Good evening, and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's First Quarter 2024 Earnings Conference Call. [Operator Instructions] As 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. 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 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 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 risks, uncertainties and 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 the 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 to our first quarter 2024 earnings 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 start with our latest business update. In the first quarter, we continued to strengthen our core SaaS teaching and learning businesses through enhancing high-quality products and services solutions. Expanding sales and networks and sales -- services into new opportunity areas. Our primary business achieved robust growth with a notable top line growth during the quarter. We have also been diversifying the performance of our services to cover a wider customer base and expand the range of services to increase revenue from both new and existing projects. The wider customer base has also allowed us greater flexibility and resilience during this environment. During this quarter, our teaching and learning SaaS business from a district level project, exhibit consistent progress. We continue to generate revenues through successful delivery and new project winnings. The total value of the district level projects we have won so far have already exceeded [ RMB 40 million ]. Meanwhile, we have also made significant strides in securing orders from both public and private schools on a school-by-school basis. Such purchases have a much quicker decision process and are much easier and flexible to secure the required funding. These type of projects are also recurring in nature and are likely to expand into other individual schools in surrounding areas. Project with this group's supply typically follow subscription models with semiannual or annual renewal. From some of the early projects that have already experienced renewal process, we have seen revenue retention rate exceeding 100% with additional classes and…

Thanks, Michael, and thank you all very much 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 these quarterly results represent here should be taken with care and reference to our potential future performance and subject to potential impact from seasonality and one-off events as a result of the series of regulations introduced in 2021, and a corresponding adjustment to our business model, organization and workforce. In the first quarter of 2024 we recorded net revenues of RMB 25.5 million compared with RMB 9.3 million in the first quarter of 2023, representing a 175% of the increase on a year-over-year basis. The net loss for the first quarter of 2024 was RMB 56.1 million compared with RMB 92.5 million in the first quarter of 2023. The adjusted net loss non-GAAP for the first quarter of 2023 (sic) [ 2024 ] was RMB 42.7 million compared with the adjusted net loss non-GAAP of RMB 64.0 million in the first quarter of 2023. Gross margin for the first quarter of 2024 was 38.4% compared with 24.4% in the first quarter of 2023. As of March 31, 2024, we have cash results of RMB 447.2 million on our balance sheet, providing sufficient funds for future development. Next, I will go through our first quarter financials in greater detail. Net revenues. Net revenues for the first quarter of 2024 were RMB 25.5 million, representing a year-over-year decrease of 175% from RMB 9.3 million in the first quarter of 2023. This was mainly due to the increased number of teaching and learning SaaS contracts and the recurring revenue generated from the ongoing projects. Cost of revenue for…

[Operator Instructions] There are no questions at this time. Allow me to hand the call back to management for closing.

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.

Ladies and gentlemen, that does conclude today's conference call. Thank you for your participation. You may now disconnect your lines.