Four Seasons Education (Cayman), Inc. Q4 FY2020 earnings call

• Extended condolences for COVID-19 victims and thanked medical professionals and staff. - Transitioned offline courses to online during COVID, retained most students, and provided supplemental online services. - Launched One Lesson One Exercise online courses for primary school students in collaboration with East China Normal University Press. - Established integrated operational system for better course development, monitoring, and training, laying foundation for OMO model. - Plan to reopen majority of offline facilities in June and will continue providing significant online courses after reopening.

No specific product segment breakdown provided. For the fourth quarter of fiscal 2020, revenue was RMB71.1 million, an increase of 9.8% year-over-year. Cost of revenue was RMB46.3 million, up 0.6% year-over-year. Gross profit was RMB24.8 million, up 32.4% year-over-year. For fiscal year 2020, the company achieved a solid top-line growth of 16% year-over-year.

• For the first quarter of fiscal 2021, expects revenue in the range of RMB55.7 million to RMB60 million, based on current market conditions and subject to COVID-19 uncertainties.

• Forward-looking statements involve inherent risks and uncertainties. Company's results may differ materially from views expressed. Further risks and uncertainties are in the company's prospectus filed with SEC. No obligation to update forward-looking statements except as required by law.

Q: Regarding the structural change of the after-school tutoring market, specifically online vs offline, and strategy.

A: Online growth accelerated by COVID, but offline has different effectiveness. Core is content and faculty. Online-merge-offline is strategy, with online being part of business model.

Q: Follow-up on student acquisition strategy for spring and summer vacation with shortened spring semester.

A: Tutoring is once a week, relies heavily on word-of-mouth referrals. Will cautiously increase marketing spending while relying on brand and word-of-mouth for student acquisition.