools, teachers, and students. With the advancement of AI technologies, we are evolving from traditional digital solutions toward more deeply integrated agentic services. A key milestone during the quarter was the further expansion of our collaboration with the Shanghai Minghang District. Building our longstanding partnership and existing digital teaching infrastructure The latest phase of our collaboration has evolved from SaaS-based services toward agentic services, providing more personalized AI capabilities to teachers and embedding AI more deeply into daily teaching workflows. An important aspect of this evolution is that the procurement model is also evolving. The Minghang Project adopts a service-oriented approach, combining initial System development with ongoing service components linked to actual AI usage. We believe this model provides a potential framework for scaling AI applications in education beyond the traditional one-time software deployments. Meanwhile, this represents an important validation of our strategy, moving AI from a supporting tool towards an intelligent service layer that can actively assist education professionals in real-world scenarios. Another important milestone during the quarter was the introduction of our personalized AI agent for individual teachers. This teacher-facing AI agent is designed to support key teaching workflows, including assessment, content generation, and learning analytics. Specifically, it helps teachers automate tasks such as essay grading and class analysis, generate personalized assessments, and translate learning data into differentiated teaching recommendations. Our vision is not to replace teachers, but to empower educators by combining AI capabilities with teachers' own experience and classroom context. We are also expanding access to teacher-facing AI applications to broaden adoption and gather real-world feedback as we continue to validate product market fit. together with our student-facing personalized learning services and regional AI applications. This expands our AI application capabilities across three core scenarios, education administration, teaching, and personalized learning, marking the establishment of an authentic ecosystem spanning the full workflow of teaching, learning, administration, assessment, and research. Strategically, This three-layer AI agentic system also aligns with the logic of our G-B-C-N synergistic growth flywheel. To further elaborate the integrated ecosystem, our G-N business allows us to validate AI applications at regional scale and establish benchmark use cases in complex education environments. For example, in Ninghang District, our digital teaching systems have already been deployed across more than 3,000 classes with teacher and student coverage of 97.8%. Based on this foundation, we are continuing to upgrade regional AI capabilities from traditional digital tools toward more proactive agentic services. Our B-end business enables us to replicate these capabilities across schools and invest AI into daily teaching workflows, creating scalable pathways for broader adoption. We are also seeing increasing interest from school-based customers in adopting more integrated or AI services, which provides additional opportunities to expand beyond our existing regional deployments. Our CN business, led by Yiqi Aixue, continues to serve as an important commercialization engine delivering personalized AI learning services directly to students and families. Together, these three areas reinforce each other, one another. G validates, B replicates, and C monetizes and scales. The trust, distribution, capabilities, and education insights accumulated across these scenarios continuously strengthen our ability to develop and commercialize AI application services. Turning to our financial position, the improving business performance has also strengthened our financial flexibility. As of the quarter end, we maintained a strong cash position of RMB 456.9 million, providing sufficient resources to support continued investment in AI capabilities, product innovation, and long-term growth opportunities. On September 3, our Board of Directors has authorized a share repurchase program of up to US$10 million worth of its ordinary shares, including in the form of American depository shares, during a 12-month period starting from September 3, 2026, funded from our existing cash balance. The program reflects our confidence in our long-term strategy and our commitment to disciplined capital allocation and the long-term shareholder value creation. Looking ahead, we believe the next stage of growth will come from expanding AI application services across more education scenarios. In the end, we will continue to develop benchmark projects that demonstrate the value of AI in large-scale education environments. In the end, We will continue to productize and replicate proven capabilities across school-based scenarios. In the end, we will continue to enhance personalized AI learning services while exploring additional individual user applications. Through this integrated approach, we aim to create a reinforcing cycle where real education scenarios improve our AI capabilities, and improved AI capabilities create greater value for users. We believe our accumulated education insights, AI capabilities, and a growing application ecosystem provide a strong foundation for continued innovation and long-term value creation. This concludes our business update. I will now turn the call over to Lara to walk you through our financial performance in detail. Thank you.