Q1 2021 LIZHI INC. Earnings Call

[music].

Hello, Ladies and gentlemen, thank you for standing by for the Jews first quarter 2021 earnings Conference call. At this time, all participants are in a listen only mode.

After management's remarks, there will be a question and answer session. Today's conference is being recorded all of them.

And I'd like to hand, the call over the OS It became head of capital markets for the company.

Please go ahead.

Thank you very much Hello, everyone and welcome to the T Inc. First quarter 'twenty 'twenty, 1 earnings conference call for at least all financial and the operating without the young newswire services earlier today and they are available in line.

He spends on today's call will include all the founder and CEO, Mr. Michael line, and our average himself all of them, it's trying to follow.

Management will begin with prepared remarks, and the call will conclude with the Q&A session. As a reminder, this conference is being recorded in addition of I'm just the highlights presentation and the webcast. A replay of this conference call will be available from the IR section of our website at I asked on the interest though at that.

Before we continue please note that today's discussions will contain forward looking statements made under the safe Harbor provision of the you ask the private Security Litigation Reform Act of 1995 of these statements tactfully contain words such as of May we all of its back target estimate intend.

Believe potential of continue or other similar expressions forward looking statements involve inherent risks and uncertainties the after.

3 of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated many of which factors are beyond our control. The company is the Finnish otherwise the representatives and underwriters do not undertake any obligation.

So I think these for forward looking information, except as required under the applicable law.

Please note the Lee just on the press release and this conference call in 2 of discussions of unrecorded U S. GAAP financial measures as well as all of these non-GAAP financial measures leaves just press release contains the reconciliation of non-GAAP measures to all of these GAAP measures I will now turn the call over the 2 hour.

Founder and CEO Mr. Michael line. Please go ahead.

Oh gosh, there's a lot of times I think in the.

Yes.

Hello, everyone. Thank you for joining us today.

All of our Union the people thought of you could think of the crusher woman.

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Yeah very pleased to have started the year of strong as we maintained all of the basket growth momentum in the first quarter of 'twenty 'twenty, 1 laying a solid foundation for sustainable development of throughout this year of overall user base continues to grow in the quarter with average mobile M of us, reaching $59.7 million while the.

Average monthly paying users increased by 12% quarter over quarter to approximately 400.475000 deaths are they in fact of the execution of our operational strategy. We also witnessed the strong growth in our first quarter revenue of RMB 495 million of.

34% year over year and 18% sequentially.

All of our Union the D C..2 woman she should.

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The Q2 of the father of income.

During the first quarter, we continued building and housing all of the link in the virtuous audio ecosystem in particular of expanding our footprint the overseas to further reinforce all for localization strategy in the meantime, we continue to advance our core technology and core capabilities in AI and audio transmission.

And of course tapping the power of business development I would now like to share with you more information on greasing the Falcons.

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For all other central New Jersey community built on the BG App maintained its high level of engagement in the first quarter, notably our average Mark the interactions maintains $3.3 billion times during the peer group as of the end of March cumulative of audio content across the pack on the beach 200, Seventy's women of.

As part of our operational strategy as we continue to enrich content genres and he has the community atmosphere of surrounding the Haas social topics. Your average attaching to the genre of waxing stockpile of younger generation, including use of literature emotionally Russian and ACG, we try.

The Paul says with the number of influential of Kols cheap credit inclusive of premium audio programs and the promote these programs of Clos and outside of Capex.

This effort has attracted a large number of users to join our platform to listen to kind of crazy and a share of our audio content for the operating the vibrancy of our audio commodity and the M. Do you find the communities. This was in addition, we remain committed to helping outstanding concentrated as well all cash.

For example, I'll talk show Star talent of Cold weather.

So the stipulate aware of the for content creators influenced the barrage of content creators to produce content and supportive of them because he's kind of let their local talent.

The April we also successfully held our breath of the content. So as you said you want each of waste festival. This the 1 like Carnival events featured there were a few of the face of liberally chief quality content create sort of thing where it seems with the ads attacking voice love them to come together and he joined the funnel of poison and for why does the bank.

It's for more people to showcase their local talent.

The other thing that there were more than 2 million people, having participated in the life changing show and also began the widespread of cash out of crossing outside of Apple.

Survival of mentally what the oil and part of what on the Hook you mean, the truly say it's.

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In terms of the team who don't tell you she's on the yoga bunzl to Latanya do yesterday, 1 of them enough for you of course to see Sheila you'll show the T cells.

Never really shouldn't average if I can pass in all of personal strategy as we increase the user engagement and interaction youll see from energy in the meantime, our efforts to encourage the content creators from the pre recorded the audio contents that month to join live streaming and the order of interactions under the audio Entertainment segment.

Have you factored the potency of the integration of both segments adult content creators can build upon the interactive features in the lifestyle of new features to interact with users and therefore, our user engagement for the increase in the number of our paying users has grown the factually.

So the change outside of all manner of woman.

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Powered by the time of the pardon me ma'am.

The advances that channel it.

As we executed our global strategy, Yeah, App, all audio base of social networking apps targeting overseas markets continue the strong growth momentum of the first quarter. We are pleased to note that he just mobile and the news relative to more of them too many March revenue.

The advancing of its 19% increase compared with the average muscle and the use in the fourth quarter of 'twenty chunky in the quarter tier of the Amanda among the leading social networking apps in the U S market.

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Furthermore, we continuously work to optimize the overseas operations, along with the integration of <unk> IP routine to enhancements of user engagement and the retention.

Cash flow of social scenarios and the related add backs of new features enable the tier of user to make social connections based on various interest and topics interacting the real time, all of that audience and making for ASP locally with people who share the interest across a wide range of topics. Meanwhile, we help you.

The form and the foster diverse interest of circles, improving user thickness, the wildfires that strength and use our social networking for the third piece of kit.

In the first quarter, the OSM noticed that a number of kols focused on gaming and the nation joined the key of Papon seemed to ask them to take out with T. I use it to a group of audio live streaming.

And all kinds of user generated the interest schools school exponentially on TR, which grew 80 per user interactions. In addition, we also saw growing engagement across the user groups with different social networking top topics.

I've seen a wide spectrum of traveling topics, including gaming.

In the nation lifestyle music Baby alive for example, no speed the average monthly checks on the scene in the first quarter increased by 450% from the prior quarter based on by the area of interest and topics I'll use the made of more new friends on tier.

The March 31st the number of user from connections increased by 230% from December 20 of turnkey.

So you'll widened tier of putting language can wait how much does the thinking since ive come true.

Given the time weighted entering your day to come not just the simple Neel Kumar of young children, who don't look Louisiana.

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But I will mention I'm seeing equal fruitful for you by the timing of its entire Georgetown georgetown's renewal by the pool true.

For my junior and senior who treat it as such the other future sales.

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Viewpoint.

For users tier is not only the tool to make real time of waste check, but also keeps the younger generation space to connect with and get to know new Frac is the.

Fact of the audio of base of social networking platform for younger generation. Looking ahead, we will further broaden and optimize closeout of teachers to strengthen our global footprint problems. We are poised to attract more younger generations of youth in the shipyard.

We remain focused on capturing to their social networking needs.

Yeah, Paul in the wages accretion you share games, we will also step it is the math, yes, net working facts to form of close the loop that support the long term and stable user growth.

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But because of the teasing pangen about what you're gonna of can go the strength, though.

In terms of the implementation of podcast offerings and applications of multiple devices, we launched our brand new virtual contact telephone need your podcasting January of 'twenty 'twenty, 1 that really kind of features and the advantages of forecast debt applicable to the likes of tobaccos in the scenarios we are prepared.

Our strategy roadmap to the new car audio market in the spirit, we have been establishing collaborations with more and let the enterprises launching the age of podcast product set up compatible to the use of the car scenario spending an increasing number of vehicle models. Our new partners include more of leading domestic.

The companies such as the automotive intelligence technology company. He cracks in the electric vehicle makers, you know bit models and top of Amp module. In addition to our expansion in the income scenario.

I'm committed to increasing the diversity of our forecast the content library.

In particular, the static art technology lifestyle and their 10 of highly popular amongst the all users. The ASO continues to cooperate with more brands and the enterprises in developing parenting podcast programs to help increase their brand of Venice, including Pockmark Tiger brokers.

The M Moto X central Meanwhile, in order to promote copyright protection of our regional contact contacts credit even through the chip for Cat, we collaborated with the Ams channel to liabilities for proprietary book campaigns. The coffee line solution to provide greater of copyright protection of option for all of what.

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Sometimes when I see the 2 sometimes doing my part of the time doing so I'm sorry, it's a good day.

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Well most of you want you to the dog homes for that but also what you're doing.

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Well most of US answer the use of a bulk of the tungsten where you put your income Chapel Hill part of the bulk of TGF, well, many of whom golfing kind of at least the bulk of the type of change you can of course.

Pingo App store the change of 3 P M.

Yeah, So the pingo <unk> Jantzen beach other someone book of the tightening of <unk>.

In the bid to provide the more efficient real time connection and interaction between content creators and users. We debuted at the new large famous forecast feature only to pocket. The app in early April apart from attracting of original content features and the kols associated with future forecast.

To conduct live streaming we also invited at the car production came off the history. The mantle of film Don from aircraft the world taking up some of the chain the punk rock bands dry side and other celebrities and the crews from all walks of life to participate in our lack of training forecast, thereby delivering them.

For diversified of podcasts definitely expenses for all users.

Lastly, in the forecast not only of lot for cat to be more interactive. So after the Bachelor of increased user engagement, but also deepen the connection between forecasters and the audiences. Additionally, the Egypt plant has also upside the lack of any forecast feature for the income from either.

Which were the first I will of the on the smartphone operating system all of the apps of models.

This is the first time line for NIM forecast have been implemented in the income narrow we expect to connect and integrate the income forecast usage with mobile forecast for usage. So that users can enjoy the immersive and interactive buckets of expenses you know they didn't cost narrow at the well.

We strive to innovate all of each of broadcast product to offer more diversified for Cathy Smith is for all users. We are very pleased to note the need your podcast of the Cam 1 of the feature of the half the whole Apple's App store for several days earlier, making it the first the Chinese forecast at the recommended by Apple.

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Yeah, you know, we're almost out of our machine some of the tender needs of the bulk of it it's the Brooklyn the limit.

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So the Duane the email.

The only time you're doing them.

Good day sort of standard hunting, the Choctaw I'm willing to change the England channel.

The old Honda since there's been quite a bit.

So the you should consider doing this the new saying you're.

So that's 1 of them.

So why all of money I'd say, especially the so that's what you're into.

Hosting the scene to switch of Dupont of course, I'm going to do gene into the T cells and tissue.

All of the challenging.

It's usually the niche at some county, the science in our.

So you can get rid of it seems to me of the Gwent and use of the.

Once you have the I realize Dunkin' Donuts, it's used for humans can do for you.

It won't come to you to the shooting who don't yet.

Being able to get on here with the Genzyme.

Aside from the positive progress in all of business. It will also further of the vast of the development and application of all of in house developed the technology in the first quarter.

But simply all of them in the house of audio technology solution that the already project provides the technology infrastructure to support more business. The in house real time communication, which hit the RTC of technology provided by the Remy has also being applied to the lifesaving forecast of future of all of annuity along the beach of forecast.

In addition to the mobile devices. Dr. Remy also effectively support the application of flight training forecasting the new cost scenario, enabling users to have stable end to use real time communications and interactions through the use for that day.

He is the remarkable achievement for all EBITDAX research audio technology over the years. Furthermore, we continue our focus on developing comprehensive audio technology solutions, consisting of the audio filters audio quality improvement and other technologies, we believe the strong technology capability.

He is 1 of our key advantages to both the of aegis competitiveness in the line audio space.

The plan to implement the new trading share of our in house technology to a wider backdrop business in the future, allowing users to have Bachelor of listening in the interactive the trenches, while further propelling our business grows.

So I answered it well much of it used to sort of go tell you what seems out of retraining of the other Indian of Lal how the car door.

So I'm all of my life on the other way.

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Some type of PC channel.

All of them in the European.

Just for your Ocean Junior boots for the E&P, So true father.

Go to change your part, saying instead of jumping tied in new England of usually towards the I couldn't do the union from Dawn.

She says we don't give all the Thunder.

In summary, we believe that a robust business development in the first quarter of kicked off a great start of the year going forward, we remain committed to building and enhancing our competitive audio ecosystem with the strength of our audio technology capabilities from the development of all of audio commodity.

Because of our globalization strategy to create audio based on social networking tap on and off net to do price continues visits growth by leveraging our advantages to expand our product and service offerings across a broader range of devices.

So as you digest some of its enrollment that is simple cellphone's. The without this all time will come in the 2 months.

Thanks, everyone for me that I will now turn the call over to our acting CFO, Ms Chen who will discuss our financial results in more detail.

Okay. Thank you, Michael and Hello, everyone. I will now provide of course, the overview of our financial results for the first quarter after the tender 1.

We are very pleased to have achieved strong top line growth in the first quarter of 'twenty 'twenty 1 of.

The robust growth was driven by our continue the effort to be able to competitive audio ecosystem, including of Battle Ridge, you do see community and the vast of commercialization capabilities.

In addition, we have strategically from back to the 2 strengthening our brand equity as we both hourly of the podcast and in car audio business.

And to expand our footprint overseas through tier all of which we believe will prepare our business growth in the future.

In the first quarter, our total net revenue increased by 34 per cent to RMB 411, 5 for 1 minute thrombus Emptier after 2020.

Our audio entertainment venues, which contributed RMB $489.3 million to net revenue in the first quarter of 2021, and the represented year over year of growth of 34% the <unk>.

The increase was mainly due to the continuous growth in our M of use and paying user base as well as in the house of the commercialization capabilities of our apps.

Additionally, Paul Cats of advertising and other revenue grew by 50% year over year to RMB 5.7 million in the first quarter of opportunity to do 1 of the.

The increase was mainly due to the interest in the number of advertisers.

Cost of revenue was RMB 370 million of in the first quarter. After you took the 1 compared to 297 for the formulas in the first quarter of 2020.

The ear over EBITDA increase was mainly due to an increase in revenue sharing fees to our content creators payment of hadn't caught and bandwidth costs, which are generally in line with the goals of the company it's been it.

Our gross profit with and the 125 for 1 of them in the first quarter of 'twenty 'twenty, 1 representing an increase of 72 per cent for RMB 72, 9 million in the first quarter for 2020.

Our non-GAAP gross profit and the $127.7 million in the first quarter of 'twenty 'twenty, 1 representing an increase of 64% year over year.

Gross margin for the first quarter of 'twenty 'twenty, 1 increased to 25% from 20% in the first part of 'twenty journey.

Non-GAAP gross margin for the first quarter of this year grew to 26 per cent from 21% in the first quarter of of uncertainty.

Operating expenses increased by 15, 4% year over year to RMB $197.3 million of in the first quarter of up to any type of you 1 range.

Search and development expenses were RMB 56 points of liabilities in the first quarter 2021, representing a year over year decrease of 30% the.

Decrease was mainly attributable to decreased the share based compensation expenses as well as declining of incentives related to research and the bus money services provided by third parties.

Partially offset by the growth of salary and welfare benefits.

Selling and marketing expenses were RMB 128 million in the first call talk to in the 'twenty, 1 representing an increase of 2 houses so the 8% while I'm be $75.7 million in the first quarter of 2013 the.

The increase was primarily due to our increased investment in branding and marketing for our product and brand name.

General and administrative expenses were RMB 96 minutes in the first quarter of 'twenty 'twenty, 1 representing a decrease of 26 per cent for RMB 26, 1 of 4 million in the first quarter of 2020.

The decrease was mainly driven by a decrease in the share based compensation expenses and other miscellaneous expenses.

Our operating loss was RMB $72.2 million in the first quarter, often you took the 1.

551% year over year.

Non-GAAP operating loss was RMB 64 million in the first quarter opportunity of 'twenty, 1 compared to RMB $28.7 million in the first quarter of 2020.

And our net loss was and the 17 million of in the first car types of Hitachi walk up.

48 of 45% year over year non-GAAP net loss was and the $61.8 million compared to average $29..2 minutes is of course caught up to the dirty.

Basic and diluted net loss per ads were RMB 145 in the first quarter of 32 to 1 compared to RMB 5.133 in the first quarter 2020.

Non-GAAP basic and diluted net loss per ads were RMB, 1.1 of 3.3 compared to <unk> 7.7 per 80 ex in the first quarter of of 2020.

As of March 31, 'twenty 'twenty, 1 we had cash and cash equivalents restricted cash actually shorten your bachman of.

And the 389 million.

Looking ahead, we remain committed to leverage our strong operating capabilities and advanced technologies to further develop our club of audio ecosystem and rats.

Breath of beauty to consistently delivers audience and long term growth.

Okay. This concludes our prepared remarks today and we will now open the call to questions. Operator. Please go ahead.

Yeah.

Thank you for the benefit of all participants on today's call. If you wish to ask the question to management in Chinese police immediately repeat your question English and for the.

The sake of clarity for the please.

Please ask 1 question at the time line.

As for what will respond and then and then feel free to follow up for your next question.

Your first question today comes.

From the line of.

Vincent.

From Needham <unk> company. Please ask your question.

Yeah.

Thank you management for taking my question.

I actually have quite a few questions 3 questions. The first question is commencing the share some metrics on P. App in the World management starts you folks more.

Amortization of whats happening for you and 1 for the metrics.

The dental.

User.

Time spent per day for it and then I can get you. The demographics. My second question is on.

Can management give me give us a sense of the use of demographic of each of podcast that and how much do they overlap each of may yet.

The third question and the.

We see increased content investment by other players in the industry can management talk about the size of the content investments.

She looks to make in 'twenty, 1 and how will the effect can be just margin.

Thank you award from Quad.

For the fight each other well.

She's the points and that's 1 of your what you wouldn't you wouldn't know Eagle and keeps the acclaimed Washington of open shop language of the P. GAAP.

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Hey, good GT the use within the nuts in Egypt.

You women with the other OEM.

The Hiseq when do we see the intended vision the other ones you should plenty plenty of attention for sure.

The number of Goldman Thank you Alicia keys each of book of ADP.

Coleman the Chico's Egypt.

Thank you Peter.

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I don't know you talk about why the tiny though with the.

Okay, I will translate for Muslim country, we are focused more on the user scale and the engagement on <unk> in the first quarter all user base achieved the strong growth and the user engagement of reached the higher levels compare the with the prior quarter for.

First this was reflected by improved the user thickness and the user engagement and the number of all the user friendly connections increased by.

230 per cent from the December 2020.

Based on various interests and topics users created created a wider spectrum of the chatroom topics, which greatest for user interactions and attract the higher growth of user base on the other hand, we noticed that that both vibrancy in the penetration of users in the group with the graduate even half of.

With the launch of all New group function, which also drove the user engagement in various segments.

That's an edge on the challenge from the single thought of as I say, it's switching of equipment at sometime for yoga.

Once you the 10 being something you always think of some of them the tissue.

Well not quite to the use of you'll go to whom Toyota Honda So the accounting versus just hung senior from them.

The only Lincoln laser machine cause of adult you lots of new blue months of what's the good niche in the.

She's a Hollywood Samsung loading to the future.

Some of the icon.

For the switching the other partner, so they'll kind of looking.

While my continuing for the Vancouver tea and she says shoes Youll party lines at the time, So you shouldn't ghansham the along with Celgene.

So since you're doing some year Bob books.

Bush of all of them and the Thompson.

No cause for alarm, although you can kind of more of the whole months I would probably do you all the time in the woodlands viewpoint true choices on your part of the tongue soon.

Hershey oil should have its own kind of problem I'm glad you said you kind of it should have gone for.

The current <unk> less more emphasize on the growth of the user base as well of the user engagement, we are dedicated to providing users with our diversified the social scenario team and the innovative functions. While also popularizing the audio centric social product for the satisfy the social and the.

Net and determine needs of the younger generation.

Also remain committed to optimizing the product based on user feedback and the user experiences to achieve the stronger networks. The fact.

Therefore, exploring commercialization of its not actually of our key focus at the moment once all user base growth to a certain scale, we will implement commercialization of intent based on different stages of the product the step by step and we will also keep the market updated all for any day.

In this regard.

The other 1 here.

The book.

It is the absolute Youll go from 1 or.

2 of the winter.

It needs the Volcker rule.

The zip.

For the young put shrinking of the ICL for her talents high either.

Oh, and 1 kind of on that just the.

Is the bulk of it until now you I say on the yogurt side because of golf 90, I believe should be out your income the net income yesterday Usher without census to swim to the home.

Put you in the time be suite of gel Col.

Teasing out the sort of sensitive without suits of susi to the neupogen.

Many of them.

Non cigarette good woman.

So it was your arms, who do the Bulgarian puts you into humans.

Each of them.

So should the book cookbook cigarette sales.

The total the ampoule jewelry true with it.

True true you can book go the gold going to I'm sure that the goal.

So moving in the pool.

The second question is about the user base of leads from forecasts.

Debt is actually a significant difference between the user groups of leakage of forecast and those of the need to act in particular niche of podcasts features of higher proportion of users from tier 1 and tier 2 cities in China with a balanced agenda of distribution. Additionally, the proportion of arps users of the age of the turnkey.

5.2 of searching for is higher follow the bi ages 35 to 40 for this.

This is almost in line with the targeted use of it.

From the originally Amgen to reach which is young in the middle age of the users in top tier cities that we intend to tap into our need you poke at and the application across multiple devices and the scenarios.

Leeway, if only 1 of many of the ones with all the is the bulk of the you posed to the also enjoy the day to put the T cell the engine.

Both of our citizens that all of us for nosewheel sort.

You can leave the.

The both arms of the times of the time Board believes is a global number.

And you move the seen the book of the area of Ghansham. This change for you.

Kind of argument for the tenure of the decision that sits on the mass of.

The telco nicely, which is the leader.

So here's what I mean in Europe of course reported of Goldman Sachs. Your net tangible book.

Both of those with US who don't see senior which is all of that you don't put the Chinese door for you too, but I wouldn't know query tissue Tau bulk of the Thompson.

Yes, the amount Singapore, and then go to the them to win booklet of profit.

Moreover, we are seeing an increasing level of usage of the in each of forecast for me is the user group, where the average daily of spending time for use of reaching about age of minutes, we achieved much higher than the leach of App users also demonstrated the stronger interest in our new podcast content offerings, while other Matt.

Including our use of subscription.

Relative to competitor of being the podcast market you know of.

In April we unveiled a new luxury of NIM forecast for each of our own mutual forecast to bolster the real time interactions between audience audiences in the podcaster, which for the has the all user engagement and the user.

Active list looking ahead, we will continue innovating the Youtube forecast, while aiming to further propel the development of the Chinese podcasting industry.

The suddenly the it also say the in Peru from in the Kingdom of.

So go.

So it needs the that you'll do that because of winter.

Oh of mantle cell carcinoma of the play out in front of the new owner of Chile will mean for.

The other pineda sales team.

And then on Genesis I mean excuse me what's interesting is it holds true.

And so I'm kind of you know a woman of generally.

So we will be the leader in zone to.

Failure of Shannon.

So that leaves of the <unk>.

In the near term, but it sounded I saw some feet.

So you call them in the UGC, the especially of the sometime towards the sales on the new Hulu Antonio I'm thinking neither.

The Chile.

Okay from what it used.

For the use of the New York since the insertion of a sofa.

Some of the it's the bulk of it on the name of them. If I missed it I didn't hear a woman's day leap. The P. P. The name of truly amend the children's book the name. So I should say you got to you, but the truth of the man who's been switching strength.

On the pharma you line.

Woman tenure with the other book number of that do go to China Young talent from the Toyota Nobody was the poetry.

Where are the I'm throwing out and part of the total income do you sort of broke up.

Truth at all.

And it sounds cool.

The bulk of logic of a pair of I'm going to play with any of the tons of them.

We will talk to you in the book of she was simple.

The approval of 2 qualities in a bunch of inbound for C and can do the bulk of the value.

The bulk of the father of 2 of them couldn't do the kind of tomorrow I just want us to the book.

<unk> com.

But all of men cleared from the board how you find the truth be told me the streets of downloads of the knee.

Now if all manner of many of the did you push your.

Both of the Union was hunting buffalo of towards that the 1 but you'd have to them. So big.

Lot of bound to book of Q2 of the argument, though the change of.

Both of them in the time to put your net interest to you and then seeing seeing the book up in share.

It all the time, but also on many of the way of doing some sort of the you tube.

Your button you want somebody to go so it doesn't hit the amount, even though you can actually yoga for school that somehow Louisiana.

Okay. The third question is about the Max the margin impact.

Country, we've focused the still accumulating the high quality and diversified content offerings and also cash to make targeted investments towards building our content library that is the.

Align the without tap on the futures over all of it. We believe these investments will happen limiting the impact of lower profitability for.

The need for App has a relatively low cost in terms of the content offering had the 8-K.

The average hourly unique UGC community to spur the organic growth lean UGC content offering. Furthermore, we can discover and distribute the high quality content using our advanced the AI technology, you know a day.

Asia, the Egypt forecast the contempt to weighted forecast from the beach athletes stack of of content offerings as well as exclusive forecast offerings from forecasters. We have signed so we have our own strategy roadmap for exclusive content investment in this regard we will adopt a diversified the stretching.

The attract more outstanding forecasters and optimize the cost structure, including discovery and cultivating more content creators with grapes for potential long term. The innovative podcast features adopting a blockchain technology for the copyright protection to attract more pop captures hop back on and for.

The widening forecasters, we the more opportunities.

For the future development.

In addition.

It's all about the differentiate ourselves from other tap on them. So we can have Bachelor of stress on the cost of the structure and announcements of Moreover, we are actively developing and expanding the epic both narrow for podcasts to help for captures the niche of broader audience base.

Like in cost now real and the other smart devices.

Our strategic roadmap you narrowed the batch enable us to attract a new forecast while.

Optimizing the content cost of control.

And we can optimize the cost of structure for a more mature business a step by step overall I believe that our gross margin and the profit.

Profitability, well half of mineral space to grow.

Oh, well played out of tissue. Thank you.

Yeah. This concludes my encountered.

And our next question today comes from the line of.

Vicky Wei from Citi.

Ask your question.

Oh, I need time for them because they just all of that.

What is the funding.

Just looking for.

Especially when they are kind of of all goes the thing that Oh Gee, you took walk out of the P. F.

Now with the adding of Union G P at the kind of.

Oh I'm going to each other the delay.

Kicked the Eaton, so who knows in the not just yet what did you say you zone. So commodity management. Thanks for taking the question.

The question is about the scale of the investment for pulp.

Yeah, and its implications for the margin profile. Thank you.

Thank you Ricky let me share some information about this question.

Actually in the first quarter of along with the launch of our new product and the our strategy to bolster podcast application.

Across multiple devices.

The investment in branding and marketing.

Also in the back of the ETF expansion in overseas market.

But the investments Youre is related more of the states or all of that led to an overall increase in selling and marketing expenses compared to the prior quarter, which also net to our net loss in the culture.

Additionally, we also paid close attention to our content offerings and leave the poll cap, which also increased common cost compared to the prior quarter.

So I believe it had the limited impact on our overall margin.

And as Michael mentioned before as we have diversified the forecast of resources, including the content creator for all of the leads at and from inclusive at line cause the.

Paul clusters with the aside Additionally, I think the.

Overall, you came back much of it.

The limited in the future of we were focused more out of the lots of operating overseas.

And a general or even the last month average stage would always be based out of the company's long term deposits of plants.

It'll likely have some impact all of our margin you know short time felt we realize our effort towards efficient credit promotion coming.

The company established the Ohio reputation and at least 5 brand awareness amongst users of which is beneficial for our long term diversification of Arlo I lay out and acceleration of our business groups. So it'll future, we will undertake dynamic adjustments for each for the stigma.

Diversified pool of cost metrics are.

To further optimize our cost structure and overall operating efficiency. Thank you for someone's airports from each other.

Oh, how the hit of actually the whole board tayo until actually be interested in it.

Inside the book or something of that you got towards the way most of the live any day, you kind of a tissue of what's that opinion easy to just say you shouldn't have any thoughts at all just wash on the dog.

What kind of edge of P. E woman sorry for that 1 of the total number would you like to do now that you've got kind of insurance I'm all for people that that's all for me.

So you'll be out of your total room now all of the pool that that yeah, I thought that they would probably not even a total but what I can do that Ti doesn't go your way more has to be used for the salvage loosely in other in the total squamous amidst the avia I shall do so.

Could you kind of element that easy to of that himself I'll call a might be somebody like simple kind of sounds like it'll be silly of me in terms of that sends out I'll tell you thoughts of what was that the easy to that conclusion for me of C, which anchors the chance it'll be not so your ETF product line.

For me on when many of these households, the journeys will cut a little some of the kids yourself.

The sweet tones of don't they don't have been sort of cash well it sounds like it to be a theory in Houston that I spoke.

For the trades done could even do the in shop off just off the job you need to come back of all kind of geological Womans side total though of course you from here has to be all born out of bottles for all of my side and I need a P. T stop the name of doesn't go a little towards the 1 element of what.

For that I took the job for a piece of without them. They will talk about the language was hold on the line you've got a little funky.

So it's something like kind of a woman that because of the data out of for Rudolph has the 2 you're going to the accounts you fight that I can think of a colleague of Black Sheila you should do on the Liberty will be the that E shop, that's where a woman which are kind of your doctor So you'll see other.

The only people ideas, how to rebound of going to the Seneca of how they got caught by all parties I don't want any of you don't know.

That's the whole high on the country. They got caught up with the laptop, which you're not sure of it on top of that you can bundle all of them.

I want many of the country woman, you'll find out of the points you try and think of fundamental would you mean share compared to all of the I.

I pointed out yet, but from what we haven't thought of you got the hunting like simple Yokohama.

The ago, So you're an element of the channel will likely not the T V.

Shelby I still don't think I thought of to conclude yet.

Okay.

Cause yet.

And the next question today comes on line.

From Credit Suisse. Please go ahead.

Thank you management for taking my question and I have a quick 1 here could be have some color on the update on the Dara in the project.

And I'm thinking about longer term the how do we think the technology development will continue to feel of the business growth for leeches. Thank you.

Okay.

The 2 should continue for a minute ago, so the Ah <unk>.

I'm 1 of the teams Angela to share.

The only reason the woman till the end of.

The scene.

She switch of Dupont.

Alcohol assisted the Eugene Santa Regina Sanchez, and silicone IOL part of them.

The Martinez to your women's day, so yeah, I'm, saying to you. So if I missed the kind of boots for the teams that so let me somewhere near where it comes out of your awards you've gone up.

These are many of the Cisco the system.

Is the bulk of the simple gonna him to CEO told me to 1 of the scientists with Susan.

Some of the new town the.

So you know this is the differential.

So just the 1 time of an element into it because there are plenty of solar.

A copy of the Super Senior reported so lots of Brooklyn, and say, it's without the O&M and the union of bulk.

Both of whom Kwang dong for yoga.

Based on the use of the ship them out so the.

That's the other than the unions and the same shovel can lose.

It's a good 1.

The channel can you tell me of the singles and it sounds like from what you.

So that's 1 of them in the us pushing the findings of the government medicinal disciplined young until they could be of the.

2 of them.

Okay I'll try the muscles of the answers. The first question range about the development on the top of any polecats at all from me is already in house developed the audio technology solution, providing real time on the audio and audio feel chairs Ottomans search and the optimization in the first quarter, we have shaped up.

Great progress for all of the health of audio of technology that the Remy project also provided technologically from.

Truck share to support more business. It all in house. The other technology has also been applied to the lapsing of forecast feature of the in each of podcast, ensuring the stable and it smoothed real time audio transmission, particularly in addition to the mobile devices. We have also made tailored configuration for they can.

Now the further supporting the live streaming podcast future for the ink part use including the optimization of the ample of suppression system between true the sound quality and audio of the facts.

Because like any of the unit cost scenario.

The audio transmission with the Echo suppression is quite different from the mobile devices, thereby weekend delivering a competitive sound the fact and user experiences with our in house the about the technology.

Just how that will move the she says she kind of in Sanchez of Lavazza is each 1 of them.

For me you I want the Io Tycho.

So the entity later it useful of meals meal it sitting in the punch line.

Some of it so a bit of downtown San Jose realignment mobile come toward the well. That's the end that is unless you completed for.

As you know with all of them of the user.

The total visitor someone out of your way tissue, you'll cover some of them.

Woman she was put on the go though the U C zone.

The cookies.

You don't need to do that you have a you couple of minutes, you're having net.

What I'm, telling you on that kind of C. N. It's useful kind of do some woman.

All of them if they sit unbundle it seems the mi.

Some of you you like the Samsung the she's looking kind of well many of you won't realize them go Suzanne say you move some of the other publisher.

Some of it can go the that's in the excuse for the Union Senior Bush for your parts of the go to somebody to go do something even as shelter at.

So now you said the number you reported people free time, good thing Harbinger of England opinion from what you said.

Well the non Q2 call.

You'll see the costs of the good thing for the New V P of.

Going forward, we will continue to advance our new house technology actually besides the during the project. We also have either in the house about the technologies that we might be difficult in the future and that sort of any project will also be optimized than I can.

Craig it between power of more business line.

In the long run our in house technology is able to be true for our competitiveness in the market instead of relying on third party type margin tap on it we hope to apply more of in house technologies to further optimize all across the structure and also in 2 of the operating efficiency and provide a more personalized the audio XP.

Relative to our users while achieving a scalable for the schools because when we use the third party technology tap onto his hotspots to provide the personalized the audio experiences to our users.

Oh, Okay that just the offensive.

Thank you.

And the last question today comes from the line of free yourself from Hydro.

Ask your question.

Oh Gosh, you have plenty of time, especially when it's the language only gonna have kind of as you go.

And she does that leads the way not only the young group of assets.

Lindsey teach the sounds that much of the Indian central agent that you the whole she's got the.

I was trying to say for myself I think the management for taking my question I have a quick question regarding your future of goodness, okay, especially for the audio connection.

Oh 2 of fear.

All of them in the tens of the Saturday of of your Weibo. When she said to me you can put in just for you use some been some type of chicken with the missing.

To deal with the OEM kind of put through for you talk to your sort of other channel couldn't do that somehow the channel She Trillium centre here, where the tissues of other.

Thank you fans and I will translate for Michael.

The question is about our strategy and so firstly, our overall strategy will be based the only on the our audio of sanctions. The ecosystem, we will do through the diversified footprint and the vast friends of all of our technology infrastructure to create more growth potential in the drive to continue.

This growth of the overall business.

So again, the theory of PV of sort of woman the.

She can the time can you do items on way too much in the search you can tie the envelope doi on part of the you'll just see the inconel.

For the <unk> below the 1 for yeah, William for which you're going to the country I'm in the UK tons of from yourself or put on the come true.

We'll move to the something I mean, you.

<unk>.

Well the chance you might choose the 1 she didn't top of Pennsylvania, and you need to do either of the visa Europe.

The Sony of quite a question.

Just I'll move away from Boogie instead of the senior board with true Gould golf with the.

So 2 of the Sun kind of come see the judge on the E&P new load 1 of the took a little book the.

The young who choose to use them.

The you'll put us in Hulu.

The constant switching from for you don't put us on the path twice of the Shan Shan tend to show to the Sunset.

Firstly, I'll sort of flagship product need the app has grown into a comprehensive of community, which combined diversified of UGC audio contents and the abundance of audio entertainment features.

Also providing users with the why the ranking tools for audio content creation audio content sharing and the interaction in the first quarter of our overall average of mobile use and they use increase the.

215, $9.7 million, most of which generated from the need of that.

The also indicates that the need to add remains for the commercialization of potential.

The next day by leveraging our operational strategies, we will further cultivate our highly days of the community and then you have the integration of audio entertainment in the prerecorded the contact segments to boost of the who the penetration in the audio Entertainment segment. Meanwhile, we will continue improving the cash.

Russia of the paying users to achieve the solid topline growth.

Oh, well most of you came in Utah.

In 2 months and you'll quantify them for you going up for 5 minutes.

So yes, some shipment at all of the.

But I won't I'm clearly don't say, it's useful Union says if I'm in the use of.

Chooses the tradeoff of woman or the change of how the kind of a pull true.

For money away just the Georgetown book of some kind of any of the chance of 3 of the bulk of the day.

1 of the Union.

2 of them and Oh.

Welcome to the Chico's from Sunset control Horseshoe Southern Wade you can throw the type of thing.

1 of the Union the loyalty.

A consumer of many of the Genesis of book of the Chongqing volume.

What you can control the bulk of it yet.

The tool to total control that you see the funds you quick.

Our years of the experience with the auto in the 10 months provide widespread support in the sets the stage, while the fashion as mentioned earlier, we will leverage our technical and operational advantages to further boost the our global strategic footprint. We will also continue building the park have vehicles at the.

And in true the application of the forecast across multiple devices recently, we have been discussing the collaboration opportunities with more auto companies and we will implement all of you can put the product the more auto systems. Meanwhile, we will continue the podcast innovation to provide the batch of the user needs.

Experiences and create more development the opportunity as the 4 hour of podcast the content creators.

No till July saw that too soon.

It's absolutely the women they go away like the sugar thumbs up so it's only a chunk of the suddenly the T I'm not sure of the Liberman changeover of other.

To vote for each of them.

70 of the content.

The support costs all of that she took the 1 you're sure Leila rely the sort of the sedan.

Oh man tons out of Asia.

Or do they at least through the rollout of other than for Honeywell Simpson Tusa chairwoman side.

As I said in plenty of boon in the ECM.

So what you should see some of that's usually the leap 1 of my way of bar.

But I was just on the day you quit a.

Sort of can do the selling of Johnson.

Yeah, you know Timna and champion women places they shouldn't go challenging the.

Some of that much anymore.

In summary, the J F will continue as you try if our top line growth and the tee up at the scene.

Overseas market provides great potential for our globalization expansion of.

For the lead you forecast the we think it provides more potential in the podcast market in the era of the electric vehicle market.

I am very cognizant in the interest future developments with our years of above trade teens renters and the strong technical capabilities in the 1 hour of the industry. We are poised to capture the market opportunities and create more of business value. I also expect it to continue achieving a stronger business closed for the pool yet.

Thank you.

Yeah.

Q2 type of strength that does conclude today's question and answer session.

The hand, the call back to the company for quite a degree.

The box.

Thank you once again for joining US today. If you have further questions. Please feel free to contact the interest of Investor relations to the contact information provided on our website at IR, the Arlington thought have them or TPG investor relations. Thank you. Thank.

Thank you. Thank you everyone.

Thank you everyone.

This concludes the conference call today, you may now disconnect. Your line. Thank you.

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Hello, ladies and gentlemen, thank.

Thank you for standing by for the Jews first quarter 2021 earnings conference call at this time of.

Participants are in a listen only mode.

After management's the rocks there will be a question and answer session. Today's conference is being recorded.

Now like the hand, the call over to your host.

Kim head of capital markets for the company. Please go ahead.

Thank you very much Hello, everyone and welcome to the G. Inc. First quarter 'twenty 'twenty 1 earnings conference call released the financial and operating results for our Newswire services earlier today and they are available in line cause. He spends on today's call will include our founder and CEO, Mr. Michael line, and our acting CFO Ms from it.

All of them.

Management will begin with prepared remarks, and the call will conclude with the Q&A session. As a reminder, this conference is being recorded in addition earned for highlights presentation and the webcast. A replay of this conference call will be available on the IR section of our website at IR. Don you just don't have that.

Before we continue please note the today's discussions will contain forward looking statements made under the safe Harbor provision of the U S. Private Securities Litigation Reform Act of 1995 of these statements tactfully contain words such as of May we'll it's back target estimate intend.

Believe potential of continue or other similar expressions forward looking statements involve inherent risks and uncertainties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated many of.

Of which factors are beyond our control. The company is the Finnish advisor Representatives and underwriters do not undertake any obligation to update these forward looking information, except as required under the applicable law.

Please note selling just the earnings press release and this conference call include discussions of unrecorded U S. GAAP financial measures as well as unaudited non-GAAP financial measures leaves. The press release contains the reconciliation of non-GAAP measures to our margin. He's GAAP measure I will now turn the call over the 2 hour.

And the CEO Mr. Michael Life. Please go ahead.

Oh gosh, Yeah, I'll tell you I think the in the U S is the operator Hello, everyone. Thank you for joining us today.

All of our Union the T..2 sort of you could think of the crashes woman.

The only 1.

Hunting the sungard the sizzle.

That's very true in the current tissue father taught how long the I'll call New York hard for them.

The these 2 well known some of the local blue more she said future use of banking junior volume for sure at all.

We can joe by tissue aisle.

Here's the info.

So the tele 5 of desired the lumpy items on that.

Does the cheat them what.

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Coleman the CECO the solo yes, the seller counting that summed up the other.

All of Sudan jewelry, the deep <unk>.

Can be summed up in advance of soup.

Lumpy items out of this is Bob.

Yeah very pleased to have started the year of Sean as we maintained all of the basket growth momentum in the first quarter of 'twenty or 'twenty, 1 laying a solid foundation for sustainable development of the throughout this year. Our overall user base continues to grow each of the projects with average mobile meus, reaching $59.7 million while the average.

<unk> must be paying users increased by 12% quarter over quarter to approximately 400.475000.

After the fact of the execution of our operational strategy. We also witnessed the strong growth in our first quarter revenue of RMB 495 million of 34% year over year and 18% sequentially.

Yeah.

All of our Union in the D C..2 women to shoot the recent.

Go on then to the actually already on the scene.

You've been some kind of people.

So the twingo highlighted on the toward the senior.

<unk>, Tom Hall of woman, the central part of Tyler.

The answer.

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The issue of you with a part of that pool of them.

I would tell for intelligent woman.

The women the.

The Q2, the finance income.

During the first quarter, we continue the building and enhancing our you'll maintain the virtue of audio ecosystem in particular of expanding our footprint overseas to further reinforce our globalization strategy in the meantime, we continue to advance our core technology core capabilities.

An audio transmission and processing the power out of this development I would now like to share with you more information on Christmas Eve Falcons.

So is there a woman the.

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She's only the change of Pudong to swap outs of say assess the sudden you see yourself.

This is all of sudden pinkeye name they see the new premium salons the other islands.

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At the time, they do it in zone Liam.

He leaves the doghouse.

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Talking about total of change of industry. The handgun Delta at the end and social agency out of to make.

So the oil you can stop me of the Kols.

Towards the other thing you cannot move free children don't think.

He is on the line of the Sherpa seeing that the other on the non cool she she's shooting in London that helped drive the path.

The new book Oyola, So true finally been quartile up so to the economy.

So what well months, usually the Citigroup Hangzhou.

So it ends up.

Bulk of Congress doesn't do a total of the Atlanta South of the cocoa soon things, Rhode Island the CFO.

I would hope you laid out for other than timing of tons of bulk of those hundreds of accounts either so he knows that.

So I see the true or magic leap.

Good day to be the clean pipe or the.

Joe for at least the signings here.

2 more of Samsung half on timing of other things going on.

The 2 zillow dot com yields of the total of the lessening of the IHOP them.

The phone cumin Judith.

Some of the little true homes, the current door Youre.

He was saying as have other than people attached to the operating time.

Although they did have the boy this was.

How well a number of what you can tailor Sunday Lidar for quanta.

Yeah.

For our audio Central New Jersey community built on the BP App maintained its high level of engagement in the first quarter, notably our average monthly interactions maintained 3.3 billion times during the period as of the end of March cumulative audio Com channel across the platform reached 200 Seventy's range.

Many of them as part of our operational strategy, we continued to enrich content genres and he has a community of MSP fears surrounding the Haas social topics.

Average attaching to jobs that are widely sought by younger generation, including use of literature emotional expression and ACG. We joined the process with a number of influential kols to create inclusive of premium audio programs and the promote these programs across and outside of <unk>.

This effort has attracted a large number of users to join our platform to listen to kind of create a share of our audio content for the updating the vibrancy of our audio commodity and M. Do you find the communities of interest. In addition, we remain committed to helping outstanding content creators.

All of our tablets for example, I'll talk show Star talent of cold wet, but specifically on whale of the for content creators influenced the variety of content creators to produce content and supportive of basket is kind of at their local talent.

April we also successfully held our breath from 10.2031 each of waste Festival. This the unlike Carnival event featured there were a few of the suites deliberate chief quality content creators and waiting for the App, attracting voice lovers to come together and each 1 of the final point is and to widen the space for.

More people to showcase their local talent.

The other thing that there were more than 2 million people, having participated in the life channel show and also of Gan the widespread of cash out of crossing outside of Apple.

Survival of mentally what the oil and part of what do you mean the trailer.

So it doesn't show you'll just see the search we've made all the integral quote on the tones.

You showed us who's in the UK and Europe.

The loop on quite a room for.

<unk> talked about the.

Choose income daughter says the income Changzhou.

Total volume in Europe are quite of who don't laugh out what's the book all of them.

Good friends of the changing who don't tell you she's.

Yoga bunzl to her tenure to yesterday the woman the food for yogurt soup, Sheila you'll show the T cells.

Nevertheless, diversify the campaigns and the operational strategy as we increase the user engagement and interaction usually see from energy in the meantime, our efforts to encourage the content creators from the prerecorded audio content segment to join live streaming and the audio interactions the under the audio Entertainment segment.

Have you actually posted of the integration of both segments. Those content creators can build upon the interactive features in the lifespan of futures to interact with users and therefore, our user engagement for the increase and the number of our paying users has grown factually.

Such as held for me of woman.

Trench of the science of joking I T O.

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Joe sorry, the tip of the aging.

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As we executed our global strategy here at our audio base of social networking apps targeting overseas markets continue the strong growth momentum of the first quarter. We are pleased to note the beaches mobile and the news relative to more than 2 million March representing 19 for example trees.

Compared with the average mobile and the use in the fourth quarter of 2020 in the quarter share remained among the leading social networking apps in the U S market.

So to the other timing of your income men women, but you do she should be all you'll go to the questions and then you'll go where are you in.

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Johan.

Commvault total we've seen the time in Ghana, So don't quote for you going to how the do you put them in as soon as you heard through the T teaches daiichi.

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First of all of many of bundling pool since I'm kind of doing a father since you changed the excuse me of a quick question and then Jim So the junior per channel Paula P. R. The suggestion was seen.

So these are the 1 in Guangdong <unk> momentum Thunder on the heart.

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So the switching.

For the whole year.

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Butch and good day.

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And if you go year of June.

So the of fund Genco through just how you got the Jeep Buena sometime the Sudan.

GE put Honda since you heard true tea yogurt with IPR zone.

To the judicial outcome symposium.

Did without gene and cell therapy.

You'll go, Ohio, Wesleyan ancillary gel Trina Shire the surgery she similar other assembly.

Furthermore, we continuously work to optimize the overseas operations, along with the integration of our products by Puma team to enhancements of user engagement and the retention expansion of social scenarios and the related add backs or new features enable the tier of user to make social connections based on various interest.

And topics interacting via real time, the 1 that audio and making for explosively with people who share the interest across a wide range of topics.

Meanwhile, we help users for them in the foster diverse interest circles, improving user thickness of wild further strengthening the social networking capabilities of Tia.

In the first quarter. The also noticed that a number of Kols focused of gaming in the nation joined the key of top line seem to act on the take out with Ti users through a group of audio life changing.

And all kinds of user generated the interest groups, who will exponentially OTR, which <unk> per user interactions. In addition, we also saw growing engagement across the user groups with different social networking top topics. We are seeing of why the backdrop of current topics, including gaming.

The nation lifestyle music, they realized the exactly notably the average multi channel in the first quarter increased by 450% from the prior quarter based off of a wide area of interest and topics. How users made of more new brands on to you as of March 31st the number.

Of user from connections increased by 230% from December 2020.

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Ghansham weighted entering the United going up that's the simple meals from volume Joseph who don't look Louisiana.

Cisco of Union CNS revenue, so its opening time.

But I will mention seeing equal for both of you about timing of the same time, Georgetown Georgetown's Rancho kind of poetry.

And juniors and seniors who choose either so the other future sales.

In combination of this you're going to finish up here.

So you're talking about harnessing the true.

What are the downtown here the 1 hotel in symptom of a counter you wouldn't think the with some type of.

Viewpoint.

For users tier is not only the tool to make real time of waste check, but also keeps the younger generation of space to connect with and get to know new frac. The effects of the audio basis of social networking capital for younger generation Nokia had we will further broaden and optimize product features.

To strengthen our global footprint province, we are poised to attract more younger generation to youth and the share TR has been.

We remain focused on capturing to their social networking needs.

Yeah, Paul innovative operational initiatives. We will also Stephanie is the man's kiosk network effects to form of called the new that support the long term and stable user growth.

So the bulk of the Union the board total.

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That's all.

Neither of them are you in the.

To put in the band trend to define the bulk of teaching the bunch of ramp up.

People are going to the.

But because of its easing punching above what you're gonna come the other strength, though.

In terms of the implementation of forecast offerings and applications on multiple devices, we launched our brand new virtual contact telephone need your podcasting January of 'twenty 'twenty, 1 leveraging the features and the advantages of forecasts that are applicable to the write off of tobaccos in the scenarios we are prepared.

Our strategy roadmap to the car audio market in the spirit, we have been establishing collaborations with more and let the enterprises launching each of podcast products that are compatible to the human car scenario spanning the increasing number of vehicle models. Our new partners include more leasing the massive.

Companies, such as automotive intelligence technology company. He cracks in the electric vehicle makers, you know bad modules and tablet App model. In addition to our expansion in the income scenario, we are committed to increasing the diversity of our forecast the content library.

In particular, the static art technology lifestyle and entertainment of highly popular amongst the out either the ASO continues to cooperate with more brands and the enterprises in developing brand new podcast program to help increase their brand of illness, including Pockmark Tiger brokers.

Moto X central.

Meanwhile, in order to promote copyright protection of our regional Comcast contacts creating through each of forecast we collaborated with the Amgen to liabilities proprietary Bob campaigns. The copyright of solutions to provide greater of copyright protection of options for our forecast crater.

Well, if I may in terms of the courts.

The thing you would show of the Super don't go Jojo will monetize your true it's weird that it will focus on the please hold of bullets to board of Ghana.

So a lot of thinking I need the annual Congress, which out of the P. O L. Simpson Volcker simple well my allergen of power Corp.

Got it wrong, sometimes 20 of those onetime catching my father of time doing so eyesight.

The good hunk of it assuming that some of our time to tell you the bulk of that simple but.

Paul do you want to control the bulk.

Bulk of soothing to yet.

Well go to the board puts in zone Chung of Brooklyn, New York.

King.

So if he is the only you don't go the tenure to possibly of Johnson Love both of the 2 herculean generally ends here.

So a woman the bulk of the book on your cash the you move towards the 1.

So it turns out it's a bunch of each other so that shouldn't some of that sounds yeah. So yeah. So the bulk of the both day to day is hunting each other so signal.

Well most of your use of dotcom Tol, that's also true.

So you don't call day, 2 of the Italian Italian them goes down so in terms of the who don't sing Chan of the volcker for yet.

Well most of US answer the use of a bulk of the transition where you put your income charcoal here are the bulk of it yet.

Well, many of whom golfing kind of leads the bogo type of change you can hold the ela.

Pingo App store the change of 3 P M.

Yeah, so the Penguin change anthem, the each other someone book of tightening the pregame.

In the bid to provide the more efficient real time connection and interaction between content creators and users. We debuted at the new large volume forecast future only to pocket. The app in early April apart from attracting of original content features and the Kols the closest thing with Ctrip forecast.

To conduct live streaming we also invited the car production team of the history of the financial and sales Don from edge of the walls hiking, the alpha committed team the punk rock band of dry side and other celebrities and the troops from all walks of life to participate in all of that training for cap, thereby delivering them.

For diversified of forecast definitely expenses for all users.

Lastly, in the forecast not only of not for cat to be more interactive. So after the Bachelor of interest you the engagements, but also deepen the connection between forecasters and the audiences. Additionally, the Egypt for has also upside the lapsing of podcast feature for the income of metal.

Which were the first I will of the owner of smartphone operating system of the act of models.

This is the first time lapse for NIM forecast have been implemented in the non cost narrow we expect to connect and integrate the income per caps usage with mobile forecast. The usage. So that users can enjoy the immersive and interactive quantity of expresses the Hancock net realized wow, we strive to innovate all each of podcast.

All of that to offer more diversified for Cathy Smith and it's for all users. We are very pleased to note the need to forecast the Cam 1 of the Ctrip has the whole Apple's app store for several days earlier, making it the first the Chinese podcast App recommended by Apple.

Sure you will find many tens of genes.

Well, then say the tier 2 of your choosing Ting you pull the trigger so yeah, you sort of other non union.

She is a woman the swinging to use which of your phone line doremus are moving.

So the way it can go to the year with Humana piece of the.

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The RPC tissue.

Your rooms out of our merchants understand the needs of the bulk of it it's the Brooklyn the limit.

Sure so you're going to resume.

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The England denature, the old Honda Susan the quality.

So the you should consist only of central zone, and you can choose whether to out of them.

So why or money I'd say, especially the so that's what you're into.

Some of hurting the same piece was the Dupont for senior looting into the T cells and tissue.

Well in the challenging.

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Once you have the I realize dunkin' donuts excuse for humans could go the U.

Well, you would even come to use of the shooting who don't yet.

Being able to get on here with the Jones Act.

Aside from the positive progress in our business. It will also further of the vast of the development and the application of our in house developed the technology in the first quarter.

But simply always in the house of audio technology solution that already project provides technology infrastructure to support more of it or the in house real time communication, which hit the RTC of technology provided by the Remy has also being applied to the live streaming broadcast feature of our annuity announced the DG forecast.

In addition to the mobile devices. The Remy also effectively support the application of flight training for Kathy the new cost scenario, enabling users to have stable includes real time communications and interactions through the internet.

He is the remarkable achievement for our EBITDAX research audio technology over the years. Furthermore, we continue our focus on developing comprehensive audio technology solutions, consisting of the audio filters audio quality improvement and other technologies, we believe the strong technology and capability.

He is 1 of our key advantages to both of the aegis competitiveness in the line audio space.

The plan to implement an increasing share of our in house technology to a wider backdrop business in the future, allowing.

Allowing users to have Bachelor of at least for me and interactive experiences while further propelling our business growth.

So I answered it well Miss other used to go to of course are you with teams that retraining of the other Indian allow the car door.

So I'm all of my life on the juices.

So as we read about all geos since any of the England Shanghai P. C chunk of all of them in the seafood.

So youll ship share.

For the E&P, So cheetah father.

Go to torrential part sales of joking type of new units in the use of course I couldn't do the union can do it.

She says we don't give all the Thunder.

In summary, we believe that our robust business give up much in the first quarter of kicked off a great start of the year going forward, we remain committed to building and enhancing our competitive audio ecosystem, we will strengthen our audio technology capabilities drive the divestment of our audio commodity ex.

Because of our globalization strategy to create audio based on social networking tap on and automate the drive continues fitness growth by leveraging our advantages to expand our product and service offerings across a broader range of devices.

So as you digest some mention of a woman the that is simple telephony soup with I got to solve.

I will come in the 2 months thanks.

Thanks, everyone for me that I will now turn the call over to our acting CFO, Ms Chen who will discuss our financial results in more detail.

Okay. Thank you Michael Halloran of what I will now provide for the overview of our financial results for the first quarter after the tender what for.

We are very pleased to have achieved strong top line growth in the first quarter of 'twenty 'twenty..1 all of our robust growth was driven by our continued effort to be able to the competitive audio ecosystem.

<unk> of average you do see community and of the amounts of commercialization capabilities.

In addition, we have strategically invested the 2 strengthening our brand equity as we both hourly of the Paul capped an in car audio business.

And to expand our footprint overseas through tier all of which we believe will propel our business growth in the future.

In the first quarter, our total net revenue increased by 34 per cent to RMB for hardware Atlantique 5 watts.

1 minute for all of the center of 2020.

Our audio entertainment venues, which contributed RMB $489.3 million to net revenue in the first quarter. After the 'twenty, 1 and represented year over year of growth of 34% the <unk>.

The increase was mainly due to the continuous growth in our aim of use and pages of base as well as in the house the commercialization capabilities of our apps.

Additionally, Paul cost of advertising and other revenue grew by 50% year over year to RMB 5.7 minutes in the first quarter of opportunity to do 1 of the.

The increase was mainly due to the interest in the number of advertisers.

Cost of revenue was RMB 370 million in the first quarter. After you took the 1 compared to RMB 297 for the formulas in the first quarter of 2020.

The ear over EBITDA increase was mainly due to an increase in revenue sharing fees to our content creators pay Manhattan costs and bandwidth costs, which are generally in line with the growth of the company it's been it.

Our gross profit was and the warehouses that $25..1 did it in the first quarter of 2021, representing an increase of 72% from RMB 72 for the 9 minutes in the first quarter of of 2020.

Our non-GAAP gross profit and the 127 for 7 minutes in the first quarter of 'twenty 'twenty, 1 representing an increase of 64% year over year.

Gross margin for the first quarter of 'twenty 'twenty, 1 increased to 25 percentage from 20% in the first quarter of 'twenty journey.

Non-GAAP gross margin for the first quarter of this of year grew to 26 per cent for all 21% in the first quarter of 2020.

Operating expenses increased by 64% year over year to RMB $197.3 million in the first quarter of 'twenty tells you what the.

Search and development expenses were RMB 56 for the liability in the first quarter up 2021, representing a year over year decrease of 30% the.

Decrease was many of the triple to decrease of share based compensation expenses as well as declining of incentives related to research and the bus money services provided by third parties.

Partially offset by the growth of salary and welfare benefits.

Selling and marketing expenses were RMB 121, 8 million in the first quarter of 'twenty 'twenty, 1 representing an increase of 2 Hauser study of 8% from RMB $75.7 million in the first quarter of 2013 the.

The increase was primarily due to our increased investment in branding and marketing for our products and brand name.

General and administrative expenses were RMB 9.6 million in the first quarter of 'twenty 'twenty, 1 representing a decrease of 26 per cent for RMB 26 point of formulas in the first quarter of 2020.

The decrease was mainly driven by a decrease in the share based compensation expenses and other miscellaneous expenses.

Our operating loss was RMB $72.2 million in the first quarter of 'twenty 'twenty 1 of.

551% year over year.

Non-GAAP operating loss was RMB 64 million in the first quarter opportunity 'twenty, 1 compared to RMB $28.7 day late in the first quarter of 2020.

And our net loss was and the 70 million of in the first quarter of 2021 hour by 48 of 45% year over year non-GAAP net loss was and the $51.8 million compared to average 20.912 minutes in the first quarter of opportunity.

And based on a diluted net loss per ads were RMB 145 in the first quarter of 231 compared to $5.33 in the first caught up to in the 20 <unk>.

GAAP basic and diluted net loss per ads as well and the 1 point of 3.3 compared to RMB <unk> 77 for any ex in the first quarter of 2020.

As of March 31, 2021, we had cash cash equivalents restricted cash actually shorten your bachman of RMB 389 million.

Looking ahead, we remain committed to leverage our strong operating capabilities and advanced technologies to further develop our global audio ecosystem and the house wrap.

The beauty to consistently deliver solid and long term growth.

Okay. This concludes our prepared remarks today and we will now open the call to questions. Operator. Please go ahead.

Thank you for the benefit of all participants on today's call. If you wish to ask the question to management in Chinese police immediately repeat your question English and for the sake of clarity for the please ask 1 question at the time management will respond and then and then feel free to follow up for your next question.

Your first question today comes from the line of.

Vincent Yu from Needham and company. Please ask your question.

Thank you management for taking my question.

I actually have quite a few questions 3 questions. The first question is can management share some metrics on P. App in the World management folks more.

Monetization of whats happening sort of in the 1 with the matrix I mean.

For the dental.

The <unk>.

Time spent per day or and the like.

The use of demographics My second question is.

Can management give it give us a sense of the use of demographic of each of podcast that and how much do they overlap each of may yet.

The third question and the.

Uh huh.

We see increased content investment by other players in the industry.

Talk about the size of the content investments Legion looks to make in 'twenty, 1 and how will the effect be just margin.

Thank you award from.

Quantify each of them.

So if you're going from 1 of your.

But you wouldn't you wouldn't know eagle into should language of Washington of open shop language of the P. GAAP.

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I assume strong Egypt.

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Women, who bleed.

When do you see the intended future.

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Coleman, the Chief got Egypt.

Peter.

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Of the E M that neither of them towards the more.

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Without the each of them.

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Minutes without going through the <unk>.

For the since the Thunder for silver 1 without.

So sort of Yoko the tango 2 number of <unk> yokel Kimble from in Shenzhen.

The general accounting items.

Turning to the always hungry tuna.

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So agenda items local country of the 10 years I'm Gonna Yoko the once the land the Sundar on society.

<unk> trillion of Shire for Indian S&P T Gala.

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For you too.

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For me element of bundle without seeing the change of Laguna, Chris Woods of Horner.

What day of changes from end of weird or central in 2 of the children.

So the.

I don't know you talk about why the timing of it though.

Okay I will translate for muscle currently we are focused more on the user scale and the engagement on the geos in the first quarter, our user base achieved the strong growth and the user engagement and reach the higher levels compared with the prior quarter.

First this was reflected by improved the user thickness and the engagement and the number of all user friendly connections increased by.

230% from the December 2020 based on various interesting topics users created created a wider spectrum of the chatroom targets, which greatest per user interactions and to drive the higher growth of user base on the other hand, we noticed that that both right.

Lindsay and penetration of.

Users in the group with the graduating have the with the launch of our New group function, which also drove the user engagement in various segments.

So net net that's doing the single into the assets.

Switching of who came with it some time for yoga coincidence and then some of the basic assume the tissue.

Well not quite to the JV, which is important for Honda So Joe Tansey version of its consumer economy.

Zinc and lead the machine caused the adult you're watching your Blue mountains of what's a good niche in the teach out volume.

Hello, This is future.

Some of it.

For those listening that other partner so its all time peak while.

The amount of it because we don't put the Vancouver tea and she says she theopathic of 17, so the second John level of selling.

So since you're doing some ear Bud bushnell.

Bush of all of them in the tungsten.

The jaco slowdown, although you can kind of most of the whole mats I will probably do you the timing of the woodlands Dearborn choose choices on your quality of them soon.

Oh sure your share telephone kind of problem of quality silicon should have gone for.

The current key of less more emphasize on the growth of the user base as well of the user engagement. We are dedicated to providing users with our diversified the social scenario team and innovative functions. While also popularizing the audio centric social product for the second by the social and.

Net entertainment needs of the younger generation.

Also remain committed to optimizing the product based on user feedback and the user experiences to achieve the stronger networks. The fact.

Therefore, exploring commercialization of its not actually our key focus at the moment once our user base growth to a certain scale, we will implement commercialization of intent based on different stages of the product the step by step and we will also keep the market updated of the annual deal.

Last point in this regard.

They are doing this.

We spoke of.

The for after the Youll go from 1 or 2 of the wind.

Is the bulk of the English.

The needs of the <unk> ICL for her talents high yield.

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Finally, I believe shipyards of income the learnings from yesterday Usher without census to Sweden.

So the long puts you in the time the soup Jaco.

Teasing out the sort of sense of without CIS of suicide to the Neupogen claims reported.

For the good momentum.

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Each of them.

The bulk of book so the total total guangxu jewelry true again.

True to the can book Gogo go I'm sure of that.

So moving in the pool.

The second question is about the user base of lead to forecast that is actually a significant difference between the user groups of leakage of forecast and those of the need to act in particular, the niche of podcast features of higher proportion of users from tier 1 and tier 2 cities in China with a balanced the adjourn.

The distribution. Additionally, the proportion of users the age of the 25% searching for is higher followed by aged 35 to 40 for this is almost in line with the target of user group from the originally aimed to reach which is young and middle age of the users in top tier cities that we intend to true.

Through our <unk> forecast and the application of across multiple devices and scenarios.

Many of the ones with all the it's the bulk of the Youll force yields from do it there too for the T cell the engine both.

Both our system the other.

Boss of the nosewheel.

You can leave the.

The bolt ons the types of time board believes the available number.

And the Yahoo. The seen.

The bulk of the area, we're going to kind of seems clear.

Kind of arguing for the thing or the.

<unk> this is on the Manhattan.

Southern actually which is the leader.

So you swore me Europe reported of Goldman Sachs. Your net tangible book.

For clubs with US who don't see the thing you put yourself for the Chinese nor for you too.

Well I will know query tissue to bulk of the Thompson.

Yes, the amount Singapore, then go treat them to win booklet of profit.

Moreover, we are seeing the increasing level of usage of the need to forecast for me is user group, where the average daily expanding time per user of reaching about age of minutes, we achieved much higher than the Libre App users also demonstrated the stronger interest in our new podcast content offerings, while the other Matt.

FX, including our use of subscription.

And relative to competitor of being the podcast market.

The April we unveiled the new luxury of new forecast feature only true for capital to bolster the real time interaction between audience audiences and the broadcasters, which further enhance the our user engagement and the user.

Active live nation of hat, we will continuing innovating mutual forecast, while aiming to further propel the development of the Chinese podcasting industry.

The second 1 needless to say the auto Ru form in the Kingdom of.

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Teva P&L of dosing.

Okay understood. Thank you.

Its interest in digital room than some of the INR woman of literally since.

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We don't do the income.

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In the near term, but Sunday lessor.

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Of the Chile project.

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Both of them and that's under the put your not just for you to your woman seeing seeing the broker of P. J. It comes the name.

Some of the timber from.

So on the near where do you share some sort of you soon.

Your question Johan <unk> vehicle.

Turning to the amount, even though you can actually yoga, what's called the donut hole.

Okay. The third question is about the Max the margin impact of country, we focused the steel.

Accumulating the high quality and diversified content offerings and also plan to make tonnage of investments towards building our content library that is the aligned without cat bonds futures over all of it. We believe these investments will happen limited the impact of lower profitability for the.

The need to add has a relatively low cost in terms of the content offering had the it can leverage our unique UGC commodity to spur the organic growth in the UGC content offering. Furthermore, we can discover and distribute high quality content using our advanced the AI technology in a day.

The Egypt forecast the contempt to weighted forecast from the beach absolute stack of of content offerings as well as exclusive forecast offerings from forecasters. We have signed so we have our own strategy roadmap for exclusive content investment in this regard we will adopt the diversified strategy.

Attract more outstanding forecasters and optimize the cost structure, including discovery and cultivating more content creators with great for casual launching the innovative pockets features adopting a blockchain technology for the copyright protection to attract more captures pop happen and for.

While the forecasters with more opportunities.

For the future development.

In addition.

It's all about the differentiate ourselves from other top line. So we can have Bachelor of scrap on the cost the structure and the investments are more.

Moreover, we are actively developing and expanding the applicable scenario for podcasts to help broadcasters nature of broader audience base, including like in cost scenario and other smart devices. Indeed, our strategic go mapping narrowed the batch enable us to attract a new forecast of 1.

Now of optimizing the content cost of control.

And we can optimize the cost structure for a more mature business a step by step overall I believe that our gross margin and the.

The profitability will half of mineral space to grow.

Oh, well played out of tissue. Thank you.

Yeah. This concludes my encountered.

And our next question today comes from the line of.

Vicky Wei from Citi.

Ask your question.

Oh, I need that sounds somehow cause the gist of what have you.

What is the funding.

But you know we'll do that.

Especially when many of kind of all goes up in the future.

The phone she took walker of the P F.

So all of that.

J P. The kind of Oh, I'm going to each other right.

Kicked in so we have some of that just yet what did you buy your zone. So commodity management. Thanks for taking my question. My question is about the scale of the investment.

Yeah, and its implications for the margin profile. Thank you.

Yeah.

Thank you Ricky let me share some information about the question.

Actually in the first quarter of along with the launch of our new product and the our strategy to bolster podcast application.

Across multiple devices, our increasing investment in branding and marketing.

Also in the back in kiosk expression of in overseas market.

But the investment is related more out of the state of August led to an overall increase in the selling and marketing expenses compared to the prior quarter, which also net to our net loss in the quarter.

Additionally, we also paid close attention to all kinds of offerings on the the polecat, which also increased carbon cost compared to the prior culture.

So I believe it had the limited impact our overall margin.

And as Michael mentioned before as we have diversified forecast of resources, including the content creator from the lives App and some inclusive at line cause the.

Paul clusters with the site. Additionally, I think the.

Overall, you came back much of it.

The limited in the future of where we're focused more out of the loss of operating overseas.

As a general argued plasma at every stage of.

Always be based out of the company's long term do you want the plant Oh, well likely have some impact all of our margin you know Showtime by way of realized our effort towards efficient credit promotion, Okay for the company established the Ohio reputation and at the 5 brand awareness amongst users of <unk>.

Which is beneficial for our long term themselves.

The application of <unk>.

The play out and the acceleration of our business groups. So it'll future we will undertake the Atlantic adjustments for each business segment as diversified forecast metrics are.

To further optimize our cost structure and overall operating efficiency.

Thank you.

The someone's FY 'twenty sales.

Oh, how the.

The hit the vacate of how all of US I also actually be interested the oh.

Inside of a book or somebody that you got towards the way most of the delivery that you signed up a touch of what's that union easy to just the E. She's had any thoughts at all just rush of them about the ITT of negative what kind of MTBE woman's back for that 1 of the total number would you like to do now that's something that you've got kind of insurance I'm all for people that that's all for me.

So you'll be I thought of you see of Peru, now all of the woman that yeah, My father's day, probably not usually in the total but what I can do that you of Ti doesn't go your way more has to be for the salaries were actually not in the total squamous amidst the.

So it's kind of all of a diabetes you toward that end of shelf all for a market somebody like simple cause somebody to be silly of me in terms of doesn't that I'll play it out of what was that the easy to us. So I think we're sort of messy, which anchors the chance it'll be not so your ETF products. Not. Meanwhile, you from you on many of these households for the Johnnie Walker the Liberals they hit yourself.

Sweep tomes or they don't have been thought of cash well, it's unlikely to be theory in Houston that that's just the the trade done can even do the in shop off Josh I'll draw you to the backup archive. It all just the woman site tours of the of course, you from here how should the I'll point out products for all of them aside the land leases at&t's off the 8 without the garage.

The 1 element of what.

For that I took the job for a fifth of without them. They will talk about the language. It was all of them. So that you got out of home team recently like kind of a woman a factor of the theater out of total has to go into the country 5 guys. The single colleague Black Channel. Yes, you do them literally of will it be the E shop, a Bachelor of woman, which area of Canada, Obviously youll shot of it would be an idea of sort of rebound of bonuses.

Jenny Cook, how they got caught by all parties the Hilda knutsen.

Oh, hi, all of the country, the godfather out, but the way I'll hop, which we're not sure of based on top of the you can bundle all the way I want me, if we'd gone to them and you'll find out once.

You're trying to go from Intel would you take share from packed house the play out yet, but from what we aren't part of your campaign like simple Yokohama tens of somebody ago. So an element of change of realize well that the T. V shall we have sales I forgot that the truth of course yet.

Yeah.

Cause yet.

Yeah.

And the next question today comes on line.

From Credit Suisse. Please go ahead.

Thank you management for taking my question and I have a quick 1 here.

We have some color on the update on the Dara in the project and are thinking about longer term. The how do we think the technology development will continue to feel of the business growth for the true. Thank you.

Yeah.

Okay.

The 2 should continue for a minute ago. So the.

Some of the team zone so to share.

So let me so the woman.

The scene.

It's useful to do fine.

Alcohol assisted of Eugene Sandridge in the century in Joker Youll part of them.

The the Martinez to your women's day, so yeah, I'm, saying to you Superman the general puts call. It seems that so let me somewhere near where it comes out of your awards you're going up.

And then just for the system.

Is the bulk of the simple goonan socio total meet you all of these countries.

Bottom line.

The new tender.

So you know this isn't the threshold.

So just the 1 time and elements into it because they're buying of solar.

A copy of the Super senior for Tusa lots of Oakland and I'd say, it's without the O&M in the Union.

But the 1 block <unk>.

Based on the use of the ship them out.

So that's the other than the unions from Shannon shovel.

Use of good whammy so.

Can you just tell me the senior tranches, which you give me the day to day.

The other Amanda.

So with some of the findings of the government of additional discipline young until the sale it could be the.

Tooling.

Okay I'll try the macros the answers.

The first question is about the development on the Remy Polecats at RMB is all in house developed the audio technology solution, providing real time, all of my audio and audio futures audio the assertion of optimization in the first quarter, we achieved the great progress for all of the health of audio technology the <unk>.

The project also provided technology infrastructure to support more businesses all of in House of audio technology has also been applied to the luxury of NIM forecast feature of the in each of podcasts, ensuring the stable and the smooth real time audio transmission, particularly in addition to the mobile devices rehab.

Also made tailor the configuration for the even cost scenario for the supporting the live streaming forecast future for the ink part use including the optimization of the ample of suppression system between true the sound quality and the audio on the taxes.

Because like any of the unit cost scenario.

The audio transmission with the alcohols the pressure is quite different from with the mobile devices, thereby weekend delivering a competitive found the fact and user experiences with our in house the about the technology.

Just a level of nuclear.

You should see the NCS Lavazza is it's 1 of the let me lie on the I'll say it broadens the appeal. It is it useful of meals, maybe it doesn't have the francois.

Much of it so a bit of downtown San Jose language of mobile come for the answer and that is unless you completed.

As you know with all of them for the user.

The total visitor someone out of your way tissue Youll cognizant of.

Woman Gwas put them below the U <unk>.

Uh huh.

You don't want you to do that should have a year of women that you're having net.

The timing on that kind of CNS useful criticism woman.

Well most of Sudan bottleneck in the mid <unk>.

Some of you you like the Samsung the excuse me from time, well many of you wont rely on the go so you shouldn't say youre moving well.

Some of the other puncture.

Some of what can go the C and the chips for the Union Senior Bush for your classic of that somebody to go see some even as Sheldon from.

So now you said the number you quoted Hugo free time, good policy in the commodity.

The amount of park well non non Q2.

Of course of the good thing for the new VP of.

Going forward, we will continue to advance our new house technology actually besides the R&D project and we also have other than the husky about the technologies that we might be difficult in the future and that's the R&D project will also be optimized than I can.

Craig in between power of more business line.

In the long run our in house technology is able to be true for our competitiveness in the market instead of relying on third party Tech market Tampa, We hope to apply morning House technologies to further optimize all across the structure and also in 2 of the operating efficiency and provide a more personalized the audio export.

Sales to our users, while achieving a scalable business growth because when we use the third party technology of pack ons is heart class to provide the personalized the audio experiences to our users.

Of course that just the strength.

Thank you.

And the last question today comes from the line of for yourself from Hydro.

Ask your question.

Okay do you have anything additional in the Tijuana with Julian you go from kind of V go share.

And she does that lead you went out to the young group of Josie no teach the sounds that much of the Indian Central agent App that you the whole she's got the ways that our translate for myself I think the management for taking my question I have a quick question regarding your future of guidance, Okay, especially for the audio connection.

Sure.

Uh huh.

Huh.

All of them in the tens of the salary of real quick what she said deal you could put in just for you use some been some types of from reducing.

To deal with all of them kind of could you give some sort of other channel can do that's something the other channel she put them in some of the year, where the tissues of other.

Oh, Thank you, Sam and I will translate for Michael.

The question is about our strategy.

So firstly, our overall strategy will be based the only on the our audio tanks in the ecosystem we will.

Through the diversified footprint and the vastness of our technology infrastructure to create more growth potential in the drive the continuous growth of the overall business.

So again, if the if you're sort of woman the.

She tender timing using terms on way some of the subsequent time.

The long haul of Doyle and father, you'll just see the income millions of phones for the <unk> below the 1 for yeah. William could you go into the country I'm in the UK tons of fund the sample put on the compute woman.

Woman Kid of somebody I mean, you are right.

Well the chance you might choose to while she didn't taboo for solar and you need to ease of use.

For the younger.

And the other some of your final question.

So I will move away from volume Senior Board of Chicken go golf for you the switch.

So true the Sunshine country of judge on the limping along the line.

The took a little more.

The yonker true.

To use them.

The the Youll put us in Hulu.

So now you say, it's what's your feel for you and put us on the path twice the share.

The antenna show to the zone.

Firstly all flow.

The flagship product needs of the App has grown into a comprehensive of commodity which combines diversify the UGC audio contacts and the abundant. The audio entertainment features also providing users with a Y the ranking tools for audio content creation audio content sharing and the interaction in the.

The first quarter of our overall average of mobile use and.

And then you increased the.

The 215, $9.7 million most of which generated from the theater at.

It also indicates that the need to add remains for the commercialization potential in.

In the next the by leveraging our operational strategies, we will further cultivate our highly engaged for the community and then you have the integration of audio entertainment in the pre recorded content segments to boost of the who their penetration in the audio Entertainment segment. Meanwhile, we will continue improving the.

Conversion of the paying users to achieve the solid topline growth.

Oh amortizing payment you the entering in 2 months' range, you'll qualify them for you going up for 5 minutes of this.

Oh, yes shipment at all of the.

Well I won't know clearly don't think it's useful Union says if I'm in the usage.

She says the tradeoff of woman.

How are the kind of of pull true.

For money away just the judge on the book of some kind of any of the chance of 2 of the bulk of the day.

Most of them go on the IMU.

Since the woman.

Welcome to the Chico's thompsons debt of control.

Sure.

You can throw the today.

1 of the union on the loyalty.

A considerable amount of the Genesis or book of the Thomson video of what you're going to have the bulk of it yet you only of broker to true total control. There you see the funds you quick.

Our years of the experience with the auto in the 10 months provide widespread support in the sets the stage for weeks fashion as mentioned earlier, we will leverage our technical and operational advantages to further boost the our global strategic footprint. We will also continue building the podcast ecosystem and in.

Through the application of the forecast across multiple devices recently, we have been discussing the collaboration opportunities with more auto companies and we will implement our used car product the more auto systems. Meanwhile, we will continue the podcast innovation to provide batch of user experience.

Says and create more development opportunities for our of podcast the content creators.

No till July saw that Joseph Israel.

Clearly the women they go away like the sugar of turns out so it's only a chunk of the company.

Thiago I'm sure the liberal known change of the product.

You won't fit on.

The other charts tell me of the content.

The simple curbside she took the 1 you're sure Leila rely the generics you sort of the sedan.

Oh man tons out of the issue.

The.

Or do they at least through the rollout of them fit Honeywell Susan so plenty.

<unk> share woman sorry, sorry.

As I said in any of your tone and tenure of course.

Of course, you should see some of that just with the meat.

Uh huh.

<unk> quip, our suite on the day, you quit a ton of them couldn't do the selling of Johnson.

Oh, Yeah, you Tina Zheng Yan Chairman woman.

Please.

The challenging the you will some of the emerging market.

In summary lead your App will continuous new try if our top line growth and the tea business in overseas market provides great potential for also validation of expansion.

For the the drip forecast of we think it provides more potential in the podcast market in the era of the electric vehicle market.

I am very cognizant in the just future development with our years of upgrade teams renters and the strong technical capabilities in the home out of the industry. We are poised to capture the market opportunities and create more business value. I also expect it to continue achieving our stronger business growth for the full yet.

Thank you.

Thank you.

Yeah.

You're talking strength that does conclude today's question and answer session.

I'd like to hand, the call back for the company for closing remarks.

Thank you once again for joining US today. If you have further questions. Please feel free to contact the interest Investor relations to read the accounting information provided on our website at IR Darlington thought have the apps or our TPG.

Looking at the relation thank you.

Thank you everyone.

Thank you everyone.

This concludes the conference call today, you May now disconnect. Your line. Thank you everybody. Thank you.

Okay.