C端业务强劲增长，降本增效实现减亏

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $1.03 per ADS based on a 1.2x PS valuation for 2024 [4][20]. Core Views - The company reported a revenue of 4.199 billion RMB in 2023, a year-on-year increase of 16.5%, while the net profit attributable to the parent company was a loss of 844 million RMB, reducing losses by 738 million RMB compared to the previous year [2][20]. - The marketing services segment faced challenges, with a revenue decline of 15.5% to 1.653 billion RMB in 2023, primarily due to macroeconomic impacts and a strategic optimization of marketing content [2][20]. - The paid membership revenue grew by 48.4% to 1.827 billion RMB, driven by a 47.5% increase in average monthly subscribers to approximately 14.5 million [2][20]. - The company aims to achieve profitability on a Non-GAAP basis by Q4 2024, focusing on cost reduction and operational efficiency [2][20]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 4.199 billion RMB, with a year-on-year growth of 16.5% [3][17]. - The adjusted net loss for 2023 was 659 million RMB, a reduction of 537 million RMB from the previous year [3][20]. - The average monthly active users (MAU) for 2023 was 105 million, a 4% increase year-on-year, but Q4 2023 saw a decline to 99 million MAU, a 1.6% decrease [2][10]. Revenue Breakdown - Marketing services revenue decreased by 15.5% to 1.653 billion RMB in 2023 [2][20]. - Paid membership revenue increased by 48.4% to 1.827 billion RMB, with a significant rise in subscribers [2][20]. - The vocational training segment saw a remarkable growth of 127.8%, achieving a revenue of 566 million RMB [2][20]. Profitability and Cost Management - The company's gross margin improved to 54.7%, an increase of 4.5 percentage points year-on-year, while sales and management expense ratios decreased [2][20]. - The company plans to focus on cost control and operational efficiency, with a target to reduce user acquisition costs by over 40% [2][20]. Future Projections - Revenue projections for 2024-2026 are estimated at 3.652 billion RMB, 3.836 billion RMB, and 4.059 billion RMB, respectively, with expected growth rates of -13.0%, 5.0%, and 5.8% [3][20]. - The company anticipates a gradual recovery in user growth and revenue driven by quality content [15][20].