Gaotu Techedu Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the GSX-Pekadu Inc. Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded on March 3rd of 2021. I would now like to turn the conference over to your first speaker today, Ms. Sandy Chin, IR Senior Manager of GSX. Thank you. Please go ahead.

Thank you, Sarah. Hello, everyone, and thank you for joining us today. GSX earnings relief was distributed earlier and is available on the company's IR website. On the call with me today are Mr. Larry Chen, GSX founder, chairman, and chief executive officer, and Ms. Shannon Shen, chief financial officer. Larry will give a general overview, and then Shannon will discuss the financials. Following the prepared remarks, Larry and Shannon will be available to answer your questions. Before we begin, I would like to remind you that this conference call contains forward-looking statements as defined in the U.S. Private Security Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions and relates to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and many of which are beyond the company's control and 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 FTC. The company 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 live in-archive of this conference call will be available on GSX Investor Relations website at gsx.investorrooms.com. You are also welcome to subscribe to our quarterly investor newsletters through the same website. It is now my pleasure to introduce Levi. Levi, please go ahead.

Thank you, Sandy. Good evening and good morning to you all. Thank you for joining us today on our fourth quarter and four-year 2020 earnings call. As you know, Net operating cash flow is an essential indicator to measure the operating efficiency of an online education company. In the fourth quarter, we achieved net operating cash inflow of RMB 636 million, and for the full year 2020, our net operating cash flow remained positive at RMB 603 million. In December 2020, we successfully completed a private placement raising U.S. dollar $870 million as of December 31st. Our cash and cash equivalent short-term investments and long-term investments totaled RMB $8.22 billion, a significant increase from RMB $2.74 billion at the end of 2019. In the fourth quarter, our selling expenses totaled RMB 1,798 million, a 307% year-over-year increase, deducting 472 million in employee compensation and miscellaneous expenses and $59 million in branding activities takes us to traffic acquisition expenses of $1,267 million. Since our gross billions for the fourth quarter were RMB $3.15 billion, the corresponding ROI kept us in a superior position in the industry. Our selling expenses in the fourth quarter decreased by RMB 257 million, or 12.5% from the third quarter. We moderately controlled our traffic acquisition expenses because we firmly believe that good education takes time and should be full of care and love. premium, respectable, and sustainable education is never about short-sighted rates to expand, but should embrace great teachers, high-quality courses, caring services, effective learning results, and excellent reputation. I have always been reminding my team that when we saw the gigantic capital injections into our industry, the massive marketing campaigns that followed. and the irrational rates by some players to scale their businesses at any cost. We should always keep calm and stay true to our original mission, which is to focus on making education better through technology, focus on recruiting and training the best instructors, focus on providing the best and most caring education, focus on offering the most satisfying services to each student and each parent, and focus on pursuing the right goals regardless of our shape, with a long-term and sustainable view. In 2021, we will continue to expand our recruiting and training of STAR instructors, expand our efforts on content, product and technology development, maintain an effective growth strategy on a lifetime value basis, optimize our operational efficiency and effectiveness, and further improve our organizational capabilities and efficiency. We are confident that we will continue to excel in terms of operating efficiency in 2021. Now, I will pass the call over to our CFO, Shannon, to walk you through our financial and operational details.