Greetings. Welcome to ATA Creativity Global's Second Quarter 2020 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Alice Zhang of The Equity Group. Thank you. You may begin.

Thank you, operator, and hello, everyone. Thank you for joining us. The press release announcing ATA Creativity Global's or ACG's results for the second quarter and six months ended June 30, 2023 is available at the IR section of the company's website at www.atai.net.cn. As part of this conference call, the company has an accompanying slide presentation available on its website. A replay of this broadcast will also be made available at ACG's website for the next 90 days. Before we get started, I would like to remind everyone that this conference call and any accompanying information discussed herein contains certain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified with terms such as anticipate, believe, could, estimate, expect, forecast, future, intend, to forward outlook, plan, should, will and similar terms and include, among other things, statements regarding ACG's future growth and results of operations, ACG's plans for mergers and acquisitions generally, ACG's growth strategy, anticipated growth prospects and subsequent business activities, including initiatives and adjustments taken by ACG as China eased COVID pandemic-related restrictions, market demand for and market acceptance and competitiveness of ACG's portfolio training programs and other education services. Although the company believes that the expectations reflected in these forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove to be correct. Information about the risks associated with investing in ACG is included in its filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision. The company does not assume any obligation to update any forward-looking statements…

Thank you, Alice, and welcome, everyone, and good evening for those in Americas, and we appreciate everyone's time. We were pleased to see positive enrollment trend from the fourth quarter of 2023 continuing into the second quarter. We saw some pent-up demand at the start of the year with domestic and international travel restrictions were left in China. However, enrollment levels normalized over the course of the second quarter of 2023. Total student enrollment for the second quarter 2023 was 928 compared to 1,018 in the prior year period. However, excluding 155 students who were enrolled in the foreign language training business that we disposed off in the third quarter 2022, student enrollment actually increased 7.5% year-over-year. We also achieved a stable growth in net revenue compared to the prior year period, which was primarily due to increased service delivered for portfolio training and overseas study counseling. We delivered 28,698 hours for the portfolio training program in Q2, a 13% increase from the prior year period. As a result of increased gross profit and lower operating expenses, we also reported improved year-over-year bottom line results. We were particularly excited about our overseas summer programs as this is the fourth summer, we resumed the offering this type of program since the COVID-19 pandemic. We saw strong demand for those offerings, many of which have been delivered at this point in time and have been thrilled with the positive feedback we have received from students thus far. We remain excited about the prospect of all major lines of business in the remainder of the year. With that, I will quickly review the financials. Total net revenue for second quarter 2023 increased 6.5% to RMB36.2 million compared to RMB34 million in the second quarter of 2022. It was primarily driven by increased revenue…

Thank you, Sima. Riding on the positive momentum we experienced at the beginning of 2023 with the lifting of pandemic-related restrictions, we continue to see growing demand for our offerings, particularly in portfolio training and overseas studies consulting service, which more than offset a lack of revenue contributions from the foreign language training service we disposed off in third quarter 2022. We saw a wave of new students enroll during first quarter 2023, which is to normalized levels in second quarter 2023. We anticipate students enrollments will continue to grow at a stable rate in the improved market environment. Overseas study consulting service continues to gain momentum as the increasing number of students are looking to apply for overseas art schools and institutions. We leverage our teaching resources and international institutional partnership to support our students with active academic program and comprehensive consulting service, working as a trusted adviser throughout the application process. We remain optimistic about the potential of our business as more and more students seek to finish their study generally in a post-pandemic environment. We are extremely proud to be part of their journey and take pride in our comprehensive high-quality offerings and the first-class teaching staff, extensive educational resources and above all the positive student outcomes resulting from education with ACG. We will continue to explore ways to expand our portfolio of service which targets while the sector of art related topics for all kinds of students in different stages of their start. And look forward to serving an increasing population of students as a leader in the creative education industry in China. I'd now like to hand the floor over to Jun Zhang, ACG's President, to provide an update on our current growth initiatives. Jun will make his remarks in Mandarin, which will be followed by English translation. Jun, please go ahead.

Thank you, Kevin. It has been a truly rewarding first half of the year for ACG, as we welcome students back to campus in person, fully returning to the face-to-face communication and interaction with our students but has been more challenging to come by in recent years. Our goal has always been to help students explore the full potential of their arts pursuits and achieve what they define as success from an academic and professional perspective. We have been impressed by the perseverance demonstrated by several students during the pandemic and are particularly proud of their achievements. Since the beginning of 2023, there has been growing demand for our programs with many students taking to experience hands-on projects or educational tours that provide an opportunity to explore other parts of the country or the world. We're confident that ACG will be able to maximize our strength in research-based learning, curating projects and programs that adapt to the changing world of the art and nurture student sensibilities in related fields, which we believe is incredibly valuable beyond their schooling. This summer, on top of regular internships, bootcamps and summer school programs, we continue to host domestic intangible cultural heritage theme camps covering three heritage sites across China in Yunnan province, Guizhou province and Gansu product. These unique programs allow participating students to really immerse themselves in a local environment and learn from experts in various fields, including photography and film, acting model [ph] group, culture, mineral oil painting and painted sculptures. In addition to these domestic programs, ACG also launched a design innovation camp experience in Tokyo, Japan, co-hosted by the SMO Japanese Education Exchange Association. This project will provide students with an immersive experience covering six content modules, not only at the campuses of the University of Tokyo and Waseda…

Thanks, Jun and Alice. We are pleased with ACG's achievements in the first half of 2023 and are excited about the opportunities for the demand of the year. We are always thinking ways to improve our student experience and believe we are well equipped to execute our growth strategy by expanding our service to meet their demands. With that, operator, let's open it up for questions.

[Operator Instructions] There are no questions at this time. I would like to hand it back to Kevin for closing remarks. : :

Thanks again to all of you for joining us. If anyone has questions for us, please feel free to reach out directly to us or our Investor Relations from The Equity Group. We are always available to speak to investors and look forward to speaking with you all during our next quarterly call. Thank you.

Thank you. This will conclude today's conference. You may disconnect your lines at this time.