Gaotu Techedu Inc.

Hello, ladies and gentlemen. Thank you for standing by, and welcome to the GOW2 TechEDU, Inc. Second Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's remarks, there will be a question and answer session. Today's conference call is being recorded. I would now like to turn the conference over to your first speaker today, Ms. Catherine Chen, Head of Investor Relations. Please go ahead, Catherine.

Good evening, everyone. Thank you for joining GAL2's second quarter 2025 earnings conference call. My name is Catherine, and I'll help host the earnings call today. GAL2's earnings release for the quarter was distributed earlier, and it's available on the company's IR website at ir.gal2.cn, as well as through PR Newsletter services. Joining the call with me tonight from Galtooth Senior Management is Mr. Larry Chen, Galtooth's founder, chairman, and chief executive officer, and Ms. Shannon Shen, Galtooth's chief financial officer. Larry will first provide the business highlights for the quarter, and then afterwards, Shannon will discuss our financial performance in more detail. Following their prepared remarks, we'll open the floor to questions from analysts. Before we begin, I'd like to remind you that this conference call will contain forward-looking statements made under the safe harbor provision of the U.S. Private Security 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 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 from those containing any forward-looking statements. Further information regarding this and other risks is included in the company's public filing with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statements except as required under applicable law. During today's call, management will also discuss certain non-GAAP measures for comparison purpose only. For definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results, please refer to our second quarter earnings release published earlier today. As a reminder, this conference is being recorded. In addition, a live and R-type webcast of this conference call will be available on GAL2's IR website. It is now my pleasure to introduce our founder, chairman, and chief executive officer, Larry. Larry, please.

Good evening and good morning, everyone. Thank you for joining us on GAL2's second quarter of fiscal year 2025 earnings conference call. I would like to take this opportunity to express my gratitude to each of you for your interest in and support of GoTo. Before I start, I would like to remind everyone that all financial figures discussed today are quoted in RMB and as stated otherwise. Over the past quarter, we maintained solid growth momentum in our core business while harnessing the power of AI to enhance our service models foster product innovation, and strengthen our organizational capabilities. Together, these efforts are shaping a clear growth trajectory and sustainable competitive advantages. Upholding our user-centric approach, we consistently upgraded our educational products, improved teaching quality, and refined service delivery. Our strategic prioritization and efficient resource allocation have significantly increased per capita productivity. As we progress through 2025, we are steadily elevating our skill of reaching efficiency and user satisfaction. underscoring the resilience and disciplined execution driving our business's high-quality growth. In the second quarter, our revenue increased by 37.6% year-over-year to nearly $1.4 billion, with growth buildings up by 36.2% to approximately $2.3 billion. Thanks to our refined operational execution and improved organizational efficiency, we narrowed our net loss by 50.5% year-on-year on a non-GAAP basis. We achieved a net operating cash inflow of $588.8 million this quarter, an increase of $202.6 million from the same period last year. These results reflect our ability to sustain solid growth momentum while strengthening operational quality and sharpening our competitive edge. Now I'd like to elaborate on this quarter's operating highlights on four fronts. First and foremost, we are deepening our investment in AI, advancing our Always AI, Always AI strategy to upgrade both our teaching models and technology infrastructure. These efforts aim to empower personalized learning at scale and create long-term value. Innovation is part of our DAA and has been a core growth driver since day one. preparing our consistent exploration and the development of emerging technologies, particularly forward-looking AI initiatives. We believe AI-driven education solutions can make personalized, adaptive learning scalable, allowing every learner to enjoy a more efficient, individualized, and high-quality learning experience. Guided by this strategic vision, we have reshaped our previous dual teacher model into an advanced tri-teacher model, integrating instructors, tutors, and AI companions. This new model deeply embeds AI throughout the teaching and course content development process, transforming how education is delivered. For instructors, AI offers the data-driven feedback and a pair of clinical insights to enhance teaching precision and the course quality. For tutors, AI tracks individual students' progress and pinpoints knowledge gaps, increasing tutors' efficiency and enabling them to deliver more professional, personalized learning solutions. For curriculum developers, AI accelerates analysis of learning pathways, optimizing cloud design and content innovation. We continue to increase our investment in AI, centering technology for innovation at our engine, fostered by a strong talent base and a robust ecosystem. More specifically, we will further advance AI innovations in educational use cases, cultivate cross-disciplinary teams featuring both education and AI experts, and integrate our content, data, and partner resources to create a highly efficient, effective, and sustainable AI-empowered learning paradigm. This strategy will also lay the groundwork for high-quality long-term growth and reinforce our commitment to delivering lasting value. While preparing educational innovation, we are also embedding AI technology across our entire corporate operations and management processes as our core engine for boosting organizational productivity. by streamlining procedures and unlocking data-driven insights. We are maximizing operational efficiency and enhancing strategic decision-making. Furthermore, AI empowers every go-to employee to transcend the boundaries, fostering both professional growth and personal fulfillment. Together, we are building long-term markets advantages and a more dynamic organization positioned for sustainable growth. Second, with our user-centric approach firmly in mind, we continue to explore new products and develop innovative models to meet a wide range of learning scenarios and individual needs. We have successfully introduced a series of novel products such as the Gaotu reading app, the legend of Gao Xiaotu, and the model LoveLearning, all designed to spark interest in learning, enhance the learning experience, and boost student engagement. Through ongoing exploration and market validation, we continually strive to find the optimal product market fit, driving expansion across our business. We also launched our AI Flash Learning Model, which uses advanced algorithms to break down knowledge into granular units connected by dynamic knowledge graphs. This approach enables scenario-based bias-sized and interactive learning that measurably improves efficiency and creates more flexible, personalized learning experiences. Third, we remain laser-focused on building a lifelong learning services platform that is accessible and enjoyable for all. Our comprehensive product portfolio spans non-academic tutoring services, professional learning services, educational services for college students and adults, and overseas study programs, both online and offline. We also offer students a selection of large class, small class, and one-on-one sessions for maximum flexibility. Our broad user coverage and robust product matrix comprehensively address diverse learning needs. Strengthening goal-to-brand awareness and reputation through word-of-mouth referrals while also driving cross-category conversions. By consistently amplifying user engagement and long-term educational value, we are steadily building an enduring competitive moat in the education industry. Fourth, we remain committed to fulfilling our social responsibilities, aligning long-term shareholder value with broader societal impact to enhance shareholder returns as of August 25th. 2025, we have allocated a total of nearly $557 million to repurchase approximately 25 million ADS, a strong testament to our persistent focus and long-term competence in creating shareholder value. Moreover, Through the GoTo Foundation, we have partnered with top tier universities to establish career-free basis for college students, a one-stop career support system, encompassing curated internships, opportunities, employment grants, career mentorship programs, and professional development workshops. This end-to-end career accelerator not only empowers the young talent, but also demonstrates our commitment to creating both commercial and social value with a focus on healthy growth at the heart of everything we do and remain confident in going to the future trajectory. Our diverse educational product portfolio, rapidly evolving AI technology capabilities, solid financial foundation, and highly cohesive and effective team position us for continued innovation and success. Our goal is to deliver a best-in-class learning experience to our users while creating long-term shareholder value and advancing both our social impact and commercial success. Thank you very much, everyone. This concludes my prepared remarks. I will now pass the call over to our CFO, Shannon, to walk you through this quarter's financial and operational details.