Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached RMB 539 million, representing a 9.5% year-over-year increase, driven by strong demand and course offerings [6][14] - Net income surged to RMB 126.6 million, with a net margin of 23.5%, marking a 154% increase year-over-year and a 158.5% sequential jump [6][20] - The company achieved 17 consecutive quarters of profitability, demonstrating resilience in its strategy and operational execution [16] Business Line Data and Key Metrics Changes - Interest-based courses contributed 78% of total revenue this quarter, with new student enrollments exceeding 300,000 [15][17] - Non-degree programs, including professional certifications and interest-based courses, accounted for 77.6% of total revenue, with interest-based learning showing over 15% year-over-year growth [9][15] - The company has built a private user base of tens of millions, converting over 1 million into paying users, with high completion and repurchase rates [10][15] Market Data and Key Metrics Changes - The adult education market in China is expected to exceed RMB 1 trillion by 2027, with a five-year CAGR of 12.6%, and online education projected to grow at 17.3% [8] - The focus on the silver demographic (ages 15 to 75) has emerged as a high-potential audience, with significant engagement metrics reported [10][12] Company Strategy and Development Direction - The company is transitioning from a degree-centric approach to a three-pillar model focusing on degree programs, professional skills, and interest-based learning [8][9] - The strategic shift towards the silver economy and intelligent personalization powered by AI positions the company to lead in senior education [12][16] - Future plans include broadening the course portfolio, enhancing course structure, and improving the learning experience [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainty and emphasized the importance of generating high-quality earnings and scaling operational efficiency [16] - The outlook for 2025 anticipates net revenues between RMB 500 million to 520 million, reflecting a year-over-year increase of 1.8% to 5.8% [21] Other Important Information - Cash and cash equivalents as of June 30, 2025, were RMB 586.7 million, an increase from RMB 507.2 million at the end of 2024 [21] - Deferred revenue balance decreased to RMB 814.3 million from RMB 915.5 million as of December 31, 2024 [21] Q&A Session Summary - No questions were raised during the Q&A session, leading to the conclusion of the call [22][23]

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]