Core Insights - The core theme of the speech by Chen Xiangdong, founder and CEO of Gaotu, is "resilient growth," emphasizing the importance of sustainable growth through understanding market trends and adapting to changes [1][10] - Gaotu has shifted its strategic focus to prioritize profitability as the core goal for the fiscal year 2026, moving from rapid growth to high-quality development [1][8] Strategic Insights - Resilience is defined not only as the ability to persevere through adversity but also as maintaining recovery and inner joy during favorable conditions [3][11] - Chen reflects on the entrepreneurial saying "seeing is believing," proposing instead that "believing comes from seeing," which underscores the need for clear insights into trends and market changes [3][11] - The current era is characterized by significant changes, particularly with AI technology reshaping industries, necessitating a reevaluation of traditional growth models that relied on scale and traffic [4][12] Six Pillars of High-Quality Growth - Companies must acknowledge the obsolescence of old growth models and embrace new paradigms, particularly in light of AI as a structural transformation rather than just a tool [4][12] - Insight is built on continuous learning and understanding trends, technology, and user needs, which is crucial for strategic decision-making [5][14] - The philosophy of "winning before the battle" emphasizes the importance of strategic planning and differentiation in product and channel development [5][14] - Leadership is defined by sincerity, service to others, and a desire for learning, which fosters trust and enables organizations to navigate uncertainties [5][14] - All strategies must translate into measurable results, with a focus on financial accountability and sustainable profitability [6][15] - These six elements are interconnected and form the methodology for Gaotu's transition from survival to prosperity [7][16] Financial Performance - Gaotu's recent financial report for Q3 of fiscal year 2025 shows a quarterly revenue of 1.58 billion yuan, a year-on-year increase of 30.7%, and a cumulative revenue of 4.46 billion yuan for the first three quarters, up 41% [8][17] - The company has successfully transitioned from a single K12 business model to a diversified educational ecosystem, with over 95% of revenue coming from learning services, particularly non-academic courses [8][17] - The online non-academic segment achieved its first quarterly profit, with expectations for meaningful profit margins for the year [8][17] - The university and adult education segments also showed strong performance, with quarterly revenue exceeding 237 million yuan and significant growth in net profit [8][17] - Offline learning services have made substantial progress, contributing over 10% of total revenue, driven by improved local course offerings and AI-enhanced teaching [8][17] Future Outlook - Gaotu aims to focus on a healthy unit economic model rather than blind scale pursuit, with a target revenue growth of approximately 15% for fiscal year 2026 [9][18] - The company is committed to enhancing product quality, teacher training, and user experience for early-stage businesses while scaling mature operations for profitability [9][18] - Chen emphasizes that the coming years will reveal a transformed Gaotu, highlighting the importance of rationality, sincerity, and systematic capabilities in achieving resilient growth [9][18]