BTC Digital Ltd. Q3 FY2021 earnings call

• Business adjustments: Significantly reduced offline learning centers to one or two per city in third quarter 2021 to cut fixed costs, prepare for transformation; expects offline centers to improve once COVID eases.
• New business strategies: Plan to launch metaverse-related career planning and professional skills training, build metaverse communities/experience centers; explore overseas blockchain/crypto opportunities, partnered with AGM Group, plan to join crypto fund.
• Product development: Launched new language products (Japanese, Spanish, Korean, German) in third quarter 2021.

For the third quarter of 2021, total revenue was RMB187.9 million (US$29.2 million), a 36.9% y-o-y decrease. For the first nine months of 2021, revenue was RMB599.2 million (US$93.0 million), a 10.4% y-o-y decrease. General adult ELT: Third quarter 2021 revenue RMB40.7 million (64.3% y-o-y decrease); first nine months 2021 revenue RMB187.0 million (17.7% y-o-y decrease). Overseas training services: Third quarter 2021 revenue RMB42.7 million (6.0% y-o-y decrease); first nine months 2021 revenue RMB119.6 million (38.4% y-o-y increase). Junior ELT: Third quarter 2021 revenue RMB24.8 million (decrease due to COVID and double reduction); first nine months 2021 revenue RMB73.1 million (decrease y-o-y). Online ELT: Third quarter 2021 revenue RMB76.4 million (0.3% y-o-y increase); first nine months 2021 revenue RMB208.6 million (10.3% y-o-y decrease).

• Expect offline learning centers' operating conditions and profitability to improve once COVID improves.
• Aim to become a metaverse technology company in the next one to two years.

• Impact of COVID-19 resurgence on offline business operations.
• Double reduction policy impact on junior ELT revenue.

Q: Can you share more information regarding the situation of the company’s premium service?

A: Meten Holding Group has reduced the number of centers to one to two per city, focusing on career development and metaverse-related services in the fourth quarter.

Q: Your company is exploring metaverse sales, can you share more?

A: The company is exploring metaverse opportunities, planning to prioritize training related to metaverse use, develop new careers, and sees new business opportunities with crypto and mining.

Q: What date do you think the metaverse trading business might begin generating revenues and how to recruit professors?

A: There are many ideas, using partnerships, platforms, and hiring newly graduates and professionals to recruit teachers, with plans in progress for metaverse-related business operations.