Investor Presentation Investor Presentation Q3 FY 2023 Second Quarter, Fiscal Year 2025 Disclaimer Information in this presentation and the accompanying oral presentation (the "Presentation"), including, among others, any statements regarding QuantaSing's market position, users and learners and other metrics, is based on data and analyses from various sources as of the date of the Presentation, unless otherwise indicated. Information in the Presentation contains "forward-looking statements" within the meani ...

Core Viewpoint - QuantaSing Group Limited is undergoing a strategic transition focusing on high-quality growth, particularly in the silver economy market, while maintaining operational efficiency and exploring new revenue streams [3][4][5]. Financial Performance - Revenues for the second quarter of FY 2025 were RMB726.6 million (US$99.6 million), a decrease of 10.3% from the first quarter of FY 2025 and a decrease of 25.9% from the second quarter of FY 2024 [4][5]. - Gross billings from individual online learning services were RMB546.2 million (US$74.8 million), reflecting a decrease of 23.5% from the first quarter of FY 2025 and a decrease of 42.2% from the second quarter of FY 2024 [5][6]. - Net income for the second quarter of FY 2025 was RMB126.8 million (US$17.4 million), an increase of 57.1% from the first quarter of FY 2025 and an increase of 17.8% from the second quarter of FY 2024 [5][11]. - Adjusted net income for the second quarter of FY 2025 was RMB132.0 million (US$18.1 million), representing an increase of 50.0% from the first quarter of FY 2025 and an increase of 27.1% from the second quarter of FY 2024 [5][11]. User Growth - Total registered users increased by 24.2% to approximately 139.6 million as of December 31, 2024, compared to 112.4 million as of December 31, 2023 [5]. Cost Management - Cost of revenues decreased to RMB122.5 million (US$16.8 million), down 15.5% from RMB145.0 million in the second quarter of FY 2024, primarily due to reduced labor outsourcing costs [7]. - Sales and marketing expenses were RMB407.0 million (US$55.8 million), a decrease of 38.1% from RMB657.1 million in the second quarter of FY 2024 [8]. - Research and development expenses were RMB28.4 million (US$3.9 million), down 30.9% from RMB41.0 million in the second quarter of FY 2024 [9]. Consumer Business Growth - Revenues from the consumer business increased to RMB64.5 million (US$8.8 million) in the second quarter of FY 2025, representing a 39.0% increase from RMB46.4 million in the second quarter of FY 2024 [14]. Investments and Strategic Initiatives - The company has invested in Shenzhen Yiqi Culture Co., Ltd. (Letsvan), focusing on IP incubation and cultural products, which is expected to unlock new business opportunities [16]. - A share repurchase program of up to US$20.0 million was approved, with 1.7 million ADSs repurchased for an aggregate consideration of US$3.6 million as of December 31, 2024 [17].

Core Viewpoint - QuantaSing Group Limited is set to release its unaudited financial results for Q4 2024 on March 11, 2025, before the U.S. market opens [1] Group 1: Financial Results Announcement - The unaudited financial results for the quarter ended December 31, 2024, will be announced before the U.S. market opens on March 11, 2025 [1] - An earnings conference call will be held at 07:00 A.M. Eastern Time on the same day to discuss the financial results [2] - The call will be accessible via multiple international and toll-free numbers, with a replay available until March 18, 2025 [2] Group 2: Company Overview - QuantaSing is a leading lifestyle solution provider focused on empowering adults to live better and longer [3] - The company offers affordable and accessible online courses and consumer products aimed at addressing the wellness aspirations of senior users [3]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were RMB810.4 million, representing a 6.8% decrease year-over-year, primarily due to the strategic repositioning towards the silver economy market [24][30] - Gross profit for the quarter was RMB676 million with a gross margin of 83.4%, down from 86.4% in the same period last year [26] - Net income was RMB80.7 million, representing a net margin of 10%, with adjusted net income at RMB88 million and an adjusted net margin of 10.9% [30][31] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB1,193.7 million, an increase from RMB1,026.3 million at the end of the previous quarter [18][30] Business Line Data and Key Metrics Changes - Individual online learning services generated revenues of RMB709 million, accounting for 87.5% of total revenues, with gross billings showing a modest decline of 6.3% year-over-year [24][26] - Revenues from enterprise services were RMB47.8 million, reflecting a 30.2% change from a year ago, representing 5.9% of total revenues [26] Market Data and Key Metrics Changes - The company is focusing on the silver economy, which has expanded beyond basic elderly care to include lifestyle, wellness, and enrichment services [8][21] - The silver economy in China represents a significant opportunity, with over 80% of the silver population engaged in investor-based learning [20][21] Company Strategy and Development Direction - The company is transitioning its focus from broad market reach to building lasting relationships with silver economy customers, developing integrated solutions for health, wellness, and personal enrichment [7][10] - A clear focus on sustainable profitability is maintained throughout the transition, with plans for pilot programs in urban districts to test and refine operational models [16][31] - The company aims to balance growth investments with shareholder returns, including share repurchase programs when stock is undervalued [46][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges and opportunities presented by the macroeconomic backdrop in China, emphasizing the importance of adapting to evolving consumer behaviors and spending patterns [35][36] - The company anticipates positive impacts from government initiatives focused on the silver economy, which aim to boost purchasing power and improve quality of life for senior citizens [37][38] - Despite the strategic transition impacting near-term revenue, management is confident in the long-term value creation potential within the silver economy [22][31] Other Important Information - The company has successfully maintained healthy profitability during its strategic transition, demonstrating its ability to navigate changes while safeguarding shareholder value [8][17] - A special dividend was announced in October, reflecting the company's robust financial health and commitment to investing in its silver economy strategy [19][30] Q&A Session Summary Question: Impact of macroeconomic backdrop and government stimulus on the business - Management recognizes challenges and opportunities, noting that evolving consumer behaviors influence spending patterns, but the diversified portfolio allows adaptation to these shifts [35][36] Question: Customer acquisition cost to lifetime value during the transition - Management is actively optimizing customer acquisition costs and expects favorable trends as the focus shifts to private label products, leveraging the existing user base [40][42] Question: Strategy for balancing growth investments and shareholder returns - The capital allocation strategy aims for sustainable growth while returning capital to shareholders, with a focus on strategic growth investments and share repurchase programs [46][49] Question: Growth expectations for the e-commerce business - Management views the private label strategy as a significant long-term opportunity, with steady growth anticipated, supported by a solid foundation of registered users and customer satisfaction [50][51]

Core Viewpoint - QuantaSing Group Limited reported a strategic pivot towards the silver economy in China, aiming to align its offerings with the needs of the aging population while maintaining profitability and positive cash flow [3][25]. Financial Performance - Revenues for the first quarter of FY 2025 were RMB810.4 million (US$115.5 million), a decrease of 19.0% from the previous quarter and a decrease of 6.8% year-over-year [2][4]. - Gross billings from individual online learning services were RMB713.7 million (US$101.7 million), down 7.8% from the previous quarter and 6.3% year-over-year [2]. - Net income for the first quarter was RMB80.7 million (US$11.5 million), compared to RMB196.6 million in the previous quarter and RMB66.7 million in the same quarter last year [2][11]. - Adjusted net income was RMB88.0 million (US$12.5 million), down from RMB193.6 million in the previous quarter and RMB94.0 million year-over-year [2][11]. User Growth - Total registered users increased by 30.2% to approximately 134.6 million as of September 30, 2024, from 103.3 million a year earlier [2]. - Paying learners increased by 16.8% year-over-year to approximately 0.4 million in the first quarter of FY 2025 [2]. Revenue Breakdown - Revenues from individual online learning services decreased by 6.2% year-over-year to RMB709.0 million (US$101.0 million) [5]. - Revenues from enterprise services were RMB47.8 million (US$6.8 million), down from RMB68.4 million year-over-year [6]. - Revenues from consumer business increased to RMB49.5 million (US$7.1 million), a 10.4% increase from the previous year [6]. Cost Management - Cost of revenues increased to RMB134.4 million (US$19.2 million), up 13.8% year-over-year, primarily due to higher labor outsourcing and procurement costs [7]. - Sales and marketing expenses decreased by 17.0% to RMB515.0 million (US$73.4 million) [8]. - Research and development expenses decreased by 35.9% to RMB28.1 million (US$4.0 million) [9]. - General and administrative expenses decreased by 28.4% to RMB30.6 million (US$4.4 million) [10]. Cash Position - As of September 30, 2024, the company had cash and cash equivalents of RMB1,193.7 million (US$170.1 million), an increase from RMB1,026.3 million as of June 30, 2024 [13]. Recent Developments - The board declared a special cash dividend of US$0.067 per ordinary share, totaling US$10.9 million paid in November 2024 [15]. - A share repurchase program of up to US$20.0 million was approved, with US$3.5 million spent on repurchasing 1.7 million ADSs as of September 30, 2024 [16].

Core Viewpoint - QuantaSing Group Limited has filed its annual report on Form 20-F for the fiscal year ended June 30, 2024, with the SEC, highlighting its commitment to transparency and regulatory compliance [1] Group 1: Company Overview - QuantaSing is a leading lifestyle solution provider focused on empowering adults to live better and longer [2] - The company offers affordable and accessible online courses tailored for adult learners, along with consumer products and services aimed at addressing the wellness aspirations of senior users [2] Group 2: Financial Reporting - The annual report includes audited consolidated financial statements and is available for shareholders and ADS holders upon request [1] - The report can be accessed on the SEC's website and the company's investor relations website [1]

Financial Performance - For the fiscal year ended June 30, 2024, the total revenues amounted to RMB 3,795.3 million, with external revenues of RMB 3,795.3 million and intra-group revenues of RMB 673.8 million[24]. - The net income for the fiscal year ended June 30, 2024, was RMB 385.5 million, reflecting a significant increase compared to previous years[24]. - The share of income from subsidiaries for QuantaSing Group Limited was RMB 348.5 million for the fiscal year ended June 30, 2024[24]. - The company reported a net loss of RMB 233,426 thousand for the fiscal year ended June 30, 2023, highlighting ongoing challenges in profitability[26]. - The company recorded a net loss of RMB233.4 million and RMB108.7 million for the fiscal years ended June 30, 2022 and 2023, respectively, but achieved a net income of RMB385.5 million (US$53.1 million) for the fiscal year ended June 30, 2024[73]. Revenue Sources - The company relies on dividends from subsidiaries and service fees from affiliated entities for its ability to pay dividends to shareholders[19]. - The total amount of service fees charged to the VIEs and their subsidiaries by WFOEs was RMB 230.3 million, RMB 392.2 million, and RMB 673.4 million for the fiscal years ended June 30, 2022, 2023, and 2024, respectively, showing a significant increase of 73% from 2022 to 2023[36]. - The company began offering financial literacy learning services in July 2019, which accounted for 80.2%, 60.8%, and 34.4% of total revenues for the fiscal years ended June 30, 2022, 2023, and 2024, respectively[46]. - New course offerings in skills upgrading and recreation and leisure accounted for 6.8%, 27.9%, and 54.2% of total revenues for the fiscal years ended June 30, 2022, 2023, and 2024, respectively[46]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, totaled RMB 779,931 thousand, indicating a strong liquidity position[27]. - The net cash transferred by the VIEs and their subsidiaries to other subsidiaries was RMB 142.0 million for the fiscal year ended June 30, 2024[21]. - The net increase in cash and cash equivalents for the fiscal year was RMB 497,854 thousand, a substantial rise compared to the previous year's increase of RMB 241,326 thousand[36]. - Cash flows from investing activities showed a net outflow of RMB 201 thousand, with significant transactions involving intra-group companies[36]. Regulatory Environment - The company is subject to evolving PRC laws and regulations, which may impact its operations and require additional licenses in the future[16]. - The CSRC Filing Rules require any future overseas securities offerings to comply with filing requirements, which could lead to regulatory sanctions if not adhered to[18]. - The PCAOB's ability to inspect auditors in China may affect the company's trading status under the HFCAA, posing a risk to investment value[38]. - The PRC government has significant authority over offshore holding companies, and changes in regulations could materially affect the company's operations and securities value[120]. Risks and Challenges - The VIE structure presents unique risks, including potential breaches of contractual arrangements by VIEs and their shareholders[15]. - The company faces risks related to user acquisition efficiency and the ability to maintain high-quality teaching staff[40]. - The company may incur significant investments in establishing and maintaining cooperative relations and pursuing R&D projects for new business initiatives[50]. - The company faces uncertainties regarding the enforcement and interpretation of PRC laws and regulations, which could materially affect business operations and financial condition[124]. Corporate Governance and Structure - The company has a dual-class voting structure that may discourage change of control transactions, affecting shareholder interests[149]. - The company is classified as a "controlled company," allowing it to rely on exemptions from certain corporate governance requirements[153]. - The board of directors has complete discretion over dividend distribution, which may depend on future results of operations and cash flow[165]. - The company may face difficulties in protecting shareholder interests due to its incorporation under Cayman Islands law and operations primarily in emerging markets[166]. Market Position and Competition - QuantaSing is the largest service provider in China's online adult learning market in terms of revenue for 2022, according to F&S report[189]. - The company is subject to intense competition in the online adult learning market, which may impact its ability to attract and retain learners[40]. - The online adult learning market in China is competitive, with the company facing pressure to reduce course fees or increase spending to maintain market share[55]. Acquisitions and Growth Strategy - The company acquired KELLY'S EDUCATION LIMITED in September 2023, marking its entry into the global online education market and the language learning sector[50]. - The company has limited experience in successfully utilizing acquisitions as a growth strategy, which may impair future growth if challenges are not effectively addressed[95]. - The company is exploring opportunities to expand its service offerings into overseas markets to meet rising demands[50]. Cybersecurity and Data Protection - The company has implemented comprehensive cybersecurity and data protection policies, procedures, and measures to safeguard personal information rights and ensure secured storage and transmission of data[65]. - The PRC Data Security Law and the Personal Information Protection Law impose strict requirements on data collection and processing, which the company has been compliant with[65]. - The company has received notifications regarding excessive data collection from local communications administration but has taken rectification measures without incurring penalties[65]. Shareholder and ADS Information - The company raised approximately US$38.6 million in net proceeds from the initial public offering of 3,377,396 ADSs in February 2023[186]. - Holders of ADSs have limited voting rights and must provide instructions to the depositary to vote on their behalf[171]. - The depositary may amend or terminate the deposit agreement without the consent of ADS holders, with at least 30 days' notice for significant changes[175].

Financial Data and Key Metrics Changes - The company achieved a revenue of RMB1,000.1 million for Q4 2024, representing a year-over-year growth of 20.7% [23] - Adjusted net income reached RMB193.6 million, up from RMB90.4 million in the same period last year [6][26] - Gross profit was RMB858.8 million, with a gross margin of 85.9%, slightly down from 86% year-over-year [24] Business Line Data and Key Metrics Changes - Revenues from individual online learning services grew by 25.7% year-over-year to RMB906.7 million, accounting for 90.7% of total revenues [24] - Revenues from enterprise services were RMB56.6 million, a decrease of 45.5% from a year ago [24] - The wellness products e-commerce segment grew by 83.3% quarter-over-quarter from RMB18.3 million in Q3 to RMB33.6 million in Q4 [17] Market Data and Key Metrics Changes - The silver economy in China surpassed RMB14.4 trillion in final consumption value in 2023, with significant growth projected [7] - The rural population in China is expected to reach 650 million by 2028, representing 46.3% of the total population, indicating a substantial market opportunity [7] Company Strategy and Development Direction - The company is pivoting towards the silver economy, focusing on the holistic needs of adult users, particularly the elderly demographic [6][21] - The strategy includes expanding online learning offerings, developing offline consumption scenarios, and launching branded consumer products through live e-commerce [11][12][13] - The company aims to create a comprehensive ecosystem that serves the educational, social, and consumer needs of the silver population [13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of understanding and addressing the unique needs of the silver demographic, which includes health maintenance and social interaction [8][10] - The company is committed to long-term value creation rather than short-term metrics, aligning with its strategic goals in the evolving market [21][27] - The management expressed confidence in their strong foundation in adult education and technology capabilities to navigate the challenges of the silver economy [21][27] Other Important Information - As of June 30, 2024, the company held RMB1,026.3 million in cash and cash equivalents, providing flexibility for strategic investments [18][26] - The company continues to maintain its presence in broader education markets through Kelly's Education, while focusing on the silver economy in mainland China [19] Q&A Session Summary Question: Update on the competitive landscape for e-commerce live streaming in China - Management noted that the e-commerce live streaming market is rapidly evolving, with a projected market size of around RMB5 trillion by 2023 and a 20% CAGR from 2024 to 2026 [32] - The company believes its targeted approach and existing user base position it well for success in this competitive landscape [32][33] Question: Targeted number of products for QuantaSing's e-commerce platform - The company follows a user-centric approach in product selection, aiming to maintain a core set of approximately 10 flagship products primarily in wellness [35][36] - This strategy focuses on high-quality offerings that resonate with the audience, aiming for sustainable growth in the live e-commerce business [36]

Core Viewpoint - QuantaSing Group Limited reported strong financial results for the fourth quarter and full fiscal year 2024, highlighting significant growth in revenues and user base, while also emphasizing a strategic shift towards the silver economy and wellness products [1][4][22]. Financial Highlights for the Fourth Quarter of FY 2024 - Revenues reached RMB1,000.1 million (US$137.6 million), a 5.8% increase from the previous quarter and a 20.7% increase year-over-year [2][6]. - Gross billings from individual online learning services were RMB774.4 million (US$106.6 million), reflecting a 21.1% increase from the previous quarter and a 3.4% increase year-over-year [2][7]. - Net income was RMB196.6 million (US$27.1 million), compared to RMB14.6 million in the previous quarter and RMB52.7 million in the same quarter last year [2][14]. - Adjusted net income was RMB193.6 million (US$26.6 million), up from RMB31.9 million in the previous quarter and RMB90.4 million in the same quarter last year [2][14]. - Total registered users increased by 35.3% to approximately 127.6 million year-over-year [2]. Financial Highlights for FY 2024 - Total revenues for FY 2024 were RMB3,795.3 million (US$522.3 million), a 23.2% increase from the prior fiscal year [3][16]. - Gross billings from individual online learning services were RMB3,462.7 million (US$476.5 million), a 14.1% increase from the prior fiscal year [3][17]. - Net income for FY 2024 was RMB385.5 million (US$53.1 million), a significant recovery from a net loss of RMB108.7 million in FY 2023 [3][22]. - Adjusted net income for FY 2024 was RMB423.3 million (US$58.3 million), compared to RMB83.0 million in the prior fiscal year [3][22]. Cost and Expense Management - Cost of revenues increased by 21.6% year-over-year to RMB141.3 million (US$19.4 million), primarily due to higher labor outsourcing and procurement costs [9]. - Sales and marketing expenses were RMB580.1 million (US$79.8 million), a slight increase of 1.2% year-over-year [10]. - Research and development expenses decreased by 60.4% to RMB21.2 million (US$2.9 million) due to reduced staff costs [11]. - General and administrative expenses decreased by 69.6% to RMB11.6 million (US$1.6 million), primarily due to a decline in share-based compensation expenses [12]. Strategic Focus and Future Outlook - The company is aligning its strategy with the growing silver economy, focusing on adult learning and wellness products to create a comprehensive ecosystem for the senior demographic [4]. - The wellness products business has shown significant quarter-over-quarter growth, indicating strong early traction [4]. - The company maintains a strong balance sheet with RMB1,026.3 million (US$141.2 million) in cash and equivalents as of June 30, 2024, providing flexibility for strategic initiatives [4][24].

BEIJING, Aug. 23, 2024 (GLOBE NEWSWIRE) -- QuantaSing Group Limited (NASDAQ: QSG) (“QuantaSing” or the “Company”), a leading lifestyle solution provider empowering adults to live better and longer, today announced that it plans to release its unaudited financial results for the fourth fiscal quarter and the full fiscal year ended June 30, 2024, before the U.S. market opens on Wednesday, August 28, 2024. The Company’s management will hold an earnings conference call at 07:00 A.M. Eastern Time on Wednesday, A ...