Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. After management's prepared remarks there will be question-and-answer session. As a reminder, today's conference call is being recorded. I would now like to 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 relates 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 and other factors, 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 statement as a result of new information, future 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 developments and strategic direction. Andy, please go ahead.

Thank you, Lara. Hello everyone! Thank you all for joining us on our fourth 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 Q3 operation basis, and all numbers are based on the RMB, unless otherwise stated. Before we go into the details, let me provide you with the quarter’s business updates and financial performance across our business lines. The COVID-19 outbreak in China in the fourth quarter 2022 caused significant delays in the bidding and delivery processes of our projects, which in turn delayed the bidding and the delivery of quite a number of projects that were previously expected to happen in the fourth quarter of 2022. That significantly affected our revenue and financial results in the quarter. We responded quickly by accelerating the ramp up of alternative distribution channels and creating more flexible payment structure to remain agile under these situations. The delay in the process of key projects resulted in decreases in our revenue, but we did not lose them by any means. These projects are still under our purview, and we will work consistently to advance them as COVID-19 distributions phase out. An example is the RMB116 million project we were awarded on the March 23, 2023. This was a product, previously it was an earlier expired bidding and delivery scheduled. I will elaborate further on this product slightly later. In 2022, we recorded net revenues of RMB531.1 million, excluding net revenue from our online K-12 tutoring services. Net revenues increased by 8.5x year-over-year. The increase were mainly attributable to the steady process of our business transformation. This was achieved after we seized our online K-12 tutoring services at the end of 2021, which accounted for approximately 95% of…

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 the one-off events as it result in the series of regulation introduced in 2021 and a corresponding adjustment to our business model, organization and workforce. The delay in the bidding and delivery process of several of our projects has significantly affected revenue recognized in the fourth quarter, and that's our overall financial performance. However, such fluctuations in revenues are inevitable during the early stage of a business development, especially given the external environment. Nevertheless, we are pleased to report that our continuous costs and extensive reduction measures have allowed us to significantly reduce our net loss in 2022, despite the termination of our legacy K-12 after-school online tutoring operation, which accounted approximately 95% of our revenue in the past. With China’s economy recovering from the COVID-19 pandemic, we are confident that the latest awarded project is another important milestone in the company’s continuous transformation into the new business strategies. Next, please allow me to go through our fourth quarter financials in greater detail. Our net revenues: The revenues for the fourth quarter of 2022 were RMB39.6 million, representing a year-over-year decrease of 92.7% from the RMB542.5 million in the fourth quarter of 2021. This was mainly due to the cessation of the online K-12 tutoring services by the end of 2021 due to regulation reasons. If compared – excluding the net revenue from online K-12 tutoring services, our net revenues increased…

Thank you. . Our first question is from . Your line is open. Pease go ahead.

Hi! Good morning. I would like to know what's anticipated of the share buyback program that you announced last year, given where net cash is trading per share right now.

Hi James! Thanks for your questions. Yes, the company's share buyback program has always, has continued to be operating since the announcement. We have clear instructions in terms – the way we want to buy back, in terms of amount and the price. The details of the share buyback purchase program will be fully disclosed in the annual report, which we expect to be coming out over the next month or so.

Thank you.

Thank you. . I'm showing no further questions at this time. I'd like to turn the conference back over to Lara Zhao for any further remarks.

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.

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