Q2 2021 36kr Holdings Inc Earnings Call

August 24, 2021

[music].

Hello, Ladies and gentlemen, thank you for standing by for 36 Care Holdings, Inc. Second 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 call is being recorded.

I would now like to turn the call over to your house, Yes, Li IR manager of the company. Please go ahead yeah.

Thank you very much Hello, everyone and welcome to city said peer Holdings' second quarter 2021 earnings conference call the company's financial and operational results were released earlier today and helping made available online you can also view the earnings press release that would be between the IR section of our website at IR <unk> com.

But he's depends on today's call will include our co chairman and CEO, Mr Algonquin and otherwise.

Financing and kept some royalties Ms Lynn Lake.

Therefore, we will start our call by providing an overview of the company and performance highlights of the quarter in Chinese followed by.

The English translation Israeli will then provide details on the company's financial results before opening the call for questions.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Probably securities legislation Reform Act of 1995 forward looking statements involve inherent risks and that is it.

As such the company's results may be materially different from the views expressed today further information regarding these and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U S that the company does not assume any obligation to update any forward looking statements.

Except as required under applicable law.

Please note that 56 earnings press release, and this conference call includes discussion of unaudited GAAP financial measures as well as well as unaudited non-GAAP financial measures <unk> press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures also please.

Note that all amounts are in RMB.

I'll now turn the call, which our co chairman and CEO Mr talk on for Paul. Please go ahead.

Yes.

I know thats not an argument.

Yeah.

Thank you Hello, everyone and thank you for participating in our 2020, one second quarter results conference call.

Alright, Jackie do since he's known to them.

UCF always akhil kind of closer to that community.

Peter looks like he's young Li.

Here we.

Good growth.

Thank you John.

You are teaching them how to account for the quarter, while Johan <unk> Suzhou pencil.

Thank you Congress would have them broken with it.

So this is something you're trying to do exactly that.

And.

I mean, it was a heart wrenching with all those all important June but you're going to have a cohort.

So I got you.

In the second quarter of 2021, we continue to enhance common collagen influence while strategically focusing our enterprise services is our growth driver. This adverse broadens, our new economy focused content offerings and value added services further developing our core computers and the spirit hiding business innovation, we have planned robots.

Progress in content arrangements with a worthy side presentation format to meet the needs of valid user groups. While also exploring possibilities for innovative services well over our progress in products and technologies is paving the way for us to empower their growth of new economic participants as well as the digitalization of traditional industries.

But you can have a compelling value proposition so more customers users and investors and gives me a lot of fresh opportunities and challenges.

As usual, we'll come on to what Alan said at Ingalls right now.

When we come out on the tissue physical Education Center Ddos.

And so on and I don't think I'll pass it on.

It sounds like OEM growth.

Now these people within our control.

Or have you here.

She's a rental home cool right.

Got you got you.

Well, what they want for their users traffic valium, which are new highest average monthly page views of $846.3 million up 77% year over year. The second quarter of 2021 months, our seventh 10th consecutive quarter of TV growth reaffirming our Conan strong user revenue.

<unk> and our growing brand awareness, the rising popularity and the recognition of statistics chaos content and platforms largely stem from our continuing innovation in flexible content formats Omnichannel content distribution and all work in January and then in our Horizon, Let me walk you through our progress and our strategy.

Each of these areas.

The only thing you forgot to tell you that it's all you'll have either.

Gotcha.

Okay.

Hello.

Congrats on all the tornado.

Right now the answer to that.

If you walk into Europe.

For example.

First with respect to content strategy, we prevent content in various formats across a wide range of these new sectors to address the full spectrum of user demand our powerful proprietary platform delivers comprehensive reports and insights across both professional and user generated content for PTC in UGC.

Do you think that's what you should note tax in Egypt, we have expanded our offerings to audio short video and the left running at central problems at work users.

User feedback regarding each of these information dissemination channels has been quite positive.

Hey, Clarke now they can go home she runs that were not fully ramped.

<unk> bought all of Europe.

Yes.

Uh-huh San Luca for Cimzia in foundry.

Financial guarantee you can see.

The total Chinese outbound OEM, what's your <unk> that you're doing now.

Sure sure.

You put it into not only almost neutral for the company. So you don't even for those who need to find them depending on what you've done there.

Oh man.

Two housekeeping for me.

Thank you.

Oh, Yeah, we're continuing in that country as a whole on a neutral from a profit to the mall Borgata consumed has you can find him or her answer they need to undergo SEC also going down.

We continue to make progress with the strategic planning window into content formats. During the second quarter I believe the number of articles published our primary wechat accounts with leadership of over 100000 in school to 180, a new record.

Other exciting content and usually takes include our audio program PR Walkman, which provides the user with the latest business high life insurance segment. They just take.

That takes a few minutes to digest. Meanwhile, our sharepoint radio covering various topics, including Pam business current public affairs economics of finance and personnel growth also gained popularity among various groups of consumers and either.

In term of content genre.

That was.

He says our statistics here how many accounts. We also have a full scale of content matrix that covers different topics. For example, our key outgrow column targets professional groups in depth industrial entrust and <unk> Tvs, the younger audience and call. It lighter business is more call that topic is rapidly, becoming a partner and gaining growth momentum among younger generations.

Sure.

Yeah. So this is right now.

Since you all she found no gross average Liberal Arts hotel.

Italy has integrated pulp whenever we no longer haul will then GTO was actually an agreed I thought you'd hope it doesn't have to be done.

A question would you hold something for bookings to be half of the hard work put out and put out a policy that enables indeed, bringing him how does indeed, you won't bottleneck.

That's just in case, you're wondering on Apple juice Shaw, President and he put it out and go out equal.

Second we continue to executive our omni channel distribution strategy to become a top calling in for wider into finance economics vertical on Wechat, we bought Tokyo and audio comprehensive traffic platforms 66, KR has also been building business cooperations with top tier short video platforms, such as Dow in really the only partial.

Cheerful shelf onshore and Wechat channel leveraging our programs and short form video content. This collaboration will enable us to reach more of their work is by any recent user communities and provide them with a variety of season insights and analytics content or initiatives to promote short video live streaming content are crucial for us to see that work.

OFC and user base to what has happened to DTC service offerings.

That's really what we're not doing anything that's actually narrow body at an empire.

Could you talk to that again, how do you handle that.

She's a wider than usual.

Middle East is the short you talk about what we've done as I said before you can go back.

Sure Frank.

As usual.

Sure yourself injure the infusion doesn't always looking back kind of protein for the entire cohort.

Got it.

Sure.

We ended up with us.

Window shopping with e-commerce, she's on residual for those not on sale tracking going into holiday.

Yeah.

<unk> agenda.

Okay.

So I don't think I'll send me an IPO borne out for what you do.

And I'll turn it over.

My own opinion in downtown Nashville.

Bill.

He is with Europe central or eliminate OEM.

Commvault Franklin.

We haven't I don't want to get uncomfortable talking.

Talking about our.

Be it with fee income growth can be truly time hopkinsville.

Now I'd like to talk more specifically about our show from leading content. It has been exactly a year since we embarked on our short form video initiative and we business is rapidly growing in popularity across diverse demographics. We are very pleased to see that we have attracted more than 4 million followers in the OEM.

And more than 800 intelligence follow or something we'd daily among other platforms.

Artful criteria, including follower base.

Content depth, where she will confirm it and shop tracking 66 layer has been recognized as one of the top tier of short form video business verticals across all major social media platforms.

Notable success in the second quarter with our blockbuster video the meaningful change yourself, which we basically also in Philadelphia and several other platforms. This corrupt their content attract a reckless, citing viewership of over 30 million total views.

Your payment holidays for three consecutive days.

We are also excited to share that our recent video clips on interpretation of the Olympics games. The company set new highs, we are seeking more than 100 million total views and one to four 2 million likes and adding 20 to 100000, new followers, but neither of the August 2021, 66. They are short form video had a variety of chips.

Annual targets of getting 2 million new followers.

Tony number further validates that increasingly route individual user community is enjoying and are consuming our content, reaching churn drops DTC business marketing spend when you our platform looking forward. We believe US we believe our ship video content initiated will continue to attract a wider.

Our range of user communities and boost our commercialization.

Oh it is.

I guess you don't have some view on China. So there's hundreds of course of your life.

Sure.

Without us around country and quantify them.

And as usual.

Over the Hurricane insurance you got in the yard you should also note that we continue to show growth not multiples attached to that.

Also had positive seasonality.

Seasonality Jonathan annual cost side, how did you go over the other 94 vehicles into the only artist Thomas Gangl Hawk anything unusual here.

We continue upgrading our product offerings for public exiting markets. Our secondary market products are a natural extension of our <unk> experience and expertise in serving star up companies over the past 10 years and are quickly gaining traction for instance in July we joined forces with industrial securities to host <unk>.

Investor Forum covering topics around both the profit in secondary markets. We also collaborated with the ICC to cope with a 50.6K, a capsule pie a new program focusing on in the retail investor education, which greatly enhance our influence and recognition in both institutional and individual investors vehicles.

There were things that our customer base and laid a solid foundation for customer expansion in the secondary market.

He says.

And then Jonathan Bush budget Atlanta.

I'll introduce you to Hungary.

Don't forget if you prefer ulcer cookies predominantly.

You're going to meet your guidance here that bundle you cannot go down below that of the vehicle such as necessarily centrifugal trying to play along.

She's on track with that.

Sure.

And then do you feel it helps us out of revenue.

Certain items on both the rooms that youre trying to put kids in particular that you feel you sometimes houses.

Okay.

So.

First we celebrated the Grand opening of our New York headquarters in Shenzhen and moved to capitalize on the opportunities in the Greater Bay area. The Greater Bay area is joining on pension as a fast evolving innovation and technology hub that offers exciting opportunities to start up from around the world we noticed that multi.

Here with <unk> and.

The flexible part in core technology start ups have in Mod in Guangdong Province.

Considerable number of investment institutions have setup branches in Shenzhen, even that industrial in Tonight, and hardcore technology extremely popular and vulnerable.

Supported by both the clients and the investment community strapped easily selected for a central location change and will serve as our hometown Leach, we counting accessories surrounding a start up and investment institutions itself Chinas Greater Bay area.

The establishment of our 66th pay ourselves China headquarters will enable us to better meet the needs of local customers and the response again more efficiently.

<unk> our commercialization capabilities.

Oh, okay.

Okay.

Yes.

Kind of on their own based on both our total revenue.

Our pizza and welcome welcome to our forces handover to him about our needle closer on the horizon.

We've actually Nevada figure about like an Apple <unk>.

Without an argument totals africom about turnover.

As you can see June courtyard Chantal.

Because that's been a lease we are actively building 60 takes care of international presence. We are excited to wait for the Bloomberg terminal began including <unk> Care's article in these new states during the second quarter, making our latest colleague available to global leaders at the same time, our OSB business is making solid progress and gradually become profitable.

We have seen a significant increase in revenue during 2021 and our presents in Japan, Singapore has continued.

We are pleased that 66, Paris brand influence is gaining traction.

Traction worthwhile.

We got off on guidance.

You know platform and other things in that.

Comparable because at any one time, they come up with Europe.

You guys target.

You can pencil on their click out here, we'll do that.

The article with Sidoti.

Thank you Lara Fourman of Ohio, with albeit on a particular rule calls without the cogent transaction.

Farzana.

Now, let's take a look at our commercialization progress thanks to our calculation and content and products in the second quarter all of our three business segments achieved strong year over year growth on a comparable basis, Let me walk you through each of them our advertising revenue increased by 65% year over year. This quarter, we have growth.

Both the number of advertising customers and average revenue per advertising customer.

We'll maintain with answered in June sometime the traditional bundle tiers.

Have you kind of heard in the world.

So I'll go back in June.

Not only in 2000 views.

For Q2 alcohol.

Charles Copeland, who do you should not go influences us.

Turning to infusion for what you want or a tornado from Giovanni.

For Q4, bringing Joe Morford P&G that Youll target.

We continue to harness our capability and video content creation to provide customized and innovative shrimp video marketing solutions for traditional enterprises, improving gear brand image and operating their marketing take the automobile industry. For example, Fox wagon, China, joining hands with 66 here I've launched a short video.

What will the future Carlos likes to describe future automobile from them.

We're a brand new protective.

Marketing campaign helped looks like and it definitely creates more potential customers. It was also important branding and publicity plants that flight into positioning yourself from a traditional car maker to a mobility service provider for their validation of our efforts to broaden and surpass the boundaries of conventional marketing into seamless content integration.

So is there anything on the short man golf or some <unk> or <unk>.

Sudan cohort Zafar androgen withdrawal docile.

Zero or inbound who I'm with you.

Sure.

Well when I came here.

Thanks Al.

So back to Colorado, Georgia, and that'll drive almost use it improved standards, whether it's an outdoor should remain.

Great very comprehensive alcohol to jump in revenue sure probably there is also enabling us to develop new marketing solutions and penetrate more into the sea and brands and advertising clients. For example, we helped <unk> shell promote our eastern Europe, that's a max with the short form video that was well received by younger generations.

Israel took this opportunity to book away from the stereotype of direct marketing and what's very exciting to slightly is publicity cooperation with 60.6K wrong, we believe that microwave <unk> reshaping our marketing programs for the future. We can empower more brands with effective <unk> solution.

Priorities around permanent home in the jewelry industry, China Hollander.

Your tone towards Honeywell cheerful, Tom one for you on that also.

And of course, your auditors on the Protos, resulting in tissue transparency. Some features in them all.

Our secondary market products has also started initial commercialization. This quarter, we have entered into cooperation with Alibaba trip Com group commercial Helo, and Joe who will provide in depth analysis from <unk> 66 per unit perspective, showing case, a holistic cooperate image for our customers.

Sure.

You guys know or vaccine affording you the inflation agenda page 19 company, though in Guernsey zone.

Shanghai, because you set up on whether towards that.

Florida and use their car the TCE rates to loosen the OEM incentive.

Next I'd like to share with you some updates in the enterprise service business space.

By our high quality content.

Brand influence as well as expansion of the inhibition of Wetzel rent transaction volume for our enterprise value added services grew by 66% in the second quarter year over year.

Although we don't have the equivalent Qunar unit housing provide to zero on the internet or you react Quito.

So that has been because through time on later on in your dining at home I'm going to go down the hall.

Oh, so sorry is that correct.

She canvass the viral genome.

First we continue to explore various new application scenarios and distribution channels for our financial content. For example on the audio content from we collaborated with new to broadcast our podcast program care intelligence on a new radio platelets, we also cooperated with several financial institutions, including China more chips. Thanks Flemming.

Agent to help them operate their apps content covering a range of topics such as finance finish up from <unk> and Korea related issues through this new partnership we effectively expand our content distribution and commercialization opportunities.

Yes.

Are you here today is under floor clauses on border, but it all or you can grow to that cause the autonomy of our Google without trying to Ocado com.

Wanted to bundle versus your ability to negotiate and so the question I'm getting something.

So it's a complement to our books.

I was wondering if you can.

But again those into London.

Basically on bookings due to long term.

So you no longer license award, which is only one will go now to John do you want to see how those will go.

Well as central to Apple doesn't provide you she has hindered.

Potentially we can see them in June when the tenure you're going to you Andy.

And Asia organization online and offline. So amazing firearm is those are important components of our enterprise value added services. This quarter, we partnered with Google to create will go 66, <unk> Dot Com website hopping Google host multiple unlike forum on gaming brand marketing and brand transformation of cross border E.

Oh Morris did you in fact also demonstrate the deep bonds between Google into 66, Kara, allowing each company's users to better interact with each other and providing a trendy approach for both companies to attract new users and increase user loyalty.

We'll go to global online activities broke geographical barriers and surpassed time differences meeting participants access to leading edge.

<unk> experienced and in fact at anytime from anywhere.

Okay.

Yeah.

These are rules events a year.

If I'm, making all of it and there's a hurdle.

Hey, Mark it's one of our users.

And importantly, we'll do so I don't think.

That type of an enhancement for you.

The gross income cohort and total control opportunities.

Flying in the Bronx.

Unknown CBA of Tomorrow.

Leading real estate enterprises to building, a worse scenario and imagine.

Imagine a world event showcased our capabilities to interact with these user in creative interesting ways and further strengthened our brand image among the worst audience from younger generation to middle age groups.

Either user demographics.

So it's a dry familiar with us.

Send it over to Hakan, you know as usual turn it over to you for that.

Thank you Arnold.

Her 90 degrees and figure out what's going to determine when we can.

Is there any of those Charlotte it onto digital but you'll have even more sure she kind of.

As you go into these anchor tenants in order to bundles I wanted to know if you go to India.

Are you kind of audience.

Sandoz, certainly hurts you don't fool Javan.

But what it is he raised on Poland.

When he is talking about now that you've allocated competencies of Corona.

We don't show a kind of a thank you for the new initiatives.

Moreover, the companions progress of our enterprise value added services has laid a solid foundation for statistics cares regional expansion, we have been working proactively to expand our cooperation with local governments to so.

Let me see policies and regional business during the second quarter, we opened business branches into into new provinces, Hunan Guizhou, bringing our total regional offices to itself. During all 66 carats per influenced our local business presence, we help enterprises and governments.

<unk> ships connecting both parties needs and solutions in June.

These product and technology innovation conference for the government of <unk> district in Changzhou from them, probably the event attracts colleagues from more than 100, leading media outlets, including CCTV and greatly improve the stability of the teams right districts innovative science and technology sectors as well as <unk> six care capabilities in the enterprise.

And government service area.

But when he came here Patrick I'll turn it over to the hardware cycle, how do you view kind of.

Over to your house Auryxia for its entire time here and you don't have for documents into Europe goes down because you don't call Steve <unk> CFO.

They're trying to do.

For the year he turned out so that when the data was presented at the same time be reconsidered.

It doesn't actually matter.

He doesn't get on hurdle Jonathan.

Yes, they should all kind of integral part here.

I cannot tell you how you monetize it.

I'm, sorry, I'll have to rule changes that we'll be looking for income with Andrew over to you how we're going to see that I don't know.

We also recently started commercialization of our 66th Tier Enterprise accounts service self service products 66 care Enterprise account is an efficient introductory window for an enterprise to increase brand awareness exhibit products share his business progressed with a wider audience and appear to economy sector.

Our success is Cara has formed with generations of their entry printer in enterprises. We are now that reaching our brand influence debuted a platform a wider range of companies kind of fitbit fears field services and accomplishments in the new era, we hope to empower more high quality enter process and help them gain market recovery.

Nation MSR customers, we were very pleased to see the <unk> enterprises. So it's beginning to generate revenue in August and we believe that lease our brand names with this new service has a promising future.

Hello, Hi, good afternoon.

Guidance element that you wouldn't even from an agenda.

With that guidance.

Although China wearing them all.

I'm going to go from 100 to you before.

Yeah.

If we are going to come back to that two handfuls in alfalfa for Hooker These values.

How much future into guidance here.

Okay all right.

Jude.

We have found a lot of fuze tea for Nokia technologies.

Do you hold occupancy too.

Now I'd like to you, particularly introduce our progress in the enterprise service revenue business in recent years. The government has been activity actively advocating for the integration of the economy and internet as well as digital transformation in various industries.

The same time investments community is leading these are slow down in the sea end markets and declining marginal return of customer acquisition. Therefore, we believe the industrial Internet economy. These enterprises are always our core Wilson offering huge development opportunities at new economy enterprises, and traditionally process have intrinsic.

Place for digital offerings and digital transformation respectively.

Yeah Ali already answered it.

It kind of across that individual's Andrew hurts, you wouldn't be doing that she wanted to either silver and let's see if we get something.

Looking ahead to.

And this year for sure.

Nancy will go somewhat volatile, particularly these answers are connected.

And it's gonna be it from Florida.

You showed results from our cohorts you can come out of Europe.

I don't recall, what you want your Utica nutrition through here to try things out of the fourth and final cohort with total hotels yet towards revenue without.

I'll give you the walk you familiar this is above all specialties Contra revenue. So you won't have to do.

Asia Pac growth hormone President and that's the one you pointed out with human T cells with this background in October 2000, 2066, <unk> launched a enterprise service revenue portal. The first comprehensive enterprise, so with prestige moments the CPC them, making platform in China, It's a one stop platform solution.

Aiming to facilitate service providers to acquire customers and demand side to make them for.

Precision lens, we see that the platform delivers information and margin from the three of Europe service interaction and data on service layer, we provide customer with one on one consolidation self helping learning tools and such a community function on the interaction linear we help customers search for and future informed.

Asian in multiple dimensions.

In both comparisons.

And then they can replace it.

Did they tell a year, we provide customer with industry data and category information process features we will name reviews and commentaries as well as successful case studies and supplier climate information et cetera.

Thanks Sue.

They don't go turn it over to you.

If women and children.

What are your shareholders like Badger.

I was going down a community for Nucor.

They're knocking it out for you for that color here.

People want it even faster so it's only one quarter.

I don't know if we didn't do sure exactly you won't see much of it would be nice people hung up on it.

We're not doing business with you.

Visual with other companies.

Turn it over I'm wondering what kind of a higher.

Yes, I know, it's a very more the pure R&D you can tell me a Huntington program GA.

Over the past 10 years <unk> has accumulated in depth expertise and unique advantages in providing enterprise services for example, supporting petrol and content capabilities. We have built a database of over 800000 economy enterprises and accumulating numerous top experts and key opinion leaders kols.

We can also help you to this gain access to relevant industry associations resources and enhance your understanding of the industry.

<unk> Enterprise service revenue is the domestic enterprise service platform, providing real named comments and is widely recognized as a bathroom OEM some of the <unk> markets. Our professional graph of Enterprise survey software is Walmart suffered.

It has been that of our peers.

Our scanner, providing similar services.

Or do you feel classification of the SaaS industry is thought into our main categories and subcategories, which has become the industry benchmark and standouts.

So Sean do you guys own royalties looking about turnover COVID-19 anything while these installations on how some headroom and as usual to shut them in together.

Together this year just looking back could you argue to more tier four we can't give you guidance.

Sure how about sustainability of revenue.

Sure Michael.

If you have not yet towards Europe will materially and we can really drive we couldn't help struggling with how workforces are higher than that we're looking at IPO.

Bundled <unk> and Kahala panda, putting elisa automate repetitive represent the high end of easier to use with the.

<unk> do you want to know, what's Asher <unk> chartered for Western Europe.

From a bundle over the motor pool.

You can vote at any.

Jim kind of involved in additional countries.

So you're not seeing that hurdle.

Part of this year for those two things are tangible.

She was a tomato harder you called out I'm not sure.

How many thought was going to be not going to.

Robert I mean, you're talking about most of those individual users.

He was in our view when it comes with GSO to maybe it off would've come back at you.

As the first enterprise service revenue platform in China, 60, 6K, our enterprise service revenue has become the most comprehensive.

I know that enterprises to hear Youre, making.

By the end of the second quarter. So we view portal had showcased a workforce enterprise service applications covering software across 15 industries and towards 200 category. Meanwhile, we have received thousands of real user comments and black dozens of industry experts to join the platform offer their opinions to the hub.

The demand side to make better decisions malware beauty on our own in depth understanding of industry. We are able to flooring has our enterprise service with switch content support recently, we start initial commercialization of the revenue photo service in may by introducing products in a more.

Expressive and logical way and improving user interaction, which successfully help of SaaS revenue for wider obtained morrisville fleece business happen.

Estimated per watt kevorkian rates as high as 20%, while the cost of conversion was greatly reduced we believe that as we continuously refining our product and formally.

Commercialization.

Our enterprise service revenue portal will become a new driver of the company's future growth.

<unk> tremendous value on our way to expand the voluntary of medium and tap into more enterprise, though is this.

So you don't have forgotten how can they afford us to do that.

Our digital business.

Most of it looks like a real hot totals will be come down, but I'll, let him do doctors with guidance.

Guidance.

Turning out you've heard a bunch of things here. So don't come on I hope to have a rich hunting decoys on the Arizona with androgens huge youre talking in pregnancy.

Peter moved for two that you're trying to enroll you said I'll run by future reporting that was weird.

So Andrew do you want me to talk time, and the reason I shouldn't do hydrogen fuel.

Southern Europe.

Sure.

Do you have those are important as you if.

You don't have a whole different animal protein if you wouldn't mind towards your own engine.

Luckily come into our subscription service in the second quarter, we revamped our subscription service model a witness a revenue growth of 124% year over year or subscription membership service available through both online and offline channels. Unlike subscription will focus on the tier column, reaching our 56.

Care App for knowledge products ordered for your training program, helping college students and new efforts to improve your professional skills for offline subscription service. We also membership programs such as entry three Neurostar and Speedway star classes boring.

New opportunities for practitioners and various views to engage in deep communication and interaction with industry leaders experts face to face in the second half of this year, we will continue to expand the breadth and depth of our subscription offerings for our users to better satisfy their needs and further improve user stickiness.

So what's wrong.

And they are due to turnover.

UV Records.

For example, if you want to go down from here.

This was one of them now.

There are three doses other countries because that's how it shook out in trouble introduces promoters dividend income ratio here, where they're sitting in a room.

Youll.

What are your predictions out there all right I will be talking to so there should be indeed tie every law, including the higher acuity issue. It's always trying to do for US as you know if R&D.

In summary in the second quarter of 2021, 56 care continue to enhance his influence on the economy centric content offerings.

Achieving growth in both the truck volume and the number of total followers on all platforms. We are pleased to have delivered strong financial results in the second quarter exceeding analysts' expectations on all key financial metrics led by our GAAP.

That devotion and investment in our enterprise service revenue business. The company has been made with our initial results by innovating and exploring the commercialization opportunities of our new business initiatives. Looking ahead. We believe that 66 pair is well poised to capitalize on the revenue loss of real economy.

<unk> industrial Internet and heart and core technology to create revenue development opportunities.

Henry Washington into a home that houses a bunch of golf balls I already forgot home. Good household element of dry dock days with that I will now turn the call over to our VP of finance at capital markets, Mr. Wang who will discuss our key financial results. Please go ahead Lynn.

Thank you Paul and Hello, everyone. We are pleased to have achieved a set of solid financial results in the second quarter of 2021 with a strong year over year growth across all of our business segments on a comparable basis, notably as Paul just mentioned, although I don't have any revenue increased by 65, 1% this quarter compared to the same period of last year.

Demonstrating sustained user engagement and customer interest in our premium content and service offerings.

Also thanks to all continued apple to provide customized and innovative services revenue from our enterprise value added services more than doubled sequentially and its grand transaction value increased by 35, 9% year over year innovation, all commitments to maintaining efficient operation with our increased focus on higher.

<unk> businesses is paying off with gross margin expanding to 57.

Prasad <unk> from 29% in the same period of last year and net loss narrowed by 56, 8% year over year. Looking ahead. We believe we are well positioned to continue this growth trajectory setting new economy package, but more effectively and expand our monetization channels to seize the vast opportunities ahead of us.

Now I'd like to walk you through more details on our second quarter 2021 financial results.

Advertising services revenue increased by 65, 1% to RMB 51, 7 million in the second quarter of 2021 from RMB $31.3 million in the same period of last year.

<unk> was primarily attributable to the strong recovery of market demand as well as more innovative marketing solutions provided to our customers.

The number of advertising customers and the average revenue per advertising customer both achieved strong growth in the second quarter of 2021.

Enterprise value added services revenue were RMB 14, plus we're meeting in the second quarter of 2021 compared to RMB $42.6 million in the same period last year.

Decrease was primarily because we continuously shifted our focus towards higher margin businesses and starting from the first quarter of 2021 with fees to act as a principal in certain low gross margin businesses and only acted as an agent as a result revenues of such businesses were recognized in that basis from the fourth quarter onward.

To increase comparability of operating results and help investors better understand our business performance and operating trends were introduced at the golf side, that's a value added supplemental matrix to describe our business.

Gross transaction value of enterprise value added services was RMB $57.9 million in the second quarter of 2021 increased by 35, 9% from RMB $42.6 million in the same period of last year.

Subscription services revenues increased by 124, 1% to RMB <unk> 6 million in the second quarter of 2021 from RMB $2.7 million in same period of last year. The increase was primarily attributable to high quality subscription product, we offered to our institutional and individual subscribers.

Total revenues were RMB $72.1 million in the second quarter of 2021 compared to RMB $76.7 million in the same period last year.

Taking into consideration of the aforementioned change in revenue recognition for our enterprise value added services, which involved.

On the $43.6 million balance between that revenue and gross transaction value you will actually find that we maintained all upward trend and demonstrated solid year over year growth.

Cost of revenue was RMB 37 meetings in the second quarter of 2021 compared to RMB $54.4 million in the same period of last year.

The decrease was primarily due to our continued cost control measures to improve our operational efficiency and akshay, it's a focus towards higher margin businesses as well as the recognition of certain revenue I mean that business, which we discussed earlier in the anthrax valued added services section.

Gross profit increased by 86, 1% to RMB $41.4 million in the second quarter of 2021 from RMB $22.2 million in the same period gross profit margin was 57, 4% in the second quarter of 2021 compared to 29% in the same period last year operating.

Sensors were RMB $75.3 million in the second quarter of 2021 compared to RMB $99.4 million in the same period last year.

Sales and marketing expenses were RMB, three $3.4 million in the second quarter of 2021 compared to RMB 39 million in the same period last year. The decrease was primarily attributable to the decrease in marketing expenses and share based compensation expenses.

G&A expenses were RMB $29.9 million in the second quarter of 2021 compared to RMB 59 million in the same period of last year. The decrease was primarily attributable to the decrease in the allowance for credit losses and share based compensation expenses research and development expenses were RMB 12 million in the second quarter of 2000.

91, compared to RMB nine 6 million in the same period of last year the income.

This was primarily attributable to the increase in payroll and related expenses as we beefed up our research and development capabilities.

Share based compensation expenses recognized in cost of revenue sales and marketing expenses research and development expenses as well as G&A expenses totaled RMB $3.3 million in the second quarter of 2021 compared to RMB $12.6 million in the same period of last year.

Net loss was RMB $34.3 million in the second quarter of 2021 compared to RMB $79.3 million in the same period last year.

Non-GAAP adjusted net loss was RMB 31 million in the second quarter of 2021 compared to RMB $66.7 million in the same period of last year MAU.

Ball's attributable to <unk> holdings ordinary shareholders was RMB $34, one meeting in the same period.

In the second quarter of 2021 compared to RMB $79, five 5 million in the same period of last year.

Basic and diluted net loss per share were both RMB three three cents in the second quarter of 2021 compared to <unk> seven.

<unk> in the same period last year.

As of June 32021, the company had cash cash equivalents and short term investments of RMB $149.6 million compared to RMB $174.1 million as of March 31, 2021. The decrease was mainly attributable to the share repurchase as well as cash used in operating activities.

Lastly, let me provide some updates on our share repurchase program.

May six 2020, the company announced that its board of directors authorized a share repurchase program under which the company may repurchase up to a total of $1 million of Americans.

American depository shares representing 25 class a ordinary shares.

As of June 32021, the company had repurchased approximately 786000 adss for approximately RMB $17.5 million under this program.

This concludes our prepared remarks today, we will now open the call for questions. Operator. Please go ahead.

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

If you wish to ask a question. Please press star one on your telephone and like for your name to be announced if you wish you can see your request. Please press the pound or hashed E.

For the benefit of all participants in today's call. If you wish to ask a question to management in Chinese.

Immediately repeat your question in English.

Once again Thats star one for questions.

Our first question comes from the line of Vincent Yu from Needham <unk> Company. Please go ahead.

Thanks management for taking my question a housekeeping question. The first question is can management help us understand the impact on our client base as a result of Vinci regulatory kept down.

Sectors, such as education platforms.

My question is in terms of our video content initiative do we see any potential impact also from regulation.

Video.

Is that post that could impact our ability to monetize these contents.

And third question is.

Can management help us breakdown of our top three.

Customers in terms of their respective industries.

Okay.

Yeah.

Paul himself.

Hum.

Yes.

Okay.

Uh huh.

Yeah.

Generally we don't see anything unusual there.

Earnings in the range.

Profit went down here.

I'm not going to it's not unusual.

I don't want to convert 100 IPO.

Ion tissue sealant.

Designation you organize Moody's usually we don't break out all of them could become more challenging when you're talking to.

So Daniel I don't even go there when you count going to be looking over in Europe, and we tell them I'm not sure.

You don't want a general counsel, Josh that prevented you for waiting.

That's helpful.

Or kind of on their own to Kashi franchisee in China.

And Shanghai.

Sure. So we're not ready on that so you're.

Sometimes I don't know if representatives of Marion County.

What is are there too.

With that guidance.

With Apple 10 hour.

In fact, our portfolio initiatives because there is great potential in this market short form video enable users to acquire massive amounts of information efficiently a proud scenario timely manner.

Those seats and more popular, especially among young people short form video authentication desalination, China will empower us to extend our user base with three new high quality content and proper use of mental capabilities.

<unk> on short form video are mainly focused on <unk> content theme well, our short form video content folks on our finance business and personal growth in line with national guidance.

Hi, Neil for regulation on short form videos have no impact on us we believe our content will always be.

<unk> supported by the country is three <unk>.

Vision Ultra for video a rollout in the future.

Oh no.

And Josh I'll call it half of that.

At Orlando, Oklahoma, and I hope, we're closer to enhance your grill.

Yeah sure Hi, Laura.

How can we use some of it is another so anytime the Zimbabwean golf will then the attention of alcohol abuse dependencies.

Tendencies thoughtful of where else you're getting a higher rate of all I was wondering if you can maybe TJ telephones operational more than higher.

In the second quarter, our top three customer for our advertising business, we're in the e-commerce and Internet industry.

Alibaba bypass and vessel revenue generated from each of them. We then was that a significant proportion of the total advertising revenue and actually revenue of salaries from our top customer only accounting for.

37% of total AD revenue in addition to the Internet.

Industrial is our customer also includes top tier companies in industries, such as artificial intelligence.

Entertainment and media automobiles, and transportation and construction unless self industry.

Can you repeat your first question.

Yeah.

Okay.

First question is about the.

In terms of the impacts from the regulation.

Education platforms.

Oh, okay.

Yes.

Okay.

Yeah, Hi.

Hi, Andre volume humans to Nashville.

Sir your line is open.

The volatile over time, because you cannot.

Without adding and drop when they were kind of a 110 to try and do that.

Nuclear or Colombia or military.

100, and energy infrastructure here.

Cohorts.

There is kind of at a loss.

I'll now Korea.

Okay.

So about the education industry impact on our advertising business revenue from the education industry plays out it's only a small proportion of our total advertising revenue of agitation industry contribution to advertising revenue was <unk> seven.

7% in the second quarter of 2021 and four.

2020 quarter three was one 5%. So therefore, the flagship for issuance in the education industry and how about limited influence on our overall advertising revenue.

Yes.

Okay. Thank you.

Thank you as a reminder, ladies and gentlemen, if you wish you ask a question. Please press star one on your telephone keypad.

Our next question comes from the line, that's a shower gel fancy ICC. Please go ahead.

Sean Your line is open. Please go ahead.

Sean Please on mute and go ahead.

Yeah.

Alright, we end up getting response.

Next question from pay pay Chu from industrial Securities. Please go ahead.

They are going to impeach amount once yokohama.

Jim.

And would.

Would you have to move into Joshua, Georgia, Oklahoma, and Louisiana drilling she was launched in June.

Can you talk about your view on my future.

To your point in Chicago, a couple done hundred changes brought about by two long closed the year with Rakuten guidance and jobs.

Well many of them among them the ocean monarch.

Clinton Kyushu larger credenza actually mutual Cooperstown.

In terms of the ships.

I will translate my question so could.

Could you share some of your main strategies or specific approach.

She improve your online advertising business and how long should we expect <unk> to return to the pre COVID-19 levels.

Yes.

Hello.

So there's an element of cargoes law, but I'm not disappointed.

Most of all its the one I'm not so sure as you call.

Yeah.

I'm really not in Europe.

COVID-19 on the kind of staggering.

Awesome.

Could it not be hall.

Now let me introduce you.

And then what you know God I can't remember the Aimco a whole bunch of your home.

But that is for sure or does it.

I should introduce you.

Nashville continues to come home.

That is what I'm wondering.

Okay.

To conclude the ratio that cohort.

He was actually being sold in October.

Hello, and thank you Didnt put enhancing calls you know mcdonalds Horizontals in Africa on Bushnell.

Sponsors with all that.

Especially not in guidance.

The motivity dormant and obviously that might align their challenges.

In addition, the Highlander, well Chinese or particular.

I'm kind of toggle in Baja.

Could you tell me because future wave Honourable woman, Chris work at home.

Because I'm not feature films.

Because anytime you're home and shelter in place over the counter analgesics.

How long do you think industry view.

Actually the up four of our advertising has increased this quarter compared with the same period last year.

So the volume half year remain improve upward to two ways.

Due to our content Influencer and brand premium.

Our publication prices rising steadily every year.

Conducted two improvements of the Apple and therefore, we will continue to improve the quality of content to attract more customers from various industries SEC.

The rise of short video has greatly increased the growth potential of our Apple for example, our recent technology enterprise customer.

<unk> short video advertising and Cogs.

Q2, fascinating AMB and last quarter, we only have a.

A advertisements that one.

<unk> fell short form short form video content has natural advantages that is customer unit class.

Match or even exceed the.

The commercial value of our retail facial comp short time frame.

In the future we will continue to use various mode to help customers operate and you know based on marketing in that case the customer.

Paul will rise accordingly, with the brand influence and marketing policies are returned to the pre IPO.

Our next situations even higher levels.

Summit.

Yeah.

Alright. Thank you once again, ladies and gentlemen to ask a question. Please press star one on your telephone.

Question comes from Sean gel Fancy ICC. Please go ahead.

Got it okay, I'll pay $2, even though.

Yes.

How soon and gosh I thought you said that one Oh, Japan us out when they go and he should why women who came from London.

Thank you.

You choose your technology IPO.

Chosen a turnkey yeah cool Ghansham, Chile doing reach if we came to know quantify.

I will translate myself quickly what is the potential monetization space for the new products such as corporate service.

You put out and what our strategies are base for that.

And this year and in the long term. Thank you.

Uh huh.

So the answer to that.

Yes, we haven't disclosed.

William do you want to share some.

These escalation with Ya man, and what kind of Joe Mitchell with National down how else within that Alphacat also overhanging Hogan partnership.

That I appreciate it.

Ross with empower now congratulations and their channel. So that's what I'm going to want to change it out understanding that you were doing that now.

Well, then TV channels are down over.

There's been no fundamental strategic mistake, almost similar to the natural resources and time is valuable to them.

Thank you.

So we are not so sure we're not England don't forget it was always going to be.

But we believe at home.

Bundle.

Unbundle cohorts on the central Oklahoma.

Sure Tom.

Because you don't have any debt.

What do you mean higher though.

Sure.

She is E&P buys all of them.

Your guidance.

We didn't have much at all on that until you have all gone given liquidity once you're done.

Oh sure without all of them for you and for tissue a bottleneck for them.

Well I think if you want to join our call.

We don't think we can even apologize Georges you somewhat answered the next year.

Enhanced visual round as long as you don't have and also the nature of the offence.

Is that a congress for all of US all of you for Shanghai.

Oh sure.

And in Android.

Jason Mcdonell woman and she knows how to argue.

People don't have Europe, shrunk noshir, because your tone to the lithology of Europe.

The challenge of audio.

Sure.

Hum.

Now people appreciate it.

Because of our the combat sugar and the higher the Telemundo xylem I'll refer to these items equal.

Okay.

How do you see an ego.

I'm talking about children.

As usual I'll call. It home that was more kind of how high shelf on behalf of the Hanmi.

Hum.

But looking towards 2020, we launched our undergraduates.

First.

Handset SaaS platform in China at all.

The reveal Porto has showcase.

For <unk> applications covering software.

13 industries 20 categories.

Additionally, we have always it's always a thrill.

User comments and what others are industry experts to join the platform.

King the industry, most comprehensive external as enterprise decision, making platform. We plan to start with three months of graduation model. The first one <unk> commission fees from lead generation, which will account for the most significant part of the or all of revenue we believe our enterprise.

Psoriasis reveal platform will provide our traffic, but funnel that helps.

On a per customer more possibly in Europe.

We expect the cost of customer acquisition to decrease by at least 30%. This isn't on a similar to auto home of the automobile industry and so out of the medical liability and a threat at the same time is to provide marketing management services, such as how can manage enterprise.

Account.

Ranking list.

Analytical workforce.

Management's close our video portal and the third deals the membership service since I'm, calling.

Is that a cell site offers regularly such reports.

This little hubs, a sixth membership fee will be charged.

And for this may we already have our try on the commercialization. So we have a SaaS company. That's got some lease and we have a really high conversion rates studies, 20%. So this is this.

This is a really good result for us.

Better than the competitors in the same industry and also we acquire the customer.

It's much more cheaper than the others.

So we reasonably will yield rate reform refined products system or have some try some.

The better way of the Oklahoma commercialization path.

So the real the true commercialization has is suddenly there'll be launched 2022.

Alright. Thank you as a reminder, ladies and gentlemen, who asks a question. Please press star one on your telephone keypad.

Our next question comes from Jay Dong from Th capital. Please go ahead.

Additional to that.

Sequentially off the shelf on the legal front of GFR.

Huge ambition.

Thank you Michelle.

Congratulations on the strong with you offline.

One glass half full.

And hopefully they'll listen football Capex, when Pat offline months. Thank you.

Ah represents a natural kind of ISO seven and children's controllable unless again onto hydro was there something unusual.

When you calculate the capital on the agenda.

Tanya we over here.

Provide a lot and I could never do them with.

Apple I'm going to use at home and.

And the way to go.

Income from original appraisal.

First of all actually is what do you see them.

Lindsay will be otherwise.

Pneumonia Angela.

It is not.

No.

Okay.

So sandoz out in Seattle.

You can see that here in.

And these are not only this year as well.

To go to when you can actually use on tissue and pushes yourself film as usual cash on a kind.

Camelot hang in 2010.

Jim.

Sure sure.

Sure Jonathan.

Sure Danny.

Because Amazon all she's out into Q4, the income Marshall, none of whom independent.

As usual.

Because I'm not sure what kind of inflation was obviously comfortable with the country's existing home. How can you can see plasma routine call right.

Thank you.

Obviously in the second half of the year.

So really we will have a lot of the offline events.

But we have already signed some cooperation agreements for offline Eaton and the epidemic will have a certain impact on the offer.

Our client activities.

National policies and epidemic prevention and control as the primary consideration.

Our partner for <unk>.

For the life and so the impact of recent I've done it will have.

Faith impact on that.

The third quarter and some.

Our activities may be delayed to the fourth quarter, but it's not the hassle. So however from the perspective of six months or the.

The next half year, the impact will not be that much greater.

Also the epidemic will also have some impact on real economics entities to us as an expense so probably the online advertising advertising revenue will fluctuate a little bit.

Yeah.

Susan.

Thank you Sir.

For the questions now I'll like to turn the call back to the company for closing remarks.

Yeah.

Thank you once again for joining US today. If you have further questions. Please feel free to call <unk> Investor relations through the.

Contact information provided on our website.

This concludes this conference call you may disconnect. Your line. Thank you.

Okay.

Yes.

[music].

In Europe.

[music].

Okay.

[music].

Hello, Ladies and gentlemen, thank you for standing by for 30.6K, Our Holdings, Inc. Second 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 call is being recorded.

I would now like to turn the call over to your house Young Li IR manager of the company. Please go ahead yeah.

Thank you very much Hello, everyone and welcome to the Q said PR Holdings' second quarter 'twenty, you're talking about earnings conference call. The company's financial and operational results were released earlier today and how he made available online you can also view the earnings press release by visiting the IR section of our website at IR <unk> com.

But he's depends on today's call will include our co chairman and CEO with Algonquin and otherwise.

Financing and kept some royalties mcclean Lake.

Therefore, we will start our call by providing an overview of the company and performance highlights of the quarter in Chinese followed by an English translation is the way. We would then provide the company's financial results before opening the call for questions.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Probably securities legislation Reform Act up 1995 forward looking statements involve inherent risks and uncertainties as such the company's results may be materially different from the views expressed.

For information regarding these and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U S. Suck the company does not assume any obligation to update any forward looking statements, except as required under applicable law.

These notes that 60.6K, our earnings press release and this conference call includes discussion of unaudited GAAP financial measures as well as well as unaudited non-GAAP financial measures.

<unk> press release contains a reconciliation of the August as non-GAAP measures to the Oh disease that measure.

Please note that all amounts are in RMB.

I'll now turn the call watch our co chairman and CEO Mr talk on for Paul. Please go ahead.

Yeah, I don't know.

I just thought I'd ask for now.

Got it.

Thank you Hello, everyone and thank you for participating in our 2020 one as they come up with a result conference call.

And he argued all entries nailed down before you can tell me if I can.

UCF always angel kind of question. He is asking you to you all before if I wish all of you sounds like he's young leap here, what kind of tissues. You didn't did go well then they don't.

We are keeping a lot of talk on crude a quota or Johan I think I'm on total agent count.

Pencil.

Thank you Congress would hasn't broken out here.

Chinese like usual.

As you kind of looking at income.

What are your kind of timing issues, a heart wrenching with all those all important June but you're going to have a cohort.

Got you.

In the second quarter of 2021, we continue to enhance common collagen influence while strategically focusing on enterprise services is our growth driver. This adverse broadens our new economy book is calling it offerings and value added services. So are there developing our core computer and the speed of hiding business innovation, we have planned it robots.

Progress in content arrangements with net worth inside presentation formats to meet the needs of valid user groups. While also exploring possibilities for innovative services well over our progress in products and technologies is paving the way for us Jim how would the growth of new economics participants as well as the digitalization of traditional industries.

But you can have a compelling value proposition in solar customers users and investors and gives me a lot of fresh opportunities and challenges.

Argued all over North Carolina.

Cingal Kim on the agenda right now.

So when we come out on the tissue trickled in education.

And so on around the company and you walk into a product.

And it looks down the Covid himself.

90000 people within our control.

So have you heard it.

So he's a rental hug them cool Roth capital.

Thompson.

Well, what they want for their users traffic volume reached a new high of average monthly page views of $846.3 million up 70, 878% year over year, the second quarter of 2020, one hour 710th consecutive quarter of TV growth reaffirming our kind of strong U S Europe revenue.

<unk> and our growing brand awareness the rising popularity general recognition of cities PR content and platforms largely stems from our continuing innovation inflexible contents were less omnichannel content distribution and all were in January in our Horizon, Let me walk you through our progress and our strategy.

Each of these areas.

The only thing he says he forgot to you guys that have either come out here.

Just if you can say.

Congrats on a tornado in.

Thanks, you if you're if you're walking here Douglas harder as you go downhill fringe out first.

First with respect to comment strategy, we presented content in various formats.

What range of these new sectors to address the full spectrum of user demand our powerful proprietary platform delivers comprehensive reports <unk> SEC across both professional and user generated content corp's UGC and UGC. These into traditional taxi <unk> format, we have expanded our offerings to all of you.

Short video and the left running accidental coring that wants to use it for.

Europe feedback regarding each of these information dissemination and channels has been quite positive.

Thanks, Laura.

All right.

But I'll, let you know if entrepreneur magazine's alcohol, San Luca presented in foundry and who they.

And you can see here in the whole U K totaling hunting southbound volume.

What do you see that you're getting now.

Sure sure.

You put it into a nominal amount of a fruitful for both of them and frankly doing a board LTV the Hainan depending on what you're Gonna do you guys are talking about them yet because.

So kind of a housekeeping job well done.

Okay.

Oh, Yeah, we're continuing in that country as a whole on a neutral from brokers in the Mohawk Borgata consumed Peggy can find himself onto the needle hundreds or take also going down.

We continue to make progress is still strategically on IMO weighted content formats. During the second quarter, but I believe the number of articles published our primary wechat account with readership of over 100000 school to 180, a new record.

Other second quarter unusual 18th include our audio program PR Walkman, which provides the user with the latest business high life insurance segments that just take.

Just take a few minutes to digest.

I'll always sharepoint radio covering various topics, including Pam business current public affairs economics of finance and personnel growth also gained popularity among various groups of consumers and either.

In term of content Gi or otherwise that wasn't.

He says our statistics here only accounts. We also have a full scale of contents matrix that covers different topics. For example, our key outgrow column targets professional groups in depth industrial inkjet and <unk> Tvs, the younger audience and call. It lighter business and more complex topic is rapidly, becoming a popular and gaining growth momentum among younger general.

Sure.

Yeah right now, it's an opt in heritage at all.

Average Liberal Arts hotel.

And I totally convinced today that help whenever when you no longer haul well then it was actually an agreed upon reviewed hopeful that you didn't have to be done quite soldier holds a home for bookings to be half of the Hawthorne put out can play on how to treat animals, indeed, bringing him hydrogen DS you won't put away.

That's just in case, you're running on Apple juice. So that's exactly what you need to go out in April.

Second we continue to executive our omni channel distribution strategy to become a top calling in for wider in the finance economics vertical on Wechat. We bought told you on audio comprehensive traffic platforms 66. There has also been building business collaborations with top tier short video platforms, such as <unk> really the only partial.

Cheerful shelf onshore and which channels leveraging our programs and short form video content. This collaboration will enable us to reach more diversify into either user communities and provide them with a variety of season insights and unallocated content or even intuitive to promote shortly do elapsed training content are crucial for us to see that worked.

By OSB end user base to four that's happened to DTC service offerings.

So go ahead without going into guidance.

The narrow body at an Empire.

I heard you talking about again, how do you handle them that aren't using their own Daniela more digital offering.

It is the short you talk about what Pete NFL.

I just want you to walk away from France as usual.

Sure yourself and <unk> digital controllers.

And of course, even for Covid and high.

Cobalt arginine.

Got it.

Sure.

So Ian brand up you might have with them.

Window shopping with e-commerce, she's going to schedule for those not on sale tracking going into holiday.

Yeah.

<unk> agenda.

So I don't think all certain types of born out in Hawaii.

And arguing that don't yet.

Your line haul opinion downtime than normal.

Bill totally usually around Covid central.

The coupon timeframe you want to me they don't call me here and I don't want to see them called vertical while talking to their lives at risk.

Ian Convertibles, indeed to what are you trying to knock them down.

Now I'd like to talk more specifically about our short form video content. It has been exactly a year since we embarked on our short form video initiative and we business is rapidly growing in popularity across diverse demographics. We are very pleased to see that we have attracted more than 4 million followers into OEM.

And more than 800000.

<unk> follow or something we'd be really other clubs platform based on multiple criteria, including follower base.

Content depth, whereas your performance in shop tracking 66, Clearone has named <unk> as one of the top tier of short form video business verticals across all major social media platforms.

Notable success in the second quarter with our blockbuster video the meaning behind change yourself, which we published.

We just released so in Philadelphia and several other platforms. This corrupt their content attract a record cycle viewership of over 30 million total views of your payment rates for three consecutive days. We are also excited to share that our recent video clips on interpretation of the Olympics games the company set new highs.

We're seeing more than 100 million total views and one to four 2 million likes and IV 200, intelligent new followers, but neither of the August 2021, 66. They are short from video or a variety of attributes annual targets of getting 2 million new followers.

Tony number further validate that increasingly route individual user community is enjoying and are consuming our content reach in China dropped the juicy business marketing spend than in our classroom looking forward. We believe us we believe our short video content initiated will continue to attract a wide.

The range of user communities and boost our commercialization capabilities.

These are just some view on China, So there's actually two questions.

Okay.

Andrew Oldman taste with our arms around 100 and quantify them.

Joe.

While many of our theaters.

And as you've done in the yard you should answer that.

We continue to see a lot more towards the path to calculate income.

Thank you Jonathan.

Sorry, it's all digital.

Regarding navi four clinical is indeed, the only artist Jonathan Hocking Unusuals.

We continue upgrading our product offerings for our public equity markets. Our Signary marquee products are a natural extension of our <unk> experience and expertise for lean start up companies over the past 10 years and are quickly gaining traction for instance in July we joined forces with industrial securities to host and.

Investor Forum covering topics around both the profit in secondary markets. We also collaborated with the ICC to cope with a 50.6K, a capsule pie a new program focusing on the retail investor education, which greatly enhance our influence and recognition in both institutional and individual investors vehicles.

There were things like our customer base and laid a solid foundation for customer expansion in the secondary market.

He says.

I shouldn't say Interdealer Onondaga.

LNG answered on hungry man.

If you prefer osha getting cookies from water you're going to meet your guidance bundle you cannot go down below that of the vehicle, especially you guys have any centrifugal packages lay them off because she's talking about quota share Hello, Tien Tsin Goldman do you feel you can close this.

Do I know.

Certain items on both overwhelms that choose how important kidney toxicology until sometime in calendar <unk>.

Okay.

No.

First we celebrated the Grand opening of our New York headquarters and change and a move to capitalize on the opportunities in the greater Bay area. The Greater Bay area is drawing on pension as a SaaS evolving innovation and technology hubs that offers exciting opportunities to start up from around the world we noticed that.

Most of Europe.

The flexible hard and core technology start ups have been moored in Guangdong province, the considerable number of investment institutions have setup wrenches in Shenzhen, even that industrial internet and hub for technology extremely popular and vulnerable.

Supported by both the clients and the investment community strapped easily selected for a central location changing will supervise our hometown reach we counting etcetera surrounding start up and it wasn't the institution itself Chinas Greater Bay area. The establishment of our 60.6K ourselves China headquarters will enable us to better meet their needs.

Of local customers and the response again more efficiently further contributing to our commercialization capabilities.

So what I mean.

And of course that is what is happening.

So would you argue to turn it over on their own based on both a total figure due to our people and welcome welcome Brian Sandoval to him about our needle pusher on the horizon.

And that's really the pattern figure about like an Apple <unk>.

So again in.

Totals africom about kind of where it is.

Through June courtyard to adults.

And that's been a lease we are actively building 60 takes care of international presence. We are excited to wait for the Bloomberg terminal began including <unk> Care's article in his new states during the second quarter, making our latest coverage available to global leaders at the same time, our OSB business is making solid progress and gradually become profitable.

We have seen a significant increase in revenue during 2021, and our presence in Japan and Singapore has continued.

We are pleased that 66, Paris brand influence is gaining traction.

Traction worked well.

We got after in guidance.

Awesome.

So the charter all of them is that they don't have they come up with your view that.

You guys talked here.

Have you pencil when they're clicking on you will see that.

The article pseudo neutralization.

Thank you our formidable higher what can be done.

Total costs were down for the Cogent Dunja Shazam.

Uh huh.

Both the number of advertising customers and average revenue per advertising customer.

We'll then take a look as you go into humans.

Sure <unk>.

So without going to war.

Turning to capital.

I should have a good view into that.

Total views you got you.

I don't know for Keytruda alcohol.

Charlie Coker overdue, because youre talking to influence future trying.

Turning to infusion for Qunar doesn't give or take of our menu.

Thank you for hanging Joe Morford, P&G that Youll target.

We continue to harness our capability and video content creation to provide customized and innovative shrimp video marketing solutions for traditional enterprises, improving gear brand image and operating their marketing take the automobile industry. For example, Fox wagon, China joint accounts with 66 here and launch our short video tab.

What will the future Carlos likes to describe future automobile from them.

For a brand new protective.

This marketing campaign helped looks like it's definitely creates more potential customers. It was also important branding and publicity platforms right into positioning yourself from a traditional carmaker to a mobility service provider for their validation of our efforts to broaden and surpass the boundaries of conventional marxian through seamless content integration.

But is there anything on the short man golf or some <unk> or tenofovir.

One cohort zafar androgen withdrawal of actual charge offs or.

Or inbound where AMETEK <unk> convenience industry.

People put up on our two news.

Central Bank, along with Europe.

With Antelope Carolina, Georgia, you've got older I'm going to use it in for you signed up with us or not.

Also I should remind me talking about Ireland converted alcohol cgmp revenue.

Sure probably there is also enabling us to develop new marketing solutions and penetrate more into the sea and brands and advertising clients. For example, we helped <unk> shell promote or are you seeing your product mix with the short form video that was well received by younger generations and Joe took this opportunity to book away from those barrels out of Europe.

Marketing and what's very exciting to slightly is publicity cooperation with 66, Kayla, we believe thats my creatively reshaping marketing programs for the future. We can empower more brands with effective <unk> solution.

Priorities around permanent home in Italy in this regard trying to hollander Alibaba your tone.

Sure Tom.

With that I'll turn it over cause yardage number two dosage algerians issue transparency some future designs.

Our secondary market products has also started initial commercialization. This quarter, we have entered into cooperation with Alibaba trip Com group commercial Helo, and Joe who will provide in depth analysis from <unk> 66 per unit perspective, showing takes a holistic corroborate the image for our customers.

Yeah that was there anything else in guns out of next year affording you the inflation Linda.

Now you've got me, though in that detail.

Traditional oxygen or whether it's water.

140, and use their cargo deteriorate to loosen.

Got it.

Next I'd like to share with you some updates in the enterprise service business space supported by our high quality content brand influence as well as expansion of the ambition of what adults with transaction volume for our enterprise value added services grew by 66% in the second quarter year over year.

Although we don't have the privilege.

With regard to Dol rule.

The infinera.

I don't know that hedging because through time on later on when you're dying of Hong Kong without anyhow I don't know.

So is that correct.

For example, since operating them.

First we continue to explore various immuno application scenarios and distribution channels for our financial content. For example on the audio content, we collaborated with new to broadcast our podcast program care intelligence on a new radio playlist. We also cooperate with several financial institutions, including China more chips. Thanks Sidney.

As an agent to help them operate their apps content covering a range of topics such as finance financial planning and career related issues through this new partnership we effectively expand our content distribution and commercialization opportunities.

Okay.

Colin are you here today at.

<unk> will come out as a homebuilder, but due to all of you can grow through that corridor.

<unk> and Ocado com.

Wanted to bundle of Onboarding, new blood, how to negotiate an email question here or something.

Two books.

Yes.

But again those into London.

This is due to onetime COVID-19.

So you go longer license with Apple <unk>.

We'll go to John do you want to see how those will go well.

Central to Apple doesn't provide you she has hindered she won't hold potential here, we can see them in June hydrogen when it <unk>.

And Asia organization online and offline. So amazing Forum is always very important components of our enterprise why do IV services. This quarter, we partnered with Google to create will go 66, <unk> Dot Com website hopping, Google host multiple online forum on gaming brand marketing and brand transformation of cross border E Com.

Morris the dream, but also demonstrate the deep bonds between Google and a 66 kiara, allowing each company's users to better interact with each other and providing a trendy approach for both companies to attract new users and increase user loyalty.

Global online activities broke geographical barriers and surpassed time differences meeting participants access leading electric.

<unk> experienced and in fact at anytime from anywhere.

Okay.

Yeah.

And these are rural presented here.

If I'm, making all of it and there's a hurdle.

UK market is one of our youth versus.

We are fortunate that alternative.

Net income for you and hope to Northern Reagan County schools in total contrary opportunities.

On the offline went wrong the whole coffee unknown CBA of tomorrow.

Leading real estate enterprises to building abortion, OE and imagine imaginative world events showcased our capabilities to interact with his user in creative interesting ways and further strengthened our brand image among them.

Audience from younger generations to middle age groups as well as other user demographics.

Perfect.

With us.

I'll turn it over to you Hot in Europe, which will turn it over to you put out here is wonderful.

Hum.

If we go down with Rhonda Gigamon Caroline we continued our Charlotte.

Just hoping you have even more sure.

Peter entities alcohol.

Order to bundles I wanted you to go to India.

Kind of audience.

Hold on Sandoz, certainly hurts you don't for G box.

She has both horses as he raised on our EBITDA.

It doesn't have a lot of that.

According to the put on them, we don't show a kind of a patchy for the industry.

Moreover, the continued progress of our enterprise value added services has laid a solid foundation for statistics cares regional expansion, we have been working proactively to expand our cooperation with local governments to municipalities.

When they see policies and regional business during the second quarter, we opened business branches into into new provinces, Hunan Guizhou, bringing our total regional offices to tell during all 66 carats per influenced our local business presence, we help enterprises and governments.

Relationships connecting both parties needs and solutions in June.

All of these points in technology innovation comprehensive for the government of <unk> district in terms of <unk>.

You want a trusted colleague from more than 100, leading media outlets, including CCTV and greatly improve the stability of the teams right districts and the way to expand and technology sectors as well as <unk> six care capabilities in the enterprise and government service area.

Patrick.

Patrick I'll turn it over to the harder Cyanohydrin, you kind of look at your house Auryxia for its entire countries.

You don't have put us in eastern Europe contracted you don't call, Steve artificial should our CFO.

They're trying to drill this year he turned up to now on the Digitization of the greenhouses reconversion, yes, I've been in touch with even higher.

I'm curious if you can get on the hurdle.

Jonathan.

Year to year based on kind of unit growth higher.

I cannot see at all.

I'm sure you'll have a little chunky.

When we look at that time.

Send it over to you all soon.

I don't know.

We also recently started commercialization of our 66th tier antidepressant accounts service or self service products 66 care Enterprise account is an efficient introductory window for an enterprise to increase brand awareness exhibit products share his business progress with a wider audience and appear to economy SEC.

<unk> of 66, Cara as far with generations of their entry printer and enterprises. We are now that reaching our brand influence debuted a platform a wider range of companies can exhibit fierce field services and accomplishments in the new company <unk>, we hope to empower more high quality enter process and help them gain market with <unk>.

Nation and for our customers, we were very pleased to see the statistics here enterprises.

Beginning to generate revenue in August and we believe that these all work went into this new service has a promising future.

Okay.

Thanks.

And that together with <unk> products.

Although China wearing off.

I'm going to go from 100 to Ya.

Yeah.

But let me kind of answer that you're talking to here in Tulsa, Oklahoma.

And how much future into when we're talking to each of you who were hurting the Peter anytime you Randall John Humphrey Archie.

Jude.

And what I can do to you.

Nokia Shanghai for the Washington vehicle customers resume.

Now I'd like to particularly introduce our progress in the enterprise service revenue business in recent years. The government has been activity actively advocating for the integration of the economy and internet as well as digital transformation in various industries at the same time investments community is leading these a slowdown in the SEC.

End markets and declining marginal return of customer execution. Therefore, we believe the industrial Internet economy. These enterprises are always our core Wilson answering huge development opportunities as new economy enterprises, and traditionally profit half inch <unk> for digital <unk> and digital transformation respectively.

Uh huh.

The answer is yes.

Individual kind of what you would have given that she wanted Antigua silver I can let Steve we're just having higher revenue.

And this year for sure.

An example of how Nancy will go somewhat postponed you take all your guidance.

The connectivity loss comparison based on Florida.

You showed results from a cohort cohort of Europe.

Fortunately for what you want your units are using Sidoti <unk> co.

And final cohort.

Total advertising towards renewables.

You can say that there's a local facilities undrawn credit impaired people.

Asia Pac growth hormone dividends, one you pointed out looking to with this background in October 2000, 2060, 6K, our launch for Enterprise service revenue Port halls. The first comprehensive enterprise so with procedure lens, the CPC them, making platform in China is a one stop platform solution.

Amy to facilitate service providers to acquire customers and demand side to making a.

Precision lens decision the platform delivers information and margin from the three new Europe service interaction and data on service layer, we provide customer with one L. One consolidation self helping learning tools and such a community functions on the interaction layer, we help customers search for and future informing.

<unk> in multiple dimensions.

Can hold comparison.

Have you seen them, making report.

At <unk>, we provide customer with industry data and category information process features we will name reviews and commentary rates as well as successful case studies and supplier climate information et cetera.

Thanks Sue.

Santiago, Chile liability.

Let's see if woman to her.

What are your shareholders like Badger.

Our store in Dallas communities year for Nucor.

They're knocking it out for you for that can work on Europe.

People wondering what's actually he's only one quarter in Hungary.

I don't know if we didn't do sure exactly one cylinder energy routinize people hanging on a little bit underground revenue.

And then there's an interview with him or her ratio with other companies.

Turning it over I'm wondering what kind of a higher <unk>.

Yes, I know, it's a very more the pure R&D.

Huntington's program, Belgium OLED.

Over the past 10 years <unk> has accumulated in depth expertise and unique advantages in providing enterprise services for example, supporting Vectra when content capabilities. We have built a database of over 800000 economy enterprises and accumulating numerous top export and key opinion leaders kols.

We can also help users gain access to relevant industry associations resources and enhance your understanding of the industry statistics peer enterprise service revenue portal is the first domestic enterprise storage platform, providing real NIM comments and is widely recognized as a fashion with the entrance of the <unk> markets our professional graph.

<unk> software is Walmart.

Than that of our peers.

Our Peter providing similar services or diesel classification of the staffing industry is thought into our main categories and subcategories, which has become the industry benchmark and standouts.

Tom do you guys own royalty program has kind of hurt you. If we didn't have all these installations.

As usual.

Regarding the Covid.

Did you actually do more tier four was there anything in there.

We sure talk about sustainability of revenue for sure.

If you have not yet towards Europe, while materially and we're converting drag within health second.

With how we're supposed to go higher than that and actually when you bundle Giovanni Yokohama Pandora premium.

When we did regenerative represents the high end of that easier to use.

CFO Sascha <unk> chartered for Western Europe.

Oh and bundle over the most applicable to onshore income forecast any orders that you can share to.

You didn't have any problems at all.

We're not seeing that hurdle.

Part of this year for those two things are Angela here.

She is a tremendous harder you called out on the Archer.

Don how many that we're gonna be countenanced.

Zero overtime.

You talked about most of those unusual you wouldn't use it during high inflation doesn't argue anyway.

So the schedule to make it off would've come back at you.

That's the first enterprise service revenue platform in China, <unk> 66 per enterprise service revenue all types become the most comprehensive and.

<unk> enterprise to hear I'm, making.

By the end of the second quarter. So we view portal had showcased a workforce enterprise service applications covering software across 15 industries and Hendrik categories. Meanwhile, we have received thousands of real user comments and black dozens of industry experts to join the platform offer your opinion.

To help the demand side to make better decisions, while we're building our own in depth understanding of industry. We are able to flooring has our enterprise service with switch content support recently, we start initial commercialization of the revenue for those delays in may by introducing products in a more.

Expressive and logical way and improving user interaction.

Hopefully help of SaaS revenue for wider obtained more still fleece business happen.

Estimated cohort kevorkian rates as high as 20%, while the cost of conversion was greatly reduced.

<unk> that as we continuously refine our product and formally.

Scale commercialization, we believe our enterprise service revenue portal will become a new driver of the company's future growth.

Tremendous value on our way to expand the voluntary of medium and tap into more enterprise. So is this.

So you don't have forgotten exactly here for that as you do that.

What is most of that is when you grew hot totals.

Total there'll be some downtime on rebar.

Guidance.

Now turning out give or the 400 and easier to sell income on hydro.

Duke or something of that though with androgens huge opportunity.

Peter I know for sure that we try to if you will and so you said all ranbaxy for sure because I know, it's weird career, John do you want me to talk I mean, the vendors into hydrogen.

Southern Europe.

Prices in Europe.

Jim do you want to put our visit she's only a whole different animal protein if you wouldn't mind towards Europe.

Luckily turning to our subscription service in the second quarter, we revamped our subscription service model a witness a revenue growth of 124% year over year. Our subscription membership services are available through both online and offline channels online subscription will focus on the tier column within our <unk>.

Six care App for knowledge products ordered for your training program, helping college students and new recruits to improve your professional skills for offline subscription service. We also membership programs such as entry free Northstar and Speedway star classes.

Bringing opportunities for practitioners and various views to engage in deep communication and interaction with industry leaders and experts face to face in the second half of this year, we will continue to expand the breadth and depth of our subscription offerings for our users to better cited slightly your knees and Ford to improve user stickiness.

Yeah.

Due to turnover.

Europe.

So you're saying that they want to know.

So just what are some of them now.

Thank you, our ddos and other kind of in that how are you.

Because of our torture Belgian travel things food commodity English or the key over that didn't hurdle.

So now youll.

Yeah for sure and a lot of times, where you can forget them John.

We'll be tracking this initiative.

Hello incurred into higher acuity issue, Jonathan Andrew Qatar LNG.

In summary in the second quarter of 2021, 56 care continue to enhance his influence on the economy centric content offerings.

Our GAAP.

The erosion and investment in our enterprise service revenue business. The company has been LIBOR stellar initial results by innovating and exploring the commercialization opportunities of our new business initiatives. Looking ahead, we believe that 66 Terra is well.

Poised to capitalize on that revenue lack of real.

Economy, industrial Internet and hot and core technology to create brand new development opportunities.

Henry Washington into a home that have long experienced comparable in areas around your household humana dry dockings with that I will now turn the call over to our VP of finance capital markets, Ms Wei, who will discuss our key financial results. Please go ahead. Thank.

Revenue increased by 65, 1% this quarter compared to the same period of last year, demonstrating sustained user engagement and customer interest in our premium content and service offerings.

Also thanks to our continued efforts to provide customized and innovative services revenue from our enterprise value added services more than doubled sequentially and its grand transaction value increased by 35, 9% year over year innovation, all commitments to maintaining efficient operation with our increased focus on higher margin.

This is paying off with our gross margin expanding to 57, 4% from 29% in same period of last year and net loss narrowed by 56, 8% year over year.

Looking ahead, we believe we are well positioned to continue this growth trajectory, giving new economy package, but more effectively and expand our monetization channels to seize the vast opportunities ahead of us.

Now I'd like to walk you through more details on our second quarter 2021 financial results.

Advertising services revenue increased by 65, 1% to RMB 51, 7 million in the second quarter of 2021 from RMB $31.3 million in the same period of last year. The increase was primarily attributable to the strong recovery of market demand as well as more innovative marketing solutions provided to our customers.

The number of advertising customers and the average revenue per advertising customer both achieved strong growth in the second quarter of 2021.

Enterprise value added services revenue were RMB $14.3 million in the second quarter of 2021 compared to RMB $42.6 million in the same period last year. The decrease was primarily because we continuously shifted our focus towards higher margin businesses and starting from the first quarter of 2021 with fees to act as a principal in certain.

Lower gross margin businesses and only Apple.

As an agent as a result revenues of such businesses, we'll recognize on that basis from the fourth quarter onward to increase comparability of operating results and help investors better understand our business performance and operating trends were introduced at the golf selection value as a supplemental matrix to describe our business.

Gross transaction value of enterprise value added services was RMB $57.9 million in the second quarter of 2021 increased by 45, 9% from RMB $42.6 million in the same period of last year.

Subscription services revenue has increased by 124, 1% to RMB <unk> 6 million in the second quarter of 2021 from RMB $2.7 million in same period of last year. The increase was primarily attributable to high quality subscription product, we offered to our institutional and individual subscribers.

Total revenues were RMB $72.1 million in the second quarter of 2021 compared to RMB $76.7 million in the same period last year.

Taking into consideration of the aforementioned change in revenue recognition for our enterprise value added services, which involve.

The $43.6 million violence between that revenues and gross transaction value you will actually find that we maintained all upward trend and demonstrated solid year over year growth.

Cost of revenues was RMB 37 meetings in the second quarter of 2021 compared to RMB $54.4 million in the same period last year.

The decrease was primarily due to our continuous cost control measures to improve our operational efficiency and akshay a focus towards higher margin businesses as well as the recognition of certain revenue basis, which we discussed earlier in the anthrax valued added services section.

GAAP gross profit increased by 86, 1% to RMB $41.4 million in the second quarter of 2021 from RMB $22.2 million same period.

Gross profit margin was 57, 4% in the second quarter of 2021 compared to 29% same period last year.

Operating expenses were RMB $75.3 million in the second quarter of 2021 compared to RMB $99.4 million in the same period last year.

Sales and marketing expenses were RMB $43.4 million in the second quarter of 2021 compared to RMB three 9 million in the same period last year. The decrease was primarily attributable to the decrease in marketing.

And share based compensation expenses.

<unk> expenses were RMB $29.9 million in the second quarter of 2021 compared to RMB 59.

<unk> 9 million in the same period of last year. The decrease was primarily attributable to the decrease in the allowance for credit losses and share based compensation expenses research and development expenses were RMB 12 million in the second quarter of 2021 compared to RMB nine 6 million in the same period of last year.

The increase was primarily attributable to the increase in payroll related expenses as we beefed up our research and development capabilities.

Net loss was RMB $34.3 million in the second quarter of 2021 compared to RMB $79.3 million same period last year.

Non-GAAP adjusted net loss was RMB 31 meeting in the second quarter of 2021 compared to RMB $66.7 million in the same period last year.

Net loss attributable to <unk> holdings ordinary shareholders was RMB $44.1 million in the same period.

The second quarter of 2021 compared to RMB $79, five 5 million in the same period of last year.

And diluted net loss per share were both RMB three three cents in the second quarter of 2021 compared to <unk> seven.

<unk> in the same period last year.

As of June 30 is 2021, the company had cash cash equivalents and short term investments of RMB $149.6 million compared to RMB $174.1 million as of March 31, 2021. The decrease was mainly attributable to the share repurchase as well as cash used in operating activities.

Lastly, let me provide some updates on our share repurchase program on May six 2020, the company announced that its board of directors authorized a share repurchase program under which the company may repurchase up to a total of $1 million of its American depository shares representing 25 class a ordinary shares.

As of June 32021, the company had repurchased approximately 786000.

Approximately RMB $17.5 million under this program.

This concludes our prepared remarks today, we will now open the call for questions. Operator. Please go ahead.

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

If you wish to ask a question. Please press star one on your telephone and lights for your name to be announced if you wish you cancel your request please press the pound or hash key.

For the benefit of all participants on today's call. If you wish to ask a question to management in Chinese.

Immediately repeat your question in English.

Once again Thats star one for questions.

Our first question comes from the line of Vincent Yu from Needham <unk> Company. Please go ahead.

Thanks management for taking my question has three questions. The first question is can management help us understand the impact on our client base.

That was a reentry into.

Regulatory kept down.

Sectors, such as education platforms. My second question is in terms of our video content initiatives do we see any potential impact also from regulation on our <unk>.

Video.

Post that could impact our ability to monetize these contents.

And third question is can.

Can management help us breakdown.

Our top three customers.

Customers in terms of their respective industries.

You.

Uh huh.

<unk> sort of explained let's repeat logical.

Now this figure because of the region.

So you don't know where things.

But generally we don't see other alternatives.

And the revenue profitably.

Profit of the town to urology that none of them are not going to it's not unusual.

100 <unk>.

Since your film Division.

Designation, you organize Moody's users, who don't watch out.

So you can watch all the tertiary for you I don't want to.

So Diana.

And when you're counting on Burger King Award.

And I'm not sure.

If you don't want to rush that prevented you are.

We then look at both.

So we're kind of on their own to Kashi for hygiene for China.

You Couldnt shop on recruiting duty shoe for we're not ready on that sorry.

I'm wondering if there's like a million gallon now I'm.

What is your better quality.

<unk> was higher.

With Apple.

One hour.

Oh, we embark our short form video initiated because these great potential in this market short form video enable users to acquire massive amounts of information efficiently of trial.

This scenario in a timely manner.

Boswell seats and more popular, especially among young people short form video efficient dissemination, China will empower us to extend our user base is trivial high quality content improved user mental capabilities.

Regulations on short form video are mainly focused on probably its contents team.

Our short form video content focused on finance.

And personal growth in line with National guidance.

Therefore regulations are short form videos have no impact on us we believe our content will always be.

What's your fleet supported by the country is streakers supervision onshore for video a rollout of income future.

Oh no.

And George Alcoa Hook without hunger.

Was it all in in the Oklahoma case, I'm not going to work closer to enhance the rail.

Felicia I drop off.

Could you talk to.

And what if another total bank lenders and put it on the call will then the attention of Apple orders on hand to be sure.

Tendencies thoughtful airlines, you get a higher rate.

I was wondering if you can maybe TJ telephones operational more than Ohio.

In the second quarter Award top three customer for our advertising business, we're in the e-commerce and Internet industry.

Alibaba bypass and vessel revenue generated from each of them, we didn't reflect a significant proportion of the total advertising revenue and actually revenue is generated from our top customer only accounted for.

So the 7% of total AD revenue in addition to the Internet E Commerce industry as our customer also includes top tier companies in industries, such as artificial intelligence.

The media automobiles and transportation and conception unloved.

<unk> industries.

Can you repeat your first question.

Okay. The first question.

About the.

In terms of the impacts from the regulation.

Education platforms.

Oh, okay.

Yes.

Hi.

Okay.

Uh huh.

Sure.

Volume will humans Marshall.

Sure.

The volatile World Championship.

And God only knows how are you.

The time to try and do that.

And if you are going to be necessary.

100 and in Q1.

Or should I.

There is kind of our loss.

I can read them.

Okay.

So about the application of industry impact on our advertising business revenue from the education industry presents only a small proportion of our total advertising revenue the agitation industry contribution to advertising revenue was <unk>, 7% in the second quarter of 2021 and four.

Sure.

2020 quarter to one 5%. So therefore, the flagship for issuance in the education, Australia, how about limited influence on our overall advertising revenue.

Yes.

Okay. Thank you.

Thank you as a reminder, ladies and gentlemen, if you wish you ask a question. Please press star one on your telephone keypad.

Our next question comes from the line, that's a shower gel from CIBC. Please go ahead.

Sean Your line is open. Please go ahead.

Yeah.

Sean Please on mute and go ahead.

All right. We're not getting response next question from pay pay Chu from industrial Securities. Please go ahead.

They are going to increase not wash Oklahoma.

Interest income.

The adjuvant and.

And what.

What would you have to move any blocks of Georgia, Oklahoma and Louisiana.

<unk> gone from them.

Can you talk about GTO much huge a garage Youtube Hulu Europe. When should you go a couple dozen in Hangzhou Tianjin blend that much at all.

I'll do it again with the crude and damaging job.

Among them the money on the Ocean monarch E.

As usual I'll give credenza ashwin sure Cooperstown.

Chalk Buda chips.

I will translate my question so.

Could you share some of your main strategies or specific approaches to.

You improve your accruals the online advertising business and how long should we expect to return to the pre COVID-19 levels. Thank you.

Hello.

Okay.

Most of all one of unfortunate article.

No.

I'm really not in Europe.

Now you've got the kind of exactly that's what I'm, saying.

Awesome.

Could it not be called.

Now let me introduce you called him and then when Richard I'm, not I can't remember the Haynesville a whole bunch of your home.

Sure.

I should introduce you.

Nashville continues to travel.

And I'm wondering.

So those are the elements.

To go quickly back to Utica horizontal in the country is actually being sold.

I don't want to.

So not all of them and it's actually been put under a single or Mcdonald's version of an African Bushnell.

Sponsors is all over Europe.

Actually no current guidance totally bylaw, the MAU Trinity to all municipalities and I might have on that Jon Andersen.

Well the Chinese or.

Sure.

Thank you Vanessa.

I'm kind of toggle in Baja.

I now see xiaomi, because future grape Honourable woman, Chris work at home.

Because I'm not going to film.

Anytime you hope you can answer that question.

James I don't actually know.

How would you think the industry.

Actually the up four of our advertising has increased this quarter compared with the same period last year.

So the volume half year remain improve upward to two ways.

Due to our content influence and Brent premium.

Our publication prices rising slightly every year.

Conductive to improvement of the upfront and therefore, we will continue to improve the quality of content to attract more customers from various industries SEC.

The lack of full video has greatly increased the growth potential of our Apple for example, our recent technology enterprise customer <unk>.

Our short video advertising and caused us to two 5 million RMB and last quarter, we only have.

Advertisements that.

One Neely RMB, so short form short form video content has natural advantages that is customer unit price as much or even <unk>.

The commercial value of our retail financial comp short time frame.

In the future we will continue to use various mode to help customers operate.

<unk> marketing in decades the customer.

Paul will rise accordingly, with the brand influence.

<unk> marketing policies are returned to the pre academic situations, even higher level of SME.

Alright. Thank you once again, ladies and gentlemen to ask a question. Please press star one on your telephone.

Next question comes from Sean <unk> from CIBC. Please go ahead.

Got it okay I'll pay $10.

Okay.

Oh Gosh I thought you said most of which were that one Oh, Japan us out when they go in tissue Guangzhou women, who came from London.

Yeah.

You choose your technology IPO.

Hum.

Oh cool a gunshot until I do I'm very cheap with E&P and nuclear.

I would translate myself quickly.

Is it potential monetization space for the new products, such as corporate service.

You put out.

What's our strategy update for that in this year and in the long term. Thank you.

Okay.

Yeah.

That's it.

They are not in Europe.

Adam do you want to share some words these acknowledging looking back now what kind of general manager over the initial amount out within that.

So were hanging Hogan package.

All that I appreciate that.

No no no.

That relationship and channel. So that's what I'm going to want to change their timing is really going on now.

Well then she believes it has the highest triangles or download them.

I don't know if anyone wants to do you don't just on a schedule of these home to the natural resource and time is valuable to them.

Thank you.

Great.

So I don't know dough, Shaw, who not singular and Coronado it sounds it's going to be.

But we believe at home or in a.

Bundle bundles cohorts and potentially a lower number.

Sure Jonathan.

Because you don't have any of that.

What do you mean, how many of those you know the actual horizontal.

A&P by several revenue for your time.

Second we have no energy at all on anything you talk on given liquidity.

Depending on what your room without all of them for you and for can sheet metal element of GT room, Tony and Paul.

Okay.

Liquidity is even apologise George here.

Europe.

Do you have an enhanced visual round just wondering if you can find household income.

We have sensors that Congress for all of US all of you for the time.

Hi, Joshua.

Angela.

Yeah Jonathan.

All women and she's also got harder to argue.

So would you do the 100.

I'm not sure. If this is home to the lithology of Europe.

We will do the challenge of autoimmune conditions about sure China Europe <unk> travel.

Uh huh.

Now people appreciate it pushes you to cancel or the combo <unk> Javier the terminal.

I'll refer to these items equal.

On the intangibles and all that.

How do you see any kind of as Hunter's ego 200, we're trying a lot of women as usual cardholder that was my shelf on the hotline.

Policy.

Looking towards 2020, we launched our undergraduates plus all the first handset.

<unk> SaaS platform in China.

Today, the reveal portal has showcase.

For <unk> applications covering software.

15 industry 20 categories. Additionally, we have always it's always a thrill user comments and what others are industry experts to join the platform.

King.

<unk> comprehensive and centralized enterprise service decision, making platform, we plan to foodservice three months of <unk> model. The first one thinks commission fees from lead generation, which will account for the most significant part of the or all of revenue, we believe our enterprise services reveal.

That's one we'll provide our traffic but funnel that helps.

Our customer more possibly in Europe.

We expect.

Cost of customer acquisition to decrease by at least 30%. This is on a similar to auto home of the automobile industry and so we all of the medical line of building the threat on the third one is to provide marketing management services, such as how can manage enterprise account rent.

The release.

Analytical workforce.

Management's woes on our Weibo portal and the third deals the membership service system covering <unk>.

<unk> sell side offers regular research reports on this will have a fixed membership fee will be charged.

And for this may we already have our try on the commercialization. So we have a SaaS company. That's got some lease and we have a really high conversion rates that is 20%.

This is.

This is a really good result for us.

Better than the competitors in the same industry and also we acquire the customer belief much more cheaper than the others.

So we reasonably will yield renal response defined product system or have some try some.

Better way of Docomo commercialization path. So the real the true commercialization has is suddenly there'll be launched 2022.

Great. Thank you as a reminder, ladies and gentlemen, who asked the question. Please press star one on your telephone keypad.

Our next question comes from Jay Dong from Th capital. Please go ahead.

Sure.

Our most equation of Apple and other shut them in.

There you'll find a cure.

This should help with.

Michelle.

Congratulations on the strong business.

Ultimately one glass half full.

And hopefully we can talk about that.

And Pat offline months. Thank you.

Okay great.

So it's that financial bench of uncontrollable Moshe on the hydro was that timing.

As you know.

Generally you see it.

On the agenda.

Well issue by the time, you know pretty early here.

<unk> does not cause endometrial.

Apple.

And the way to go.

You can control, which are unusual now with them.

For the wrong actually absorbed and Jim.

<unk> will be otherwise.

No no initial GAAP.

No.

Okay.

Now how this order will touch on in June.

Now moving to Azure.

To go to when you got National picture.

So usual cash on.

Thank you. Thank you Tien tsin.

Sure.

Sure Jonathan.

Sure Anthony because Amazon Suzanne joined in Q4, there you kind of a Marshall none of them in the pipeline issues.

Because I'm not sure what kind of inflation was obviously a comfortable the country's existing home how can you can see platinum to haul right.

Thank you.

Obviously in the second half of the year.

So really we will have a lot of the offline events.

But we have already signed some cooperation agreements for offline 18th and the epidemic will have a certain impact on the quality of our client activities.

We will take national policies and epidemic prevention and control as the primary consideration.

On negotiated with our partner for for delay.

The impact of recent up then it will have.

Faced impact on the third quarter on some.

All activities may be delayed to the fourth quarter I believe not be cancelled so hardware from the prospective of six months or the.

The next half year, the impact will not be that much greater.

Also the epidemic will also have some impact.

Real economics entities to upgrade and expand so probably the online advertising advertising revenue will fluctuate a little bit.

Yeah.

Sure.

Thank you if there are no further questions now I'd like to turn the call back to the company for closing remarks.

Yeah.

Thank you once again for joining US today. If you have further questions. Please feel free to call <unk> Investor relations through the.

Contact information provided on our website.

This concludes this conference call you may disconnect. Your line. Thank you.

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