Four Seasons Education (Cayman) Inc. (NYSE:FEDU) Q3 2020 Earnings Conference Call - Preliminary Transcript

Jan 16, 2020 • 08:00 am ET

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Four Seasons Education (Cayman) Inc. (NYSE:FEDU) Q3 2020 Earnings Conference Call - Preliminary Transcript

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Presentation
Executive
Joanne Zuo

revenue growth. Additionally, our online classes as an efficient supplement to our offline courses are well received by our students and have achieved rapid development in the fiscal 2020 to date. We have also been proactively explore new opportunities in the online education market.

Besides, our organic business growth, we remained active in developing and cultivating various innovative educational products and activities that prominently differentiate ourselves among the K-12 after-school education providers. Our interest-oriented courses have been well received by students from different age groups.

Our math lab project, our flagship product, continued to gain the industry's attention. We have established a comprehensive math-based curriculum and evaluating system in this program. Including, cultural courses, experimental activity classes at the magical gain [Phonetic] and the self-testing system. As of the third quarter, we inked collaboration agreements with multiple regular K-12 schools to introduce our math lab teaching materials and courses to their students, further enhancing Four Seasons Education's brand awareness in our targeting student group.

In addition, our math lab project received a very positive feedback from educational professionals and participants in the fifth China Education Innovation Expo. These achievements demonstrate our commitment to education, as well as our strong educational innovation capabilities, which in turn will further increase student engagement with us. We will remain dedicated to curriculum development and technological innovation. Beside, consistently improving our math lab project through consistently upgrading the self-testing system. We have been proactively exploring new opportunities through invest -- through investments in our online presence in the meanwhile. Also, we will keep cultivating our brand educational content

content and the teaching methods to consolidate our leading position and the brands reputation in K-12 education and the intellectual development.

We believe our enrollment growth, learning center network development, top line performance, as well as positive progress of other activities in the third quarter, also have to illustrate to the effectiveness of our strategy and the resiliency of our business model. With the right strategy and efficient execution in place, we're optimistic about our performance for the quarters to come. With strong experience in math education, proactive approach to diversifying course offerings with level coverage expansion as well as diligent network construction, we believe we are in the right trajectory to grow our business.

With that, I would now turn the call over to our Vice President of Finance, Ms. Xun Wang, who will discuss key financial results.

Executive
Xun Wang

Thank you, Joanne. And hello everyone. Our third quarter results were solid and in line with our expectations. We delivered revenue of RMB103.5 million, representing year-over-year growth of 13.5%. This top line performance reflects the healthy ramp up of our learning centers, as a result of our established brand image among students and parents. Along with our cost control and optimization of operations, we realized operating income of RMB10.9 million and continued to make positive drive in the third quarter. We are dedicated to optimizing our operation across all aspects on an ongoing basis in order to