Q1 2021 Douyu International Holdings Ltd Earnings Call
Good morning, and good evening, ladies and gentlemen, thank you and welcome to value International Holdings Limited first quarter 2021 earnings Conference call. At this time all participants are in listen only mode. We will be hosting a question and answer session. After marriage.
<unk> prepared remarks. Please note this call is being recorded.
I will now turn the call over to the first speaker today, Ms. Mao Mao Vice President of capital markets are down for you. Please go ahead ma'am.
Thank you Hello, everyone welcome to our first quarter of 2021 earnings call joining us today are Mr Shah.
Chairman and Chief Executive Officer, Mr Meaningful Chief strategy Officer, and Mr. Hao, Cao buckets I think on finance.
Can a virtue of our first quarter 2021 financial results on a well I all our sites and I our job. So we dot com you can also check for replay of this call when it becomes available on a few hours on our site.
I've always thought please note that this call may contain forward looking statements made pursuant to the safe Harbor provision for the private Securities Litigation Reform Act of 1995.
These forward looking statements are based on management's current expectations and observations that involve known and unknown risks.
And certainties and other factors not under the company's control, which may cause actual results performance or achievements on the company to be materially different from the results for my expectation.
Guidance for everything.
Oh for these statements on just make for eight months, India enticing cautionary statements risk factors and details on the company's findings with the SEC.
The company undertakes no duty to revise or update any forward looking statements for selected events or circumstances. After the date on this conference call.
I will now speak on behalf of our chairman and CEO, Mr. Xiaoping Chen.
In the first quarter of 2021, we upgraded our operational fitness and a 30 day improve our operational performance with our average amount you, reaching $191 9 million an average mobile any huge between 59 for one minute.
Meanwhile, our quarterly paying user accounts with 7 billion and total revenues were RMB 215 billion.
In this quarter without the influence of COVID-19 users to be habits has normalized which caused our overall government price to be relatively subdued in the P. M at NAV.
Nevertheless, the breadth and depth of our big century, Livestream platform continues to perform well and attracting more users and building our platform section.
During the quarter on total average and they used increased by 21, 3% year over year.
And $91 9 million, while on average mobile and they use increased fivefold from 5% year over year to $59 1 million.
Fitch and May you go towards meeting chill on by five factors.
Our broadcast on Nuscale.
<unk> spokeswoman the jazz L. P. L. Three things for me one he'd be outbid in 2021 and truck volume per week free 2021 continues to drive our user base expansion.
Secondly, we explored deeper partnerships with game developers and refine our accretion through jointly produced events for different game titles, such as Peacekeeper on off King and league of legends.
We export more organic synergy between day and paint attainments Edmunds for.
From home during Chinese new year, we facilitated seem rupee ablation with both moving pool and liabilities.
To produce premium lifestyle content in our peacekeeper and top G SEC.
Fourth we jumped on our athletes to provide larger accounts.
On video and communities.
Thus, providing users with Badger Geely zone.
Does that work.
In addition, as the pandemic subsides subsided and timeline for possibly Boston pilot on the control eat me opening of interest on Internet to see net to our year over year uptick or P. P. M.
Now turning to our content updates.
During the quarter, we continued to extend our insulin <unk>.
On the esports industry value chain.
Moreover to field a growth engine on our content ecosystem. We further refined our game centric live streaming business, while it was on looking for an hour.
Our video and community pumpkin initiate it.
In order to develop more quality E sports content, we utilize the non scale E for assortment brought on.
Organisers invest in trouble debt.
And sponsors and invested more in hockey team.
We achieved the computer without quoting on.
Broadcasting over 50 large scale esports tournament and self producing over 40 high quality.
We also implemented several innovative features for large scale 20 months from huh.
The balance satisfied users watch bench or come from doing demand.
Especially our top on pumping and boost user engagement.
So we can help you on screen trade for the one for example, we provide users with a diverse oh youre in auction for one video community and like Jamie.
Such options include day meeting one from watching day with Liberty group he'd be out long for a jump up from them on highlights from 14.
Clothing.
Especially like a program designed for Teekay seamless.
Well as did you entacapone.
Thanks for that.
Additionally, during the L. P O spring 2021 broadcom, we supply users excuse it intelligently and definitely mental life Teeny room.
I like to talk to you a few minutes delivers high level analysis and commentary to provide better user experience and image stay on content ballpark viewing options.
And finally, we also added more disruptive event to our mobile totally free 2021.
Which helps you better at such a nice traffic between 12 months and prevent shows the eight other viewing experience for our users.
Stimulate user engagement.
The young such platform innovation, we also worked to develop more in house one of them on IP.
Consider our self to abuse. The adult you Didnt Act on style and put them on for example.
Through this event, we maintained high levels of user engagement during the quiet period after the official told them on and.
It's like enough segments team on it with a lot of talk to me off from them and provide users with more premium and differentiated content.
As we continue to accumulate more for a few video content. We have also established a pyramid structure consisting of three come from peers.
On the top tier video content features P. G C counted for youth through alternate collaboration and by top tier opinion periodically.
While our mid tier content features those could you on mid tier streamers and the platform funds video content created.
On the Bakken is video content cause you for a long tail.
On the video content creators as well as other high quality content.
Meanwhile on la.
Everything from monetization and engagement advantage.
My feeling.
We encourage video content creators to live stream on our platform, which help them improve their overall income and increase the user engagement.
We also recognized vs advantage in content accumulation distribution as well as extension.
Income is almost two months to build up the accounts they do come from cobalt on our platform.
For our communities business for two main function on it.
Moving game and facilitating more interaction between theater in developers seamless and video content creator.
Our particular emphasis on game developer collaboration and increasing our influence among thing.
In fact during the quarter, we organized the subtle it Ben.
Jazz coupon and begin to bring dangerous seamless video content creator day media outlets and gaming developer together.
Most of the community engagement and buzzard for city paid interaction.
Now turning to monetization.
In the first quarter, our quarterly paying users for some of them union with our paying ratio between three 6%.
Meanwhile, our la Yaqui Ping you increased Saturday.
Year over year basis, she on V 285.
We saw the revision call you do shipping behavior too bad of pre pandemic levels.
It depends on it will gradually block on the control in China.
They need to execute a proactive operating strategy centered on increasing user interaction.
Further stimulate users' paying habits and blow a L. P for you.
Going forward, we will work to further optimize our product matrix.
Oh, Hey, Neville.
And enhance our user was all teams.
Through such measures, we should be able to better attract and retain based on high quality paying users and achieve a healthy yoki for new Brunswick.
Finally, we remain committed to refining our content accretion across different segment.
Which should help to further boost our second on when he has he shouldn't efficiency.
We are also making good progress on the R&D from.
During the quarter, we released a new feature that allows seamless to live stream directly suzie on Internet.
By eliminating the process of downloading applications and the balance for jazz Obs and live streaming tool. We have further reduced the threshold for new teammates to stop my opinion on all Catholics.
For cloud games, we tested.
I've seen total which made it easier for that for lunch in Qs It tooth and opinions may play and lifestream gain in Blu ray video quality on all the time for them.
Thereby lowering the hardware.
Barry on traditionally in place for these things.
We have also continued to fortify our overseas.
During the quarter, we've continued to cheap shneur and increase our investment in the overseas market.
Without I won't have any strain on Jamie product Milton country maintained its leading position in Japan.
In summary during the quarter, we maintained a vigorous operating strategy and continue to develop and integrate its counting operation system.
Around our Threep for business.
Cheney video and community.
Efforts have helped us to better position on platform for more sustainable growth over the long term.
On successfully implementing these strategies, we have provided our core user group with significant financing and does paved the way or do you have 30 low <unk>.
Looking ahead, we remain committed to finding our video and commodity business models to create a and integrated content ecosystem with our games country lifestyle business as its foundation.
We also plan to further execute several initiatives in product streamers and content to cautious may improve our overall on transition from Liberty piece in the long run.
With that I will now turn the call to all of us to talk to them on funding Mr. Hao Cao to go through the details on our financial performance in the fourth quarter.
Thank you for Mama Hello, everyone.
Total net revenues in the first quarter of 2021 well on.
M B 211 5 billion.
Net streaming revenues were RMB 2 billion.
It at least RMB two 1 billion in the same period all dependent on.
Yeah.
Advertising and other.
Revenues were RMB 150 for one 1 million.
How do we is RMB 165 million.
I'm, Peter it was kind of 'twenty.
The year over year decrease in live streaming revenues was mainly due to the reversion for us is to think behavior debt.
On the pre pandemic level.
On a different banner.
I can be brought under control in China.
This decline was partially offset by now you've been at implementation for more effective operational strategies, which help to improve the engagement level and pay behavior.
Pete paying users on Perceval in the peer group.
The year over year decline advertising on the other revenues, mainly due to the trained obtain advertisers normalizing their marketing expenditures.
Which were relatively higher in the same period last year due to the COVID-19 pandemic.
China has gradually brought the pedantic on the control arm.
Hi. This expenditures have also returned to day of pre pandemic level.
Hold on for revenues in the first quarter of 2021 increased by five 6% to RMB 1.8, non paid from RMB 1.79 billion in the same period of 10 to 20.
More specifically revenue sharing fees on the content cost increased by $5 four per cent for year to RMB 166 billion.
Because of the Communist increased investments in the broke testing price for esports tournaments.
Gross production.
Proprietary content and the quality of streamers in the overseas market.
But with comps in the first quarter of 2021 increased by $12 six per cent RMB 172, 1 million from RMB 152, 9 million in the same period of time dependent.
This was mainly due to the promotion of the more high partly convenient options and was partially offset by our ongoing development of P. Two P. M. A C D and commodities.
Which have helped improve our final vs efficient efficiency.
Gross profit in the first quarter of 'twenty to 'twenty, one was RMB 260 points I've made it compounded with RMB $185 9 million in the same period up 10 to 20.
Gross margin for the first quarter of 'twenty to 'twenty, one decreased California, one per cent from.
21.3 per cent in St. Petersburg dependent Henry this was mainly due to debt decrease on total net revenues, which resulted.
Yeah increased proportion of revenue share fees and Conan caused for total net revenues in the period.
[noise] sales from the marketing expenses in the first quarter of 2021 increased by $95 five per cent to RMB $209 9 million.
This was mainly due to increased spunk troops and promotions.
For two of them and it's compelling.
For the same period it was kind of turnkey during this COVID-19 pandemic, that's about increased promotional activities for user acquisition.
Research and development expenses in the first quarter of 2021 increased by 19.8 per cent for RMB 111.3 meet them for them.
On Pete.
92, 9 million from the same period of 2020.
This increase was primarily due to additional investments in personnel, particularly in the overseas market.
General and administrative expenses for the first quarter of 2021 increased by 4.1 per cent to RMB.
Eight per 1 million from RMB $84 6 million in the same period kind of pending.
Okay.
Adjusted operating loss in the first quarter of 'twenty, 'twenty, one, which excludes share based compensation expenses was RMB $91 8 million compared with adjusted operating income for RMB 259, 5 million in the same P.
For 10 to 20.
Net loss in the first quarter of 2021 was on be well under 1.8 million compared with.
Net income of RMB 254.5.
Sand per it other kind of tend to occur.
Adjusted net loss in the first quarter of 2021.
It excludes share based compensation expenses separately.
That's the message on investments and income and loss on investments.
What's RMB.
17.7 million.
Adjusted net income of RMB 296 point in mind made it to the same period I'll turn to 'twenty.
For the first quarter 2021 basic and diluted net loss for it is for be 0.19 and on being quite one.
One nine respectively.
While adjusted basic and diluted net loss for it is well RMB 0.1 O arm B 0.1, respectively.
Going forward, we plan to continue exploring new Memphis.
Brady.
Monetization capacity and efficiency.
Additionally, we continue to grow with a focus on.
Further utilizing operating leverage unfairly their sustainable development on Pascal.
This concludes our prepared remarks for today.
We are now ready to take questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys.
To withdraw from the question queue. Please press Star then two.
Please ask your question first in Chinese and then repeat the question in English.
The first question is from Daniel Chen of Jpmorgan. Please go ahead.
One for whole bank on it that's all I want to know what word on look like Yahoo. There for what you guys are for a woman who would be do.
You may use the debt that's what you get with you.
For.
It won't be that actually there on what Jordan, let me.
For the all cause a young failure on interest.
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It all on my kind of on the country.
She says.
Oh on major female you'll watch for.
The volume that I, just don't want from weather.
I would translate myself my first question on X on the first quarter on mobile and then you know we have seen a flow down in the gross rate.
On a full from 5% year over year. So what's the reason behind the effect on crush strength on the overall user engagement level in the first quarter also we are launching on some of the new.
On a basic model cut checks for Shelby there so what's it going to be.
What's the implication to the overall U S that'd be great. Thank you.
Thank you for our pets for them.
Year over year engraving, and maybe ill endeavor for up to a quarter or what's the mandate there too.
For other cuts you've made or autonomy on that.
Sales in Turkey that are fundamental for dinner.
What that also covered by either for the diversification of contango in Macau for video on our community.
We try to learn how can we impact Hum argued there be.
However, not kind of make a recovery has to lead to lower year over year pool for our mobile email as a comparator to the our net pay at the gross.
Same PRN or not through yet you're already there Anthony.
In the long term.
Thanks for our P. P M. A O to remain stable most redoing their growth will be driven by either novartis on.
In fact that we believe are the areas.
Thank you for all opportunities.
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Other racing on the ninth of Jim you there.
On the penetrated.
In the future.
They will continue to improve our contingency back from the FID summit for Nike.
Streaming media on to communicate bidding too low too.
Third the growth on our mobile N a.
And as far as the effect from Chrysler user behavior on the countries and they'll be there trend behind a thing over to those parts of the field for them and I walked right from continuous to be high at least speaking for users.
On the ever you go next to more actively use their vacation.
It means about 75 per cent.
We think it's the people and everything is a graveyard for them.
I believe you're their behavior data shows debt.
Number although you're for yoga member on our other pharma inquiry.
They are every month day timeframe on them.
Our platform also increased.
They just do so at the current with the massive Tuesday for yoga.
Those who joined us as a deeper on their time.
As they graduate to become our high quantity on the loyal fans from all the time.
Are the other video and the permanent depending on the monitor our geysers showed that among all the time trying to buy each yoga on our comedy on that made you pick a name also increase their fourth or low Kroger.
He said that must pay for the effectiveness of our video business.
The team in yoga and income working into our logo.
Thank you.
Okay.
The next question is from Wei Zhang of Bank of America. Please go ahead.
I'm, sorry, Barneys, how on Takahashi said based on what I can work on horizontal.
Yeah, Let me go through some kind of yeah, Oh, well non stop we outperform.
Before getting brought me on me on chip it seems like you've gotten to where you think that doctor in cash are you all seem to figure out I think once you get on the partnership.
I'll kick off on point, there when they're going to be trying from yeah. Yeah.
Yeah.
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Oh from young kids, there women share you can Oh geez agenda, I think like you have a woman.
For 2000 acquired Jerks jerky not it'll play area for my Board.
So just on my hometown, San Diego for a doctor coming on.
Hi.
All of these things Oh, Thanks management for taking my question on two questions here for its Oh any updates on the merger deal with Hulu and other forces an impact from that type of me on antitrust regulation and secondarily can you give us more color on that we'd be and that's a near net shape.
Your image they typically announce for last year and therefore, we did beat me on how should we can keep awake I start with your players. Thank you.
To elaborate on.
Gotcha.
John I don't even know if I can tell you don't see on margin and that's how you see that you can go on.
Thank you for your publish again on Huntsville Chi with each other.
And once you go to the Jewish obscene.
Do you want to get somebody from I'm.
So let me kind of just that pushes in any pumps at other go to market them on.
So I wanted to talk with you.
Okay.
Well I'm sure that you've got you shouldn't be I'm sure somebody still on some of the kitchen from them.
On a I'm not saying from the punch Oh cause accounts and how your debt comes on shutting down thinking God I can do.
They took away from you.
And interest.
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Some of them on the mutual Betsy I'm sure they don't really count on that.
But on balance.
But you can trade on that.
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Thank you that's down from a bunch of meat.
Shrunken down to your interest.
Okay got it on the first question on on the.
New Jersey robot trends needs a potential merger between on.
Since you're on track and we believe that the stuff that's funny.
Do you have to kill me.
It depends on your total truck bodies.
You bet on Chinese.
With the rapid development on people might think internet industry over the past two years.
We have seen that on therapy gradually improved industry penalties and innovation and we believe that the antitrust Commission non government, Oh, oh, promoting healthy and fear competition among.
Among the Internet company encourage income level, playing field across the industry, which will also help to deploy on launching them.
And therefore, the income you paint opinions.
We also believe that.
The industry, but you shouldn't see that could be a few other stage.
We have the potential to further improve.
I would use a skill I forgotten salary so I'm going to go on their debt is she said that integrates to the high quality resource is on one side to improve our operational efficiency and are increasingly world that even if the combined platform and how can we see no he and a greater share.
On potential.
Sure.
Oh, Thank God interest I'll, let you go.
I've got a bunch of them.
Oh for sure.
So you should be close to true I'm just thinking on that.
So you did mention debt shifting so that's for sure.
Uh huh.
She knows that you guys should be up on you.
You bet.
Jeep Cherokee, which you didn't even from the time you can actually walk you.
But on the from shifting.
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Isn't it.
Sure Jim.
G suite.
That's when you're up on me.
She had sometimes you've done for you shouldn't confuse items.
Go ahead Jim.
Let's just keep on going down.
Yes.
Okay.
Sometimes for the EBIT margin, which Don mentioned I'm, sorry, the shipping she knew that she needs.
If you did it for me.
Hey, Bill did you bid on them just so you can take one.
What should each other at Oklahoma, which you're looking for that you can ship on in Shanghai, China issues on please.
Oh you bet.
Other sheet summits implements the father's day for your essentially your name on one of them yes.
She may question, the channel I'm trying to beat that.
From each of them, yeah, somebody would do especially tends to start on Michigan, especially from shouldn't be Miami.
Maybe you can essentially that many in chicken.
Hum.
And then on shifting country, breaking even for me in the kitchen that.
Somebody goes.
Yeah.
And for that opinion, you should have a chat box for sure you can have if you look at all of the shoot up until recently.
Do you think you can pass that they put on Chi Tung.
Moving to bottom you shouldn't she came on interest.
For the first one.
So when she comes from she was Washington injection potential she came on autonomy and that's all.
Oh I didn't know if that impression on how low do you and communities business pizza for the at least.
Have continued to diversify our content on.
Category for these to you.
Secondly, as we mentioned earlier, we established a few pyramid accounting structure for I don't think it isn't it.
On the top is oh on top tier.
I'm going to talk to which contributed to a significant amount of viewership.
Which included the biggest programs that we don't produce from tenants.
And in the mid tier level, you posted non skill itself overnight.
On such as it doesn't need video, calling Comcast strength, even tubing change on that.
He's a fly on high quality content.
And doubled the number of active video content creators on our platform.
Interesting.
To date, we have accomplished our near term goal on establishing a stable for smile on him.
Well all mainstream video because leap on on Cat, one and going forward on combined with the continued on its content enrichment and a more targeted promotional activities for users.
He was the dealership.
True.
Regarding the community business loans.
Function for channel one game to promote more activity among users.
All users bumping is made on their own all players on hold for a different low game the channel.
And on the King well.
Well, thank you Scott.
Discussion on social purpose.
In addition, the majority of professional women neither on net joined our community as well and that produced the non amongst all exciting reports to me. This one here that we can split it down the decline all coming from contributed to an ageing community environment.
It's a large community with the weighted empathy on clear and our community naturally those into an effective marketing and promotion channel for the game going on here. So.
For this call there we have for with the presentation and our introduction for older pretty kind of different and so games and mobile game and there for pets. When he converted so can you get cash among users and you've been clear.
Claims on like you finally got a huge losses.
Hum.
Why don't you go.
So you'll see me on.
So what do you mean in Shanghai for all of them taking share.
On these new some new York feel for it.
I mean, what we've done from conjuncture gross so should continue on.
Yeah.
She's a few hands on chicken Chipotle with Nokia channel.
English only.
You're welcome to machine on the truck.
Okay, well thank you all.
I'll keep you from.
Between chicken on things.
Hmm from them.
There's a bunch it you shouldn't continue he and she can do.
Unless you cut your guidance.
You should read for Bush, even book auction on screening on 'twenty.
So from Thomson.
B for me companion.
So for the best medium, where you shouldn't really change interest you can keep up.
She is for example for any of the fish from each of them.
Interest income due to eat out.
No problem.
Sure.
He can talk about your production.
Okay.
From the guidance, even though from a continuum.
Okay on the savings.
You should even share shifts yet you too much you give me there was a challenge for them, but that should each year each other.
This particular viewpoint on shooting for that.
Mhm.
Yes.
And another question on the differentiation on the video business as a leading our in country incubated comes in Caf on the China. We have already established a matter can be high barrier. That's for things see on talk to you like Genie culture.
For tea Peter it's on.
Got it.
During the quarter, we gradually for E organic synergies between the nice dreaming a bigger content.
Language on the strength from the live streaming business.
On the engagement manager.
Physician encourage more video content for either choose an ice cream on castle and help them increase their overall income.
By utilizing features like through the channel.
We also include the user engagement.
At the same time, we are recognized immediately.
Interest income from distribution, our accumulation alcohol ethics patients and we encourage our opinion to improve their scaffold for in flight.
Building on the video content for phone.
And Furthermore, we have opening.
Gradually built on connection between our big you and commodity business.
In our community, we attracted and establish a close partnership with our non member off game developers and professional total them in media on that we also on P. I agree with a large number on them.
Official game accounts to produce high.
High quality PGP for.
Improving our.
In the free Wow, what's behind on P. P D game content.
For my time with the opportunity to directly interact with them I'm going to get out there and put them into media on it.
So this helped to improve the user engagement and participation.
Yeah.
Next question please.
The next question is from.
Hey, Joe Joe Hi, tongue International. Please go ahead.
That's you have got any thing cash all of that she brought on what dry on sangamo.
Can you go GA on panels.
I'll go on biological L. P. I don't want without your bulk of changing that's actually linked that they got their own bumps from hardship on the ocean for a day, except for anything so yeah got you on show, let's say equally on a whole bunch of budget cutbacks from say on Portland be on price.
I bet she wasn't that simple.
Yeah.
But anyway I have been jumping into about Germany.
Oh from in the total docs with index.
Does that go on to door she.
Sorry that was H I G for EG, Georgia, Paul I'm sure I'd be shocked that May go to T V I.
I want to be hanging on.
Thanks management for taking my questions I have three questions first we noticed that we all have five five year exclusive media rights with L. P. L. A so what's the impact for it though are going to incur additional like content cost on second question edge on what is the sequential gross up they bought coffee price cost and how should we think about Deutsche feature in Boston.
And of course on considering but few have come back for sure right now and then lastly could you. Please elaborate more on that because they've been all day sequential decline of live streaming Bonnie. Thanks.
Thank you for price.
For the call, but I think the probing on.
We expect that to biotech up in relative.
Popular these fundamentals balance.
So in terms of Alba for other coffee offerings for upon the man hour concerns out there now for XP.
Or is that any negative impact on.
And the ramp up of our most popular games.
Okay.
A larger pool all of them came on stream all right.
Gaming player.
And that would have to deeper into tier three.
Three months on the contingent type.
So where do you live with that we will be the go to platform that it goes on.
For the fourth watchdog put on it.
Moreover, we are planning to keep up with the Mafia angle fundamentally volume experienced with all of them.
Moving to fail on accomplishing this by generating game content through our video community on the lie with streaming and secondly on the provider you don't visit smartphone Walker from it.
Tony maybe you burned up content okay.
We believe.
Well, thank all of them. They can segment, we opened 10 concerns of creativity on the.
In fact creep either for you.
While we continue to generate the greater use of our traffic.
Regarding your question on for expenditures for the first quarter of credit can do want a per casting right costs.
Credit on a sequential basis, just what do you suspect debt, we amortize for most all forecasting right cost for the league of legends for country more championships in the fourth quarter up 10 to 20 in the first quarter up 10, it could be one for the casting <unk> cost returned the restaurant level.
As a leading game live streaming platform in China, we are committed to enriching our content categories on improving content quality.
So we will continue to purchase for a casting right for quality E sports tournaments.
New game titles continue to increase and our platforms two of them on category coverage improves.
No amount of forecasting right we're on.
Also continued to increase at a steady pace for this year.
As to the live streaming revenues.
The first quarter, which includes this free festival Harvey.
So you shouldn't read off season during the periods of streamers are usually chose to spend more time with their families and a whole lot for screaming for them is generally at its lowest.
Good thing yet.
On number of paying users also declined in the first quarter of dependent on to work.
Although we were affected by seasonal factors.
We maintained an active on effective operating strategy.
Emulate a core paying users.
Erections on the person, but it is we have except for a screenshot.
Chris on inquiries.
P P.
Going forward, we will continue to improve ex secondly, monetization efficiency by refining our operations.
The more we will deepen.
Operations kind of eye disease.
That's mice monetization products increased income on my spreadsheet efficiency from our mid tier streamers.
Thank you.
Yeah.
Yeah.
Yeah.
The next question is from Richardson of HSBC. Please go ahead.
Hey, Glenn So I'll watch on call ATA here, let's say for what we own.
But once he wants out Joseph social friends from you from yeah. It wasn't one.
On the truth is a whole bunch on places like Yahoo Russell.
But the other street on usually from something on.
I Hope you have a once you just got wiped out by itself. Okay. You'll book why do you feel from yeah. There's other people died and diligently.
For somewhat downhole tools, there won't be probably eat so thank you for taking my questions on two questions I'm sorry for the rest of the same ratio can make one comment on the drivers behind it what would be the trend going forward.
Like I know for certain marketing and G&A expense, okay, basically called minimal debt.
Once you and what would be a trend going forward.
Yeah.
We will maintain our 15th of 15 revenues pretty used to share policy for pencil and streamers.
Our passports and tenant interest rates.
Julian per promotional Perez well, they all have a certain percentage to the streamers on the pilot Hello magazine.
Therefore, while overall revenue sharing ratio.
May fluctuate slightly quarter on quarter, because they remain stable for Jeff.
As a game centric live streaming platform.
We have continued to invest in content related.
Cause esports games and potential blockbuster titles, especially for top esports tournaments and premium self produced content.
At the same time, we've been actively in house, Oh for overseas streamers, with Sotheby's and ERO, new streamers in new game segments.
Work on content cost will show up for right.
Sure.
So for the marketing expenses include.
Salaries channel promotion costs esports teams sponsorship fees and expenses for offline and online activities for the first quarter on spending on to one sales and marketing expenses increased on a sequential basis. The increase was due to increased investments user promotional.
Activities, which was in line with the development on new businesses, including video and communities.
We are quite positive about the betterment of the esports industry the long run.
We will continue to increase on investments esports related activities.
Pete sponsorships.
Going forward. Meanwhile, we will upgrade our product features to improve the efficiency.
On the traffic conversion.
We also intend to.
Channel promotions and therefore in the future, we expect our sales and marketing expenses increased steadily.
For the first quarter up 10% to one general expenses decreased on a sequential basis, mainly due to the fact that most of most of all merger related professional service fees were booked in the fourth quarter of 10 to 20. Therefore these expenses had already returned.
On to their record levels.
The first quarter.
Going forward, we expect G&A expenses grow at a slow and steady rate. Thank you.
Yeah.
For the next question is from the brand net Chong of Jefferies. Please go ahead.
Oh, yes for sure.
If for no idea.
Hmm.
Yeah.
Right.
It's just hard to say.
I should know for sure.
Hmm.
Okay.
We have seen a rising scan visits.
Good day.
That's great.
Two other paths.
Got it.
Yes.
Thank you about credit strength.
A couple items on that platform at that time.
All these other kind of like a real cheap price.
Increased rep Debbie.
Actually for not just you all based on.
It was on a map like Oh, Okay, I would screen.
Catalyst NAFTA indirectly then imagine pine on and customize the.
Really.
We have also introduced there you'll need for Libra screaming really throw beach.
And Oh, maybe either from.
My other screen and put them.
Our work for all their portfolio, although it comes in the initiatives that you had to have a debt to inquiries that you were that this volume, okay, and a day demand leading to year over here in case you have on overall you'll be on.
None of our other priority.
Good day, we already have a relatively complete on the major accounts at this time for offshore put on them.
We'll continue to innovate to income trends.
Zero zero on leasing program at the hands on.
On a diluted weighted.
With that we can bring more high quality, new yoga two hour, that's going on with going forward.
We know that already have shown more loyalty to high quantity neither screaming contango on.
The other day paper.
With our competitive neither screening contango.
I know how on top.
Top and mid tier streamers.
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That's free.
Therefore, this is probably for the effects of their debt nowadays from Renata scale. Its got government chose to a broken record on my own cable platform.
Having this thing I mean traffic diversion occur on our platform. Thank you.
Okay.
Yeah.
This concludes our question and answer session I would like to turn the conference back over for management for closing remark.
Thank you for joining us today have a good day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.