Good evening, and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's First Quarter 2023 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, 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, 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 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. 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 first quarter 2023 earnings call. Before we begin, I would like to mention that the financial information and non-GAAP numbers in the release are presented on a continuing operation basis, and all numbers are based on 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 outbreak in China in the fourth quarter of 2022 caused delays in the bidding delivery processes of our major products, which adversely affected our financial performance in the last 2 quarters. However, our in-school SaaS business continues to advance beyond the financial results might indicate. During the quarter, we continued to explore various business models for growth, constantly developing and refining our offerings to meet the demand of regional regular use and promoting the signing and delivery of each project. At the same time, we actively expanded our distribution network and enhance our operational efficiency. We responded to challenges in the new environment through diversified distribution channels and flexible financial arrangements. As a result, our business maintained its momentum and earned recognition from our customers beyond that the financial statements might indicate -- beyond what the financial statements might indicate. In the past quarter, the impact of various pandemic containment measures were lifted across China. We saw business activities and projects relevant to our business returning to normal. The demand for our teaching and learning SaaS offerings is guided by the Chinese government's long-term policies and founded by dedicated government budgets. We believe this creates a real opportunity for us to grow in this uncertain environment. We have made steady progress in our in-school teaching and learning SaaS business during the first quarter…

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 based in RMB terms. I would like to remind you that the quarterly results we present in here should be taken with care in 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 corresponding adjustment to our business model, organization and workforce. Our revenue and gross profit in the first quarter of 2023 were impacted due to the delay in the bidding and delivery of our several projects. However, the recent win of major projects have marked another key milestone in the company's new business strategies. These projects are expected to be delivered gradually over the upcoming quarters and reflected in our financial statements. As of March 31, 2023, we have cash reserves of RMB 639 million on our balance sheet, providing us with sufficient funds for future development. Next, I will go through our first quarter financials in greater detail. Our net revenues for the first quarter of 2023 were RMB 9.3 million, representing a year-over-year decrease of 96% from RMB 233.4 million in the first quarter of '22. Our revenues are recognized based on delivery and service providers of our projects, and they were delayed by the significant -- delayed in the bidding and delivery process of our major projects, which were affected by the COVID outbreak in the fourth quarter 2022. Our cost of revenues for the first quarter of 2023 was RMB 7 million, representing a year-over-year decrease of 92.4% from RMB 91.8 million in the first quarter of 2022, which was largely in line…

[Operator Instructions] Thank you. We have no questions. I'll now turn the conference back to Ms. Lara Zhao for closing 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.

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