Gaotu Techedu Inc.

Ladies and gentlemen, thank you for standing by and welcome to the GAL 2 Techadoo Incorporated Second Quarter 2021 Earnings Conference Call. All participants will be in a 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 1 on your touchtone phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded on Wednesday, September 22, 2021. I would now like to hand the conference over to your first speaker today, Ms. Sandy Chin, IR Director of GALTU. Thank you. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us today. GoTo's earnings release was distributed earlier and is available on the company's IR website at ir.cultool.cn. On the call with me are Mr. Larry Chen, GoTo founder, chairman, and chief executive officer, and Mr. 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. I will translate for Larry. Before we begin, I would like to remind you that the conference call contains forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and current market and operating conditions. and related events that involve known or unknown risks, uncertainties, and other factors. All of which are difficult to predict and many of which are beyond a 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 filing with CFPB. The company does not undertake any obligations to update any forward-looking statement except as required and applicable now. As a reminder, this company... Thank you, Sandy. Good evening and good morning to you all. Thank you for joining us today on our second quarter 2021 earnings conference call. In the second quarter of 2021,

our revenue has reached a record high of 2.232 billion RMB. Setting expenses margin this quarter has also substantially dropped and has reverted a similar low level that we recorded a year ago, as we have entirely stopped new fees advertising spending since mid-May this year. As you all know, the education industry has experienced some changes over the past few months. However, as the saying goes, we will begin with the end in mind when setting our strategy. We will always remain committed to our original aspiration of quality education and we will seek to provide authentic educational services. In the meantime, we have actively shouldered our social responsibility as an education company. Ever since May, we have successfully collaborated with multiple nonprofit organizations, including the China Charities Aid Foundation for Children, the China Youth Development Foundation, and the China Next Generation Education Foundation, and the Henan Normal University by donating cash or free courses to aid the revitalization of rural area education and supporting the goal of providing equal access to education for all. To actively respond to the nation's call, we have recently and rapidly adopted the organizational structure of our company to focus on professional education and STEAM education. And we are further exploring opportunities related to digital products and vocational education. First, we will continue to expand our investments in our existing professional education segments, such as financial certificates and the public office exam preparation, while constantly exploring more professional education portfolio opportunities, such as postgraduate exam preparation and overseas study preparation among which some have already achieved a better than industry average ROI. We aim to establish a diversified professional education portfolio with multiple segments. Secondly, we have also increased our investment in our theme education segment, which is developing rapidly. Take programming as an example. Just in July 2001, the conversion rate from trial classes to regular class 4 courses exceeded 30%. Thirdly, we are simultaneously exploring new opportunities in digital products and vocational education, continuing to reinforce the positive effects technology has on education content and education tools, and expanding our footprint across the education sector. We firmly believe that the education market in China will continue to grow steadily. We also firmly believe that the tech education firm will play a very important role in this. We are confident that our company will live up to our responsibilities and mission. Since founding, we have made numerous breakthroughs in the K-12 area, including streamlining an entire industry supply chain, refining standard procedures, training expert teachers at scale, constructing effective service systems, and improving operational efficiencies. all of which helped us accumulate a great deal of insight and expertise. We now plan to replicate the insights and expertise to theme education, professional education, and vocational education, and we sincerely hope that we can soon return to the profitable growth trajectory that we saw back in 2019. As many of you know, Our company experienced a severe cash shortage back in 2016 and 2017 and almost went bankrupt. We call it the darkest moment internally. But it was exactly under that pressure that we came together as a united and effective team with tremendous cohesion and the best execution to build a miraculous business that generates rapid revenue growth and growing profitability over seven consecutive quarters. If 2014 was our first attempt as a startup and 2015 was our second start, then we can say that 2021 is our third start. As someone who has worked in the education industry for 33 years, I believe we should always have love for our family and our country. Always keep the end goal of education in mind. Always firmly believe that education is a noble profession and always have faith that the future ahead is bright, both for our industry and our society. Now I will pass the call over to our CFO, Shannon, to walk you through our financial and operational details.