New Oriental Education & Technology Group (EDU) Q4 2022 Earnings Call Transcript

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New Oriental Education & Technology Group (EDU 4.54%)
Q4 2022 Earnings Call
Jul 27, 2022, 8:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good evening, and thank you for standing by for New Orientals FY 2022 fourth quarter results earnings conference call. At this time, all participants will be in listen only mode. After management's prepared remarks there will be a question-and-answer session. Today's conference call is being recorded.

If you have any objections, you may disconnect at this time. I would now like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao.

Sisi Zhao -- Director of Investor Relations

Thank you, operator. Hello, everyone, and welcome to the Orientals fourth fiscal quarter 2022 earnings conference call. Our financial results for the period were released earlier today and are available on the company's website as well as on Newswire Services. Today, you will hear from Stephen Yang, executive president and chief financial officer.

After his prepared remarks, Stephen will and I will be available to answer your questions. Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties.

As such, our results may be materially different from the views expressed today. A number of potential risks and uncertainties are outlined in our public filings with the SEC. New Oriental does not undertake any obligation to update any forward-looking statements except as required under applicable law. As a reminder, this conference is being recorded.

In addition, a webcast of conference call will be available on the Oriental Investor Relations website at investor.neworiental.org. I'll now turn the call over to Mr. Yang. Stephen, please go ahead.

Stephen Yang -- Executive President and Chief Financial Officer

Thank you, Sisi. Hello, everyone, and thank you for joining us on the call. Before going into details of our financial performance, I would like to take this opportunity to extend our gratitude to those who have been supporting and still believing in New Oriental. Where our business in the previous quarters were largely affected by the government policies introduced last year.

I'm glad to announce that we are now paving a new path innovative business opportunity. As the company embarks on a fresh journey that strives to encourage all around development of students, and for the betterment of the society, and at the same time focus on generating profits, and returns for our shareholders. Now, I would like to spend some time to talk about the quarter performance across our remaining business lines, and introducing our new initiatives to you in detail. Our key remaining businesses have shown remarkable resilience and achieved a promising trend.

Breaking down the overseas test prep business recorded the revenue increase of 6% in dollar terms for the fiscal year 2022. The overseas study consulting business recorded the revenue increase of about 16% in dollar terms year-over-year for the fiscal year 2022. The adults in university students' business recorded revenue growth of approximately 30% year-over-year for the fiscal year 2022. As for our new business initiatives, as mentioned in the past quarter, we have last of several new initiatives throughout the year, which mostly revolve around facilitating students around development.

I'm glad to share with you that these new initiatives have shown positive momentum. Firstly, the non-academic tutoring business, which we have rolled out in over 50 existing cities, focused on cultivating students' innovative ability and a comprehensive ability. We're happy to see increased market penetration in both market as we have tapped into. The top ten cities in China have contributed in more than 60% of the revenue of this business.

Secondly, the intelligence learning system and device business is a service designed to provide a tailored digital learning experience for students, utilizing our powerful teaching experience, data and technology to provide personalized, and targeted learning exercise content together with our teachers monitoring, and upsizing the learning curve of the students are the back-end system. The new initiative education services, not only greatly improve the student's learning efficiency, but also cultivate the students proactive learning habits. We have tested its adoption in around 60 cities, and are delighted to see improve the customer retention rates and scalability of this new initiative. The revenue contribution of this initiatives from the top ten cities in China is over 60%.

Meanwhile, the study tour and the research camp business are an initiative that aims at offering students of K-12 and university ages of the opportunity to fully leverage over their free time and holidays, to broaden the scope of knowledge and cultivate a subject's interest. We have conducted a study tours and research camps over 15 cities across the country. The revenue contribution of this initiative from the top ten cities in China is over 55%. At the same time, we have also been launching smart education business, which comprises smart teaching, smart hardware, science and technology innovation education, and other services targeting local governments, education authorities, primary or secondary schools, and kindergartens.

Educational material and digitalized smart study solutions, the soft learning system leveraging advanced technology that will enable students to have complete control over the pace and flexibility of the learning age, where remote learning becomes increasingly mainstream. As well as exam prep course design for students with junior college diplomas to obtain bachelor's degree. The above-mentioned business has been gaining traction and contributing to the overall growth of the company. During the last two physical quarters, we have been fully committed to complying with government policy, and as a result the total number of schools to the learning centers was reduced to 744 by the end of this fiscal year.

The significant change in our structure and this quarter is the importance of our industry leading alignment system, which has been one of the constants during the company's restructuring phase as we remain committed to investing in the

Questions & Answers:

Operator

This is your operator. Please continue to hold the line, we will reestablish the speaker's connection shortly. Thank you. Please continue to hold the line.

Thank you for standing by. The speakers have reestablished connection. We have the speakers on the line here.

Stephen Yang -- Executive President and Chief Financial Officer

So yeah, we got lost. July. And so, I repeat again. OK.

So, before going into the detail of our financial performance, I would like to take this opportunity to extend our gratitude to those who have been supporting and believing in New Oriental. While our business in the previous quarters were largely affected by the government policies introduced last year. I'm glad to announce that we are now paving a new path innovative business opportunity as the company embarks on a fresh journey that strives to encourage old round developmental of students and for the betterment of the society, and at the same time focus on generating profits and returns for our shareholders. Now, I would like to spend some time to talk about of this quarter performance across our remaining business line and introduce our new initiatives to you in detail.

Our key remaining business have shown remarkable resilience and achieved a promising trend breaking down the overseas tax credit business record of the revenue increase of 6% in dollar terms for the fiscal year 2022. The overseas study consulting business recorded the revenue increase of about 16% in dollar terms year-over-year for the fiscal year 2022. The adults and university students' business recorded the revenue growth of approximately 30% year-over-year for the fiscal year 2022. As for our new business initiatives, as I mentioned in the past quarter, we have launched several new initiatives throughout the year, which mostly revolve around facilitating students all round development.

I'm glad to share with you that these new initiatives have shown positive momentum. Firstly, the now dynamic children business, which we have rolled out over 50 years existing cities focused on cultivating students' innovative ability and comprehensive quality. We're happy to see increase the market penetration in both markets we have tapped into. The top ten cities in China have contributed more than 60% of the revenue of this business.

Secondly, the intelligence learning system and device business is the service designed to provide a tailored digital learning experience for students. It's utilized all parts of teaching experience, data and technology to provide a personalized and targeted learning exercise content, together with our teachers monitoring and accessing the learning curve of our students on the back-end the system. This new innovative education service, not only greatly improve students learning efficiency, but also cultivate the student's proactive learning habits. We had this year of adoption around the six cities, and are delighted to see improve the customer retention rates and scalability of this new initiative.

The revenue contribution of this from the top ten cities in China is over 60%. Meanwhile, the study tour and the research camp business is an initiative that aims at offering students of K-12 and university ages of the opportunity to fully leverage their free time and holidays, to broaden the scope of knowledge and to cultivate the subjects interest. We have conducted the study tour and the research camp over its 50 cities across the country. The revenue contribution of this from the top ten cities in China is over 55%.

At the same time, we have also been launching smart education business, which comprises smart teaching, smart hardware, science and technology innovation, education and other service, targeting local governments, education authority, primary and secondary schools, and kindergartens. Educational material on to utilize the smart study solutions, a self-learning system leveraging advanced technology that will enable students to have complete control over the pace and the flexibility of learning in an age where remote learning becomes increasingly mainstream. As well as exam prep courses designed for students with junior college diplomas to obtain bachelor's degree. The above-mentioned business has been gaining traction and contributing to the overall growth of the company.

During the last two physical years, we have fully committed to complying with government policies, and as a result the total number of all the schools and learning centers was reduced to 744 by the end of this fiscal year. These significant changes in our structure have and their score to the importance of our industry leading OMO system, which has been one of the constants during the company's restructuring phase as we remain committed to investing in the R&D of the technology. The OMO has been instrumental during the restructuring process as well as COVID-19 outbreaks in certain part of China, where a strong flexibility is required in migrating students between online and offline classes to minimize the learning disruption. We continue our efforts in developing and revamping our OMO teaching platform, and camps leveraging our education infrastructure, and technology strength across the remaining key business, and new business to provide more advanced, and diversified education services to the customer for all ages.

We have a [inaudible] of $36 million in this quarter, and $166 million in full fiscal year to improve and maintain our OMO teaching platform, which ensures that we may continue to offer high quality service and flexibility to our students during the pandemic. In response to the [inaudible] industrial situation in China, and in compliance with the latest regulations in the education space, we have been implementing structural changes to our pure online platform Koolearn Were actively exploring new initiative and broadening its customer base and offerings by leveraging existing technology, that has been the core of this business. One good example of the potential business direction that has shown promising results to date is DONG FANG ZHEN XUAN, an e-commerce platform for selling agriculture and other products. Towards the end of the December 2021, Koolearn began piloting livestreaming events on various short video platforms such as Douyin, which allows Koolearn to promote the high-quality agriculture and other products such as books to the younger group of audience through social media.

It also enabled Koolearn to top into the broader customer base, the new e-commerce livestreaming generation, while still bringing our nation's agriculture producers, farmers and their products to the forefront where we believe they belong. This has results to date a notable user adoption, and their attraction to this platform with the DONG FANG ZHEN XUAN, having the way encouraging and optimistic direction. After the introduction of the government policy on after school children last year, which have no doubt posed a direct impact on our business, we have received many inquiries and concerns from investors over the company's financial position. As a company with a long-standing heritage, we have always made sure that we are prepared for and are capable in weathering changes in the market.

And that is reflected in our ability to maintain a strong cash position throughout the whole restructuring process. By the end of this quarter, our cash and cash equivalents from deposit and short-term investments totaled approximately $4.2 billion. The company continued to seek opportunities to create more value to shareholders. On July 26, 2022, New Oriental sports director authorized the repurchase of up to $400 million of the company common shares during the period from July 28, 2022 throughout May 31st 2023.

This share repurchase program authorized the company to purchase its ADS work common share from time to time on open markets in accordance with applicable rules and regulations. The timing and extent of any purchase would depend upon market conditions. The trading price of ADS and these common shares, as well as the other factors. Now, I would turn the call over to Sisi to share with you about the key financials.

Sisi, please go ahead.

Sisi Zhao -- Director of Investor Relations

OK. Now I'd like to walk you through the other key financial details for the first quarter. Operating costs and expenses for the quarter were $629.7 million, representing a 52.1% decrease year-over-year. Non-GAAP operating costs and expenses for the quarter, which excludes share-based compensation expenses were $600.9 million U.S., representing a 53.6% decrease year-over-year.

The decrease was mainly because of the reduction of the facilities and numbers of staff as the results of the restructuring in this fiscal year. Cost of revenue decreased by 57.2% year-over-year to $247.8 million. Selling and marketing expenses decreased by 50.7% year-over-year to $95.8 million. G&A expenses for the quarter decreased by 43.9% year-over-year to $286.1 million.

Non-GAAP G&A expenses, which excludes share-based compensation were $257.2 million, represents a 47.4% decrease year-over-year. Total share-based compensation expenses, which were allocated to related operating calls and expenses, increased by 42.9% to $28.8 million in the fourth quarter. The increase is due to the ground of shares of the company to employees and directors in May 2021, it was great resting over the three years. Operating loss was $105.6 million compared to the loss of $102.4 million in the same period of the last fiscal year.

Non-GAAP operating loss for the quarter was $76.9 million, compared to a loss of $82.2 million in the same period of the prior fiscal year. Net loss attributable to New Oriental for the quarter was $189.3 million, compared to the loss of $45.5 million in the same period of last year. Basic and diluted net loss per ADS attributed to a new Oriental were $1.12 and $1.12 respectively. Non-GAAP net loss attributable to New Oriental for the quarter was $160.3 million, compared to the loss of $27.9 million in the same period last year.

Non-GAAP basic and diluted net loss per ADS attributable to New Oriental were $0.94 and $0.94 respectively. Net operating cash flow for the quarter was up approximately $29.3 million, and CapEx for the quarter was $22.3 million. Turning to the balance sheet, as of May 31, 2022, New Oriental had cash and cash equivalents of $1,148.6 million. In addition, the company had $1,140.1 million in term deposits and $1,902.3 million in the short-term investment.

New Oriental deferred revenue balance, which is cash collected from the registered students for the courses, and recognized proportionally as revenue as the instructions were delivered this quarter was $933.1 million, a decrease of 51.6% as compared to a $1,926.4 million at the end of this quarter. The decrease is primarily due to the secession of K-9 academic after school tutoring services with compliance with the government's policy in China. Now I'll hand over to Stephen to go through the outlook and guidance.

Stephen Yang -- Executive President and Chief Financial Officer

Thank you, Sisi. Looking ahead into the first quarter of fiscal year 2023. With the process of school closures now largely completed, we expect that our school networks to become stabilized. The company has now entered a stage of starting a fresh, exploring new opportunities with greater flexibility and strong cash flows.

We're confident in the sustainable profitability of all our remaining key business, as well as the growth and profit potential of our new initiatives. For our new businesses, it will take time for them to come to full operation, but as we saw in this quarter, the encouraging performance they have already achieved is showing proof that we are heading toward the right direction, and we're confident that the business will be starting to contribute to meaningful revenue from the next fiscal year onwards. As for the recent pandemic developments in China, thanks to our OMO system, we believe that the overall impact that all the cost to our business and financials will be limited. We have also had measures in place to control and handle lockdown situations should they ever arise.

In sum, we expect the total net revenues in the first quarter of fiscal year 2023 to be in the range of $641.3 million to $680.6 million, representing year-over-year decline in the range of 51% to 48%. Bottom line wise, we're confident that we will achieve a turnaround and profitable in the first quarter. As well as achieving operating profit in the full year of 2023 fiscal year. To conclude, we're now taking all kinds of operational actions to promote our key remaining business, and cautiously investing in new business, which will be the new growth engines that accelerates our recovery and to seek profitable growth.

At the same time, we will continue to seek guidance from and cooperate with government authorities in various provinces in China in connection with these efforts to comply with the relevant policies, guidelines and any related implementation laws, regulations and measures, and to further adjust our business operations as required. I must say that these expectations and the forecast reflect our consideration of the latest regulatory measure, as well as our current and limit review, which is subject to change. This is the end of our fiscal fiscal year 2022 Q4 summary. At this point, Sisi and I like to open the floor for questions.

Operator, please open the call for these. Thank you.

Operator

Thank you. The question-and-answer session of this conference call will now start any moment. [Operator instruction] And the first question comes from Mark Li with Citi.

Mark Li -- Citi -- Analyst

Hi, Stephen. May I ask I for one is would you have any breakdown of revenue for the guidance that you provide by the major categories?

Stephen Yang -- Executive President and Chief Financial Officer

Sorry, Mark. You know, as before, we wouldn't want to give the breakdown of the revenue breakdown in next quarter.

Mark Li -- Citi -- Analyst

Got it. So maybe I follow up with a quick question. I notice we have around 744 campus and it should be stabilized going forward. It looks like it is higher than the previous mentioned 650 to 700 when the bottom.

So, would it mean there is a positive difference from the time we last spoke? And what would be your outlook for this time?

Stephen Yang -- Executive President and Chief Financial Officer

First of all, I must mention that our remaining business, you can call it the traditional business, like the oversea religious business in a consulting business, and the adult and university students' business. I think they are all are remarkable and resilience. Because you see saw the numbers all of this fiscal year 2022. So, we do hope we can do better in fiscal year 2023, in the new year.

And on the other hand, we're lost to some new missteps, like when tutoring courses and some new like intelligent learning systems and devices, they service to these students, and as well the study tours and research camp. I think the market demand is always there. And even for the new business, we started in fiscal year, but it's just a couple of months ago. But we have seen the customer retention rate is very high.

And we do hope they can do better in the office in the new fiscal year. So that's why we do keep little bit the of more number we're higher number of the learning centers than we expected about three months ago, end Mark.

Mark Li -- Citi -- Analyst

I have a quick follow up. It's about how many of the learning center you have, both, nonacademic tutoring and existing business.

Stephen Yang -- Executive President and Chief Financial Officer

[Inaudible] detail number. But in more than 50 cities, we do have the new business, like the [inaudible]. So, you can say the [inaudible] will be the new the growth engine going forward.

Mark Li -- Citi -- Analyst

Thank you, Stephen.

Stephen Yang -- Executive President and Chief Financial Officer

OK. Thank you. Thank you, Mark.

Operator

Thank you. And the next question comes from Felix Liu with UBS.

Felix Liu -- UBS -- Analyst

Thank you, Stephen, and thank you for taking my questions, and congratulations on the very resilient quarter post restructuring. First, I want to ask a question about the new initiatives. And you mentioned progress on the tutoring as well as [inaudible] So, if we look at those from a 1-year to the 3-year horizon. Which one of these new initiatives you expect the biggest revenue contribution? Or could you [inaudible] your expectation on the revenue contribution from the bigger to the lower initiative? My second question is on DONG FANG ZHEN XUAN, I know this is a very good initiative that we launch under Koolearn.

Have we seen any positive synergies between the livestreaming commerce with our education businesses? Thank you.

Stephen Yang -- Executive President and Chief Financial Officer

OK. You know, ask for being not done with the children, of course. As you know, we launched this course is focused on cultivating the students in this that the innovative ability and the comprehensive ability. And so, we do have a lot of course, like the courses to improve the students reading and the presentation scale, and some like the programing role both the arts a sport, well, a lot of courses.

But we have seen the extremely the revenue growth in the like a couple of months, because the market demand is always there. And, after the government policy last year, we saw some students that they do have a more spare time. So, the parents and students love to enroll in our new classes. And, you know, it's new business.

The revenue contribution is very small, but it grows very fast. So, we do believe the new business will contribute more and more revenue going forward. And DONG FANG ZHEN XUAN, I share with you more information about DONG FANG ZHEN XUAN, but I have to say I can't share the business performance in detail with you. I will leave the DONG FANG ZHEN XUAN amendments the Koolearn managements to share with you more information in there the earnings release announcements [inaudible] But you know as I mentioned earlier, DONG FANG ZHEN XUAN re events innovative the blend of the knowledge sharing and the agriculture product promotion.

You can check the numbers like of the followers and the GM lay on third party the data platforms as reference, and we are also grateful to be widely recognized across the media in China, and even in the other countries. And behind the financial gains, I think we're pleased to see you, we have also generated intangible returns. Well, you know wishes to fulfill our social responsibility by helping the farmers, and some likely the agriculture product producers. And so, this new business model has been our expectations you saw what happen a lot of months, and we expect the Koolearn will become a key growth driver and quite related to deliver a meaningful contribution to the new rentals' revenue and profit margin in the new year or even in the next two or three years.

And yeah, the audience love the DONG FANG ZHEN XUAN platforms. So, I think DONG FANG ZHEN XUAN performance, in our house, these local schools, and the learning centers to get more students into our classrooms, even for the traditional business more than your business. So, this is very good for us. Felix.

Felix Liu -- UBS -- Analyst

OK. Great. Thank you for the color.

Stephen Yang -- Executive President and Chief Financial Officer

Yeah, thank you.

Operator

Thank you. And the next question comes from Liping Zhao with CICC.

Liping Zhao -- CICC -- Analyst

Good evening, Stephen. Thanks for taking my question. I got to ask, could you please share the revenue contribution of new initiatives in the first quarter Q at Y22, and also in first quarter of Y23 guidance? And second question is about the GP margins. Are we expecting the around 53% GP margin of what you have Y22 to be a relatively stable stage for the coming quarters? Thank you.

Stephen Yang -- Executive President and Chief Financial Officer

OK. The new business, the I think the revenue contribution from the new business will contribute around 20% of total revenue. This is not include the revenue from the DONG FANG ZHEN XUAN from the Koolearn. So, this is all the only if you will, site like the outcome reports or the research, the summer camp or something like that where some of the other display the new business.

This is not includes DONG FANG ZHEN XUAN, and yeah the only GP margin side. I think we've got a lock in this quarter in Q4. But we do believe we can actually be higher gross margin in Q1 in the next quarter or even for the next two full year, fiscal year 2023. So that's why I said at the bottom line wise, we're confident, we will achieve a turnaround and a profitable in the first quarter and next quarter.

And also, I think we expect, we will be profitable in the full year of fiscal year 23.

Liping Zhao -- CICC -- Analyst

OK. Thanks. That's helpful.

Stephen Yang -- Executive President and Chief Financial Officer

Thank you.

Operator

Thank you. [Operator instruction] The next question comes from [inaudible] with TH Capital, LLC.

Unknown Speaker

Hi, Stephen. Can you guys hear me?

Stephen Yang -- Executive President and Chief Financial Officer

Thank you.

Unknown Speaker

Hello?

Stephen Yang -- Executive President and Chief Financial Officer

Yeah.

Unknown Speaker

The question is if you got to move on to the news business, what is the new seasonal [inaudible] will be going forward.

Sisi Zhao -- Director of Investor Relations

Yeah. Actually, as we restructured all the business lines, terminated K-9 academic training. The remaining business, remaining key business is like overseas related business, and also domestic test prep for our university students. These businesses are much more seasonal than the K-12.

So actually, you will see going forward since next fiscal quarter, our Q1 revenue contribution for full year will increase compared with previous years. So Q1 will be peak season, continue to be the peak season, and also Q3 will be set in peak season, and Q2, and Q4 will be relatively less in terms of the revenue contribution for full year. Yeah.

Unknown Speaker

OK. Thank you. That's helpful.

Operator

Thank you. And the next question comes from Lucy Yu with Bank of America.

Lucy Yu -- Bank of America Merrill Lynch -- Analyst

I'm thinking, Stephen, I think is this about taking my question? My question is, I'm a GP modern. So, can you please elaborate the margin expansion in the fourth quarter, up from the 39% in the third quarter? And you also mentioned that ATP margin volume four might be higher than the 53%. And what is the driver behind that? Thank you.

Stephen Yang -- Executive President and Chief Financial Officer

Yeah, you know, Lucy, you know, we have already, we almost have done the learning center closure and some layoffs in the last year, about three quarters. So, and as, I say, we will keep the same number of the learning centers. And we want to hire more like new people. And so that means the fixed cost is better, and we're seeing the revenue growth just get recovered.

And I think we will do; we will see more and more the operating leverage going forward. And in Q4, because, you know, the overseas consulting business typically contribute more revenue in Q4. So, we do have that seasonality in Q4 for the obviously consulting business. So, let's, let's do the analysis year-over-year.

So, we do believe the in fiscal year 23, the both the GP margin and the profit margin, we will get a better for them for the new year. As I said, we will be profitable in fiscal year 2023, Lucy.

Lucy Yu -- Bank of America Merrill Lynch -- Analyst

Thank you, Stephen.

Operator

Thank you. And next question, [inaudible] Xiang with Morgan Stanley.

Unknown Speaker

Thank you, management, and congratulation. I want to ask about the new business that you see of all this momentum in your new business. Do you have any operation data that you could share about? For example, [inaudible] summer and the retention and also like the student acquisition? Any detail that you could share? And also, how do you see the competition in the public schools? Because they also offer some nonacademic courses or after school service. Thank you.

Stephen Yang -- Executive President and Chief Financial Officer

Yeah, some business data for the new business, even though we started business a couple of quarters ago. But I, you know, as a side of the business, they had developed very good. And, you know, these still data retention rates for some, like the reading and the presentation skill courses is almost it's almost too closely to the traditional K-12 anatomical courses. So, this sounds very good, right? And on the margins side, I remember in a lot of our earnings call, we guidance our target is to go the break even for the new business.

But this time we feel better. So, I think we do believe we can kind of profit for the new business. And, but it is too early to say the detail numbers will be the margin for the new business. But we do believe we can go to profitable in the new fiscal year.

Unknown Speaker

OK. Thank you. And also, on the way the public schools, you have these you or advantage are with them.

Stephen Yang -- Executive President and Chief Financial Officer

Yeah. Because, we do have a lot of data and system, and teaching experience where even some data in hand. So, we set up a new department to sell the products to the public schools, where even the kindergarten is primary and secondary schools. And it's just a new start.

But we do believe that we can do better. And because, I do believe, the public schools in kindergarten, they need our service because, if ask for so many years, and we spend a lot of money, and invest a lot of the human resources [inaudible] workers, and underwriters to build our system, and even the requests in our base. So, I think we will find a new way to monetize this.

Unknown Speaker

OK. Thank you.

Stephen Yang -- Executive President and Chief Financial Officer

Thank you.

Operator

Thank you. We are now approaching the end of the conference call. I would now turn the call over to New Orientals executive president and CFO, Stephen Yang, for his closing remarks.

Stephen Yang -- Executive President and Chief Financial Officer

Again, thank you for joining us today. If we have any further questions, please do not hesitate to contact me or any of our investor relations representatives. Thank you.

Operator

[Operator signoff]

Duration: 0 minutes

Call participants:

Sisi Zhao -- Director of Investor Relations

Stephen Yang -- Executive President and Chief Financial Officer

Mark Li -- Citi -- Analyst

Felix Liu -- UBS -- Analyst

Liping Zhao -- CICC -- Analyst

Unknown Speaker

Lucy Yu -- Bank of America Merrill Lynch -- Analyst

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