Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's Fourth Quarter 2023 and full year earnings conference call. [Operator Instructions]. As a reminder, today's conference call is being recorded. I will 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. 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 discuss our financial performance in more details. 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 US 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 risks and 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 and certainties and 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, 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 all for joining us on fourth quarter 2023 and full year earnings results call. Before we begin, I would like to note that the financial information and non-GAAP numbers in this release are presented on a continuing operation basis and in RMB unless otherwise stated. Let me now start with our latest business updates. In this quarter, the company has maintained solid development and progress in our teaching and learning SaaS businesses. We've achieved 19.7% revenue growth in the fourth quarter of 2023 from the previous quarter. This was primarily driven by our growth in the teaching and learning SaaS businesses. An important progress is that we were able to win orders from additional group of clients. And expanding into our potential new customer groups and under new transaction modes, particularly business with individual schools and group operated schools has started building momentum with regular new contract screenings. Moving forward, we will accelerate the development of smart classroom, big data precision teaching, intelligent homework solutions and other products, including those with five aspects of education, holistically supporting personalized learning and accommodate students' individual aptitudes in their inter-school solutions. Now let me go into more details. In the fourth quarter, our teaching and learning SaaS businesses continue to make consistent advances. Our key projects continue to generate revenues marked by successful delivery and client acceptance. Notably, the digital transformation projects in Shanghai, Minhang District, that is based on our smart pen and paper technology, has completed its third phase revenue recognition. Similarly, our project in Beijing, Xicheng District has successfully completed its delivery as well. All such projects have seen immediate and consistent high usage with active rates above 90%. This continues to demonstrate our leading ability to deliver large scale and systematic projects.…

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 RMD 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 a series of regulations introduced in 2021 and corresponding adjustments to our business model, organization and workforce. In this quarter, our teaching and learning SaaS business generated increasing revenue compared to the same quarter last year, signifying consistent client satisfaction and future development. We are also meticulously managing our expenses to further improve operational efficiency. We are confident that our SaaS business model is gaining recognition from our clients, helping us build a healthier and recurrent business as we enhance our service offerings and customer satisfaction. In the fourth quarter, we recorded net revenues of RMB47.3 million compared with RMB39.6 million in the fourth quarter of 2022, representing a 19.7% increase on a year-on-year basis. The net loss for the fourth quarter of 2023 was RMB98.4 million compared with RMB103.1 million in the fourth quarter of 2022. The adjusted net loss non-GAAP for the fourth quarter of 2023 was RMB81.8 million compared with adjusted net loss of RMB70.1 million in the fourth quarter of 2022. The gross margin for the fourth quarter of 2023 was 43.4% compared with 52.1% in the fourth quarter of 2022. As of December 31, 2023, we have cash reserves of RMB476.7 million on our balance sheet, providing sufficient funds for future development. Now I will go through our fourth quarter financials in greater detail. Net revenues for the fourth quarter…

Thank you, Operator. In closing, on behalf of 17EdTech 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.

That does conclude our conference for today. Thank you for participating. You may now disconnect.