Sunlands Technology Group Q4 FY2025 earnings call

Prior to commencing, reminded that financial information is on continuity operation basis and figures in RMB unless specified. Closed first quarter with net revenue of $417.2 million and net income of $38.4 million, 19th consecutive quarter of profitability. Full year net revenue reached $2.02 billion, up 1.5% year-over-year, net income increased 6.9% to $365.6 million, gross margin expanded by 2.9 percentage points to 86.9%. Deliberate choices made in 2025 like tightening customer acquisition, strengthening delivery consistency, improving organizational efficiency. Degree and diploma-oriented post-secondary programs: demand stable but moderating investment. Interest, professional skills, and certification preparation programs: primary strategic direction is interest-based learning, senior learners core, China's senior population expanding, market for senior interest education in early stage. Fourth quarter enriched online courses for senior learners and emphasized offline activities. Past year AI applied in adult education, first quarter R&D expenses increased 71.3% year-over-year.

Degree and diploma-oriented post-secondary programs contributed 13.5% of full-year net revenues and 18.2% in the fourth quarter. Interest, professional skills, and certification preparation programs together contributed 73.9% of full year net revenue and 66.8% in the fourth quarter.

First quarter of 2026 Sunland currently expects net revenues to be between 420 million to 440 million, which would represent a decrease of 9.8% to 13.9% year-over-year. The outlook is based on current market conditions and subject to substantial uncertainty.

At this time, we are showing no questions, so this will conclude our question and answer session.