Kuke Music Holding Limited

Good morning and good evening, ladies and gentlemen. Welcome to KUKA Music Holding Limited first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question and answer session after management's prepared remarks. I will now turn the call over to the first speaker today, Ms. Jane Zuo, Investor Relations Director of KUKA Music Holding Limited. Please go ahead, ma'am.

Thank you, Operator. Hello, everyone. Welcome to our first quarter 2021 earnings call. On the call with me today are Mr. He Yu, founder, chairman, and CEO, Mrs. Patricia Sun, president, and Mr. Tony Chen, CFO of KUKA Music. Mr. Yu and Mrs. Sun will review our business operations first, and then Tony will discuss our financial details. Afterwards, we'll take questions from the audience. Before we start, Please note that this call may contain forward-looking statements made pursuant to the safe harbor provision for the Private Security Instigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations implied by those forward-looking statements. All forward-looking statements are expressively qualified in their entirety by the cautionary statement, risk factors, and the health of the company's filing with the SEC. The company undertakes no duty to revise or update any forward-looking statements or selected events or circumstances after the date of this conference call. As a reminder, this conference call is being recorded. In addition, a live and archived webcast of conference call will be available on KUKA Investor Relations website at ir.kuka.com. You can check out our full earnings release on our IR website as well. It's now my pleasure to introduce Mr. He Yu, founder, chairman, and CEO of KUKA Music.

Okay, thank you, Jen. Good evening and good morning, everyone. Thanks for joining us, and welcome to our first quarter earnings call. In our first quarter, we maintained a strong revenue growth as we adapted to educational policy changes. Our total revenue grew 85% year-over-year to RMB 11.3%. by our smart music education business, which increased 7.9 times from the same period last year. This shows our ability to adapt to the market trends, improve our technology, expand our educational content and digital assets, and maintain our deep relationships with good world famous music labels and publishers. So let me tell more about current industry environment and its impact on our business. 2021 is a year of economic recovery. As more students back to school, our smart music education business continues to benefit from growing demand in this expanding market. At the end of the first quarter, we had over 11,000 cookie-smart pianos in the classrooms of over 2,500 kindergartens with over 38,000 paying students using our cookie systems. In addition to the economic recovery, government policy will create more demand for music education services. China's Ministry of Education has a new directive for primary school and secondary schools to upgrade their lessons to provide more arts education for students. As a result, music classes will need to provide better resources to combine music knowledge with the general introduction of instruments. This gives us an opportunity to provide better music education services with our advantage in technology, music licensing, and deep industry partnerships. We expect the music education segment to be an important growth driver for our going forward. Next, I will pass it over to our president of Cook Music. Patricia will give more highlights.