Q1 2024 DouYu International Holdings Ltd Earnings Call

June 5, 2024

Speaker Change: [music].

Ladies and gentlemen.

Good morning.

And good evening.

Operator: Thank you and welcome to Douyu Intl Hldg Limited's 1st Quarter 2024 Earnings Conference Call. At this time, all participants are in the listen-only mode. We will be hosting a question and answer session after the management's prepared remarks. I will now turn the call over to the first speaker today, Ms. Lingling Kong, IR Director at Douyu. Please go ahead, Ms. Kong.

Don You: Thank you and welcome to Don You International Holdings Limited first quarter 2024 earnings Conference call.

Speaker Change: At this time.

Speaker Change: All participants are in a listen only mode.

Speaker Change: We will be hosting a question and answer session. After the management's prepared remarks.

Speaker Change: I will now turn the call or what to the first speaker today.

Linden: Linden call IR director at Dow you.

Linden Call: Please go ahead ma'am.

Lingling Kong: Thank you. Hello everyone.

Speaker Change: Thank you Hello, everyone welcome to our fourth quarter of 'twenty 'twenty four earnings call joining us today and make Jim Mimi to Chief strategy Officer, Mr. Hao Cao last question, all Sundance and meets the main game last question.

Lingling Kong: Welcome to our fourth quarter 2024 earnings call. Joining us today are Mr. Mingming Su, Chief Strategy Officer, Mr. Hao Cao, Vice President of Finance, and Ms. Simin Ren, Vice President from the Interim Management Committee. You can refer to our fourth quarter 2024 financial results on our IR website at ir.douyu.com. You can also check a replay of this call when it becomes available in a few hours on our IR website.

Speaker Change: Some interim natural answer maybe.

Speaker Change: You can refer to our fourth quarter of 'twenty 'twenty four for natural Readouts on our IR website at IR adult though you don't call. You can also check a replay of this call when it becomes available in a few hours on our IR website.

Lingling Kong: Before we start, please note that this column contains forward-looking statements made pursuant to the Safe Harbor Provision for the Private Security Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause the actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations implied by these forward-looking statements.

Speaker Change: Before we start pace and know that this call may contain forward looking statements made pursuant to the safe Harbor provisions for the private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's colleagues by patients and observations that involve known and I.

Speaker Change: Risks uncertainties and other factors not under the company's control, which may cause actual results performance or achievements of the company to be materially different from the results performance or expectations implied by these forward looking statements.

Lingling Kong: All forward-looking statements are expressly qualified in their entirety by the cautionary statement, risk factors, and details of the company's filing with the SEC. The company undertakes no duty to revise or update any forward-looking statements for selected events or circumstances after the date of this conference call.

Speaker Change: All forward looking statements I extract a quantified it in their entirety by the cautionary statements risk factors and details of the company's filing with the SEC.

Speaker Change: Company undertakes no duty to revise or update any forward looking statements for selected events or circumstances. After the date of this conference call.

Lingling Kong: I will now speak on behalf of our Inter-Management Committee on Business Update, and the call will be handed over to our Vice President of Finance, Mr. Hao Cao, for financial discussion. We are presented with another period of challenging market conditions. In the fourth quarter, we focused on leveraging our company's key strengths and improving our revenue structure by strengthening our cooperation with game developers. At the same time, we bolstered our streamlined operation by optimizing our organizational structure and user strategy.

Speaker Change: I will now speak on behalf of all of our interim management Committee and business updates and the call will be handed over to our last question and I'll start Mr. Hao Cao will send national discretion.

Speaker Change: Yes.

Hao Cao: Present with another period of challenging market conditions in the fourth quarter. We are focused on leveraging our company's key strengths and improving our revenue structure by strengthening our cooperation with game developers.

Speaker Change: At the same time with voice search.

Speaker Change: A streamlined operation by optimizing our organization structure and the use of strategy.

Lingling Kong: As always, we remain committed to fostering a healthy, vibrant, game-centric content ecosystem. Throughout the period, we diligently enhanced the compliance standards and practices across the platform, meeting our co-users' needs by providing them with more premium content, enriching the gaming services, and improving the user experience. With that overview, I'd like to review some details of our business operations during the quarter. In the fourth quarter of 2024, our mobile MAUs were 45.3 million, a decrease of 9.7% year-over-year.

Speaker Change: As always we remain committed to fostering a healthy library games and paid content ecosystem.

Speaker Change: So we're out with the Pea Ridge, we diligently hence come high standards and practices across the platform.

Meeting our users'.

Needs by providing them with more premium content.

Speaker Change: The gaming services and improve the user experiences.

Speaker Change: With that overview.

Speaker Change: I'd like to review some details of our business operations during the quarter.

In the fourth quarter of 'twenty 'twenty four hour mobile I may use were $45 3 million.

Speaker Change: Decrease of nine 7% year over year.

Lingling Kong: This was in line with our operating strategies and expectations for the year. The MAU decline was primarily due to competition from short video platforms. However, a deep dive into user viewing behavior and payment patterns revealed that user attrition was predominantly from low-engagement users with relatively short viewing hours. These users exhibit minimal platform loyalty and frequently switch platforms; their payment habits are subpar, so the MAO decline did not significantly affect our platform's overall monetization efficiency.

Speaker Change: This was in line with our operating strategies and expectations for the year.

Speaker Change: The Mou decline was primarily due to competition from short video pass law.

Speaker Change: However, a deep dive into user viewing behavior and payment patterns.

Speaker Change: We use that use the attrition was predominantly from low engagement users with reality like shop waiting hours.

Speaker Change: You do exhibit minimal platform loyalty infrequently switch platforms.

Speaker Change: Their payment habits are stopped bar. So the email decline did not significantly affect our platforms are all monetization efficiency.

Lingling Kong: Moreover, our gaming commercialization ventures continued to attract fresh users and re-engage previous users. This partially offset the decline in mobile MAUs and led to a higher payment conversion rate of targeted gaming traffic brought in by our attractive gaming service. This quarter, we broadcast nearly 30 large-scale official tournaments, including the spring tournaments of LPL, KPL, and CFPL and the CS Go Copenhagen major, among others. Through refined gaming event content operations and deeper collaboration with game developers on traffic and commercialization, we have increased the appeal of official gaming event content and boosted the ROI of copyrighted content.

Moreover, our gaming commercialization ventures continued to Julien Sac music and re engaged crew base to use it.

Speaker Change: This partially offset the decline in mobile and they use and matched to a high of payment conversion rate of targeted gaining traffic joining by our attractive gaming services.

Speaker Change: This quarter, we bought costed nearly 30 large scale official tournaments, including the screens Parliament of L. P. L. K P. L. M C F P L.

Speaker Change: And did they see a skull cobalt Hagen major among others.

Speaker Change: We will refine the gaming in bench content operation and deeper cooperation with game developers on traffic and the commercialization. We have increased the appeal of official gaming event content and booth teach the al I often copyrighted content.

Lingling Kong: For example, in the crossfire gaming segment, our advantages include top-tier gaming streamers, partnerships with high-ranking CF teams, and years of premium content accumulation, which has attracted a sizable user network. These assets empower us to carry out ongoing collaborative initiatives and explore projects with game developers.

Speaker Change: For example in a cross fire gaming segment. Our advantages include top tier gaming streamers partnerships with high ranking C. F team and he is off premium content accumulation wage.

Speaker Change: Wage have attracted a sizable user now work.

Speaker Change: This offsets empower us to carry out ongoing collaborative initiatives and explore projects with game developers.

Lingling Kong: For instance, this year, we began promoting in-game props through live-streamed events on official gaming channels and our live streamers' corresponding commentary sessions, leveraging the GamePro resources shared by game developers and targeting the preferences of our platform gaming users. This initiative effectively elevated user engagement across the gaming ecosystem. Gaming event content and game props fulfilled gamers' needs, enhancing the user experience, while new prop acquisition boosted gaming activity, improving gaming engagement as the central hub for content operations.

Speaker Change: For instance, this year, we began promoting in game pop through life's dream invent official gaming channels and our lives most corresponding commentary sessions.

Leveraging the game talk resources shared by game developers and the targeting the poor for instance off our platform gaming users is this initiative in fact, he really alleyways user engagement of course, the gaming ecosystem.

Speaker Change: Gaming in rent change and Gamecock foresees game S mi enhancing user experience.

Speaker Change: Well, new pulp acquisition boosted gaming activity improving gaming engagement.

Speaker Change: As the central hub for content operations innovative operational strategies like this nutrisystem and development, well, increasing user engagement and stickiness.

Lingling Kong: Innovative operational strategies like this nurture streamline development while increasing user engagement and stickiness, strategically leveraging our strengths to cultivate a neutrally beneficial gaming ecosystem. Regarding self-produced content, we produced over 40 esports tournaments during the quarter. To maximize the benefits of this event, we have been exploring reciprocal content sharing collaborations with our partners. Up first for Douyu, these agreements allow us and our partners to tap into each other's high-quality streamer assets under fair and equitable terms.

Speaker Change: Strategy call elaborating, our skin, so qt wage and mutually beneficial gaming ecosystem.

Speaker Change: Adding self produced content, we produced over 40 esports tournaments during the quarter.

Speaker Change: To maximize the benefits of this event, we have been exploring reciprocal content sharing collaborations with our partners of course for.

Speaker Change: These agreements allow us and our partners to tap into each other's high quality stream of assets under fair and equitable terms.

Lingling Kong: In the fourth quarter of 2024, we launched an array of cross-platform collaborative initiatives covering various game segments like League of Legends, Honor of Kings, Peacekeeper Elite, Teamfight Tactics, etc. In addition, we actively broadened our portfolio of collaborative tournaments. During the quarter, we teamed up with Taobao to curate appealing content in the Valorant segment, hosting Valorant challenges exclusively streamed on Taobao and Douyu. Another highlight was our signature self-produced event, Valorant Cups, which has been staged for three consecutive series. It's a good example.

In the fourth quarter of 2024, we launched our ARY off cross platform collaborative initiative, having various game segments like league of legends almost kings Peacekeeper elite team five tactics et cetera.

Speaker Change: In addition, we actively board into our portfolio of collateral kids hard on them.

During the quarter, we teamed up with Taobao.

Speaker Change: Two curate it's appealing content in the vibrant segment husky valuing challenges exclusively stream and how 'bout I'm don't use.

Another highlight was our stickney chose self produce invent water and coffee.

Speaker Change: We have been stage four three comes back with your theory is a good example.

Lingling Kong: We recruited teams from streamers across different platforms and directly invited the top two teams to the Valorant National Championship. These collaborative content initiatives and related promotional campaigns were designed and executed by effectively leveraging the strengths of our DeepStream resources and large Valorant user base. In terms of streamer management, we integrated our streamer genes with those of our platform to enhance synergy and create upsides. First off, based on our streamers' standout characteristics and their fans' preferences, we crafted engaging content initiatives highlighting top-tier streamers' distinctive personal brands and intellectual property.

Speaker Change: But you were quoted teams from streamers of course different platforms and directly in why did the top two teams to the rather than the National Championship.

Speaker Change: This collaborative content initiative and the related promotional campaigns well designed and executed by in fact, he was elaborating can also have a deep stream of resources and a large user base.

Speaker Change: In terms of streamer management with integrating our GMI Jen with those of our path for them to enhance synergy and Kuwait upsides.

Speaker Change: First off based on our swim I stand out characteristics and their fans porphyrins. This with crafted engaging content initiative, highlighting pop kids spend my 15th imports and no brand and IP.

Lingling Kong: This included co-streamed live commentary for official gaming events, esports fun challenges sponsored by streamers, and much more. Additionally, we recreated and promoted content highlighting our streamers' unique appeal outside of Douyu's ecosystem. By sharing and managing content on streamers' personal social media accounts, we help them gain more exposure while attracting more users to Douyu to watch their captivating content.

Speaker Change: This included co streamed live commentary for facial gaming, England.

Speaker Change: E Sports find challenge challenges the bounds of advice dreamers and much more.

Additionally, we recreated and promoting content highlighting the most unique appeal outside auto ecosystem.

Speaker Change: By sharing and managing content, Austria, most personal social media can we help them get more exposure well attracting more users to go use to watch their Kathy waiting content.

Lingling Kong: In terms of streamer-based commercialization, we ramped up our game promotions as more new games were launched, gradually extending our reach from top-tier streamers to niche streamers within specific verticals. According to data analysis, our conversion rates from game promotions outperformed market averages. This creates additional income for streamers beyond base compensation and live-streaming virtual gifting while further optimizing the company's revenue structure. Now, let's turn to our monetization. Our total number of paying users in the fourth quarter was 3.4 million, with a quarterly ARPU of RMB238.

Speaker Change: In terms of Sumer base commercialization, we ramped up our game promotion.

As more new games launched gradually extending our reach from top tier streamers to niche stream or within specific verticals.

Speaker Change: According to data analysis, our conversion rate from game promotions outperformed market averages.

Speaker Change: This creates additional income for streamer beyond base compensation and live streaming virtual gifting, while further optimizing the company's revenue structure.

Speaker Change: Let's turn to our monetization.

Speaker Change: Total number all paying users in the fourth quarter was $3 4 million with of course, all of our pool of RMB 238.

Lingling Kong: The year-over-year decrease in pain users was primarily caused by challenging macroeconomic conditions and a seasonal reduction in operational activities. Given subdued consumer sentiment during the quarter, we offered some modestly priced revenue-generating products to maintain our user spending habits. As a result, our quarterly output declined year over year.

Speaker Change: The year over year decrease in paying users was primarily caused by challenging macroeconomic conditions and a seasonal reduction in operational activities.

Speaker Change: Gave us subdued consumer sentiment during the quarter, we offered some modestly priced revenue generating products to maintain our you their spending habits.

Speaker Change: As a result, our quarterly op, who declined year over year.

Lingling Kong: Through the exploration of commercial diversification pathways over the past year, we have pinpointed two effective strategies centered on game prop sales, in collaboration with Game Developers. The fourth strategy taps into Douyu's dedicated community of hardcore gamers and their interests. We serve as a commercial channel for game developers themselves, promoting their game corps through streamers, content creation, and operational activities; viewers can easily navigate to game developers' offerings and make purchases with a single click on the available links during live stream sessions on our platform.

Speaker Change: Do deep exploration of commercial commercial diversification pathway over the past year, we how pinpointed shoe in fact people strategies centered on gamecocks cells in collaboration with game developers.

Speaker Change: The fourth strategy taps into though you Danny Cade community of hardcore gamers and the inkjet.

Speaker Change: We serve as a commercial channel for game developers itself.

Speaker Change: Noting their game clubs, so streamers content creation and operational activities.

Speaker Change: Viewers can easily navigate into game developers offering and make purchases with a single click onto available links doing last James sessions on our platform.

Lingling Kong: This partnership model serves as the cornerstone of our joint commercialization with game developers. By promoting GamePro, we empower game developers to diversify their revenue streams while also driving increased traffic to our platform and optimizing our traffic monetization in sessions. Our second strategy ties gaming membership to our game port; users who purchase a gaming membership in our platform's gaming segment receive loyalty points and can earn additional points by completing platform-based tasks. These points can be redeemed for GameCorps and exclusive platform benefits during selected live streaming sessions.

Speaker Change: This partnership model serves as the cornerstone of our joint commercialization with game developers.

Speaker Change: By promoting Gamecocks, we empower game developers to diversify their revenue streams, while also driving increased traffic to our platform.

Speaker Change: And optimizing our traffic money.

Speaker Change: Monetization session.

Speaker Change: Our second strategy highest gaming memberships to our game for.

Speaker Change: Users, who purchase a game gaming memberships in our platforms gaming segments receive loyalty points and cover additional points by completing platform based tuck.

This points can be redeemed for gamestop and exclusive platform benefits during selected live gaming sessions.

Lingling Kong: Compared with the first strategy, this model's product design is more closely aligned with our streamers' characteristics and users' needs, fostering deeper and more enduring collaborations with game developers. Moreover, both of these mainstream collaboration models cater to gamers' preferences and bolster user engagement on Douyu, underscoring Douyu's value as a pivotal game-centric community ecosystem. We have currently established collaborations with game developers on over 10 games. Moving forward, we aim to broaden our collaboration with more game developers, diversifying and advancing game pop commercialization avenues tailored to different game genres.

Speaker Change: Compared with the first strategy is this modest product design is more closely aligned with honest to goodness characteristics and users' needs.

Speaker Change: What's doing deeper and more enduring collaboration with game developers.

Speaker Change: Well or both of these mainstream collaboration models.

Speaker Change: Keto to gamers preferences and bonds to user engagement on go.

Speaker Change: Underscoring those value as the baby tote game centric community ecosystem.

Speaker Change: We have currently established collaborations with game developers in overtime games.

Speaker Change: Moving forward, we aim to board in our collaborations with more game developers and diversifying and advancing gamecock commercialization avenues tailored to different game genres.

Lingling Kong: Moving on to Technology R&D, we upgraded Douyu's in-app content categorization in late March, adding a tournament category within the content recommendation subcolumn. This addition effectively consolidates gaming event content from top gaming segments, including annual esports event calendars, gaming schedules, match replays, player ratings, and more. We designed the upgrade based on user behavior analysis, spotlighting top-tier gaming events and specialized content to bring more convenience to avid gamers while increasing average viewing hours across the platform.

Speaker Change: Moving on to technology R&D.

We upgraded though used in app content categorization in late March.

Speaker Change: Adding a tournaments category, we've seen the content recommendation sub column.

Speaker Change: This addition is that.

Speaker Change: Q&A consolidates gaming, England content from top gaming segments.

Speaker Change: Including our new esports events calendar gaming schedules much replace player ratings and more.

Speaker Change: We designed the upgrades based on user behavior analysis.

Speaker Change: Both lighting pop kids gaming, England specialized content.

To bring more convenience to Abbvie Gamer.

Speaker Change: Increasing outraging boom ours of course of half one.

Lingling Kong: In summary, the business adjustments we made in the fourth quarter in response to evolving market dynamics are showing encouraging results. Meanwhile, we continue to foster a healthy and dynamic community of users and streamers within our gaming-centric ecosystem. We will also sharpen our focus on capitalizing on the platform's cost-gen and further refining our resource allocation to optimize our revenue structure. Through ongoing innovation and iterations of products, features, and operating models, we will propel the company's long-term sustainable growth. With that, I will now turn the call over to our Vice President of Finance, Mr. Hao Cao, to go through the details of our financial performance in the quarter.

Speaker Change: In summary, the business adjustments, we made in the fourth quarter in response to evolving market dynamics are showing encouraging results.

Speaker Change: We continue to foster a healthy and a dynamic community of users and jammers within our gaming centric ecosystem.

Speaker Change: We will also sharpen our focus on.

Capitalizing on their platforms co strengths and further refining our resource allocation to optimize our revenue structure.

Speaker Change: Through ongoing innovation and inspiration all Florida feature and all creating models.

We will propel the company's long term sustainable growth.

Speaker Change: With that I will now turn the call over to our Vice President Finance Mr House how.

Mr House: To go through the details all of our financial performance in the quarter.

Mr House: Thank you Linda and Hello, everyone.

Hao Cao: Thank you, Lingling. Hello, everyone, while we continue to face challenges from both macroeconomic trends and industry dynamics. We are focused on executing our long-term sustainable growth strategy, and during this period, we will continue to diversify and strengthen our revenue mix. Revenues from our innovative businesses continue to grow on a sequential quarter basis while we further streamline our operations and maintain our overall solid financial position. Now, let's look at our financial performance for the first quarter in more detail.

Speaker Change: While we continue to face challenges from both macroeconomic trends and the evolving industry dynamics.

Mr House: We are focused on executing our long term.

Mr House: And above growth strategy.

During the period, we continue.

Scott: Scott and strengthen.

Revenue mix.

Speaker Change: Revenues from innovative businesses continue to grow.

Rachel: Rachel caught up basis.

Speaker Change: While we further streamlined our operations and maintain a solid financial position.

Hao Cao: Our total net revenues decreased by 29.9% year-over-year in the first quarter to RMB 1.04 billion. Live streaming revenues were on B, 0.8 billion, down 41.5% from RMB 1.37 billion in the same period of 2023. Livestream revenues were primarily impacted by soft macroeconomic conditions and an unplanned reduction in revenue-generating promotions during the seasonally low first quarter. These factors notably affected some new and price-sensitive paying users' spending, leading to a year-over-year decrease in total paying users to address soft consumer sentiment. We strategically maintain low-priced revenue product offerings to support stable spending habits among our existing paying users.

No.

Speaker Change: Let's look at our financial performance for the first quarter in more detail.

Speaker Change: Our total net revenues decreased by 29, 9% year over year in the first quarter to RMB, one point off data.

Speaker Change: Live streaming revenues were on B 0.8 data.

Speaker Change: 41, 5% from RMB 137 billion in the same period.

Speaker Change: <unk>.

Speaker Change: Live streaming revenues were primarily impacted by soft macroeconomic conditions at our planned reduction in revenue generating promotions.

Speaker Change: The seasonally slow first quarter.

Speaker Change: These factors, notably affected someone new on a price sensitive paying user spending.

Speaker Change: Late in the year over year decrease in total paying users.

Speaker Change: The address to soft consumer sentiment.

Speaker Change: We strategically maintain lower priced revenue product offerings to support their spending habits.

Speaker Change: How existing paying users.

Hao Cao: While our approach was effective in this regard, it also impacted our quarterly earnings, which declined by 24.2% to RMB238 from RMB314 in the same period last year. Conversely, advertising and other revenues increased significantly in the first quarter by 109.3% to RMB 238.8 million, up from RMB 114.1 million in the same period last year. The year-over-year increase was primarily driven by an increase in other revenues generated through other innovative businesses, such as our voice-based social networking service.

While all approach what's effective in this regard.

Speaker Change: It also impacted.

Speaker Change: Impacted our quarterly all which declined by 24, 2% to RMB 230.

Speaker Change: Eight from RMB 314 in the same period last year.

Speaker Change: Conversely.

Speaker Change: Advertising and other revenues increased significantly in the first quarter, but well.

3% to RMB 238 8 million.

Speaker Change: From RMB 114.1 million the same period of unfinished suite.

Speaker Change: The year over year increase was primarily driven by increase in other revenues generated.

The various businesses.

Speaker Change: As a voice based social networking service.

Hao Cao: Cost of revenues in the first quarter of 2024 decreased by 28.8% to RMB 0.93 billion, compared with RMB 1.31 billion in the same period of 2023. This cost reduction was largely based on a 37.7% decrease in our revenue sharing fees and content costs to RMB 0.68 billion from RMB 1.08 billion in the same period of 2023, revenue share fees reduction were largely in line with decreased live streaming revenues, while the decrease in content costs primarily came from improved cost management in streamer payments and our self-produced content, bandwidth cost in the first quarter of 2024 decreased by 33.7% to RMB82.5 million from RMB124.5 million in the same period of 2023, which was primarily due to a year-over-year decrease in peak bandwidth usage.

Speaker Change: Cost of revenues in the first quarter of <unk> 74 decreased by 28, 8%.

Speaker Change: RMB zero point, my straight billion compared with RMB 131 theater in the same period of time kind of story.

Speaker Change: These cost reductions was largely based on such a seven 7% decrease.

Speaker Change: Revenue sharing fees and the common costs to RMB 0.6 billion from RMB one point.

Speaker Change: Yeah right.

Speaker Change: Sorry.

Revenue sharing fees reductions were largely in line with increased live streaming revenues.

Speaker Change: The decrease in content costs, primarily came from improved cost management.

Speaker Change: Creamer, our payments and our self produced content.

Speaker Change: Bandwidth costs in the first quarter of pilot and therefore decreased by 33, 7%.

Speaker Change: RMB 82, 5 million from RMB $124 five committed to the same period of kind of industry.

Speaker Change #100: Which was primarily due to a year over year decrease in.

Speaker Change #100: Finally bandwidth usage.

Speaker Change #100: Yeah.

Hao Cao: Gross profit in the first quarter of 2024 was RMB109 million, compared with RMB176.5 million in the end period of 2023. The decline in gross profit was primarily attributable to decreased live-streaming revenues and increased costs related to our other innovative businesses. Gross margin in the first quarter of 2024 was 10.5%, compared with 11.9% in the same period of 2023, in line with our strategic streamlining initiatives. Staff-related expenses were reduced across the board in operating expenses accordingly.

Speaker Change #100: Gross profit in the first quarter of any fault was RMB 109 million come out of ways RMB 107.

Speaker Change #100: <unk>.

Speaker Change #101: Minute period up 10 minutes III.

The decline in gross profit was primarily attributable to decreased life's Korean revenues and increased cost related.

Speaker Change #102: The various businesses.

Speaker Change #103: Gross margin in the first quarter of 2024 was 10, 5% compared with 11, 9% in the same period.

Speaker Change #103: Sorry.

Speaker Change #104: In line with our strategic streamlining initiatives stopper related expenses were reduced across the board.

Speaker Change #104: Operating expenses accordingly.

Hao Cao: Sales and marketing expenses declined by 16.6% in the first quarter of 2024 to RMB75.6 million from RMB90.7 million in the same period of 2023. Research and development expenses were reduced by 25% to RMB 54.2 million from RMB 72.3 million in the same period of 2023. General and administrative expenses came down by 28.4% in the first quarter of 2024 to RMB 42.8 million from RMB 59.8 million in the same period of 20

Speaker Change #105: Sales and marketing expenses declined by 16, 6% in the first quarter.

Speaker Change #106: 74 to RMB 75, 6 million from RMB 97 million from the same period of time to penetrate.

Speaker Change #106: Research and development expenses were reduced by 25% to RMB $54 2 million from RMB 72, 3 million in the same period of time.

Speaker Change #106: General and administrative expenses came down by 28, 4% in the first quarter of 2024 to RMB 42, 8 million from RMB 59, 8 million in the same period of time in history.

Hao Cao: Loss from operations was RMB 166.9 million in the first quarter of 2024 due to RMB 111.7 million of voluntary return compared with RMB 27.3 million in the same period of 2023. Net loss for the first quarter of 2024 was RMB88 million, compared with net income of RMB14.5 million in the same period of 2023. Adjusted net loss, which excludes the share of loss in equity investment and impairment losses on investment, was RMB 85.7 million in the first quarter of 2024, compared with adjusted net income of RMB 25.8 million in the same period of 2023.

Loss from operations was RMB $166 9 million in the first quarter of 274 due to RMB 111.7 million after one or a return comparator with RMP.

Speaker Change #107: Two seven points for a minute in the same period of time.

Speaker Change #107: Sorry.

Speaker Change #108: Net loss for the first quarter of <unk>.

Q4 was RMB 88 million compared with net income of RMB 14, 5 million in the same period of time industry.

Speaker Change #109: Adjusted net loss, which excludes share loss in equity method investments and impairment loss of investments was RMB 85.7 million first quarter of 2024.

Speaker Change #110: Comparatively adjusted net income of RMB 25, 8 million same period oftentimes industry.

Hao Cao: For the first quarter of 2024, basic and diluted net losses per ADS were both RMB 2.77, while adjusting basic and diluted net losses per ADS proposed RMB 2.69. As of March 31, 2024, the company had cash and cash equivalents, restricted cash in other non-current assets, and short-term and long-term bank deposits of RMB 6.76 billion. Compiled with RMB 6.86 billion as of December 31, 2023. At the end of last year, we announced our 2024 share repurchase program for up to US$20 million. As of March 31, 2024, we had repurchased an aggregate of US$2.7 million in ADS under this program.

Speaker Change #111: For the first quarter of 2024 basic and diluted net loss.

Speaker Change #111: For both RMB <unk> 77.

Speaker Change #111: Adjusted basic and diluted net loss per ads.

Speaker Change #111: For both RMB two six months.

Speaker Change #112: As of March 31st 2024, the company had cash and cash equivalents.

Speaker Change #112: Restricted cash.

Speaker Change #112: Restricted cash and other.

Speaker Change #112: Non current assets as short term and long term bank deposits of RMB six 7 billion.

Speaker Change #112: Compared with RMB 6.86 billion as of December 31st Tennessee.

Speaker Change #112: Yeah.

Speaker Change #113: At the end of last year, we announced.

Speaker Change #114: Finally for share repurchase program for up to your solid 10 minutes.

Speaker Change #115: As of March 31st 2024, we had repurchased an aggregate of U S dollar $2 7 million.

Speaker Change #116: Under this program.

Hao Cao: We plan to advertise our repurchase activity in the second quarter of 2024. Moving forward, our consistent strategic approach is designed to support the sustainable growth of our platform. We are committed to building on a strong foundation by prioritizing diversified revenue streams, prudently managing costs and expenses, and focusing on long-term growth. We will do all of this while staying proactive and swiftly responding to evolving market dynamics by ensuring our strong fundamentals and maintaining a stable financial profile against the macro environment. We believe we are well positioned to overcome the short-term challenges and foster the long-term healthy development of our platform. This concludes our prepared remarks for today. Operator, we are now ready to take questions. Thanks.

Speaker Change #116: We plan to export type of repurchase activity in the second quarter of $2 94.

Speaker Change #117: Looking forward our consistent strategic approach is designed to support the sustainable growth of our platform.

Speaker Change #118: We are committed to building a strong foundation.

By prioritizing diversified revenue streams.

Speaker Change #119: Prudently managing cost and expenses.

Speaker Change #120: Focusing our long term growth.

Speaker Change #121: What about the all of this while staying proactive and swiftly responding to evolving market dynamics.

Speaker Change #121: By ensuring our strong fundamentals and are maintaining stable financial profile against the macro headwinds.

Speaker Change #121: We believe we are well positioned.

Speaker Change #122: The short term challenges and foster the long term healthy development of our platform.

Speaker Change #123: This concludes our prepared remarks for today.

Speaker Change #124: We are now ready to take questions.

Speaker Change #124: Thank you very much.

Operator: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the key. To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. For the benefit of all participants on today's call, if you wish to ask your question to the management in Chinese, please immediately repeat your question in English. Our first question is from the line of Lei Zhang from Bank of America security. Please go ahead.

Speaker Change #125: I will begin the question and answer session.

Speaker Change #126: Anyone who wishes to ask a question you May press star and one on your Touchtone phone.

If youre using a speakerphone please pick up your handset before pressing the keys.

Speaker Change #127: To withdraw your question. Please press Star then two.

Speaker Change #128: At this time, we will pause momentarily to us.

Speaker Change #129: Assembled out of Australia.

Speaker Change #129: Yeah.

Speaker Change #130: For the benefit of all participants on today's call a few of which to US your question to the management in Chinese. Please immediately repeat your question in English.

Speaker Change #130: Okay.

Speaker Change #131: Our first question is from the line of <unk>.

Speaker Change #131: Shang from Banc of America Securities. Please go ahead.

Speaker Change #131: Yes.

Speaker Change #132: Well. She said one is from Glenn you can choose to.

Speaker Change #133: You can see easy to continue some inquiries from.

Speaker Change #134: What are you seeing kind of on an opinion.

You have a concentration.

Speaker Change #134: Sure.

Speaker Change #135: Thanks management for taking my questions. My first question is regarding from a net loss in the first quarter can management share any update on this we are marching all Luke and second one is unusual cash. Thank you.

Speaker Change #135: Yeah.

Lingling Kong: Thank you for your questions, as we noted a mischallenging macroeconomic dynamic. Our primary focus remains on long-term sustainable growth by strategically adjusting our business operations. We stabilized our traditional businesses and refined our streamlined operations while further exploring diversified revenue streams in 2024. Navigating heightened market competition and persistent macroeconomic heaviness, we have taken a more agile operational approach, driving growth momentum in our innovative ventures. At the same time, we have continued to adopt a disciplined approach to controlling costs, looking ahead due to macroeconomic and operating uncertainties, as well as revenue pressures from ongoing adjustments to the live-streaming business.

Speaker Change #136: Thank you for question.

Speaker Change #137: As we noted amidst challenging macroeconomic dynamics.

Speaker Change #138: Our primary focus remains on long term sustainable growth.

Speaker Change #139: Adjusting our business operations.

Speaker Change #140: We stabilized our traditional businesses and refined our streamlined operations, whilst further exploring diversified revenue streams.

Speaker Change #141: Tenant in default navigating heightened market competition and persistent macroeconomic headwinds.

Speaker Change #142: We have taken a more agile operational approach driving growth momentum.

Winters.

Speaker Change #142: Todd we have continued to adopt.

Speaker Change #143: A disciplined approach to controlling costs.

Speaker Change #143: Looking ahead due to macroeconomic and operating uncertainties as well as revenue pressures from ongoing.

Todd: Adjustments to the live streaming business.

Lingling Kong: We expect to experience some deliverance on the profit level due to the downsizing of our revenue base. Despite these challenges, we will closely monitor market dynamics and our business trajectory, flexibly fine-tuning our strategies accordingly to ensure the company's solid advancement. Regarding financial planning, our financial standing remains exceptionally strong. As of the end of the first quarter, we had cash and cash equivalents, restricted cash, and short-term and long-term bank deposits of RMB 6.76 billion.

Todd: We expect to experience some de leverage.

Todd: The profit level due to a desktop sizing of our revenue base.

The strategy is.

Speaker Change #145: We will closely monitor market dynamics.

Speaker Change #146: This trajectory <unk> fine tuning our strategies Accordingly, and Shaw.

Speaker Change #147: Our company is Saudi plasmids.

Regarding financial plan, our financial spending remains exceptionally strong.

Speaker Change #148: As of the end of first quarter, we had cash cash equivalents restricted cash and short term and long term office.

RMB 670.

Peyton: Thanks Peyton.

Operator: We strictly follow positive ROI standards and are prudent when allocating funds to new business ventures, fostering continuous innovation and business improvement. In the meantime, we prioritize our shareholders' long-term interests, consistently repurchasing shares to bolster market confidence. In short, we will consistently implement prudent financial strategies, optimize fund allocation, and further enhance our platform's diversified commercialization capabilities, enhancing operating efficiency and providing robust support for the company's long-term growth. Thank you. Operator, next question.

Speaker Change #150: We are strictly quite a positive.

Speaker Change #151: And is a prudent one.

Speaker Change #152: Opinion falls to new business ventures, clustering continuous innovation quite a bit.

Speaker Change #152: This improvement in the main.

Speaker Change #152: Todd.

Speaker Change #153: We prioritize shareholders' long term interest.

Speaker Change #155: Instantly repurchasing chess so both the market confidence.

Sean: Hey, Sean.

Speaker Change #156: The way, we have consistently implement prudent financial strategies.

Speaker Change #157: Optimize bumped adaptation on Afrezza.

Speaker Change #158: Our platform's diversified commercialization capabilities at awaiting operating efficiency and are providing robust support for the companys long term growth. Thank you.

Operator: Operator, next question please.

Speaker Change #159: Operator next question please.

Yes.

Speaker Change #160: Thank you.

Operator: The next question is from the line of Thomas Chong from Jeffries. Please go ahead.

Speaker Change #160: The next question is from the line of Thomas Chong from Jefferies. Please go ahead.

Thomas Chong: Good evening. Thank you, management, for introducing my question. My question is about MAU. Can you share with us the reasons for the change in Q1? And what are our future expectations?

Okay.

Speaker Change #161: Yes, you bet.

Speaker Change #160: Yes.

What are you talking to your friends.

Speaker Change #162: Q1 turned up in <unk>.

Speaker Change #163: Oh sure.

Hi, Thanks management for taking my question. My question is about <unk> 10 minutes, you wouldn't comment about.

Speaker Change #163: Yes.

Speaker Change #163: In Q1, and how should we think about that.

Speaker Change #164: Thank you.

Speaker Change #164: Yes.

Lingling Kong: As we noted in our prepared remarks, the MAU decline in the first quarter was primarily due to competition from short video platforms, their expanded live-streaming gaming content offerings, and aggressive, periodic promotional campaigns that impacted our MAU in the short term as some users' attention shifted. We took a deep dive into user behavior that revealed our MAU losses were predominantly from low engagement users with relatively short viewing hours.

Speaker Change #165: As we noted in our prepared remarks.

Speaker Change #166: <unk> declined in the fourth quarter.

Speaker Change #167: Primarily due to competition from short video platforms.

Speaker Change #168: There expanded the live streaming gaming content offerings.

Speaker Change #169: Aggressive periodically promotional campaigns.

Speaker Change #170: Impact to that.

Speaker Change #171: In the short term.

Speaker Change #172: Some of you those teaching shifted.

Speaker Change #173: We took a deep dive into user behavior data revealed.

Speaker Change #174: And May you all doses were dominated.

Speaker Change #175: Tom and Italy from low engagement of users.

Speaker Change #175: Relatively sharp viewing hours.

Lingling Kong: These types of users frequently switch platforms and exhibit inconsistent payment habits. So, despite the drop in MAO, we believe it had minimal impact on our platforms or our monetization efficiency. Amidst the intense market competition, we responded proactively, harnessing our platform's strength and implementing multiple initiatives. We wrapped up cross-platform content collaboration and sharing, offering exceptional premium content to meet our users' diverse needs. We also depend on our collaborations with game developers and promote the game properties, catering to the needs and interests of hardcore gamers.

Speaker Change #176: These types of users frequently switch platforms.

Speaker Change #177: Because they've made it in consistent payment.

Speaker Change #177: Great.

Speaker Change #177: So despite the drop in email.

<unk> had a minimal impact.

Speaker Change #178: Our platforms all months high between efficiency.

Speaker Change #178: Amit.

Speaker Change #179: Handset market as competition.

Speaker Change #180: Response to.

Speaker Change #181: Proactively waived response broker activity, how do you see.

Speaker Change #181: Our platform.

Speaker Change #181: And implementing multiple initiatives.

Speaker Change #182: [noise] way Robert.

Speaker Change #183: Cross platform content collaboration and sharing offering.

Speaker Change #184: Establishing no premium arm contender to meet our users' diverse needs.

Speaker Change #184: We also depend on our collaborations with game developers.

Speaker Change #185: Promoted the gam problem garbage out.

Speaker Change #186: Catering to the needs and the injuries or how the core gamers.

Lingling Kong: This bolstered user engagement and satisfaction with Douyu, thereby fortifying and expanding our user base, while overall MAU declined. Our platform's core user behavior metrics remained relatively stable. With this in mind, in 2024, we are enhancing our co-user operations to elevate user monetization efficiency. Our platform thrives on our co-users; they are the backbone of our community, driving the platform's growth with their active engagement and high loyalty. Their constitutional payment patent is instrumental in improving our multivision. Notably, during a previous GamePro marketing campaign, we noticed a significant demand among gamers for gaming services and a higher payment conversion rate with our more attractive gaming services.

Speaker Change #187: Both are the user engagement and Chesapeake with.

Speaker Change #188: Thereby fortifying and expanding our user base.

Speaker Change #189: While overall EMEA declined.

Speaker Change #190: Our platform is call user behavior behavior metrics remained relatively stable.

Speaker Change #190: While this in mind.

Speaker Change #191: <unk> 'twenty 'twenty four we are enhancing our call you their operation to elevate to use at our monetization efficiency.

Speaker Change #192: Our platform drives to our core users. They are the backbone of our community driving as a platform of stores versus the X.

Speaker Change #193: X team engagement and a high loyalty.

Speaker Change #193: They are consistent payment patterns.

Speaker Change #194: Instrumental in driven our monetization.

Speaker Change #195: Notably Dr improving the game.

Speaker Change #196: Marketing campaign.

Speaker Change #197: We noticed.

Speaker Change #198: Significant demand among.

Speaker Change #198: Wade.

Speaker Change #199: Kmart bulk gaming services.

Speaker Change #200: A higher payment conversion conversion rate with our mall of Chegg table gaming service.

Lingling Kong: Therefore, we will offer products and services that align more closely with the needs of our co-users in order to increase user commercialization efficiency. We anticipated potential downward pressure on mobile MAU in 2024, over the years. With our consistently agile operational approach, we have swiftly adapted to industry trends and evolving user needs. We have secured operational stability and efficiently adjusted and aligned our operational strategies to our co-competitive strengths through the continuous rollout of new products and models. Further advancement and scaling of these offerings, we are actively pursuing opportunities for Douyu's second growth engine. Thank you.

Speaker Change #200: Thereby we will all of our products and the Soviets.

Speaker Change #201: Align more closely with their needs all of our power users in order to increase user or commercialization efficiency.

Speaker Change #201: We.

Speaker Change #202: Anticipated potential downward pressure.

Speaker Change #202: On mobile.

Speaker Change #202: In 2024.

Speaker Change #202: Over the years.

Speaker Change #203: With our consistently.

Speaker Change #204: Operational approach, we have significantly adaptor to industry trends and the evolving user needs.

Speaker Change #205: We secure the operation no stability and efficiently.

Speaker Change #206: Adjusted and aligned our operations remedies to our KOL.

Speaker Change #206: Competitive trends.

Speaker Change #207: So there can even mirrors the roll out of new products and models.

And there are further advancement and the scaling of this offering.

Speaker Change #208: We are actively pursuing opportunities for <unk>.

Speaker Change #209: That can do both and Jay Thank you.

Operator: Thank you, operator. Next question, please.

Speaker Change #210: Operator next question please.

Operator: Thank you. Our next question is from the line of Richie Sun from HSBC. Please go ahead.

Speaker Change #211: Thank you our next.

Speaker Change #211: Next question is from the line of Richie Tsang from HSBC. Please go ahead.

Hongrui Sun: Thank you for giving me the opportunity to ask questions. Can you please share with us the progress of the company in terms of cross-platform content and cooperation? What are the results now, and what are your expectations for the future?

Speaker Change #212: Yeah, well I mean, you can get what you wanted to see your way right.

Speaker Change #213: Great Okay.

Speaker Change #214: Yeah go food quality, and probably New York clubs off I'm Gonna change John.

Speaker Change #215: That kind of help walk you hold.

Keith: Thank you Keith.

Speaker Change #217: Thank you management for taking my question.

Speaker Change #218: I have one regarding the close collaboration with all the platform.

Speaker Change #219: <unk> share the progress made in terms of the content collaboration and eat breakfast.

Speaker Change #220: So far and the expectation going forward. Thank you.

Speaker Change #220: Okay.

Lingling Kong: Hi Rikki, so as we noted last quarter, cross-platform content sharing has become the prevailing trend. With the rapid evolution in content creation and distribution, there has been a parallel surge in user demand for more diverse and high-quality content. During the quarter, we focused extensively on content innovation and cross-platform collaboration. Maximizing Content Utilization and Distribution under FEAR and Equitable Terms.

Speaker Change #221: So as we noted last quarter cross platform content sharing has become the prevailing trend with the rapid evolution in content creation and distribution. There has been a parallel surge in user demand for more diverse.

Speaker Change #221: And high quality content.

Speaker Change #221: During the quarter, we focused extensively on content innovation and cross platform collaborations.

Speaker Change #222: Maximizing utilization and distribution on the fear and equally both terms.

Lingling Kong: Through resource pooling and collaborations, we strategically worked with multiple platforms to tap into each other's high-quality streamed assets. In the first quarter, we rolled out a series of jointly produced events across signature gaming segments of live-streaming classes. Instead of live streaming platforms competing for resources, these content collaboration models have proven highly effective in increasing border-based traffic and user engagement across all of the participating platforms. Additionally, by harnessing cross-platform visibility, streamers reach broader audiences and expanded their influence, increasing their commercial value.

Speaker Change #223: Two resource pooling and collaborations we strategically what we multiple platforms to tap into each other high quality streamers asset.

Speaker Change #223: In the first quarter, we rolled out on a series of joint to be produced and then of course, the computer gaming Zechman of life's journey.

Speaker Change #223: Instead of live streaming platforms competing for resources.

Speaker Change #223: These content collaboration models has proven highly effective.

Speaker Change #224: And crazy the boarder base traffic and user engagement across all of the participating platforms.

Speaker Change #225: Additionally, by harnessing cross platform visibility streamers reach broader audiences and expanded their influence increasing their commercial value.

Lingling Kong: Our cross-platform cooperation has also been extended to more comprehensive platforms, like through our deepened partnership with Taobao. In late 2023, we co-launched the gaming shop in Bonanza with Taobao, selling and promoting game props and gaming merchandise. During the quarter, we co-created upholding content with Taobao in the Valorant segment, hosting Valorant challenges that were exclusively streamed on Taobao and Douyu, expanding the reach of our gaming content distribution. Right now, our cross-platform content collaborations are being piloted on a relatively small scale.

Speaker Change #226: I'll quote smartphone cooperations also extended two more.

Speaker Change #227: Hence a platform like through our deep partnership with cobalt.

Speaker Change #228: In late 2023, we call lunch the gaming shopping when I was out with powerball silly and promoting gain pumps and gaming merchandise.

Speaker Change #229: During the quarter, we call cricket upheld and content with cobalt in the vulnerable Hickman hosting buzzard and its challenges that we're exclusively stream on top of and don't use.

Speaker Change #230: Expanding the reach of our gaming quanta distribution.

Speaker Change #231: Now our COO.

Speaker Change #232: Classroom content collaborations are being piloted on a relatively small scale based on user feedback and data analyze it we will continue to refine and optimize our collaborate modal with.

Lingling Kong: Based on user feedback and data analysis, we will continue to refine and optimize our collaborative models. We believe that through these content collaborations, platforms can learn from one another and leverage each other's experiences, raising the bar for content standards and catalyzing the healthy advancement of the gaming live-streaming industry. Thank you.

Speaker Change #233: Leave that to.

Speaker Change #234: These quintile cooporation platform learn from one another and beverage each others experiences.

Speaker Change #235: Raising the bar for content Thunder and cut lives. These healthy advancement of the gaming live streaming industry. Thank you.

Speaker Change #235: Thank you.

Operator: Thank you. I'll create the next question, please.

Speaker Change #236: Thank you operator next question please.

Operator: Yes, thank you. The next question is from the line of Raphael Chen from BOCI Research. Please go ahead.

Speaker Change #237: Yeah. Thank you. The next question is from the line of <unk> Chen from <unk> Research. Please go ahead.

Shaojie Chen: Thank you, Guanli Chen, for answering my question. My question is about the business partnership model. Can you share with us the contribution ratio of the company to the business partnership model? What business areas does this model already cover?

Thank you, Eric one tangential or does she want what they want to use your Guangzhou Changsha. So that's what it was a novel things don't go. So you don't see tangshan, Shaniya apocalypse or more traditional coincident.

Speaker Change #238: I'll turn it on Wall Street, you've forgotten what your friendship, whereas audio gene will go towards that.

Shaojie Chen: And do you have any further plans and goals in the future? Thanks, management, for taking my question. I want to follow up on our cooperation with game developers. Could management share the current revenue contribution from our cooperation with game developers and games already included in this model? Lastly, could we have any thoughts on future plans?

Speaker Change #239: It won't be all thanks.

Speaker Change #240: Management for taking my question I wanted to follow up on our cooperation with game developers are quite madigan ensured that its current revenue contributions for our cooperation with game developers and our games already included into this model lastly, we'd have any thoughts on the future. Thank you.

Lingling Kong: Commercial collaborations with game developers are a natural extension of Douyu's content offering, because gamers account for most of our core user base. So there is a built-in appetite for both game prompts and new game releases, which perfectly matches a platform's gaming content offering. Our collaborations with game developers mainly follow two approaches. The FIRST centers on game prompt sales, primarily through collaborative promotional channels and gaming membership, as we explained in our prepared remarks. Revenue-wise, the collaborative promotional channels currently make minor contributions to our revenue. However, the GMV facilitated through our promotional channels was meaningful.

Speaker Change #241: Commercialization collaborations with game developers.

Speaker Change #242: Natural extension they'll use content offerings.

Speaker Change #243: Gamers account for most of our core user base. So there is a building appetite proposed game prompts a nuc and releases.

Speaker Change #244: Which perfectly matches our platforms gaming content offerings.

Speaker Change #245: Our collaborations with game developers many followed two approaches.

Speaker Change #246: The first centers gain pronged sales, primarily as true collaborative promotional channels and gave me memberships.

Speaker Change #247: As we explained in our prepared remarks revenue wise.

Speaker Change #247: Collaborate promotional channels currently make minor contributions to our revenue however.

Speaker Change #247: We also paid our promotional channels was minimal.

Lingling Kong: The revenue generated from game memberships, which is included in other revenues, has substantially boosted year-over-year growth in other revenues since the second half of 2022. Over the past two years, we have explored promoting game prop sales in several gaming segments. [inaudible] We have currently established collaborations with game developers on over 10 games. The second approach involves updating our game promotion model. We are pivoting away from streamer-sponsored product placements and gradually transitioning to performance-based cost-per-sale promotions.

Speaker Change #248: The revenue generated from games memberships, which is included in other revenues has substantially posted year over year growth other revenues since the second half of Penny attended to.

Speaker Change #249: Over the past two years, we have explored promoting game prop cells, you separate gaming segments, yielding valuable insights.

Speaker Change #250: We have currently established collaborations with the benefits of a 10 games.

Speaker Change #251: The second approach involves updating our game promotional model.

Speaker Change #252: We are pivoting away from streamers sponsored product placements and gradually transitioning to performance based cost per sale promotions.

Lingling Kong: The CPS model covers new games across diverse genres, allowing streamers the flexibility to select which new games get promoted based on their expertise and audience preferences. Most of our users are gamers, leading to higher-than-market-average gaming promotion conversion rates. With the release of more new games and as we expand our collaborative channels, such as our co-promotion with QQ Minigames, we will consistently amplify the scale of our game promotions, progressively extending the CPS model from top-tier streamers to niche streamers within specific verticals.

Speaker Change #253: The Cps modal Congress new games across diverse genres.

Speaker Change #253: Allowance streamers that flexibility to select which new game get promoted based on their expertise and audience preferences.

Speaker Change #253: Most of our users are gamers, leading to a higher than market average gaming promotion conversion rates.

Speaker Change #254: With the release.

Speaker Change #254: More new games as we expand our collaborative channels such as.

Speaker Change #255: Co promotion with QQ mini games.

Speaker Change #255: We will consistently amplifying the skill of our game promotions.

Speaker Change #255: Progressively expanding the Cps modal from top tier streamers to niche streamers within specific verticals.

Lingling Kong: Additionally, as we actively advance collaborations with game developers, our other smaller, innovative businesses are also demonstrating promising growth momentum and making notable revenue contributions. Overall, we expect advertising and other revenues to grow year-for-year in 2024, with the overall revenue share exceeding 20%.

Speaker Change #256: Additionally, as we actively out of bounds collaborations with game developers.

Other smaller <unk>.

Speaker Change #256: <unk> businesses are also demonstrating promising growth momentum and are making notable revenue contributions.

Speaker Change #257: Overall, we expect advertising and other revenues to grow year after year and kind of any fault with the overall revenue share exceeded.

Speaker Change #258: Perfect. Thank you.

Speaker Change #258: Yeah.

Speaker Change #259: Thank you.

Speaker Change #259: Yeah.

Operator: That's all the time we have for questions. I would now turn the call back over to the management for closing remarks. Thank you.

Speaker Change #260: That's all the time rehab for questions.

Speaker Change #261: I would now turn the call back or what would the management for closing remarks.

Lingling Kong: Thank you. On behalf of the Internet Management Committee, thank you all for joining our call tonight. We look forward to speaking with everyone next quarter. Thank you.

interim management: Thank you on behalf of the interim management for me. Thank you all for joining our call Tonight, We look forward to speaking with everyone next quarter.

Speaker Change #263: Thank you.

Lingling Kong: Thank you for joining our call. We look forward to speaking with everyone next quarter.

Speaker Change #263: Thank you for joining our call we look forward to speaking with everyone next quarter.