Ladies and gentlemen, thank you for standing by and welcome to Sunlands' First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After prepared remarks by the management team, there will be a question-and-answer session. Today’s conference call is being recorded. [Operator Instructions] I would now like to turn the call over to your host today, Daisy Wang, Head of Investor Relations of the company. Please go ahead.

Hello, everyone, and thank you for joining Sunlands' first quarter 2020 earnings conference call. The company's financial and operating results were issued in the press release via Newswire services earlier today and are posted online. You can download the earnings press release and sign up for our distribution list by visiting our IR website. On the call, our CEO Tongbo Liu will provide an update on our operational performance, as well as our strategic initiatives. Our CFO, Selena Lv Lu will give you an overview of our financial performance and also provide our guidance for the second quarter of 2020. Following their prepared remarks, we will move into the Q&A session. Before I hand it over to the management, I would like to remind you of Sunlands' Safe Harbor statement in relation to today's call. Except for the historical information contained herein, certain of the matters discussed in this conference call are forward-looking statements. These statements are based on current trends, estimates and projections and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information about the potential risks and uncertainties, please refer to the company's filings with the SEC. With that, I will now turn the call over to our CEO. Please go ahead, Tongbo.

Thank you, Daisy. Hello, everyone. Welcome to Sunlands' first quarter 2020 conference call. Sunlands delivered solid first quarter results despite significant challenges stemming from the COVID-19 pandemic, specifically the lockdown of our Wuhan campus, which affected almost half of our sales force, and the postponement of national STE exams from April to August that has delayed student enrollment for our preparation classes. Our capacity utilization was significantly limited due to the pandemic and gradually improved to about 80% during the quarter, thanks to the extraordinary efforts of our employees and our robust online infrastructure. We achieved gross billings of RMB516.8 million in the first quarter, in addition to profitability improvement with net loss margin narrowed by 8.4 percentage points to 11.6%, resulting from our prudently managed costs and expenses. While the COVID-19 pandemic has posed challenges for both [in-videos] and the business, they have also presented emerging opportunities. The pandemic has forced schools, universities and companies to turn to remote working and teaching, creating a booming online learning. Although the STE exam has been postponed, our students are actually spending more time to prepare for tests, and is showing a higher level of loyalty and enthusiasm for learning. In the first quarter, total time spent on live streaming classes and number of quizzes taken per active user increased 19% and 21% respectively year-over-year. We expect the increased engagement to lead to improved examination results and help promote our courses in the future. Inspired by people’s changing behavior patterns during the lockdown period, in the first quarter of 2020, we began experimenting with new approaches to student acquisition, aiming to increase sales efficiencies and student conversions. In addition to our student acquisition strategy, we continue to diversify our online course offerings to include more master’s-oriented, professional certificates and non-degree programs, banding…

Thank you for the introduction Tongbo, and hello, everyone. Thanks for joining us. I'm very happy to begin my new role with the company and host this conference call. I will have my fifth anniversary with Sunlands in July this year. In past five years, I have been privileged to serve Sunlands and deeply and passionately engaged in its growth and development. I strongly believe that the online education industry is one of the most promising industries in China. In the future, together with Tongbo, our CEO, and my best partner, I will communicate our company's strategies, operational performance and corporate governance transparently, openly and responsibly to the capital markets. During the first quarter, we continued our balanced approach to both revenue growth and profitability. We were pleased, especially amid difficulties caused by the COVID-19 outbreak, to see sustained strength in our gross profit, which increased sequentially for two quarters in a row as well as narrowing our net losses both sequentially and year-over-year. With cost structure optimization as a continued priority, our operating expenses decreased 7.3% compared with the same period last year. Looking ahead, we are optimistic that along with our new initiatives focused on student acquisitions and enriched content, we can further leverage our existing infrastructure to improve both the sustainability and effectiveness of our business model and ultimately drive long-term growth. Now, let me walk you through some of the key financial results for the first quarter 2020. All comparisons are year-over-year and all numbers are in RMB. In the first quarter of 2020, net revenue were RMB565.1 million, relatively flat to the first quarter of 2019. Cost of revenues increased by 13.4% to RMB96.9 million in the first quarter of 2020 from RMB85.5 million in the first quarter of 2019, which was primarily due to…

There are not questions at this time. I would like to turn the conference back over to Daisy Wang, Head of Investor Relations for closing remarks.

Once again, thank you everyone for joining today's call. We look forward to speaking with you again soon. Good day and good night.

This concludes the earnings conference call. You may now disconnect your lines. Thank you.