Group 1 - Nongfu Spring (09633) reported a 22% year-on-year increase in net profit for the six months ending June 30, 2025, with packaged drinking water revenue growing by 10.7% [1] - Gu Ming (01364) saw a more than 120% year-on-year increase in net profit for the same period, with steady expansion in store count and impressive GMV performance [1] - China Longgong (03339) reported a 37.83% year-on-year increase in net profit, with the loader business being the largest contributor to revenue and profit [1] - AI concept stocks generally rose, with SenseTime (00020) up over 11% and Fourth Paradigm (06682) up over 9%, following the State Council's release of opinions on implementing "AI+" actions [1] - Cao Cao Mobility (02643) reported a 53.5% year-on-year increase in net profit, with gross margin improving from 7.0% to 8.4% [1] Group 2 - H&H International Holdings (01112) experienced a nearly 77% year-on-year decrease in net profit and proposed an interim dividend of HKD 0.19 per share [2] - NIO (09866) saw its stock price rise over 6% this month, benefiting from strong orders for the Onvo L90 and ES8 SUV models [2] - Chip stocks continued their upward trend, with SMIC (00981) up over 6% and Huahong Semiconductor (01347) up over 3%, as institutions remain optimistic about the domestic chip market [2] - Beike (02423) reported a 7.2% year-on-year decrease in net profit for the mid-year results, with Nomura indicating that its third-quarter guidance was below expectations [2] Group 3 - Gaotu (GOTU.US) reported a more than 37% year-on-year increase in revenue for Q2, alongside a new stock buyback plan worth up to USD 100 million [3] - NIO (NIO.US) rose 10.02% as Morgan Stanley highlighted strong orders for the ES8 and a shift in market sentiment towards next year's models [3] - XPeng Motors (XPEV.US) increased by 5.46% as it announced the official launch of the new P7 model on August 27 [3] - Boeing (BA.US) rose 3.51% after Korean Air announced a purchase order for aircraft valued at approximately USD 36.5 billion [4]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Second Quarter 2025 Key Financial and Operating Data](index=1&type=section&id=Second%20Quarter%202025%20Key%20Financial%20and%20Operating%20Data) The company reported strong Q2 2025 revenue growth, narrowed losses, and increased net operating cash inflow | Metric | Q2 2024 (RMB thousands) | Q2 2025 (RMB thousands) | Pct. Change | | :--- | :--- | :--- | :--- | | Net revenues | 1,009,797 | 1,389,388 | 37.6% | | Gross billings | 1,653,692 | 2,252,387 | 36.2% | | Loss from operations | (464,750) | (241,865) | (48.0)% | | Net loss | (429,550) | (215,994) | (49.7)% | | Non-GAAP net loss | (418,040) | (206,849) | (50.5)% | | Net operating cash inflow | 386,184 | 588,797 | 52.5% | [First Six Months 2025 Key Financial and Operating Data](index=2&type=section&id=First%20Six%20Months%202025%20Key%20Financial%20and%20Operating%20Data) The first half of 2025 saw substantial revenue growth and reduced net loss despite lower operating cash inflow | Metric | 6M 2024 (RMB thousands) | 6M 2025 (RMB thousands) | Pct. Change | | :--- | :--- | :--- | :--- | | Net revenues | 1,956,682 | 2,882,431 | 47.3% | | Gross billings | 2,383,052 | 3,141,112 | 31.8% | | Loss from operations | (542,452) | (207,092) | (61.8)% | | Net loss | (441,847) | (92,003) | (79.2)% | | Non-GAAP net loss | (415,001) | (69,510) | (83.3)% | | Net operating cash inflow | 188,748 | 111,560 | (40.9)% | [Management Commentary](index=2&type=section&id=Management%20Commentary) [CEO Remarks](index=2&type=section&id=CEO%20Remarks) The CEO highlighted solid growth, AI integration, and improved efficiency leading to narrowed losses - Maintained solid growth momentum in core business and harnessed AI to enhance service models, foster product innovation, and strengthen organizational capabilities[7](index=7&type=chunk) - Refined operational execution and improved organizational efficiency led to a **50.5% year-over-year narrowing of non-GAAP net loss**[7](index=7&type=chunk) - Achieved a net operating cash inflow of **RMB588.8 million**, an increase of RMB202.6 million from the same period last year[7](index=7&type=chunk) - Dedicated to advancing educational innovation, delivering best-in-class learning experiences, creating long-term shareholder value, and advancing social impact and commercial success[8](index=8&type=chunk) [CFO Remarks](index=3&type=section&id=CFO%20Remarks) The CFO emphasized a successful 'healthy growth' strategy, with revenues exceeding guidance and improved efficiency - Net revenues **exceeded the upper end of guidance by 5.4%**[9](index=9&type=chunk) - Year-over-year growth rate of gross billings **outpaced that of last quarter by 14.4 percentage points**[9](index=9&type=chunk) - Customer acquisition efficiency reached its **best level in the past four years**[9](index=9&type=chunk) - G&A and R&D expenses decreased year-over-year for the second consecutive quarter as a percentage of net revenues, reflecting **growing operating leverage**[9](index=9&type=chunk) - Maintained an ample cash position, with cash, cash equivalents, restricted cash, and short-term and long-term investments totaling **RMB3.8 billion** as of June 30, 2025[9](index=9&type=chunk) [Detailed Financial Performance (Second Quarter 2025)](index=3&type=section&id=Detailed%20Financial%20Performance%20(Second%20Quarter%202025)) [Net Revenues](index=3&type=section&id=Net%20Revenues) Net revenues increased by 37.6% year-over-year, driven by strong market demand and service recognition | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Net revenues | 1,009.8 | 1,389.4 | 37.6% | - Increase mainly due to continued year-over-year growth in gross billings, resulting from sufficient and effective response to strong market demand[10](index=10&type=chunk) - Improved recognition of high-quality educational products and learning services contributed to revenue growth[10](index=10&type=chunk) [Cost of Revenues](index=3&type=section&id=Cost%20of%20Revenues) Cost of revenues rose by 50.9% year-over-year due to workforce expansion and higher operational costs | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Cost of revenues | 313.4 | 472.8 | 50.9% | - Increase mainly due to expansion of instructors and tutors workforce, higher rental cost, as well as increased depreciation and amortization cost[11](index=11&type=chunk) [Gross Profit and Gross Margin](index=3&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit grew by 31.6%, though gross margin declined as cost of revenues outpaced revenue growth | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Gross profit | 696.4 | 916.5 | 31.6% | | Gross profit margin | 69.0% | 66.0% | (3.0) ppts | | Non-GAAP gross profit | 696.3 | 917.9 | 31.8% | | Non-GAAP gross profit margin | 69.0% | 66.1% | (2.9) ppts | [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Total operating expenses decreased slightly by 0.2% due to reduced marketing expenditures | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Total operating expenses | 1,161.1 | 1,158.4 | (0.2)% | - Decline primarily due to precise efficiency management, resulting in year-over-year decreases in expenditures for branding and marketing activities[13](index=13&type=chunk) - Expansion of selling and general and administrative workforce partially offset the decline of marketing expenditures[13](index=13&type=chunk) [Selling Expenses](index=4&type=section&id=Selling%20Expenses) | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | | :--- | :--- | :--- | | Selling expenses | 835.4 | 820.9 | [Research and Development Expenses](index=4&type=section&id=Research%20and%20Development%20Expenses) | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | | :--- | :--- | :--- | | Research and development expenses | 162.1 | 148.2 | [General and Administrative Expenses](index=4&type=section&id=General%20and%20Administrative%20Expenses) | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | | :--- | :--- | :--- | | General and administrative expenses | 163.6 | 189.3 | [Loss from Operations](index=4&type=section&id=Loss%20from%20Operations) The company significantly narrowed its loss from operations by 48.0% year-over-year | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Loss from operations | (464.8) | (241.9) | (48.0)% | | Non-GAAP loss from operations | (453.2) | (232.7) | (48.6)% | [Interest Income and Realized Gains from Investments](index=4&type=section&id=Interest%20Income%20and%20Realized%20Gains%20from%20Investments) Combined interest income and realized gains from investments decreased year-over-year | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | | :--- | :--- | :--- | | Interest income and realized gains from investments | 29.0 | 19.1 | [Other Income, net](index=4&type=section&id=Other%20Income%2C%20net) Other income, net, saw a slight increase in the second quarter of 2025 | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | | :--- | :--- | :--- | | Other income, net | 4.6 | 5.6 | [Net Loss](index=4&type=section&id=Net%20Loss) Net loss significantly narrowed by 49.7% year-over-year, reflecting improved financial performance | Metric | Q2 2024 (RMB millions) | Q2 2025 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Net loss | (429.6) | (216.0) | (49.7)% | | Non-GAAP net loss | (418.0) | (206.8) | (50.5)% | [Basic and Diluted Net Loss per ADS](index=4&type=section&id=Basic%20and%20Diluted%20Net%20Loss%20per%20ADS) Basic and diluted net loss per ADS decreased significantly in the second quarter of 2025 | Metric | Q2 2025 (RMB) | | :--- | :--- | | Basic net loss per ADS | (0.88) | | Diluted net loss per ADS | (0.88) | | Non-GAAP basic net loss per ADS | (0.84) | | Non-GAAP diluted net loss per ADS | (0.84) | [Financial Position and Cash Flow](index=4&type=section&id=Financial%20Position%20and%20Cash%20Flow) [Cash Flow (Second Quarter 2025)](index=4&type=section&id=Cash%20Flow%20(Second%20Quarter%202025)) The company generated a substantial net operating cash inflow in the second quarter of 2025 | Metric | Q2 2025 (RMB millions) | | :--- | :--- | | Net operating cash inflow | 588.8 | [Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments](index=5&type=section&id=Cash%2C%20Cash%20Equivalents%2C%20Restricted%20Cash%2C%20Short-term%20and%20Long-term%20Investments) The company maintained a strong cash and investment position, though slightly decreased from year-end 2024 | Metric | As of Dec 31, 2024 (RMB millions) | As of June 30, 2025 (RMB millions) | | :--- | :--- | :--- | | Total Cash, Cash Equivalents, Restricted Cash, Short-term and Long-term Investments | 4,094.3 | 3,824.1 | [Share Outstanding](index=4&type=section&id=Share%20Outstanding) As of June 30, 2025, the company had over 162 million ordinary shares outstanding | Metric | As of June 30, 2025 | | :--- | :--- | | Ordinary shares outstanding | 162,382,842 | [Corporate Actions](index=5&type=section&id=Corporate%20Actions) [Share Repurchase Program](index=5&type=section&id=Share%20Repurchase%20Program) The company has an ongoing US$80 million share repurchase program and has authorized a new US$100 million program - Existing share repurchase program authorized up to **US$80 million** (increased from US$30 million in November 2023), effective until November 22, 2025[23](index=23&type=chunk) - As of August 25, 2025, approximately **24.8 million ADSs** were repurchased for approximately **US$76.9 million** under the existing program[24](index=24&type=chunk) - A new share repurchase program was authorized in May 2025 for up to **US$100 million** over a three-year period, commencing upon the completion of the existing program[24](index=24&type=chunk) [Business Outlook](index=5&type=section&id=Business%20Outlook) [Third Quarter 2025 Guidance](index=5&type=section&id=Third%20Quarter%202025%20Guidance) The company expects Q3 2025 net revenues to increase by 28.9% to 30.6% year-over-year | Metric | Q3 2025 Guidance (RMB millions) | YoY Increase | | :--- | :--- | :--- | | Total net revenues | 1,558 to 1,578 | 28.9% to 30.6% | [Supplemental Information](index=5&type=section&id=Supplemental%20Information) [About Gaotu Techedu Inc.](index=6&type=section&id=About%20Gaotu%20Techedu%20Inc.) Gaotu Techedu Inc. is a leading technology-driven education company in China focused on lifelong learning - Leading technology-driven education company in China[28](index=28&type=chunk) - Focuses on enabling lifelong learning through AI-powered solutions that cultivate interest and drive continuous growth[28](index=28&type=chunk) - Provides AI-powered, product-led learning solutions for learners from pre-school to adulthood[28](index=28&type=chunk) - Utilizes AI and data analytics throughout operations to adapt content and teaching methods to individual learner needs, enhance efficiency, and drive sustained learning progress[28](index=28&type=chunk) [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Details for the Q2 2025 earnings conference call and replay are provided for investors - Earnings conference call scheduled for **8:00 AM U.S. Eastern Time on Tuesday, August 26, 2025**[26](index=26&type=chunk) - Dial-in details provided for International, United States, Hong Kong, and Mainland China, with Passcode: 4836755[26](index=26&type=chunk) - A telephone replay will be available through September 2, 2025, with Passcode: 3429136[26](index=26&type=chunk) - Live and archived webcast available at https://ir.gaotu.cn/home[26](index=26&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) This announcement contains forward-looking statements involving inherent risks and uncertainties - Contains forward-looking statements under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995[27](index=27&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, including the company's ability to attract students, recruit teachers, improve courses, maintain brand, improve teaching results, and compete effectively[27](index=27&type=chunk) - The company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law[27](index=27&type=chunk) [About Non-GAAP Financial Measures](index=6&type=section&id=About%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures to evaluate performance, which have specific definitions and limitations - The Company uses gross billings, non-GAAP gross profit, non-GAAP income (loss) from operations, and non-GAAP net income (loss) for evaluating operating results and financial decision-making[29](index=29&type=chunk) - Gross billings are defined as the total cash received for course offerings, net of refunds, providing insight into sales and business performance[30](index=30&type=chunk) - Non-GAAP measures exclude share-based compensation expenses to provide meaningful supplemental information regarding performance and liquidity from a cash perspective[31](index=31&type=chunk) - A limitation of non-GAAP measures is the exclusion of significant recurring share-based compensation charges, and they are not intended as a substitute for GAAP financial information[31](index=31&type=chunk)[32](index=32&type=chunk) [Exchange Rate](index=7&type=section&id=Exchange%20Rate) The announcement uses an exchange rate of RMB7.1636 to USD1.0000 for convenience - All translations from RMB to USD are made at a rate of **RMB7.1636 to USD1.0000**[34](index=34&type=chunk) - The rate is the effective noon buying rate for June 30, 2025, as set forth in the H.10 statistical release of the Federal Reserve Board[34](index=34&type=chunk) - No representation is made that RMB amounts could have been, or could be, converted, realized, or settled into USD at that rate on June 30, 2025, or at any other rate[34](index=34&type=chunk) [Investor Relations Contact](index=7&type=section&id=Investor%20Relations%20Contact) Contact information for investor relations inquiries is provided for the company and its communications firm - Gaotu Techedu Inc. Investor Relations: E-mail: ir@gaotu.cn[35](index=35&type=chunk) - Piacente Financial Communications contacts: Brandi Piacente (Tel: +1 212 481-2050) and Jenny Cai (Tel: +86 10 6508-0677, E-mail: Gaotu@tpg-ir.com)[35](index=35&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Balance Sheets](index=8&type=section&id=Balance%20Sheets) The balance sheets present the company's financial position as of December 31, 2024, and June 30, 2025 Unaudited Condensed Consolidated Balance Sheets (Selected Items) | Metric | As of Dec 31, 2024 (RMB thousands) | As of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Total current assets | 3,639,812 | 4,017,795 | | Total non-current assets | 2,288,165 | 1,950,107 | | **TOTAL ASSETS** | **5,828,077** | **5,868,499** | | **LIABILITIES** | | | | Total current liabilities | 3,260,603 | 3,615,989 | | Total non-current liabilities | 634,009 | 648,749 | | **TOTAL LIABILITIES** | **3,894,613** | **4,264,738** | | **SHAREHOLDERS' EQUITY** | | | | **TOTAL SHAREHOLDERS' EQUITY** | **1,933,464** | **1,603,761** | [Statements of Operations](index=10&type=section&id=Statements%20of%20Operations) The statements of operations detail revenues, costs, and net loss for the three and six-month periods Unaudited Condensed Consolidated Statements of Operations (Selected Items) | Metric | Q2 2024 (RMB thousands) | Q2 2025 (RMB thousands) | 6M 2024 (RMB thousands) | 6M 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Net revenues | 1,009,797 | 1,389,388 | 1,956,682 | 2,882,431 | | Cost of revenues | (313,433) | (472,840) | (584,847) | (925,301) | | Gross profit | 696,364 | 916,548 | 1,371,835 | 1,957,130 | | Total operating expenses | (1,161,114) | (1,158,413) | (1,914,287) | (2,164,222) | | Loss from operations | (464,750) | (241,865) | (542,452) | (207,092) | | Net loss | (429,550) | (215,994) | (441,847) | (92,003) | | Basic net loss per ADS | (1.65) | (0.88) | (1.71) | (0.37) | [Reconciliations of Non-GAAP Measures](index=11&type=section&id=Reconciliations%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP financial measures to their most comparable GAAP measures Reconciliation of Gross Billings | Metric | Q2 2024 (RMB thousands) | Q2 2025 (RMB thousands) | 6M 2024 (RMB thousands) | 6M 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Net revenues | 1,009,797 | 1,389,388 | 1,956,682 | 2,882,431 | | Less: other revenues | 29,233 | 22,092 | 56,500 | 36,916 | | Add: VAT and surcharges | 62,586 | 85,782 | 119,993 | 179,158 | | Add: ending deferred revenue | 1,582,135 | 2,196,993 | 1,582,135 | 2,196,993 | | Add: ending refund liability | 85,520 | 133,308 | 85,520 | 133,308 | | Less: beginning deferred revenue | 1,003,314 | 1,444,967 | 1,237,621 | 2,085,893 | | Less: beginning refund liability | 53,799 | 86,025 | 67,157 | 127,969 | | **Gross billings** | **1,653,692** | **2,252,387** | **2,383,052** | **3,141,112** | Reconciliation of Non-GAAP Profit/Loss Measures | Metric | Q2 2024 (RMB thousands) | Q2 2025 (RMB thousands) | 6M 2024 (RMB thousands) | 6M 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Gross profit (GAAP) | 696,364 | 916,548 | 1,371,835 | 1,957,130 | | Share-based compensation expenses in cost of revenues | (43) | 1,353 | 2,278 | 3,463 | | **Non-GAAP gross profit** | **696,321** | **917,901** | **1,374,113** | **1,960,593** | | Loss from operations (GAAP) | (464,750) | (241,865) | (542,452) | (207,092) | | Share-based compensation expenses | 11,510 | 9,145 | 26,846 | 22,493 | | **Non-GAAP loss from operations** | **(453,240)** | **(232,720)** | **(515,606)** | **(184,599)** | | Net loss (GAAP) | (429,550) | (215,994) | (441,847) | (92,003) | | Share-based compensation expenses | 11,510 | 9,145 | 26,846 | 22,493 | | **Non-GAAP net loss** | **(418,040)** | **(206,849)** | **(415,001)** | **(69,510)** |

Core Viewpoint - The company, Gaotu Group, reported significant growth in revenue and cash income for the second quarter of fiscal year 2025, driven by the integration of AI technology into its educational services [2][4]. Financial Performance - In Q2 2025, Gaotu achieved revenue of approximately 1.39 billion yuan, a year-on-year increase of 37.6%, and cash income of 2.25 billion yuan, up 36.2% [4]. - For the first half of the year, the company reported total revenue of 2.88 billion yuan, reflecting a 47.3% year-on-year growth, and cash income of 3.14 billion yuan, which is a 31.8% increase [4]. - As of June 30, 2025, Gaotu held cash and cash equivalents, restricted funds, and short-term and long-term investments totaling 3.82 billion yuan [5]. AI Integration and Operational Efficiency - Gaotu has adopted an "All with AI, Always AI" strategy, embedding AI deeply into its operations and customer experience to enhance educational services [5]. - The company upgraded its traditional "dual-teacher model" to a "three-teacher model," which includes a core teacher, a secondary teacher for personalized tutoring, and an AI companion for real-time assistance, significantly improving service quality and learning outcomes [6]. - AI technology has streamlined operations by automating tasks such as assignment grading and learning analysis, allowing teachers to focus on innovation and personalized service [6]. Cost Management and Growth Strategy - In Q2 2025, Gaotu experienced a year-on-year decrease in the ratio of operating expenses to revenue, with a notable 31.6 percentage point reduction [7]. - Research and management expenses as a percentage of revenue also decreased by 8.0 percentage points, indicating improved operational efficiency due to AI integration [7]. - The company's CEO emphasized the commitment to enhancing service models, product innovation, and organizational capabilities to ensure sustainable growth and long-term value creation for shareholders [7].

Financial Data and Key Metrics Changes - Revenue increased by 37.6% year over year to nearly CNY 1,400,000,000 [8] - Gross billings rose by 36.2% to approximately CNY 2,300,000,000 [8] - Net loss narrowed by 50.5% year over year on a non-GAAP basis [8] - Net operating cash inflow was CNY 588,800,000, an increase of CNY 202,600,000 from the same period last year [9] - Deferred revenue increased by 38.9% year over year to about CNY 2,200,000,000 [19] Business Line Data and Key Metrics Changes - Learning services contributed over 95% of net revenues, with academic tutoring services and traditional learning services accounting for over 85% of total revenues, representing a 50% year over year increase [21] - Non-academic tutoring services in both online and offline settings saw gross billings up by over 100% year over year, contributing nearly 40% of total revenues [22] - Educational services for college students and adults contributed over 10% of total revenues, with operating cash flow turning positive [26] Market Data and Key Metrics Changes - The number of students admitted to the top two universities in China from Gaotu's class of 2025 reached 267, marking five consecutive years of growth [25] - Referral rate surged by 75% compared to a year ago [25] Company Strategy and Development Direction - The company is deepening its investment in AI to enhance teaching models and technology infrastructure, aiming for personalized learning at scale [9][10] - A tri-teacher model has been introduced, integrating instructors, tutors, and AI companions to improve educational delivery [10] - The company is focused on building a lifelong learning services platform that is accessible and enjoyable for all [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future trajectory, citing a diverse educational product portfolio and evolving AI technology capabilities [16] - The company aims for a year-over-year revenue growth target of around 30%, with first half growth standing at approximately 47.3% [49] Other Important Information - The company has allocated nearly CNY 557,000,000 for share repurchases, demonstrating a commitment to long-term shareholder value [16] - The company is actively expanding into emerging traffic platforms and optimizing customer acquisition mechanisms [24] Q&A Session Summary Question: Update on offline centers development - Management reported that offline learning center revenue grew by more than 20% year over year, contributing over 5% of gross billings [35] - The offline business is leveraging in-person interaction to build trust and enhance customer loyalty [35][36] Question: Insights on summer enrollment and industry outlook - Management noted that summer enrollment exceeded expectations, with improved teaching quality leading to higher retention rates [44] - The company expects continued positive trends in customer acquisition efficiency and revenue growth for the third quarter [46][50]

Financial Data and Key Metrics Changes - In Q2 2025, the company's revenue increased by 37.6% year over year to nearly CNY 1,400,000,000, with gross billings up by 36.2% to approximately CNY 2,300,000,000 [9][19] - The net loss was narrowed by 50.5% year over year on a non-GAAP basis, with a net operating cash inflow of CNY 588,800,000, an increase of CNY 202,600,000 from the same period last year [9][10] - Deferred revenue increased by 38.9% year over year to about CNY 2,200,000,000, providing a solid foundation for sustained future growth [20] Business Line Data and Key Metrics Changes - Learning services contributed over 95% of net revenues, with over 85% coming from academic tutoring services, which saw a 50% year-over-year increase [22] - Non-academic tutoring services in both online and offline settings delivered strong growth, with gross billings up by over 100% year over year, contributing nearly 40% of total revenues [23] - Educational services for college students and adults contributed over 10% of total revenues, with operating cash flow turning positive [26] Market Data and Key Metrics Changes - The referral rate surged by 75% compared to a year ago, indicating strong customer satisfaction and brand loyalty [26] - The number of students admitted to the top two universities in China from Gaotu's class of 2025 reached 267, marking five consecutive years of growth [26] Company Strategy and Development Direction - The company is deepening its investment in AI to enhance teaching models and technology infrastructure, aiming to empower personalized learning at scale [10][11] - A new tri-teacher model has been introduced, integrating instructors, tutors, and AI companions to improve educational delivery [11] - The company is focused on building a lifelong learning services platform that is accessible and enjoyable for all, with a comprehensive product portfolio [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future trajectory, citing a diverse educational product portfolio and rapidly evolving AI technology capabilities [17] - The company aims to deliver a best-in-class learning experience while creating long-term shareholder value and advancing social impact [18] - The guidance for total net revenues in 2025 is expected to be between CNY 1,578,000,000, representing an increase of 28.9% to 30.6% year over year [32] Other Important Information - The company has allocated nearly CNY 557,000,000 to repurchase approximately 25,000,000 ADS, demonstrating a commitment to long-term shareholder value [16] - The company is actively expanding into emerging traffic platforms and introducing innovative products to optimize customer acquisition mechanisms [23] Q&A Session Summary Question: Update on offline centers development - Management reported that offline learning center revenue grew by more than 20% year over year, contributing over 5% of gross billings this quarter, with strong customer loyalty and brand recognition driving growth [36][37][39] Question: Insights on summer enrollment and full-year growth outlook - Management highlighted that summer enrollment exceeded expectations, with improved teaching quality and retention rates contributing to strong performance. The company raised its revenue growth expectations for the full year based on strong first-half results [46][49][52]

截至2025年6月30日，公司持有的现金及现金等价物、受限资金、短期及长期投资总计38.2亿元。根据 当前预测数据，2025年第三季度收入应介于15.58亿元至15.78亿元之间，同比增幅应介于28.9%至30.6% 之间。 在现有回购计划中，截至2025年8月25日，公司累计回购超过2480万美国存托股，金额约5.6亿元。2025 年5月，公司董事会又批准了一项新股票回购计划，根据该计划，公司可在现有股票回购计划结束之日 起的三年期间回购至多1亿美元价值的股票。 AI技术的深度应用为高途在个性化运营、教学与服务等全链路环节带来了质的飞跃。数据显示，2025 年高途连续两个季度实现经营费用占收入比重的下降，其中第二季度经营费用占收比同比降低31.6个百 分点。尤为关键的是，包含研发费用与管理费用在内的固定费用占收入比重同比下降8.0个百分点，充 分体现了AI技术对成本优化的显著成效。 来源：市场资讯 （来源：AI云科技财经） 8月26日，高途集团发布2025财年第二季度财报。财报显示，截至2025年6月30日，高途在第二季度实现 收入约13.9亿元，同比增长37.6%；现金收入22.5亿元，同比增长36.2% ...

Core Insights - Gaotu Group (NYSE: GOTU) reported Q2 2025 revenue of approximately 1.39 billion yuan, a year-on-year increase of 37.6% [1] - The company achieved cash revenue of 2.25 billion yuan in Q2, up 36.2% year-on-year, with a net cash inflow from operations of 590 million yuan [1] - For the first half of 2025, Gaotu's total revenue reached 2.88 billion yuan, reflecting a 47.3% year-on-year growth [1] Financial Performance - Deferred revenue reached a record high of nearly 2.2 billion yuan in Q2, marking a 38.9% year-on-year increase, which supports future business growth [1] - The net cash inflow from operations in Q2 increased by over 200 million yuan year-on-year to approximately 590 million yuan [1] - As of June 30, Gaotu's cash reserves stood at 3.82 billion yuan, with a year-on-year increase of about 140 million yuan when excluding the impact of share buybacks [1] Strategic Initiatives - The strong financial performance provides Gaotu with ample space and flexibility for strategic development and market expansion [1] - The company is committed to increasing investment in research and development, deepening its AI strategy, and exploring diversified products and services [1] - Gaotu has been actively repurchasing shares, having bought back over 24.8 million ADS for approximately 560 million yuan by August 25, signaling confidence in its growth prospects [2] Future Outlook - Current forecasts suggest that Gaotu's revenue for Q3 2025 will range between 1.558 billion yuan and 1.578 billion yuan, with a year-on-year growth rate between 28.9% and 30.6% [2]

高途集团创始人、董事长兼CEO陈向东表示："在稳固核心业务增长的同时，我们积极推动人工智能技 术赋能的服务模式优化、产品创新及组织力提升，构建清晰的增长路径和可持续的发展优势。本季度收 入为约13.9亿元，同比增长37.6%；实现现金收款22.5亿元，同比增长36.2%。得益于精细化运营和组织 效能提升，non-GAAP口径下，净亏损同比下降50.5%。经营净现金流入近5.9亿元，同比增加超过2.0亿 元，充分反映出公司在保持积极增长态势的同时，也在稳固经营质量和提升业务竞争力。" 高途集团CFO沈楠表示："本季度，我们坚定推进"健康增长"战略，收入超出指引上限5.4%，现金收入 增速环比上季度提升14.4个百分点。在持续提升经营效率和优化资源配置的推动下，经营亏损和净亏损 同比均大幅收窄，获客效率达到近四年来的最优水平。管理费用与研发费用占收入比重已连续两个季度 实现下降，经营杠杆得到充分释放。公司现金储备充足，截止2025年6月30日，现金及现金等价物、受 限资金以及短期与长期投资合计38.2亿；若排除掉回购影响，现金储备同比增加约1.4亿。核心成熟业务 的造血能力和经营质量不断增强，得益于我们过往在用户 ...

在现有回购计划中，截至2025年8月25日，公司累计回购超过2480万美国存托股，金额约5.6亿元。2025 年5月，公司董事会又批准了一项新股票回购计划，根据该计划，公司可在现有股票回购计划结束之日 起的三年期间回购至多1亿美元价值的股票。 高途集团创始人、董事长兼CEO陈向东表示："在稳固核心业务增长的同时，我们积极推动人工智能技 术赋能的服务模式优化、产品创新及组织力提升，构建清晰的增长路径和可持续的发展优势。本季度收 入为约13.9亿元，同比增长37.6%；实现现金收款22.5亿元，同比增长36.2%。得益于精细化运营和组织 效能提升，non-GAAP口径下，净亏损同比下降50.5%。经营净现金流入近5.9亿元，同比增加超过2.0亿 元，充分反映出公司在保持积极增长态势的同时，也在稳固经营质量和提升业务竞争力。 "高途将持续深耕教育创新，为用户提供最优质的学习体验，为股东创造长期价值，实现社会责任与商 业价值的双重提升。" 高途集团CFO沈楠表示："本季度，我们坚定推进"健康增长"战略，收入超出指引上限5.4%，现金收入 增速环比上季度提升14.4个百分点。在持续提升经营效率和优化资源配置的推动下，经 ...

Core Viewpoint - Gaotu (GOTU.US) reported a significant improvement in its Q2 2025 financial performance, with a notable increase in revenue and a reduction in net losses compared to the previous year [1] Financial Performance - Q2 net revenue reached 1.3894 billion RMB, representing a year-over-year growth of 37.6% [1] - The net loss for Q2 was 216 million RMB, down from a net loss of 429.6 million RMB in the same period last year, with basic and diluted loss per ADS at 0.88 RMB [1] - Non-GAAP net loss was 206.8 million RMB, compared to 418 million RMB in the prior year [1] - Gross billings amounted to 2.2524 billion RMB, reflecting a year-over-year increase of 36.2% [1] - Net operating cash inflow was 588.8 million RMB, up 52.5% year-over-year [1] Future Outlook - The company anticipates total net revenue for Q3 to be between 1.558 billion and 1.578 billion RMB, indicating a year-over-year growth of 28.9% to 30.6% [1] - Following the earnings report, Gaotu's stock rose by 2.65% in pre-market trading [1]