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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Q & A
Operator
Operator

We will now begin the question-and-answer session. [Operator Instructions] The first question comes from Joy Way [Phonetic] of 86 Research. Please go ahead.

Analyst
Joy Way

Hi, [Indecipherable]. Congratulations on the solid performance. My questions was about...

Operator
Operator

Miss. wait. Could you come a little closer to the speaker phone or microphone, please.

Analyst
Joy Way

Is this better now?

Operator
Operator

Yes, thank you for your help.

Analyst
Joy Way

Okay. My questions will mostly focus on our future growth strategies. Firstly, on geographic expansion. Could management share any metrics on the newly entered cities, including Chongqing, Shenzhen and Guangzhou. Like, how many enrollment come from these two -- these three cities. The ramp up paced better or worse than our expectation, and also the reasons behind the results.

And secondly, what is the expansion plan in the coming quarters, both in Shanghai and also the newly entered cities? What kind of measures will we take to promote our brand there? How will the development there impact our financials?

And thirdly, a more general question on our growth strategies besides geo expansion. Can management share with us your plans on extending cost offerings in areas like more subjects or wider age groups or other models such as online education. Which one do you think will offer the most opportunities for Four Seasons Education and how do we plan to grab the opportunities there? Any color would be helpful. Thank you.

Executive
Xun Wang

Okay, Let me take-up first. Yeah, I want to - I can take a first crack and then you can, chime in or head on if you want, okay. First of all, thank you. To your first question, sorry, we -- we don't disclose the detailed enrollment of those learning centers respectively. But in general, our centers in Chongqing and then Guangzhou getting matured. And the results well in line with our expectation. And I will say, the -- in certain cities in Guangzhou, because we have several learning centers in Guangzhou, in certain cities in Guangzhou and in Chongqing, I would say, it's actually better than our expectation. The ramp-up is very well and fast. Shenzhen, the center is really new. So it's still in the sort of development. It's at the very early stage of its cycle. So not much color on that yet. So we are in the process of recruiting the best team, you know with the recruiting manager as well as our teachers to help us to grow our

help us to grow our learning center in Shenzhen. That the key city that we will focus our efforts on, in terms of centers outside Shanghai. So that's to your first question.

I think, the second answer and question are related. It's basically, our future growth strategy. To be honest, for the coming two quarters, I don't think we will open up a lot of new centers in Shanghai. And outside Shanghai, yes, maybe we will open one or two. But given that, the centers in Shenzhen is newly opened and its pretty big. So, we'll