Ladies and gentlemen, thank you for standing by, and welcome to Sunlands Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. I will now turn the call over to your host today, Yuhua Ye, IR representative. Please go ahead.
Hello, everyone, thank you for joining Sunlands Second Quarter 2023 Earnings Conference Call. The company's financial and operating results were issued in our press release via Newswire services earlier today and are posted online. You can download the earnings press release and sign up for our distribution list by visiting our IR website. Participants on today's call will be our CEO, Mr. Tongbo Liu, and our Financial Representative, Mr. Hangyu Li. I will first read the prepared remarks on behalf of Tongbo, and then Hangyu will discuss the financials in more detail. Following the prepared remarks, Tongbo and Hangyu will be available for the Q&A session. Before we begin, I'd like to remind you of Sunlands safe harbor statement in relation to today's call.
Except for the historical information contained herein, certain of the matters discussed in this conference call are forward-looking statements. These statements are based on current trends, estimates, and projections, therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. For more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. With that, I will re-read Tongbo's prepared remarks on his behalf. Hello, everyone.
Welcome to Sunlands Second Quarter 2023 conference call. Prior to commencing, I would like to kindly remind all attendees that the financial information referenced in this release are presented on a continuing operation basis, all figures are denominate stated in RMB , unless explicitly specified otherwise. In Q2, our business showcased remarkable resilience and steady performance. Our second quarter net revenue has experienced a slight decrease compared to the previous quarter, but exceeded the high end of our guidance range, reaching RMB 526.4 million. Net income experienced a year-over-year increase, reaching RMB 173.9 million in Q2, marking the ninth consecutive quarter of sustaining the profitability for our company.
We still maintain a positive outlook for the upcoming second half of the year. Through proactive assessment of our long-term strategic focus and implementation of our serious endeavors, our pursuit of developing valuable interest courses has continued to yield notable results. Specifically, our revenue in the professional certification, preparation, professional skills and interest courses have grown by 32.7% year-over-year, and we have witnessed a 36.8% increase in new student enrollments in this sector.
The robust market demand has infused us with confidence, and we remain committed to seizing emerging opportunities actively, promoting innovation and improvements to meet the diverse needs of adult learners, and achieving sustained growth and development. Now, let's turn to the performance of our major course programs. We persistently focus on optimizing the growth billing structure, resulting in revenue generated from our post-secondary programs now contributing to less than 30% of our total revenue. We are content with the results of this structural change and remain committed to ongoing optimization in alignment with our strategic objectives. The sector that includes professional certification, preparation, professional skills and interest courses, stands as our primary focus, and it has been performing remarkably well, with a year-over-year revenue growth of over 32.7%.
We are pleased to observe that the revenue contribution from this sector is increasing, and it currently constitutes 64%, 64.6% of our total revenue. Our interest-based programs, in particular, have consistently delivered positive results, driving the year-over-year revenue growth in this sector to an impressive 70%. This success can be attributed to our sharp market sense, readiness to take well calculated risks, and proactive strategic adjustments. In today's societal context, many adults find themselves under both objective pressures and subjective uncertainties. They strive to achieve a flexible workplace and engage in activities they enjoy. Enhancing professional skills or pursuing personal interests through learning, has become one of the ways to alleviate stress and pursue their ideals.
Notably, as indicated by the 2023 Baidu Adult Training Industry White Paper, data released by Baidu underscores a substantial surge in demand for adult interest-driven courses. This is evident through a notable 38% increase in search volume. Our first-hand industry insights at a operational level are in alignment with this trend. Adult education is no longer confined to rigid workplace needs. Instead, it arises from interest-oriented incentives. By offering a series of carefully chosen interest-oriented courses among various segments, we have also reached a broader clientele, laying a strong foundation for our future business endeavors. Our approach to course development follows a well-defined standard of operating procedure or SOP. We begin by carefully selecting relevant topics through first-hand market and learner analysis. Subsequently, we craft high-quality content tailored to specific audience learning needs.
Proceeding full scale launch, small scale trials assess content and the delivery effectiveness. For instance, our Chinese traditional painting course is a direct result of following this SOP. Its growth and progress have been impressive, with a substantial 86% year-over-year increase in revenue. Launched in 2021, this initiative has achieved a noteworthy success, benefiting from our insightful grasp of the post-COVID market dynamics. This course is a representation of classical Chinese art education that has deeply captured people's interest. With a solid foundation of enthusiastic participants, this course appeals to many who have a genuine, like, liking for Chinese traditional painting, and a willingness to refine their aesthetic sensibilities. We continuously extend such efforts in interest-based education. These courses boast a high repeat purchase rate, enhancing operational efficiency and yielding a positive long-term effects on the company's financial performance.
We will continue to utilize insights from learner preferences, and strategically promote related courses, enabling learners to explore a broader range of subjects, of subjects. In conclusion, with our extensive experience and industry recognition in this field over the past decade, we are well positioned to capture a larger market share more swiftly and more effectively. As we move forward, we remain committed to adapting our educational offerings to meet the evolving demands of learners, solidifying our leadership position in the field of adult education. We extend our gratitude for your presence today, and the continuous support you provide. Thank you, and we look forward to your valuable engagement. This concludes Tongbo's prepared remarks. With that, I will turn the call over to our Financial Controller, Hang Yu, to run through our financials.
Thank you, Yuhua. Hello, everyone. I'd like to turn to our second quarter results, which was in line with projections and showed our ongoing efforts to sustainable growth. It was also an excellent quarter in terms of financial performance. Our gross profit margin reached 88.7%, an increase of 5.1 percentage points compared with the same period last year. The operating expenses decreased to RMB 40.1 million or 11.4% year-over-year. Our net income margin increased 12.4 percentage points compared to the same period last year. Looking ahead, we'll keep our commitment to delivering value to our stakeholders and maintaining a competitive edge in the industry. Going forward, we are positive to long-term growth. Our initiatives involve expanding the range of online courses, improving operational efficiency, and providing outstanding services to our valued students.
These strategic measures will enable us to better seize emerging opportunities and enhance our competitiveness within the industry. Now, let me walk you through some of our key financial results for the second quarter of 2023. All comparisons are year-over-year, and all numbers are in RMB , unless otherwise noted. In the second quarter of 2023, net revenues were RMB 526.4 million, a decrease of 5.2% year-over-year. Cost of revenue decreased 34.8% to RMB 59.5 million in the second quarter of 2023, from RMB 91.2 million in the second quarter of 2022.
The decrease was primarily driven by lower compensation expenses, attributed to headcount reduction of teachers and mentors....Gross profit increased zero point seven percent to four hundred and sixty-six point nine million, from four hundred and sixty-three point eight million in the second quarter of twenty twenty-two. In the second quarter of twenty twenty-three, operating expenses were three hundred and eleven million, representing an eleven point four percent decrease from three hundred and fifty-one point two million in the second quarter of twenty twenty-two. Sales and marketing expenses decreased seven point nine percent to two hundred and seventy million in the second quarter of twenty twenty-three, from two hundred and ninety-three million in the second quarter of twenty twenty-two. The decrease was mainly due to lower compensation expenses, attributed to head count reduction of sales and marketing personnel.
General and administrative expenses decreased by 29.1% to RMB 33.1 million in the second quarter of 2023, from RMB 46.6 million in the second quarter of 2022. Product development expenses decreased by 31% to RMB 8 million in the second quarter of 2023, from RMB 11.6 million in the second quarter of 2022. The decrease was mainly due to the lower compensation expenses, attributed to head count reduction of product development personnel. Net income for the second quarter of 2023 was RMB 173.9 million, compared with net income of RMB 114.6 million in the second quarter of 2022. Basic and diluted net income per share was RMB 25.12 in the second quarter of 2023.
As of June 30, 2023, the company had RMB 749.5 million of cash, cash equivalents, and restricted cash, and RMB 63.2 million of short-term investments. As of June 30, 2023, the company had a deferred revenue balance of RMB 1,379.1 million, compared with RMB 1,619.9 million as of December 31, 2022. Capital expenditures were incurred primarily in connection with IT infrastructure equipment and a leasehold improvement necessary to support the company's operations. Capital expenditures were RMB 1 million in the second quarter, compared with RMB 0.3 million in the second quarter of 2022. Now for our outlook.
For the third quarter of 2023, Sunland currently expects net revenues to be between RMB 470 million to RMB 490 million, which would represent a decrease of 17%-18.4% year-over-year. This outlook is based on the current market conditions and reflects the management's current and preliminary estimates of market operating conditions and customer demand, which are all subject to change. With that, I'd like to open up the call to the questions. Operator?
Thank you. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile a Q&A roster. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. Once again, it's star one one if you wish to ask a question. We're showing no question. This will conclude our question and answer session. I would like to turn the conference back over to Yuhua for any closing remarks.
Once again, thank you everyone for joining today's call. We look forward to speaking with you again soon. Good day and good night.
This concludes this conference call. You may now disconnect your line. Thank you.