Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's Third Quarter 2022 Earnings Conference Call. Well, at this time all participants are in a listen-only mode. After management's prepare remarks, there will be 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 their 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 unknown 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 or other risks, uncertainties or factors is included in the company's filings with the US 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 for joining us on our third 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 our continuing operation basis and all numbers are based on the RMB unless otherwise stated. We managed to deliver resilient performance in the third quarter. Before we go into the details, let me update you with some quick highlights. Firstly, we quoted RMB124.6 of net revenues in the third quarter of 2022, contributed by our new business despite the uncertainty and economic impact associated with recent COVID 19 outbreaks. This represents an increase of 549% compared with the revenue of RMB19.2 million excluding the legacy of online K-12 tutoring services in the third quarter of 2021. Secondly, we are able to continue narrowing less loss on GAAP bases through efficient cost and expenses management, allowing us to achieve net profitability on a non-GAAP business for the fourth consecutive quarter. Thirdly, we continue to develop and upgrade our teaching and learning size offerings together with our clients and to explore personalized self-directed learning product and better satisfy customer needs. Now let me go into some details. Let's start with our in-school teaching and learning SaaS based business. The third quarter of 2022 saw a few milestone progresses in our in-school business in Shanghai Minhang District. Our services now achieved full coverage from primary to high schools. There are 128 schools with 156 campuses that are now using our precision teaching and adaptive learning system to assist the day to day teaching. The accumulated number of students using the tool for homework also exceeded 40 million as of now. We introduced intelligent dot metric pen in September in lunching our trial with 20 schools…

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 again 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 regulation introducing trial 21 and a corresponding adjustment to our business model, organization and work force. The third quarter 2022 is the fourth quarter of operation after we officially seized our online K-12 tutoring businesses and generated revenue purely from our continuing businesses. Our new business strategy has shown continued momentum in the third quarter amidst the complex external challenges and uncertainties posed by the COVID-19 pandemic and the posted -- and posted revenue growth when compare with the same period last year. We have achieved profitability on an objective basis for the fourth consecutive quarter, which serves as a testament to our resilient operation efficiency and opportunities from our new businesses. Next I will go through our third quarter financials in greater detail. Net revenues were RMB124.6 million, representing a year-over-year decrease of 74.9% from RMB496.8 million in the third 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 regulations, which prohibits the provision of tutoring services relating to academic subjects to K-12 students. However, when compared with the net revenues excluding those from online K-12 tutoring services, our net revenues increased significantly from RMB19.2 million to RMB124 million during the same period. Cost of revenues for the third…

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. This concludes today's conference call. Thank you for participating. You may now disconnect.