[Management View]
Key metrics: Net revenue of RMB 487.6 million, net income of RMB 75.2 million, 169,083 new student enrollments, 85.2% gross profit margin.
Strategic priorities: Focus on high-margin areas, course portfolio diversification, technology advancements, and partnerships with traditional media.

[Outlook]
Performance guidance: Q2 2025 net revenues expected between RMB 500 million and RMB 520 million, representing a 1.6% to 5.6% YoY increase.
Future plans: Continued focus on high-margin areas, leveraging AI tools, expanding partnerships, and enhancing the blended online-offline delivery model.

[Financial Performance]
YoY trends: Net revenue decreased by 6.8%, net income decreased by 33.2%, cost of revenue decreased by 6.3%, operating expenses remained stable.
QoQ trends: Deferred revenue decreased from RMB 916.5 million to RMB 891.6 million.

[Q&A Highlights]
Question 1: What drove the decline in net revenues for Q1 2025?
Answer: The decline in net revenues was primarily due to lower gross billings from post-secondary courses. This reflects a strategic shift towards high-margin areas and a moderated investment in degree and diploma programs.

Question 2: Can you elaborate on the strategic partnerships mentioned?
Answer: We have established a new cooperation with Hunan TV's Happy Shopping platform, leveraging its broad consumer reach and brand influence. This partnership aims to enhance our presence in the senior education segment. Additionally, we continue our initiatives with Beijing TV to bolster our reach within this demographic.

Question 3: How is the dual teacher model impacting student outcomes?
Answer: The dual teacher model pairs academic mentors with learning facilitators, making courses more accessible and engaging. This approach has resulted in a 98% course completion rate among new students and a 14% increase in knowledge retention, demonstrating its effectiveness in delivering substantial educational outcomes.

Question 4: What are the key factors contributing to the growth in average order value?
Answer: The growth in average order value, which increased by 7.5%, is supported by successful strategic initiatives, including course portfolio diversification and improved learner engagement. These efforts have enhanced the perceived value of our offerings.

[Sentiment Analysis]
Tone of analysts: Neutral to positive, with a focus on understanding the drivers behind financial performance and strategic initiatives.
Tone of management: Confident and forward-looking, emphasizing sustained profitability, strategic focus, and technology integration.

[Quarterly Comparison]
| Metric | Q1 2025 | Q1 2024 |
|----------------------------|---------------|---------------|
| Net Revenue | RMB 487.6M | RMB 523.2M |
| Net Income | RMB 75.2M | RMB 112.7M |
| Gross Profit Margin | 85.2% | N/A |
| New Student Enrollments | 169,083 | N/A |
| Deferred Revenue | RMB 891.6M | RMB 916.5M |
| Cost of Revenue | RMB 72.3M | RMB 77.2M |
| Operating Expenses | RMB 341.1M | RMB 341.1M |

[Risks and Concerns]
- Decline in net revenues and net income.
- Macroeconomic and geopolitical uncertainties.
- Dependence on strategic partnerships and technology integration.

[Final Takeaway]
Sunlands Technology Group's Q1 2025 performance reflects a strategic focus on high-margin areas, technology integration, and partnerships to drive growth. Despite a decline in net revenues and net income, the company remains confident in its ability to sustain profitability and capitalize on long-term opportunities in the adult learning market. The introduction of a blended online-offline delivery model and the dual teacher approach are key initiatives aimed at enhancing learner engagement and outcomes. Looking ahead, Sunlands aims to leverage AI tools, expand strategic partnerships, and maintain vigilant risk management to navigate market uncertainties and drive sustainable growth.