Good evening, and good morning, ladies and gentlemen, and thank you for standing by for 17EdTech's First Quarter 2025 Earnings 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 Ms. Sishi Zhou, the Acting Chief Financial Officer; and myself, Investor Relations Manager. Sishi will walk you through our latest business performance and strategies, and I will discuss our financial performance in more details. After the prepared remarks, Sishi 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 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. 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 Acting Chief Financial Officer, to review some of our business development and strategic direction. Sishi, please go ahead.

Thank you, Lara. Hello, everyone. Thank you all for joining us on our first quarter 2025 earnings conference call. Before we begin, I would like to note that the financial information on the non-GAAP numbers in this release are presented on a continuing operations basis and in RMB, unless otherwise stated. Let me begin with our latest business updates. We are pleased to report a strong performance in the first quarter of 2025. This quarter has marked significant progress and innovation particularly with the successful trial and implementation of our AI-powered product upgrades facilitating teaching and learning efficiency by delivering intelligent adaptive solutions that enhance daily instructional decision making, providing more personalized learning experiences for students. During the quarter, we have seen a strong growth in both new contract acquisitions and the expansion of our existing customer base. Our SaaS subscription business has risen as more schools and educational organizations recognize the value of our AI-powered solutions, showcased in strong retention rate and the increased adoption of our value-added offerings. In the first quarter of 2025, we recorded net revenues of RMB 21.7 million, representing a 15% decrease from the previous quarter last year, which was primarily due to the reduction in net revenues from district level projects as we prioritized our resources on school-based projects on a subscription model which generally have longer revenue recognition period. As we improved operational efficiency, operating expenses reduced by 42.6% compared to the same quarter last year, resulting in a 44.8% reduction in net loss on a GAAP basis. Looking ahead, we will remain vigilant in monitoring our financial performance and making strategic decisions to ensure a long-term success and sustainability of our business. And now let me go into more details. During the quarter, our district-level teaching and learning business remained steady,…

Thanks, Sishi, 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 adjustment to our business model, organization and workforce. In the first quarter of 2025, we recorded net revenues of RMB 21.7 million compared with RMB 25.5 million in the first quarter of 2024, representing a 15% decrease on a year-on-year basis, which was primarily due to the reduction in net revenues from district- level projects as we prioritize our resources on school-based projects and their subscription model, which generally have longer revenue recognition period. Gross margin for the first quarter of 2025 was 36.2% compared with 38.4% in the first quarter of 2024. Net loss on a GAAP basis for the first quarter of 2025 was RMB 30.9 million compared with RMB 56.1 million in the first quarter of 2024, representing a decrease of 44.8% year-on-year. The adjusted net loss (non-GAAP) for the first quarter of 2025 was RMB 22.4 million compared with adjusted net loss (non-GAAP) of RMB 42.7 million in the first quarter of 2024, a decrease of 47.5% year-on-year. As of March 31, 2025, we have cash reserves of RMB 333.3 million on our balance sheet compared with RMB 359.3 million as of December 31, 2024. Next, I will go through our first quarter financials in greater detail. Net revenues. Net revenues for the first quarter of 2025 were RMB 21.7 million, representing…

[Operator Instructions] I'm showing no questions. I'll now turn the conference back to Ms. Lara Zhao for closing comments.

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 for your participation in today's conference. This does conclude the program. You may now disconnect your lines.