Gaotu Techedu Inc. (GOTU) Earnings Call Transcript & Summary

Friends, guests, good afternoon. Each one of us is looking for meaning of our life. Each one of us looks up to a beautiful life. In our life, the painting, if we look at our lives, there is a best word to describe it, that is grow. There is another good word that is the endless vitality. To grow means we could bring something good to the world. To grow means we could create value for the others. To grow means we could bring more joy to the world. We yearn for success. And we define success as the meaning of our life. What is success? The code to true success, what is the code? If we define it as the freedom of your spirit, and in this process, while we create value, it will be recognized and it will be reflected in your own heart. And this way, you will see greater potential. I believe the biggest code to the success of your life is dedication. We know there is a simple mathematical formula, 1.01 -- the 365th power to 1.01 would be 37.8, and the 665th power of 0.99, that would be a much smaller number. If we dedicate a little bit more, the difference would be over 1,000 times if each day we could make some progress, if we make progress for 1,000 a day. And for those who go backwards, the difference would be over 1,000. For an organization, it would have tens of thousands of people, they want to find order. If they could be dedicated, it will be critical, it will be a miracle. But the organization is like a person, every day, they will be faced with the different kinds of temptations, different kinds of ideas. How can we face the temptations and be focused to the hard stuff because only the difficult stuff lead us to success because the road with difficulty is not crowded. 2014 September 16, Genshuixue was founded. I recall, I'm so honored to have with our partners to choose to join us because they joined for this difficult pursuit. From the first day, when we founded Genshuixue in a hotel in Beijing, we had a celebration. That was a solemn declaration. We will be underway. We set our vision, our mission, our goals. Our dream for the future and our commitment to integrity would be deeply rooted in our DNA. And it will be embedded in all of us. In June 16, 2014, let's take a look at a clip of a video what happened on that evening. Everyone has a vision. If we could have a platform to make all those talents to share their wisdom and their experience, that would be such a great endeavor, particularly the kids from rural areas. They cannot grow, there is no platform to support them. They - it's very difficult for them to access good teachers. If there is a platform to provide more equal education, to make it more convenient, to make the learning experience more effective. In on short lives, how great is such an endeavor? So we discussed such an idea. That is our vision. We have such a mission, what kind of values can we create. There are 12 words. First, customer, number one. Integrity, simple inspiration and innovation. On the first day, when we established Genshuixue, we come up with a slogan that is the tens of thousands of star instructors are right at your hands -- tip of your hands. The well known, the famous instructors are in our DNA are from a rural area. In my mind, good teacher means what? I cannot summarize in just 1 sentence. In 2015, in March 30, 2015, in the same venue, in the National Conference Center, we organized the launching events, just like what we have today. We got some funding. Please take a look at this video clip that is the launching event on March 30, 2015. [Presentation]

Recently, internally, when we look -- watch this video clip, a lot of our colleagues have tears in their eyes. And when I watch this video, I couldn't help crying. And however, what makes me cry is that at the very beginning, we really want to have a big funding coming into this company. However, when we get the funding, we don't know -- we didn't know how to establish a company, and we didn't understand what makes a good product back then. We didn't quite understand, and we didn't know what to do. And today, when we stand here facing our future and facing our future of the whole humanity. When we look back on the past, and when Genshuixue was established that we want to establish a platform to search for top instructors in 2015, we couldn't find a way to sustain the company. So we make each different segment independent, and we have our co-founders. And each co-founder was responsible for 1 segment, and we had 5 segments and it was struggling times and it was difficult beyond the imagination because as a start-up, we did 5 things simultaneously. And in March in 2016, we incubated the Gaotu K-12, and you can say that this is event #6. So we are like a toddler, only 2 years old, and we want to do 6 things at the same time. The difficulty level was beyond the imagination. And of course, we were very lucky in June 2017, the [ 52B ] K-12 for teams is integrated and we formed a new Gaotu K-12. And that was a label, and Genshuixue finally found the core code, which we all focus on. In August 2017, we decided that the 52B segment, either we closed them all or we separated them all. Genshuixue, the national team focus on the online streaming of the master class. In other words, Genshuixue, this company, in August 2017, we had some recognition. And also we had some luck and we had some vision, and we had our own decision. And Genshuixue will focus on the online streaming of the master class. In September 2020, we made another decision, which attracted the attention of the whole company. Actually, for those of you who are in the education field, you understand that when a company develops to the size of 20,000 employees, when we do the integration of the different businesses, the difficulty level, again, was beyond the imagination. However, for Genshuixue, for Gaotu K-12, we made this decision, and also, we made an integration of the different teams. The results were also beyond our expectation. In September 2020, we decided that all the K-12 under Genshuixue and the K-12 under Gaotu were integrated together. And also, we only used Gaotu K-12 this one and only brand. In April 2021, we declared that Genshuixue, the product name was changed to Gaotu College. Now let's take a look at the story of Gaotu. Actually, we struggled and we experienced obstacles. So we had 3 focuses. The first one, we have a 52B business and a [ 12C ] business and we all focused on the online streaming of the masterclasses. For the second time, the Genshuixue K-12 and the Gaotu K-12 were refocused and reintegrated to the Gaotu K-12 for this brand. And the third time is, today, facing all our friends. We have a declaration. All of our brands, the names of the brands will focus on Gaotu, the 2 characters. Now let's take a look at April 2021, you can see Genshuixue was renamed to be Gaotu College. And Gaotu College, so 3 focuses. Now let's take a look at why we have the name Gaotu. The origin and the incubation of Gaotu, this name was from 2016. Frankly speaking, in 2016, we didn't why realize its commercial value. But we had the belief in the March 2017 Liu Wei led his team to focus on the elementary school education, and we found our secret code. We had 4 teams working on 4 segment, elementary school and junior high and high school and also preschool. And also, we have the products and technology team. We integrated those teams and formed the Gaotu K-12. And in 2016, in order to propose the K-12 name, we were really struggling. We conceived like 100 names. And they come up with the name [Foreign Language], future and progress. After using it for some time, [Foreign Language], means there's no future. That's the -- another interpretation of [Foreign Language]. And they give us another explanation, a great teacher, make outstanding students, and we should have a different name. And in Chinese culture, we normally talk about how we hit the target and how we make a great future through learning under a master. So you can see that we have 2 segments. And 1 is the Gaotu K-12, and the other part is non-K-12 Gaotu College. We aim to provide the individualized learning solution to the students through the whole subject's multi-scenario design through the master class and through the VIP class and the one-on-one tutoring, we can help the students to develop into a full human being. And also, we can redesign the online master class. And in the history of Genshuixue development, the top instructors, actually, we have a different understanding of top instructors and top instructors is a part of our DNA. In the past few years of exploration, we were thinking about the top instructors, top service and top technologies and how we integrated those 3 parts together to shape the next generation future-facing vital education. And up until now, our top instructors are 392 and tutors, 15,000. And also, we have thousands of product researchers and developers. And altogether, about 3,000 to 4,000 developers. So in the era of online learning, the new Gaotu, how do we make a difference? And our philosophy is to ignite the interest plus cultivate the habit plus shape personality, and that will come to the exponential effects of the combination of the 3. We think once we ignite the learning interest and cultivate students' habit in learning and in life and also shape the students' personality, the spirit of persistence in place of difficulty in such a way we can make education better. So we think the online class, the core of the online class is to continuously cultivate, the greater teachers with love and not only the top instructors and also the top tutors or we call it the so-called the second-class tutors. And also all the Gaotu partners, Gaotu colleagues, I think each one of us should be a teacher. Each one of us should be an example for others. And we all know that the 10 minutes on the stage means 10 years of hard work behind the stage. And so one course means 230 hours of work. So in Gaotu College, Gaotu K-12, Gaotu Corporation we are committed to the development of courses, and we are committed to the control of the technology variables and also the leverage effect. And now let's watch a video together. [Presentation]

Hello, everyone. I'm Jiang Song from Gaotu. I'm really glad to be here to communicate with you. I joined Gaotu last July and in the interview, Larry said something that made an impression. So education is to ignite, to rekindle another one through one human being. So if I can use my own life to ignite others, I think that is something really great. Someone told me that education is rewarding. So I'm really glad to join all of you to do something valuable. So today, my topic is the singularity is near. This is a very famous book. So new technologies to make new type of education. What is new technology? What is new education? And I started IT and also I entered into university in 2002 and I witnessed the 20 years of fast development of IT industry. And this is a fast development industry. And also in the past few years, the cloud computing, big data and AI changed all the industry and influenced our lives. For example, the taxi and the food delivery. So education as a traditional industry, a lot of the infrastructures need to be further updated and improved. And last year, in the summer, I went to Shaoxing, I visited the Sanwei Study. And also in the fall, my daughter entered into the elementary school in Beijing. I watched her going to the classroom. Actually, the classroom is the same and it's the same with the Sanwei Study, the same with the classroom thousands of years ago. We have the teachers, the students, the questions and answers. So the new year has given Gaotu a new mission, we should make education better through technology. That's why we decided to establish a Gaotu Singularity Research to elaborate academia and the industry to launch the security -- the singularity class. We want to redefine 3 educational scenarios. First, the classroom, the textbooks and tutoring. And I will elaborate each of it, the point. The first point is the singularity classroom, there are 3 breakthroughs. First is 5G. We know live streaming is different from the live streaming of shows. But first, there is the ultra-high reliability and ultra-low latency in a class room and so long as 1 student is not able to enter the classroom, it will be an accident. But for the showrooms, it would be different. They could come back later to see the show. So for education, we are very demanding for the Internet reliability and ultra-low latency for the -- many people, they still have a lot of concerns. They believe the interaction online is not as good as offline. With 5G, we could build real-time interactive classroom so the students, the teachers could interact in real-time and that you see better effect. Number 2 is the adoption of AI technology. In September 2019 I visited Canada. There was a [Foreign Language] on top of a snow mountain. You take a helicopter. On the top, you have the noise of the helicopter and the feeds you could see, there's no -- maybe in my life time, I will not be able to go to the top of a snow mountain, but with AR and VR, this immersive technology, they enable technology. The first is the camp in the desert, you see the smoke going up. When students are going -- working in the desert, it could build a fire because there was no wind, you could see the smoke going up very straight to the sky. And the students would, for sure, remember such as scene. And with the AR/VR, we could build a palace. You can see, this is a horse, that is a chariot. That's a deer, and you can remember the Chinese stories. And in the math and physics and chemical courses, AR, VR could enable us to learn better, certainly, advancement bring technology. For teachers, the biggest challenge is to know whether students have understood. So the teachers would ask questions and test the students through the exams. And now with the technology, we could gather massive data. Data could be provided to the teachers. They will make improvements to their teaching approach. They could manage their pace, the level of difficulty, to make it easier for the students to learn. So that's the first scenario. That is the redefining of the teaching scenario. Secondly, the redefining of the teaching content, the courseware, the textbooks in the old approach, the teachers would produce his own notes. With the advancement of technology, we could build a content platform, we could see the platform as a 3D perspective. First is a platform for creation. We could enjoy 2 benefits, number one, it improves the efficiency in producing the content. Because everything is online, we could adopt different technologies. For example, through the knowledge tree mapping, we could guide personalized differentiated learning process. Number two, it's a collaborative platform with development of the business, the teaching notes and of course where they are no longer purely text. There are different kinds of approaches, more diversified content. Just like what we saw earlier for each course, we spent 230 hours. To develop it, we will integrate the teachers, the designers, the researchers to build our courses. What we do is like what they do in the Hollywood, in the Disneyland, it's also an iterative platform, the teaching platform involves the online production, and we could deliver the content, the students could learn online and conduct tests online. With the feedback, it could guide us to further improve the content. With bigger data, it could make our platform more iterative. We could choose different subjects. To a certain extent, the redefining of the teaching content would result in the transformation of the ecology of teaching. So we transform the mono text and notes mode, we could enrich the teaching. Thirdly, we will redefine the teaching system. In the past, we have the live large class format, which have grown rapidly. We have come up with a new job, that is the tutors and the systems. I believe the number would reach 1 million. How can we offer continuous training to such assistants, that is our mission. We know online large class format has been put online. We have a lot of assistants to communicate with the parents and the students. And with this real-time coffers, we could build a platform to train such tutors and assistants, that is a refreshing school for these tutors and assistants. And number two, we could revise we have over 10,000 tutors. How can we conduct real-time supervision and get feedback. So we need technical breakthroughs. With the computer vision and the voice recognition, we could better manage the level of surveys. Certainly communications. Education is a service industry. SLT is standardized, it's not personalized in our industry. Lots students and parents, they feel a lot of the disturbances. Based upon deep learning, we could identify better ways to communicate between tutors and the students. While improving efficiency of tutors, we could reduce disturbances to the students and the parents to a certain perspective. By defining the new teaching service, we want to transform the teaching because the tutors, they are the key players that we want to upgrade the supply side of the education with product-oriented system. Finally, I want to share with you the ideas behind the singularity class. Our mission is to make education better through technology. A top education means to have the top instructors. The process of company shape need people, it cannot be substituted with algorithms. So technology will empower the teachers instead of us substituted. Our singularity textbook would serve these tutors -- the instructors, the tutors and assistants. With empowerment from the technology, the teachers could provide more effective service to the students. That means, ultimately, we could realize the goal of ignite interest, cultivate habits and shape personality. Thank you. Next, I would like to invite you to look at the live screen. [Presentation]

Good afternoon. I'm Liu Wei from Gaotu K-12. I'm very delighted to have the opportunity to talk to you. Since the establishment of Gaotu K-12, we will have been dedicated to live dual instructor large class format. In the last few years, we have made some progress. On the one hand, we helped the millions of students to have access to the best products and the best education service online. On the other hand, we have also demonstrated the feasibility of online education business model. However, we know that today's education model is not necessarily the ultimate form of online education. From the perspective of children and their parents. We need to continuously improve our teaching and service, and we need to continuously improve the learning experience of the students. How to make education better through technology has been a question for us. So today, I'm very, delighted to take this opportunity to share with you the next-generation online education product that is local -- online localized courses. I believe that will be the new starting point of online education. Truly online localized class should have at least 4 features, local enrollment, local product, local teaching and local services. These 4 features are the core tasks of any educational institution, that is to answer the question, where do the customers come from, what products do they need and what is the right way in teaching and serving the customers to make the customers satisfied? First, on the localized enrollment, we will build 3 teams. The first is the localized marketing team. The team will be responsible for building the initial connection with parents and students through various offline channels. The second team is the local content operation team. This team will be responsible for producing targeted content to meet the needs of the target customers in line with local education policies. The third team is the localized private traffic pool operation team. Through the Internet, they could form interaction between the Gaotu and the parents. The 3 teams will work together closely and coordinate with each other to form a closed loop of localizing enrollment. So I think the Gaotu K-12 in the localized student enrollment, we have a lot of accumulation of experiences and that there's no [ road ] for the [ void ]. Between 2014 to 2016, we have been exploring the O2O model. And in the 3 years of exploration, we accumulated very rich local operation experiences and team members. And these experiences and team members for the promotion of localized enrollment of the students are a very big help. And talking about the private traffic approval operation and also the localized operation, and that's what our specialty lies in. And there are many veterans for Gaotu K-12. There are so many followers, but our success has never been exceeded. So combining our experiences in local operation and also in the content operation, the traffic -- local traffic -- private traffic approval operation, we can lead the localized student enrollment. And the second part is localized product, and that is the very core of localized online class. And we will promote the 5 directions of product localization, including localized teaching materials and localized difficulty level, localized progress and localized presentation style and localized topics. For the first 3, it's easy to understand, which means the teaching materials and the difficult level and the progress are based on the learning and the testing situation of the local region. And number four, localized presentation style. Because the subject ranking can be different, so the background knowledge points differ from region to region. And that will lead to the differentiated presentation style. Number five, localized topics. Localized topics for the students are very important to improve their study results. And that is a very straight forward effect. And for the localized online class, the topics will be from the best school in the local region, and they are the typical questions and the test from the local school. And we will help the students to practice based on those local questions and tests. And with regard to the localized product, Gaotu K-12 has our own accumulations in the past few months. We are establishing the professional localized faculty. And secondly, the core management of Gaotu are mostly from the off-line training corporations. And for the core management, how to make localized products, that's what they're specializing. And now we talk about the localized teaching. And we will have a 3-in-1 parts. And first of all, at the online class stage, the masters from the online class, actually, these masters are top instructors from all over the country. And we can just match them to the regions that they are more familiar with, and they will be the first batch of the top instructors. And secondly, we will continue to introduce or draw the excellent teachers from the local regions. And our standards will be synchronized. Basically, what we draw from the local regions are not only the good teachers, they are the best and most popular teachers from the very best schools. And thirdly, at the same time, we will promote the training program for the localized top instructors in the past 1 to 2 years. From Peking University and the Tsinghua University, we recruited over 100 graduates. And in the Peking University registry, the number of graduates who joined Gaotu, no matter for online class and off-line class, the number is to the top racking. And these instructors have very strong learning power. And together with the Type 1 and the Type 2 teachers, they will very quickly grow to be the top instructors in the local regions. And we know that greater teachers make outstanding students. And for online class, Gaotu is your choice. And that's our slogan, and also that our core competitiveness. At the online learning stage, Gaotu is the best. In the local online class, we believe that we will make the best. Number four, I will talk about the localized service. In order to do localized service, first of all, we should have a localized team. Secondly, based on the local needs, we allocate the -- or formulate the process and content. And also, we have the supply of the localized content. We integrated the 3 parts, and then we can make a very good localized service. So with regard to localized service, we have our own differentiations characteristics. First of all, Gaotu K-12 for around the country have to 14 city centers. And the 14 city operation centers include the elementary school, junior high, high school, multi-segment. And in the promotional stage of the localized courses, a single-segment center compared with multi-segment center, and we have regional advantages. And secondly, the GM of the 14 city centers are mostly from the renowned off-line training centers. And they all had experiences occupying the position of headmaster. The mean age is 40 year old. That's their advantages because for the localized school operation, they have very strong competence. And with regard to the shaping of the strong organization, they have very strong experiences. And also, they have the managerial qualities for the local team management. So our business and our local services face a lot of challenges. All the 14 city centers are ready to face all of the difficulties and the challenges. And of course, we know that the success cannot be made within one night, and it's a gradual and slow process. And we have to decide from each segment, we promote the localized product, and we have to put into consideration the demand from the local students. And we know that the high school examination is area specific. And also, the entrance examination for the universities is region specific. And so for -- from the elementary, for the high -- for the junior high school is already removed. So combining the Gaotu advantages to the online classes, the junior high school and also the high school segment, we lead the industry. So combining the students' demand and our own advantages, our localized online class will focus on the junior high segment and the high school segment. And then we will expand to the elementary school segment. And the second challenge is that what cities will be chosen to roll out the pilot program, and we have several considerations. One is the demand from the local region. Take Zhengzhou as example, the high school examination is independent, so the Zhengzhou province has very strong demand for the online classes. And secondly, in different provinces and different cities, there are different market size and market situations, and we will choose those with bigger market. And also Gaotu in our development, we have accumulated some experiences. And our advantages are better reflected in several regions, so putting into consideration all of those factors. We chose Zhengzhou, Zhejiang, Guangdong, Shandong, Hunan Shanxi, Shaanxi and Beijing as the pilot city. And we believe that a single spark can start the fire. The 8 provinces and cities will be the pilot cities. And later on, we will roll out the model to whole country. And we believe that we will [ assert ] our advantages in organization management and also in the top instructors' operation. And we will come back to the private traffic pool and provide a more specific and more localized product. And we believe that Gaotu will lead the development of the online classes. And Gaotu, for the existing Gaotu students and parents, will provide a better service and better education. And we will make better experiences and better results for the students and the parents, so make education better through technology, we are fully committed. And now the stage is yours, Gaotu college. [Presentation]

Distinguished guests, teachers and Gaotu students, hello, everyone. My name Qi Xiuping, and my topic is the development of education in the era of the lifelong learning. The concept was proposed in the '60s. However, in today's times, it's very urgent. And now let's take a look at a set of data and see the development trend in the education industry. Here, we can see in the last -- the growth of employment since 2017 started to decrease. On the one hand, we are creating new economy, creating rapid growth of GDP. Our economy is prosperous, but the enterprises need to improve the outputs and reduce the number of employees to improve the efficiency. Most of the organizations, they would like to recruit from the top elites. For those working, they face greater pressure. Let's take a look at a number of people taking the postgraduate entrance examinations. In the last 2 decades, last year, it reached 3.4 million. A lot of the college students, they choose to go for postgraduate, and a lot of people working are also opting to join the postgraduate education. Other than finding jobs, our pursuit for learning has also changed. Take the example of adult English learning. In the last 2 decades in the English training market, in the beginning, people have 2 objectives to learn English: number one, they want to go abroad; number two, they want to find a job in foreign-invested companies. They need English to communicate. As time goes by, with more intensified job market or to a company, they are choosing for overseas education or go travel abroad. And they want to learn English out of their personal interest. Maybe BRI inspire them to learn English. With these new pursuits, and we look at the data of the paying students, what are the age distribution, I believe you will be surprised. Here, we can see the age distribution of over 400 million students. We believe most of them should be in the age group of 18 to 40. In fact, from 35 to 50, many of them, they're still passionate to learn. Many people think it's closing to the retirement age when they push for 60 -- 50. But those who reach around the age of 50, they still account for over 20% of the students learning English. And even 1.4% -- 2% of the students, they are over 70 years old. I believe their motivation is more diversified. We believe that from now on, there will be no lifelong careers; instead, there will be lifelong learning. Even after you find a job or retire, you will need to continuously improve yourselves. You need to communicate with your children or grandchildren who study abroad. Today, we launched the new brand of Gaotu college, but it's not the first day we engage in Gaotu education. 4 years ago, we embarked on this road. We found that there is greater diversity for the adults because they have clearly defined motivation. For the K-12, many of the students are pushed by their parents. The decision-making takes 2. For adults, it takes 1 to make the decision. On the contrary, post paying the fees, most of the K-2 (sic) [ K-12 ] students, they could speak and keep on learning. But for the adults, long-term institutions, they will take the parameter of the completion rate of the courses to evaluate its performance. However, the key parameter should be how many customers are satisfied. So we needed to make the courses more interesting, just like playing the game, to attract and retain the students. Learning should have been exploration. So we have developed our own teaching methodology first. We have the top instructors in the industry. Take the example of English learning, in the last 2 years, we have interviewed, auditioned over 500 teachers. And ultimately, we only hired 3. Just like any other disciplines, we maintain the same approach. In August last year, we started the program for the postgraduate entrance examination. So the -- in college students and those in the work field, we want to build up our brand. We will recruit the top instructors. And we have the 5-in-1 unique teaching model. We have the tutor, the main instructor, a lot of practices. So the delivering the exercise testing assessment and [ accompaniship ] and ways. The technology, as we said, for each student, they have different pursuits: so in college students, to take their postgraduate entrance examination; and for those who already have a job, to take the exam, they have a different motivation. So we need to enhance the training. Same applies to the test taking, we will conduct smart testing so that each course matches the learning stage of the student. On top of the testing, we need to provide the encouragement so that the students, they could maintain the same level of dedication. And lastly, there is [ accompaniship ]. We should not neglect the importance of emotions. And with one-on-one tutoring, that is one of the core competitiveness. A few years ago, we set up a professional tutoring team. Take the example of English learning, most of our instructors, they have passed the professional level 8 or have the years of 7 or higher scores. Same applies for the students who take the postgraduate entrance examination, they hope their teachers could encourage them when it's really hard for them to continue on the course, to help them and to share with them what are the possibilities, the pros and cons of different majors. So that means our instructors, they all have the master's degree. The same applies to the finance and accounting courses. A lot of the instructors, they have the CPA, CFA certification. They had worked in the off-line education institutions. On top of the main instructors, we have the teaching assistants and the tutors. With the Internet, it could empower the education. The other speakers has shared with us what are our plans in deployment of technology. In addition to the smart testing, smart courses, we could review the test and homework for the adults. They also need socialize. And also, they need to have group discussions. Unlike for the K-12 students, it's less interactive. But for the adults, they need more interaction. With new technology, we could make the experience of learning online surpass the off-line learning. Language learning and training, we have English and Japanese language programs. Going forward, we will launch new languages like French and German. For each student, they have personalized needs, so we will need to build a comprehensive SKU for each student. Maybe they want to go travel abroad. We will tailor-make a course, for example, how to take a -- hail a taxi, how to pass the customs, how to take the airplane. And for the finance and accounting, we'll share with them the experience as well as the tips on the wealth management. For example, our junior accounting program, for 60% to 80% of the students, they do not have the accounting background. Maybe they are just a stay-at-home mom. They hope that they manage the household spending. They need some accounting knowledge. For the accounting and finance program, we could also build a comprehensive portfolio. In May this year, we would share with you the outcome of the postgraduate entrance examination. And according to our survey, 80% of the students are satisfied. And the civil service examination, we will adopt differentiated courses, and the services will closely follow the government policies to come up with different training programs. Like the stay-at-home moms, a lot of them, they would try the civil service examination. All the fresh college graduates, because they cannot afford the RMB 30,000 to RMB 50,000 training fee off-line, maybe they could afford RMB 4,000, RMB 5,000. For those who go abroad to study, we will have the small class and one-on-one surveys. They don't need to put together in a large class. That also [indiscernible] takes 3 -- or 0.5 year. With Internet, through professional tutors, we could provide daily testing, daily practice, so we could review the essays more often. And we have launched a business management program. That is massive market with hundreds of billions of potential. In China, there are over 10 million SMEs. A lot of the young entrepreneurs, they have courage, they have ideas, but we need more mature managers. There have been over 20 years of the business management off-line, but we do not see a very good program that is close to hands-on practice. And through this culture-based program, we could help them to understand what are the tips, what are the potential pitfalls. So our mission is to help everyone to improve themselves by learning to make learning more fun and more efficient. And today, we are launching the Gaotu college. We have a 3-year target. And the vision, we hope that in the next 3 years, we could be #1 in the field. Our definition is that not only we have #1 in terms of revenue, but also, we have the #1, the top class instructors, services as well as reputation. 2021 is the year for us to be innovative with our offering. Off-line, we have established our teams. We hope that in the next 2 to 3 years, by 2022 or 2023, we could have a team of 8,000 to 10,000 service personnel to cover 3,000 higher institutions of education, and we could provide accompany service, to provide differentiated, value-added service and we could help the college students to grow while they are still in the campus. After they graduate, they could continue to be our students. Let's make a deal that in 3 years, we will build the Gaotu college #1 in the field. Once again, I would like to thank you all, to thank all the students for your great support.

Just now, the 3 partners shared with you our perspective with regard to education. Many people ask this question, what future education is like. Actually, every day, we are thinking about the same question, what is the future education like? So one person, wherever he or she is, can have access to the quality education. Or whenever a person wants to learn, he or she has individualized learning solution and also the learning solution with care, with love. If we want to get the answers, we have to look into the future. So when we think about our future development, what is the future like? And what is the future society like? And for all of you who are sitting here and also for the whole humanity, our definition of a future, our expectation of the future, what is it like? When we define our life, our future and also the life of our descendants and our expectations of our descendants, standing here and now, we can think about the future of education. I think in order to make the future education better, we have to start from now. We have to make the -- today's education better. In 2014, I created the start-up, and I led tens of thousands team members before. And when I have my own company, when the size grew to 1,000, I felt helpless, and I suffered from insomnia, and I often woke up at 4 a.m. and stared into the void. Later on, I understand that if you face the unknown, there's one thing you can know -- you can do. You should be committed to your own development, to your own growth, your own so-called purification of life. And on many occasions, we may hear a lot of noises, and sometimes we may be disturbed by those noises. Should we be focusing on the customers or should we be focusing on the competitors? Undoubtedly, we should focus on the customers instead of competitors. Should we focus on the self-criticism or the rumors flying around? Undoubtedly, we should focus on self-criticism. Should we focus on the self-learning or should we focus on others' development and growth? Undoubtedly, first of all, we should grow by ourselves. And only when we can do that, we can make others better. So when we think about the future education, we are trying to visualize the future and what technologies lie in the future to reshape the reality, for example, the [ 6PHI ] technology and also the new projecting technology. And also, maybe we can go to the Mars and then connecting with the Earth. A lot of things are unknown. However, what we know is that every one of us -- for every one of us, like is precious. And we are trying to match the valuable beings with our own development. Gaotu focus on education, and the parents of our students believe in us. And now we have tens of thousands of partners in Gaotu, and the parents of the students believe in us. If we don't grow, if we don't develop, how can we face our own lives, how can we face these partners? Before I have my own start-up, I didn't have such understanding and such perspective. I just want to make a difference. And once I have my own start-up up until now, I discovered that one and the only most important thing is to be a better self, to be a better self matching the expectations of the students, of the parents, of the partners. And we can say to ourselves that I'm happy that I am a better self today. In 1988, I started my teaching career, and I was teaching the second grade of the junior high and have been in this field for 33 years. Often, I think that I am very lucky. Every night, when I go to sleep, I say to myself it's so good. And every time -- every day when I wake up, I say it's so good. And then I go to the office very early. It's not because I have to go to the office. It's because I really like going to the office. It's such a beautiful place. In such a beautiful place, I'm part of the beautiful life. And this very moment, this very second is worthwhile. I've been in this field for so many years. And with your encouragement, I still aim to be a better self. And in the future education, I want to be a better self matching the future education. So on behalf of more than 20,000 colleagues, so Gaotu underway, we have a philosophy: We say happy at work, happy at life. So I think every one of us will say that life is like a game. If we really think that life is like a game, we have to understand that there are 2 core characteristics: one is that life has to be fun; and also, we have to win in life. Work is a very important part of life. And at work, we say work is like a game. And every time, well, every day when we go to work, we should be happy. So work is like a game. So like a game, work should be fun, and the work is about winning. And I think being happy at work means we should open our heart and work with others and share with others, motivate others and to be fully committed and to contribute. I think winning means to be a better self, to win other's trust, so your life can be worthwhile. And your value, your talent, your high standards and also your expectations of life, your efforts should be matching to the people around you. I think that is the core of happy at work. And also, at the same time, to win -- I think to win is a reward. And if we can sustain that reward, that means happiness in life, happiness in work. So we have been sharing with our partners, so to be a better self, to be happy at work, and also to cherish the trust from the students and from the parents of the students. And we have to put in all our efforts to continuously to grow so that we can match the expectations of the students and also the parents of the students. Our original vision is to have beautiful partners and create beauty together. So in Gaotu, we have a culture of partnership. The origin of this culture is from my thoughts in -- from when I was 43 years old. In 2014, I was thinking about my life in the rural areas. In the rural areas, I played with my partners and playmates, and it's such a beautiful life. And I think to have a company and to work with partners, just like when you play with your playmates, I think that's the biggest glory. That's the most beautiful thing in life. On the 30th of March 2015, at the launching ceremony, I quoted a line from the youth. In your heart, in my heart, we have 5 things: beauty, hope, care, courage and power -- so in your heart, in my heart, so we all have 5 things: beauty, hope, happy, courage and power. So in your heart, beauty always lies in there. Every day when we wake up, we hope it's a beautiful day. We hope it's a beautiful day for ourselves and also for others. When we wake up every day, we are full of expectations and full of hope. We want to be a hope of others, so we want others to be the hope of us. And when we go to work, we want to be happy. We want to be happy, and we want to be the origin of happiness for others. And we want others to be origin of happiness for ourselves. When we have hope, when we have happiness, we have to face the bigger challenges, bigger difficulties, and we have to work on the mission impossible. And we need the courage. We need the courage to face the difficulty, to face the unknown and also to face the higher and higher standard and to face the self-criticism and also face ourselves and to become part of the organization. And also to have the gene of the organization embedded in us, and in such a way, we can be the best partners and we can create beauty together. So dear friends and distinguish the guests, I'm so honored to have all of you joining us to witness the new chapter of Gaotu Corporation. I will invite my partners to come on to the stage to join me at this very beautiful moment, the initiation ceremony for Gaotu Corporation. Thank you very much. Thank you. [Presentation]

Gaotu K-12 and Gaotu college. [Presentation]

Dear friends, dear distinguished guests, I would like to declare Gaotu Group new brand is officially launched. Thank you. We will take a group photo. Thank you very much. That wraps up today launching events. Thank you very much for your support. [Statements in English on this transcript were spoken by an interpreter present on the live call.]