Q4 2020 HUYA Inc Earnings Call

[music].

Hello, Ladies and gentlemen, thank you for standing by for the fourth quarter and full year, two tells and 'twenty earnings Conference call.

And our Inc. At this time all participants are in a listen only mode. Today's conference call is being recorded and now.

I'd like to turn the call over to MS. Dana Cheng.

Any investor Relations. Please go ahead.

Hello, everyone and welcome typically a 2024th quarter and full year earnings conference call a comp.

And its financial and operational results were issued earlier today and are posted online you can also where are the earnings press release, a visiting the IR website at IR Dot Dot com a replay of the call a little bit available on V. I, a watch I think a few hours.

Participants on today's call will be Mr. On jazz on Chief Executive Officer, and Korea, and his calculate and Lilly Chief Financial Officer management, and well begin with prepared remarks and on the call will cause a its a Q&A session.

Far away from a P&L and please note that today's discussion will contain forward looking statements.

On a a safe commerce innovations from the U S. Private Securities Litigation Reform Act of a 1995.

Forward looking statements and Walgreens here and rates and uncertainties and.

That's a communist was off maybe and a piano with different from W. A precedent.

For the inflammation, and we're cutting and live and on a risk and uncertainty is included in a accommodates contractors and other public filings a child with a U S T a.

The company does not assume any obligation to update any forward looking statements, except as required under applicable law.

Please also note that class earnings press release, and this conference call on.

Discussions of all know they've had a GAAP financial information and try always own out there and non-GAAP financial measures.

A press release contains a reconciliation of the dominoes and non-GAAP measures to the unknown and the most directly comparable GAAP measures.

I will now turn the call over to our CFO and Ms. Catherine Liu cause a little read prepared remarks on behalf of ours, the O a journal and Jia Dong.

Catherine Please go ahead.

Thank you everyone for participating in our conference call today.

And I'm pleased to deliver today's opening remarks on behalf of Mr. Don.

We are very pleased to report another quarter of solid performance across our businesses, allowing us to finish Tucson, and 'twenty on a store and those total net revenue for the fourth quarter of 2020 increased by 21% year over year.

A year two crews two 3 billion RMB.

While full year revenues crossed over 10 billion RMB Mark for the first day Con.

I believe you have a monetization capability sets a solid foundation for us to reinvest into the business and strength.

And our future.

Robust user growth and higher user engagement also continues to undermine our ability to execute well.

Well I mean use of coming on line.

90, $79 5 million in the fourth quarter and.

Year over year, a growth of 29% and a.

Net addition of $5 million compared to Q3.

Further reinforcing our leadership position on the mobile and.

So mobile growth was driven by the continued buildup of our quality content library, especially with esports tournaments and and.

As a team and program.

Price improvements as well as marketing activities.

While we are like a P pes Mexican months retention rates, we named a.

70% and the fourth quarter.

Driven by mobile growth average M a youth and me on.

On line in the fourth quarter increased by 19%.

For a year to $178 5 million.

Paying users for non life increased.

Increased by 18% year over year to 6 million in the fourth quarter and.

And notably a run 80% of our paying users paid will move on devices and mobile users contributed to more than 85% of our lives a screening revenue this quarter.

Results for the indoors, our mobile strategy focus as we continue to allocate resources to grow our mobile user base.

The growth.

The gross financial and operating matrix validates the strong appeal of our content achieve.

Achieving such solid results and mist of a global pandemic proves the resilience of our business and it represents an important milestone for our company as we move forward.

We have also committed.

Two crew eating more immersive experiences for our users and.

And the fourth quarter, our open platform for a third party application developers continues to gain popularity.

By the end of fourth quarter.

And I'll have a one 200 tools available across the platform and over a 400000 broadcasters have used a these tools during their streaming sessions most of the tools a game centric offering smart assistance to broadcasters to better engage users.

Since we officially launched our cloud team and platform July and November last year.

We have been able to reduce latency to deliver and industry leading level of user playing experience.

Thanks to our continued technology advancements.

And our average fees and Tom.

And for users.

A few law has now reached a run 90 minutes.

Indicating higher engagement.

We have also started efforts and the integration of the cloud gaming function into our core food on live streaming for broadcasters to better interact with users.

Now moving onto our collaboration with Tencent and the fourth quarter average and a youth watch the non live streaming content from tens and platform.

Which are not counted in our reported and they use was around $20 million with weekend, we had a game center and a.

L L bean and remaining as the most popular channel.

On the broadcast or a front.

We all have collaborated with Tencent to help on our broadcasters receive greater exposure using 10 cents game communities.

Further and increasing their influence for example, the order a teens.

Video recently cooperated with a celebrity broadcaster on Korea.

As a platform for released a broadcasters moist pockets within the games.

After the release the broadcaster gained over 5 million fan and the in game community a sense.

And a greater audience and expanding the potential streaming viewer base.

Next I will provide you some updates on the ongoing merger with stone.

After we announced a potential merger we still use in October last year, we have made relevant filings with SEC.

And in China, you have voluntarily submitted and the declaration of a concentration of undertaking.

The state administration for market regulation.

Relevant regulatory authority.

And currently the review is still in the process.

And we increased 22021.

And we won't continue to extend the breadth and diversity of our platform.

And invest in content ecosystem.

Product upgrades and technologies to better serve our growing user base.

This concludes Mr. Don remarks.

Yeah.

Let's start with updates on content enrichment and diversification.

In Q4, we broadcast at 149.

Car T E sports tournaments, among which the top two elements included.

And well work Tucson, and 'twenty I E a ton.

And that must be a cop four seasons of P. P L and Tcl and <unk>.

Exclusively broadcasted, Maximo and electronics sports tournaments and U S T.

Total viewership for these tournaments, which for a wrong 665 million and the fourth quarter, representing a 24% year over year growth.

As far as our self produced content.

Organized a 48 esports tournaments and entertainment shows and generated a total viewership a $109 million representing 53% year over year growth.

The top performing self produced esports content and the fourth quarter income.

Our long standing pop G event, we are TMC season, eight and our commentary program for L. A words from Shaw S 10.

And she N C S a.

[noise] eat international team.

Also joined the competition for the first a fun and.

And then the success of this global participation is a further testament to our ability to organize high quality esports events.

I'm on the Entertainment T. G. C shows this quarter, we have losers and altered a chess and reality show the voice of who we are and outdoor talent show and we are calling from carnival season on three a mixed martial arts competition.

Gained popularity and.

We believe such shows will continue to improve user stickiness and chaos.

Turning to our overseas business and.

And they used a oversee fitness was around $30 million in the fourth quarter.

Representing a 50% year over year increase.

And also achieved a leading market position and in certain countries and.

And had some successful monetization accounts through our localized operational efforts.

Next I will walk you through our financial highlights.

In the fourth quarter, our total net revenues grew by 21% a year over year to close to RMB 3 billion.

On a live streaming revenues increased by 20% year over a year to RMB, two 8 billion in the fourth quarter.

The girls was primarily due to the increase the number of paying users and they increase and revenue per paying user both of which a expanded year over a year.

Advertising and other revenues increased by a 45% year over year to RMB $175 million in the fourth quarter of 'twenty 'twenty.

Primarily driven by the increasing and diversifying a number of advertisers.

[noise] our profitability.

On you to include this quarter given the leverage we have in bandwidth costs and our operational efficiency.

Our non-GAAP gross margin improved to 26% compared with 19, 5%.

In the fourth quarter last year.

Our non-GAAP operating margin was 9% compared with seven 4% and Q4 2019.

And our non-GAAP net margin was 10, 2% compared with nine 8%, Inc. Q4 2019.

Now, let me move on to our financial details.

Specified all of the growth rates are on year over a year term.

Cost of revenues increased by 19, 6% to RMB, two 4 billion for the fourth quarter, primarily attributable to the inquiries and revenue share and seats and content costs.

Revenue shown on fees and content costs increased by 29, 8% to RMB 2 billion for the fourth quarter, primarily due to the inquiries and revenue sharing fees.

A relation to higher live streaming revenues and then a increase in spending and esports and self produced content.

As well as on content creators.

And he is costs decreased by 26, 1% to RMB 167 million for the fourth quarter, primarily due to improved and management's and bandwidth costs and continue a technology enhancement efforts.

Gross profit increased by 28, 21% to RMB $598 million in the fourth quarter and.

Gross margin increased to 20%.

For the fourth quarter.

Research and development expenses increased by 21% so on.

RMB 216 million for the fourth quarter, mainly attributable to increased personnel related expenses.

And marketing expenses increased by 63, 2% to RMB 193 million for the fourth quarter, primarily attributable to the increased marketing expenses to promote the company's content products and services and brand name as well as increased a person's malware.

Interest expenses.

General and administrative expenses decreased by 3% to RMB 96 million for the fourth quarter, mainly due to improved management efficiency.

Operating income increased by 84, 4%, one and 187 million four and a four.

For the quarter and.

Operating margin increased to six 3% for the fourth quarter.

Yes.

Non-GAAP operating income, which includes share, but which excludes share based compensation expenses increased.

And 46, 5% to RMB 269, and then for the fourth quarter and non-GAAP operating margin increased two 9% for the fourth quarter.

Net income attributable to a inc. For the fourth quarter increased by 58, 6% through on.

RMB 253 million.

And non-GAAP net income attributable to <unk>, Inc. For Q4, which excludes share based compensation expenses gain on fair value change of investments and equity Investees and investments and.

Equity Investees partial disposal of a big investments net of income taxes increased by 26, 5%.

RMB 300, a $6 million.

Diluted net income per ads was RMB, one point or a five.

For Q4 and.

Non-GAAP diluted net income per ADR was RMB 127 for Q4.

A strong December 31, 2020, the company had cash and cash equivalents short term deposits and short term investments of RMB 10, 5 billion compared with RMB 10, 8 billion, a sort of September 30th Who's on in 'twenty and.

A decrease was primarily attributable to the land use rights acquisition of approximately RMB 800 ton Levy and unfortunately no.

Remember in 2020.

Net cash provided by operating activities was RMB 459 million with a fourth quarter.

Moving on to our full year 2020 results.

Total net revenues in 2020 increased by 33% to RMB 10, 9 billion and.

Streaming revenues increased by 29.

And then.

Two on from a $10 3 billion.

In 2020.

Primarily due to the increase in a number of paying users and then average spending per paying user on and their lives.

The increase and a number of paying users was primarily driven by the company's overall user growth.

The increase and the average spending per paying user was primarily driven by the enrichment and enhancement of content products and services.

Advertising and other revenues increased by 51, 3%.

RMB 600, a $3 million in 2020, primarily driven by the increasing and diversifying our advertiser base, mainly attributable to strengthen recognition of a strengthening in cash.

China's online advertising market.

Cost of revenues increased by 25.4% to RMB eight 6 billion in 2020, primarily attributable to the increase in revenue sharing fees and content costs and.

And with costs and personnel related costs.

Revenue sharing fees and content costs increased by 27, 6% to RMB seven 1 billion in 2020, primarily due to the inquiries and revenue sharing fees.

Relation to higher live streaming revenues.

And then the increase in spending esports and self produced content as well as on content creators.

Bandwidth costs increased by nine 8%.

RMB 879 million she's on 'twenty, primarily due to a increasing bandwidth usage as a result of the company's laundry a user base class.

Currently offset by improved management and bandwidth cost and cash.

And you can be.

[noise] technology enhancement efforts.

Gross profit increased by 53% dry and be to read them and in 2020 and gross margin increased to 28% in 2020.

Research and development expenses increased by 44, 3% to RMB 703 for me and in Tucson and 'twenty.

Mainly attributable to increases in personnel related expenses.

Sales and marketing expenses increased by 21 on 100 per zone.

RMB 558 million in 2020, primarily attributable to the increase and marketing expenses to promote the company's content product services and brand name as well and increase.

And related expenses.

General and administrative expenses increased by 26, 1% to RMB $445 million in 2020, mainly due to the increase in personnel and related expenses.

Operating income increased by a 177, 4% to RMB 725.002 million 20, and operating margin increased to six 6%.

And Tucson Twins.

Non-GAAP operating income, which excludes share based compensation expenses increased by 108, 6% to a.

RMB, one 1 billion in 2020 and.

And non-GAAP operating margin increased to 10, 4% and 2020.

Net income attributable interest.

Greece to buy 88, 9%.

On the 884.002 million 20, and non-GAAP net income attributable to Inc. In 2020, which excludes share based compensation expenses.

And on a fair value change of investments and equity Investees and.

And watchman and equity Investees partial disposal of a business investments net of income taxes increased by 68, 2% to RMB, one 3 billion.

Diluted net income per eds was RMB, three four and seven one and 2020 and non-GAAP diluted net income per ads was RMB 529 and 2020.

Net cash provided by operating activities was RMB, one 2 billion with a full year of 2020.

With that I would now like to open the total three Hudson.

Yes.

Thank you, ladies and gents and we would now begin the question and answer session.

If you wish you asked your question. Please press star one on your telephone and wait for your name to be and now.

If you wish to cancel your request. Please press the pound all husky flow did benefit us all participants on today's call. If you wish to ask a question from management and Chinese police immediately repeat your English you're a question in English. So once again, ladies and gentlemen, if you wish you off that question.

Please press star one now.

Okay.

Your first question comes from Thomas Chong from Jefferies. Please ask a question.

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And my question is about I'll try and to try and give one Oh look okay and then determine a comment it's about how we should think about stepping back and Neil and the news a growth trend obligations.

On a bigger head, Okay management also Colombia, and it's about our strategies all day.

Gaming and a long game.

Thank you.

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Daniel and Matt.

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On the day to day to day to day.

Good day units opening from a gambling stage.

And we think these intelligent and to him on Wednesday.

A J your question again.

There's a key variable.

And then come in a way.

It goes through the social and not a long way body job.

There are some delay on that.

Yes.

Yeah.

Hi, Alex from say, a floor and I misheard that.

And why do you do a quick question on Mr. Dong has I'm sorry.

A ticket hardest and so, Florida, where a 2021 and I wonder a business I and we actually have some a chaparral and stretch it a focus firstly on a life driven business, where they'll try to force we arbitrate.

Opportunity that's provided by the news on Patel.

Potential fall back to a gauge and.

That and separate and is already for a launch later this year, that's where they're open and strengthen our competitive advantage. Meanwhile, what worked a should it go away and focus on.

And it was quite a nice a license number line.

And we'll sell Christian was taught them and they saw that they were and can enjoy a better is worth quite a bit and now.

And our Fox, one and Wow.

So.

And that's an effort on it and sell creature a ticket sales.

Sure.

So a light.

Whereas the added debt and aged a content library.

And with US until we're a life changing business a mask I will talk about our ambitions for it and the windows business and all have previously communicated a lot.

And that's really a O L shop business that potentially require a say a relative to the long lead time for us, but that's a good there's not a debt.

We'll monetize and actually a draw and.

That was a when you have called out and it has such a quarter. If we actually have already a same dollar probably only a dog, although neither a business as well where a ship.

A radio business and it's actually a leg of a 40% right now.

And Oh, there's a little thing part for the video business is to bear with me and all of them all and.

And if there is provided for those kids.

Going forward well liked to maintain our advantage, where they all day long a business, Oh, Wow, triage and inkjet weighted bachelorette and their lifestyle and business together with a windows business and.

And a we actually have already tried it somewhat of a standard and it's actually making a debt asos and.

And net Oh.

Well a talking about it.

And.

Other business a success that way, we'll put a focus on which is a game communities Oh. They are in communities, a guide and plan to and integrate with total related information and and is it and really changed the know how and now.

Wage and so and incorporate all of that kind of a so is it on our platform. That's on a there, whereas a year that can have a one stop shopping experiences.

And I will now go and inside of a.

Yeah.

Our core and similar to what we used to do in the past we will continue our such a focus on them.

They come from Kara such as outdoor traditional sports and it's a cheap and tried to strengthen a call isn't a content on those shown on that.

Acquiring new users on a mark.

And having a set and matched a study about a black and white with Matt and I will.

First some color I'll be honest and watch it on all four.

For the Nemo kidney and he is here a what we will focus on is not only choose Dresden, and our a well positioned and they.

And at least and countries, but also try to construct a comprehensive ecosystem.

Well, we will actually focused on a.

A break even point and just for each of the countries that we're off on it and and they try to downsize a the business and those contracts who are a which are a lot which had a loss making.

So a was that means that we will just a strength and our leading position in southeast Asia.

Asia and countries and a total NATO countries.

A hour and you just I'll look for it and alerts a week.

And cats and it will take the other pets and of course.

A central Thomas and I think you know with a Mr. Johnson remarks on our growth strategies in 2021 would believe that users and revenues will continue to increase this year.

On.

That's a gain versus non game strategy and obviously, our focus is still on game content and.

And Mr. Don just mentioned, but of course non game content is also important and apart for our monetization. So we will continue to invest in game content to help us to grow more users and we will also invest in the non game content and for us to improve on monetization.

But of course and for some of the non game content categories. If we see them grow to a certain large scale. We will also we will also trying to invest more and those content.

With and potentially cultivate a for a new users and the future for from those content categories.

I hope this answers your questions a.

And now.

Thank you. Your next question comes from Lei Jun from Bank of America Merrill Lynch. Please go ahead.

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I hope you're all well.

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I think mad men for taking my question on to a question on airports and Oh can you give us a some oh look how the competitive landscape and country, a country wide and especially in guidance or any state a second day like a thank you mentioned that your investments and esports and how we do real let's say a content itself.

Can you gave us some more color on your accounts I imagine a inside and in 10 states on tier one banks.

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Handful of guidance.

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And so and good day.

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So a question, especially with both new and.

And.

And don't split and a platform as a way.

And what you would say that for the weighted quite deliberately and price shocks.

And what day I, thank them for their lives and this is true on a co working on their existing and Richard bird and and a leading English choose a life children's all catches and a life changing visits respectively.

But the last two balance shapes blocked by the conversion to a red has already a comes in and and I would say Oh, if all else like that and I would say a little hard to enter into the share. It a try to cultivate a better and a quality a pool of the Bronx.

And a construct a hero acquisition Apple Cisco was a live streaming business, a and the women with a S. A a is at a and I share a leading position compare with a video platforms.

Especially on a way quality content and a quality work has judged on.

And secondly, our monetization capabilities.

He is a way are superior to almost need a platform, which I would say so basically a way to think the competitive landscape and spent a lot of chili's and this hasn't really changed much and cash.

And I will take two or a question.

A real life in terms of the constantly investments this year, we will still focus on.

Game content, such as obviously, one important factor is the E sports tournaments, and we are pretty much I'm going to have a comprehensive and pretty much all on most of the important esports tournaments.

And we will also increase on the self confidence and to help grow our users further.

In terms of video this year and we do plan to add additional investments into doing the deal and for.

Or a future user growth and and we believe that if we could have a successful video business is we're on not only a paved a way for future user growth, but also a b.

A a monetization opportunity and the future.

This officer Christian and.

Ex.

Thank you. Our next question comes from Alex Liu from China Renaissance. Please go ahead.

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And I'll keep on going up on China.

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Prepared remarks out on the bachelorette and for years.

And that you know there's a there's a sizable upward on user so that's.

Come from tests and property right now and this is not really in our reported.

And could imagine and share some color on how to further from this group of users. So how should we think about like a monetization roadmap and.

The monetization potential.

And as far as the school from users. Thank you.

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And Jim you, all still kind of G. A hail and the day you.

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Interest income.

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And so on a lot of a new cheaper and.

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And.

Alright, and I got a translation I will provide some updates about the uncle and cooperation that we have a attention by a the year and FY 2020, one we have actually and connecting for alkali and streaming content upon a almost.

Funny and Samsung handsets and are also a stockpile of pensions pros on that.

And cool global edge, and a king wildfire and proud that simple linking them when a chat and live streaming and mini programs and mobile chip here, a gaming center and.

And that all of US here, a enjoying a spring festival, we actually.

On the waiting list.

And Oh, that's where it made a personal and left and and we have cooperating with and going into spring Festival.

Currently.

The traffic slots by those App channel has a win and it has.

And is not counting on.

And the a quarterly will explain it and they use a powers and the first quarter and channel has a leaner company to around 20 million I mean, he is mature and so relative to a little less compelling from switch a Q3 is a a school holidays and summer holidays.

And and Tencent.

A collaboration on Athena and site with Tencent and we actually have just a Brian a nightmare on.

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Specifically with Banfield NVA agreements and we actually have and discuss that.

And what does that change or influence and exploring more opportunities to better monetize it.

And I think they all day is watched one of them and it's actually a serving as a major traffic anything that's on a lot of with it but it's a country and they're a little monetization and.

And which is why we're trying to work with a P J sport.

And that is placed.

On a test and could take more opportunities.

And my position side and.

And and so on and.

Better and it gets you there is a we are trying to a work with Tencent Shaw and it's a great.

To break through numerous tests and thing I E.

And a couch shale to a life better class functional or a class platform experience for damage.

And that we can provide prison a life.

On a recommendation on a big Oh and precise targeting.

And so that there you go and get a yes.

Well the experience can be improved.

Yeah.

That's it.

Thank you a next question comes from Tien Ho from Th capital. Please ask a question.

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Took a tweet so that's a good sign and so yeah.

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I play it all it still with hopes of a west coast why take one day kind of a trip a break even point and.

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Promising cause a rather than a growth of the ores as mark had a it's actually on a search right now and affordable national markets.

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And consider it as a besides debt or more of a with a smooth for us and to try to makes a video business. Its a crossover us well on a wait and I'm sure wrapped a some certain market share for as a medium business and the aimed at a cheaper.

And in addition to the weight of a test whether it's a a quoting or I run a English and it is we actually had a wireless and in terms of the Africa moving so a yeah. It seems that a platform.

Yeah.

Yes.

Alright. Thank you. Your next question comes from Vincent Yu from Needham and company. Please ask a question.

Although cause you wanted to and a worker and you hear Don again, he's a true kind of consume a bet on it.

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And this was a cost to the regulatory got doing.

Second on November 20, and 20, thank you.

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Okay.

And that's why you have a first question regarding moving and actually they're a large that's old news now and consider it as a potential blockbuster games, one and yeah, but that's my husband and a half mobile a and the second one is a legal a line of mobile and a probably a there is a channel.

And that would show a day potentially launch a interest rate and then.

Probably on the other way on.

But because they're a us as a English channel and platform and especially on quite a sell it at a local news and and so we're on a rec or a picking one a class.

A quick one.

A prolonged and and operate it and you'll get it.

And on track with a platform and all.

And we have confidence that the launch of force Neil a gain and so it was with a long half life, a new organic way.

On a four hour and a true position.

And so it won't know a its a ball on which to L a or a wave or the way actually Gogo Inc.

And we'll hear away our debt Oh wait a block here and that's a really cool.

So from a real blow culture, and a contract to a J.

That's a name and a gain related to Apple a big tenants. So we are a way with all of them.

There was a launch anyhow, so a small games and here.

And that's why it's such a question.

And thank you central loosened and before.

A question for them and see some of them and a regulatory changes.

And do you have a being a probably read the news and Inc.

And at the beginning of Tucson, and 'twenty, there have been a lot of the government's attentions on the industry and.

And I have been closely monitoring and following a regulatory guidelines and.

And a currently we are still waiting for the details of the a potential new guidelines to come out and and then we will definitely fall a little people on and come in and you've got new guidelines and rules when it comes out and a so for for a moment.

And we believe that the government guidelines would be better a regulated industry and.

Essentially for the long term healthy growth of the industry. So we believe that even if there might be some short term and use them to offer a little bit rules on the long term impact should really be a minimum.

But of course, and we will wait for the details of the new guidelines and update investors at that time.

And hope this answers to your questions.

Yeah.

How are you. Thank you all for your questions and I'd like to turn the call back to a company for closing remarks.

Thank you all for a joining our conference call today, if you have heard as much and feel free to contact IR app without a comment and I look forward to speaking with a in the next quarter and care.

This concludes this conference call you May now disconnect. Your line. Thank you.

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[music].

[music].

Hello, Ladies and gentlemen, thank you for standing by for the fourth quarter and full year 2020 earnings conference call and hopefully we are inc. At this time all participants are in a listen only mode. Today's conference call is being recorded and now I'd like to turn the call of a chimney.

Dana Cheng.

<unk> Investor Relations. Please go ahead.

Well after a one and a welcome to 2021 quarter and full year earnings conference call.

And its financial and operational results were issued earlier today and all posted on line at all.

The earnings press release by visiting the IR website at IR Dot dot com and <unk>.

With me on a call it will be available on the eye on watch that and feel hours okay.

Participants on today's call will be Mr. Huang Jia Dong, Chief Executive Officer, a courtyard and yes, Catherine will chief financial.

Management, and well begin with prepared remarks, and Nicole and food.

There's a Q&A session.

And one away from a P&L. Please note that today's discussion will contain forward looking statements made on Earth and safe Harbor provisions and I'm thinking of a private Securities Litigation Reform Act, that's a 1995.

Well it wasn't a day magazine lobbies here and a wait and authenticity and.

So that's the kind of and as we've talked me and being a piano it differently from that it's perhaps a bit.

Further information on where the money moves on and all the risks and uncertainty and I think what do you think is a combination of contractors and other public filings and felt like a U S.

And I E.

The company does not assume any obligation to update any forward looking statements, except as required under applicable law.

Please also note that class earnings press release, and this conference call on.

Discussions and although there is a GAAP financial information, that's always Oh and updated non-GAAP financial metrics.

That was a press release contains a reconciliation of the Bom and all day today.

Non-GAAP measures to the I don't know maybe a month.

Directly comparable GAAP measures.

I will now turn a call or two our CFO and Ms. Catherine Liu Goldman and bringing his prepared remarks on behalf of our CEO, Mr. Huang Jia Dong cash.

Catherine Please go ahead.

Thank you everyone for participating in our conference call today, I am pleased which delivered a today's opening remarks on behalf of Mr. Don.

Yeah, a very pleased to report another quarter of solid performance across our businesses, allowing us to finish 2020 on a strong note.

Total net revenues for the fourth quarter of 2020 increased by 21%.

A year two close to 3 billion RMB.

While full year revenue crossed the 10 billion RMB Mark for the first few times.

We believe on enhance a monetization capability sets a solid foundation for us to reinvest into the business and sincere and our.

Our future.

Robust user growth and higher user engagement also continued to underlying our ability to execute well.

Mobile and made us a free online, which 90 $79 5 million in the fourth quarter and.

Year over year, a growth of 29% and.

A net addition of $5 million compared to Q3.

Further reinforcing our leadership position on a mobile and.

So mobile growth was driven by the continued buildup of our quality content library, and especially was esports tournaments and entertainment program.

Cost improvements as well as marketing activities.

Meanwhile, we are like Adp's Mexican months, a retention rate named <unk>.

70% in the fourth quarter.

Driven by mobile growth average M, a youth and young.

In the fourth quarter increased by 19% year over a year to $178 5 million.

Users will be a lot of increased.

Increased by 18% year over a year, two 6 million in the fourth quarter and.

And notably, Iran, 80% of our paying users paid will move on devices and mobile users contributed to more than 85% of on.

Your line screening revenue this quarter.

And is now fully endorsed our mobile strategy focus as we continue to allocate resources to grow our mobile user base.

The growth.

Gross financial and operating matrix validates a strong appeal of our content a T.

Moving such sound results and missed a pause.

A global pandemic proves the resilience of our business and represents an important milestone for our company as we move forward.

We have also committed to creating more immersive experiences for our users.

And the fourth quarter.

Our open platform for a third party application developers continue to gain popularity.

And a fourth quarter.

And want to hungry tools available across the platform and over a 400000 broadcasters have used these tools during their streaming sessions.

Most of the tools a game centric offering smart assistance to broadcasters to better engage users.

Since we officially launched our cloud team and platform July.

In November and last year.

We have been able to reduce latency to deliver and industry leading level of user playing experience.

Thanks to our continued technology advancements.

And our average sales and Tom.

And for users.

You line has now reached around 90 minutes and.

Indicating higher engagement.

We have also started efforts and the integration of the cloud gaming and function into our core and we all live streaming on <unk>.

Casters to better interact with users.

Now moving onto our collaboration with Tencent and the fourth quarter average and a youth who watched the non live streaming content from tens and platform.

Which are not counted in our reported and they use what's a run 20 million we gain we had a game center and <unk>.

All things remaining on the most popular channel.

On the broadcast or a front.

And we all have collaborated with Tencent to help all broadcasters receive greater exposure using pension scheme communities.

Further and increasing their influence for example, the order a teams.

Video recently cooperated with a celebrity broadcaster and we are.

As a platform to release the broadcasters voice pockets within the game.

After the release, the broadcast or streamed over 5 million Smith and.

And the in game community a sense.

A greener audience and expanding the potential streaming viewer base.

Next I will provide you some updates on the ongoing merger with Don.

After we announced our potential merger, we still even in October last year, we have made a relevant filings with SEC.

And in China.

Have voluntarily submitted the declaration of concentration of undertaking.

The state administration for market regulation.

Relevant regulatory authority and cash.

Currently the reviews and still in the process.

And we embrace 'twenty 2021.

She will continue to extend the breadth and diversity of our platform and invest in content ecosystem product upgrades and technologies to better serve our growing user base.

This concludes Mr. Don remarks.

Okay.

Let's start with updates on content enrichment and diversification.

In Q4, we broadcast at 149 third party E sports tournaments, among which the top tournaments included.

Well worth Tucson, and 20 E.

E a fun.

And amongst a markup fall season of PPL, and PCL and exclusively broadcast it.

National Electronic sports tournament.

S T.

Total viewership for these tournaments, which drove on 665 million and the fourth quarter.

Presenting on a 24% year over year growth.

As far as our self produce a content, we organized a 48 esports tournaments and entertainment shows and generated a total viewership of $109 million.

Representing 53% year over year growth.

The top performing self produced esports content and the fourth quarter and include our longstanding pop GE event.

And our TMC season, eight and our commentary program for L. A words from Shaw S 10.

In PMC S. A.

Yeah.

There are eight international team.

Also joined at a competition for the first is on.

And then the success of this global participation is a further testament to our ability to organize high quality esports events.

Among the entertainment PTC shows this quarter, we have losers and altered a chess and Riyadh.

Sure.

The voice of who we are and outdoor talent show and we are calling from carnival season on three <unk>.

Next a martial arts competition have gained popularity and we believe such growth will continue to improve user stickiness and chaos.

And that's it.

Turning to our overseas business and May use a overseas business was around $30 million in the fourth quarter, representing a 50% year over year increase.

Also achieved a leading market position in search and countries.

And had some successful monetization accounts through our localized operational efforts.

Next I will walk you through our financial highlights.

In the fourth quarter, our total net revenues grew by 21% a year over year to close to RMB 3 billion.

On a live streaming revenues increased by 20% year over year to RMB, two 8 billion in the fourth quarter.

The girls was primarily due to the increased number of paying users and the increase in revenue per paying user both of which.

And if you're over a year.

Advertising and other revenues increased by 45% year over year to RMB $175 million in the fourth quarter of 2020.

Primarily driven by the increasing and diversifying a number of advertisers.

[noise] our profitability continue to include this quarter given the leverage we have in bandwidth costs and our operational efficiency.

Our non-GAAP gross margin improved to 26% compared with 19, 5%.

And the fourth quarter last year.

Our non-GAAP operating margin was 9% and.

And was seven 4% and Q4 2019.

And our non-GAAP net margin was 10, 2% compared with nine 8% in Q4 2019.

Now, let me move to our financial details.

Specified all of the growth rates are on year over year term.

Cost of revenues increased by 19, 6% to RMB, two 4 billion for the fourth quarter, primarily attributable to the increase in revenue share from seed and content costs.

Sharon on fees and content costs increased by 29, 8% to RMB 2 billion for the fourth quarter, primarily due to the inquiries and revenue sharing fees.

Nation to higher live streaming revenues and then a increase in spending and esports and self produced content.

And as well as on content creators.

And he has cost decreased by 26, 1% to RMB $167 million for the fourth quarter, primarily due to improved management and bandwidth costs and continue a technology enhancement efforts.

And with profit decreased by 28, 1% to RMB $598 million in the fourth quarter and gross margin increased to 20% for.

For the fourth quarter.

Research and development expenses increased by 21% to RMB $216 million for the fourth quarter, mainly attributable to increased personnel related expenses.

And marketing expenses increased by 63, 2% to on.

RMB 193 million for the fourth quarter.

And really attributable to the increased marketing expenses to promote the company's content.

Services and brand names.

Well on increased personnel related expenses.

General and administrative expenses decreased by 3% to RMB 96 million for the fourth quarter, mainly due to improved management efficiency.

Operating income increased by 84, 4% swarms and 187 million when a fourth quarter and the.

Operating margin increased to six 3% for the fourth quarter.

Yes.

Non-GAAP operating income, which includes share based which excludes share based compensation expenses increased by 46, 5% to RMB 269, and then for the fourth quarter and non-GAAP operating margin increased two 9% for the fourth.

Quarter.

Net income attributable to <unk>, Inc. For the fourth quarter increased by 58, 6%.

RMB $253 million.

And non-GAAP net income attributable to <unk>, Inc. For Q4, which excludes share based compensation expenses gain on fair value change of investments and equity Investees and investments.

Equity Investees partial disposal of these investments and <unk>.

Net income taxes increased by 26, 5% to RMB $306 million.

Diluted net income per ads was RMB 125 for Q4 and non-GAAP diluted net income per ADR was RMB one two summit.

Q4.

As of December 31, 2020, the company had cash and cash equivalents short term deposits and short term investments of RMB 10, 5 billion compared with RMB 10, 8 billion as of September 30th Who's on.

20.

The decrease was primarily attributable to the land use right acquisition of approximately RMB $210 million in Foshan City in November 2020.

Net cash provided by operating activities was RMB 459 million with a fourth quarter.

Moving on to our full year 2020 results.

Total net revenues in 2020 increased by 33% to RMB 10 9 billion.

<unk> revenues increased by 29 and 3%.

Two on a $10 3 billion.

In 2020.

Primarily due to the increase in the number of paying users and then average spending per paying user on from their lives.

The increase and a number of paying users was primarily driven by the company's overall user growth.

The increase and the average spending per paying user was primarily driven by the enrichment and enhancement of content products and services.

Advertising and other revenues increased by 51, 3%.

RMB 600, a $3 million in 2020, primarily driven by the increasing and diversifying advertiser base, mainly attributable to sprints and recognition of who we are strengthening and <unk>.

China's online advertising market.

Cost of revenue increased by 25, 4% to RMB eight 6 billion in 2020, primarily attributable to the increase in revenue share on fees and content costs and.

And with costs and personnel related costs.

Revenue sharing fees and content costs increased by 27, 6% to RMB seven 1 billion in 2020, primarily due to the increase in revenue sharing fees and in relation to higher live streaming revenues.

And then the increase in spending and esports and self produced content as well as on content creators.

Bandwidth costs increased by nine 8% to RMB 879.002 million 20, primarily due to a increase in bandwidth usage as a result of the companys larger user base.

And really offset by improved management and bandwidth costs and continued.

Technology has meant efforts.

Gross profit increased by 53% to RMB, two 3 billion in 2020 and gross margin increased to 28% in 2020.

Research and development expenses increased by 44, 3% to RMB 703 4 million in 2020.

Mainly attributable to increases in personnel related expenses.

Sales and marketing expenses increased by 27 point comfort zone.

RMB $558 million in 2020.

Primarily attributable to the increased and marketing expenses to promote the company's content product services and brand name as well as increases moving out.

Weighted expenses.

General and administrative expenses increased by 26, 1%.

RMB $445 million in 2020.

Mainly due to the increase in personnel and related expenses.

Operating income increased by a 177, 4% to RMB $725 million in 2020, and operating margin increased to six 6%.

And 2020.

Non-GAAP operating income, which excludes share based compensation expenses increased by 108, 6% to RMB, one 1 billion in 2020.

And non-GAAP operating margin increased to 10, 4% and 2020.

Net income attributable to flow.

And increased by 88, 9%.

RMB $884 million in 2020, and non-GAAP net income attributable to Inc. In 2020, which excludes share based compensation expenses.

On a fair value change of investments.

And equity Investees, and watchman and equity Investees partial disposal, a fitness investments net of income taxes increased by 68, 2% to RMB, one 3 billion.

And I noted net income for Etfs.

RMB 371 in 2020, and non-GAAP diluted net income per ADR was RMB 529 and 2020.

Net cash provided by operating activities was RMB, one 2 billion with a full year.

And of 2020 accounts.

With that I would now like to open the call to questions.

Thank you, ladies and gents and we will now begin the question and answer session.

If you wish to ask your question. Please press star one on your telephone and wait for your name to be a now Inc.

If you wish to cancel your request please.

Please press the pound all husky flow did benefit us all participants on today's call. It's a ratio as a question from management and Chinese police immediately repeat your English your question in English. So once again, ladies and gentlemen, if you wish you all for a question. Please press star one now.

Your first question comes from Thomas Chong from Jefferies. Please ask your question.

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And life and business, where they'll try to force we opportunity that's provided by the new.

Total fall back to a point.

And that and sometimes only for a launch later this.

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Is that with the added debt and interest.

A content library.

And the pension so a life changing business a lot.

I will talk about our ambitions for the video business and we have previously communicated a lot.

And that's really a long shot but that's okay.

And I believe a class a relative to say a long lead time for us, but that's a good there's not a good to monetize and actually saw that and.

And that was a won't have called out a England has such a quarter. If we actually have already seen a dollar.

A promising results out of a native business as well, where a ship and made a business, it's actually a leg of a 40% right now.

And Oh, well 10 parts for the video business and to deal with me on them all.

Morning experience, providing and for those cases.

On a going forward well.

And I still maintain our a lot on page four they all day long a business, Oh, Wow, triage and inkjet weighted badger.

A strong business together with a windows business and a we actually have already tried it and some of them and it's actually making a bit asos.

And net.

I will talking about.

And other business a sector that we will put such a good focus on which is a game communities Oh they are in a community.

On slide they plan to integrate what day related information and has it and really teams that know how and knowledge chill.

English weighted all of that kind of the services on our platform that goes on.

And there with a users can have a one stop shopping experiences.

I will now.

Got it.

Uh huh.

Our core and similar to what we used to do in the past a.

We will continue our such a focus on the come from general such as outdoor traditional sports and it's a cheap and tried to stress and equal.

And content on those showrooms and Oh pardon me here and I'm going to market and.

And having a study matched a study and not about when you go back in line, if not I will share.

Some color I'll be honest and from our kids and.

For the Nemo PVA and he's here Oh, what we're really focused on is not only choose chosen a hour a week.

Asia is a.

And we've been countries, but also try to construct a comprehensive ecosystem.

And Meanwhile, we will actually focused on.

A break even point and therefore each of the countries that we operate.

And and the try to downsize a the business and what countries, who are a which are a lot which had a loss making.

So a was that means that we will just a strength and our leading position in south East zone.

On Asian countries, and a sell NATO countries. So there's a.

And <unk>.

And just I'll look for it and low to me.

And catch a will pick the other person and that's one.

Essential Thomas I think with Mr. Johnson remarks on our growth strategies in 2021, we believe that users and revenues will continue to increase this year.

And gain versus non game strategies, obviously, our focus is still on gain content.

Mr. Don just mentioned, but of course non game content is also a important part for our monetization. So we will continue to invest in game content to help us to grow more users and we will also invest in the non game content and for us to improve on monetization.

But of course for some of the non gaming content categories. If we see them grow to a certain large scale.

He will also.

We were also trying to invest more and those content categories and potentially cultivate a for a new users in the future force from those content categories.

Hope this answers your question and not.

Yeah.

Thank you. Your next question comes from Lei Zhang from Bank of America Merrill Lynch. Please go ahead.

Oh, Hi, a ronnie and felt like that.

A hospital.

Are you on a whole all young but once you dig a sure sounds and don't go on ballroom and thought was Douglas on the hard me a woman to outgrow all cutting on you'll keep your border and go down and I think go find timber notes you show them on kind of Guy and shipping. So I'll just read it all time and that's almost a one yet we're tied to a woman somewhat and call them argue yes cause you a cotton on seeing some quite a lot of interest.

So you can talk Josh on the article with a posture all you want and Mike on how you see docker and always I, yeah, a shipping their own words, I can't think about chat and finally, and think goupil and Jersey taped out and $3 DAU and MAU.

Yeah and from key, though and you go Canada on their own.

And you've got a total it up and you've got that and you could see a white box.

I think management for taking my question on to a question airports is.

Can you give us a some ultra low power of a competitive landscape, he and country to country wide and especially in guidance or any state a second and I think bill mentioned that your investments and E. Wallet. So that we do a real estate a content. So can you gave us a little color on your accounts I imagine a inside and in 10 states on tier one banks.

And whatever it is.

Uh huh.

Suzanne on the times.

Excluding the impact of a b.

He's on a quite a zone.

As a board she took a gene and usually you seem to be on.

Sure.

And also so easy and.

And then Jennie O the to the Sydney Opera tool.

And just as bullish as pool and both of them.

That's a.

So again from a need of our buy box.

Good day, and then $10 per class a class.

Two of them and then send piece just a.

And what happens a little John's a wall.

John and Siobhan.

Sure.

Thank you Tony you can put a chip.

And so you just saw and went to work and get them with all our channel.

And India.

And so and good to go.

It looks like a hung yeah, how does it all plays it out and give you answer that.

And all of us as a pan diseases as well.

And all of us as a thought disease and kind of a indicator and answer.

And so they need a I forgot if on me.

Okay.

Okay.

That's a little on our interest.

Okay, and just a woman and she said she gave a she's.

She's a bluffing tied to them and debt.

And for the channel.

Oh, you'll just on.

But a whole a door to bet on that.

And then Dave.

It's a good show.

Yeah, and then if I'm in the same day.

And Diana.

Good day.

Oh.

Just a.

So don't use on them.

The juicy devoted a good emails on unintended on being a lot about it.

And for lunches highlighting a coordinator.

Yeah.

Alright, as a template channel on the money and a competitive lens.

A question, especially with Brookdale and ship them.

And just building a platform.

Two a day that floor.

And that's what it's like a deliberate and I show a.

And what I can go on for their lives and this is true on converting their existing and Richard Bird and.

And you would choose a life children's a purchase and a life changing visits respectively.

The last two balance shapes, a lot by the conversion should I read a has already a comes in and and I would say Oh volume fall, where it's like Darren I would say a we don't have to enter into the pure it a try.

Try to cultivate a better and quality all of the block catch it and.

Just a year or acquisition Apple just health was a live streaming business.

And the women with a S. A a is at a and I share a leading position compared with a video platforms, especially on a very quality content and the quality of broadcasters.

And secondly, our monetization capabilities with a.

He is a way are superior to a gross media platform and tower's sake.

Basically I always think that competitor a landscape with a lot a Chinese business hasn't really changed much.

And Catherine will take a question.

Your line is.

In terms of the constantly investments this year, we will still focus on.

Game content, such as obviously, one important factor is the E sports tournaments.

We are pretty much going to a comprehensive and pretty much all most of the important esports tournaments.

And we will also increase.

So from a confidence.

To help grow our users further.

In terms of video this year and we do plan to add additional investments into a game video.

And for a future user growth.

And we believe that if we could have a successful video business is we're not only a paved the way for future user growth and kind of also be a monetization opportunity and the future.

And it gets officer Christian and.

Ex.

Thank you and next question comes from Alex Liu from China Renaissance. Please go ahead.

Okay got it I think it seems maybe a question on just how much you know.

Well you got to a future guangxi.

So that's how she and a hotel that you are seeing any price all that and it's helpful.

And it came out and people think about force fastener line.

Josh if that helps you must have a disease.

On a quiet on them if it was on track.

Good to see.

Yeah, a a cultural from Washington on a false with teacher to watch out what's on.

I'll tell you something on a horse such a a twofold you're right. It gets you a shipyard.

The one people hanging off with a cheaper gas and a few items from young and old schieffelin local sharpshooter dimension and you have a shot.

Oh, a friendship ex Manhattan and the pre.

Their remarks on the bachelorette and for years.

There's a there's a sizeable part of users that come from tests and property right now and then.

It's not really an hour.

And I.

Could management share some color on how to further relative from a user.

How should we think about monetization a roadmap.

And the monetization potential.

First these corn from users. Thank you.

And with me.

And Kevin and Jim.

And you are still kind of thing and this is a high on the guidance you.

And you see attempting.

Just a.

And ones.

Uh huh.

Good it's a good sign on.

And then and so that's something a buffalo became a and reaching 18 UCI. So peel out there and there. This year. They will makes you sit on it.

There's a change it to gamble and my answer to a English is what are you able to see.

Oh, we have a chance.

Sure.

Good morning.

It's a good crazy she made the JV income.

Yeah, a little.

And maybe where they're from cheap.

And to go down.

So that adds and on <unk>.

And because it was on and so you did beat.

You may chose a suite.

Good.

Good.

And that's to me.

And congrats again.

He is sitting in a way of Tinder and so you don't have to do.

And we don't want to just say a amazing.

And then Tien tsin and Thailand.

And then.

It's a goodbye and training.

And I'm sorry.

And just from a male coming from time sure.

So the T G I.

And eventually.

And thank you sound as though and she says.

And we've always found on it then you are devoting a desert, Minnesota was keeping smelter.

And just just to your credit line no just a.

Sundar at all times.

Data on interest so and again.

And thinking that it gets on a hygiene.

Jeanne and good a bonding and on and come in.

And found a lot of a new cheaper and.

Yes.

You don't put a dig.

And the taste on what else, we can get a century.

Yeah.

Alright, and I got you.

Information on that.

And I'll provide some updates about the uncle and cooperation that we have a attention by a the younger and FY 2020, we have actually and connecting to have live streaming content on a almost a 20 and downside.

And a also assessed from a panther product.

And coal oil and then on Hurricanes wildfires and pro basketball weekend.

When a cat scan and live streaming and mini program mobile chip here a gaming center.

And Oh here, a enjoying a spring festival and we actually.

Operating with D. A.

And that's where we are talking about a 10th and and we have cooperating with and go in the Spring Festival.

And currently.

On the traffic slots by those App channel has a win.

And it is not contained a and b a quarterly.

Quarterly and will explain on the use of ours and theirs.

First quarter.

And channel has a link from getting to around $20 million. I mean, you can share their relative to a low are compelling and swim.

On a Q3 is the a school holidays and summer holiday and.

The total fee.

Cooperation on a gaming side with Tencent and we actually have just a Brian a site near.

Right.

A agreement with a C T sport.

And handset they block has.

And I feel like Oh.

We don't like and professional Luke L. P L fluctuate.

It's a.

Specific Halloween Thanksgiving and a agreements and we actually have and Thats. The way. It was in terms of exploring more opportune and he needs to better monetize Inc.

One of them.

And Oh base is once you turn around and it's actually a serving as a major traffic anything that's on a lot of with it but it's a.

Countries may be a little monetization.

Which is why we're trying to work with P. J a.

On.

Right.

On a pace and to take more opportunities.

The physician side.

And our income goes up.

And this is there is a we are trying to a worthless.

Sure and it's a great.

To break through numerous tests and thing I E.

We are a challenge to provide better class functional.

Or a cloud.

That's one experience for damage and so.

And that we can provide personalized a recommendation.

Recommendations on a b a.

Precise targeting and mhm.

So there you go.

Experience can be in force.

That's it.

Thank you a next question comes from Tien Ho from Th capital. Please ask a question.

Sure.

Uh huh.

Hum, a teed up and should that you didn't I E.

And you'll see that you'd make on chipotle.

Uh huh.

As a country and proof and larger ones and the yield.

Well it's a.

And with that line shows a D C you'd seen that yet though.

Jim.

Right.

And it wasn't a commercial.

Sure.

On the century, and you'll meal come from Shaw woman.

Yeah.

And.

And you'll see a proportional and just go and either go back on she sees a pay down a cohort and that you see a woman debt.

And should have a peak.

He's on a.

D a.

Yeah, that's a message and what kind of a job woman.

And sort of linear and think a five debt okay.

In 2000, and I'm sure you'll see.

I will take a note.

Do you see that have a golf on the tongue, so what kind of junior and know why you didn't see growth.

And you're back from just anxious.

And you will see more number of Citigroup, Inc.

Several a whole cat woman and Theres a lot of your phone and say.

And at home.

And with that I see.

Oh God and she comes out from that day.

And on turns out and become quite yet.

Okay. So what I'm, saying is that okay. So two questions. One is a I felt like cook a somehow a whatever brought us a nature users and for a user growth.

The gains are a from 10 cents and is that possible for us to bring and the gains from the other vendors from Mexicali and internationally to further grow our user base and paying with a base that's a number one.

And number two you know as a over the last a many years a who you ask real quickly is that they felt like already passed its peak and.

And however, the game broadcasting industry relatively young.

And which area of who we are is going to invest for the a.

Further higher growth in 2000 and central lab.

And she had a.

Hello, and thank you.

Just a theory channel a name to the newer ones.

And that way and so a me too.

Neil It's all day.

E cigarettes.

And so they're going to sustain on a billion.

And they'll create a cheese.

So that's also a station.

Well don't you language and.

And it converts at a table interest and wisdom on them and then kind of on a view that well.

And what's that.

On a sort of issues.

Is there a chance you Dai ichi and keep.

Keep it and those attention.

And I would just need a table.

So you know just a bunch of a monopoly.

And then how does that highway.

And then she sits on me.

And frankly, I don't think that's all of them and don't see any.

And so are they receive and sir.

And when they need it.

And finally, a definitely tool and defined.

And then as a highway series and Italy and debt.

And we're just isn't it.

If you just took the converts.

A table published to them and then you can just.

Oh, and you saw a woman and she says that he and what was happening there Tony.

And then just a took a if a.

And how does this shuang and Ya.

And then go on my mind.

I was on that so and then there's just a leading player.

A lot of someone with it sometimes takes a while there's been a sort of.

And you pointed out it does well and.

And then you have with glass on.

And then just a supervisor and.

So that's a good sign and so yeah.

And just a yoshida she's a shipping.

Buffalo and downtown and quota work a little stripping.

And those switching sue them and union changes all of them and can and will.

You're talking and engineering.

So, it's a ticking down and say okay.

Yes.

Great.

And if you want on them and go.

And then go and then go to the day nausea, and you know the thing.

So it's just a.

And I was just sitting there.

Sure.

A list.

Just a few of the seemed to.

To give you a seamless.

Chad.

Yeah.

And so and then it's.

It's usually a day.

<unk> total debt.

Yeah.

Alright.

Alright, I thought as a translation income.

Our first question on a lot of whether there is a theater.

For us to block has a specific OE on pads and.

Okay.

Actually it's not.

And because currently a type a awards are not a back up and fun and games and a market, especially with a landscape arena. So it is more of a whole a dog.

And industrial situation right now.

Well, a rather than as a proposed a of our of our activity and the market.

And speaking on a fee.

And last time, one is here, our I will start with and OSV and.

Our kids.

And that's why I always still with hope to always just want to take one day kind of a trip a break even point and.

And we think he is quite promising cause a rather than a wealth of the ores as mark and it is actually on.

A search right now and affordable and that's a market like I said earlier.

And we'll like to stress on them.

And or if at all hours on a neuron and specifically on the video business.

If you consider it as a defensive or more of a weapon for us to try to makes a reader business. It's a.

Crossover.

And a way and I'm sure wrapped with a certain market share for as a need.

And the industry and and addition to the video business, whether it's a a quoting or are there no English and it is we actually had a wireless and enhance us day after it moving so.

Yeah, It seems that platform.

Yes.

Alright. Thank you. Your next question comes from Vincent you from a meet him and company. Please ask a question.

How does cause a one time a worker, but moving.

And you're going against either a true kind of a consumed on it.

Argument here, where you probably see it on.

You see a hunter and when he starts a should a woman and Tricia you see a company for sure.

Moving on to this should do and.

And John just your Skus human shampoo bar and a killed when distributors, Glenn and secret Jim growth on an entrepreneur tissue.

And Richard pool.

On June one.

Shawn Moon shots, you're going to on the cover.

Sure.

The American and for taking my question on my first question is on the clean.

And one thing and reduces by Tencent on beer.

And several of the actual share morgans will be a schedule to reduce Bart Simpson in 2020, one which give them on choosing between from the one that's companies Inc. Will have the biggest impact on <unk> and Sip.

A quick question. Please on a regular they they treat a guidance I'm convinced from share some comments on a computer interest.

And all up in this.

And of course to the retreat got doing a issues back in one November 2020. Thank you.

Okay.

Are there and just as a woman and thinking and wage and gangs, Japan two day Yoshizawa a minimum we couldn't.

Sure.

Force the way, you're taking on but you go and you hit it should be necessary.

And then there's <unk>.

And on that so.

And you kind of and Canada.

And she was on them.

Just.

And honestly I just needed a.

And the men and women day to day.

And you'll say so it was on me and when you're going through a refinancing.

And so you will need to seize on changing so it's on them in a longer.

Oh that sounds here on your home and they got a tissue boxes two buildings in Houston.

Good for class, a gas or their homes today.

Yeah, She said Oh and that's it.

A good.

This two bullets on what E G. A a midlands and base and that has been made and when she.

And you kind a shot so younger and shame on me cheese that and day to day.

And he or she syngenta.

And then there's a good to hear it.

And more.

Yeah.

And that's why you're on a first question regarding <unk> and.

And actually there are that's a manner and that would consider it as a potential blockbuster games, one and yeah. That's that's my last day and half mobile and a second one is selling a line of mobile and that's probably a there is a chance for them to day potentially launch and interest me and that's what I thought.

Probably on the other way on.

But because they're a us as a English channel and platform, especially on.

And quite a soda ash, a multiple neal and and so where are the rack where people want a.

Right.

And to promote and operates at a gain and on track to a.

Platform and all of those.

And so we have confidence that's a lounge L. A.

And then what.

With a long half life.

Well again weighted.

And a poor hour and a true.

Sure.

And a it won't know a its a bull on which to.

L. A weight on the way actually a subtle with save a relation of here a railroad.

As a way as last year, and you'll have a recruitment well capture and.

And a construct a debt.

And that didn't name and game related to Apple systems. So we are a we will work with our channel was a launch and helps us navigate this year.

And that's why it's such a question.

And thank you a central Vincent and.

And for your question for <unk>.

And some of them and.

On a regulatory changes.

Do you have a being a probably read the news and I think the beginning of 2020 and.

And there have been a lot of the government institutions on a.

Industry and I have been closely monitoring and following a regulatory guidelines.

And a currently we are still waiting for the details of the a potential new guidelines to come out.

And then we will definitely follow people on.

And with governments and.

<unk> got new guidelines and rules when it comes out and so for for a moment.

We believe that the government's guidelines would be better a regulated industry and a percent.

It's really for the loan from healthy growth of the industry.

We believe that even if there might be some short term and use them to a follow the rules.

And the long term impact should really be a minimum.

But of course, and we will wait for the details of the new guidelines and to update investors.

And at that time.

And hope this answers to your questions.

Yeah.

Hey, Thank you all for your questions I would now like to turn the call back to the company for closing remarks.

Thank you all for a little joining our conference call. Today, if you have heard as much and feel free to contact IR app without a call and I look forward to speaking with a in the next quarter and care.

This concludes this conference call you May now disconnect. Your line. Thank you.