IH

• Dr. Peng Dai mentioned the company had strong top-line growth and strengthened its leading position in the childhood edutainment sector. China's online education market continued to grow rapidly, and the company expanded brand awareness and user base. Key business developments included a partnership with Oxford University Press for the iHuman Readers app, progress on co-developing features for an interactive library and AI-powered assessment module, and plans to launch iHumanpedia this summer.
• Vivian Wang discussed financial results, noting robust revenue growth, record high MAUs and paying users, details on operating expenses (R&D, sales and marketing, G&A), and a healthy balance sheet with strong cash balance and no debt.

Based on current estimates, total revenues for the second quarter of 2021 are expected to be between RMB217 million and RMB227 million, representing an increase of 102% to 111% year-over-year. These estimates are management's current and preliminary view, subject to change.

In the first quarter of 2021, revenues from learning services increased by 233% year-over-year to RMB192 million. Total quarter revenues were RMB227 million, up 191% year-over-year. Average total MAUs rose by 97% year-over-year to 16.12 million, and the number of paying users reached a record high of 1.68 million. Gross profit was RMB161 million, an increase of 212% year-over-year, with a gross margin of 71% in Q1 compared to 66% in the same period last year.

Q: Could you please add some colors about the traffic acquisition?

A: Dr. Peng Dai stated product quality is the dominant driver of user growth, the app ranks high on app stores, the company is exploring new growth channels like OTT and social media, and leveraging online-offline synergies for user acquisition