On December 13th, Xinhua Finance Beijing Electric Power Sonic Song (NASDAQ: QSG) released its unaudited financial results for the first quarter of the 2024 fiscal year (covering the period from July 1st, 2023 to September 30th, 2023). According to financial report data, Quantum Song's operating revenue in the first quarter of fiscal year 2024 reached 869 million yuan, a year-on-year increase of 31.8%. The adjusted net profit in the first quarter was 93.966 million yuan, with both quarterly revenue and adjusted net profit reaching historical highs. In the first quarter of fiscal year 2024, personal online learning service revenue increased by 29.2% year-on-year, reaching 756 million yuan. Among them, personal online interest learning service revenue increased by 293 million yuan year-on-year. It is worth noting that at the end of this quarter, the cumulative registered users of the entire Quantum Song brand exceeded 100 million. According to financial report data, as of September 30, 2023, the cumulative number of registered users reached 103 million, a year-on-year increase of 51.9%.
The growth trend of Quantum Song this quarter remains strong, reflecting the continuous improvement of diversified curriculum system layout and the continuous upgrading of user centered service experience. Founder and Chairman of Quantum Song Group CEO Li Peng stated: Thanks to the significant growth in personal interest courses, our revenue and adjusted net profit reached a historic high this quarter. We focus on further improving course quality and service experience, and organizing influential offline activities to effectively enhance user engagement, increase registered and paid users. We will continue to improve operational efficiency through artificial intelligence technology and remain committed to lifelong learning The mission of improving quality of life is to create value for shareholders and users
Quarterly revenue and adjusted net profit both reached historic highs and entered a long-term growth period
This quarter, Quantum Song's operating revenue and adjusted net profit both reached historic highs, reaching 869 million yuan and 93.966 million yuan respectively, with a year-on-year growth of 31.8% in quarterly revenue, once again verifying the effectiveness of the adult online learning track strategic layout. Quantum Song adheres to the center of adult personal interest learning services, continuously develops courses based on the real needs of users, and creates a diversified curriculum system driven by collaborative development strategies, providing users with lifelong learning services and development opportunities.
The Chinese adult learning market has entered a long-term growth period. According to Frost&Sullivan's "China Adult Learning Market Industry Report" released in September 2023, the size of the Chinese adult learning market is showing a continuous upward trend. In 2022, the market size has reached RMB 576 billion, and it is expected to reach RMB 1.04 trillion by 2027, with a compound growth rate of 12.6%.
Quantum Song continuously optimizes its business structure, reduces its dependence on single channel revenue, and makes the distribution of various businesses in the group more balanced and reasonable, reflecting its systematic and collaborative combat capabilities. At the same time, Quantum Song has taken the lead in updating and upgrading internal infrastructure such as AI and big data, and has increased deployment in data security systems, intelligent compliance and internal control systems, and intelligent chemist service platforms. With efficient market response and execution capabilities, it maintains a good competitive situation in the market and is fully prepared for the long-term growth period of entering the Chinese adult learning market.
Accumulated registered users exceeding 100 million, determined to create value for users
In September 2023, the Ministry of Education issued the "Key Tasks for Building a Learning Society", which requires mobilizing all available learning resources in society, connecting various links of family education, school education, and social education, building a networked, digital, personalized, and lifelong education system, and building a lifelong learning service system that everyone can learn, can learn everywhere, and can learn at all times. From the perspective of market size growth rate and national policies, it can be seen that the adult learning market in China has enormous development potential.
Quantum Song has further consolidated its strength this quarter, firmly committed to the rapidly growing adult learning track, and continuously meets the learning needs of users. After three quarters of listing on NASDAQ in the United States on January 25, 2023, Quantum Song Group has once again received good news, with a cumulative registered user count of over 100 million under its entire brand. According to financial report data, as of September 30, 2023, the cumulative number of registered users of Quantum Song reached 103 million, a year-on-year increase of 51.9%.
Quantum Song has always believed that content value is the core of online learning enterprises. It has established a scientific research and development process, cutting-edge curriculum system, and a professional lecturer team by gathering its own course research strength and external experts and teachers. While ensuring high-quality content, it also takes into account the simplicity of the content. Through the analysis of specific cases, students can efficiently understand the application scenarios and significance of knowledge. In addition, Quantum Song actively caters to the dynamic needs of students' interest in learning, keeping the course fresh and attractive, and helping students acquire the latest knowledge and skills.
In terms of learning services, Quantum Song continuously innovates and enhances user experience and engagement through various offline services. As a subsidiary of the group, Shuzhen held the "Shuzhen Cup" 2023 4th Asia Pacific Student Memory Championship& Reg; Multiple offline events such as the Beijing regional competition, helping students apply and showcase their knowledge in a contextualized manner; The Qianchi School, a subsidiary of the group, has held multiple student exchange activities for middle-aged and elderly users in areas such as calligraphy, piano, and standing posts, integrating online learning and offline communication to enhance users' sense of gain.
Exploring new opportunities in the silver economy to meet the interest and learning needs of middle-aged and elderly people
With the acceleration of an aging society, the market potential of the silver haired economy is becoming increasingly prominent. CIC Zhuoshi Consulting released the "Blue Book of the Silver haired Economy", which shows that the total population of China has experienced a net decrease for the first time in 2022, marking China's entry into a period of negative population growth. As of 2020, the population of people aged 65 and above in China has reached about 200 million. Starting from 2022, China will enter an accelerated stage of aging. It is expected that by 2040, the proportion of people aged 65 and above in the total population will exceed 26%, and the continuous growth of the elderly population will also promote the rapid development of the silver economy. It is expected that by 2035, the scale of the silver economy will be 19.1 trillion yuan, accounting for 27.8% of total consumption.
In the context of the new era, the "elderly" group not only pursues material conditions and physical health, but also shows strong spiritual and cultural needs. They aspire to enrich their spiritual world, enhance their self-worth, and expand their social circle by participating in interest learning. According to Blackboard Insight, the market size of interest education for middle-aged and elderly people in China has exceeded 30 billion in 2023. In addition, the "Report on the Development of China's Elderly Entertainment Industry (2020)" published by the 60th Research Institute predicts that by 2050, the size of China's elderly education market will exceed 100 billion yuan.
Based on the rise of the silver haired economy and the surge in interest and learning needs of middle-aged and elderly people, the brand Qianchi School under Quantum Song actively explores the interests, needs, and learning abilities of middle-aged and elderly people, and provides personalized interest courses that are suitable for aging. Through live streaming, community, and online and offline integration (OMO) teaching methods, it provides refined, professional, and diversified teaching services for middle-aged and elderly people, Help middle-aged and elderly people enrich their spiritual life, enhance their sense of value, happiness, and achievement. At the same time, Qianchi School's self-developed aging friendly intelligent learning tool effectively enhances the flexibility and convenience of learning, allowing elderly people to learn at home or in their chosen environment, while promoting their exposure and use of new technologies.
Quantum Song actively explores the field of "interest learning" in the silver haired economy, which not only conforms to policy guidance but also has broad market prospects. In the future, Quantum Song will continue to focus on the development of personal interests in the field of online learning. By continuously deepening the underlying technology, improving the digital and intelligent construction of the platform, expanding the service scope of diversified course systems, providing industry-leading high-quality online learning services for users, and helping to promote the high-quality development of the Chinese adult online learning market.