Financial Performance - In the second quarter of 2025, net revenues reached RMB539.0 million (US$75.2 million), representing a 9.5% year-over-year increase from RMB492.2 million in the same period of 2024 [5][9] - Net income surged to RMB126.6 million (US$17.7 million), with a net income margin of 23.5%, reflecting a 54.0% increase compared to the second quarter of 2024 [5][14] - Gross profit increased by 12.9% to RMB469.4 million (US$65.5 million) from RMB415.6 million in the second quarter of 2024 [11] Operational Highlights - New student enrollments totaled 159,154 in the second quarter of 2025, down from 168,296 in the same period of 2024 [9] - Interest-based courses accounted for 77.6% of total revenues, indicating a strategic shift towards these offerings [7] - The company maintained positive operating cash flow for eight consecutive quarters, with substantial cash reserves as of quarter-end [7] Cost Management - Cost of revenues decreased by 9.1% to RMB69.6 million (US$9.7 million) in the second quarter of 2025, primarily due to reduced compensation expenses from headcount reductions [10] - Operating expenses increased slightly by 1.1% to RMB342.6 million (US$47.8 million) compared to RMB338.9 million in the second quarter of 2024 [12] Future Outlook - For the third quarter of 2025, the company expects net revenues to be between RMB500 million to RMB520 million, reflecting a year-over-year increase of 1.8% to 5.8% [26] - The company plans to deepen AI integration across core operations and expand personalized learning solutions to meet the evolving needs of adult learners in China [6]