TAL Education Group

Ladies and gentlemen, thank you for standing by and welcome to Q4 and FY 2020 TAL Education Group Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I'd like to head the conference over to our first speaker today, Ko Yan, IR Director of TAL. Thank you. Please go ahead.

Thanks, operator. Thank you all for joining us today for TAL Education Group's Fourth Fiscal Quarter and Fiscal Year 2020 Earnings Conference Call. The earnings release was distributed earlier today and you may find a copy on the company's IR website or through the news web. During this call, you will hear from Chief Financial Officer, Mr. Rong Luo, Linda Ke, Vice President of Finance, and myself, IR of Pulse. Following the prepared remarks, Mr. Luo and Ms. Ke will be available to answer your questions. Before we continue, please note that the discussions today will contain overlooking statements made under the safe harbor provisions of the U.S. private Securities Litigation Reform Act of 1995. Former looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in the public findings with SEC. For more information about these risks and uncertainties, please refer to our findings with the SEC. Also, our earnings release in this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures. I would like now to turn the call over to Mr. Rong Luo. Rong, please.

Thank you, Echo. Good evening and good morning to you all. Thank you for joining us today on this earning call. Before I reflect on our company performance, please allow me to say a few words about the current extraordinary time in China and worldwide. We would like to express our sincere sadness for the great loss of life and our sympathy to those who lost their loved ones and to all the others who have directly suffered from this tragic pandemic. We also extend our deep gratitude and appreciation to people from all walks of life, including our employees, who have been working hard and doing absolutely everything to fight against this epidemic. Our first fiscal quarter revenue performance was impacted by the outbreak of COVID-19 in China and our precautionary measures with respect to the offline business. The negative impact on our offline business was partially offset by the growth in student enrollment in online courses and related revenues for the courses. Net revenue growth in the fourth quarter was 18% year-over-year in U.S. dollar terms to U.S. dollar $857.7 million and 21% in IRB terms, which is in line with our forecast reflected in our pre-announcement on February 28th. After the outbreak of COVID-19, total normal price long-term courses student enrollments increased by 56.6% year over year, mostly driven by online enrollment, as well as trust Pell small class. Non-GAAP loss from operations was US$41.3 million, compared to GAAP income from operations of US$114.7 million in the same period of prior year. Non-GAAP loss from operations was US$8.4 million, compared to Non-GAAP income from operations of US$137 million in the same year-ago period. As we previously announced on April 7, we discovered certain employees wrongdoing in relation to the like-class business in our routine internal auditing process. There was a total revenue impact of around US dollars 86.1 million or RMB 602.6 million in the first three quarters of fiscal 2020, as well as corresponding impacts to some other financial metrics of each quarter of fiscal 2020. The details are available with our early release published a few hours ago. I would like to reiterate that we will always follow the high standard of corporate governance and always have zero tolerance for any illegal conduct. I will now turn the call over to Linda He, our Vice President of Finance. She will give you an update on our operational progress in the first quarter. Next, Echo Yang, our IR Director, will reveal the first quarter of financials. After that, I will update you on our business strategy and discuss our business outlook. Linda, please.