Gaotu Techedu Inc.

And gentlemen, thank you for standing by and welcome to the Gautu Tech Edu, Inc. Second Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Ms. Sherry Liu, IR Manager of GAL2. Please go ahead.

Thank you very much, operator. Good evening, everyone, and thank you all for joining us tonight for GAL2's second quarter 2022 earnings conference call. GAL2's second quarter earnings release was published earlier today and it's available on the company's IR website at ir.galto.ca. On the call with me tonight, I'm Mr. Larry Chen, GALTO's founder, chairman, and chief executive officer, and Ms. Shannon Shen, GALTO's chief financial officer. Larry will give a general business overview for the quarter, and then Shannon will discuss the financials. Following their prepared remarks, Larry and Shannon will be available for the Q&A session. I will translate for Larry. Before we begin, I'd like to remind you that this conference call will contain 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 beliefs and expectations as well as the current market and operating conditions, and they will involve known or unknown risks and certainties and other factors, all of which are difficult to predict and many of which are beyond the company's control and may cost the company's actual results performance, or achievements to defer maturity from those containing any forward-looking statements. Further information regarding these and other risks is included in the company's filings with the U.S. SBC. The company does not undertake any obligation to update any forward-looking statement except as required under applicable law. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this conference call will be available on GAL2's IR website. It is now my pleasure to introduce Larry. Larry, please go ahead.

Thank you, Sherry. Thank you for joining us on GAL2's second quarter 2022 earnings conference call. Before I start, I would like to remind everyone that all financial information that I mention later is based on IMB and is otherwise noted. During the second quarter of this year, our businesses sustained a healthy and stable growth. Our growth speed nearly doubled compared with that of last quarter, and we successfully generated a positive net of reaching cash flow. Moreover, our net loss substantially narrowed year over year, and this is the third consecutive quarter that we realize non-gap profitability after our business restructuring. Going forward, we will continue to focus on educational services for college students and adults, non-academic tutoring services, and educational content and digitalized learning products. continue to uphold our strategy of profitable growth, and continue to strive for effective growth through improving operational efficiency and optimizing cost structure. During this quarter, our net revenues reached $537.8 million, and our gross billing increased 92.3% quarter-over-quarter to $611.6 million. $7 million to provide a consistent basis on comparison. If we compare continuing businesses, the net revenues of our comparable businesses increased over 30 percent quarter-over-quarter. And the gross billions of comparable businesses have also achieved quarter-over-quarter growth for four consecutive quarters. Our growth margin this quarter was 70.2 percent, slightly higher than that of the same period of last year. Additionally, we also generated a net operating cash flow of 93.8 million, demonstrating that we have achieved effective growth. In the second quarter, we upgraded our user products and made solid progress in our main businesses. Additionally, we saw decent improvement in some of our key operational metrics, including R&I for selling expenses and employee efficiency. We will now briefly talk about the progress we made in each of these areas during the quarter. First, in terms of product upgrades, we have repositioned and transformed the GoToAPP from a course delivery tool into a comprehensive learning content and service platform. To better serve our students, we have equipped our APP with additional tools, including independent mini-programs for key business lines, delay upcoming live streaming announcements, and exam guides, as well as new features such as mock examinations and test banks, teacher-student interactions, and exam reminders. After the upgrade, delayed active users, student retention rate, and the number of newly registered users for our APP all showed gradual increase. The improvement in the level of user engagement demonstrates that our EPP better fulfills students' multilevel and highly diversified learning needs and solidifies our corporate missions as a learner-centric lifelong learning and service platform. By reaching out to a larger and broader customer base, our ATP has delivered better performance in customer retention and generated more synergy among our business lines, thereby expanding our customer acquisition channels while reducing marketing costs. Going forward, we will continue to enhance our products with dedication to make learning a better and a more convenient experience through technology and innovation. Second, we saw stable development for our key businesses during the quarter. In May, we released the GoTo College Students Postgraduate Entrance Examination White Paper, which presents detailed guidance and a numerical analysis that we summarize based on numerous surveys and studies and is intended to help students scientifically prepare for their exams and boost their passing rate. With our continuous pursuit of the best teachers, the best consultants, the best services, according to our survey results, The success rate was more than twice that of the national average for our 2022 class for the national graduate school entrance exam. Additionally, our non-academic tutoring services also delivered solid performance in this quarter. It not only achieved quality of reaching profit, but also contributed a positive net of reaching cash flow. With continuous effort to refine and optimize our products, we are pleased to see a higher user satisfaction. For instance, the retention rate of our programming tutoring business reached almost 80% during this quarter, and its growth billions increased approximately four times quarter-over-quarter. We believe that a high retention rate is a best indicator of users' satisfaction. Going forward, we will continue to optimize our products and services to further increase retention rates and customer satisfaction. Third, ROI for selling expenses and employee efficiency both increased during the quarter. ROI for selling expenses doubled compared with that of the last quarter, and employee efficiency also nearly doubled quarter over quarter. Going forward, guided by our effective growth strategy, we will continue to implement budget control on marketing expenses and continue to further improve ROI for selling expenses and operational efficiency. Lastly, I would like to say that we celebrate GoTo's eighth anniversary on June 16th of this year. In this era of abundant challenges, as well as opportunities. We are well prepared to leverage our strong organizational capability to properly respond and adjust to the ever-changing environment. Although we have restructured our businesses and our organization, we remain true to our preachers' original aspiration to educate. Our starting point has never changed, nor have our hopes for the future of our competence in the education industry. With the emphasis on long-term value, we will continue to deep dive in the education industry, practice corporate social responsibilities as an education company, and actively play a role as advocates, practitioners, and leaders in the cause of education in China over the next eight 18 and even 28 years, we will continue to offer exceptional services, create better products, provide superior content, empower more students, and build a better Go tool. Thank you very much. Now I will pass the call over to our CFO, Shannon, to walk you through our financial and operational details of this quarter.