New Oriental Education & Technology Group, Inc.

Good evening and thank you for standing by for New Oriental's FY2026 Fourth Quarter Results Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I'd like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao.

Thank you. Hello, everyone, and welcome to New Oriental's fourth fiscal quarter 2026 earnings conference call. Our financial results for the period were released earlier today and are available on the company's website as well as on NewsWare services. Today, Stephen Yang, Executive President and Chief Financial Officer, and I will share New Oriental'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 Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our results may be materially different from the view expressed today. A number of potential risks and certainties are outlined in our public filings with the SEC. 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, Sisi. Hello, everyone, and thank you for joining us on the call. We're pleased to bring you another quarter of remarkable results, with revenue and income growth that have once again exceeded expectations. Our performance this quarter reflects not only the continued strength of our core business, but also the outstanding contributions of EastBuy and our new creative ventures. Taken together, these assets have energized our strategic ambitions as we look ahead with confidence in the year to come. We're particularly pleased that despite the economic headwinds and external challenges, our relentless efforts to deliver the very best to our customers are yielding strong results. In this quarter, total net revenue rose 23% year-over-year to $1,529.5 million. Non-GAAP operating income rose 34.7% to $110 million, while operating margins for both the quarter and the fiscal year 2026 showed healthy increments. Both our core business and new initiatives continue to score meaningful attractions this quarter. Breaking it down, Overseas Test Prep Business recorded the revenue increase of 6% year-over-year for the fourth quarter of 2016. Overseas Study Consulting Business recorded the revenue increase of about 1% year-over-year for this quarter. Adults and University Students Business recorded the revenue increase of 29% year-over-year for this quarter. Our non-organic children's businesses have been rolled out to around 60 existing cities. Market penetration has signed steady growth particularly across high tier cities. The top 10 cities contributed around 60% of this business. Our intelligent learning system and device business that leveraged our teaching expertise and data analytics to provide adaptive learning solutions has been launched in around 60 cities. We're encouraged by the enhanced customer retention and scalability, with top 10 cities contributing over 50% of this business. In summary, our new educational business initiatives delivered a 25% year-over-year revenue increase in this quarter. Moving on to our integrated tourism-related business. Encompassing study tours and research camps for K-12 and university students, as well as cultural tours for middle-aged and senior travelers. For cultural travel, Chinese global study tour and camp education products continue to deliver meaningful value to customers through knowledge enrichment, personal growth, and deep cultural dimensions. Our student programs now operate in about 55 cities nationwide, where the top 10 cities generate over 50% of the segmented revenue. And our premium adult tourism offerings span around 30 provinces domestically and select international destinations. We're also expanding into senior health and wellness tourism with an asset-light model. 14 partnerships with over 45 wellness facilities across key destinations, including Hainan, Yunnan, and Guangxi. With our OMO teaching platform, we have continued to invest in revamping and upgrading the system. During this quarter, we invested $31.2 million to improve and maintain our OMO platform, which enabled us to provide and interrupt and other high-quality instructions to students that cater to their individual learning needs. Beyond upgrading the OMO system, we continue to embed AI across our ecosystem, including driving product innovation and transforming our internal operations to enhance capabilities, improve efficiency and provide greater support to our staff. In terms of product innovation, we are proud to share that Our proprietary AI-powered personalized learning platform has successfully completed its first phase of deployment, achieving meaningful sales with just 25 days of inauguration. Unlike a general proposed large language model, our AI platform is built on a highly specialized vertical learning system, purposely designed to reflect rooted assets of new rentals. This encouraging initial performance is the validation of the platform's market traction and product market feed. We look forward to propelling the development of the AI-driven products and solutions to further broaden our operational excellence and market impact. Turning to the Easterbyes' fiscal year 2026 performance, Easterbyes remains firmly committed to the three high product standards. high safety standards, high product quality, and high cost performance, while delivering attentive customer service for families. On the platform front, Easterby made a significant stride in its multi-platform live streaming strategy on Douyin, launching 11 new vertical live streaming accounts and extending its channel matrix to 18 channels in total. Easterby also launched a suite of innovative operational programs, including streamer recruitment campaigns and annual supplier summits that have proven effective to strengthen internal operational teams, deepen long-term strategic partnerships with suppliers, and elevate customer engagement. Charting a new course In fiscal year 2027, East Dubai will accelerate its extension of its private label portfolio across food and daily necessities, scale up product R&D and quality control to uphold three high standards, and advance its app membership ecosystem. By leveraging new Oriental's extensive extensive nationwide network, East Dubai will further expand its offline experience footprint to engage a broader customer base, collectively optimizing operational efficiency. Its supply chain network is laying a solid foundation for sustainable long-term growth. Now I would like to share the latest updates of an exciting new strategic initiative that we have been piloting since the last quarter. New Oriental Home, a platform designed to serve the entire family unit from children to parents to seniors through a full life cycle, full spectrum approach. New Oriental Home assembled our education service, Easter by offerings and cultural tourism products into one unified ecosystem in a single app. Families can conveniently access, manage, and redeem service tailored to each member, enable seamless cross-category engagement, and deeper household-level relationships. The platform has demonstrated strong early traction with scenario-based marketing and integrated service, anchoring solid user activation, retention, and acquisition. Notably, we have seen retention for Grade 7 students increase by 10 basis points from summer to autumn this year. Customers finally earn and redeem experience rewarding and are engaged to explore a broader range of offerings within our ecosystem, thereby lowering our cost of spend on customer acquisition as well. This integrated loyalty framework has been particularly effective, as it not only strengthens retention, but also transforms customer engagement into actionable data, enabling us to create incentives for our customers and staff. At the same time, the various synergies new rental homes generate across all business lines, including eSpy, combined with highly personalized offerings have overall accelerated cross-selling, improved commission efficiency, and optimized overall operating cost. We have launched this pilot program in 69 cities as test beds, including Hangzhou, Suzhou, Xi'an, and Wuhan, with over 950,000 registered families by the end of this quarter. The platform has achieved cumulative activity participation rates of around 70%, and the latest campaign activation rate is 23%, significantly outperforming many public domain e-commerce platforms. These results affirm the high reach and precision advantage of our education-focused private domain ecosystem, and we look forward to building on the promising momentum in the quarter ahead. I will turn the call over to Sisi to share with you about the key financials. Sisi, please go ahead.