Ladies and gentlemen, good day, and thank you for standing by. Welcome to TAL Education Group’s third quarter fiscal year 2024 earnings conference call. At this time, all participants are in listen-only mode. After the speaker’s presentation, the question-and-answer session. Please be informed that today’s conference is being recorded. I’d now like to hand the conference over to Mr. Jackson Ding, Investor Relations Director. Thank you. Please go ahead, sir. Thank you, and thank you all for joining us today for TAL Education Group's third quarter fiscal year 2024 earnings conference call. The earnings release was distributed earlier today, and you may find a copy on the company's IR website or through the newswires. During this call, you will hear from Mr. Alex Peng, President and Chief Financial Officer, and myself, Investor Relations Director. Following the prepared remarks, Mr. Peng and I will be available to answer your questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. For more information about these risks and uncertainties, please refer to our filings with the SEC. Also, our earnings release and this call include discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures. I would like to turn the call over to Mr. Alex Peng. Alex, please go ahead. Thank you, Jackson. I'd also like to thank all of you for participating in today's conference call. During this call, we'll review our financial performance and business progress in the third quarter of the fiscal year 2024. After that, I will share our thoughts for the next quarter's outlook. Throughout this fiscal quarter, we continued to manage our four businesses while concurrently exploring additional opportunities for development. We've witnessed learning services continuing on its development trajectory, enabling learners' growth and development with our enrichment learning programs, both online and offline. The advancement of learning services is underpinned by our execution on the quality of our service offerings and the capacity of our learning center network. As for content solutions, we remain focused on the creation, curation, and dissemination of quality content tailored to the unique learning pathways of our diverse user base. In an effort to empower learners with the solutions they need to excel, ensuring that each individual's journey is met with resources that resonate with and elevate their learning experience. We continue to execute on our product offerings, as well as go-to-market capabilities for content solutions in this quarter. We've been making programmatic advancements in our technological capabilities, laying a strategic foundation for future innovations. We recognize the transformative potential of this new wave of technologies for our business operations and will harness this power to serve our customers. In terms of our financial performance, we reported net revenues of $373.5 million, or RMB 2.7 billion, for the quarter, representing an increase of 60.5% and 63.7% year-on-year in U.S. dollar and RMB terms, respectively. With respect to profitability, our non-GAAP loss from operations and non-GAAP net loss attributable to TAL for the quarter were $10.2 million and $1.9 million, respectively. With that overview, I'd like to hand the call over back to Jackson, who'll give you an update on our core business lines, operational developments, and review our fiscal third quarter financial results. After that, I'll return to share more details, regarding our outlook for the next quarter, and then open the call for questions. Jackson, please go ahead. Thank you, Alex. I'm pleased to share some details on the progress we made during the third fiscal quarter across our four business lines. Please note that all financial data for the quarter is unaudited. Now, let's start with our learning services and others business, which consists of, among others, a broad range of learning programs for consumers. For the third quarter of fiscal year 2024, learning services and others business continued to achieve year-over-year revenue growth, driven by underlying development of multiple products. The largest revenue contributor within learning services and others is our enrichment learning programs. Through the design of our enrichment learning programs, we aim to nurture the full spectrum of learners' capabilities, enabling their well-rounded development that encompasses a breadth of competencies. In our approach to enrichment learning, we place an emphasis on the cultivation of competencies, recognizing that it complements the mere acquisition of knowledge. These competencies equip learners with the necessary tools to navigate in practical, real-world scenarios. The revenue trend of Peiyou's Small Class enrichment programs tends to correlate with the size of its learning center network. Year-over-year, the increase in capacity has led to enrollment growth. We take a dynamic approach in managing our learning center expansion plans, evaluating several factors such as market demand in each area, user acceptance of our products, our operating capability and efficiency, and et cetera. In alignment with our strategic objectives, our online enrichment learning business has maintained its course of operations. In light of the evolving landscape and observable developments in user behaviors and preferences within the online learning sector over the last couple of years, we continue to innovate on our product offerings and service delivery models. Our online enrichment learning programs aim to offer a unique digital learning experience to its customer base. Regarding our overseas operations, Think Academy sustained continuous growth, exemplified by the addition of new learning centers during the fiscal quarter. As we progress, our strategy is to adopt a dual-focused approach that caters to our international learners by blending standardized educational frameworks with tailored local adaptations, in an effort to meet diverse educational needs while maintaining a coherent global learning experience and standard. Let's transition to content solutions business, comprising of smart books, print books, learning devices, and digital content. Content solutions continued its year-over-year growth momentum in this quarter, driven by development in our product capabilities as well as go-to-market capabilities. Learning devices, and primarily Xueersi xPad, is the leading revenue contributor within the content solutions business during this fiscal quarter. The xPad series aims to offer a comprehensive learning experience for school-aged users at home. xPad is designed to combine extensive content library with interactive learning experience, powered by our application of AI technologies. We market xPad through a range of go-to-market channels, such as online live streaming and e-commerce platforms. Our ongoing efforts include the continuous expansion and management of our sales channels. Throughout this quarter, we continued to work on our product development initiatives, iterating our existing products, as well as introducing new products and features. Our investments in product development includes software, hardware, AI and algorithms, contents, and et cetera. Recently, we introduced a new product featuring upgrades to both its hardware and software, offering users a range of configuration options. The product incorporates refinement on multiple use cases, including motion detection-based interactions, instant question and answer, image recognition-based learning feedback, and et cetera. In addition to xPad, we're also exploring new product formats to meet the diverse demand of varied use cases. One of our early education enlightenment product was awarded the latest TWICE Picks Award at CES 2024. With that overview, I would now like to share our key financial results for the quarter. We recorded net revenues of $373.5 million and RMB 2,715.7 million. An increase of 60.5% and 63.7% year-over-year in USD and RMB terms. Our revenue growth is attributable to the growth of both our learning services and others business, and our content solutions business. Gross profit also increased in the third quarter of fiscal year 2024, rising from $129.7 million for the same period last year to $200.3 million for this quarter. Gross margin decreased to 53.6% from 55.8% for the same period last year. The year-over-year decrease in gross margin is due to a combination of factors, including the changing revenue mix from each business line, as well as changing gross margin of the underlying business lines themselves. Selling and marketing expenses for the quarter were $122 million, an increase of 73.3% compared to $70.4 million for the fiscal third quarter last year. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 82.6% to $116.4 million from $63.8 million for the third quarter of fiscal year 2023. The growth of selling and marketing expenses is mainly driven by increased selling and marketing activities. General and administrative expenses increased by 19% to $110.7 million from $93 million in the third quarter of fiscal year 2023. Non-GAAP general and administrative expenses, which excludes share-based compensation costs, increased by 29.3% year-over-year to $96.7 million from $74.8 million for the same period of fiscal year 2023. Total share-based compensation expenses allocated to related operating costs and expenses decreased by 22.4% to $22 million in the third quarter of fiscal year 2024, from $28.3 million in the same period of fiscal year 2023. Loss of operations was $32.2 million in the third quarter of fiscal year 2024, compared to loss of operations of $32.9 million in the third quarter of fiscal year 2023. Non-GAAP loss from operations, which excluded share-based compensation expenses, was $10.2 million, compared to non-GAAP loss from operations of $4.5 million in the same period of the prior year. Net loss attributable to TAL was $23.9 million in the third quarter of fiscal year 2024, compared to net loss attributable to TAL of $51.6 million in the third quarter of fiscal year 2023. Non-GAAP net loss attributable to TAL, which excluded share-based compensation expenses, was $1.9 million, compared to non-GAAP net loss attributable to TAL of $23.2 million in the third quarter of fiscal year 2023. Moving on to our balance sheet. As of November 30, 2023, we had $2,193.4 million of cash and cash equivalents, $974.2 million of short-term investments, and $329 million in current and non-current restricted cash. Our deferred revenue balance was $507.7 million as of the end of the third fiscal quarter, compared to $237.4 million as of February 28, 2023. Now, turning to our cash flow statement. Net cash provided by operating activities for the third quarter of fiscal year 2024 was $247.1 million. In April 2023, the company's board of directors authorized to extend its share repurchase program, launched in April 2021 by 12 months. Pursuant to the extended share repurchase program, the company may purchase up to approximately $737.4 million in proceeds of its common shares through April 30, 2024. When we last spoke, as of August 31, 2023, the company has repurchased approximately 13.4 million common shares at an aggregate consideration of approximately $233.6 million under the share repurchase program. We did not make any additional purchase in this fiscal quarter 3. That concludes the financial section. I'll now hand the call back to Mr. Alex Peng, to briefly update you on our business outlook. Alex, please go ahead. Thanks, Jackson. As I mentioned earlier, despite a slight quarter-over-quarter revenue decrease, we made material progress this fiscal third quarter. Now, I'd like to share some of my thoughts on our company's outlook of the fiscal fourth quarter. Concerning our learning services and other business, we will continue investing in learning services to bring our users quality learning experience, both online and offline. The overseas market remains one of our new areas for development. Looking ahead, we'll keep extending our services to more customers with dynamic product formats, while leveraging our online and offline capabilities. In terms of content solutions, we target to iterate the functionalities of our learning devices by harnessing AI technologies. This effort aims to transform these products, offering users a learning experience that integrates technology with learning content. Founded in 2003, we're known as a learning technology company that focuses on the essence of education, explores the science of learning, and assists individuals in approaching learning more scientifically. Over the past years, whenever new technology emerges, such as television, computers, the internet, they've been applied to education. We are currently exploring the possibilities of educational transformation in the AI era, attempting to integrate AI with our existing products. We remain open to collaboration and sharing our findings, with the hope of contributing some valuable insights to the global education community. That concludes my prepared remarks. Operator, we're now ready to open the call for questions. Thank you. We will now begin question and answer session. To ask a question, please press star one one on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Once again, that's star one one for questions. Our first question comes from the line of Timothy Zhao from Goldman Sachs. Please ask your question, Timothy. Hi, Alex. Hi, Jackson. Thank you for taking my question, and congrats on the strong quarter. My question is regarding capacity expansion. Just wondering if management can share any color regarding the capacity expansion for the past quarter. And into the longer term, what is your longer term growth plan of the offline learning center capacity expansion? Thank you. Timothy, thanks for the question. This is Jackson. I'll take this one. So you asked about capacity expansion in this last quarter. You know, as we mentioned, the revenue from Peiyou Small Class business tends to correlate with its capacity expansion plan. So in the last quarter, our capacity expansion was in line with our revenue development. You also asked about long-term development plan. Here's how we would look at it. We take a pretty dynamic approach in managing our offline learning center network. When we think about expansion plans for our offline learning centers, we consider several factors. For example, market demand in a particular area, for example, customer acceptance of our product, our own operating capability, operating efficiencies, and et cetera. So it's a pretty, you know, dynamic and balanced approach when we think about capacity management. Moving forward, when we think about the footprint of offline learning center network, it should more or less align with the overall pace of Peiyou Small Class with the overall growth pace of revenue coming from Peiyou Small Class business. And efforts will be made to manage operating indicators while we expand our learning centers. I hope that answers your question, Timothy. Yes, that's helpful. Thank you, Jackson. Thank you, Tim. Our next question comes from the line of Eddy Wang from Morgan Stanley. Please ask your question, Eddy. Hi. Hi, Alex and Jackson. Thank you for taking my question, and also congratulations on the good results. So my question is regarding the smart device. So can you share with us your latest plan of the smart device business? And what are the considerations for the specific functions and the future development of the second generation of the smart devices? Thank you. Hi, Eddy, this is Alex. Thanks for that question. Let me take this one on. So first, maybe let me take a step back and just share a little bit, you know, broadly speaking, on how we look at these devices. I think we're looking at these devices as an integration of high caliber content, advanced AI technology, and high quality hardware. These three together will actually build a, you know, a very compelling learning experience for students at home, where they will learn on their own, at their own pace, according to their own individual learning journey. I think that's kind of broadly speaking, how we look at these, right? So with that, you know, basically the three components: content, technology, AI technology and hardware, they go hand in hand. We're really looking at strategically and programmatically advance our offering across all of those three dimensions. So with the launch of our latest flagship product, you actually see the advancement across all these three, while we continue to update and upgrade experiences for, you know, across all our devices. You know, just as an example, the flagship device we launched in December has a larger screen. It has more advanced eyesight protective technology for the screen. It introduces intelligence functions such as AI dialogue, fingertip translation. It incorporates the capabilities from MathGPT. You know, and its real aim is to facilitate a much more smooth and personalized learning experience for users at home. I also speak of, you know, on our go-to-market side. As you know, and as I shared, in prior calls, our primary sales channels are online, including both live streaming and e-commerce. We're obviously very proactively working on existing channels, the efficiency and the reach of these channels, while exploring additional distribution models. We see really our sales channel is not just a way to distribute our products, but it's also a way to engage in a dialogue, with our potential and existing customers on their learning journey, getting their feedback, you know, getting how they're using these devices to help us continuously, you know, improve and enhance the features. So I hope that helps answer your question. Yes. Thank you, Alex. Thank you, Eddie. Our next question comes from the line of Felix Liu from UBS. Please ask your question, Felix. Hi, good evening, Alex and Jackson. Congratulations on the strong quarter. My question is on AI, which you mentioned for your, you know, one of the key pillar of your future strategy. Could you elaborate a bit more on how do you plan to apply AI to your existing businesses? You mentioned a few of the applications in your second gen hardware. Do you see any other applications, and how do you plan to monetize such AI adoption? And also on your investment in AI, do you think we should expect an increase in AI investment, or current level is already sufficient? Thank you. All right, thanks for that question. This is Alex. Again, you know, I think Jackson mentioned CES earlier. You know, I was there, and I met with you know, many colleagues from across the globe. I think there is really a consensus that, you know, this generation of Generative AI is bringing a truly transformative moment to education. That we're able to provide high quality learning experience, individualized, you know, pathways and affordable cost at the same time. But I think there is also an increasing realization that this is a long journey. It's not gonna happen in just a few months, a few quarters, or just a year. So I think we're really in this for the long haul. And we're looking at where AI comes in, I think across, broadly speaking, you know, 3 dimensions. I think there's obviously huge opportunities to increase the efficiencies of all of our work. We do have a lot of knowledge workers in the company. I think there's a huge opportunity, and it's, you know, one of the most present opportunity that we're working on. I think AI provides a very different type of, you know, interaction along the learning journey. As I, you know, mentioned earlier in our smart devices, I think we are already seeing the early, you know, forms of this type of interaction, where the device is able to be much more helpful along the learning journey. It's much more in tune in terms of where the students are to understand, you know, the paths and challenges faced by, you know, individual students along their journey. I think thirdly, obviously there's, you know, exploration for AI native, you know, use cases in education. So I think, you know, the effort will be along all these three dimensions. You know, then again, I think if you look at, you know, in the past few quarters, I think we were able to really bring the synergy between the, you know, foundation model, our education know-how, so domain knowledge and know-how, and put it into a device. So this really serves as a valuable reference point. AI in this context, honestly, it is not only, it not only operates independently, but also, contributes to the development of lots of existing business lines. So, you know, we're really actively engaging the, you know, product design, operational, improvements. And, you know, we're taking in a lot of, user feedback from both internal, employees and as well as, you know, our customers, you know, from, you know, across the market. And we'll be continuously on that journey, pushing it forward. I hope that answers your question. Yep. Thank you. And congratulations again on the results. Thank you. Thank you. Thank you, Felix. Our next question comes from the line of Caini Wang from CICC. Please ask your question, Caini. Hi, Alex, Jackson. So congrats on the strong results again. And my question is regarding the cash using plans. We can see that, our main business is really going well, and we are accumulating, more cash on our balance. So I'm just wondering, what is our, subsequent plan, our buyback, plans or any other cash plans? Thank you. Caini, thanks for the question, and this is Jackson. I'll take this one. Maybe let me address the buyback plan part first. And I think I may have mentioned this earlier. Under the current extended share repurchase program, we have repurchased approximately 13.4 million common shares at an aggregate consideration of approximately $233.6 million. And as for this fiscal quarter three, we did not make any additional repurchases. Now, if we take a step back and look at kind of broadly how we think about use of cash, we take pretty comprehensive considerations of both short-term and long-term investor short-term and long-term shareholder return, when we think about our- T here are multiple potential uses of cash in the future, including, you know, investing into our core businesses, be it our learning services and others business or content solution businesses, business or other. Also developing new initiatives, as well as generating shareholder returns. I hope that answers your question, Caini. Yeah, thank you, Jackson. That's very helpful. Thank you, Caini. Our next question comes from the line of Yiwen Zhang from China Renaissance. Please go ahead, Yiwen. Hi, Alex Peng. Thanks for taking my question. First, congrats on another strong quarter. So in prepared remarks, you mentioned that the new products of the online enrichment learning business is launching this year. So can you discuss on what it is progress there? Thank you. Yiwen, this is Jackson. I'll take this one. Yes, so as we talked about earlier, the online enrichment space is an evolving landscape, and there have been, you know, observable user behavior developments and preferences in the last couple years. So as a result, we have been observing such developments and acting on innovating our product formats and our service delivery models. When we think about these new products, we aim to deliver innovative and interactive online learning experiences through such new products. And we're focused on delivering products that, you know, create user value and societal benefits. So that we, you know, we'll continue to explore and innovate on these products, and we'll continue to observe how our customer preferences develop over time. I hope that answers your question, Yiwen. Okay. Yes, thank you, Jackson. Thank you, Yiwen. We have reached the end of the question and answer session. I'll now turn the conference back to the management team for closing comments. Yes, very good. Thanks again, everyone, for joining the call today. As we approach Chinese New Year, just wish everybody a happy Year of the Dragon, and we'll see you next quarter. Bye-bye. Thank you. That concludes today's conference call. Thank you for participating. You may now disconnect.