Good evening and good morning, ladies and gentlemen. Thank you for standing by for 17EdTech's Third Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I'll now turn the meeting over to your host for today's call, Mr. Raymond Huang, 17EdTech's Investor Relations Director. Please proceed, Raymond.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our earnings release was distributed earlier today and is available on our IR website. On the call with me today are Mr. Andy Chang Liu, Founder, Chairman and the Chief Executive Officer; and Mr. Michael Chao Du, Director and the Chief Financial Officer. Andy will walk you through our latest business performance and strategies, followed by Michael, who will discuss our financial performance. They will be available to answer your questions during the Q&A session after their prepared remarks. Before we begin, I'd like to remind you that this conference call contains forward-looking statements as defined in Section 20(e) of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current expectations and the current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the management's control. These risks may cause the company's actual results, performance or achievements to differ materially. Further information regarding these and other risks, uncertainties or factors is included in the company's filings with the U.S. SEC. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Andy. Please go ahead.

Thank you, Raymond. Hello, everyone. Thank you for joining us for our earnings call today. I would like to start with some updates of the company. The company has ceased offering tutoring services related to academic subjects to students from kindergarten through the last year of senior high school in Mainland China by the end of 2021. To comply with the "Opinions on Further Alleviating the Burden of Homework and After-School Tutoring on Students in Compulsory Education," also known as the Double Reduction Policy, and applicable rules, regulations and measures. At the same time, we have quickly formed new business strategies in response to the new regulatory environment. Leveraging our extensive knowledge and expertise accumulated through serving China's education authorities, schools, teachers and students over the past decade, we have adapted our business and organizations to focus on 2 key business areas. First, for our in-school business, we launched our new teaching and learning -- teaching and -- first, for our in-school business, we launched our new teaching and learning SaaS offerings as an upgrade to our previous in-school products and services. The new offerings are aimed at facilitating the digital transformation and upgrade of Chinese schools with a focus on improving the efficiency and the effectiveness of core teaching and learning scenarios such as homework assignment and in-school (sic) [ in-class ] teaching. Second, for our after-school business, we have started to offer a personalized self-directed learning product to Chinese families as a substitute for the original after-school tutoring services that we offered historically. The product utilizes our technology and data insights to provide personalized and targeted learning and exercise content that is aimed at improving students' learning efficiency. This is not a tutoring services and is consistent with some of the key concepts and philosophies of 1 of…

Thanks, Andy, and thank you, everyone, for joining the call. I will now walk you through our financial and operating results. But before I begin, there's one number I would like to correct in the remarks from Andy is that the new paid subscription to our new after-school self-learning products over the last month is more than 300,000 new users instead of 30,000 users. So now I continue with our financial performance. So please note that all the financial data I talk about will be presented in RMB terms. However, I would like to note that the publication and enforcement of the Opinion and applicable rules have significantly impacted our business, both in terms of slowing down our revenue growth as well as enlarging our losses. But subsequently, we have adopted a significant changes to our business model as shared by Andy earlier, and the online after-school tutoring services, which generated the vast majority of our revenue were ceased by the end of December 2021. Therefore, I would like to remind everyone that the quarterly results we presented here should be taken with great care, if you would like to use it as a reference for our potential future performance. And the quarterly results are subject to significant impacts from one-off events due to the series of regulations introduced in the third quarter 2021 and corresponding adjustments to our business model, our organization and our workforce. Andy has shared that we have formed a clear, new business strategy for future growth and have made prompt adjustments to our organization to accommodate this strategy. The vast majority of the adjustment that's needed to our operations and workforce and the associated one-off expenses have taken place in the third quarter of 2021. We will be operating with a clear aim of quickly…

[Operator Instructions] We have questions from the line of Anthony Riera from Riera Holdings. Anthony Riera;Riera Holdings;Analyst: What are projected subscriptions year-to-date?

Excuse me. Would you mind repeating your initial question? You mean what subscription year-to-date? Anthony Riera;Riera Holdings;Analyst: Yes. What are the projected subscriptions year-to-date with the new software that's implemented? You mentioned you had 300,000 new subscriptions due to the new software that was launched?

Yes, we have 300,000. Michael, please answer the question, and I will explain it in detail.

Yes. As we are still in the process of actually acquiring additional new users, we don't actually, at this stage -- we won't, at this stage, provide accurate annual forecast for the total number of subscribers. But we do have the confidence that this 300,000 actually came only through a 1-month period during the winter vacation session. We do see the additional sessions such as during the summer vacation part where we will see other chances of acquiring new students. So we do have the confidence that this number will continue to increase. However, it might be difficult for us to provide an accurate estimate for the whole year, especially this business is still in its early stage, but we do see a relatively high potential. Anthony Riera;Riera Holdings;Analyst: Excellent. Are those month-to-month? Or are those subscriptions with the year contract, the 300,000?

That 300,000 is actually a combination of subscription of different lengths. Some of them -- the shortest are the quarter, but some are half years, and a small percentage of them are annual ones.

[Operator Instructions] We have a new question from the line of Barry Blank of J H Darbie & Co.

I have several questions. The first question is when the price of the stock dropped precipitously low last time, you did a reverse split effectively by changing the number of ADRs. Stock is approaching that level again. And I was wondering, are you planning to do that again because it was very detrimental to the price of the stock?

We currently have no plan to do further reverse stock split.

Okay. My next question is, with the transferring of a lot of Chinese equities to Hong Kong, do you believe that you'll be able to keep the equity listed in the United States? Or do you believe it will be transferred only to Hong Kong in the near future?

We have been keeping a very close eye on the policy and also the regulatory environments in relation to SEC as well as U.S. listed environments. It's our current plan to continue to remain listed and be compliant with relevant rules and regulations from SEC. At this stage, we don't have any plan to migrate our listings from U.S. to Hong Kong or have dual listing plan.

My next question is do you plan on doing any -- I guess, they're called road shows. I mean any coming to the United States and talking to investors and meeting with them?

We are trying our best trying to meet investors through webcast or online or video conferences. Physical traveling might be difficult given the COVID-19 scenarios around the world. Apologies for that.

Okay. And my last question is, are you planning to have to sell any additional equity? Or do you have cash that will hold you for the foreseeable future?

Yes. As we've shared earlier, by the -- as of September 30, 2021, our cash and cash equivalents were around RMB 1.4 billion or around USD 220 million. And as we also shared earlier that we have tried to -- we have completed the vast majority of our adjustment to our business model, our organization, our workforce, including large one-off expenses in the third quarter, which is this quarter, this financial results. And we do have a plan to significantly increase the health, financial health and profitability of our business, aiming to quickly turning profitable or breaking even in the near future. So with that amount of cash and a more -- a higher -- a more stringent control over our financial health, we do have confidence that the existing cash balance will be sufficient for the transformation of our business. And therefore, at this stage, we don't have any plan to raise additional equity.

Thank you for the questions. There are no more questions on the line. I would like to conclude today's meeting. Thank you, management, and thank you all participants dialed in. You may now disconnect your lines.