Gaotu Techedu Inc.

Hello ladies and gentlemen, thank you for standing by and welcome to the GAL 2 TechEDU Inc. first quarter 2026 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. Katherine Chen, Head of Invalid Relations. Please go ahead, Katherine.

Thank you, operator. Good evening, everyone. Thank you for joining GAL2's first quarter 2026 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 is available on the company's IR website at ir.gal2.ca, as well as through PR newspaper services. Joining the call with me tonight from GAL2 Senior Management is Mr. Larry Chen. Gaotu's founder, chairman, and chief executive officer, Mr. Robin Luo, Gaotu's chief operating officer, Mr. Mike Xu, Gaotu's head of strategy, and Ms. Weila Yao, Gaotu's senior finance director. Larry will first begin with the quarter's business highlights and strategies, followed by Robin's overview of our operational performance. and we will finish with a detailed discussion of our financial performance by WELA. Following their prepared remarks, we'll open the floor to questions from analysts. Robin and Mike will address analysts' questions during the Q&A session. Before we begin, I'd like to remind you that this conference call will contain forward-looking statements made under the safe harbor position 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. 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 obligations 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 a definition of non-GAAP financial measures and reconciliation of GAAP to non-GAAP financial results, please refer to the 2026 Earnings Release published earlier today. As a reminder, this conference is being recorded. In addition, a live and RPAP webcast of this conference call will be available on GALT'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 first quarter 2026 earnings conference call. I would like to take this opportunity to thank each of you for your interest and support for GAL2. Before I start, please be reminded that all financial figures discussed today are in IMB, unless stated otherwise. The first quarter of 2026 marked another important step in strengthening GoTo's operational quality and long-term capabilities under our profitable growth strategy. revenue grew by 13.2% year-over-year to approximately $1.7 billion, with non-GAAP operating profits and net profits reaching $13.8 million and $41.4 million, respectively. After excluding the impacts of share repurchases, our cash position increased by 69.7 million year-over-year, providing strong support for our ongoing investments in products, technology, and talents to drive sustainable long-term growth. The value of education is not limited to short-term outcomes, but rather compounds over time through sustained engagement, consistent effort, and incremental progress. The same is true in business. What drives long-term resilience through cycles is not skill alone, But the organizational capabilities, product strength, and the user trust build over time. With this in mind, while we remain focused on delivering near-term results, we are equally committed to advancing user value, organizational efficiency, and operational resilience across our business fundamentals. Next, I would like to walk you through our strategic priorities and key developments this quarter across five areas. First, profitable growth is moving beyond the periodic results toward a more stable, sustainable operational capability. In recent quarters, we have continued to optimize our operating structure, focusing on balancing business health, operating efficiency, and long-term returns. Our mature online business has built robust scalable capabilities across cross-operations, teaching services, user engagement, and organizational collaboration, and continue to demonstrate resilient profitability this quarter. As we navigate a dynamic market environment in 2026, we will maintain our disciplined operating approach, improving resource education efficiency and execution precision so that growth is built on an increasingly healthy and sustainable foundation. Based on our current business momentum and operating performance, we remain confident in delivering continued improvement in operational quality throughout the year. Second, AI is evolving from a mere productivity tool into a key fundamental capability powering GoTo's scalable growth and organizational transformation. In recent period, we have progressively integrated AI across curriculum, development, content creation, operational collaboration, and learning services. Within our curriculum development system, for example, AI is enhancing our question banks and knowledge graphs, supporting teaching and formative assessment, and assisting teachers and curriculum teams with repetitive standardized tasks. Before that, we are weaving AI into our business workflows, operational processes, and organizational systems to serve as a core infrastructure for operational decision-making and cross-functional collaboration. On the user side, we continue to explore a spectrum of AI-powered product formats tailored to diverse learning needs, including learning tools, AI enhanced the one-on-one tutoring scenarios, and AI integrated online in large class courses. As AI becomes more deeply embedded in our core business, we are establishing a skill with AI framework that allows our best teachers curriculum expertise and the proven service models to scale with greater efficiency, enhancing user experience while unlocking organizational and operational leverage. Third, user needs and learning experience remain the fundamental drivers behind our continuous product and service integration and guide our efforts to strengthen talent development initiatives. On the teaching services front, we continue to optimize our feedback mechanisms and the service framework. Take our online large class as an example. By deepening collaboration across instructors, tutors, and the curriculum teams, we have formed a weekly feedback loop that captures student pain points. progress variations, and classroom feedbacks in real time. These learning insights flow directly back into course integration and service support, keeping content closely aligned with students' actual learning pace. At the same time, we continue to reinforce our talent pipeline. This spring, we expanded our campus recruitment and early career talent development efforts with campus engagement across prestigious domestic and international universities, including Oxford, Cambridge, Tsinghua, and Peking University. By attracting individuals who are genuinely passionate about education and demonstrate the motivation and the potential to grow with us, We are building a strong tenant foundation to support our long-term capabilities in product innovation, teaching excellence, and organizational development. Fourth, Our offline service offerings are progressing in line with expectations and are increasingly demonstrating their value in enhancing user engagement, building brand equity, and driving long-term value creation. For example, our offline educational services for college students now span seven cities. where we have developed durable service and engagement capabilities centered around college students' evolving needs. Our Zhengzhou Dream Center has spent the past year validating an integrated service model that brings casual learning, daily life services, and personal development, achieving notably high utilization rates in the process. These enriched service touchpoints have also driven meaningful improvements in user satisfaction and brand awareness. We plan to extend this model to Wuhan in 2026. Additionally, we will further expand our offline presence across all business segments, sharpening our service delivery capabilities to better align with these cohorts' diverse learning stages, growth objectives, and service needs. This will comprehensively elevate the learning experience, deepen user trust, and enhance brand value throughout the user's lifelong learning journey. We believe long-term value goes beyond financial results. It's equally reflected in our ability to create lasting social impact for all our shareholders and the society. Efficient, disciplined capital allocation. We remain committed to sharing the benefits of the company's long-term development with our shareholders. As of June 1st, 2026, we had repurchased a total of 33.1 million ADICs for approximately 704 million RMB. In addition, we continue to invest in initiatives that broaden access to quality education. For example, GoTo Foundation, the My AI Science class project has reached 33 rural schools across seven provinces and empowered more than 23,000 teachers. We plan to expand its coverage, hold regular on-site classes in Baishou, and improve the accessibility of educational resources in underserved regions. We believe technology should not only improve efficiency, but also help bridge regional gaps in high-quality educational resources and create broader social value. enduring success comes from unwavering commitment, and future momentum begins with the steps we take today. Looking ahead, we will continue to advance with focus and resolve, leveraging technology and innovation to expand the boundaries of education and further strengthening our business foundations through disciplined We are fully confident in our capability to accompany and support students throughout their growth journey, creating sustainable long-term value for our users and our shareholders. Thank you very much, everyone. This concludes my prepared remarks. I will now pass the call over to our COO, Robin, to walk you through the quarter's operational performance.