Q2 2020 JOYY Inc Earnings Call

[music].

Ladies and gentlemen, thank you standing by and welcome to the Julie Inc.'s second quarter 2020 earnings call.

At this time, all participants are going up listen only mode.

After managements prepared remarks, they will be a question answer session.

Please note this event is being recorded.

I'd now like to hand, the conference over to your host today Mr. Matthew Zhao the company's general manager of Investor Relations. Please go ahead and TV.

Thank you operator, good morning, good evening, everyone welcome to enjoy second quarter.

No principal joining us today, our future babysitting paired up an appeal joint.

So if they are thinking an appeal.

What today's call management with versus the wider review.

And then we will come back into a dozen.

The second quarter blended rent Ethernet, who is now one topic. This conference call Oh Winnable might argue about why why don't I.

A replay of todays call will also be a beautiful model website in people.

Before we continue I refer you to other public Freeman no earnings that's really retail tied to these call that's where we will make forward looking statement.

Finally, I know that and that's how the west facing all figures mentioned during this conference call I either.

I'll now turn the call over to our chairman and CEO Mr. Babysitting. Please go ahead.

Thank you Miss it.

Doug alcohol, Glenn Mcdowell RDR lenient, yes, you do the monthly.

Hello, everyone welcome call second quarter 2020 pretty cool.

Well, we thought jobs.

And keep it will grow.

We will do that.

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Does that deal or maybe a year.

Yeah well.

She does that mean, so we've been really well.

Before we jump into details about the business development in order to by everyone with a better picture of our quarterly performance.

I'd like to remind you that starting from this quarter, we have deconsolidate, we our financial results I listed them as discontinued operations, such deconsolidation applies to both coming quarter and historical comparative to it.

Okay.

Could you see the engines that we couldn't sell I know its Google will need very easily.

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So dollar doesn't begin went beyond that we've done.

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In light of the rapidly changing market dynamics due to the cold in 19 and recent geopolitical uncertainty we have been actively reviewing our global to energy strategy.

Our conclusion by threefold first we remain committed to global expansion.

Although our business in certain countries experienced some setbacks due to local regulatory changes, we believe such that back a temporary as we are convinced that the movement was worldwide connectivity is irresistible.

Not only does pull the decision between streamlining of information exchange emergence of innovative technology and replication of successful business models across your product the weapons under Weve. It also unleash the power of Internet to boost productivity I late living standards.

We are at the forefront of this conversation weight and we intend to buy that I'll definitely and publicly.

For example to legalize our global licensing platform, we plan to expand to more regions.

Further reduced the Latam on any single market.

As legalized user base expands we will remain focused on developing a highly integrated ecosystem for social and entertainment light sweet.

We believe Eagle life has the potential to generally for time as much revenue as why like over the next few years.

Beyond the Doj down 10 through settlements that we want to use to begin with.

We'll move guys tend to be I'm going to do down gross anyone here and the dollar moved up we'll move down.

D. These are going down we don't want me to Google made all hook and when we look to broker regardless of who choose our filing about re elsewhere.

Eagle, who called in this group to be done all globally. So do you see margin driven you collect number of new book well machine into our transition will double major boxes of legal I believe Amazon or maybe equal growth trends also lead times for those of you. How you will be Steve will keep going down.

One of the root cause I know, we're doing well I would assume please.

Turning to open new I mean look citizen.

Secondly, we continue to advance our local operations.

In response to growing geopolitical tensions and to ensure our full compliance with changing regulations in terms of content products and operation we proactively engaged in frequent dialogue with various local authorities in every one of the geographic regions we operate.

Because people like is headquartered in Singapore.

Testing under the Singapore and jurisdiction since inception.

Thats also maintained its operation independently of China, even up our completion of this acquisition in 2019.

Going forward, we plan to high more local employees and boost their contribution to Beagle.

As we leverage our network of over 30 localized operations around the world the breadth and depth of our global operation increases and our operational and financial performance incentives Accordingly.

Our two centralized cells introduces a new loan production enhancement. So is most developed within the million mono or maintenance. In addition, we launched a new Jan will onto these unworthy of future who during the downturn has died down what else would have the only room soda. This hellgate lines into adulthood function really I will.

Notices that dribble advantage in Usiminas. If you will receive include significant advances we will go down while we're not looking towards dribbled into.

Good quality has held on co workers, we reward nathanial on.

The legal were Monday, we look low growth.

Although the water over 300, plus a woman key can begin Thomas with you realize these were unchanged over 3 billion I don't hesitate on reversal. One also you you can also with us here going on them.

Thirdly, we firmly anchored our competitive advantage in video content and video services.

We believe that video has become the mainstream media will disseminating information over the internet.

We're also convinced that for the coming generations of Internet usage video will become the dominant format for social networking content production and content consumption.

Therefore, we tend to diversify our monetization capability.

Component in Lightstream shall continue on video based information sharing.

Furthermore, we plan to enhance our monetization capability in areas, including of advertisement and E Commerce.

As a precursor to our expansion into ecommerce we made a strategic investment income return light this quarter.

We believe that we will be able to generate recurring revenue from lightning advertising and E commerce as our global user base goals.

With that things are going to order, but yes.

Yeah, our digital yield let me review them. So it hasn't changed over they don't want local guys sense regarding what the new I will leave the Jonathan one clinical how they're going to guarantee a good deal for ending clinical data.

We'll go will impact the harder to begin London can join can't hold on helping reduce Eagle Genworth review the leader.

So there is opening.

He joins our income.

Brian beginning Cotwo laser are going we'll have anybody go lower year on dollars recall, our products with the enhancing yet see another clinical surveillance Ramon overall capital on the under adjustment Brazil.

We are larger than normal role. He will then those no matter what was unionized and the most net.

Okay equaled our general operating lease.

Nilandron and also Donald Lu, who Brazil will not have usually you today that will generate good what's behind that.

Thank goodness Citygrid and Mandela review.

Hello, and robots, you've done they add beagle autohome for big on without layers of the yen somebody me as BJ. The Dalia, John Hodulik Janssen will be assuming no further down the demands I do not really sure about should again comp.

Executing the three aforementioned both strategies, we achieved solid operational performance during the second quarter of 2020.

As a result of our extensive global Hudson and localized operations, we are well positioned.

To help people around the world to combat Colby 19.

In May we launched a 24 hour nonstop global charity concert online.

Harnessing the strength of global Eagle Global community the competition more than 100 by Chimicles in over 20 countries a truck to close to 4 million views around the world and raised more than $100000 of formation for the World Health organization called in 19 Solidarity response farm.

An event on special worldwide scale is made possible only through what should we be global social platform like looked like legal.

Also extended by Eagles meet competition upward addition, and localization capabilities.

Besides the online charity concert, we also join hands with likely ports around the world to launch a series of online activity to bring comfort and joint while uses in meat.

For example to help local communities safe and healthy at home, we launched the stay at Eagle campaign that features informational seminars by healthcare professionals and attainment performance by local music DJ and what our sessions attended in to that.

Well look forward can you could use within reason to be Vodafone unseasonal as that she is an opportunity within the government doesn't give you two dollar temecula nuclear power.

Interview uncertainty will do mile by new completed in Q2 and contract as a warm in the end result, Woody woodall by vendor transcoding alleviate mortgage refinance the yen.

Good luck of Islam, Inotera Eagle Gibraltar wholly owned resumed our.

By vendors in the battle commodity Abbas barrel, our studio we view, so again times with mobile Denso Hello.

Your final due to declines waters of Google.

Legalizing I had a usual amelia through today no fundamental reason on that needs to be union.

These new now that we use.

Changeover.

70 route but given all these new high overall coverage, we run a dividend income equalize fully over three more years human human Lula.

Our ability to serve the various local communities around the world not only enhance our brand recognition in local markets, but also boost.

Operating and financial results.

Despite the uncertainty and challenging macro environment during the second quarter. We grew our net revenues by 36.3% year over year to RMB 5.84 billion.

In particular ego supply chain revenues grew by 158.8% year over year to RMB 2.95 billion contributing more than half of the group's total lights can you revenues for the first time Abba.

Eagle life mobile and they use increased by 41.3% year over year, and 10% quarter over quarter to 29.4 million is paying user base also grew at that with our efforts in cultivating usage habits on the platform.

On slide enrollment season live here norbords onto your work over Europe pursue adult little users to low to mid teen which will be the lines of the buildup.

I agree dormancy low volatility barnaby's at we will likely use so three important bunol noncore Williams will generally were chosen to using oral solution.

So he knew our nuclear musings on utilize new highs.

No versus adults with you when equal we rely upon a bolus insulin use CE marks another new lease up.

Slides, we live mobile junior lien cans as we go downhole pump equal represent one of the work with analysts legal Johnson given the recent within them.

In addition, Eagle life healthy growth. It's also equitable cloud diligent effort in nurturing users have been short use of lightning at the medium for both entertainment and virtualization.

During the quarter for example, we optimize our switch would be captured future bar to continuously intensified eagle life highly engaging and active nature.

Our enables users to and hope to share updates with one another in an increasingly prudently manner.

As a result over 50% of deal values at accept bar during the second quarter.

In addition to live streaming showrooms Hobart asynchronous.

Friend Circle each be go live use Apollo 11 host on average representing a significant increase over the previous quarter.

Well the Tysabri live on NIM will no doubt equally regional dialogue like tier.

You also mentioned in the Vietnam strategically legal and I'll hop back on to 20 warmer in May we go reduction on liquidity remains of new Mazzotta, Florida goodness likely opens new launch in on the medieval IMU as announced these new download back in the past building up while we do not know that munis listed in our other.

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Glad to see overall put on Iran likely that lower to Bermuda, Let me answer Tom some tissue box system now. Thank you do all of that may be open foreseeable filings, but.

On the short form video from we focused our efforts on cultivating likely global at the system.

Rectifying is content offering we're finding its product features and synchronizing expansions with local market characteristics.

As a result like his total EMEA use search by 86.2% year over year, and 14.2% quarter over quarter to 150.3 million in the period.

We also continued like him geographical expansion by.

Depending if we call key market, such as Russia and Indonesia.

Notably like he told me you in Russia, almost doubled year over year in the period.

Very little immediately become youll begin with a plan put up.

Like the high clearly you've been working on new Dalfampridine, Fiat Chrysler diluting endometrial Q, we really like to use it is launching microbiome than.

Uhhuh Ergo sound, a little clustered ONTAP PDN recruits.

We will give us on rent that likely heavier than normal intensive growth may conkers oncology with nuclear retirements within 100 Museum.

Just a loan.

Programs that are timing useful.

Movements with all of GPU highly visible long ago goodness knows as soon as to dollar likely to look to doing award.

Your votto twond of oxygen they sold call cohort overall down use of the ones person.

As highlighted brand inputs becomes increasingly the basis and as added dissipate expense continuously we are actively exploring various innovative marketing initiatives to help with penetrate into younger generation.

We made for example, like cooperated with a series of passion and cosmetics, Randy Bhatia launch automatic short form video challenge for Beauty Festival.

Leveraging our state of art technology, we developed specialty pack templates and customized interactive gameplay features for the campaign to boost its user participation and enthusiasm.

As a result, the event struck a cycle nerve in height, a large number of below Russian uses the voluntary really create and share shoppable videos.

And generated more than 200 million cumulative cumulative leaders on the platform.

Making it a perfect stage or cost during our partners rents exposure to the local market.

Our CLS is well into the portfolio with media. Our goal you ROI based on September achieve selling a lot of nuclear.

Our diluted allow ourselves law nuseal allowances will further during the year over year.

More about driven reinventing by Q2 and.

Hi, good handle in orders can be done year to metro adults. So July has lots of other units in them.

A few types.

Launch late on line haul answer yes.

Inherent advantages not need console with our new yearly.

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Good on Keegan enable we fully DCT over good deal velocity of low to no no significant view.

CGM one year from Johnson will remain encouraging one dollarsone surge.

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Due to Taiwan determine what we'd like you.

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Good fuel purchases or team with diesel, but hardly do dual sourcing and bullet on enrollment overall quarter, So don't yet.

Global among all three major wins anyone achievements, we usually don't gives us room nights aluminum.

Now, let me share some updates on Congo.

By focusing on local month addition, delinquencies is favorable ROI, we delivered significant revenue growth in the period.

Okay, and we use also remains relatively stable at 31.7 million.

As we continue to explore different methods of also mean habilis long term user value, we were able to further enhance its social nature strengthened its user connection and develop additional contacts fall user interactions.

Meanwhile to cater to the younger generations preferences, we have expanded its content offerings with comedy central and music performances.

In addition, we continue to update how gross product features with cutting edge technology.

For example by integrating data analysis with everything we optimized how those contract recommendation system. So that it can match content with individual users interest more precisely.

Moreover, our user data analytics.

Let us to upgrade a number of features in Chicago, such a party chat room and user groups in order to intense music gaming simulate social interaction improved user community and blue penetration intense hobbles, social nature and increased user stickiness.

Phil who assuming the quality of women will put on the Korigan zero will enable even do that when they use the low even not either.

Just on that because we won't develop new Doug.

Even if you're working with them and I go do it again.

He was later once you get more previously when loan president role again, because now we did in doesn't really quickly now here's the words anymore. It becomes rollout we idled go again these group, which has hung rollout.

The plug and of course, it affecting demand coinciding immediately or new business income delivery, Oregon isn't versus really again. We appreciate your pools materials will have used within a single were 100 or given year, Taiwan there may be.

Sunoco Baltimore sort of build rate, we're producing these images on the realized in Q4 hundred on whom homeownership.

Last but not the least on the domestic from we fortified our leadership in China's lysine entertainment industry and expanded I'll, let you offered during the quarter.

After our last seen in celebrity variety show.

Idle Friday became a smash hit upon launch is continues to attract additional viewers in the second quarter.

During upon our success with idle Friday and other variety shows we launched a new product, but let's see.

Similar to idle Friday, let things had waited a virtual stage for professional musicians to kakap. Their performance is online while engaging in real time online tracks with the bank.

It is well suited to facilitate social interactions among users host and debt.

As a competition of music Palin celebrity, Tom and life reduction crude, especially attractive to audiences. We plan to replicate its formula for success to other future endeavors.

Well below our lives if you don't goodwill diluted subliminal physical warmers easy slowdown before you do build announced in May.

We refer you to Mississippi is one of digital to us although crude oil neutralizes the growth has indeed do not see enrollment digital technology leaders volume.

We'll move the rollout John you've proven slightly less antigens seasonal cellular further lunches no. We're not gonna do use on digital who contribute launching new who don't really over the dilo signed year to be Duncan will call due to challenging village. We put a delivered on that gives you a warm.

So on digital and social appliances lenders new.

To ensure a steady flow opinion lighting and content Mobileye lives. We further expanded a variety of our content offerings during the second quarter.

For example, we introduced customized support initiatives to help high quality celebrities launched their own personalized slightly channels.

Bucketed, especially incentives has led to the formation of several partnership with professional chesler on while alike.

Top Chuck Berry farm, particularly in features such as a national chest Academy and now in Bicuar by line users to participate in online games, while providing play by play professional narrative from light Street.

As user in treatment with the specialty type of glycerine content growth. So that the popularity of our chest rated by assuming at a rapid pace.

On slide down that's really good and new business acquisition, along when you do not as geography out more broadly about a bump up the legal warm welcome. So its seasonally you don't really exciting and seasonal flu season growth.

These items not legal premium video will remain dump onsite untenable by running look to see women.

Okay, and still be filled with numerous new physicians.

Real quick substantially reducing our San Diego Gevokizumab.

In addition, as we advance each of our businesses and whose value. We're always looking for ways to increase returns to our shareholders. This quarter. Our board of directors approved a quarterly dividend policy for the next three years.

On the this policy quarterly dividend will be set at approximately $25 million.

Fiscal quarter.

As always we appreciate in value the long term support from our shareholders now we're always devoted to maximizing the engine flush out dollars.

So hopefully we'll begin to formulate borsa genome snow on the devaluation initially a goodly on portela year. This yen tissues, leading global solving volumes in diluted seeming to June one building on July one.

Diluted also the Italian merchants want using the injunction enrollment video in last year to analogy and move into a warm winter continue hunting remarks, again don't I will note, which as you joined the revised downward luxury goods, regardless of these international funny unreliable lung function will move quarter again last year.

Hold on value within is on the usage of nurturing Saddam is not.

In summary, we firmly upheld our independent growth strategy during the quarter.

We upgraded our platforms localized operation and dropped oil for experiences to people around the world.

Despite the macroeconomic uncertainty or 519, we remain confident in our business models underlying strength and favorable outlook.

Our long term business plan remains intact.

We continue to work tirelessly to build our globalizing and shouldn't be opportunistic.

We remain fully committed facility, how users delivering shareholder value and constructing a truly global video based social media platform for all.

That concludes debits prepared remarks.

Now as Joy CFO I will talk about the financial results.

Please be noted that the financial information and non-GAAP financial information disclosed in our second quarter earnings press release is presented on a continuing operations basis.

Otherwise, we simply stated.

After the deconsolidation of pulling out the company accounts for our investment in we are at an equity method investments and apply the equity method, becoming one quarter rias to enable us to provide financial disclosures independent of the reporting schedule of Julio.

During the second quarter of 2020, we maintain our strong momentum and delivered robust financial and operating.

Pharmacies.

Our total net revenues for the second quarter increased by 36.3% year over year to RMB 5.84 billion.

Exceeding both the high end of our previous guidance range and street consensus.

In particular, our lashing revenues for the second quarter increased by 40.1% year over year to RMB 5.61 billion.

Driven by lighting revenues growth from Eagle segment.

Other revenues in the second quarter decreased by 18% to RMB 20 32.3 million.

Primarily due to the decrease in other revenues the why why segment.

Cost of revenues for the second quarter increased by 50.8% year over year to RMB 3.77 billion.

Revenue sharing fees and content costs increased 282.6 billion in a second quarter from RMB 1.79 billion in the same period of 2019.

This was in line with the increase through machine revenues.

Bandwidth cost increased RMB 280.7 million from RMB 228.1 billion in the same period of 2019.

The overseas user base and time spent continue to expense following the consolidation of Eagle.

Gross profit for the second quarter increased by 16% year over year to RMB 2.7 billion.

Gross margin in the second quarter of 2020 decreased to 25.5% from 41.7% in the same period of 2019.

The gross margin contraction was primarily caused by the fact that Eagle segment at lower block margin, but contributed significantly greater portion of net revenues in the second quarter of 20 point compared with same period last year.

Operating expenses for the second quarter increase to RMB 2.02 billion from on the 1.79 billion in the same period 2019.

Sales marketing expenses decreased on be not only 9.8 million in a period from RMB 979.9 billion in attempts are up 29.

Primarily due to the company less spending in sales marketing initiatives in overseas markets due to the corporate 19.

R&D expenses for the second quarter increase to RMB 693.5 million from RMB 550 million in a period of 2019.

Mostly due to the increasing headcount and investment in Canada equipment as part of the company's effort, which transit research and development capabilities.

Our GAAP operating income for the second quarter was RMB 95.2 million.

Compared to RMB 4.3 million in the same period of 2019.

Operating margin for the second quarter increased to 1.6% from 0.1% in the prior period.

Primarily due to narrowly operation loss optical segment.

Our non-GAAP operating income for the second quarter, which exclude share based compensation expenses.

Amortization of intangible assets from business acquisition.

As well as impairment of goodwill and investment gain on disposal of subsidiary and business increased by 24.6% to on beef finally, a $9.3 million from RMB 408.7 million in the same period of 2019.

Our non-GAAP operating margin for the second quarter was 8.7% compared to 9.5% in the same period of 2019.

GAAP net income from continuing operations attributable to controlling inches of jogging for the second quarter of 2020 was RMB 619.4 million.

Compared to net loss RMB 6.1 billion in the same period of 2019.

Net margin was 10.6% in a second quarter of 2020.

Compared to negative 4.1% in a corresponding period of 2019.

Mainly due to the income from fab several change in investment.

Non-GAAP net income from continuing operations attributable to controlling interest of joining increased by 38.2% to RMB $493.6 million from RMB 357 million in the same period of 2019.

Non-GAAP net margin increased to 8.5% in the second quarter of 2020 from 8.2% in the same period of 2018.

Diluted net income from continuing operations per ATM in the second quarter of 2020 was RMB 7.39 compared to diluted net loss from continuing operations per ATM RMB 4.28 in the same period of 2019.

Non-GAAP diluted net income from continuing operations EPS increased by 27.2%.

On the five point by seven from RMB 4.28 in the same period of 2019.

In addition, as David mentioned in his prepared remarks.

We are pleased to report that our board of directors as approved a quality dividend policy for the next few years.

Under the policy quarterly dividends will be set at approximately $25 million to each fiscal quarter.

Accordingly, we will be distributing dividends of Yosprala drew upon three one per ATM in a second quarter of 20 point.

Looking forward for the third quarter of 20.8.

We expect our net revenues to be between on the 5.85 billion and RMB 6 billion.

Excluding the revenue contributions will now in the same period of last year, representing a year over year increase between 26.7% to 29.9.

We currently have limited visibility around the probably 19 academics long term impact and geopolitical uncertainties on our business and the market, which we operate.

Therefore, this forecast only reflect our current and preliminary views on the market and operational conditions, which are subject to change.

That concludes our have remarks.

Operator, we would now like to open up the coal to question.

Thank you, ladies and gentlemen, they will now begin the question and answer session.

I'd like to ask a question. Please press star one on your Telesites.

CNN to be announce.

So the convenience of everyone on the call. Please ask your final question at a time.

If you wish to ask questions. Please rejoin the queue.

So when asking your question. Please state your question in Chinese says.

Then immediately repeat your question.

Thank you.

Our first question comes from Thomas Chong from Jefferies. Please go ahead.

Now somehow affect your.

I wanted to UN go CP goal that you much housing the when your line open team.

Going to your restaurant.

Obama FICO last I stop on land that you got to.

How about ultrasonic up.

What's that can go emerging market likely funds on that but you got momentum.

You are going to see that is that when you saw Joseph Tung biological competitive landscape like diary like CJ quite Toussaint Eagle Bank, while global warming the MOCON Pico light when like Keala.

We like that.

Hi, Thanks.

Measurement for taking my questions.

Congratulations on the strong results Fabio.

Hello.

My first question is about.

Second half outlook Bobby.

In particular, how we should think about that business trend in developed and emerging market in the second half.

And my second question about the competitive landscape, how should we think about our competitive position.

Like key and be go live in the upcoming year. Thank you.

I think ecommerce this has been I'll, let me address the question. So regarding the second half performance focus of legal we think.

Pico is well balanced across different regions.

And we if you look at the second quarter performance is 148.

Thank you all year growth, which is very tremendous we expect that growth momentum continues. So we will raise up our full year guidance for Eagles total revenue.

Which previously we communicate to the market is around 65, 70% beyond your growth right now judging from the recent performance and taking into account of the labor situation across the world. We think people can generate somewhere close to 100% revenue growth.

On a young a basis for 2020 and that apples with obviously is driven by increased expansion to develop market and also the existing market as well so that's about the.

And also performance guidance for Eagle for the second half and full year.

And then in terms of competitive landscape.

Again, legalize has achieved up potential of great growth in user and revenue. We think we don't see any other competitors will be realized in all the key market that operate and we remain very focused on driving our revenue from the four key markets that equalized operates as explained before that include.

Organization market in the Middle East include.

North America, and Western Europe, I will remain very committed for the diversify original exposure.

For the likely business as you can see like is and the you had reached $150 million in the second quarter.

Given all the geopolitical risk.

We have.

Adopt our various strategy different markets. Our first we're cooperating with various local government and then we also enhancing our local operations to better yields for the local environment. So we expect like it.

Performance will continue to grow and Meanwhile, we're also ramping up like chief financial.

Capability as well so we will enhance independent board and the second have often see at William has likely monetization efforts in the key market as well.

Thank you.

Our next question comes from GE when sang from Citi. Please go ahead.

Hey, coincide social Holocaust, if it also hit a year to alter their their lunch share tier social franchise.

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So it's always hard corrupt types Detroit shifts touching showed a chip altair source.

Josh helped our second call or talk about recovery occurs shifts from the answer to now for your time share hotels, which will assist share later.

Our share or finish up.

Thanks last month for taking my question. Congrats on the rest solid results first question, let's concentrate a recording of assessed registry will notice some markets have some uncertainty for whole where way of trust. Our expansion strategy. For example, key market in terms of what you saw a potential monetization.

Second pillar of our cash usage when or if you will have a pound at a cash reserve operations, especially on purpose Soi cave.

800 apparel manager, Florida.

So by the way also notice there have our record total core a safe product towards yes, so apart from that whole work over how would you consider.

Cash cash usage of course, Hello, when you consider ramp up the.

She is shopping there or where you are considered to develop new product ordered by away. Thank you.

Thank you let me address those questions in terms of our expansion strategy for Eagle as I've laid out we remain very focused more competition and we want to diversify our original exposure.

To accommodate them of the geopolitical that so we continue to strengthen our impressive existing market within southeast Asia Middle East North.

North America, what to Europe, and Japan Korea, I will also for the expense other budgets are thanks to our global appreciably over 30 operated around the world. So thats about the.

Over to expansion strategy, our intent our cash position, we do have our cash onshore and offshore drilling off that we sell a portion of the pressure to tencent.

Thats why we in order to maximize shareholder value, we have announced.

Two year regular dividend payout as a way to return some of those value to shareholders.

Since our visit mentioned, we will continue to focus our efforts all assuming and so on video argues acquisition.

So from M&A, we don't foresee that we will do big scale M&A.

Thus far we want to organically grow our business.

On a global scale.

Pressure.

A question comes from Daniel Chan from JP Morgan. Please go ahead.

Our according to our cautionary it you had challenging.

Hello, NTT versus a Goldman typically to attribute cigarettes have also can be dollar balance as Joe. So when you guys have actually also launches that comes out.

They are going to require the newer lido and teachers are seen our initial launches are challenging woman, such having said that occur even timing shall halfway.

Okay, DMR bulk was to grow.

Hundreds of people into the weight activity to the Mardi Dier cheese.

Thank you management and congrats on a very strong quarter. My first question based on the.

The gross growth. So this quarter people actually go by close to 50% waste what are the major growth countries in such a strong growth in the second wise on the.

Margin outlook. So previously recorded a kind of a bicycle even by year end is any update on that and how should we look at a peak also of course, rather than trying the next few quarters. Thank you.

I think it anyway, let me address the questions.

First one is regarding the driver of the tremendous books Opdivo I think it continues to be very strong across all divisions. We operate that includes southeast Asia Middle East and also developed market given markets as a potential revenue continue to be very strong.

And we expect going forward the revenue contribution from all those market will be.

We'll be driving the performance will be go lives that's while as does that we based our guidance for full year performance of the will lives.

For the breakeven point.

That remains to be the bank as we communicated before on the single month basis by end of this year in the second half the Beagle as in total for the treatment will be breakeven our thanks to the.

Managed revenue growth and operating leverage across many segments.

For the gross margins can I think that will be balloting stable.

Before we go overseas because the main cost of goods item, our revenue sharing which we foresee to the stable anda for the bandwidth upwards of bandwidth and as well as dependent channel cost, we expect to be relatively stable for the next one or two quarters.

Yes.

Yes.

Our next question comes from Alex.

Morgan Stanley. Please go ahead.

On its own concentrate our holiday yes.

On T. cell when your job like key since IPO sand.

Yes.

Got it.

Tony Ti dollars Cheniere Banco de revenue guidance way told by introducing without cecity it all by the by.

And when council Lightspeed, Santida, guys for South where likely Sensata anyone you, Jason Biegel latter won't payroll for tank car coordinated from call it by shipping.

Also real quickly it's helpful. So sensitive walking high sorry, Roberto Cavalli.

Okay got currency to highlight the revenue forecasts show so we're still quite be.

We go Lucky outside I thought you said.

Steve on it jago in detail.

25 cents, sorry, you weigh on dog courtyards, Archie two thoughts and then when you finish from Hong.

Oh children's soy selling essentially all Mayo Sanjay Cardona animal.

So to answer your question.

Hello.

All four days for your it always supercilious away. So you go fix on got us okay.

I'll translate my question.

My first question as related to the progress off like a monetization.

Yes.

You have revised up.

Local revenue guidance, 200% this year how much of this is driven by like Jay and I would like he has about five times to EMEA you slice off peak of life. If we took reference of China situation short video makes much more by streaming revenue. It then.

Youre live streaming platforms. So how are you seeing the potential for like is monetization scale comparative Eagle life in the next few years my.

A question is related.

Too.

At the post cover situation.

Any user metrics you can share.

After the locked down is over our users still very active thank you very much.

Hi, guys. Let me address the question first regarding the progress of the monetization of likely.

As we explained to me, but before we look within 10% of vivo coming online this year, but right now because we raised.

Revenue forecasts for Beagle as a total so I'd like his contribution into the percentage will be less than 10 cents, but in general like heat amounted to on the way. So we 14 like it W. Ominously towards the second half with year will ramp up.

And you asked about the potential for liking.

Future messaging, we do think.

As you mentioned that the children video can incorporate a lot of lighting features and has high potential for monetization.

In the middle loan on reducing like you can.

Pre another eagle life scale, or even bigger than that but I will take time. So I think this year. Our focus is to we're still grow the likely user base and then convert part of that users to license to realize the the close weve bulk machine.

One caveat is that each with the recent Indian government banning of the Twentyth App Nike's I mean, you in India will be impacted.

In the third quarter, but as I mentioned to invested before signing on earlier. This year, we strategists strategically have we shipped to focus on India to other markets. So.

We have purposely reduced the sales marketing spending India.

To better ROI vision.

Equally other.

Above market and emerging markets. So.

Given our India users will be impacted this does not impact the overall strategy and monetization for Nike.

Our second questions regarding the post Koby 90 situation we are seeing.

Some countries are returning to kind of normal.

Post night, Coty, 19 situation and Luckily, we see that some of the uses that are attractive in the coming 19 decent they remain on eagle unlikely platform. So even after Carbonite has gone on other use would have formed the habit of viewing online entertainment.

Machine shop in shops video content and they remain to be on our platform and Thats. Why we are confident even other communities will be able to drive the user base and monetization in the areas that we are not impacted by the regulations. Thank you.

Our next question comes from lays Shang from Bank of America Merrill Lynch. Please go ahead.

Oh, Hi, Glenn is on track on how confident are talking that Pico there yet.

Our eagle on key for us out when you've got to show some interesting exceeded our covenant the hot weather.

Wow wide I'd say.

Thanks, John.

Thanks internally.

Element, that's not menu Armenia now flat.

Okay, Amcor Sag mill site.

Hi, guys.

Yes, it would seem that you could be out flat all highly complementary dockland onshore.

Oh into Delaware Basin.

So let me circle like that.

Yes.

Uh huh.

Don't forget that go.

Go one glass audio AMEA that busy mayalito this year to get home shinsei sounds without docs glenys entail among all adults we actually its outages. This year's Oh sure Mail you got some oh it talks about you got some at all at the site.

I can question about all other let's step to your mentioned that backlog.

Well why why.

Can you give us more color on the expansion in our key encounter in second half and attentive trends, especially considering.

As.

You asked and.

Second the let alone.

I'll walk through no fault that Redmayne shares.

Oh well thank you.

Yes.

Absolutely I will let me address the questions. So first regarding potential for four times, but while alive overseas, we remain to be very competent and the forecast I just mentioned for this year egos revenue growth already take into account outcome of the uncertainties, resulting from coping 19 geopolitical risk.

Some of the key markets I think we remain to be focused as I said in those two markets, where we are very strong already included in southeast Asia, and middle East and including those areas that are growing at a much possibly that includes.

A couple of market includes North America, Japan, Korea, Australia, New Zealand and some of the what the group countries.

Exactly which accounted present the largest opportunity.

I don't think we need to rely on a single market. We track the data on a quarterly basis. The data that has shown across all those which is all very promising. So I think that is the result of our local operations.

Global brands and close relationship with some of the local evaluation. So we remain to be confident even on the some of the geopolitical risk we will it be able to capture those opportunities going forward to create more times below last field.

In terms of the.

The book of planned for the Venetian deal as you all that's on the news that transcended urging the.

Consolidation of up we are and W.

We will.

After the sale of the shares.

The two have around 60% opt to shut down so we will observe the future consolidation plan under contract with us, we and OEM and with the will benefit from any potential synergies coming out of those transactions and we were disposed to shed at the right time for the by pipe and end up.

With maximum value for shareholders.

Thanks, so much.

Our next question comes from Alex Leal from China Renaissance. Please go ahead.

So everybody is $1.72 casinos Poland.

Colin can pick all time ticker show in Las Vegas dialogue Al woman. She that gives you attribute of alcohol.

Okay.

Sure warmer cannot hear Pico liable to Jake Youre for sure culture hook on any of the joint accounts, how tight or their show say controller for data to the trouble you or was it sounds.

And just kind of warmer ecolab the chick.

Checked but they also the chart show on an unknown Hologic she does not materialize.

Charity care, the logical let alone chico's sharing or telecom on potential year, we always shit also good yourself out of the shelf governmental Unfortunately share.

My first question, it's all the monetization level off peak alive I.

I think the total revenue.

Total revenue uptick alive, it's already a larger than our legacy business I was just wondering whether the management share. Some color on the addition level driver appeal RV. The next few years.

Good question is out whether on the E Commerce business I was wondering whether America share more color on that thank you.

Hi, Alex let me address the first one and trailing by will address the second our first one regarding the drivers for the per user values. We think that overseas lysine will have high potential or higher single unit user lifetime value are they in China are there are several reasons for that.

One our overseas is what we call pen licensing model the entry barrier for lighting is much lower our that's why we seem to put decision from.

But the use of people live is much higher than any other lightning platform in China that the Pursing secondly, the social atmosphere and behavior within the machine commuting overseas.

More diverse equivalent lane, China. So a lot of cases, we seem that each hope they don't they're not eager to cash all the money to earn on the platform the remainder money they earn within acquisition and the tip of each other as a way for competition and social interaction and so that's why typically you see the ARPU the pain amount proteins that indeed.

Right, it's much higher in China and that is our typical across many countries, which is so we think that going forward. We go live.

We have higher higher monetization potential nine China that attribute and why we think we had at least four times, a one life, while an IPO overseas.

Well into the liquid I'm sorry within is under review.

We will generally roads, and we're going to assume emotional.

Hello.

You mean, Jim will review Hunan commercial.

No not.

Uhhuh MACOM.

And we'll Miss you on the realizing a nominal amount of drama isn't going to recruit similar to this war downhole noses.

Downtime due from the visible muscle.

Whom under realized.

Yes, it's only a limited our drama so we know what you know among.

Some of these Jason was due honed in on Donna.

Does it will depend on illumina will need to be USIS moments of alter ego, we'll move right.

Do you have real briefing materials.

Most of those that have good of new cannot.

Diluted muddle through new large.

These are new to new user.

No no doesn't know who deserve towards result, hopefully Lynn Dugle uses.

Yes, a broader bizarre to put other each uses.

Good on Theyll tell me about $2 dilution guarded on hand in the room, there I assume.

Diluted through the remainder symposium this is not a whole new Abbas management Vivian.

Rather than a user name listen we're going into Juicy Europe remains unknown deeper into human goes into a more uncertain economic climate the emotional goodwill given seasonally encore diversity is not is assumed we distribute up new Sylvia Nancy.

Okay documents on file with your consumer needs as long as well.

The five year, causing a newer lines into human being done unit. The division earnings as Colin said, there has not yet.

Through 2000 units.

When you buy the numerator again for US is was.

Thank goodness is assumption on sanjuan done through middle Bakken, our freedom, some adopting more loses a decent vito.

The good news assigned in Hollywood.

Hello.

Can download it was done in the Gulf.

When it looks like it again some of these achievements in the who cinema, we don't know to move automation.

Selling and then throughput growth non interest income.

Yes. This is Barry let me also concerns in terms of big strategy of our ecommerce. So firstly, if you look at a currency our growth revenue contribution.

Super majority of the around your it's coming from our not streaming and then followed by our advertising only verismo portions of our run there has been generated from E commerce, but we do expect our after several years output.

Appreciate the hope it will become.

Our company retreat majorly revenue generated a strong E commerce model this model, but not to remain on our treatment.

And both in terms of the development of the ecommerce.

Business, we actually had the long term commitments.

Yeah in terms of quality map of the ecommerce. We believe we have the advantage and a competitive action in the sample aspect to fight for firstly.

The overall toy group regional or walk intermediate of the monthly active users and outside of China.

At massive user base will be very unique competitive.

Compared with other peers. The secondly, we truly believe.

Maybe in China, as well as the advantage coming from our supply time.

Both from the domestic industry will significantly how hard to create very unique model.

And the compound that handle the very unique competitive at new trend or to the Ontario Tonight. The 30.

Joined we our company, which is driven by that.

Our technology and innovation through all of our departments in the short haul radio arena and we actually has been accumulated a massive capability in terms of.

Richards related to that.

For example, like open water reclamation upgrades to reclamation acquires the objective reclamation is better than past hopes are very comprehensive recommendation above capabilities. We truly believe all those kind of how.

Allergies and expertise metrics can be reviewed into their ecommerce, Iran, which were to go also creates a very unique competitive ads.

Compared with other.

Ecommerce companies and although kind of cover business, which is not.

Now for the products on a single.

Commercial network and others as Nieto, and it's more front over the company, which is prudent achieved gradually to help them to do that for you. So all you know we we NSN overturned.

Ecommerce business and we actually has a very strong patients who continue to develop our ecommerce business in the next three to five years. Thank you.

Yes.

Thank you that's all the time, we have four questions today, I will hand back to management for closing remarks.

Okay. Thank you operator, thank everyone for joining our call today, we look forward speaking with everyone next quarter. Thank you. Thank you.

Thank you.

Ladies and gentlemen that does conclude the call. Thank you for attending you may now disconnect.

[music].

And.

[music].

[music].

Ladies and gentlemen, thank your standing by welcome to the joint Inc.'s second quarter 2020 earnings call.

At this time, all participants are going up.

Right.

After the management's prepared remarks, there will be a question answer session.

Please note this event is being recorded.

I'd now like to hand the conference.

Today is the Mackie show the company's general manager of Investor Relations.

Please go ahead.

Thank you operator.

Good evening, everyone welcome to enjoy second quarter earnings no principal.

Today I'll meet your baby charity care about an appeal joint capital will be therapy, an appeal, we indeed.

Well todays call management with birth Wired revealed the Walker and then we will conduct into a pension.

Second quarter, Thanks, Randy Binner, who results what cost at least Congress ball a wearable.

Well why why not.

A replay of todays call will also be available on our website in the people.

Well, we continue I refer you to Robert Brous seamless no earnings that's really.

Yeah, I can recall, that's where we make over <unk> billion.

Finally, I know that unless otherwise stated Oh, Peter mentioned during this conference call I hear them.

I'll now turn the call work out here in ministerial needs are de leasing.

Before habit.

Thank you Mr., Oh, sorry, alcohol, why Monday, I will not RDR lenient, yes, you do that you get lucky.

Oh, Hello, everyone welcome called second quarter 2020 pretty cool.

So we saw jobs.

Thank you agree with you seemed and this is again.

I would probably be about alcohol.

Yeah, I'll give you the even do you believe you don't really Oh, no actually let's see I thought I would you don't do that deal or maybe a year.

Maybe you don't quote me she does that mean, so we've been really well.

Before we jump into details about the business of ultimate you're not looking for by everyone with a better picture of our quarterly performance.

I'd like to remind you that starting from this quarter would have decreased quality. We are quite likely result, I listed as discontinued operations, such deconsolidation applies to both carbon quota and historical compared to.

Okay.

Good thing she does he ended the budgeting.

No.

Well no today, yes.

It was outlined should not shown.

Got it goes there was on but I'll tell you why do you need well design wins.

Well not even you know so dollar doesn't get much beyond that I believe.

Yeah, it's only because I really like US again like I know you do want move them, we'll see you got I'm not.

Oh, yes and.

And you want us to beat on the thoughts with you.

You got your hobby lobby could you called out these.

Oh, it's all your most recent trends.

Well the along Hugo sometime you got it isn't working.

People coming back.

Mhm look what do you want adult we even when we don't see jobs, but luckily it.

He will be along well move don't see what I'm going with this is Tom Yes. All these studies you want me, you're not said well I'm not sure well done sort of noticeable God knows what doesn't.

Oh no need so yeah, Hi, John do you know that's all my life. So we want.

Right off the bat late changing market dynamics due to the cold in 19, and we've been geopolitical uncertainty we have been actively reducing our global do anything that strategy.

Our conclusion, but people.

We remain committed to global expansion.

Although our business in certain countries experience.

Due to local that between changes, we believe such that back into it as we are convinced that the movement was worldwide connectivity is invisible.

The only the implementation be construed money for me exchange the emergence of innovative technology.

Allocation of successful business models across your Buck <unk> under we would also unleash the power of Internet to boost productivity I leave living standards.

We are at the profile of this school that they should wait now we intend to buy that I'll definitely publicly.

For example to be go lives, our global Lightning platform, we plan to expand more regions.

Further reduce the Latam on any single market.

At Eagle life user base expand we will remain focused on developing a highly integrated ecosystem, what social and entertainment like me.

We believe equalize has the potential to generate four times as much revenue that's why like over the next few years.

Yeah, the doors down yes is there anything you want to you.

We'll move guys. Thank you would be I'm going to do noncore young ones here not only.

No.

Do you either we've done we've done well.

So let me walk look I knew brokered one job, but you know Bobby about reality.

Oh, you go to call. It just isn't done at all no hope on me.

But then we can look alike not one of these.

Unless you know Dewen Chen will double.

Your body people I believe me Muslim huh warming equal right now there will certainly those guys Goldman.

He would you go down young woman.

Well I would assume please.

James Open deal I mean look Susan.

Secondly, we continue to advance outlook walk region.

In response to growing geopolitical tensions and to ensure our full compliance with changing regulations in principle content products and operation, we proactively engaged in frequent dialogue with various local authority.

The one off that your weapon regions, we offered.

Because people like headquartered in receivables.

Under the Singaporean jurisdiction since inception.

Yes, it's also maintain its operation independently, although China, even up our completion obvious acquisition in 2019.

Going forward, we plan to find more local employees and boom, yeah contribution to Beagle.

As we leverage our network of over 30 localized operations around the world the breadth and depth about global operation increases and I'll operational and financial performance intensive accordingly.

Okay. That's all I've done against new student enrollment, let's see anytime you go is mostly going to let me know when bill Warmington, usually wash through Jan reliance on one of our future.

Onto has died that would add along with us not only rules. So we know this yielded nine into adulthood function really I will know Jim says that dribble advisement NIM usage.

Will you do so yes bonuses will go down while we're not looking at work there wasn't that you all day long balls down on a go wouldn't you nathanial on.

When you go on Monday, we look worse.

Well I don't want to over three kind of course, a woman who can begins on the you realize they remain unchanged. We don't want to do not I don't because we don't there was only one local you yeah console with us in women.

Certainly we firmly anchor our competitive advantage in video content than video so that.

We believe that video has become the mainstream media disseminating inflammation, but when the internet.

We also convinced that for the coming generations of isn't that uses video will become the dominant format for social networking content production and content consumption.

Therefore, we plan to diversify our monetization capability.

But in Lightstream short form video and Vito basin, but making sure.

Furthermore, we plan to enhance our monetization capability.

Including an advertisement any comments.

The precursor to our friendship, which converts we made a city investment increase in light this quarter.

We believe that we will be able to generate recurring revenue from light streaming advertising and ecommerce as our global user base grows.

Well you know I was that they've gotten doesn't nor the yard.

Yeah, I'll give you really want me to do that so it hasn't changed so while we don't know congrats.

We'll go up and you have you been limited Jonathan will not go how the bone do you get a good.

Indeed implemented.

You know we're on the popular.

Again thank.

Thank you again, Tom Williams.

We view Eagle, which was viewed a leader.

So there is open.

He joins our income.

And we will overlap.

Our goal without anybody.

Hi dollars recall, our liquidity so the constantly yet another clinical still battling wendell.

He wants to go on the I know John.

Yeah.

Since we are they aren't really no formal no no no no matter, what looking I've had the most of them.

Okay began July we have a nilandron and ultimately Hooper Zillow will not have gives you see there that will generally be what's behind it.

Hi, good licensing agreement that let me give mode I look.

Hello, and robots, you've got the AD Beagle Autohome, who are based on I'll tell you the yet.

As he said Oh, yeah, there's not much different than we would be minimum foundries only the amount that you got good are you sure about should again huh.

After shooting the threed aforementioned those strategies, we achieved solid operational performance during the second quarter of 2020.

As a result of extensive global and local like operations, we are well positioned.

To help people around the world to combat Koby 19.

In May we launched a 24 hour nonstop global charity concert online.

Harnessing the strength of global because global community the competition more that accompanied by choosing called the over 20 countries a truck at close to 4 million views around the world I raised $100000 explanation for the World Health organization coping 19, probably Directv response farm.

An event on special worldwide scale is made possible only grew much would be global social platform like much like the Eagle.

Also extended by Eagles unique combination upward addition localization capabilities.

Besides the online charity conflict, we also join hands will likely be poke around the world to launch a series of online activity to green comfort and joint while usage in meat.

For example to help local communities safe and healthy at home, we launched the stay at Eagle campaign that features informational seminars by health care professionals Entertainment performance by local music DJ and what how session I believe in to that.

Well look forward chains, including over the medium bogo, unless you know that seasonality.

No. It doesn't give you tell us how we do not.

Yes.

Thank you Anthony Meanwhile, by new completed in Q1.

The warm in the new so maybe we'll buy when you're starting to address that Allah immediately when somebody in India.

Yes on the mixture of Eagle Jug water. So we really don't run up 500 into battle commodity about Oh are you know when you sit here and thank you we cancelled but how would you.

Due to declines waterfront Google.

Equalizing I had a useful amelia no, but either way reason on that the yet that one of these new now that we use the.

Thank you about.

That's a new route but didnt go.

Hi.

If you want to do you guys do from equalize, the we'll do more year human human window.

Our ability to serve the various local communities around the world not only intense our brand recognition in local markets, but also group.

Operating and financial results.

Despite the uncertainty and challenging macro environment during the second quarter.

Our net revenues by 36.3% year over year to RMB 5.84 billion.

In particular Beagle like GE revenues grew by 158.8% year over year to RMB 2.95 billion.

Excluding more than half of the group's total lights can you revenue for the first time Abba.

Equalized mobile and they use increased by 41.3% year over year, and 10% quarter over quarter to 29.4 million is paying user base also grew at double double efforts in cultivating uses a habit on the platform.

But I will mention can live now who will go down relatively low let's go adult little users.

Turning it would be the lives of Wyndham cyber and give a woman should be no was going partner that we will likely you should feel for the long known for William will once again, we were children as well.

Good morning.

So the new why weekly meetings and utilize new highs. We'll go first to adults with you when he will equalize Bob Bowman listen when she walks you never know we've got.

As we realize we genuinely cans as you go down what Bob you really look we've worked with US legal John's going to give me the recent within them.

In addition, Eagle life healthy growth. It's also attributable to cloud diligent effort in nurturing users habitual views of lighting and the medium for both entertainment and virtualization.

During the quarter for example, we optimized our switch wouldn't option future bar to continuously intensified eagle life highly engaging and the nature.

Our enable users to and hope to share updates with one another increasingly friction manner.

That's a result over 50% of view about use of except bar during the second quarter.

In addition to light premium showrooms apart a sequence.

Circle each be go live user follow 11 fold on average representing a significant increase over the previous quarter.

Oh, that's not something that could move on NIM will move down equally regional dialogue like Keith.

Thank you also mentioned, we'll look beyond them strategically legally I'll hop back on to tell me warmer in May we go more dosing on let's put it remains a few months Minera, Florida goodie likely they know we belong.

And as you go I mean, you would have been young removed all over the past moving off while we do not know that needed to do that on a dollar yen.

Thank you.

Glad to see what are less likely that lower.

Let me answer no some tissue box, there's no doubt that give you a little I know you open the door evil filings.

On the short form video fronts, we booked all effort on cultivating Nike global at the system.

Rectifying content offering refining its product features.

When I think expansion with local market characteristics.

Our results like his total EMEA Hughes search by 86.2% year over year, and 14.2% quarter over quarter to 150.3 million in the period.

We also continued like Joe Buckley for expansion by.

Depending if.

He market, such as Russia and Indonesia.

Notably like is told me you, Russia, almost doubled year over year in the period.

There you tell me the field is you've done you'll begin would have been put up.

Like I used the word on new dalfampridine.

Question about routine and lets go do we really like you did long island wireless.

Uh-huh Ergo look this is okay. I mean, yes, we would give us now that that like you have anything.

We will make conkers I'll agree with me here I don't I'm on that New Jersey.

We will go up.

That is higher than usual.

Over the dollar pp either to the Longview. Good did not know guys. Two daughters are likely to look really doing award.

Novato tongue advisors, you may see so recall.

Our overall down you've got more months movement.

As Lucky brand infers become increasingly the basic and as active user base expense continuously we are actively exploring various innovative marketing initiative with how we penetrate into younger generation.

In May for example, likely cooperated with a series of passion and cosmetics plant in Russia.

Launch automatic short form video challenge for Beauty Festival.

Leveraging our state of art technology, we develop specialty pack template and customized is active inflate dishes for the campaign to boost its user participation and enthusiasm.

As a result, the event struck a cycle nerve in high a large number of feel Russian uses the volumes really create and shoppable videos.

And generated more than 200 million cumulative cumulative views on the platform.

Making it a perfect stage or bolstering our partners brand exposure in the local market.

Oh CLS is why isn't the popular with our.

Our goal you outlined $8 on the GE selling a lot in Korea.

Due to go down somewhat neutral and Onton earlier during the year over year.

Meanwhile, bogs driven means identifying vascular.

It has already awarded begun to fewer units are those all so July has less willing to do that.

A few types.

No less online uncertain we.

Yes. This is not unique also with our immediately.

Let me.

Good luck.

Enable new full uses the overall good they have a larger vote no no signal to you.

Yes blended learning Johnson you may on could you have not only sort of.

Probably grew up due to Taiwan determine what we'd like you.

Peeling it wasn't any loans, we didn't didnt, we've done that could you go through additional achieved with results, but hardly do dual sourcing a bullet on enroll overall quarter, so don't yet.

Annual removal team, we've made a wounds any length you didn't really don't give those new heights aluminum.

Now, let me share some updates on Congo.

By focusing on local bundle addition, delinquencies receivable how are we delivered significant revenue growth in the period.

Okay, and we use also remained relatively stable at 31.7 million.

As we continue to explore different methods of forthcoming hobbles long term use the value we were able to further intent its social nature strengthen it use a connection and devote additional contacts fall user adoption.

Meanwhile to cater to the younger generations preferences, we have expanded its content offering with comedy Dan and music performances.

In addition, we continue to update how goes product features this cutting edge technology.

For example by integrating data analysis with everything we optimize heico's content recommendation system. So that it can match content with individual users features more precisely.

Moreover, our user data analytics.

Let us to upgrade a number of features you handle such as potty chapters and uses the non of intense music gaming simulate social interaction includes user community and boot penetration, because hobbled, social nature and increasing user stickiness.

Phil assuming it really doesn't look on the core guns, we will will enable equal we got going a little below on either not either.

Some of that because we don't develop new Doug we believe you're working with them I don't think again, yeah. The futile later once you get more previously when room President role again. This is not new bidding doesn't give you typically not geared towards a more some gorilla yeah, I don't know exactly which is on go up.

Pardon me of course, when it was I think man, coinciding immediately or new business income rebellion isn't versus really I'll hand, it to the annual pools materials is again, if we don't we're 100 or given year, Taiwan, where maybe you.

You know, Google and more to build labeled liquidity leave with you on that realized in Q4 hundred on whom Russia.

Last but not the least on the domestic from we fortified our leadership in China's like humans and between the industry and expanded I'll, let you offerings during the quarter.

Opt to all achieved celebrity variety show.

Idle Friday became much hit on launch is continues to attract additional viewers in the second quarter.

During our success with idled Friday and other variety shows we launched a new program called let's see.

Similar to idle Friday, let things have weighted.

Virtual stage for professional musicians to broadcast that performance. This online while engaging in real time online chat with a band.

It is well suited to facilitate social interactions among users host and debt.

As a competition of music Palin celebrity, Tom and life reduction proof, especially attractive to audiences, we plan to replicate its formula for success to other future endeavors.

We will it be lower lively.

I agree Realty subliminal, the legal warmer easy Plaza located with your go to know summit.

We refer you to inventory. This is a lot of digital growth, although crude oil moves are not into growth has indeed, it's not yeah Hillman positions us dollar either bloom.

No I love.

We opened so any of those transitions casual dining and other ones you know we're not yet as we use on digital will contribute Nelson who don't during what was that a lot assigned to be Duncan will do.

We believe we could have delivered on that you are with us on July one a little appliances claimants immediately.

Putting show steady flow opinion lighting and content, while I like to further expanding the variety of all content offerings through the second quarter.

For example, we introduced a couple of Microport initiative to help I quality celebrity launched their own personalized like human channels.

The effectiveness of question incentive has led to the formation of several partnership with professional chesler our lie.

Cop, Chuck Berry farm, particularly in features such as the National Chats Academy and now in bike, while I live users to participate in online games, while providing play by play professional narratives.

Hi Street.

As you the in Threeq would be especially type of licensing content growth. So that the popularity of our chest related machine at a rapid pace.

Right its own that's really good news is one of our Douglas.

When you do not as geometry optimal don't we bought a bump up in either a warm welcome. So it seasonally you don't really nice starting in the Cebu and seasonally low.

Dynamism legal video or moved down five on Tyler.

Look we see women.

Okay businesses within with non physician.

Liquid so those are using our assembly lets you don't really.

In addition, as we advance each of our businesses and food value. We're always looking for ways to increase returns to our shareholders. This quarter. Our board of directors approved a quarterly dividend policy for the next three years on the this policy quarterly dividend will be set at approximately 25 million at U.S. dollar.

In each fiscal quarter.

As always we appreciate in value the long term support from our shareholders now we're always devoted to maximizing the issue flush out over the holidays.

Who knows what we'll continue to reinforce the between as you know no R&D evaluating initially a good would that idea yen. So this is leading boards, we love solvent and not in.

Q1 visiting on July one.

Hi, Bill alluded also those DIAM, which is one evening.

Well, maybe alliance yields on management knew the warm winter continue human box of the yen.

I will not be easy joins anybody's on immunogen digital adoptions of utilizing Brian reliable assumption will reward them with regards to Europe build on value within is on the usage of nurturing Saddam is not.

In summary, we firmly upheld our independent growth strategy during the quarter.

We upgraded our platforms localized operation and dropped oil for experiences to people around the world.

Despite the macroeconomic uncertainty caused by August 19th we remain confident in our business models on the line spreads and favorable outlook.

Our long term business plan remains intact.

We continue to work tirelessly to build our globalizing actual from the opposite.

We remain fully committed facility, how users delivering shareholder value and constructing a truly global video based social media platform will.

Okay.

That concludes Debbie prepared remarks.

Now as joint CFO, I will talk about the financial results.

Please be noted that the financial information and non-GAAP financial information disclosed in our second quarter earnings press release is presented on a continuing operations based.

Unless otherwise.

Stated.

After the deconsolidation of pulling out the company accounts for our investment in we are at an equity method investment and apply the equity method, becoming one quarter in ideas to enable us provide financial disclosures independent of the reporting schedule of Julio.

During the second quarter of 20000, we maintain our strong momentum and delivered robust financial and operational performance.

Our total net revenues for the second quarter increased by 36.3% year over year to RMB 5.84 billion.

Exceeding both the high end of our previous guidance range and street consensus.

In particular, our lighting revenues for the second quarter increased by 40.1% year over year to RMB 5.61 billion.

Driven by like humans revenues growth on legal settlement.

Other revenues in the second quarter decreased by 18% RMB 20 32.3 million.

Primarily due to the decrease in other revenues the why why segment.

Cost of revenues for the second quarter increased by 50.8% year over year to RMB 3.77 billion.

Revenue sharing fees and content costs increased RMB 2.6 billion in a second quarter from RMB 1.79 billion in the same period of 2019.

Which was in line with the increased nicely with revenues.

Bandwidth costs increased on VTI 280.7 million from RMB 228.1 billion in the same period of 2019.

The overseas user base and time spent continues to expand on the consolidation of Eagle.

Gross profit for the second quarter increased by 16% year over year to RMB 2.7 billion.

Gross margin in the second quarter of 2020 decreased to 25.5% from 41.7% in the same period for the 19th.

The gross margin contraction was primarily caused by the fact that Eagle segment at lower block margin, but contributed significantly greater portion of net revenue in the second quarter of 20 point.

Compared with same period last year.

Operating expenses for the second quarter increase to RMB 2.0 to get in some on the 1.79 billion in a same period 2019.

Sales marketing expenses decreased on being not only 9.8 million in a period from RMB 979.9 billion in that same throughout 2019.

Primarily due to the company less spending in sales marketing initiatives the overseas markets.

For the corporate 19.

R&D expenses for the second quarter increase to RMB 693.5 million from RMB 550 million in the same period of 2019.

Mostly due to the increasing headcount and investment in kind of documents as part of the company effort, we added research and development capabilities.

Our GAAP operating income for the second quarter was RMB 95.2 million.

Compared to RMB 4.3 million the same period of 2019.

Operating margin for the second quarter increased to 1.6% from Bill for one person in the prior period.

Primarily due to narrowly operation loss of legal settlements.

Our non-GAAP operating income for the second quarter, which exclude share based compensation expenses.

Amortization of intangible assets from visit acquisition.

As well impairment of goodwill and investment gain on disposal of subsidiaries and business increased by 24.6% to RMB. Finally, a 9.3 million from RMB 408.7 million in the same period of 29 team.

Our non-GAAP operating margin for the second quarter was 8.7% compared to 9.5%.

Included 2090.

GAAP net income from continuing operations attributable to controlling interest of jogging for the second quarter of 2020 was RMB 619.4 million compared to net loss on be 6.1 million in the same period of 2019.

Net margin was 10.6% in a second quarter 2020.

Compared to negative 4.1% in the corresponding period of 2019.

Mainly due to the income from fab is that a change in investment.

Non-GAAP net income from continuing operations attributable to controlling interest of joining increased by 38.2% to RMB 493.6 million from RMB 357 million in the same period 2019.

Non-GAAP net margin increased to 8.5% in the second quarter of 2020 from 8.2% in the same period of 2018.

Diluted net income from continuing operations for 80, yet in the second quarter of 2020 was RMB 7.39 compared to diluted net loss from continuing operations per ATM armed with your 0.28 in the same period of 2019.

Non-GAAP diluted net income from continuing operations quite yet increased by 27.2%.

To R&D pipeline by seven from RMB 4.38 in the same period of 2019.

In addition, as David mentioned in his prepared remarks.

We are pleased to report that our board of directors has approved a quality dividend policy for the next few years.

Under the policy quarterly dividends will be set at approximately $25 million in each fiscal quarter.

Accordingly, we will be distributing a dividend of U.S. dollar your 0.31 per ATM in a second quarter of 20 point.

Looking forward for the third quarter of 20.8.

We expect our net revenue to be between RMB 5.85 billion and RMB 6 billion.

Excluding the revenue contribution from without the same period of last year, representing a year over year increase between 26 or 7% to 29.9%.

We currently have limited visibility around the only 19 epidemic long term impact and geopolitical uncertainties, our business and the market, which we operate.

Therefore, this pockets only reflect our current and preliminary views on the market and operational conditions, which are subject to change.

That concludes our prepared remarks.

Operator, we would now like to open up the call two questions.

Thank you, ladies and gentlemen, they will now begin the question and answer session.

To ask a question.

Thanks, Chris.

On your telephone and see your name to Pan out.

The convenience of everyone on the call. Please ask one question at a time.

We should ask more questions. Please rejoin the queue.

Also when asking a question. Please state your question in Chinese.

Then immediately repeat your question. Please thank you.

Our first question comes from Thomas Chong from Jefferies. Please go ahead.

So somehow affect your money chunk at all what if you ever go see peak all that much housing the I'm going to be it going T restaurant.

Woman FICO lots I stop on land that you got that.

Hi, Bob Dole should try make up.

What I can imagine market.

Let the buttons that you got momentum.

And.

Sure.

I've got competitive landscape.

I really like VJ quite tools and.

Okay, and what your whole woman demo cannot be go like Ben like Keala, a way like that.

Okay.

Management, all taking my questions.

Congratulations on the strong results Bobby.

Uh huh.

My first question.

The second half outlook Bobby.

In particular, how we should think about that business trend in developed and emerging markets in the second half.

And my second question is about the competitive landscape or how should we think about our competitive position.

Of like he asked me go live in coming years. Thank you.

Thank you Thomas This is bill let me address the question. So regarding the second half performance forecast of legal we think people.

Eagle is well balanced across different regions.

And we if you look at the second quarter performance is 148.

Percent growth.

Well, which is very tremendous.

We expect that both moments continue so we will rates up our full year guidance for Eagle total revenue.

Which previously we communicate to the market is around 65, 70%.

All right now judging from the recent performance and took into account of the latest situation across the world. We think people can generate.

Somewhere close to 100% revenue growth on the young a basis for 2020 and that apples with obviously is driven by increased expansion to devote market and also the existing market as well so thats about the.

Kind of the performance items for Eagle for the second half and full year.

And then in terms of competitive landscape.

Again Eagle life has achieved potential of great growth in user and revenue. We think we don't see any other competitors will people live in all the key market that operate and we remain very focused on driving our revenue from the four key markets that equal level operated as the claims that were not include.

Organization market into Middle East includes North America, and what the Euro I would remain very committed for the opposite by original exposure.

For the likely business as you can see like these and the you had reached 150 million in the second quarter.

Given all the geopolitical business we have.

Adopt our various strategy in different markets first we're cooperating with various local government and then we also enhancing our local operations to better food for the local environment. So we expect like Keith.

Performance will continue to to grow and Meanwhile, we're also ramping up like chief financial.

Capability as well so we were intense in the second quarter second have often see a william has likely monetization efforts in the key markets as well.

Thank you.

Our next question comes from GE when sang from Citi. Please go ahead.

Hey class I fell short haul culture fit our China, yet what the data and then share tier socialist shying away.

I want you potentially go up a tradition, Marc Dunoyer, However, tortola and custodial close shift hotel Theres hotel here quite shocked when you got this show for could attract what are kind of.

I will tell Schuchat also telephone central pay if at all to compare capacity Shanshal got your wholesale.

She said she and.

I was just the wholesale sales of course.

So it's always hard corrupt types Detroit shifts touching showed a tip off your source.

Josh help us second a critical ortho clinical recurrence shifts and the answer for your time share hotel for us and share later, but your car share or finish up.

Thanks measurement for taking my question Congrats on the rest thought it was volatile.

Chris Let's question regarding the overhead structure.

Okay. Some markets have some uncertainty so how well wait I trust a lot expansion statutory quite helpful. Kim our cash and tell us what you're sort of potential and I'm going to touch base share.

Second follow up our cash usage when not if you have found at a cash for itself, but I should the especially protest okay.

810 minute your thoughts.

Sure. So by the way also notice there have been record capital safe for that growth, yes. So apart from fat homework overt how would you consider.

Cash cash usage of course, although when you consider red Hawk.

So a professional shop retail or where you are considered talked about it caught out what you bye bye. Thank you.

Thank you let me address those questions in terms of our expansion strategy for Eagle as I've laid out we remain very focused organization and we want to diversify our original exposure to compensate them of the geopolitical that so we look we've continued to strengthen our depressive existing market we boot.

This Asia Middle East.

North America, what to Europe, and Japan Korea, I will also put expense other budgets.

Thanks to our global appreciably over 30 opposite.

Around the world So that's about the.

Which expansion strategy.

Since our cash position, we do have both cash onshore and offshore to fill up that we sell a portion of that we are sure to test them and that's why we in order to maximize shareholder value we have announced.

The two year regular dividend payout as a way to return some of those value to shareholders.

In terms of this expansion will continue to focus our efforts all I can intangible view, our U.S acquisition.

Interest of M&A, we don't foresee that we will do.

Skilled M&A.

Thus far we still want to organically grow our business on a global scale.

Thank you.

A question comes from genuine Chen from JP Morgan. Please go ahead.

Oh Granita Kasina, yet you have challenging which I don't quite know NTP goes syncera Goldman typically to attribute cigarettes have also can be talking about this is Joe when you started actually also noxious upon them.

They are going to use a quieter the newer lido and teachers are saying I want to the solar or what you see how challenging woman to churn.

Hi, Matt Szot halfway.

Okay, DMR bulk was to grow them all kinds of equal to the way that she gets utilized about India cheese.

Hi, you shop, Sankyo management and congrats on a very strong quarter. My first question is on the.

Pete Rose grows so this quarter people actually grow by close to 50% waste what are the major growth countries.

So just on grows and the second wise on the.

Margin outlook. So previously recorded a kind of a bicycle or even by year end is there any update on that and how should we look at a big also gross margin trying the next few quarters. Thank you.

I think it anyway, let me address the buses, which one is regarding the driver of the tremendous books of legal I think it continues to be very strong across all divisions, we operate.

Include Southeast Asia, Middle East and also developed market given markets as a potential revenue continue to be very strong.

We expect going forward the revenue contribution from all those market will be.

We'll be driving the performance for people like that's while at does that we based our our guidance for the full year performance of the lives.

For the breakeven point.

Moving to be the same as we communicated before on the single month basis by end of this year in the second half the Beagle as in total for the settlement will be breakeven thanks to the.

I am going as revenue growth and operating leverage across many segments.

For the gross margins can I think that will be balloting stable.

Before we go overseas because the main cost of goods item, our revenue sharing which we foresee pretty stable and for the bandwidth upward the bandwidth and as well as the payment channel cost, we expect to be relatively stable for the next one or two quarters.

Yes.

Okay.

Our next question comes from Alex.

Morgan Stanley. Please go ahead.

On its own coffee fish out how the yet.

Deal one piece when you show like he since IPO, Santa Monica thing, John Dunkin Donuts hit all Cheniere Pico the revenue guidance way told by introducing without cecity at all by the by.

In 1000, so light Cheetah junket, Doug I assume foresaw anyway like key sensata.

Jason Biegel alive to won't payroll for tank car for Nadesan qualify subpoena.

We've also real quickly it's helpful. So sensitive walking high sorry.

New York Holiday.

Hey, guys how should the highlights you the revenue potential Super show quite be.

Eagle life yachts I thought you said.

Steve on it Jago when do you sell a wondering since our you may have dog watch out its obviously two thoughts and then when you think that can call.

Oh children's soy sell when you saw some people your mail sands that cardio symbol.

So to answer your question. If we don't have had just as you all four days for your it always supersede the situation you guys have got a shrinking.

I'll translate my question.

First question asked related to the progress off likely monetization.

You have revised up the vehicle revenue guidance to 100%. This year how much of this is driven by like you and I would like he has about five times to anyway, you slice off peak of life. If we take reference of China situation shall video makes much more by streaming revenue with them.

Pure.

Hi streaming platforms. So how how are you seeing the potential for like he's monetization scale compared to be go lives in the next few years.

And my second question is related.

Too.

At the post Covis situation.

Any user metrics you can share.

After the locked down is over.

Is this still very active thank you very much.

Hi, guys. Let me address the question first regarding the progress of the monetization of Nike.

As we explained to me, but before we are talking 10% of legal coming online this year, but right now because we raised the revenue forecast for people as a total so I'd like his contribution to the percentage will be less than 10%, but in general are liking amounted to on the way. So we 14 Likewise W. Nominal.

For the second half with you will ramp up.

And you asked about the potential for Nike.

Fish messaging, we do think.

As you mentioned that the talk a little can incorporate a lot of unless you beaches and ER has high potential for monetization in the middle Longmont, We do think like 10.

Another eagle life scale, even bigger than that but I will take time. So I think this year. Our focus is to we're still grow the likely user base and then convert part of that users to lysine to realize the out the close group of lighting.

One caveat is that due to the leases Indian government banning of the trend is app Nike's I mean, you in India will be impacted.

In the third quarter, but as I mentioned to investors before starting earlier. This year, we strategist strategically have we shipped to focus on India auto market. So.

We have purposely reduce the sales marketing spending India.

To better ROI vision.

Including other.

Above market and emerging markets. So.

Given our India users will be impacted this does not impact the overall strategy and monetization for Nike.

A second touches with value the post could be 90 situation we are seeing.

Some countries are returning to kind of normal.

Post night, Koby 19 situation and Luckily, we see that some of the uses that are attractive in the koby 19th decent they remain on eagle unlikely platform. So even after covering 90 is gone and also use would have formed the habit of viewing online entertainment, including machine shop and shop, a video content and they remain to be honest.

And that's why we are confident even article in 90, we'll be able to drive the user base and monetization in the areas that we're not seeing pocket by the regulations. Thank you.

Our next question comes from laser from Bank of America Merrill Lynch. Please go ahead.

Oh heck wanting to attack on how confident are talking to people that yet.

Our Eagle Antifreeze outlays social Wilmington.

Oh, the covenant that how would that also go why wide I'd say oh.

<unk> expense.

You answer to the south to supplement that menu Armenia and now flat.

EMCORE Daniel Mill.

Hi, guys.

Yes, we're seeing that you could be out flat all highly complementary dog.

Oh, yes.

Thanks.

So last night vehicle exam that yes.

That is insomnia.

Wait.

Dolphin.

Yeah go ahead.

Yeah audio AMEA that busy in my life sales. This year, it's a bit shinsei sounds without Glenn you tend to me I won't mention adult reactions outages. This year's Oh sure Mail you got some oh it talks about you got some at all that.

I'm asking questions about the all other let's step.

And that backlog.

Well why why.

Can you give us more color on the expansion all in all key encounter in second half side I tend to turn to especially considering Uh huh.

You asked them via a second the let alone.

Sure flat for the Red Mainlines shares.

Oh well thank you.

I think outlay I'll, let me address questions. So first regarding potential for four times, but while IPO overseas, we remain to be very competent and the forecast I just mentioned for this year, we both revenue growth already taking into account outcome of the uncertainties regarding from probably 90 and geopolitical risk.

Some of the key market I think we remain to be focused as that in those two markets, where we are very strong already equally in southeast Asia, and middle East and including those areas that are growing at a much properly that includes.

Markets include North America, Japan, Korea, Australia, New Zealand and some of the what the group countries.

Exactly which accounted present the largest opportunity.

I don't think we need to rely on a single market. We tracked the data on a quarterly basis. The data that is shown across all those which is the all very promising. So I think that is the result of our local operations.

Mobile brand and close relationship with some of the local regulation.

We remain to be confident even under this some of the geopolitical that we will be able to capture those opportunities going forward to create more times below last field.

In terms of the.

The book of planned for the Venetian deal as you all that's on the news that Tencent is urging the.

Consolidation of up we are and W.

We will.

After the sale of the ship.

The two have around 16% opt to shut down so we will observe the future consolidation plan under transcend because we ongoing and we will benefit from any potential synergies coming out of those transactions and we were disposed to shed at the right time for the by pipe and end up.

With maximum value for shareholders.

Thanks, so much.

Our next question comes from Alex Leal from China Renaissance. Please go ahead.

Okay.

Anybody's, though no 17 to 19 official woman cant be called Hot ticker Sjogren wandering around dialogue al woman. She that gives you attribute of alcohol.

Okay. So.

Just a warmer cannot hear people liable to check could go for sure.

Not sure Oakland able to generally on top HEICO other shows a control quota for data to the trouble you or was it sounds it sounds like how long the FICO love the Chick.

Check the but they also that's not true will not knowing how to take the she goes we got the driver you are not yet.

GDPR the hydraulic on ethanol concerning or telecom Italia, we always shit also good yourself out there so if I'm in a little Fortunately shift.

My first question, it's all the monetization level optical alive.

I think thats all the revenue.

Yes, the total revenue uptick alive, it's already a larger than over a legacy business I was just wondering whether the management share. Some color on the addition level driver of the alive in the next few years.

Second question is on weather on the E Commerce business I was wondering whether the management can share more color on that thank you.

Thank you Alex let me just the first one and Shelly will address the second.

It's one regarding the drivers for the per user value.

We think that overseas machine will have high potential or higher single unit user lifetime value are they in China are there are several reasons for that first one on overseas is what we call pen licensing model the entry barrier for like two is much lower our that's why we seem to put decision from the.

But the use of people live is much higher than any other lightning platform in China that the Pursing secondly, the social atmosphere and behavior within the last few commuting overseas is more diverse and equivalent main China. So a lot of cases, we've seen that the each hope they don't they're not eager to cash automated earned on the platform.

The remainder money they earn within acquisition and the tip of each other as a way for competition and social interaction and so thats why typically you see the opposite the pain amount per paying user in Eagle life is much higher in China and that is a typical across many conscious decision. So we think that going forward. We go lives we have.

Hi, Hi, monetization potential nine China that acute and why we take I had at least four times, a while ago, while realized steel overseas.

Well liquid I'm talking within a dominant.

When we cannot ignore the will to assume in motion them soon.

Neither do more we'd be hormones on muscle.

I'm going on.

Uhhuh Mediacom.

We will review on the realizing a nominal amount that run rate then hunkele recruit somewhat routers.

Hello good.

I'd say downtime implement visible Marshall you presume unduly lies.

Next is done in your EBITDA Burma cleaner development.

Some of these jvs.

Beyond that.

No no does to the southern Union, new producers moment delivered even.

Right.

You are real briefly for most of those types of good of new cannot really diluted.

We weren't garden is new to know user.

No no no no who deserve towards result, hopefully in the diesel usage.

Yes, good as is our without these utilities.

Good on tell me about.

The dilution guarded on hand in the room, there I hope.

Hi, good is going to be managing.

The good news for the whole new Abbas reduction in Brazil.

Selling general Newser units were delivered puts you see blog removes are known to the team who has entered into a more uncertain economic.

Moving on goodwill.

From a mute onboard diesel assertiveness is a CBL would you attribute up new Serbia demand Sylvia.

Documents on file this year could human resources are not well, we will know about here could you know lula yield per unit is on the union. The good news as Cummins said there has not yet.

With $2, even 30 million ruling by the numerator again for us is.

Thank goodness is assumption on a standalone done through Neil Diamond drilling some adopting more loses a season.

He was neither Sunday and Hollywood.

I assume.

Somebody was done in the job.

Yes, it's not going again comedy, which is usually within a month, we don't know flu rather machine.

Selling and then throughput growth Bob.

Yes. This is Barry let me also concerns in terms of insurance Randy allow the E. Commerce. So firstly, if you look at a currency our growth revenue contribution.

Super majority of the ground is coming from that streaming on those all of our advertising only very small portion of our run there has been around here from ecommerce Brad we do expect after several years ample.

Probably the whole goods will become.

Accommodate retreat majorly revenue generated strong E Commerce model this model by not streaming and our treatment.

And both in terms of the environment of the ecommerce.

Business, we are to your has a long term commitment.

In terms of quality map of ecommerce I'll re threepd, we have the one page and a competitive act in the several aspects. So currently.

For the overall Dori group regional or 400 meter of the monthly active users and outside of China.

That massive user base will be a very unique competitive at.

Compared with other units here are the secondly, we truly believe.

The Mayo, maybe in China, as well as the advantage coming from our supply time.

Both from the domestic industry, although significant how hard to create very unique model.

And the co brand that handle the very unique how you add when times are to the out several times the fairly.

We are company, which is driven by the.

Technology.

Question on through all of our departments in the shortfall leader Arena, and we actually have been accumulated a massive.

Preventative all right in terms of.

Richards related to the technology for example, like Kara of awards reclamation.

It's a recommendation as well as the objective reclamation retractable lynparza hopes are very comprehensive recommend patient care about capability, we truly believe all those kind of.

Technologies and expertise to can be.

We viewed into the E Commerce program, which we have to grow also creates a very unique competitive ads now compared with other ecommerce companies and for those kind of cover business, which is not.

For the product for the single.

Commercial network and others as Nieto, and it's more price over the company teachers students achieve where three to help them to do that for you. So all you know we we understand open.

The ecommerce business and we actually are those are very strong patient who continue to develop our ecommerce business in the next three to five years. Thank you.

Okay.

Thank you that's all the time, we have four questions today, I will hand back to management for closing remarks.

Okay. Thank you operator, thank everyone for joining our call today, we look forward speaking with everyone next caller. Thank you. Thank you.

Thanks.

Ladies and gentlemen that does conclude the call. Thank you for attendee you may now disconnect.