TAL Education Group

Ladies and gentlemen, good day and thank you for standing by. Welcome to Tao Education Group's fiscal 2027 second quarter earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please be informed today's conference is being recorded. I would now like to hand the conference over to Ms. Fang Liu, Investor Relations Director. Please go ahead.

Thank you all for joining us today for TEL Education Group's second quarter fiscal year 2027 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 newswire. During this call, you will hear from Mr. Alex Tang, President and Chief Financial Officer and Mr. Jackson Ding, Deputy Chief Financial Officer. Following the prepared remarks, Mr. Peng and Ms. Ding will be available to answer your questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the CAHPR provisions of the U.S. Private Securities Litigation Reform Act of 1995. All looking statements are subject to risk 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 our public filings with the SEC. For more information about these risks and uncertainties, please refer to our filings with the SEC. Also, our earnings release and this call include 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 to turn the call over to Mr. Alex Peng. Alex, please go ahead.

Thank you, Fang, and thanks to everybody for joining today's conference call. For more than 20 years, TAL has been committed to helping students learn and grow. Today, we do this through our learning services, content solutions, and other products. Across all of these offerings, we remain committed to delivering meaningful learning experiences and building lasting relationships with the students and families we serve. Let me start with an overview of our second quarter performance. Our overall revenue continued to grow, although at a slower pace than in previous quarters. As our business has grown in scale, we expect our overall growth rate to moderate. The picture across our businesses, however, is different. Our pay you offline programs continue to grow at a healthy pace. Demand for face-to-face learning remains solid and student retention remains healthy. We believe that interaction between teachers and students continues to play an important role in learning. Our learning device business, on the other hand, is facing a challenging industry environment, respectable competition, Shifting consumer sentiment and rising component costs have put pressure on the market. These conditions have affected our business and have become a drag on our overall revenue growth. Despite these near-term challenges, we continue to see a strategic role for learning devices in helping students who learn independently at home We're focused on improving our content and product experience while managing the business with discipline. Turning briefly to our financial results, second quarter net revenues were $995 million, or 6.7 billion RMB, representing a year-over-year increase of 15.9% in U.S. dollar and RMB terms respectively. Our non-GAAP income from operations was 248 million U.S. dollars, representing a year-over-year increase of more than 100%. Our non-GAAP operating margin increased to 24.9% from 12.5% for the same period last year. The continued improvement in our operating margin reflects operating leverage, efficiency gains, and disciplined resource allocation. With that, I will turn the call over to Jackson, who will cover operational progress across our core business lines and review our financial performance for the second fiscal quarter.