Michael Chao Du
Thank you, Lara. Hello, everyone. Thank you all for joining us on fourth quarter 2023 and full year earnings results call. Before we begin, I would like to note that the financial information and non-GAAP numbers in this release are presented on a continuing operation basis and in RMB unless otherwise stated. Let me now start with our latest business updates. In this quarter, the company has maintained solid development and progress in our teaching and learning SaaS businesses. We've achieved 19.7% revenue growth in the fourth quarter of 2023 from the previous quarter. This was primarily driven by our growth in the teaching and learning SaaS businesses. An important progress is that we were able to win orders from additional group of clients. And expanding into our potential new customer groups and under new transaction modes, particularly business with individual schools and group operated schools has started building momentum with regular new contract screenings. Moving forward, we will accelerate the development of smart classroom, big data precision teaching, intelligent homework solutions and other products, including those with five aspects of education, holistically supporting personalized learning and accommodate students' individual aptitudes in their inter-school solutions. Now let me go into more details. In the fourth quarter, our teaching and learning SaaS businesses continue to make consistent advances. Our key projects continue to generate revenues marked by successful delivery and client acceptance. Notably, the digital transformation projects in Shanghai, Minhang District, that is based on our smart pen and paper technology, has completed its third phase revenue recognition. Similarly, our project in Beijing, Xicheng District has successfully completed its delivery as well. All such projects have seen immediate and consistent high usage with active rates above 90%. This continues to demonstrate our leading ability to deliver large scale and systematic projects. In the fourth quarter, we secured a contract for the teaching software integration and data analysis services project in Shanghai, Project. This is a SaaS-based pilot project valued at RMB3 million and initially covered eight schools-- around 100 classes, 200 teachers and 4,000 students within the district. Our services include integrating teaching software and providing big data analysis. By gathering learning process data from daily homework, staged assignments and in-cloud exercises, among other sources, we combine various dimensions such as student academic performance, learning behavior and subject literacy to create comprehensive student data profiles, enable precise data-driven and semi-automatic teaching and learning-- teaching and management strategies. During this quarter, we pursued new growth strategies and expanded our customer base, by establishing a strategic partnership with regional schools associated with well-known private education groups as well as individual operated public schools. We have successfully executed and delivered projects. This new strategy, targeting private school and select public schools with adaptable structure, have continued to show strong performance in terms of both contract value and quantity since last quarter. This model is a very good complement to our existing flagship-style projects with district education bureaus that typically aim at covering the whole district. Projects with individual or group managed private or public schools have a much quicker decision process and a higher certainty of funding. This more diversified revenue contribution by each project also helps build up a more smooth revenue stream. This model also further helps accelerate our strategy to reach more schools and students that we create a virtual cycle that further enhances-- further allows us to enhance our product and solutions. We are dedicated to provide the market with innovative leading product and solutions that set new standards in education technology. The Aerospace City Campus of the high school affiliated to China Renmin University, Foreign Language School, Nanjing, Jiangning, Binjiang Foreign Language School, Zhongshan [indiscernible] Middle School are among the long list of top leading schools that have subscribed to our teaching and learning SaaS offerings. Their recognition and early adoption of our solution are believed to be influential and are expected to further accelerate the adoption process within the area. In addition, projects with this group of clients are typically in subscription mode with semi-annual or annual renewal. In this project-- in the first project we signed last September that has entered the renewal this month, we have seen a revenue retention rate of 120%, which means additional classes and students and functions are being subscribed and used. This is a great result-- great initial results built upon our teaching and learning SaaS offerings high active use and a very positive sign that we are building up an increasingly steady SaaS revenue portfolio. Looking ahead, we expect adoption of the SaaS billing model to steadily grow as the market becomes more familiar with its benefits and we are confident that this model will not only unlock new revenue streams for the company, but also highlight the advantage of its current nature, fostering sustainable business growth. In terms of product and service offering, we have been continually refining our core offerings and enhancing user experiences to promote regular school use by integrating application systems and data profiles and daily teaching scenarios such as classroom, homework, and exams. Such integration aids effective teaching, enhances classroom quality, and supports teachers in delivering differentiated instructions. During this quarter, we enhanced our personalized learning products that focus on students' incorrect answers, enabling automatic correction across all school scenarios, and effectively utilizing correction data between online and offline platforms. Furthermore, we provide high quality and a diverse resource for personalized learning and to boost students' independent learning efficiency. Meanwhile, we continue to explore the practical application of AIGC in actual teaching scenarios as well as content preparation process to further deliver better resulting pilot projects. Our proprietary smart pen, which has passed the project pilot verification, further improves teacher's efficiency and experiences in correcting daily homework's. We plan to conduct further mass distributions in 2024. Recently, the 2024 World Digital Education Conference was held in Shanghai. With digital education, application, sharing, and innovation as its theme, the conference facilitated in-depth discussion on topics such as enhancing teaching's digital literacy and competence, constructing a learning society throughout education digitalization, artificial intelligence and digital ethics, and digital education evaluation. We participated in the conference and exhibit at the digital wisdom future education exhibition under the theme. We provided data-backed solution and shared experience to advance global digital education client and tackle challenge. From December 12 to December 14, 2023, as a response and development major chance, 2023 China Corporate Competitiveness Annual Conference hosted by the China news --business news. Our teaching--One Teaching, One Learning K-12 Digital Teaching and Learning Science Platform was honored with the 2023 Excellent Performance Company Award, Best Technology Innovation Award. This award recognizes and honor’s the companies that have made exemplary contributions to the socioeconomic field and has established themselves as exemplars and leaders in the responsive industries. Recently, the Beijing Municipal Education Commission selected 37 innovative application case of big data in education. Notably, Xicheng District, as subbed by 17Attack, was selected as a district-level case. And three other schools, including the Aerospace City Campus of the high school affiliated to Renmin University, Beijing Number 43 Middle Schools, and Beijing Primary School, Tongzhou Branch, also serve, which are all our clients, were recognized and are standing on school-level cases. These exceptional innovative application cases serve as a great model for schools in various districts and help us to win additional clients. Looking ahead, One Teaching, One Learning platform will continue to facilitate the digital transformation of education, consistent meeting the needs of those teaching students, thereby assisting schools in improving their teaching and nurturing process. The demand for our other educational service products is also highly dependent on the regulatory environment and provision of competing services. We are closely monitoring the development of the market as well as regulatory environment. Moving forward, we remain committed to explore additional educational products and services that are complying with regulatory requirements. Now I will turn the call over to Lara to walk you through our latest financial performance. Thank you.
