Enrollment and Education Focus - Total student enrollment in IT-focused supplementary STEAM education increased by 1.0% to 174,800 in Q1 2023 from 173,100 in Q1 2022[2]. Financial Performance - Net revenues decreased by 38.2% year-over-year to RMB385.1 million (US56.1million)inQ12023fromRMB623.5millioninQ12022[2].−Grossprofitdecreasedby44.029.3 million) in Q1 2023 from RMB358.9 million in Q1 2022[2]. - Operating loss was RMB58.8 million (US8.6million)inQ12023,comparedtooperatingincomeofRMB28.6millioninQ12022[2].−NetlosswasRMB49.9million(US7.3 million) in Q1 2023, compared to net income of RMB27.1 million in Q1 2022[2]. - Basic and diluted loss per ADS was RMB4.67 (US0.68)inQ12023[2].−NetrevenuesforQ12023wereRMB385,104,adecreaseof38.337.8 million) in Q1 2023 from RMB330.3 million in Q1 2022[10]. - Total liabilities as of March 31, 2023, were RMB 2,693,676, an increase from RMB 2,656,946 as of December 31, 2022[30]. - Cash and cash equivalents as of March 31, 2023, were RMB 50,000, down from RMB 52,000 as of December 31, 2022[30]. Tax and Currency Impact - The company recorded an income tax benefit of RMB8.1 million (US$1.2 million) in Q1 2023, compared to an income tax expense of RMB5.4 million in Q1 2022[14]. - The company reported a foreign currency exchange loss of RMB 114 in Q1 2023, compared to a loss of RMB 85 in Q1 2022[32]. Future Outlook and Strategy - The company expects net revenues for Q2 2023 to be in the range of RMB520 million to RMB550 million, representing a decrease of 15% to 20% compared to Q2 2022[18]. - The company plans to continue focusing on enhancing its curriculum to meet market demand and improve job placement rates for students[25]. Research and Development - Research and development expenses for Q1 2023 were RMB 15,128, a slight decrease from RMB 16,342 in Q1 2022[32]. - Research and development expenses on a GAAP basis were RMB 15,128 million for Q1 2023, slightly down from RMB 16,342 million in Q1 2022, a decrease of approximately 7.4%[35].
