Good evening and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's Second Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question and answer session. 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. 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 and 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 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. For the information regarding these and other risks, uncertainties, and factors, it's 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 developments and strategic direction. Michael, please go ahead.

Thank you, Lara. Hello, everyone. Thank you all for joining us on our second quarter of 2024 earnings conference 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 second quarter, we are delighted to announce that the company has achieved a robust progress in our core business, with an impressive top-line growth of 165% quarter-to-quarter revenue growth, driven by significant expansion and contract winnings in new potential areas. As we optimize our operational efficiency, operational loss has shown a diminishing trend in the first half of 2024. Net loss on a GAAP basis continues to narrow for the first half of 2024, compared with the same period last year. As we innovate and provide high-quality, efficient educational solutions, we have effectively implemented personalized teaching and learning for our broader audience in the evolving digital learning landscape. Our innovative high-quality data-driven SaaS offerings are delivering substantial assistance in promoting trends in our partner schools that are positively associated with academic improvements. Examples including increased homework and exercise completion rates, teachers' grading rates, and students' correction rates. Comparisons between students using and those not using our solutions within the same school after semester also noted better academic performance of the students and teachers who use our solutions. During the quarter, we continue to maintain a gross momentum in user engagements for subscription modes of our comprehensive solutions on an expanded user base. For additional customer groups, including both public and private ones, we are glad to see the operating metrics such as subscription retention rate, utilization rates remain steadily improved in existing schools, with significant results achieving attracting new…

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 referenced to our potential future performance are subject to potential impacts from seasonality in one of the 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 of 2024, we recorded net revenues of RMB67.5 million compared with RMB25.5 million in the first quarter of 2024, representing 165% of the increase on a quarter-on-quarter basis. Net loss on a GAAP basis for the second quarter of 2024 was RMB55.7 million compared with RMB47.9 million in the second quarter of 2023. The adjusted net loss non-GAAP for the second quarter of 2024 was RMB42.6 million compared with adjusted net loss non-GAAP of RMB28.6 million in the second quarter of 2023. Gross margin for the second quarter of 2024 was 16.0% compared with 48.3% in the second quarter of 2023. As of June 30, 2024, we have cash reserves of RMB410.7 million on our balance sheet, providing sufficient funds for future development. Next, I will go through our second quarter financials in greater detail. Net revenues. Net revenues for the second quarter of 2024 was RMB67.5 million, which remained relatively stable compared with RMB69.2 million in the second quarter of 2023. Cost of revenues for the second quarter of 2024 was RMB56.7 million, representing a year-over-year decrease of -- an increase of 58.6% from RMB35.8 million in the second quarter of 2023, which was mainly due to the increase in project…

I'm showing no question at this time. And I'll turn the conference back to Ms. Lara Zhao for closing comments.

Thank you, operator. In closing, on behalf of 17EdTech's management team, we would 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 for your participation in today's conference. This does conclude the program. You may now disconnect.