00:00So how much did your business model change after the crackdown on the ed tech sector or education technology sector in China in 2021?
00:10Actually, that policy gave us time very hard like hell, but indeed it actually helped us.
00:21So when the policy shut down the tutoring center by human, actually it's a very good chance for our AI virtual tutor to boom.
00:33Especially and at the beginning of this year, everybody know DeepSeek, all the parents and all the kids now they understand AI more and they think AI could or perhaps most probably to replace the best human teacher.
00:51Now you're at a point where you're looking to expand the business into the U.S. or you've started expanding into the U.S.
00:57But share or give us an update on how that's going so far.
01:01From the beginning, 11 years before when I started Squirrel AI, our AI center is actually based on, based in U.S.
01:09So our structure and the product, the base is international.
01:16It's very suitable, also suitable for U.S. market.
01:21And I think we want to start it from the math because, you know, the Asian math is good.
01:28We are hoping that we can have more than 3,000 after-school learning centers in U.S.
01:34We've seen Chinese companies or Chinese tech companies in the U.S. face issues.
01:39Thinking about, for instance, ByteDance's TikTok, Huawei are some of the more prominent examples.
01:44You've certainly taken steps to mitigate any concerns by storing data locally, for instance, working with American franchisees.
01:54But is that going to be enough?
01:55And what kind of conversations or have you had any conversations with Washington as well?
01:59Actually, we just started.
02:03We haven't had a conversation with Washington, but we made our own strategy.
02:09That's why we do not enter in the school market.
02:13We do not try to persuade the education district because that is very hard for us.
02:21Why we started from the learning centers, the after-school tutoring centers is, so that is not so sensitive.
02:30I want to ask as well about your investor base because your largest investor or among your largest investors is Jeff Yass.
02:37He's someone who's quite close to Donald Trump or has ties into Donald Trump.
02:40Does that help you at all with any sort of regulatory hurdles you could face?
02:45Yeah, sure.
02:47SAG actually invested us in three rounds all along, like they invest TikTok in three rounds consecutively.
02:57Of course, the relationship with Trump will be a very good thing for us.
03:05So I'm looking very closely how TikTok will do in the next.
03:11If they go through very well, that's very good news for us.
03:14What kind of financials can you share for us in terms of revenue or margins or profit as well?
03:23Last year, our revenue of the distributors reached $300 million.
03:32And our gross margin is 70%.
03:37And I cannot mention the net margin now.
03:42But we will clear it when we prepare to IPO.
03:49And talk to us about that IPO.
03:51What's the timeline?
03:52And as well, what's the venue that you would look at?
03:55The time we prepare to IPO is we want to have at least 200 learning centers in U.S.
04:08So we want to start it maybe next year.
04:11And we also consider whether NASDAQ or Hong Kong stock market, which is better for us.
04:19So we're going to take a look at yours.
04:20So.
04:21And let's go in for that.
04:22Here we go.
04:22So we can take a look at our website.
04:23There we go.
04:24We'll see we're going to do what we're going to do.
04:24We'll see you next time.
04:25And do this.
04:26We'll see you next time.
04:26You're going to get a look at what we're going to do.
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