Good evening, and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's First Quarter 2022 Earnings Conference Call. At this time all participants are in listen-only mode, after the Management's prepared remarks there'll be a question-and-answer session. As a reminder today's conference call is being recorded. I'll now turn the meeting over to your host for today's call, Ms. Lara Zhao, 17EdTech's Investor Relations Manager. Please proceed, Lara.

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. Joining us today are Mr. Andy Liu, Founder, Chairman and Chief Executive Officer; and Mr. Michael Du, Director and Chief Financial Officer. Andy will walk you through our latest business performance and strategies followed by Michael who will discuss our financial performance and guidance. They will be available to answer your questions during the Q&A session after the prepared remarks. Before we begin, I'd like to remind you that this conference call contains forward-looking statements as defined in Section 21E 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 current market and operating conditions and relate to events that involve known and known risks uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company'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, further events or otherwise, except as required under applicable law. I will now turn the call over to our Chairman and Chief Executive Officer, to review some of our business development and strategic direction. Andy, please go ahead.

Thank you, Lara. Hello, everyone. Thank you all for joining us on our second quarter 2022 Earnings Call. Before we begin, I would like to mention that the financial information and non-GAAP numbers in this release are presented on a continuing operation basis, and all numbers are based on the RMB, unless otherwise stated. We are glad to report a solid performance in the second quarter. Before we go into the details, let me update you with some quick highlights. Firstly, we recorded RMB 133.5 million of net revenues in the second quarter of 2022. 11.2% higher than the top end of our estimates provided earlier in June. This was achieved through higher revenue contribution from our teaching and learning SaaS business. Secondly, our operational efficiency continues to improve, and we recorded a substantially narrowed GAAP basis net loss compared with the same period in 2021, allowing us to achieve net profitability on a non-GAAP business for the last three consecutive quarters. Thirdly, our new teaching and learning SaaS offerings have gained further momentum and one strong recognition and demand from the government and relevant authorities, contributing an increasing proportion of the company's net revenues in this quarter. Now, let me go into some more details. Let's start with our in-school teaching and learning SaaS business. During the period, our teaching and learning SaaS offerings have witnessed major milestone. We successfully delivered a district-wide position teaching and adaptive learning system project based on intelligent homework in Shanghai Minhang District, in the second quarter of 2022. The system has been regularly used throughout the teaching process and it's well recognized by teachers, students and education authorities. This is a clear example satisfying the standard for active use set by education authorities. There were a total of 156 schools in Minhang District,…

Thanks, Andy. And thank you, everyone, for joining the call. I will now walk you through our financial and operating results. Please note that all financial data I talk about will be presented in RMB terms. I would like to remind you that the quarterly results we present here should be taken with care, and reference to our potential future performance are subject to potential impacts from seasonality and one-off events as a result of the series of regulations introduced in 2021 and a corresponding adjustment to our business model, organization and workforce. The second quarter of 2022 is the third quarter of operation after we officially seized our online K-12 tutoring services and generated revenue purely from our continuing businesses. Our new business strategy has shown positive momentum in the second quarter with in-school teaching and learning SaaS businesses, seeing additional delivery during the second quarter of 2022. As a result of our improved operational efficiency, we are delighted to record net profitability on an adjusted basis for the last three consecutive quarters. Next, I will go through our second quarter financials in greater detail. Our net revenue were RMB 133.5 million, representing a year-over-year decrease of 80.1% from RMB 617.9 million in the second quarter of 2021. The decrease was mainly due to the cessation of our online K-12 tutoring services by the end of 2021 to be in compliance with the latest PRC regulation. However, when compared with the net revenue, excluding those from online K-12 tutoring services, our net revenue increased significantly from RMB 8.9 million to RMB 133.5 million during the same period, representing a growth of over 14 times. The company is teaching and learning SaaS offerings and contributing an increasing proportion of the company's net revenues for the second quarter of 2022 when…

We have questions from the line of Tom Chong Lee from Hedge Capital. Please proceed. Mr. Lee, your line is now open, please proceed with your question.

Yes. My question is that the management has announced share buyback plan last year. And so we want to know what's the process of the share buyback plan so far?

Let me take this question. Thanks for the question. Yes. We announced a share buyback program last November. We are actually in the progress of continually buying back the shares at a speed that we consider appropriately so far. Our plan is to continue such buyback -- share buyback programs. In later periodic reports, we will provide detailed numbers about the number of shares and the amount we have used.

Thank you very much. And also congratulations to the achievement that you guys have achieved. Fantastic.

And there are no further questions from the phone line. May I hand the call back to the management. Please continue.

Thank you, operator. In closing, on behalf of 17EdTech's Management team, we'd like to thank you for your participation on today's call. If you require any further information, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call.

Thank you for participating. You may now disconnect.