Here Group Ltd. Q4 FY2024 earnings call

• Strategic shift towards the silver economy, aligning with 'live better, live longer' mission. Focus on three key areas: online learning with tailored courses, offline consumption/service scenarios including travel and community classes, and e-commerce live streaming sales of branded consumer products.
• User base of 137.6 million, with 127.6 million registered users and 0.4 million paying users in Q4. Offline activities like the 2024 Calligraphy Competition and study tours in multiple cities. Partnerships with local communities for free offline courses.
• Strong financial position with cash and cash equivalents, restricted cash, and short-term investments totaling RMB1,026.3 million as of June 30, 2024.

In the fourth quarter of 2024, QuantaSing achieved total revenues of RMB1,000.1 million. Revenue from individual online learning services was RMB906.7 million, accounting for 90.7% of total revenues. Revenue from enterprise services was RMB56.6 million, representing 5.7% of total revenues. The wellness products e-commerce segment showed rapid growth, with revenue increasing by 83.3% quarter-over-quarter from RMB18.3 million in Q3 to RMB33.6 million in Q4.

• Management will continue providing specific guidance. Focus on long-term value creation rather than short-term metrics. Committed to creating long-term value in the silver economy.

• Entering new markets and developing new competition space carries inherent risks.

Q: Can you provide any update on the competitive landscape for e-commerce live streaming in China?

A: China's e-commerce live streaming market has huge potential with a projected CAGR of 20% from 2024 to 2026. QuantaSing's unique positioning includes targeted approach for core middle-aged and elderly users, building on existing user base and technology infrastructure, and developing private label products. Confident in strong position due to targeted strategy, user relationships, technology, and operational capability.

Q: On the e-commerce platform, is there any targeted number of products that QuantaSing will be selling or plans to sell either through private label or on third party products?

A: Follow user-centric approach, starting with understanding user needs, selecting product categories aligning with interests, moving from third party products to private label offerings. Focus on approximately 10 flagship products in key categories to maintain quality and brand recognition, aligning with providing comprehensive solutions to users' needs.