Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech Second Quarter 2023 Earnings Conference Call. [Operator Instructions] 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. Michael Du, Director and Chief Financial Officer; and myself, Investor Relations Manager. Michael will walk you through our latest business performance and strategies, and I will next discuss our financials in more detail. After the prepared remarks, Michael will be available to answer your questions during the Q&A session. 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 it relates 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 factors -- 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 Director and Chief Financial Officer, to review some of our business development and strategic direction. Michael, please go ahead.

Thank you, Lara. Hello, everyone. Thank you for all joining our second quarter 2023 earnings call. Before we begin, I would like to note that the financial information and the non-GAAP numbers in this release are presented on a continuing basis and in RMB unless otherwise stated. Let me start with our latest business update. During this quarter, we are delighted to see steady progress in the delivery of our key teaching and learning projects and the corresponding revenue recognition. We have also been expanding our distribution networks with more regional partners and adopting new models to facilitate further business expansion. We continued to win new projects over the past quarter. It is also noteworthy that our offerings were enlisted in the National Directory of Intelligent Educational Products and Service Providers recently. It demonstrates industry recognition of our market-leading technology and solutions and our deep-rooted dedication to offering specialized services in education digitalization. Going forward, continuous product development and evolution aimed at further enhancing user experiences and applying the latest artificial intelligence technologies will be our continued focus. Now let me get into some details. In terms of our in-school teaching and learning SaaS business, the RMB 116 million smart-pen and intelligent homework-based education digital transformation projects in Shanghai Minhang District we won in the first quarter 2023 has started generating revenues in the second quarter of 2023 as the delivery has started. The RMB 20 million Beijing Xicheng cloud classroom evaluation system project has also started generating revenues this quarter. This signifies continued advancement in our company's business progress providing -- proving our delivery capability on a large scale and a new stage of development where our recognized revenue is getting gradually less volatile. Throughout this quarter, the company has also been actively exploring additional customer groups in addition…

Thanks, Michael, 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 corresponding adjustments to our business model, organization and workforce. In the second quarter, the company proactively tackled the challenges and seized new opportunities to maintain our growth momentum and secure our competitive edge in the market. The consistent progress made by our new businesses is clearly reflected in our financial performance. Our revenue rapidly rebounding over the past quarter, we recorded net revenue of RMB 69.2 million for the second quarter of 2023 compared with RMB 9.27 million in the first quarter of 2023, representing a 6.5x of increase. The net loss for the second quarter of 2023 was RMB 47.9 million, significantly narrowing from the net loss of RMB 92.5 million in the first quarter of 2023. And adjusted net losses have considerably narrowed moving from a loss of RMB 64 million in the first quarter of 2023 to RMB 28.6 million on a non-GAAP basis. This indicates effective cost control measures and enhancements in operating efficiency. Furthermore, our gross margin has further improved to 48.3%, recovering to a normalized level. This demonstrates the profitability and resilience of our business model. As of June 30, 2023, we have cash reserves of RMB 586 million on our balance sheet, providing sufficient funds for future development. Next, I will go through our second quarter financials in greater detail.…

[Operator Instructions] And I'm showing no questions at this time and I'd like to hand the conference back 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.