BTC Digital .(US:BTCT)2021-08-18 15:39Financial Data and Key Metrics Changes - In Q2 2021, revenue increased by 8.2% year-on-year to RMB204.8 million (US$31.7 million) [7][9] - For the first half of 2021, revenue increased by 10.9% to RMB411.3 million (US$63.7 million) [7][9] - Gross profit in Q2 2021 increased by 23.4% year-on-year, while for the first half of 2021, it increased by 52% compared to last year [8][12] - Net loss for Q2 2021 was RMB80.3 million (US$12.4 million), an improvement from a net loss of RMB93.4 million in Q2 2020 [15] - As of June 30, 2021, cash and cash equivalents amounted to RMB144.2 million (US$22.3 million) [15] Business Line Data and Key Metrics Changes - General adult English language training (ELT) revenues increased by 38.3% year-on-year to RMB79.3 million (US$12.3 million) in Q2 2021 [9] - For overseas training services, revenues increased by 97.4% to RMB37 million (US$5.7 million) in Q2 2021 [9] - Junior ELT revenues decreased from RMB31.6 million in Q2 2020 to RMB23.1 million (US$3.6 million) in Q2 2021, with Meten brand increasing by 256.3% to RMB21.4 million (US$3.3 million) [10] - Online ELT revenues decreased by 23.1% year-on-year in Q2 2021 [11] Market Data and Key Metrics Changes - The number of registered users for online courses increased by 19% year-on-year to 1.9 million as of June 30, 2021 [6] - The company plans to launch Meten Junior Growth Centers nationwide, with five courses currently offered and plans to expand to ten by the end of 2021 [7] Company Strategy and Development Direction - The company aims to complete its strategic transformation to an online and offline training organization providing comprehensive workplace training services [16] - Plans to reduce offline learning centers to one or two in most cities, transforming them into learning and communication platforms to reduce fixed costs and increase profit margins [4][16] - The company is exploring opportunities in quality-oriented education, medical aesthetics, and VR teaching products [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the ongoing impact of COVID-19 and emphasized the continued demand for English learning in China [19][20] - The company believes that the adult English training market in China will continue to flourish post-pandemic as international exchanges normalize [20] Other Important Information - The company has made adjustments to its business model, including transferring all offline courses to online formats and optimizing operations to reduce costs [4][5] Q&A Session Summary Question: Concerns about core dividend due to China education reform - Management addressed concerns regarding the impact of education reform on core dividends [17][18] Question: Impact of recent COVID cases on physical locations and handling uncertainties - Management highlighted that they are the leading brand in adult English education and have adapted by transferring courses online and reducing offline centers to mitigate COVID-19 impacts [19][20]