Ladies and gentlemen, thank you for standing by, and welcome to the Gaotu Techedu Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded on Tuesday, February 28, 2023. I would now like to hand the conference over to your first speaker today, Ms. Sherry Liu, IR Manager of Gaotu. Thank you. Please go ahead.

Thank you very much, operator. Good evening, everyone. Thank you very much for joining us on Gaotu's fourth quarter and fiscal year 2022 earnings conference call. Gaotu's earnings release the fourth quarter and the full fiscal year was published earlier today and is available on the company's IR website at ir.gaotu.cn. Joining the call with me tonight from Gaotu's senior management is Ms. Shannon Shen, Gaotu's Chief Financial Officer. Shannon will first read the prepared remarks on behalf of Larry Chen, Gaotu's Founder, Chairman and Chief Executive Officer, and then Shannon will discuss the financials in more detail. Following the prepared remarks, Shannon will be available for the Q&A session. Before we begin, I'd like to remind you that this conference call will contain forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon management's current beliefs and expectations as well as the current market and operating conditions, and they involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control and may cause the company's actual results, performance or achievements to differ materially from those contained in any forward-looking statements. Further information regarding these and other risks is included in the company's public filings with the US SEC. The company does not undertake any obligation to update any forward-looking statements, except as required under applicable law. During today's call, management will also discuss certain non-GAAP measures for comparison purposes only. For a definition of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial results, please refer to our fourth quarter and fiscal year 2022 earnings release published earlier today. As a reminder, this conference is being recorded. In addition, a live and archived webcast of this conference call will be available on Gaotu's IR website. It is now my pleasure to introduce Shannon, who will provide this quarter's general business highlights on behalf of Larry. Shannon, please.

Thank you, Sherry. Hello, everyone. This is Shannon speaking. Larry is in the middle of his live-streaming session on Douyin right now. It is part of his 15-day consecutive book reading session on Douyin. Larry's valuable explorations in the short video ecosystem have huge strategic significance in the future business development and brand enhancement for Gaotu. Please excuse his absence tonight, and I will read Larry's prepared remarks on his behalf. Good evening, and good morning, everyone. Thank you for joining us on Gaotu's fourth quarter and fiscal year 2022 earnings conference call. I would like to take this opportunity to once again convey my gratitude for your continued interest in and support for Gaotu and the education industry. Before I start, I would like to remind everyone that our financial information that I'll mention later is based on RMB, unless otherwise noted. We delivered a decent set of results in the fourth quarter of 2022. We achieved steady quarter-over-quarter revenue growth for the third consecutive quarter, and we also reported another profitable quarter with a sizable net operating cash inflow. Our net revenues for the quarter increased to RMB629.6 million. Our gross billings secured a significant quarter-over-quarter increase, up 64.3% to approximately RMB1 billion, symbolizing that our business have entered a phase of continued steady development. During the quarter, we retained a net income margin of 11.2% and a non-GAAP net income margin of 13.9%, which brought our non-GAAP net income margin for the full fiscal year to 5.4%. Even more noteworthy is that we recorded a net operating cash inflow of RMB476.7 million during the quarter, which meaningfully lifted the full year number into positive territory and strengthened our cash position, attesting to our superior operational efficiency. We achieved effective growth on both the quarter and in annual…

We will now begin the question-and-answer session. [Operator Instructions] And our first question will come from [indiscernible]. Please go ahead.

Okay, thanks. First, today congratulations on astounding financial results on Q4 and the whole fiscal year. Thanks for taking my question. I have two questions for management. The first one is how will the product structure be adjusted in the next fiscal year? And my second question is, what are the quarter-on-quarter changes in spring enrollments of each courses? And what are the changes compared with the same period on last spring semester? Thanks.

Thanks for your questions. So, first, for the product structure, for the revenue structure, we foresee it to maintain sustainable in the first quarter in 2023, which means the learning services will still be the largest revenue contributor that it will contribute over 90% of the revenues, and the remainder of the 10% will contributed by the digital products. And within the 90% of the learning services revenues, we foresee the learning services from college students and adult business to contribute around 30% of the total revenues. And the rest will contributed by our non-academic tutoring services and other traditional learning services. And for your second question, like the quarter-over-quarter enrollments in the spring semester, because our business is fairly different between 2023 and 2022 -- if we can recall that in the first quarter in 2022, we announced a public release that we kind of like seized our tutoring services for high school section. And like in the first quarter in 2023, some of the traditional learning services will be picked up again. So, the enrollments is not that comparable between these two quarters. But going forward, we will be providing more specific instructions on the enrollments if the business develop in a more stable stage. Thanks.

Okay. Thank you.

This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Sherry Liu for any closing remarks.

Thank you, operator, and thank you everyone for joining the call today. If you have any further questions, please don't hesitate to contact our Investor Relations Department or our management via e-mail at ir@gaotu.cn directly. You're also welcome to subscribe to our news alert on the company's IR website. You're also cordially invited to join Larry's live-streaming section on Douyin right now. Thank you very much again for your time. Have a great night.

The conference has now concluded. Thank you for attending today's presentation. And you may now disconnect.