Qudian Inc. American Depositary Shares, each representing one Class A Ordinary Share

Hello, ladies and gentlemen. It's nice to be standing by for QDS Incorporated's first quarter of 2021 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn it all over to our host from QDN. Please go ahead.

Hello, everyone, and welcome to QDS first quarter 2021 earnings conference call. The company's results were issued via news services earlier today and were posted online. You can download the earnings free release and sign up for the company's distribution list by visiting our website at ir.qdm.com. Mr. Mingluo, our founder, chairman, and chief executive officer, and Ms. Cici Zhu, our VP of investor relations, will start the call with prepared remarks, and then we will open the call to Q&A. Before we continue, Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Security Policy Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's 20-app, as spelled with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that CDN's earnings-free release and this conference call includes discussion of unaudited-scale financial information, as well as unaudited non-GAAP financial measures. Previous brief release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. We also posted a slide presentation on our IRR website providing details on our results in the quarter. We will reference those results in our prepared remarks, but will not refer to specific slides during our discussion. I will now turn the call over to our CEO, Ning Luo. Please go ahead.

Hello everyone, I would like to thank you all for joining us on today's call. We kicked off 2021 with a solid first quarter. We greatly improved the quality of our assets while maintaining prudent operations of our cash credit business in light of the ongoing shift in online lending regulations, notably We record a net profit of 478 million RMB for the first quarter compared to a loss in the first quarter last year. Our net assets increased to 12.4 billion RMB and we had approximately 7.3 billion RMB of cash. and cash equivalents and short-term investments at the end of the first quarter. Our strong balance sheet allows us enough funding to invest in new business initiatives which we believe will increase long-term shareholder value. We are very excited about the meaningful progress we have made with our early childhood education business, Wanli Mu Kids. In January, we launched our very first Wanli Mu Kids Center in Xiahen, where our company is headquartered. This center occupies approximately 4,600 square meters. Early feedback has been positive. and we are for going ahead with our plans to expand our national wild footprint in China's large underdeveloped early childhood extracurricular enrichment market. Our mission for Wan Limu Kids Club is to help Chinese kids grow up happy and healthy. We hope to help kids explore the potential in sports, art, and music, truthfully and freely, while also helping children build healthy bodies and minds parallelly. We firmly believe in the great potential of each child For young kids in China, we estimate that there are currently about 160 million kids between the age of 0 and 9 in China, and we expect the penetration rate of HCL enrichment services as well as household spending in this area will grow. One of the key business in the world to define kids special curriculum education. We consistently strive to differentiate ourselves from others and we believe one of the key value proposition for parents and kids is very clear. Firstly, we guarantee a health-free refund policy as opposed to non-refundable lump sum prepayments required by many other institutions. Secondly, we provide comprehensive program offerings in one place to optimal prices, saving parents the time and money spent in taking kids to different places. Thirdly, we have well-trained instructors in each of our centers with standardized teaching procedures and we also have a centralized teaching, research, and development team. Last but not least, we provide state-of-the-art high-tech facilities to create a safe and comfortable environment in each center. With our customer-mover advantages, we built strong energy barriers in two aspects, location and talent. There are limited good and convenient locations near core urban residential areas. And once we secure the right of use at these locations, others cannot easily find a similar location there. On the other hand, as talents are at the core of this business, we have attracted over 50 excellent entrepreneurs who have run education business with annual revenue of over 100 million RMB to join us as equity partners. Specifically, our equity partners will actively participate in our frontline business operations. Our senior management team and employees are highly motivated and share the same vision, adding critical value to the success of this new business. In conclusion, as we venture further into 2021, we remain cautious in our credit loan business operations. striving to develop our early childhood education business. I'm also happy to share with you that we had our internal kickoff meeting today attended by over 800 employees and the core management team. Marking Wanli Mu-Ki's official move to the national stage for Xiamen Backed by our shared vision, we look forward to joining hands with our core management team and employees to build a nationwide extra curricular platform in China to help tens of millions of kids grow up happy and healthy. Now, I would like to turn the call over to Sissi for more details. on our results.