Q2 2023 36Kr Holdings Inc Earnings Call
Okay.
Hello, ladies and gentlemen, thank.
Speaker 1: Thank you for standing by for 36 KR Holdings inks. Second quarter, 2023 Arning's conference call.
Thank you for standing by the 30 6K, our holdings Inc's second quarter 2023 earnings Conference call.
Speaker 1: At this time, all participants are unlucinantly met.
At this time, all participants are in listen only mode.
Speaker 1: After management's remarks, there will be a question and answer session. Today's
After management's remarks, there will be a question and answer session.
Today's conference is being recorded.
Speaker 1: I will now turn the call over to your host, Dianne Ending, I am Manager of the Company. Please.
I will now turn the call over to your host John and Dan I.
Our manager of the company please.
Please go ahead John .
Speaker 2: Thank you very much. Hello everyone and welcome to 36KR holding second quarter 20th anniversary of the conference call. The conference financial and operational results were released earlier today and have been made available online. You can also view the earnings press release visiting the IR section of our website at ir.36kr.com.
Thank you very much Hello, everyone and welcome to started to see our holdings second quarter 'twenty.
The conference call the company's financial and operational results were released earlier today and are have been made available online you'll kind of ultimately all of the earnings press release by visiting the IR section of our website at IR adult subjects as KR they'll come put it on today's call will include our co chairman honestly.
Speaker 2: Participants on today's call will include our co-chairman, NSCEO, Mr. Dagon Phong, an average financial officer missing away.
Oh, Mr Doggone phone and our Chief financial Officer in late May.
Speaker 2: Mr. Phong will start the call by providing an overview of the company and performance highlights of the culture in Chinese, followed by an English interpretation. This way, we will then provide details on the company's financial results before opening the call for your questions.
Mr phone will start the call by providing an overview of the company and confirm those highlights of the culture in Chinese followed by English interpretation.
Wei will then provide details on the company's financial results before opening the call for your questions before.
Speaker 2: Before we continue, please note that today's discussion will content for the looking statements made under the safe harbor provisions of the US private security's litigation reform act of 1995.
Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties.
Speaker 2: Forward locking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today.
As such the company's results may be materially different from the views expressed today further information regarding these and other risks and uncertainties. It is listed in the company's prospectus and other public filings as filed with the U S. S E T.
Speaker 2: For the information regarding this and other risks and uncertainties, it is in state-owned companies, prospectors and other public cloudings as filed with the US SEC.
Speaker 2: The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.
Company does not assume any obligation to update any forward looking statements, except as required under applicable law.
Speaker 2: please note that 36kr earnings pressure leads and this conference call include discussions of unaudited GAAP financial measures as well as unaudited now-depth financial measures.
Please note that thought is it pay our earnings press release and this conference call include discussions of Oh, God financial measures as well as Oh, no that's financial measures.
Speaker 2: such as the PR-SERNELS-PREZULY's content reconciliation of the unaudited now-depth measures to the unaudited GAAP measures . And please note that all amount numbers are in RMB.
So Joseph terrorists earnings press release content that Reconsolidation of the Oh, no GAAP measures Tuesday, I'll discuss measures.
Please note that all amounts numbers argued RMB.
Speaker 2: I will now turn the call over to other co-chairmen and CEO Mr. Da Gong Feng Paul King's voice
I will now turn the call over to our co chairman and CEO , Mr. Doug on phone call. Keith go ahead.
Speaker 3: Thank you. Hello, everyone. Thank you for joining our step-and-corder 2020 earnings conference hall.
If at all.
Gotcha.
Thank you Hello, everyone and thank you for joining our second quarter 'twenty appended to the earnings conference call.
Speaker 3: We are very happy to see the head of the company, Director of the Directorate, and I continue to file a file. The total income is equal to 3% The total income of the company is equal to 3% The total income of the company is equal to 1%
Thank you the online, causing kind of levels. The 20, yeah, well, it's just you and Jim Hi, Def. So total somebody don't have at this.
So you don't see I don't report total Dolby cinema and should you give me a full total Colombia is another industry well. He is just anytime you want Chuck Lindsay George or will it be the hockey Danielle.
Speaker 3: What you C? If have trash hundred aeng. Show most people you Don think the tr ventch and go to down and put out the tor hand show that year can you for for know by exam father.
So as you mentioned and called it out until it all doesn't know what keeps you cool Sherwin has I'll add just real quick can you going off on.
I'm doing well.
Speaker 2: We are glad to know that our premieres business segments continue to develop with steady growth in the second quarter of 2023. Our total revenue increased by 3% year over year, with revenue from our enterprise value added services up 17% year over year, and revenue from our subscription services up 11% year over year. Notepole, our growth margin rebounded strongly to 55%.
Glad to know that our primary business segments continue to develop with steady growth in the second quarter of 'twenty two 'twenty three our total revenue increased by 3% year over year with revenue from our enterprise value added services up 17% year over year and revenue from our subscription services.
11% year over year noteworthy, although gross margin rebounded strongly to 55%. We also made great strides in both to be and to see businesses.
Speaker 2: We also made great strides in both to be and to see businesses.
Speaker 2: As we continue to enhance our high-quality multi-dimensional content matrix and defense, AI empowerment and applications in diverse scenarios across our business segments, we embark on a new development stage of diversified growth.
As we continue to enhance our high quality multi dimensional content makes it deeply Paul Hey, I can comment on applications and diverse scenarios across our business segments, we embarked on a new development stage off diversified growth.
Speaker 3: So in then go to the to not me the ia out, because you can jum around, show data when down U K ad ally ly.
And then they don't come in trying to look like can you just remind me it wasn't that second dose at Alphacat, you'll G&A would have been closer downhill will put a bullet and should also not home yet.
Okay.
No Paul I'm not hold out because the pendulum is what else runs out of downtown he thought it was a dog here Jonathan I know you didn't get little tally.
Speaker 3: Invisible
There isn't anything unless it equals walk you down.
Speaker 3: K more cent, but you have to show youtwo and have companies are not nury. Should energy to those on that.
Huntington is.
Did you think you don't want external consultants. This all you put us into a lot.
Sure Dan This is Joe first.
First off content with something like for new growth areas for our content ecosystem. During the course on made great announcements on multiple fronts, including greater industrial coverage content asset accumulation high quality customer engagement and our broadening multichannel.
Speaker 2: We currently take it for new growth areas for our content ecosystem during the course and made great advancements on multiple fronts including greater industrial coverage, content asset accumulation, high quality customer engagement, and our broadening multi-tinal visualization network.
Speaker 2: For the more, the number of other research articles kept rising in the second corner. We had 100 articles with page rules exceeding 100,000 fully showcasing hepatitis CAR, bleeding, increased in letzre influence.
<unk> network. Furthermore, nonetheless.
Articles capitalized in the second quarter, we had 100.
Articles with page views exceeding 100000 fully showcasing so there's just <unk> on the industrial influence our consistent creation of high quality content enabled us to meaningfully expand our user base and they have long term user loyalty as off the earn off the second quarter we have.
Speaker 2: Our consistent creation of high-quality content enabled us to manipulate the end of a usage and enhance long-term user loyalty. As of the end of the second quarter, we had more than 30 million followers, up 21% year over year, achieving nine consecutive quarter of goals.
More than 30 million followers up 21% year over year, achieving nine consecutive quarter of school.
Speaker 3: This film provides you with credit for your domestic management. The company is servicing their friends and launchers' patterns. The company is packing towels and an order ?ò?? s??? ??? ?? noses.
Also joining us is with the Navy.
Hard to know again that digital health. So you can see that Angela.
But can I know, what you want us to hold on hockey him uncle receivable and pull it all of them that you can get anything new that you can do it with elements you just don't want to go and it won't be that you'll have as had been selling a lot more closely.
So the ball and we'll hold onto these learning at all.
Speaker 3: The vertical media will launch, including waste and the emergency off-metallions, achieved continuous impressive outcomes.
You don't consume a lot of their own pocket.
This is Joe xylem and potential for many future dishwasher in Juba, because theyre more shovel not heat treating TD engineered.
The one that I should say with all the changes that you see that show up on.
The vertical media, we launched including Lake and the emergency often Italian achieved continuous blue cross is outcome, allowing users to gain deeper insights into boom sectors I E.
Speaker 2: allowing users to gain deeper insights into booming sectors and equally important, further consummating our leadership in the new e-commerce sector.
Important for consolidating our leadership in the newly common sector. We also full or soda side, our concert advantage geologist he business during the quarter by optimizing the content of Superville appalled.
Speaker 2: We also follow the side of our content of vintage and average savings during the quarter. By optimizing the content of the group.
Speaker 2: A product test review program and a survey report column will attract a broader audience through more appealing content offerings on everyday life. We also enrich our medium format through the launch of a live podcast entitled, Get Afford, Have Fun. We've also been actively working on audio offerings to bring more listeners more up to the minute business intelligence as well as fun ideas and topics to enjoy each day.
I'll call that person review program and are you White paper, a survey report column, well, attracting a broader audience through more appealing content offerings on everyday life.
When you wish our medium format through the launch of our lifeboat coffee titled got before F. One well also be actively working on all of the offerings to bring more listeners more up to the minute prisoners intelligence as well as some ideas in politics to enjoy each day today.
Speaker 3: Today he sure over the tvania can and chan bodia keeping a Rumble hing ne Ro stop tentionity. twent fromomlong cal the syn onia.
Sure.
Yeah, well it sounds the lunchtime they onboard yet so you can imagine.
I'm Paul Silva thank him.
Tell me if I'm wrong is held us in demand yet or was it all so when you go down and so you'll have a little dog and handles on a bunch of your content.
Speaker 3: The Changyue? of a variety armor can be found in many unsánd areas Re made these
And how do you feel like Youll hold on edge, what you'd play out total hand, unconsciously Nagel Japan's little more sign of what's actually been Jonathan's. Just went out you can cobalt price. Angela told me then I will have Mr. Zhang.
Speaker 3: You don't be. You talk about telling he how to the I was going to.
Good afternoon first of all you talked about I'm not sure how long does that Roger and they're going to lose $1. One. Unfortunately, that's all the easy one I also want to highlight all the video business. The wrong interpretation approach to branded me no economic stream content or content monetization will have a salary to the optimization of our shortly.
Speaker 2: I also want to highlight our short video business.
Speaker 2: Serene integrity approach to branding, new economic symptoms, content and content monetization. We have accelerated optimization of our short video content matrix, transforming it into a new growth region for advertising and marketing. Some of the short videos were created on trending topics.
To accomplish matrix transforming it into a new growth engine for advertising and the marketing some off the shelf video related I'm trying in Tommy.
Speaker 2: We're strength over a million times, including coffee home, fly by when you can rent, and Elon Musk's master plan on Earth thanks to their diverse ideas and a fresh perspective that kept our users engaged.
What's changed over a million times, including coffee home why by when do you kind of learned and I don't know masks master plan hours down to their diverse ideas and a fresh perspectives that perhaps our users engaged.
Speaker 2: As of the end of the second quarter, we had over 8.3 inch of radio followers up 42% year over year, among which more than 2 million were really really others.
That was the end of the second quarter, we had over eight going through international radio followers up 42% year over year I'm always more than 2 million would be the beta users would have indeed become a leader among all firms based on official accounts and we stand ready to seize new opportunities.
Speaker 2: We have indeed become a leader among all that from the base official accounts and we stand ready to seize more opportunities for commercialization of cooperation.
Commercialization of cooperation.
Speaker 3: We also successfully wrapped up the first season of our first long video show for season 2033, which will soon return for a second season. They were attracted to a more audience attention, bringing us additional commercialization of but on the take of the season 2833 we'll be snacks!
That's what I was getting more cutting out anytime soon.
Hello.
Holger because they want to do that.
Not only can follow up on one other thing Joe is a lot towards the June here that I am huh.
We also successfully wrapped after first the season off of her first a long video show Foreseeing 2033, which will suddenly turn for a second season and attracted in large audience attention, bringing us additional commercialization opportunities with leading company.
Speaker 3: F children Little Jews Written by The The
That's really the only honest I'm glad you can correct me, if I'm sure well that'd be John Dorrian quite sure how unusual the T box should be hard them. So now maybe you can put your analyst I shouldn't do that.
Speaker 3: Tell you go say you know you, your me ia, that you I it or you ING what that tell you know to don't have to inside these Ha name would re, because I think I have, you don't it.
Jonny urwin humans.
Valuable sources.
Well once again, thank him either to India.
D G will be very similar.
But sometimes you hustle haynesville as we don't have any inside each alcohol no one's result, shevat to you Paul.
Hum.
Speaker 2: As we diversify and strengthening our content, let's get with innovative things and formats.
As we diversify into strengthening our content Lustig was riches seems Dan formats. We also developed our salt redo landmark I'm, a wide variety of platforms, including BD Binney Doggie LIFO. So I'm sure you go out on a wechat they do account powerful diverse groups of users with precise marketing.
Speaker 2: We also developed our short video line-up on a wide variety of...
Speaker 2: Platforms including Billy Billy, Do-Yin, Pai Shou, Sao Hong Shu, Siguai, and WeChat video account. Part-time diverse groups of users with precise marketing. This in-ex-fives made our content more engaging and empowered more effective, more flexible communication with users.
This initiative made our content more engaging and empowered more effective more communication with users recently, we entered into a strategic cooperation with Beijing Radio and television station to promote the full lifecycle from your genetics development of long videos from.
Speaker 2: Recently, we entered into a strategic cooperation with Beijing Radio and Television Station to promote the full-life cycle's new jet-ex development of long videos.
Speaker 2: from project planning and content production all the way to distribution, promotion and IT communicate, commercialization.
Project planning and the content production all the way through distribution promotion and IP to communicate commercialization.
Speaker 3: Our website messages and technology review of AIG systems tasks in our businessvestone video JA5
So the as you say.
So a few times.
She is also the question on your books now.
These were the new Hall a.
Speaker 3: Of an homem when the Sun? When is the drri? You to the JM M UN four time.
A whole bunch of syndrome.
My name is to try to put in Zhengzhou and Jinan cohorts I know you.
Speaker 3: On the air. develo social Su and P? ple see in a's ite to the cut. Tell you a top langu they lo. How about inury fo on their super centensial come time? thir B conrol acity with the 25 ound. About the people, young Ash you P.
Thanks, Jonathan Poole did you balanced Holthaus was there an pathological P&L items for the phone call.
I have a couple of them that they're losing how long history, which has gone down to a potential partner or thereabouts again.
If you paid attention to is all about all answerable question, Yeah, you pay them.
Those tough umbrella.
Speaker 3: and also the secondym payULA.
Yeah.
That's the whole that's until we got that people didn't know what was that.
And you can do it we also explore more AI GC use big pieces for our business during the quarter through a call center production called up in Malaysia, what have been actively integrating pioneering AI technology into our day to day operations.
Speaker 2: We also explore more AIGC use big pages for our business during the quarter. Through cost and production, product innovation will have been actively integrating pioneering AI technology into our day-to-day operations, including copywriting, translation, keyword matching, image generation, and intelligent customer service, among other functions.
<unk> Copywriting translation P, what matching image generation and intelligent customer service among other functions.
Speaker 2: In our AI e-commerce store, our first live streaming sales session hosted by Digital Humans was a speedtaste.
Our AI E Commerce store, our first live streaming sales does show hosted by digital humans want to speed pace, whereas a hungry or sick they saw them deals and our impressive daily Janvey, stating RMB 10000. It was included in Palma list of supersonic imagine.
Speaker 2: With 160,000 views and an impressive daily GMV exceeding R&B 10,000, it was included in Taobao's list of super-sorted images.
Speaker 2: clothing stores. During the 618 color shopping festival, we were featured on China's Central Television. The end of the program was brought up on multiple channels, including CCTV.com, as well as CCTV app. Our AI marketing success story was again highly recognized by the China content marketing award. Attachment to our leadership in AI innovation and application.
Clothing stores.
The six one H E Commerce shopping festival, we were featured on China Central television.
The program was broadcast on multiple channels, including CCTV about com as well as a visit to the App, our AI marketing success, though it was again highly recognized by the China content marketing Oklahoma.
Let's move to our leadership innovation and applications.
Speaker 3: sincely only by the go thousand was. They have times twent D? ual seeighty T four patient from in the couny in question, SI marin term shaahoo.
Well be back to what I can tell you.
They hold times I'll tell you as usual that maybe.
Q4 clubs in the country and Jose how much until travel is also now eastern Canada had no one's sometime probably more I'm wondering you know.
Speaker 3: You should see end. I know some have ly more. I what you news should have.
Speaker 3: On a related note, we recently entered into strategic cooperation with Baidu, joining hands in broadening AI applications across our media platforms, enterprise services and training, threatening commercialization and innovation as we empower mutual growth.
How much into the final.
How much into the final.
I'm talking about the hot water on a related note. We recently entered into a strategic cooperation with Baidu. Sony has important application of our media platform Enterprise services and training southern commercialization on innovation as we empower mutual goals.
Speaker 2: Our teams are working closely on the diversified AI-powered landscape, including current production and application marketplace showcasing applications powered by large language model, LLM function.
The teams are working closely with diversified yeah, Howard landscape, including content production application marketplace showcasing applications powered by large language model L. L M function.
Speaker 2: our solutions and training programs on AI applications.
Solution I'm training programs, Yeah application.
Speaker 3: So no bot ION only. Also have think alges with the chanaf for now. 3- see that you saw put in two with the V. have T get the strateg youn you ity for.
So none of those are all on board.
Single name wasn't that didn't get her hedges would that signed off on them.
But again, it's we're going to close a deal with us.
I bet, you don't get electricity junket here in Los Angeles useful yeah, we definitely we held them down at that time have I mentioned it isn't done yet.
Speaker 3: Yeah we always help darding guar. They 't have materials in.
Speaker 2: It summaries as we persistently advance and empower our content ecosystem with AI technology, we provide our business steady growth, laying solid foundations for continuous performance improvements.
Summary, isolated persistently advanced and empower our content ecosystem with AI technology, we profiled our business steady growth laying a solid foundation for continuous performance improvement, perhaps elect to reveal our commercialization progress.
Speaker 2: Next, I'd like to review our commercialization progress owing the second quarter.
The second quarter.
Speaker 3: We have been in the same area for 3.5 million people. We have reached 8,436 million people. In addition, we have reached 5,700 million people. We have been in the same area for 7 years.
And usual almost on total somebody's not I'm, just saying that I'll try.
So that's I don't know any of that.
Commercial real what I would change that she didn't get entered in Banca then there can be some of it is just the sheer essentially you don't get it.
Speaker 3: In the second quarter of 2023, our total revenue increased by 3% over years to RMB 84.36 million. Not only our advertising revenue reached RMB 57 million, basically on par with the same period last year, our advertising pool increased to RMB 210,000 up 14% over years.
The second quarter of Columbia from history, I would total revenue increased by 3% year over year to RMB 84 pounds 36, Canadian Napoli our advertising revenue reached RMB 57 million basically on par with essentially over the last year, our advertising our pool increased to RMB 310.
Following up 14% year over year sorry.
Speaker 3: Xanadu can provide diversified content and creative services based on customer brand style, effectively help customers meet the needs of different groups, and provide a unified marketing solution for customers.
Turning to <unk>.
And I'd tell him they call what you won't tell you what I know you won't have a playful really help on the call was that because orange and for that I'll definitely I'll Echo what do you want to.
And just on the needle well Mckeeman took hold Gilles you already even though cause it held all hobby them or did you mean to you.
Speaker 3: This quarter, we will actively meet customer demand and work with Alibaba, Jingdong, Zijie Jump, Huawei and other international well-known companies to carry out more in-depth cooperation.
Hi, good afternoon.
Speaker 3: Inevitably speaking, the internet of details could come off a?y? BII Inevitably speaking, the internet could come off a?y? A?y? BII Inevitably speaking, the internet could come off a?y? BII
What was your Chicago nickel what did you say Hello, you wouldn't you just put a little what's also taught our children.
Sure.
As you can see that off hand.
How 'bout Giuliano somehow.
I don't know why that was and how needle volatile then shifting took him because he makes a huge huge Allen Campbell closeouts without alcohol without a cohort up although it started just KR provides customers with a differentiated content offerings and creative services tailored to the features of each and every brand.
Speaker 2: 36KR provides customers with differentiated content offerings and creative services tailored to the features of each and every brand.
Speaker 2: Our first stop marketing solution centers on lending and the ethics they provide for this precise effective marketing promotion targeting diverse customer goals in the second culture. To actively address the needs of our customers, we depend on the cooperation with global giants, such as AlibabaJD.com, and our Huawei, and I did new accounts to brought in our industry range. We also signed a G7 sheet of our first luxury brand and designed an innovative, engaging splash and content of them.
One stop marketing solutions centered I'm wondering and I think they provide.
Precise effective marketing promotions.
We think that most of the technicals in the second quarter to actively addressing.
Well it depends a cooperation with global Giants, such as Alibaba JD com.
And our Bali and I did new York costs to broaden our industry reach with.
So sign which is M sheet of her first luxury brands and designers Emily tape engaging slash in companion for them. Furthermore, it created a diverse promotional content foreseeable down through slashed shape household Africans in the form of graphics taxi videos as well as test reveals and promote.
Speaker 2: For the more, the created diverse promotional content for Jo Young's 3 Flash
Speaker 2: Sheep, post-hold applicants in the form of graphics.
Speaker 2: Taxi, videos as well as test reviews and promote them across new online channels through our new media matrix.
Get them across numerous online channels through our new media may shake out.
Speaker 2: Our multi-dimensional targeted approach helps the Jooyang effectively reach their target orders, when he has raised from the time.
Multi dimensional targeted approach help the giuliana effectively reaching a coffee coolers linear interface from the time.
I mean, that's what you mean, yeah, yeah in fact instrument control and you do Santa Claus already spoken about how that's how it was all about.
Speaker 3: When as meia you to twentue, to sen, twent show band, show TIM in kind of, or the 20 cent child that I, you remember the torture. Only I Ho to down P say try, you have to down work you tention that.
I mean kind of what are you trying to say central that is driven by those two sir.
So Don Seibel, which basically you're trying to go into it sounds like that's the only work has you won't be attached to that.
Speaker 3: In addition, it is also worth mentioning that after the last quarter's release of the car certificate, 36 cars have completed the commercialization of BMW cars in the second quarter, and have accepted BMW's circular economic development. We attract a large number of users with high-quality content, and then attract a huge flow of traffic, attracting the continuous attention and investment of many brands, thus forming a positive cycle pattern.
Yeah sure. So you're trying to do those type of fuel that you didn't call center, what you told us that the article I tell them, all answered or the Shanghai show that digital biomarker trial potential Johan here.
We yielded a needle C&I anyway, what he was saying C O to reformat it seems when looking back how much does your bundle that hurdle. So our general allowance enough Sean Moshe next I have a short video business, which delivered another quarter of stellar results in the second quarter on the street and pensions advertising business part.
Speaker 2: Next, our short video business, which delivered another coat of stellar results.
Speaker 2: In the second quarter of 2023, as Tencent advertising business partner, Willow was invited to Kandans and offered extensive on-site coverage at the Kandans Alliance International Festival of Creativity.
We were invited to canyons and offers extensive onsite coverage at the conference line is international festival of creativity. Meanwhile.
Speaker 2: Meanwhile, we will assault from TV commercial with the button to tell its low-carbon story showcasing strong yes-g commitment. Regarding the auto-contact matrix we launched earlier this year, other Wichet Video Account Services Care Auto delivers a short video promotion for BMW in the second quarter, featuring the evolution of the auto industry in the circular economy.
A short form TV commercial was broken down into hotel its low carbon story showcasing strong yesterday commitment regarding the auto contact matrix, we launched earlier this year, although wechat. They do account so they just pay our auto deliver a short video promotions with BMW in the second quarter feature.
We enjoy evolution of the auto industry in the circular economy.
Speaker 2: Without a short video business, we have established a research cycle where our community support and Coronavirus community takes place.
I have a short video business, we have established a vicious cycle, where our primary content attracts users and increases thickness driving that oversee increasing traffic. We then leverage our massive traffic to attract greater advertising interest from even more funding partners.
Speaker 2: users and increases their sickness driving an over-the-incresive traffic. We then leverage our immersive traffic to a track greater advertising interest from even more exciting partners.
Speaker 3: The April 30 is a road-maid full of social transport I've reached for 17,65 million dmg eczema 18 and fucking 17
He is wonderful.
So with that I'll handle that usual way that told me is another interesting piece. So that's now I don't want to internalize that and use a little tougher to answer hopefully more just attention who he Shang holdings Ito Cookie Denver, Yeah go.
Speaker 3: So this's now 't but Ho more tutious change and notic.
Speaker 3: We have launched a brand-new IP, VIVS Heartbeat Conference, to create an open and easy social scene for young people and further enhance the brand awareness and influence of 36H.
And talking to you to take.
Well it changes and what have you.
We don't know exactly when you hear me Okay fine she was going to say that people, who don't have all the time there were quite a few that didn't you do it.
Speaker 3: At the same time, we are working hard to focus on globalization and the field of sustainable development, and we have held a global value conference on the opportunity to upgrade.
What's your old and new bundles and you'll have some countries you've had I mean do you find most physicians and you'll have to have.
Speaker 3: teurally o con itution sho buddha to the lecttr people to mti P city dioperion was. Yet he component machan engine inees.
That's what it will be the only ones.
So you don't have to own your philosophy here that some of what you're seeing behind them. They can engine.
Speaker 3: In addition, the layout and development of our regional business has shown results. In Beijing, Chengdu and Xi'an, SKPS has held a series of trend sharing meetings to further verify Sandvik's service capability for enterprise innovation.
Right well, the two year, where would you put it out into more him too.
Into Louisiana, that's Crazy I just found out once you finally hit it how do you think that way.
We are not trying to call to talk to you in the fall when I meet with.
Speaker 2: With respect to enterprise value added services, our revenue will up 17% year-over-year to RMB 16.8 million. We greatly increase the number and scale of our events during the second quarter as consumption and offline activities regain steam. We hope this is also some good news.
With respect to Andrew plus value added services.
We're up 17% year over year to RMB 16, 8 million to greatly increase the number and the skill of our events during the second quarter as consumption, all Florida and peso against the.
Oh, no sudden likely takeaways, new venture capital technology culture, and music themed create open a relaxed the social networking scenarios for the younger generation further enhancing food basics chaos brand awareness and influence in the meantime, as part of our continuous effort in glu.
Speaker 2: Integrating venture capital, technology, culture and music seems to create open and relaxed social networking scenarios for younger generations, further enhancing statistics, KR's brand, awareness and influence. In the meantime, as part of our continued efforts in global expansion and sustainable development, we hosted the WISE 2020 Stray Global Foundation Value Conference, and would you please demonstrate a brief solution to the COVID-19 Stray Global Foundation's The COVID-19 Stray Global Foundation
Expansion and a sustainable development.
State wide 2023 global integration value conference alternate tasteful libraries. In addition to our TB business, we continue to be fiction, they reach more high quality users in our PC business.
Speaker 2: In addition to our TV business, we continue to effectually reach more high-quality users in our TC business, successfully attracting a wide range of young customers with our lifestyle, first of all, city life.
Hopefully attracting a wide range of young customers with our lifestyle Festival City life will have also a nice meaningful lasting developing and expanding our original business.
Speaker 2: We have also made meaningful work in developing and planning our regional business.
Speaker 2: This is the place where we will share in session featuring the latest item in STPS, shopping malls across Beijing, Chengdu, and CN, Dimitric Hall. Full of reflecting our ability to support innovation among our large enterprise customers.
Totally stage Alere with sharing session featuring stylish items U S. P. P S shopping malls across Beijing, Chengdu and see us doing the.
Full of affecting our ability to support innovation among our large enterprise customers.
Speaker 3: In the field of consulting services, Sandvik Research Institute, as an industry observer and trend observer, has always focused on real-world research on cutting-edge technology, innovative trends, and commercial development. Through rich data analysis and observational power, we provide valuable insights and guidance for industrial change and innovation. This quarter, our partner, NetEase Music, released the Long-Term Sound Consumption Trends Report, which provides valuable reference for sound-related listeners. At the same time, it also provides strong support for the commercialization of long-term sound industry. Next, our consulting services
Okay, so you're avoiding at San Jose.
She said, yes, she's wondering who you're saying because you're collecting tissue.
So we didn't deal with Huntsville sometime and I don't have any time you didn't go to only one catches attention that much at all.
And then if you don't want to you it probably at any time can you tell if it's just volatile but you know you can once Angela do you want me to answer the phone call, especially those that have continued to use the Shanghai project do you only own leisure next our consultants such as.
Speaker 2: As a short observer providing insight into industrial trends, 36KR research institute has always been dedicated to in depth research on cutting-edge technologies, innovation trends and business tech development, leveraging...
As a shrewd Oliver providing insight into industry trends. So this is K R. Research Institute has always been dedicated to adapt research on cutting edge technologies, and innovation trends and business development now raging.
Speaker 2: massive data analysis and business insights, we provide informed opinions and the guidance on industrial transformation and innovation. In the second quarter, we joined hands with NetEase PopMusic in releasing the post-20,000 generation long-form audio consumption report, providing a valuable reference for the audio content industry, as well as strong support for our commercialization in long-form audio
Massive data analysis and business insights, we provide informed opinions on the guidance on the industrial transformation.
<unk> in the second quarter, we joined hands with <unk> is called music easy leasing as opposed to the 20th Baldwin generation long form audio consumption type of clot, providing a valuable reference for the audio content industry as well as strong support for our commercialization and long form.
Unknown Executive: Hello, ladies and gentlemen. Thank you for standing by for 36kr Holdings Inc's second quarter 2023 Arning's conference call. At this time, all participants are in listen-only mode.
Unknown Executive: After management's remarks, there will be a question and answer session. Today's conference is being recorded.
Speaker 3: Give move har ia. When the page you will come up, P will bit more. You can yourjo ia. When you matter, you Ho raising sammo. You put your hope, your an.
Hum.
I'm going to talk a bit more time for the nonbank, Michigan nature, you can intertwine, yet, but as usual Sander question Ingo and you didn't ask it. So you don't have cobalt dishwasher isn't sample people Hershey and punch a hole.
Jianan Ding: I will now turn the call over to your host, Jianan Ding, I will manager the company. Please get ahead, Jianan. Thank you very much.
Goodbye to Moorestown.
Speaker 3: two more 10 times, since I can more, which you end, that I go to the C years, then that to go to the social should you got more town was in piing cult. n't do your culture that we put down. But could T? sh ly you and about my uncle.
Sure sure.
Yeah.
Jianan Ding: Hello everyone and welcome to 36kr Holdings second quarter 2020 Arning's conference call. The company's financial and operational results were released earlier today and have been made available online. You can also view the earnings press release that visiting the IR section of our website at ir.36kr.com.
I thought it was them down too, but yeah those.
Those are all of interest you got them, all kind of Oklahoma, who absolutely Jimmy and Pershing Cultural why don't you talk Ultrasound example, don't do well actually I'm credentials.
So you end up on a handful as for subscription services, we made great strides in training programs substantially increasing our revenue by 11% RMB $10 6 million in the second quarter. So does this payout business school corporate data was annuity herself up for too long to a degree based on cable College post.
Speaker 2: As for subscription services, we made great slides in training programs, substantially increasing our revenue by 11% to RMB 10.6 million in the second quarter, such as KRBD School, perpetrated with a new diversity of off-scored to long-to-digit based cable college for software research programs. This program brought top-tier learning experiences to our users through a combination of online and offline initiatives.
Unknown Executive: Participants on today's call will include our co-chairman and CEO, Mr. Dagang Feng, and our chief financial officer, Missing Wei.
Dagang Feng: Mr. Feng will start the call by providing an overview of the company and performance highlights of the culture in Chinese, followed by an English interpretation.
After a research program. This program bra pop here learning services to our users. So a combination of online and offline initiatives driving of us increasing our pool to over RMB 2000. Meanwhile, we continue also in English the high quality training courses offered through our venture.
Speaker 2: driving a vast increase in our approach over our MVA 2000.
Missing Wei: Miss Wei will then provide details on the company's financial results before opening the call for your questions.
Speaker 2: Meanwhile, we continue to enrich the high-convict training courses over through our venture capital, class and funding as a lawyer.
Unknown Executive: Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S, private security litigation reform act of 1995, forward-looking statements involved in current risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is instated in the company's prospectors and other public cloudings as filed with the U.S. SEC.
Capital costs and the funding on Soliris.
Speaker 2: Put the propelling kite onto the wall and draw in space from a wider ray of water.
For example, piling high hung deals as well and that's all in place from a wider array of Gordon.
Speaker 3: thir coming on me with L ch. Tell me you C talk you. I you know ch C C isure for your Ho, your UM you. You like ual om minjor de like you you, minmoisure Minis.
Oh man sign of what you've looked at me I'm talking about China.
Can someone go down is what you just what was always well if you go back.
Can you get them all the time.
As usual you know for now, but you know what you won't put out England plus all the time.
Oh sure Johnson uncomfortable, telling courtyard, yeah, Hey, Jonathan Yeah, its usual seasonality than usual at home with a number of major hurdle that you guys didn't have any so it can be something that I missed this year.
Unknown Executive: The company does not assume any obligation to update any forward-looking statements except as required on the applicable law. Please note that 36kr's earnings press release and this conference call include discussions of unaudited gap financial measures as well as unaudited small-depth financial measures such as this pair of earnings press release content reconciliation of the unaudited small-depth measures to the unaudited gap measures and please note that all amount members are in R&B.
One Guy told me can I, if I understood that.
Speaker 3: The shines commit. He would T giving you that, usually yota chia or for in the coworcinia. So you research ance transance in any chary co rle as incredit pin Union.
Oh man.
I, usually you'll just have an awful you Nicole what kinder had already and you touched on the content anytime he calls will lessen cookie continuing high I'm sure sure that window, but I don't think I'm sure she's pool for the Hudson should show you Tangshan and telco 90, you've had as these were there people just want to know how to use it.
Speaker 3: Last but not least, I'd like to share an update on the intro shown to the video.
Last but not least I like to share an update on enterprise.
Enterprise.
Dagang Feng: I will now turn the call over to our co-chairman, NCO, Mr. Dagon Phong, Paul Tings go ahead. Thank you. Hello, everyone. Thank you for joining our step-and-corder 2022 earnings conference call. We are glad to know that our primary business segments continue to develop with 30 grows in the second quarter of 2023. Our total revenue increase by 3% year-over-year was revenue from our end-to-press value-added services up 17% year-over-year and revenue from our subscription services up 11% year-over-year.
Well continuous lately, finding core product inflammation resolved multiple national ranking based on either.
Speaker 2: While continuous lay-refining core product information results multidimensional rankings based on other analysis of data of the chat world. Through AI applications and the empowerment, we provide a user with more precise and efficient overall product information and decision-making support and enabled more interactive user-friendly intelligence-customer service. As of the end of the second quarter, the cumulative number of reviews increased by 99% over year. The cumulative number of products on the platform was up 40% over year, and the number of merchants on the platform increased by 43.
Later.
So AI applications and element will provide our users with more precise and efficient Oh, Myrtle Potter inflammation or decision, making support and enable more interactive user friendly intelligent customer studies, that's off the end of the second quarter. The cumulative number of deals increased by 99.
10% year over year accumulated number of club apps on our platform was up 14% year over here are the number of merchants on the platform increased by 43% year over year.
Speaker 2: Percent of you over here.
Speaker 2: Commercial aid, the 36PR and the Presbyter's review platform has one Latin customer trust with its high-cony products and services. Decorating long-term cooperation with staff manufacturers in various fields including Wondershare, Pinkie-Vin, IHR and Sian.
Commercial lasers 36, PR for somebody to reveal platform has a long lasting customer trust with this high quality products and services securing long term cooperation with soft manufacturers in various fields, including one of their shares.
I H I N C. N. Okay go ahead, especially just care Enterprises survey reveals that form will contain also address customers' needs to better support their digital transformation, making both marketing and customer acquisition. He's there for enterprise customers.
Speaker 2: little things for heads. The Census is KR Enterprise. So this review platform will continue to address other customers needs to address all their digital transformation, making both marketing and customer acquisition easier for enterprise customers.
Dagang Feng: But note for that, our growth margin reported strongly to 55%. We also made good strides in both to be and to see businesses. As we continue to enhance our high-quality multi-dimensional content and deeply AI empowerment and applications in diverse scenarios across our business segments, we embarked on a new development stage of diversified growth.
Speaker 2: What will play and give a more active role in AI intelligence and applications to attend more sophisticated intelligence operations?
We will play and give them more active intervention and applications will attend more sophisticated intelligent operations.
Speaker 3: To no, when I was idea you to tell protensity that how, how is Don show SA when you re about your me, you only not. Should money you back soci o you. This is you put teach young, testing you intern. Put in that.
So one of them as well.
Or is it all kind of Los Angeles, you've got now how does how is your so in total was up against it I was just wondering that.
G box just wont be you wont be so not much at all what are you totally about social without Tel Aviv, you, usually don't show up and then they wont be how do you put them teach them because you did add anything you'll ship within Danielle.
Speaker 3: ch this will port tr what you down. I emergency for the prespro ader. Have any one time that change the pance. You n something that you with you on not 20 ution could tain you. The tr 10. you try ION re. You don't want for get you got down.
I'm, just gonna toss them to have that she's into what you're doing is you're doing about San Jose.
Yeah emergencies without because a lot of it doesn't have any don't have any kind of change in the finance.
Well the timing didn't pan out.
Your line I'm talking to us and they can cause here in the United Kingdom, essentially didn't hinder other whole Daiichi sushi tenants yeah, exactly what you were talking of a family meal. It's hard if you don't want to get you know culture change all of them got to sum up for the second quarter, we delivered solid financial results. Once again with total revenue was RMB 18 four point.
Dagang Feng: First off, content. We tried to make it for new growth areas for our content ecosystem during the course and made good advancements on multiple fronts including greater industry coverage, content asset accumulation, high-quality customer engagement, and our broadening multi-tall organization network. Furthermore, the number of other staff articles kept rising in the second quarter. We had a hundred seed articles with cage rules exceeding 100,000 fully showcasing services, KR seeding insights and industry influence.
Speaker 2: To sum up, for the second quarter, we delivered solid financial results once again with total value of RMB 84.4 million, maintaining growth momentum both year over year and quarter over quarter. Other growth margins also rebounded to about 55 percent level. Moreover, we continue to enhance our content influence and build our competitive advantages in the lower-class sector.
Hum.
Turning growth momentum both year over year and quarter over quarter. Our gross margin also rebounded towards the above 55% level Motorola we continue to enhance our content influence and build our competitive landscape.
Uh huh.
Speaker 2: The number of solar taillights on Sun rice at outer straight in a interessing state.
Remember the stated surfing median oh hang lives all night corner straight we believe the boom of generative AI and I O N.
Speaker 2: We believe the boom of Generative AI and LLM that lavish tremendous opportunities on the content industry.
Dagang Feng: Our consistent creation of high-quality content enabled us to meaningfully extend our youth space and enhance long-term user loyalty. As of the end of the second quarter, we had more than 30 million followers, up 21% year-over-year, achieving nine consecutive quarter of growth. Our professional media, An Yong Wei, and this news is now being released. It is the process of tracking the chain. Not only the users, but also the users of the event, we also heard a report that we are currently in the first place.
There's a tremendous opportunity on the content industry.
Speaker 2: our consistent commitment to innovation and reloat technology foresight and the third cooperation with global giants will further empower us as we progressively integrate AI into our business scenarios, compiling long-term high-quality growth across all our our standpoint. Mohammed tonight.
We're a consistent commitment to innovation I would rather own the technology foresight and the thorough cooperation with global Giants will further empower us as way progressive late integrate AI into our business scenarios cause housing long term high quality growth across all our segments.
Speaker 2: With that, I will now turn the call over to our CFO , Ms. Lin Wei, who will discuss our key financial results.
With that I will now turn the call over the cloud and CFO , Mr. Wei, who will discuss our key financial results.
Dagang Feng: At the same time, we continue to talk about this content. We have developed products, products, products, and other products. The content of the number report and the content of the number report. The content of the content and the content of the content, we will open up the latest news. So, let's not forget about the news of the news. [inaudible][inaudible] Next, with innovative things and formats, we also developed our short video line-up on the wide variety of platforms, including Billy Billy, Dau Ying, Pei Qiu, Shan Hong Shu, Siguai, and Wei Chat video account.
Yeah.
Speaker 4: Thank you, pal. Now I'd like to work you through more details of our second quarter 2023 financial results. Please note all amount numbers in RMB and likewise, do it.
Thank you Paul now I'd like to walk you through more details of our second quarter of 2023 financial results. Please note all of my numbers are in RMB unless otherwise stated.
Speaker 4: Total RAM news increased by 3% to 84.4 million in the second quarter of 2023, up from 81.7 million in a same period of last year.
Total revenues increased by 3% to $84 4 million in the second quarter of 2023 up from $81 7 million in the same period of last year.
Speaker 4: Online advertising services and revenues were 57 million in a second quarter 2023 compared to 57.8 million in the same period of last year. The slight year-over-year decrease was primary, attributable to the liking effect of the micro economy which is still in the early stage of recovery.
I don't have any insight into the revenues were 57 million in the second quarter 2023, compared to $57 8 million in the same period of last year. The slight year over year decrease was primarily attributable to the lagging effect of the micro economy, which is still in the early stage of recovery.
Speaker 4: Enterprise Value Added Services Ram News increased by 17% to 16.8 million in a second quarter of 2023, as we continue to be able to bear with proactive and across levels services for all customers.
Enterprise value added services revenues increased by 17% to $16 8 million in the second quarter of 2023, as we continuously biopsy bear with proactive enterprise level services for our customers.
Speaker 4: Our offline events business achieved no-tor growth during the quarter. As they reopening continues and we hosted several successful conferences and summits.
Our offline events business achieved a notable growth during the quarter as the reopening continues and we hosted several successful conferences and summits.
Speaker 4: Subscription services is a brand new increase by 11% to 10.6 million in a second quarter of 2020. So, compared to 9.5 million in the same period of last year, the increase was primarily actionable to our continuous efforts to offer high quality subscription products to our subscribers.
Subscription services revenue increased by 11% to $10 6 million in the second quarter of 2023, compared with $9 5 million in the same period last year. The increase was primarily attributable to our continuous efforts to offer high quality subscription products to our subscribers.
Speaker 4: Cost of RAM news was 37.6 million in a second quarter of 2023 compared to 30.8 million in the same period of last year.
Cost of revenues was but.
Seven 6 million in the second quarter of 2023 compared to $30 8 million in the same period of last year.
Speaker 4: The increase was primarily actionable to higher fulfillment costs and content costs. Growth profit was 46.7 billion in the second quarter of 2023 compared to 50.9 million in the same period of last year. Growth profit margin was 65% in the second quarter of 2023 compared to 42% in the previous quarter and 62% in the same period of last year.
The increase was primarily attributable to higher fulfillment costs and content costs.
Gross profit was $46 seven in the second quarter of 2023 compared to 54 9 million in the same period of last year gross.
Gross profit margin was 55% in the second quarter of 2023 compared to 40 compared to 42% in the previous quarter and a 62% in the same period of last year.
Speaker 4: As we forecasted on our Q1 earnings call, our GP margin rebounded strongly as expected and was back to the above 55% level.
As we forecasted on our Q1 earnings call, our GP margin rebounded strongly as expected and work back to about 55% level.
Speaker 4: On year over year basis, the flat decrease was primarily actual blow to the resumption of offline events and offline tuning courses, which usually occur higher costs.
On year over year basis, the slight decrease was primarily attributable to the resumption of offline events and offline training courses, which you were like a core of higher costs.
Speaker 4: Operating expenses were $65.1 million in the second quarter of 2023, slightly increasing by 1% compared to $64.6 million in the same period of last year.
Operating expenses were $65 1 million in the second quarter of 2023, slightly increasing by 1% compared to $64 6 million in the same period of last year.
Speaker 4: sales and marketing census was 33.9 million in the second quarter of 2023 and increase of 24% from 27.4 million in the same period of last year.
Sales and marketing expenses were $33 9 million in the second quarter of 2023, an increase of 24% from $27 four meeting in the same period of last year.
Speaker 4: This was primarily actual vote to the increase in payroll related expenses and business travel related expenses.
This was primarily attributable to the increase in payroll related expenses and business travel related expenses.
Speaker 4: G&A expenses were 17.7 million in a second quarter of 2023. A 26% decrease compared to 23.8 million in the same period of last year.
<unk> expenses were $17 7 million in the second quarter of 2023, or 26% decrease compared to $23 8 million in the same period of last year.
Speaker 4: The decrease was primarily actual vote to the decrease in payroll related expenses, share-based compensation expenses, professional fees, and allowance for credit loss.
The decrease was primarily attributable to the decrease in payroll related expenses share based compensation expenses professional fees and allowance for credit losses.
Speaker 4: Research and development expenses was 13.6 million in a second quarter of 2023, slightly increasing from 13.4 million in the same period of last year. This was primarily achievable to the increase in payroll related expenses, as well as bandwidth and server expenses, gradually outside by the victories in share-based compensation expenses.
Research and development expenses was $13 6 million in the second quarter of 2023 slightly increasing from $13 4 million in the same period of last year.
This was primarily attributable to the increase in payroll related expenses as well as bandwidth and silver expensive.
Partially offset by the decrease in share based compensation expenses.
Yes.
Speaker 4: Clear base compensation expenses recognized in court of revenues, sales and marketing expenses, research and development expenses, as well as G&A expenses totaled 1.8 million in the second quarter of 2023, compared to 2.6 million in the same period of last year.
Yeah, but its compensation expenses recognized in cost of revenues sales and marketing expenses research and development expenses as well as G&A expenses totaled $1 8 million in the second quarter of 2020, it's weight compared to $2 6 million in the same period of last year.
Dagang Feng: Partly diverse groups of users with precise marketing. These initiatives made our content more engaging and empowered more effective, more flexible communication with users. Recently, we entered into a strategic cooperation with Beijing Radio and Television Station to promote the full-life cycles and energetic development of long videos. From project planning and content production, all the way to distribution, promotion, and IP communication, commercialization. [inaudible] Keyword matching, image generation, and intelligent customer service, among other functions.
Speaker 4: Other income was 4.8 million in the second quarter of 2023 compared to 22.7 million in the same period of last year. The decrease was primary because the company recognized approximately 18.5 million of investment income arriving from failed value change of long term investments in the second quarter of last year. Net loss was 13.7 million in the second quarter of 2023 compared to net income of 9 million in the same period of last year.
Other income was $4 8 million in the second quarter of 2023 compared to $22 7 million in the same period of last year. The decrease was primarily because the companies recognized approximately $18 5 million of investment income arising from fair value change of long term investments in the second quarter of last year.
Yeah.
Net loss was $13 7 million in the second quarter of 2023 compared to net income of 9 million in the same period of last year.
Speaker 4: Nangap Adjustment Nowals was 11.9 million in second quarter of 2023 compared to Nangap Adjustment Nowals income of 11.6 million in the same period of last year.
non-GAAP adjusted net loss was $11 9 million in the second quarter of 2023 compared to non-GAAP adjusted net income of $11 6 million in the same period of last year.
Speaker 4: 9-Law's Etch-Bootable to 36KR's ultimate shareholders was 13.9 million in the second quarter of 2023 compared to 9-income Etch-Bootable to 36KR's ultimate shareholders of 8 million in the same period of last year.
Net loss attributable to 36 chaos ordinary shareholders was $13 9 million in the second quarter of 2023 compared to net income attributable to southern states chaos only shareholders of <unk> 8 million in the same period of last year.
Speaker 4: Basic and diluted NETLAR for ADS are both 33.5 cents in the second quarter of 2020-23 compared to basic and diluted NET income per ADS of 19.5 cents in the same period of last year.
Basic and diluted net loss for 80 as well both 335 cents in the second quarter of 2023 compared to basic and diluted net income per ads of $19.05 in the same period of last year.
Yeah.
Speaker 4: As of June 30, 2023, the company had cash, cash equivalents, restricted cash and short-term evacments of 136.5 million compared to 169.8 million as of March 31, 2023.
As of June 30 of 2023, the company had cash cash equivalents restricted cash and short term investments of $136 5 million compared to $169 8 million as of March 31st 2020 sweep.
Speaker 4: The decrease was mainly in actual vote to not cash off low from operating activities, which include approximately 10 million cash payments related to the competence move of its headquarters to a lower rental office building in Beijing.
The decrease was mainly attributable to net cash outflow from operating activities, which include approximately 10 million cash payments related to the company's move all the headquarters to a lower rental office building in Beijing.
Dagang Feng: In our AIGcommerce store, our first live streaming sales session hosted by digital humans was a speedtaste with 160,000 views and an impressive daily gym wage, dating R&D 10,000. It was included in the top of list of super-started imaging clothing stores. During the 6180 cover shopping festival, we were featured on China's central television. The end of the program was broadcast on multiple channels, including CCTV.com, as well as CCTV app. Our AI marketing success story was, again, highly recognized by the China content marketing award.
Speaker 4: This concludes all of our play-hare remarks today. We will now open the call to a question. Operator, please go ahead.
This concludes all all of our prepared remarks today, we will now open the call to questions. Operator. Please go ahead.
Yes.
Thank you.
Speaker 1: If you wish to ask a question, please press star, then one on your telephone, and wait for your name to be in and out.
If you wish to ask a question. Please press Star then one on your telephone and wait for your name to be announced.
Speaker 1: If you wish to cancel your request, please press star then 2.
If you wish to cancel your request. Please press Star then two.
Speaker 1: If you are on a speaker phone, please pick up the handset to ask your questions.
If you are on a speaker phone please pick up the handset to ask your question.
Dagang Feng: A testament to our leadership in AI innovation and applications. [inaudible] In the second quarter of 2023, our total revenue increased by 3% over the year to RMB 84.36 million. Not only our advertising revenue reached RMB 57 million, basically on par with the same period last year, our advertising increased to RMB 210,000 up 14% over year. [inaudible] advertising, and we will continue to work together to improve our advertising[inaudible] and we will continue to work together to improve our advertising, and we will continue to work together to improve our advertising, and we will continue to work together to improve our advertising, and we will continue to work together to improve our advertising, and we will continue to work together[inaudible][inaudible] Wu, Wu,[inaudible] Wu, Wu, Wu, Wu, Wu, Wu,[inaudible] Holdings, Peipei, Lingyi Zhao, and Zhou Ying-Sui, from a wider way of doing it.
Speaker 1: For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.
For the benefit of all participants on today's call. If you wish to ask your question to management in Chinese. Please immediately repeat your question in English.
Yeah.
Speaker 1: Our first question today will come from Jingtang of CICC. Please go ahead.
Our first question today will come from Ching Tang of TICC. Please go ahead.
Okay.
Speaker 5: So perual hop scan, DU gish orinity what no, also you know that one.
Okay.
Can't you just don't know if you want no opinion shelf I forgot that.
Speaker 5: Group announced the result of a closed case on Thursday, soon it'll be released in the end of the year and it'll be the final outing for Aberystaurii , the first do aware of the coronavirus. This is the second motion to inform this year when the news will spread in most of the days and every group has the FamilySphere in which local Live happily will move, it will also work in the office to lead the expansion in a fair room and wishing it first to help Food Social World Gate with everyone.
And even that has ship only God you know for me. It sounds you know cycles to come out a 10 dollar tree up unless something happens almost triple yeah.
Hum.
You Shouldnt look at La Hershey alcohol capable digital Patricia Patricia England.
England.
I Hope you are lumping that Johnson, Dr. Jack Mintz, you shouldn't change out with only the bedroom.
If you go back.
So that gets you bundle that's the only check oceans actually helped launch a form yet.
Great session.
Speaker 5: I have two questions. The first is how is the pricing market and the company's business recovery in the third quarter? And what is outlook for the recovery trend afterwards? And the second question is, as offline activities return to normal, what are the company's plans of upgrades to offline activities? Thank you.
Oh, Oh Oh.
I have two questions. The first is how is the advertising market and the companys business to recover in the third quarter and what is your outlook for the recovery and afterwards and the second question is and offline activities return to normal what are the company's plans.
Great.
Activities. Thank you.
Yeah.
Speaker 4: Thank you, Dean. This is Lin. I will answer your first questions on idle hiding. We think that market recovered.
I think he was saying this is lane I will answer your first question. So I was hiding.
We think as the market recovers.
Speaker 4: the demand for advertising, as expected, is gradually increasing.
The demand for advertising is expected to gradually increase.
Speaker 4: And you know the growth of adolescents usually has the lagoon effect as the microeconomy is still in the early stage of recovery and If you look at
And I you know the growth of advertisements you already has the Oh I don't in fact as the macro economy is still in the early stage of recovery.
If you look at some statistics K R or a client pool of advertising, we have both a fake names they companies, including the fortune 500, as well as the giant off the Internet names and the big brands, but also all the other hand, we have.
Speaker 4: K.R. Our client pool of adobe hyping we have both
Speaker 4: big names, big companies including the Fortune 500 as well as the giant of the internet names and the big brands. But also on the other hand, we have mostly a lot of new economic lines and usually they are the meat to, you know, small to medium size.
Mostly a lot of new economy clients and they usually they are.
The meat to you know a small to medium sized companies, which they usually have a more cautious.
Speaker 4: companies which they usually have more cultures, advertising standing compared to these big names.
Advertising spending compared to those big names. If you look at our Q2 results actually our number of advertising customers, a decrease compared to a year ago, but our advertising a pool.
Speaker 4: If you look at our Q2 results, actually our number of advertising customers decrease compared to a year ago, but our advertising are poor, growth strongly compared to a year ago. So, that's not the advertising revenue is basically on par from a year ago. So that's the Q2 results. And if you are asking our Q3 outlook or the guidance for the rest of the year, we think because we already observed the recovery of the macro economy, and we think we have a...
Grow strongly compared to a year ago. So that's nuts.
I don't know hurting our revenue is basically on par from a year ago. So that's the key.
Q2 results and if you look at if you are asking our Q3 outlook our guidance for the rest of the year, we think because we already observed that recovery of the macro economy, and we think we have a optimistic view, although we might have a cautiously optimistic.
Speaker 4: optimistic view, although we might have cautiously optimistic view as you optimistic for the rest of the year. And we think our advertising will go back to the upward trend, meaning we will still achieve year-over-year growth for the next two quarters for 20th-wast. And hopefully that answers your question. Thank you.
Mr. Xie about still optimistic for the rest of the year and we thank all of our advertising will go back to the upward trend, meaning we will still achieve year over year growth for the next two quarters. Unfortunately this week.
And hopefully that answer your question. Thank you.
Oh, Oh Oh.
Speaker 3: International et a helps with?? pressure,iste But good wrist softly fast quickly
Oh, I'm, sorry for the Muslims with accountable Boston energy loss.
Oh, Hey, Joe how are you confident in your home and Oh, almost all the other ones, you're gonna toss, Ohio Saint Paul.
He goes on his share of all infusion side of things just awful like usually you Gotta go into Trimble and that you called I have here with me at all she saw it probably unless somebody you said you had to be absorbed and say Toby Daley, who don't have any thought on what that Sheila boarder Chico, calling you got it yeah. So as John will tell us, but I'm, telling you. They don't know what your telephone harder. So yeah I'll show you that was helpful.
So you don't know who she doesn't the geometry of the old one with and without telling people saw all the magic.
Absolutely Yeah Tuesday.
So you're going to see it I E.
He just told me, but don't get I don't know if I can kind of take it all in yes, you don't have to tell the truth.
Sure.
How do you get converted.
Okay truth I'm logos here that you've got a couple of quick ones actually sometimes even do you put on the table.
Yeah sure as you recall Tom Dolan.
I got that for sometime to come off the hiring that we have laid out.
Speaker 3: Thank you, Jing. Let me answer your second question. This year, we designed a long variety of offline events. We will please the within number of events we hosted as well as the visualization achievement, getting momentum on both fronts. In the meantime, with creative initiatives, through events like covering all new summit waves and other to see left-down festival city lab, we greatly enhanced the skill and influence of our offline events. Meanwhile, 30-
What are you seeing potential candidates either in terms of agenda, you'll do the holes all that she has put out.
You're going to be able to put them on that.
Speaker 2: Thank you, Dean. Let me answer your second question. This year we designed a large variety of offline events. We will please the within number of events we hosted as well as visualization achievement, gaining momentum on both fronts. In the meantime, with creative initiatives, through events like covering all new summit weeks, an effort to see left-down festival city lab, we greatly enhanced the skill and influence of our offline events.
Thank you Tim Let me answer your second question this year, where design and launch a variety of offline events. We were pleased there was a number of events, we hosted as well.
<unk> shipments gaining momentum on both fronts in the meantime, with creative initiatives three events like Oh, no wants to make waves and advocacy lifestyle Festival city lab will greatly enhance the scale and influence of our offline events.
Speaker 2: Meanwhile, 36 KR business pool programs were also in full swing. As we continue to enrich the content and format of the company courses offered through our venture capital class and the funding acceleration camp, we launched an all new degree based program in partnership with the University of Oxford, driving a vast increase in our pool to over R&D 42,000.
Meanwhile, 30 6K, our business school programs will also in full swing as we continue to enrich the content on the format of the call.
And of course, it all sorted through our venture capital class and the funding of saturation can we launched an all new degree days the program in partnership with the University of Florida, driving lots of inquiries.
<unk> to over RMB 42000.
Okay.
Thank you our next question please.
Speaker 1: Thank you, and our next question today will come from...
Thank you and our next question today will come from.
Speaker 1: Jai-jong Hong of Industrial Securities, please go ahead.
George on Hong of Industrial Securities. Please go ahead.
Speaker 3: Thank you,???, for your question. My question is, I just mentioned some AI and some AI applications. So I want to give you more interesting applications including the use of the content. For example, the AIGC's creation and some related products and the cooperation of the AIGAE and foreign products. I'll turn it on.
Oh gosh, yeah. Please I'm just told that she was the one piece should come down when do you think that she thought he said hey, I thought I'd do say you do quite well.
Seagull are going towards your cheese Asia U G. Paul Paul will now dig a neighborhood. They see all the ads you see that sounds or not so.
So I'm going to type your food the whole how youll go white food that she had Uh huh cool.
Or was that something you shop, the management just mentioned about the.
Speaker 3: The management adjustment about the business opportunity brought by AI. So I want, could you give us more color about more relevant plan about your AI internal use, product offering and cooperation with the AI enterprise? Thank you.
Isn't it a bit too that he bought by AI, So I want.
Could you give us more color about a more they loved by the plane a ball you were a I intend to use a part of the opening and cooperation with the AI into quite thank you.
Yeah.
Speaker 6: Thank you, Mr. Hong. I would like to answer your questions from three perspectives. First of all, as a media company, we have shown our sensitivity to new technologies. So, as a media company with the core of technology, we launched our own vertical media company, which is called Smart Limit, and we held the AI Digital Industry Summit in the last quarter.
Yeah.
Oh, sorry.
With all of that without even knowing what I mean.
And that's where you come out to you though.
Oh, no I mean honestly enrolled in diseases, where they don't want you guys to see them do it. So whether you go down there you go quicker in a minute.
The old Man, Oh man take hold and see the figure than if you're if you got to name it.
It does sound like you told in Japan alone.
Every time you go away how are you.
Speaker 6: On which important T the interest in part you not into? R you that important? Don't have a me. ppunity two is that once high want that the someant because PO unction the find when to trust you to ne to up with them you.
With you empathize you won't have agreed that the haynesville shouldn't bother her she's looking to make sure. We could do that I don't have to file and metallic alloys, you told him because he's always going through how do you want that.
Just asking your opinion in San Jose and well kind of deal with the Volvo polestar alignment around the hometown limiting Fannie when it's a drive thru challenge in the Gulf with L. T I D P J.
Speaker 6: This request was delivered by touching, ????elle or deformity caused by unlucky red light and wrong? ??????? either be good hair please please be evil
Yeah, Yeah, Yeah, I was talking about where you're kind of at home and in PMT Hall County, So I wouldn't expect anyway I just want to you because you're out there trying to end pool, because you've only sold half of it and that's eligible philosophy, if you've answered your bundle.
Oh sure.
He was up here with all of them because I do think sometimes also nickel town as well as usual thing maybe achievable Ah patient.
We come and talk to you who are trying to watching that.
And then one somehow I'm looking at I'm sure Tom would you do.
Are you finding it shouldn't I'm totally aligned with that.
How're you confirmed with them and see that go down to this particular training that you tell the truth times, all yeah, I mean I was about to Yamaha.
Speaker 2: Thank you, Jiajun. Let me answer your questions from three perspectives. First of all, we're proud of our consistent new ones understanding and foresight in terms of engineering-based AI technology. Besides launching our vertical sub-media, the emergency of intelligence.
Thank you it's Andrew let me answer the question from three perspectives first of all we're proud of our consistent and your understanding and foresight and comes off January 10th AI technology. Besides launching of a vertical stuff media. The emergency of intelligence. We also hosted other watch plenty chemistry AIG.
Speaker 2: We also hosted our White 2023 AIGZ summit in the second quarter. By continuously offering the latest development, special reports and in-depth interpretation of AI will have inspired the public with a steady stream of insights and stimulating ideas.
So late in the second quarter that continuously often relationship development, especially of course and in depth interpretation.
We'll have inspired the public with a steady stream of insights on the stimulation ideas.
Speaker 2: Secondly, we have been actively integrating Paneer-in-Generative AI into our day-to-day operations, including cooperating translation, keyword matching, image generation, and an intelligent customer service among other functions.
Second we have been actively in total 18 pioneering generative AI and time of day to day operations, including Copywriting translation keyword matching major generation and an intelligent customer stomach among other functions by reducing manual apples and student time and resources.
Speaker 2: By reducing manual apples and saving time and resources, AI effectively facilitates avocals reduction and efficient saving consumption. I'd like to point out that 36KR was the first ever industry pioneer in using AI technologies to create an e-commerce store on top of. Launching live stream sales sessions posted by Digital Humans and the wayward exclusive is featured on CCTV Ravens. Multiple follow-up initiatives.
Yeah effectively facility of a cost reduction on the efficiency and husband I'd like to point out that certain 6K out with our first ever industrial Panyard endorsing yeah technologies to create an e-commerce store on top of them launching live streaming sessions hosted by digital humans and nobody likes closer they face with.
On C C P language multiple follow up initiatives.
Speaker 2: In addition, we recently entered into a strategic cooperation with Baidu, joining hands in broadening AI applications across our media platforms, enterprises and training offerings, driving commercialization and innovation as we empowered the manual goal.
Yeah addition, we recently entered into a strategic cooperation with Baidu as Tony has improving yeah applications across our media platform onto press services and training offerings, driving commercialization and innovation as we empower the manual goes.
Speaker 2: Our teams are working closely on our diversified AI-powered landscape, holding content production, application marketplace showcasing applications powered by large language model, LLM solutions, LLM solutions, and training for one on AI-applications. Thank you, Jia-Jing.
Our teams are working closely unlike diversified AI powered landscape clothing content production application marketplace showcase them applications powered by a large language model al al functions.
Oh and solutions and training programs and applications.
Next question please.
Speaker 1: Our next question today will come from Lin Ye Zhao of SWS Research. Please go ahead.
Our next question today will come from Lindsay Chow of S. W. S Research. Please go ahead.
Speaker 5: I essentially could when it B like young Ho, was you on jolly to Gu ago. What is a tven way that was out here going you to actually being leven it woman two who got actually be here with them out each 't face on the Ho number. Do you take quite a year when whole U see buddha? uh.
Hey, essentially all caught up at any time in Baghdad Lecture Hall was shut off Orange Ali how do you guys see it go with just the T V.
Now what about Hugo boss, you'd like shipping them and teach a woman she should actually be here with some jobs. If you don't face on the how do you do quite well.
Well my whole XI Qi border pay towards sometimes yet niche.
Speaker 5: Try towards. On Jun at Le, your agree what world P on England the video business has been doing really well and whatever plan to further tap into this growp's potential she.
You only ship what you want.
Ah well financially England.
We do business has been doing really well and what's our plan to further tap into the schools potential she said.
Speaker 6: pol So here uractually, you want to have high, do know you 30 Cha don't have ban and Tal. What you want to do, phone for the gentle thousand. To that the qu super should be hard. Act from what he told, not make you. You have to put youpro coun, put you.
Oh yeah.
Oh I'm, sorry, if you won't play out how theyre, all talking about that and put it on hold with us.
Okay.
Unknown Executive: [inaudible] In the last video, we will talk about the benefits and benefits of our customers.
And when you do them forget about who you're talking to your China doesn't have shoveled onto as I'm talking to you.
He went out the door the home for the General counsel.
So we don't see telephone path towards that would be that the OEM question was chiba actually be hard on bringing inventory.
How does he taught himself forgive me if you can kind of put you, but what are you telling us up with you.
Speaker 6: All kind of show five me about Mr Shar you Com show people go to on here and so and then whe you go show down inte ity actually cal can and every you UN a couple do the Ro So so.
Well, Michael I can kind of cause you to start shipping those how often just went out and get into a lot of thought.
Great. It sounds youre tweaking all by Mr. Shaw, if you don't do that because there's always going to boil it down like that took hold in Gainesville, Florida.
Yeah sure Johnny you just put out.
Uh huh.
Whether you can put out.
Yeah, well look and how does he won't playing intelligently.
I should've been claimed in calls you shouldn't look ill talk to you and how do you go home vehicle.
So I'll just on shipping and tourism, so some of them.
Speaker 6: So to be your famis up, we can have a or don't be the intoall that crash.
Can be somebody that sometimes you can have.
Two MPD and told them fashion.
Speaker 2: Thank you, Lin Yi. First of all, we will continue to launch the diversified content offerings and further expand our to-see products. At present, our short video land-up covers diverse topics, including technological innovation, business insights and lifestyle, delighting users with a variety of content.
Thank you only need first of all we will continue to launch diversified content offerings and further expand other to see products are present I'm a shot video lineup covers diverse topics foodie technological innovation isn't it.
Lifestyle diligently users with a variety of health content okay.
Speaker 2: In addition, multi-channel content distribution means OK-focused.
In addition, multi channel content distribution demand, Okay focus slash. Yeah addition to a posting on short visual media platforms, including Beanie BD, Inc. Quite show social graph and the way they do okay.
Speaker 2: In addition to posting on short video media platforms, including Billy Billy, Douyin,??, Xiao Hong Shu, Ji Gua and the Way Chat Video account.
Speaker 2: We also actively extended our reach across social media platforms.
We also actively expanded our reach across social media platforms, we have.
Speaker 2: We are pleased to see the number of our short video followers pass 8.3 million, up 42% year-over-year, among which more than 2 million were Bilibili users.
We're pleased to see the number of our short video followers surpassed eight 3 million up 42% year over year, among which more than two medium where BD beta users.
Speaker 2: regarding our commercial population for creative marketing, we found additional customers from a wide array of industries. Grimneyo from this segment doubled year over year, accounting for more than 20% of our total advertising rep. Thanks again.
Regarding our commercial preparations will create a brand marketing we signed additional customers from a wide array of industries revenue from this segment doubled year over year accounting for more than 20% of our total advertising revenue.
Thanks again next question please.
Speaker 1: Our next question today will come from Rue Cree Lou of Sealand Securities. Please go ahead.
Our next question today will come from her Cui Lou of Sealants Securities. Please go ahead.
Macquarie Your line is open.
Speaker 5: That way to echogoing, not goinging, know a half our again. Sure your inteers something many. When you lear, open you to a moleu also ush to that will be Thank, are you? How did the company achieve a rebound in gross traffic margin this?
And Lee echoing.
Equally not going up at all.
I'll watch it actually doesn't change or something is that one.
Do you think you'd do a money deals so of course I don't know for sure.
Missing Wei: [inaudible] With that, I will now turn the call over to our CEO, Miss Lin Wei, who will discuss our key financial results before I ask you. Thank you, Paul.
That's what all of it so how long do you think that IMO or how did the company achieved a rebound in gross profit margin this quarter.
Speaker 4: Thank you, Ray T. This is Lynn. I will take your questions regarding growth profit margin. I think the rebound is mainly at your level to our seasonality of our business nature as well as the economy of scale. We have mentioned several times our previous cause that our cost structure is largely fixed.
Oh. Thank you already Chi this is lane I will take your questions regarding growth. Our gross profit margin I think the rebound is mainly attributable to our seasonality of our business in Asia as well as the.
Economy of scale, we have mentioned several times on previous calls that's all you know our cost structure is largely a fixed that means one our revenues grow.
Speaker 4: That means when our revenues grow there is not such a linear, you know, relationship between our revenue growth and a cost growth
Such a linear relationship between revenue growth and cost growth.
Speaker 4: So if you look at our Q2 revenues, our sequential revenue growth was almost 52%, that's a very big jump. But if you look at our cost, actually our cost only grew by 5%, that's a very obvious economy of scale. So that's basically the, you know, the vanity and the economy of scale contributed to the sequential, strong rebound of our GP margin.
So if you look at our Q2 revenues our sequential revenue growth was almost 52% that's a very big jump, but if you look at all our costs actually all costs only grow by 5%. That's a very obvious economy of scale. So that's the basic basically the.
You know, there's a lot of T and the economy of scale country due to the sequential a strong rebound of our GP margin.
Speaker 4: And also, in Q1, we started off several new content initiatives. For example, we launched our first long-form video program called Forc casting for C-ing 2033. That's long-form video we...
Also we are in Q1, we started off several new content initiatives. For example, we launched our first long form video program called for forecasting are foreseeing 'twenty, sorry suite, that's a law firm.
Missing Wei: Now, I'd like to work you through more details of our second quarter 2023 financial results. Please note all amount numbers in R&B, and likewise stated, total revenues increased by 3% to 84.4 million in the second quarter of 2023 up from 81.7 million in the same period of last year. Online advertising services revenues were 57 million in the second quarter 2023, compared to 57.8 million in the same period of last year. The slight year-over-year decrease was primary, attributable to the liking effect of the micro economy, which is due in the early stage of recovery.
Speaker 4: you know, started to produce in the beginning of the year. So in Q1, we basically haven't started off the commercialization, but in Q2, this program have been very well received by both the audiences and also the, you know, all advertising customers. So in Q2, we have achieved revenue to cover the cost, production cost of this.
You know chocolate to produce in the beginning of the year. So in Q1, we basically haven't started I'll speak commercialization, but in Q2 of this program have been very well received by both the audiences and also be a you know all advertising customer. So in Q2, we have achieved revenue.
<unk> to cover the cost production cost of this program and actually have more than covered the cost of this program. So that's why our that's another reason contributing to all our P. T Mountain girls and looking ahead, we think our G. T module will be able to maintain that high level of 55.
Speaker 4: program and actually more than cover the cost of this program. So that's why that's another reason contributing to our PT management growth.
Missing Wei: Enterprise value added services and revenues increased by 17% to 16.8 million in the second quarter of 2023, as we continuously devolved various pro-active enterprise-level services for our customers. Our offline events business achieved no total growth during the quarter, as they re-opening continues and we hosted several successful conferences and summits. Subscription services is revenue increased by 11% to 10.6 million in the second quarter of 2023, compared to 9.5 million in the same period of last year.
Speaker 4: And looking ahead, we think our GT margin will be able to maintain at a high level of 55 percent or even between 55 percent to 60 percent because as we said, we believe our advertising revenue will continue to grow and advertising revenue is a relatively high margin business. And our enterprise value-added services as well as our training business will also grow that will contribute to a higher revenue and hence contribute to higher growth profit and GDP margin.
I don't even between 65% to 60% because you know as we said we believe our advertising revenue.
Revenue will continue to grow and advertising revenue is a relatively high margin business and our you know our enterprise video as.
It is as long as all the cleaning.
Business will also grow that will it'll.
Missing Wei: The increase was primarily attributable to our continuous efforts to offer high-quality subscription products to our subscribers. Cost of revenues was 37.6 million in the second quarter of 2023, compared to 30.8 million in the same period of last year. The increase was primarily attributable to higher fulfillment costs and content costs. Growth profit was 46.7 million in the second quarter of 2023, compared to 30.9 million in the same period of last year. Growth profit margin was 65% in the second quarter of 2023, compared to 42% in the previous quarter and 62% in the same period of last year.
Contribute to a higher revenue and has contributed to higher gross profit on the GP margin.
Speaker 4: All this answers your question, Richie. Thank you.
This also to a classroom ritchie thank you.
Thank you.
Yes.
Speaker 1: As there are no further questions, I'd like to now turn the call back over to the company for closing remarks.
As there are no further questions I'd like to now I'll turn the call back over to the company for closing remarks.
Speaker 2: Thank you once again for joining us today. If you have further questions, feel free to contact so this is KR Investor Relations through the content information provided on our website or the PSNT group Investor Relations.
Thank you once again for joining us today, if you'll have follow up questions feel free to contact. So this is K R investor relations through the contact information provided on our website or the Piacente group Investor Relations.
Thank you.
Missing Wei: As we forecasted on our Q1 and its call, our GP margins rebounded strongly as expected and were back to the above 55% level. On year-over-year basis, the flat decrease was primarily attributable to the resumption of offline events and offline tuning courses which usually occur higher costs. Operating expenses were 65.1 million in the second quarter of 2023, slightly increasing by 1% compared to 64.6 million in the same period of last year. Sales and marketing expenses were 33.9 million in the second quarter of 2023, an increase of 24% from 27.4 million in the same period of last year.
Speaker 1: This concludes the conference call. You may now disconnect your line. Thanks.
This concludes the conference call you May now disconnect. Your line. Thank you.
Yeah.
Okay.
[music].
Okay.
Okay.
Missing Wei: This was primarily attributable to the increase in payroll related expenses and business travel related expenses. G&A expenses were 17.7 million in the second quarter of 2023, a 26% decrease compared to 23.8 million in the same period of last year. The decrease was primarily actual vote to the decrease in payroll related expenses, share based compensation expenses, professional fees, and allowance for credit losses. Research and development expenses were 13.6 million in a second quarter of 2023, slightly increasing from 13.4 million in the same period of last year.
Okay.
[music].
Okay.
Yes.
Okay.
[music].
Okay.
Okay.
[music].
Okay.
Yeah.
Missing Wei: This was primarily actual vote to the increase in payroll related expenses, as well as bandwidth and silver expenses, gradually offsite by the decrease in share based compensation expenses. Share based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses, as well as G&A expenses totaled 1.8 million in a second quarter of 2023, compared to 2.6 million in the same period of last year. Other income was 4.8 million in a second quarter of 2023, compared to 2.7 million in the same period of last year.
Missing Wei: The decrease was primary because the company recognized approximately 18.5 million of investment income, arriving from fair value change of long term investments in the second quarter of last year. Net loss was 13.7 million in the second quarter of 2023, compared to net income of 9 million in the same period of last year. Nangab adjusting net loss was 11.9 million in the second quarter of 2023, compared to Nangab adjusting net income of 11.6 million in the same period of last year.
Missing Wei: Nangab actually got a vote to 36 kr's ultimate shareholders with 13.9 million in the second quarter of 2023, compared to net income attributable to 36 kr's ultimate shareholders of 8 million in the same period of last year. Basic and diluted net loss for ADS are both 33.5 cents in the second quarter of 2023, compared to basic and diluted net income for ADS of 19.5 cents in the same equivalent restricted cash and short term investments of 136.5 million compared to 169.8 million as of March 31, 2023. The decrease was mainly attributable to net cash offload from operating activities which include approximately 10 million cash payments related to the company's move of its headquarters to a lower rental office building in Beijing.
Unknown Executive: This concludes all of our pleasure remarks today. We will now open the call to a question. Operator, please go ahead. Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are on a speaker phone, please pick up the handset to ask your question. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.
Unknown Executive: Our first question today will come from Jingtang of CICC. Please go ahead.
Lingyi Zhao: Hello, my name is Lingyi Zhao, and this is my question. I also want to ask two questions. The first question is about advertising. [inaudible] I have two questions. The first is about advertising marketing and the company's business recovery in the third quarter and what is outlook for the recovery trend afterwards. And the second question is, is offline activities returning normal? What are the company's plans of upgrades to offline activities? Thank you. Thank you, Qing. This is Ling.
Dagang Feng: I will answer your first questions on advertising. We think at the market recovers the demand for advertising as expected is gradually increase. And, you know, the growth of advertisements usually has the lagoon effect as the micro economy is still in the early stage of recovery. And, if you look at 166kr, our client pool of advertising, we have both big names, big companies, including the Fortune 500 as well as the giant of the internet names and the big brands.
Dagang Feng: But, also, on the other hand, we have mostly a lot of new economic clients. And, usually, they are the meat to, you know, small to medium sized companies, which they usually have more cautious advertising spending compared to these big names. If you look at our Q2 results, actually, our number of advertising customers decrease compared to a year ago but our advertising pool grows strongly compared to a year ago. So, the advertising revenue is basically on par from a year ago.
Dagang Feng: So, that's the Q2 results. And, if you are asking our Q3 outlook or the guidance for the rest of the year, we think because we already observed the recovery of the micro economy, and we think we have optimistic view, although we might have cautiously optimistic view, but still optimistic for the rest of the year. And, we think our advertising will go back to the upward trend, meaning we will still achieve year-over-year growth for the next two quarters for a 20th wave. And, hopefully, that answers your question. Thank you.
Unknown Executive: Meanwhile, 36kr business pool programs were also in full swing, as we continue to engage the content and format of the company courses offered through our venture capital class and funding acceleration camp, we launched an all-new degree based program in partnership with the University of Oxford, driving a vast increase in our pool to over R&D 42,000. Thank you, next question, please.
Unknown Executive: Thank you, and our next question today will come from Jiajun Hong of Industrial Securities. Please go ahead. Thank you,管理层, for your question.
Unknown Executive: My question is that the管理层 just mentioned some AI, and some of the applications, so I would like to ask more detailed applications, including the use of the content, such as AIGC's creation, and some related products, and also the cooperation of the AI company. [inaudible] Huang, thank you,[inaudible] Secondly, we have been actively interacting pioneering Gen. AI in our day-to-day operations, including cooperating translation, keyword matching, image generation, and an intelligent customer service, among other functions. By reducing manual apples and saving time and resources, AI effectively facilitates our cost reduction and efficiency in customers.
Unknown Executive: I'd like to point out that 36kr was the first ever industry pioneer in using AI technologies to create an e-commerce store on top of, launching live-stream sales sessions hosted by digital humans, and a wayward exclusive wave-facered on CCP-wave with multiple follow-up initiatives. In addition, we recently entered into a strategic cooperation with Baidu, joining hands in broadening AI applications across our media platforms, enterprises, and training offerings, driving commercialization and innovation as we have powered manual goals. Our teams are working closely on our diversified AI-powered landscape, holding content production, application marketplace, showcasing applications powered by large language model, LLM functions, LLM solutions, and training for funds on AI applications. Thank you, Jiajin.
Unknown Executive: Next question, please.
Unknown Executive: Our next question. Today, welcome from Lin Yi Jia of SWS Research. Please go ahead. [inaudible] including technological innovation, business insights and lifestyle, delighting users with a variety of content options. In addition, multi-channel content distribution remains a key focus for us. In addition to posting on short video media platforms, including Billy Billy, Douyin, Quai Shu, Xiao Hong Shu, Ji Gua, and Wei Chai video account, we also actively expanded our reach across social media platforms, where please see the number of our short video followers, past 8.3 million, up 42 percent year among which more than two million were Billy Billy. [inaudible] so so so so so[inaudible] Thank you. Thank you.
Unknown Executive: As there are no further questions, I'd like to now turn the call back over to the company for closing remarks. Thank you once again for joining us today. If you have further questions, feel free to contact so this is KR Investor Relations through the content information provided on our website or the PSNT Group Investor Relations. Thank you. This concludes the conference call. You may now disconnect your line. Thank you.