New Oriental Education & Technology Group, Inc.

Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Ms. Cici Zhao. Thank you. Please go ahead.

Thank you. Hello, everyone, and welcome to New Oriental's second fiscal quarter 2026 earnings conference call. Our financial results for the bid period were released earlier today and are available on the company's website as well as NewsWare services. Today, Stephen Young, Executive President and Chief Financial Officer, and I will share New Rental's latest earnings results and business updates in detail with you. After that, Stephen and I will be available to answer your questions. Before we continue, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public findings with ASCC. New Oriental does not undertake any obligation to update any forward-looking statements, except as required under applicable law. As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on New Oriental's Investor Relations website at investor.neworiental.org. I will now first turn the call over to Mr. Yang. Stephen, please go ahead.

Thank you, Cici. Hello, everyone, and thank you for joining us on the call. I'm pleased to report a strong set of results for the second fiscal quarter of 2026. Our continued focus on operational efficiency and disciplined resource management has been a key driver of our solid performance and continues to support our path to sustainable profitability. We're delighted to see strong profit growth accompanied by a significant improvement in non-GAAP operating margin, up more than 4 percentage points. Again, exceeded our expectations. This quarter, total net revenue grew 14.7% year-over-year to 1.19% Non-GAAP operating income more than tripled, rising 206.9% to $89.1 million. Non-GAAP net income attributable to New Oriental increased 68.6% to $72.9 million. Our core business remains steady, and I'm pleased to share that our new initiatives are gaining traction and making meaningful contribution to the group's overall performance. For the second physical quarter, our K-9 new educational business and high school tutoring business reported accelerated year-over-year revenue growth, outpacing the previous quarter. Overseas related businesses have shown resilience delivered modest revenue growth despite the ongoing macroeconomy headwind, exceeding our earlier conservative expectations. Overseas tax practice recorded the revenue increase of 4% year-over-year. Overseas study consulting business recorded a slightly decrease of about 3% year-over-year. Our adults and university students business recorded the revenue increase of 13% year-over-year. As for our continued investments in new education initiatives, including non-academic tutoring and our intelligent learning system and devices, deliver solid, sustainable results. Revenue from this business grew 22% year-over-year this quarter. Our non-academic tutoring business has shown being rolled out to around 60 existencies. Market penetration has grown steadily Particularly across high-tier cities, the top 10 cities contribute over 60% of the revenue. As for our intelligence learning system and device business, that has been launched in around 60 cities. We're encouraged by improved customer retention and scalability of the new initiative. The top 10 cities contribute over 50% of this business. Turning to our integrated tourism-related business, our domestic and international study tours and research camp for K-12 and university students were held in 55 cities across China, where the top 10 cities contribute over 50% of the revenue. In parallel, our newly launched tourism offering for middle-aged and senior citizens have been well-received now available in 30 key provinces in international markets. We've expanded our product portfolio to include culture travel, China study tour, global study tour, and camp education, all designed to deliver enriching experience through culture and knowledge sharing and personal growth. We're now also exploring opportunities in the health and wellness sector for seniors. We'll patent We'll partner with the over 30 health and wellness spaces in locations such as Hainan, Yunnan, and Guangxi, piloting the segment with a light asset model. With regards to our OMO system, our efforts in developing and revamping our online-merging offline teaching platform continues. These efforts aim to deliver more advanced and diversified education service to our customers of all ages. A total of $28.4 million has been invested during this quarter to upgrade and maintain our OMO teaching platforms. Beyond OMO, we continue to focus on our venture in AI. Encouraged by the positive market feedback, we have been and will continue to refine and embed AI across our offerings to strengthen New Oriental's core capabilities. Simultaneously, we're also leveraging AI to streamline internal operations, thereby boosting efficiency and providing enhanced support for our teaching staff. As an industry leader, we're dedicated to driving long-term revenue growth through dual focus on products in innovation and operational efficiency. In upcoming quarters, we look forward to sharing tangible results and positive highlights on performance that are backed by our investment in AI. Now, turning to the Easterby's performance, I'm pleased to share that during the reporting period, Easterby remained customer-centric and made strong progress in both product development and supply chain enhancement. Easter by has expanded beyond its original focus on fresh foods and snacks to offer a broader, more diversified product range. As of the end of the period, private label SPUs reached 801. New categories include seafood, health care products, kitchen condiments, meat, eggs, dairy, and personal care household and cleaning items. paper goods, home textiles, apparel, and underwear. These offerings are thoughtfully created to meet customers' growing demands to health, quality of life, and convenience. They've contributed to both sales and profit growth to the group. While further optimizing its product mix, beyond expanding SPUs, East By also focused on products iteration, cost efficiency, and targeted marketing to build blockbuster products that resonate strongly with the customers. At the same time, Easterby began exploring offline channels, leveraging strong brand recognition, and new oriental learning center network. With the vending machine model now profitable in select cities, we plan to scale this initiative nationwide. All in all, We are pleased to see East Dubai refocused and back on track, making a positive contribution to the group, both top line and bottom line. We expect East Dubai to contribute more revenue and profit to the group in future, while continuously enhancing our brand influence. Now, I will turn the call over to Cici to share with you about the key financials. Please go ahead, Cici.