Q2 2024 iQIYI Inc Earnings Call

Unknown Executive: Thank you for standing by, and welcome to the IKE second quarter 2024 Earnings Conference Call. All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session.

Thank you for standing by and welcome to the Ikea second quarter 'twenty 'twenty four earnings conference call. All participants are in listen only mode that will be a presentation, followed by a question and answer questions.

Unknown Executive: If you wish to ask a question, you will need to press the star key, followed by the number one, on your telephone keypad.

Speaker Change: He was asked a question you will need to pass a stocky pilots are the number one on your telephone keypad.

Chang Yu: I would now like to hand you over to the conference student, Ms. Chang Yu, IR Director of the company.

Speaker Change: I'd like to hand, you over to the conference to MS. Chang you.

Ms. Chang: I talked about the company. Please go wrong.

Chang Yu: Thank you all for joining IKE Second Quarter, 2022 Earnings Conference Call. The company's results were released earlier today and are available on the company's Investor Relations website at ir.it.com. On the call today are Mr. Yu Gong, a founder, director, and CEO. Mr. Jun Wang, RCFO; Mr. Xiaohui Wang, RCCO, Chief Compton Officer; Mr. Yu Tao Duan, Senior Vice President of our membership business; and Mr. Xiaohui Wang, Senior Vice President of Movies and Overseas Business. Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Jun, who will go through the financials.

Speaker Change: Thank you Don and.

Speaker Change: Hello, everyone and thank you for joining <unk> second quarter 2024 earnings Conference call. The company's results were released earlier today and I was available on the company's Investor Relations website at IR E.

Speaker Change: Dot com on the call today are Mr. Yu co founder director and CEO, Mr. Jing, Wang our CFO, Mr. Scott Wheeler our chief.

Speaker Change: Chief content officer, Mr. Joel Dorn.

Speaker Change: Senior Vice President of our membership business and Mr. Schott Senior Vice President of movies and overseas business. Mr. Conkle will give a brief overview of the company's business operations and highlights followed by James who will go through the financials. After the prepared remarks, the management team will participate in the Q&A session.

Unknown Executive: After the prepared remarks, the management team will participate in the Q&A session.

Unknown Executive: Before we proceed, please note that the discussion today will contain forward-looking statements made under to say proper provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public violence with the SEC. ITE does not undertake any application to update any forward-looking statement, except as required under applicable law.

Before we proceed. Please note that the discussion today 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 are subject to risks and uncertainties that may cause actual results to differ materially.

Speaker Change: Expectation.

Speaker Change: Risks and uncertainties.

Mr. Song: But not limited to those outlined in our public filings with the SEC I E does not undertake any obligation to update any forward looking statements, except as required under applicable law I will now pass on to Mr. Song. Please go ahead.

Yu Gong: I will now pass on to Mr. Gong; please go ahead.

Yu Gong: Hello, and all right. Thank you for joining us today. In the second corner, we saw intense competition for top content, well without a series of diversified premium content. Certain titles, stipend of math or high expectations, putting pressure on our financial results.

Mr. Song: Hello, everyone. Thank you for joining us today.

Mr. Song: In the second call Center.

Paul: The eastern well Paul.

Well al: Well al.

Speaker Change: I've worked with premium content.

Stephen: Hi, Paul Stephen though Matt.

Stephen: Activation is here.

Stephen: Actual financial results.

Yu Gong: After a pursuit of hard work, we have overcome the short-term fluctuation in our content-late performance. As a matter of effect, we build the vibrant competition within the long-term video centers and interactive, which has increased its appeal over other entertainment formats, and also private as a valuable opportunity to review and revive all tactics. It helps us gain a better understanding of user preference and improve our business for future growth. We firmly believe that ultimately, as a fact, in the long-term video business, it depends on the level applied of premium content and the ability to achieve balance in both content quality and commercial benefits.

Stephen: After a great deal of hard work, we have overcome.

Stephen: Like to Asia in all content.

Stephen: From it.

Speaker Change: As a matter of fact.

Speaker Change: Bill.

Brett: Right Brett combination.

We deal with that.

Rich: Talk to you rich.

Rich: Uhm.

Rich: Yes.

Rich: Or other entertainment formats.

Rich: Also climate.

Rich: That award winning the deal.

Speaker Change: Uh huh.

Speaker Change: And it helps us.

Speaker Change: It helps.

Speaker Change: A better understanding of user preference.

Speaker Change: Group business for future growth.

Speaker Change: And I believe that automates Tonight.

Speaker Change: The fact that in the long form video she passed.

Speaker Change: Well supply premium content.

Speaker Change: The ability to achieve.

Speaker Change: As bad as you both commented on it.

Speaker Change: Commercial benefits.

Yu Gong: With this in mind, our goal is to further improve the overall success rate of our content portfolio and the more important. The ability of content performance. In fact, as the summer season unfolds, our premium content has gained strong momentum. The release of a plan that titles that has internal edge, thin, thick, and a strange tail of calm down and deep season to come to a slow path has boosted our key operating metrics and brought us back to the leading spot in terms of Michel in the key drama category in July, according to in lightened data.

Speaker Change: With this in mind.

Speaker Change: <unk> father cool overall, that's where it all comes into play.

Speaker Change: And more importantly.

Speaker Change: The ability of content from us.

Speaker Change: In fact, after the summer season and for all.

Speaker Change: Premium content.

Speaker Change: One moment.

Speaker Change: That release.

Speaker Change: Titles, such as <unk>.

Speaker Change: F C.

Speaker Change: Well on the.

Speaker Change: A strange tale of Palm Dennis Lynch.

Speaker Change: Kobe slow.

Uh huh.

Speaker Change: All key operating metrics brought us back to that leading spot in terms of market share in the key category in July according to it.

Speaker Change: In license data.

Yu Gong: Notably, the second season of Strange Tales of Calm Down and Deep become the 14th drama to bring up popularity index of 10,000 YT in addition to delivering high quality content, providing great user experience as than as another cornerstone of our business. As we remain committed in enhancing member benefits, we are also refining our content distribution and bring to bring free users a period of your experience while balancing commercial performance.

Speaker Change: No it's a blip.

Speaker Change: Secondly, the stretched health.

Speaker Change: Hum.

Speaker Change: Becomes the 14th.

Speaker Change: To break off I'll deal actually skull tenfold.

Speaker Change: Right. Yeah, Yeah addition to delivering high quality content, providing great yields.

Speaker Change: Yeah.

Uh huh.

Speaker Change: Theyre, all cornerstone, albeit stance.

Speaker Change: As we remain committed.

Speaker Change: Remember the member benefits we are also refining.

Speaker Change: Oh it is.

Elisa.

Speaker Change: Great.

Speaker Change: Bring free yields are.

Dr Peres.

Wow.

Speaker Change: Marshall format.

Yu Gong: Looking ahead, we are investing in multiple errors to drive the company's long-term sustainable growth. First of all, we are extensively applying AI to improve content creation or creation or efficiently and user experience. Secondly, we will further enhance our domestic business well-spending of spring in rather overseas market. First of all, we are using the IT content insurance and the FIP portfolio to explore that new alternative beyond membership and advertisement, such as the IP that work, TVs, the river tables, and offline experiences. The initial tips align perfectly with our call value which centered on maximizing our IP values, some technical innovations and content creativity that is a step forward and effective future.

Speaker Change: Uh huh.

Speaker Change: Are you investing in multiple areas to drive the company's long term sustainable growth.

Speaker Change: Gross to net.

It doesn't seem that apply.

Speaker Change: To improve content.

Speaker Change: Our accretion.

Speaker Change: You can see that user experience.

Speaker Change: We will further enhance.

Domestic business well spending also spring rather overseas market resumes.

Speaker Change: We are using cash inflow.

Speaker Change: IP pulse Hello.

Speaker Change: You saw that in your opinion.

Speaker Change: Beyond.

Speaker Change: Membership I work has been.

Speaker Change: Gotcha.

Speaker Change: That works.

Speaker Change: You bet.

Speaker Change: Yeah.

Speaker Change: Deliver to them.

Speaker Change: And offline heats variance there.

Speaker Change: In nature.

Speaker Change: Perfect.

Speaker Change: <unk> called out.

Matt: Sure Matt.

Matt: <unk>.

Matt: <unk> Agricole in Malaysia, and the content.

Matt: Hey.

Speaker Change: Thank you.

Speaker Change: Thank you field trials.

Yu Gong: Now, let's move on to the performance of our call business segments. Starting with membership 36. Our primary goal for membership is to remain on driving the sustainable long-term brand new growth through top-notch content and the period of user experience. In the second corner, membership brand new was done by person and primary end to fluctuation in our company's latest performance, causing the attribution of pre-titled private members and the high-speed effect from last year's major I'm Guo Dailei, year-over-year. This was partially a fool, a fool, fueled by our displaying pricing strategy as we scale back on the overall promotions and discussions.

Speaker Change: Now, let's move onto the performance of our coffee segment.

Speaker Change: I must say.

Our primary goal for membership.

Right.

Speaker Change: Some of that growth.

Speaker Change: Top notch content and so forth.

Speaker Change: Youll experience.

Speaker Change: Second called her membership.

Speaker Change: Oh my person.

Speaker Change: Primary school last year Asia, all comes into play as procurement policies.

Speaker Change: Okay.

Speaker Change: Well keep high school, Cleveland members and the hotbed.

Speaker Change: The effect from last year's Mega peaks.

unknown: Sponsored ADR Class B Sponsored ADR Class C Sponsored ADR Class D, Sponsored ADR Class D Sponsored ADR Class E Sponsored ADR Class E

Speaker Change: <unk>.

Speaker Change: Oh, Yeah, Oh, yeah.

Speaker Change: This was partially.

Our food.

Speaker Change: Do you feel with it.

Speaker Change: By all display pricing strategy as it is.

Speaker Change: Scott back on the overall motion.

Yu Gong: All in half the number of benefits also played a major role effectively, encourage the members to sign up for a higher-term plan. Guo Dailei Wang, we note that in no way, a well-edited, so-called users, well-known to pay, notably, we launched an express package for 10 drummers in the second corner and gathered the highest number of casual purchases. Following the data in drummers calibrate, we plan to expand express package to other content categories such as the variety show and animation.

Speaker Change: <unk> all in the past and therefore benefits okay.

Speaker Change: A major goal effectively.

Speaker Change: We encourage our members to Lasalle.

Speaker Change: Uh huh.

Speaker Change: Yes.

Paul Stephen: Hello, Paul.

Paul Stephen: Hey.

Paul Stephen: In the old way to Atlanta.

Paul Stephen: Atlanta adult users to.

Paul Stephen: Hey, North Platte Red lobster, perhaps package.

Paul Stephen: In the second and called out.

The highest number of cash purchases.

Speaker Change: But you can draw all kinds of Brett we are planning to pad.

Speaker Change: The express package or other content categories, such as whereas historically.

Speaker Change: Sure.

Yu Gong: We remain confident in the long-term outlook of our membership business, which is supported by several key factors. Firstly, we have successfully built a solid foundation of lawyer, sticky members. Secondly, content remains of copyrights, copyrights, of our membership world. And we are in the middle of introducing more diversity by the premium countries, including college, broader user, co-hosts. Furthermore, we are committed to enhancing our operational strategy to improve membership accreditation and retention. Initiatives include what reaching broader demographic growth by finding a health channel and utilizing a wide-row social marketing tool. Secondly, improving conversation rates by launching marketing initiatives directly tied to popular content of the season such as health effects, a member package, express package, and a contest-see experience program in both countries, providing value for many services for long-term and high-tier plan subscribers such as inclusive offline events in the second corner of the video, organized 17 offline events and received positive member feedback, building on the strong user reception from last year.

We remain confident in the long term outlook of our membership business.

Speaker Change: I have several key factors.

Speaker Change: Firstly, we have successfully built a solid foundation of lawyer.

Speaker Change: My first secondly content remains of.

Classes last forever.

Speaker Change: Ill membership world.

Speaker Change: And in the middle of introducing more that wants to buy the premium content, we encourage all of their user cohort. Furthermore, millions toward enhancing.

Speaker Change: Operational strategy to improve membership create patient retention.

Speaker Change: Initiatives include.

unknown: 1.

Speaker Change: What reaching broader demographic where else by expanding our scale.

Channel.

Utilizing.

unknown: Reaching broader demographic growth by expanding our sales channel and utilizing viral social marketing.

Speaker Change: Why go all social market marketing.

unknown: 2.

unknown: Improving conversation rates by launching marketing initiatives directly tied to popular

Speaker Change: Cool.

Speaker Change: <unk> conversations with.

Speaker Change: Launching marketing initiatives directly pad tool popular.

unknown: 3.

Speaker Change: Also the feedback.

Speaker Change: Hey.

Speaker Change: And remember our package.

Speaker Change: Xscribe package.

Speaker Change: Congress.

Speaker Change: Our risk profile.

Speaker Change: Both.

Speaker Change: So suite providing value.

Speaker Change: It's long term and the highest share of that fiber.

Speaker Change: It's actually as it cools it.

unknown: Providing value for many services to long-term and high-tier plan subscribers, such as inclusive

Speaker Change: You bet.

Speaker Change: In the second quarter on that.

Speaker Change: Kim offline events, and then positive feedback.

unknown: In the second quarter, we organized 17 offline events and received positive member feedback,

Speaker Change: Building on the strong user reception from last year.

unknown: building on the strong user reception from last year.

Yu Gong: Our annual offline flagship events, the 2024 H.E.S. screen time general fee is set for its comeback in December 7th this year in Macau. The perceived value of our members was even further amplified by our very first 17th IT Member Festival. In the same event, we offered a pre-link membership to come. and housed a seven-hour live broadcasting to promote over 500 and 30 titles in our content applied. More than 4 days, the celebrities had depended the live streaming event and generated over 30 million views in the future that to live. The 17th IT Membership Festival is set to be an annual event, inclusive to our members.

Speaker Change: Annual offline flagship event.

Speaker Change: We felt the 20th floor.

Speaker Change: Great.

Speaker Change: Didn't know if that.

unknown: Our annual offline flagship event, the 2024 ITX Screen Night Jianjiao Shiyue, is set for, its comeback on December 7 this year in Macau.

Speaker Change: Well, it's come back in December a surface.

Speaker Change: This year in my call.

unknown: The perceived value of our members was even further amplified by our very first July 17, IT Member Festival. Through this event, we offered a premium membership discount, and hosted a 7-hour live broadcasting to promote over 530 titles in our content pipeline. More than 40 celebrities participated in the live streaming event and generated over 30 million views.

They will proceed.

Speaker Change: The proceeds about at all.

Speaker Change: Oh man.

Speaker Change: First what's EBIT flows are spot on.

Speaker Change: The first of July 17th for basketball.

You bet we offer.

Membership dues comps.

Speaker Change: Hum.

Speaker Change: Our live broadcasting.

Speaker Change: A malls over 500 titles.

Speaker Change: I bought more than what he celebrated Hayes.

They paid the last streaming but generating it over.

unknown: In the future, in July, the 17th iQIYI Membership Festival is set to be an annual event exclusive to our members. It is an event to discover attractive deals and exciting activities. This festival will not only underscore the substantial value we provide to our members,

Speaker Change: Kneeling deals.

Speaker Change: Fuel trucks that July the seventh.

Speaker Change: <unk> membership.

Speaker Change: Well if that would be accurate.

Speaker Change: You bet it closer to our members.

Yu Gong: It is an event to discover positive deals and enjoy defending everything.

Speaker Change: It is your best comp World.

Speaker Change: Half two deals.

Speaker Change: Yeah.

Unknown Executive: Thank you for standing by and welcome to the IKE second quarter, 2024 Earnings Conference Call.

Unknown Executive: Thank you for standing by and welcome to the IKE second quarter, 2024 Earnings Conference Call. All participants are in listen only mode. There will be a presentation followed by a question and answer session.

Speaker Change: Yeah.

Yes.

Yu Gong: This festival will not only underscore the substantial value we provide to our members, but we also serve as a key opportunity to boost our brand influence.

Speaker Change: First it will not.

Speaker Change: Not only on those.

Unknown Executive: All participants are in listen only mode. There will be a presentation followed by a question and answer session.

The Central Valley.

Speaker Change: Robot 12 members, but we are also soft.

unknown: but will also serve as a key opportunity to boost our brand's influence.

Unknown Executive: If you wish to ask a question, you will need to press the star key, followed by the number one, on your telephone keypad.

Unknown Executive: If you wish to ask a question, you will need to press the star key, followed by the number one, on your telephone keypad.

Key opportunity to boost.

Chang Yu: I would now like to hand you over to the conference student, Ms. Chang Yu, IR Director of the company.

Chang Yu: I would now like to hand you over to the conference student, Ms. Chang Yu, IR Director of the company. Please go ahead. Thank you all for joining IKE second quarter, 2022 Earnings Conference Call. The company's results were released earlier today and are available on the company's investor relations website at ir.it.com.

Speaker Change: Brand influence.

Yu Gong: Moving on to content, we are overcome the short-term flagship Asian in the content set flight performance in Q2 and learned a lot from this short-term setback. So the impact on this of the overall project, we have gained valuable insight to guide our content creation and operation in the future. First of all, we respect two content creation where we are craft more and higher quality content that means the appetite of mainstream audiences. In particular, we plan to broaden our fellow with offering that especially appeal to our female audience to maintain our age in the concentrate in both the field of content creation.

unknown: Moving on to content.

Speaker Change: Moving on to content.

unknown: We have overcome the short-term fluctuations in the content select performance in Q2, and learned a lot from these short-term setbacks. Through the in-depth analysis of the overall project, we have gained valuable insights that are set to guide our content creation and operation in the future.

Speaker Change: We are overcome the short term fluctuation in the company that flight procurement into true unmet learn a lot from.

Unknown Executive: Please go ahead.

Chang Yu: Thank you all for joining IKE second quarter, 2022 Earnings Conference Call.

Speaker Change: From this short term.

Speaker Change: So the impact.

Speaker Change: And the state of the overall okay.

Chang Yu: The company's results were released earlier today and are available on the company's investor relations website at ir.it.com.

Yu Gong: On the call today are Mr. Yu Gong, a founder, director and CEO.

We have again better insight.

Speaker Change: We got it all continents Asia on RPC.

Yu Gong: Mr. Jun Wang, RCFO, Mr. Xiaohui Wang, RCCO, Chief Compton Officer, Mr. Yu Tao Duan, Senior Vice President of our membership business, and Mr. Xiaohui Wang, Senior Vice President of Movies and Overseas Business. Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Jun, who will go through the financials. After the prepared remarks, the management team will participate in the Q&A session.

unknown: Firstly, with respect to content creation, we will craft more and higher quality content, that meets the appetite of mainstream audiences. In particular, we plan to broaden our portfolio with offerings that especially appeal to our female audience.

Speaker Change: In the future.

Speaker Change: The rest of it.

Speaker Change: With.

Speaker Change: With respect to content creation, we will craft and Paul on the higher quality of content.

Yu Gong: On the call today are Mr. Yu Gong, a founder, director and CEO.

Meets the eye.

Speaker Change: Titan of mainstream audience.

Speaker Change: In particular, we plan to abroad and all other fellow.

Speaker Change: Offerings that especially uphill tool.

Unknown Executive: Before we proceed, please note that the discussion today will contain forward-looking statements made under to say proper provisions of the US private securities litigation reform act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to those outlined in our public violence with the SEC. ITE does not undertake any application to update any forward-looking statement, except as required under applicable law.

Speaker Change: Female audience.

unknown: To maintain our edge in the constantly evolving field of content creation, we aim to further enhance our ability to tap into popular social trends, thereby producing content that establishes a deeper connection with our audiences.

Speaker Change: 10.

Speaker Change: H in the call center that in both the field of content creation.

Yu Gong: We aim to further enhance our ability to tap into popular social trends, thereby producing content that is tabulation, a deeper connection with our audiences. We will engrave more innovative aspects in our casting and the script selection process, aiming to transcend the limits of the traditional tolerance. Secondly, without encountering the scouting, we will throw less money here, or use a trend and adopt a dynamic gathering strategy that is guided by user engagement and retention. This approach ensures that our content law out is often valid, and time to align with our audiences is crafted with, and we will have it.

Speaker Change: We further enhanced our ability to tap into popular social apps.

Speaker Change: By producing content that you put in place.

Deep cross connection will be audited.

unknown: We will embrace a more innovative stance in our casting and script selection process, aiming to transcend the limits of traditional storytelling.

Speaker Change: Well.

Speaker Change: Great.

Speaker Change: In Norway.

Speaker Change: That's fine.

Yu Gong: I will now pass on to Mr. Gong, please go ahead.

Hudson.

Speaker Change: <unk> selection process aiming to trap that linear also traditional alright Tony.

Jun Wang: Mr. Jun Wang, RCFO, Mr. Xiaohui Wang, RCCO, Chief Compton Officer, Mr. Yu Tao Duan, Senior Vice President of our membership business, and Mr. Xiaohui Wang, Senior Vice President of Movies and Overseas Business.

Yu Gong: Hello and all right, thank you for joining us today. In the second corner, we saw intense competition for top content, well without a series of diversified premium content. Certain titles, stipend of math or high expectations, putting pressure on our financial results.

Yu Gong: Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Jun, who will go through the financials.

unknown: Secondly, regarding content scaling, we will closely monitor our user trends, and adopt a dynamic scaling strategy that is guided by user engagement and retention. This approach ensures that our content rollout is optimally timed to align with our audiences' preferences and view habits.

Speaker Change: Secondly, without even counting the scouting.

Speaker Change: So money, Sir all user taps.

Unknown Executive: After the prepared remarks, the management team will participate in the Q&A session.

Speaker Change: Uh huh.

Speaker Change: That makes the gambling strategy.

Speaker Change: Got it by user engagement.

Speaker Change: Retention.

Unknown Executive: Before we proceed, please note that the discussion today will contain forward-looking statements made under to say proper provisions of the US private securities litigation reform act of 1995.

Yu Gong: After a pursuit of hard work, we have overcome the short-term fluctuation in our content-late performance. As a matter of effect, we build the vibrant competition within the long-term video centers and interactive, which has increased its appeal over other entertainment formats, and also private as a valuable opportunity to review and revive all tactics. It helps us gain a better understanding of user preference and improve our business for future growth, we firmly believe that ultimately, as a fact, in the long-term video business, it depends on the level applied of premium content and the ability to achieve balance in both content quality and commercial benefits.

Speaker Change: Oh ensures that all content law.

Speaker Change: Alright.

Speaker Change: <unk> aligned with our audience.

Speaker Change: And the old habits.

unknown: Thirdly, in terms of managing our in-house studios, we are committed to enhancing the efficiency and effectiveness of our operation nodes at each key stage of the creative process.

Yu Gong: Certainly, in terms of managing our in-house students, we are committed to enhancing the efficiency and effectiveness of our creation notes at each key stage of the creative process. Our aim is to cultivate a more proactive cultural amount of talent in front of us.

Speaker Change: So in terms of messaging all in.

Speaker Change: We are committed to enhancing our efficiency.

Speaker Change: Net of all accretion.

Speaker Change: At each stage of the process.

unknown: Our aim is to cultivate a more proactive culture among our talent, They have ample freedom to fully unleash their artistic skills and host an environment where creativity can thrive.

Speaker Change: Aim is to cultivate a more proactive culture among habit.

Yu Gong: They have ample freedom to fully unleash their artistic skills and the foster and environment where creativity can thrive, moving on to the detailed content performance in the second corner. For dramas, our leadership in the real reality and the suspense, genres, remains and challenge our original drama to the wonder whether all of them perfectly demonstrated or successfully implanting artistic merits and mutual benefits generally. Effectional performance across all metrics was more impressive as the show's remarkable longitudinal effect with its influence defended well beyond the online domain as opposed to tourism to filming location in Xinjiang to effectively defend the landscape.

Speaker Change: Sure.

Speaker Change: They they have pulp freedom to fully unleash yeah.

Speaker Change: It scales.

I'll start.

Speaker Change: Government well creativity right.

unknown: Moving on to the detailed content performance in the second corner.

Speaker Change: We'll be up so that each other content permits in the affected in the corner.

unknown: For dramas, our leadership in the reality and suspense genres remains unchallenged. Our original drama, To the Wanderer, was another type, perfectly demonstrated our success in blending artistic merits and commercial benefits, generating exceptional performance across all metrics.

Speaker Change: Hello, Commerce, all either shift.

Speaker Change: The well is really unnecessary past January <unk>.

Yu Gong: With this in mind, our goal is to further improve the overall success rate of our content portfolio and the more important. The ability of content performance. In fact, as the summer season unfolds, our premium content has gained strong momentum, the release of a plan that titles that has internal edge, thin, thick, and a strange tail of calm down and deep season to come to a slow path, has boosted our key operating metrics and brought us back to the leading spot in terms of Michel in the key drama category in July, according to in lightened data.

Our original drama with a bump there.

Speaker Change: Hello.

Speaker Change: Perfect let demonstrate its also that the planting.

Speaker Change: Marius.

Speaker Change: Marshall benefits generate.

Speaker Change: Ah you're section nonperforming.

unknown: What's more impressive is the show's remarkable longitudinal effect, with its influence extending well beyond the online domain, as it boosts tourism to its filming location in Xinjiang, to effectively extend the vitality of the IP.

Speaker Change: The old matrix what's.

Speaker Change: What's more.

Speaker Change: Perhaps it is.

Speaker Change: So not all.

Speaker Change: A lot of goodwill.

Speaker Change: In fact with influence defendant well.

Speaker Change: That's all I have to met.

Speaker Change: As it's supposed to call it.

Speaker Change: Phil.

Speaker Change: A location issue.

Blake: Hey, Blake you Ted.

Yu Gong: We, we, why, why Paladin of the IP, we worked with creative team, tool host, or open field concert in Xinjiang, in July, which was widely claimed by users, sponsors, and the local culture and tourism bureau.

Blake: Hello.

Blake: Wet wipe holiday of the IP.

unknown: We worked with creative teams to host an open-field concert in Xinjiang in July, which was widely acclaimed by users, sponsors, and the local culture and tourism bureaus.

Blake: It's great to have Tim hostile.

Yu Gong: Notably, the second season of strange tales of calm down and deep become the 14th drama to bring up popularity index of 10,000 YT in addition to delivering high quality content, providing great user experience as than as another cornerstone of our business. As we remain committed in enhancing member benefits, we are also refining our content distribution and bring to bring free users a period of your experience while balancing commercial performance.

Blake: Oh and failed comps our Xinjiang in July which was a.

Speaker Change: I claim I use us swamped us under the local culture.

unknown: In addition, we further solidified our position as the go-to platform for the suspense genre by launching dramas, and Lost in the Shadows, a light-on-theater brand.

Yu Gong: In addition, we further solidified our whole position as the go-to platform for the pan-general by launching dramas, by launching a new series of dramas that will be released in the second quarter of the year. In the second quarter, we launched a total of 15 key titles in our movie channel, including multiple boxes of this. The key is that such an article 20 years ago, and the second, the title tag, title tag, tool, visualization art in our clouded animals will launch the 21 titles covering the latest and most popular, the article related, such as box office.

Blake: Zero.

Blake: Sure.

Speaker Change: Solid quad pole position as the go to platform for that.

Blake: General.

Blake: Launching drummer.

Blake: No one will component.

Blake: And lastly in the Shadows come yet.

Blake: Yeah.

Speaker Change: All right.

Brian: On sales here Brian.

unknown: With movies, we continued to outperform our peers according to in-patent viewership data. In the second quarter, we launched a total of 15 key titles in our movie channel, including multiple box office hits such as Article 20, We Are Strong, and Pegasus 2.

Speaker Change: It's movies, they continue to outperform our peer of money into it.

Speaker Change: In terms of the Akshay, if they share data.

Walter: Walter we elapsed Oh, 15 keys handles all movie channel, including multiple box office.

Unknown Executive: Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Yu Gong: Looking ahead, we are investing in multiple errors to drive the company's long-term sustainable growth. First of all, we are extensively applying AI to improve content creation or creation or efficiently and user experience. Secondly, we will further enhance our domestic business well-spending of spring in rather overseas market. First of all, we are using the IT content insurance and the FIP portfolio to explore that new alternative beyond membership and advertisement, such as the IP that work, TVs, the river tables and offline experiences. The initial tips align perfectly with our call value which centered on maximizing our IP values, some technical innovations and content creativity that is a step forward and effective future.

Speaker Change: Keith.

Speaker Change: Hum.

Speaker Change: Yeah, our salt.

Unknown Executive: Potential risks and uncertainties include, but are not limited to those outlined in our public violence with the SEC.

Speaker Change: Exactly.

Speaker Change: Is that true.

unknown: In our cloud cinema, we launched 21 titles, covering the latest and most popular self-article related, such as A Fox Opus, On Grounds in Europe, and Rue La Fontaine.

Speaker Change: Sure.

Speaker Change: Yes, I'll call. It anymore, we adopt a 'twenty one analysts covering the lithium most popular on cell article.

Unknown Executive: ITE does not undertake any application to update any forward-looking statement, except as required under applicable law.

That's okay.

Speaker Change: Okay.

Speaker Change: Oh Wow.

Speaker Change: Yeah.

Yu Gong: For original movies, we released various, various, such as, if that's a comedy, from my team future, Tianzhu Haiyang, and the fans cried, the fact, Cao Yi Chen Tai. For variety shows, our two flagship shows returned with the new season, namely, the Detective Adventure Season 4, Meng Ha. Under the graph of China, 2020, four, Xinhua Town, also which continue to be well recognized by other types. The Web of China 2004 also generated considerable membership venues for animations with a new tool invested in original Chinese animation and began to see encouraging initial results with enhanced production capabilities.

unknown: For original movies, we released various genres, such as disaster comedy, traumatizing future, Qianlu Haiyang, and suspense crime, Suspect, Chaoyi Shentan.

Speaker Change: Hum.

Yu Gong: I will now pass on to Mr. Gong, please go ahead.

Speaker Change: Alright, so mobius.

Speaker Change: Whereas a plethora of startups.

Speaker Change: It's actually Steve that's a comment there.

Speaker Change: <unk> field trials Timna.

Speaker Change: And that's pennants crime, that's packed how you shouldn't hot.

unknown: For variety shows, our two flagship shows returned with the new season, namely the detective-adventure season 4, Meng Tan, and The Wrath of China 2024, Xin Tuo Chang, both of which continued to be well-recognized by advertisers.

Speaker Change: Well we're at these shows.

Speaker Change: Our two flagship shows the 10th with the.

You'll see that namely the E positive advent trustees and Paul.

Yu Gong: Hello and all right, thank you for joining us today.

Speaker Change: Uh huh.

Speaker Change: And Oh, China, whose oven.

Speaker Change: Well, she's like Oh, let's hope it continues to be well along that path.

unknown: Sponsored ADR Class B Sponsored ADR Class C, Sponsored ADR Class D Sponsored ADR Class E

Speaker Change: <unk> assets.

Speaker Change: The rest of 2020.

Speaker Change: <unk> also generated considerable membership revenue.

Yu Gong: Now, let's move on to the performance of our call business segments. Starting with membership 36. Our primary goal for membership is to remain on driving the sustainable long-term brand new growth through top-notch content and the period of user experience. In the second corner, membership brand new was done by person and primary end to fluctuation in our company's latest performance, causing the attribution of pre-titled private members and the high-speed effect from last year's major I'm Guo Dailei, year-over-year.

Speaker Change: For animation we.

Speaker Change: How many of the tool e-commerce in China.

Speaker Change: And in Asia, and have begun to see entire energy in <unk>.

Actual results.

Speaker Change: You have to in cost per action comparability is.

Yu Gong: How dare you serve as a perfect example, Tong Guai Hitong? As it hit multiple platforms for IT original animation, it is our first original animation to break off of your narrative. Popularity and impact of 5,000 is very new, and a new user acquisition also reached new highs.

How are you.

Speaker Change: A perfect example.

Yu Gong: In the second corner, we saw intense competition for top content, well without a series of diversified premium content.

Speaker Change: At eight eight multiple.

Speaker Change: Well I E.

Speaker Change: And in Asia.

Speaker Change: If you have the all sourced orange, nor animation to break off your narrative.

Speaker Change: Popularity of Eaton Vance.

Speaker Change: Five solve that.

Speaker Change: And the yield user.

Speaker Change: <unk> also.

Speaker Change: New highs.

Yu Gong: As we enter the several locations in which it is a critical broadcasting video for online video platform, we are affected that our premium content has helped our great-game market leadership. We roll out premium content in both Asian and modern genres to appeal to a wide audience with particular focus on young viewers who have more free time to enjoy our offering during their holiday. So far, strange tales of Tang Dynasty isn't too under a lonely haorong journey, although we are all well received by audiences. Additionally, in the past genre, the drama, intelligence, and the theme for the young wine booth in Taiwan are both showcases, a strong user engagement.

Yu Gong: Certain titles, stipend of math or high expectations, putting pressure on our financial results.

Yu Gong: This was partially a fool, a fool, fueled by our displaying pricing strategy as we scale back on the overall promotions and discussions. All in half the number of benefits also played a major role effectively, encourage the members to sign up for a higher-term plan. Guo Dailei Wang, we note that in no way, a well-edited, so-called users, well-known to pay, notably, we launched an express package for 10 drummers in the second corner and gathered the highest number of casual purchases.

Speaker Change: Absolutely I'm sure.

Speaker Change: All of our locations.

Speaker Change: Mission critical.

Speaker Change: Critical role costing we'd all.

Speaker Change: A lot of video platform.

Speaker Change: That is that our premium content.

Rick gain market leadership.

Speaker Change: Oh.

Speaker Change: And content in both Asian, and Malden Jarrod.

Speaker Change: P R y.

Speaker Change: <unk> audience with a particular for a particular focus on young viewers.

Speaker Change: We'll have more free time between dry offering during the our holiday so.

Speaker Change: So far shrimp tails off pump in it.

Speaker Change: You then too.

Speaker Change: Along that our room, Germany will go well.

Yu Gong: Following the data in drummers calibrate, we plan to expand express package to other content categories such as the variety show and animation. We remain confident in the long-term outlook of our membership business, which is supported by several key factors. Firstly, we have successfully built a solid foundation of lawyer, sticky members. Secondly, content remains of copyrights, copyrights, of our membership world. And we are in the middle of introducing more diversity by the premium countries including college, broader user, co-hosts.

Speaker Change: Well received by audiences. Additionally, in the past general dotcom or Internet theme.

Speaker Change: For the young what Joe will touch.

Speaker Change: Oh, both showcase it.

Speaker Change: Our strong user engagement.

Yu Gong: Notably, strange tales of Tang Dynasty return for its second season, showcasing remarkable qualities that have led to a two-break IT popularity impact score of 10,000. The acclaimed heroes have demonstrated a pronounced long-tail effect. The third season has substantially applied the user's comfort and the membership venue generated by the first season, increasing them by about 6.4 and 10.4 with passive length. This drama also serves as an excellent example of our serialized approach to IP development. Incarnates by the effect of the first two seasons' production for the third season is set to begin shortly. Additionally, the IP starts to generate that worse remedial stream as it flows now into a wide domain, including entertainment, tourism, and consumer tools.

Speaker Change: Both Black Hills.

Speaker Change: Sales of pound and at that time.

Speaker Change: And secondly, the showcase.

Speaker Change: Quality that.

Speaker Change: Yes, it's true Greg I E. The popularity.

Speaker Change: Oh 10 stop it.

Speaker Change: The acclaimed sourdough demonstrate it.

Speaker Change: No.

Speaker Change: Her mouth long tail effect.

Speaker Change: So I can say is that.

Yu Gong: Furthermore, we are committed to enhancing our operational strategy to improve membership accreditation and retention. Initiatives include what reaching broader demographic growth by finding a health channel and utilizing a wide-row social marketing tool. Secondly, improving conversation rates by launching marketing initiatives directly tied to popular content of the season such as health effects, a member package, express package, and a contest-see experience program in both countries, providing value for many services for long-term and high-tier plan subscribers such as inclusive offline events in the second corner of the video, organized 17 offline events and received positive member feedback, building on the strong user reception from last year.

Speaker Change: Sure that uplift that you saw that in the membership that you'll generate it.

Is that increasing.

Pat: All six bulk on the tenfold with Pat.

Speaker Change: People there.

Speaker Change: This summer also services.

Speaker Change: Excellent.

Speaker Change: Oh, sorry.

Speaker Change: Our approach to IP development.

Speaker Change: Incontinent supplies us.

Speaker Change: The first of the flu season.

Speaker Change: For the third if that's what began trust me.

The stocks have to generate that worse than you think.

Speaker Change: <unk>.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: He.

We'll all find demand including entertainment.

Speaker Change: And.

unknown: In a strategic move to capitalize on this success, we have launched an IP-based VR development in key cities such as Beijing, Shenzhen, and Xi'an. This initiative aims to broaden the impact and presence of our original content, extending beyond traditional screens.

Yu Gong: In a strategy, move to capitalize on this success, we have launched the FBES. We are sheltered in key details, such as Beijing, Shenzhen, and Xi'an. This initiative aims to broaden the impact on the presence of our original content, extending beyond traditional screens. Beyond drivers are creating a table that creates a table that is spreading into new categories. And then, a brand new digital IT work is shown. IP has gathered users' praise for its innovative formats and recorded a peak IT popularity index of over 7,000. Additionally, the King of Standard Committee, Xi Ju Zhuang, Zhang Kouji, market IT's first exploration into Standard Committee.

Speaker Change: Consumer foods.

Speaker Change: In our strategy.

Speaker Change: More of a tool capitalized.

Speaker Change: This success, we have lost a few benefits B R E.

Speaker Change: Keith.

As Beth you should get on the shelf.

Speaker Change: This unique short hip Institute broadens the impact on the presence of all our haynesville content extending beyond that.

Yu Gong: Our annual offline flagship events, the 2024 H.E.S, screen time general fee is set for its comeback in December 7th this year in Macau. The perceived value of our members was even further amplified by our very first 17th IT member festival. In the same event, we offered a pre-link membership to come, and housed a seven-hour live broadcasting to promote over 500 and 30 titles in our content applied. More than 4 days, the celebrities had depended the live streaming event and generated over 30 million views in the future that to live.

Speaker Change: Additional screens.

unknown: Beyond dramas, our creativity is expanding into new categories.

Speaker Change: Beyond the drama.

Speaker Change: Great table.

Speaker Change: Pivoted.

Speaker Change: <unk> strategy into new categories, and Deb or Brian O'driscoll, Ikea, whereas you saw IP has gotten their users.

unknown: Ten Days, a brand new original IT reality show IP, has gathered users' praise for its innovative format and recorded a peak IT popularity index of over 7,000.

Speaker Change: As for it.

Speaker Change: In the retail format.

Speaker Change: Recall that our peak year popularity index of over seven at all of it.

unknown: Additionally, the king of stand-up comedy, 喜剧之王三口记, marked iQIYI's first exploration into stand-up comedy.

Speaker Change: Additionally, the chemo done a comment there.

Speaker Change: As usual some culture.

Speaker Change: Mark.

Speaker Change: For.

Speaker Change: Collaborations.

unknown: The show has received encouraging initial feedback, standing out among the comedy variety offerings this summer.

Speaker Change: Hum.

Yu Gong: The show has received an encouraging initial feedback, sending out among the committee variety offerings this summer.

The show has received encouraging initial feedbacks.

Speaker Change: Among the common offering.

Speaker Change: I'll frame this summer.

unknown: Moving on to our content supply for dramas, we expect the availability of premium content supply to be meaningfully enhanced.

Yu Gong: Moving on to our content supply for drummers, we expect the stability of premium content supply to be meaningful in hand. Meanwhile, we are first attracting the production of Asian customers, idol drummers, and the modern idol drummers, both targeting female audiences. Some of the much anticipated works in this genre include Gou Yif, Su Fangguan, A Moment Back from Our New Song, Lansang in Winter, Dong Zhiru, No Mi Night, Timeline Love, C.S. Xuan, Fang of Huoteng, Zhang Honghui, Mu, Ying Briser, Bai Yue, Fan Xing, and a lot of a divide, three. China is a food in the rural state, and the spread of the country.

Speaker Change: All content.

Speaker Change: For dramas.

Speaker Change: Pat.

Yu Gong: The 17th IT Membership Festival is set to be an annual event, inclusive to our members. It is an event to discover positive deals and enjoy defending everything. This festival will not only underscore the substantial value we provide to our members, but we also serve as a key opportunity to boost our brand influence.

Speaker Change #100: The ability of premium content to supply it to be meaningful.

unknown: Meanwhile, we are fast-tracking the production of Asian custom idol dramas and modern idol dramas, both targeting female audiences.

Speaker Change #100: Meanwhile, we.

Attacking the production of Asian customer, Idaho cameras on the model.

Speaker Change #100: Adult drama.

Speaker Change #101: Talking to your email.

unknown: Some of the much-anticipated works in this genre include, We are preparing to launch more innovative shows, including The Moon is Shining, which is set to release later this month.

Speaker Change #101: Some.

Speaker Change #102: The much anticipated works in this genre.

Paul Stephen: So Paul what.

Speaker Change #103: Ah moment basketball eyewash from lost some hearings and trial don't.

Yu Gong: After a pursuit of hard work, we have overcome the short-term fluctuation in our content-late performance.

Yu Gong: Moving on to content, we are overcome the short-term flagship Asian in the content set flight performance in Q2 and learned a lot from this short-term setback. So the impact on this of the overall project, we have gained valuable insight to guide our content creation and operation in the future. First of all, we respect two content creation where we are craft more and higher quality content that means the appetite of mainstream audiences.

Paul Stephen: One trip.

Speaker Change #104: No not that low.

Speaker Change #104: Yes.

Speaker Change #104: From a fortunate.

Speaker Change #104: <unk>.

Speaker Change #104: In brief though.

Speaker Change #104: Are you at.

Speaker Change #104: I assume on the law.

Yu Gong: As a matter of effect, we build the vibrant competition within the long-term video centers and interactive, which has increased its appeal over other entertainment formats, and also private as a valuable opportunity to review and revive all tactics.

Speaker Change #105: Got it.

Speaker Change #105: Right.

Speaker Change #105: Sure.

Speaker Change #105: Scenario.

Speaker Change #105: You bet.

Speaker Change #106: Will it hit and that's S pants category all of them.

Yu Gong: All audiences can participate in that work with five content offerings, including form to be the one. Fan Xing, Gou, Northwater, Baixuan, the fell-ass season two, Wu Suo, diversified the article he's on the work, which in itself produced the idea of the field are invited to be released in the autumn, including Jing, Pinau, and a broken wind, a blood-scented, a blood-scented.

Speaker Change #105: Okay.

Speaker Change #105: But that work with content offering including form too.

Yu Gong: It helps us gain a better understanding of user preference and improve our business for future growth, we firmly believe that ultimately, as a fact, in the long-term video business, it depends on the level applied of premium content and the ability to achieve balance in both content quality and commercial benefits.

Speaker Change #107: The what.

Our school North war by truck.

Speaker Change #107: The cell that isn't too slowly.

Speaker Change #108: Just a final poll if that from now on.

Yu Gong: With this in mind, our goal is to further improve the overall success rate of our content portfolio and the more important. The ability of content performance.

Yu Gong: In particular, we plan to broaden our fellow with offering that especially appeal to our female audience to maintain our age in the concentrate in both the field of content creation. We aim to further enhance our ability to tap into popular social trends, thereby producing content that is tabulation, a deeper connection with our audiences. We will engrave more innovative aspects in our casting and the script selection process aiming to transcend the limits of the traditional tolerance.

Speaker Change #108: Right.

Speaker Change #108: Oh, it without really more at once we find the article Keith.

Speaker Change #109: I'll pass along.

Speaker Change #109: Self or geoscience here often both fields.

Speaker Change #110: I have yet to be released in cells, including T.

Speaker Change #110: Hum frozen right.

Speaker Change #110: Uhm.

T shirts interests.

Yu Gong: For variety shows, I have a way planned to release a greater number of titles in the second half of the year compared to the first. Building on the moment of ten days and the theme of the center-up comedy. We are pre-carrying to launch more innovative shows, including the moon and shining the solar U.S., which is effective to release later this month.

Our fall where in here, so I, we claim to be leased up refund umbrella.

Speaker Change #111: Second half of the year comparison was up first.

Speaker Change #111: Awesome.

Speaker Change #111: 10 days.

Speaker Change #111: Over the coming days.

Speaker Change #111: We have re upped.

Speaker Change #112: How are you.

Speaker Change #112: No more in.

Speaker Change #113: Nobody's have shows including the more Chinese travelers.

Yu Gong: Secondly, without encountering the scouting, we will throw less money here, or use a trend and adopt a dynamic gathering strategy that is guided by user engagement and retention. This approach ensures that our content law out is often valid, and time to align with our audiences is crafted with and we will have it. Certainly, in terms of managing our in-house students, we are committed to enhancing the efficiently and effectiveness of our creation notes at each key stage of the creative process. Our aim is to cultivate a more proactive cultural amount of talent in front of us.

Speaker Change #113: You bet.

Speaker Change #115: It's absolutely later this month.

unknown: Moving on to animation, we expect to see a third entitled show in the second half of the year, with increased diversification in general. We plan to launch 8 to 14 additional seasons of key original works compared to the first half.

Yu Gong: Moving on to animation, we expect to see a surge in title sharing the second half of the year, which increased that year, and when that worth the vacation in general, we plan to launch 8 to 14 additional seasons of key original works, compared to the first half. Alongside, how dare you, we, Chen Li Tong, we have also launched the final recall, the legend of Kai Luo, Chen Wu Tianzun, and a moment by forever, which shows its IP with an upcoming general series of the same name, the action packet, anime, super cute, actual ordinary chapter, totally, totally, it's also that to release soon.

Speaker Change #116: Moving on to animation.

Speaker Change #116: We have to see us.

Speaker Change #116: And Ted will share in the second half of the year.

Speaker Change #117: <unk> increased at that time.

Steve: Hi, Steve.

Speaker Change #119: The fixation in Giro we plan to launch eight to 14 additional seasons of key Oriental works at comparatively low for us of how alongside how dare you.

unknown: Alongside How Dare You with Cheng Halitong, we have also launched the fanatical The Legend of Kyle Lott, and A Moment But Forever, which shares its IP with an upcoming drama series of the same name.

Speaker Change #119: Tony Paul we have full adoption.

On the call.

Speaker Change #119: Legend of highest law shovel cancer.

Speaker Change #120: And Ah moment forever.

Speaker Change #120: <unk> shelves is IP.

Speaker Change #120: Okay.

Speaker Change #120: Got in most areas of the Internet.

unknown: The action-packed anime Super Cube Extraordinary Chapter 超能力方超繁篇 is also set to release soon.

Speaker Change #120: Action packet enemy so Brookfield.

Yu Gong: They have ample freedom to fully unleash their artistic skills and the foster and environment where creativity can thrive moving on to the detailed content performance in the second corner. For dramas, our leadership in the real reality and the suspense, genres, remains and challenge our original drama to the wonder whether all of them perfectly demonstrated or successfully implanting artistic merits and mutual benefits generally. Effectional performance across all metrics was more impressive as the show's remarkable longitudinal effect with its influence defended well beyond the online domain as opposed to tourism to filming location in Xinjiang to effectively defend the landscape.

Speaker Change #120: Actual open their ranch have told them, Hey, Paul told them yet.

Speaker Change #120: Absolutely.

unknown: On a separate note, iQIYI has become one of the key content sources for traditional TV media, covering offline such as CCTV, satellite TV, and regional TV stations, thanks to our enhanced offerings of original content.

Yu Gong: A separate note at year has become one of the key content sources for traditional TV media, covering such as CCTV, satellite TV, and regional TV stations, thanks to our enhanced offering of original content. In just the first half of 2021, we have distributed about 50 drama series, really influencing the long tail effect of premium content. The value of our IP has been even further at least by exploring diversity files, monetization streams, for example, from Chinese radio from the dramas, from the spirit, much maker, Ran Meng Pat, Wu Yao Xiaohong, Yang Yu Hong Tian, which are new high for IT or new dramas.

Speaker Change #121: On a separate note at year has become one of the key content sources for traditional TV.

Covering off of that.

Speaker Change #121: T V. That's why TV and <unk> TV station.

Speaker Change #121: Yes.

The offering of original content in just the first half of 2000 and.

unknown: In just the first half of 2021 alone, we have distributed about 50 drama serials, reinforcing the long-tail effect of premium content.

On the floor.

Speaker Change #122: It's tripled in Humboldt.

<unk> dropped from a Saturday to us.

Speaker Change #122: In focusing the long tail of premium content.

unknown: The value of our IP has been even further enlisted by exploring diversified monetization streams, for example, franchising granules from the dramas Fox Spirit Matchmaker, Rainbow Pact, Wu Yao Xiao Hong Jiang Yu Hong Tian, and reaching a new high for iQIYI original dramas. We have also worked with established toy brands for IP licensing, joint product customization, and marketing.

Speaker Change #122: No that was all to all IP.

Speaker Change #122: And even further.

Bonnie: Hi, Bonnie.

Bonnie: Barring that works at five monetization streams.

Bonnie: Both transient revenue from their Dropbox Fox Spirit matchmaker that in the past, we all Sean.

Bonnie: Yes.

Bonnie: A new high.

Yu Gong: We, we, why, why Paladin of the IP, we worked with creative team, tool host, or open field concert in Xinjiang, in July, which was widely claimed by users, sponsors, and the local culture and tourism bureau. In addition, we further solidified our whole position as the go-to platform for the pan-general by launching dramas, by launching a new series of dramas that will be released in the second quarter of the year. In the second quarter, we launched a total of 15 key titles in our movie channel including multiple boxes of this.

Bonnie: Yeah.

Bonnie: Farmers.

Yu Gong: We have also worked with, in combination, a twi graph for IP licensing, a swine product, a customer liation, a customer micro-culture. Total revenue was RIP 1.5 billion, down 2% year over year. Performance has remained as a highlight of the culture, growing at a healthy rate over year. Key sector such as e-commerce and internet services demonstrated solid performance, with e-commerce revenue from the June 18th Shopping Festival growing 80% annually, an annual from internet services or 30% annually. The solid result in performance as it's also a fair reflection of our So upgrading ADR Classical Mechanism and re-inforced by beating aggressors, we have further enhanced the monetization efficiency of traffic and ROI for our clients.

Speaker Change #124: We have also walk Tobey.

Speaker Change #124: There.

Speaker Change #124: Why grass well IP licensing.

Speaker Change #124: Doctor customer lines each.

Speaker Change #125: Our cost to maintain.

Speaker Change #125: Sure.

Speaker Change #125: Democracy.

unknown: Moving on to the advertising business, in the second quarter, total revenue was RMB1.5 billion, down 2% year-over-year.

Speaker Change #126: We'll be honest.

Speaker Change #126: Our testing business.

Speaker Change #127: Second quarter total revenue was RMB one pump.

Speaker Change #127: Hum.

Speaker Change #127: The person.

unknown: Performance has remained as a highlight of the quarter, growing at a healthy rate year-over-year. Key sectors such as e-commerce and Internet services demonstrated solid performance, with e-commerce revenue from the June 18 shopping festival growing 80% annually and revenue from Internet services growing 30% annually.

Speaker Change #127: Affirmative apps remained as a highlight of the Parker well.

Speaker Change #127: At a healthy rate.

Speaker Change #127: Keith sector, such as <unk>.

Speaker Change #127: E Commerce and the Internet.

Speaker Change #128: I've been straight at Salt Lake affirm that we have.

Speaker Change #129: E Commerce revenue from the June 18th shopping festival growing 80 person on the ground yield from Internet services or so of your person annually.

unknown: The solid result in performance is also a clear reflection of our technical advancement. Through upgraded ad placement mechanism and reinforced smart bidding algorithm, we have further enhanced the monetization efficiency of traffic and the ROI for our clients.

Speaker Change #129: Solid results in performance.

Yu Gong: The key is that such an article 20 years ago, and the second, the title tag, title tag, tool, visualization art in our clouded animals will launch the 21 titles covering the latest and most popular, the article related, such as box office. For original movies, we released various, various, such as, if that's a comedy, from my team future, Tianzhu Haiyang, and the fans cried, the fact, Cao Yi Chen Tai. For variety shows, our two flagship shows, returned with the new season, namely, the Detective Adventure Season 4, Meng Ha.

Speaker Change #129: It's also.

Speaker Change #129: Flexion.

Paul Stephen: Hi, Paul.

Yes.

Paul Stephen: Great.

Paul Stephen: Basement B kinase.

Paul Stephen: Well smile BD across them.

Speaker Change #130: Other income the monetization efficiency of traffic.

So our.

Speaker Change #131: Well I'll try.

unknown: Additionally, our AI tools now cover broader industries, enabling more efficient ad production and driving AI power ad revenue by 150% sequentially.

Yu Gong: Additionally, all AI tools now cover broader industries, enabling more efficient ADR production and driving AI part at value by 150% sequentially. All brands at value was done annually, mainly due to fuel where it shows lost. But that are creamy, creamy content, a panel unit will affect brand and road hazards, with 59% of the brand new stepping from content targeted at. In particular, our major drivers achieved notably double-digit annual growth in ground yield.

Speaker Change #131: Additionally.

Speaker Change #131: Our AI tools now I'll cover our browser.

Speaker Change #131: We are enabling more efficient patent protection driving AI par.

That deal.

Uh huh.

Speaker Change #131: 58% sequentially.

unknown: For brand ads, revenue was down annually, mainly due to fewer variety shows launched. Despite that, our premium content continues to attract brand advertisers, with 59% of the revenue stemming from content-targeted ads.

Speaker Change #131: Brent apps revenue was down.

Mainly due to fewer <unk>.

Speaker Change #131: He shows launched.

Speaker Change #132: Is that a premium premium.

Yu Gong: Under the graph of China, 2020, four, Xinhua Town, also which continue to be well recognized by other types. The Web of China 2004 also generated considerable membership venues for animations with a new tool invested in original Chinese animation and began to see encouraging initial results with enhanced production capabilities. How dare you serve as a perfect example, Tong Guai Hitong? As it hit multiple platforms for IT original animation, it is our first original animation to break off of your narrative.

Speaker Change #131: Hunton.

Speaker Change #131: No.

Bryan: Back to Bryan Bryan and West Texas.

Bryan: With 15, 9% of net revenue.

Bryan: From content targeted apps.

unknown: In particular, our major drivers achieved notably double-digit annual growth in revenue.

Bryan: In particular.

Bryan: All major commerce achieved notable at double.

Bryan: Double digit annual.

unknown: The performance of the June 18th shopping festival was also in line with our expectations.

Bryan: In brownfield.

Yu Gong: The performance of the June 18th shopping festival was also in line with our ex-patients.

Performance of the June 18th Shopping Festival was also in line with.

Bryan: <unk>.

Bryan: Patients.

unknown: Moving on to technology and products, we remain committed in advancing technology innovation as it's crucial in improving content production, user experience, and operational efficiency.

Yu Gong: Moving on to technology and products, we remain committed in advancing technology innovation, as it is crucial in croaking content production, user experience, and operational efficiency. For example, our workflow production technology used to be limited to fantasy genres. This caught our marks and exciting briefs soon as we successfully extended its application in stereo territory, applying it within the reality-same drama for the first time. We have also made meaningful programs with our in-house pre-village pre-wetualization technology. This tool allows for the rapid design and virtualization of things and the shows before actual filming begins. We have applied this across multiple flagship projects, and it has led to life ingress in production efficiency.

Bryan: Moving on to technology and the progress we have made commitments.

Bryan: <unk> immunology innovations.

Bryan: It's crucial improving content and production yields are experiments.

Bryan: Operational efficiency.

unknown: For example, our virtual production technology used to be limited to fantasy genres. This quarter marked an exciting breakthrough as we successfully extended its application into new territory, deploying it within the reality-themed drama for the first time.

Bryan: Paul all watchful production technology.

Bryan: It eliminates two fun to see arrows. This caught her marks an exciting groups as soon as we are successful they intended.

Yu Gong: Popularity and impact of 5,000 is very new and a new user acquisition also reached new highs. As we enter the several locations in which it is a critical broadcasting video for online video platform, we are affected that our premium content has helped our great-game market leadership. We roll out premium content in both Asian and modern genres to appear to a wide audience with particular focus on young viewers who have more free time to enjoy our offering during their holiday.

Bryan: Location.

Yu Gong: In fact, as the summer season unfolds, our premium content has gained strong momentum, the release of a plan that titles that has internal edge, thin, thick, and a strange tail of calm down and deep season to come to a slow path, has boosted our key operating metrics and brought us back to the leading spot in terms of Michel in the key drama category in July, according to in lightened data.

Bryan: Paris.

Bryan: It's pleasing that as well.

Bryan: Alright.

Bryan: Drama for the first time.

unknown: We have also made meaningful progress with our in-house pre-virtualization technology. This tool allows for the rapid design and virtualization of scenes and shots before actual filming begins. We have applied this across multiple flagship projects, and it has led to a large increase in production efficiency.

We have also made meaningful progress with.

Bryan: Our in house preview.

Speaker Change #134: What's sort of lesion technology this tool.

Bryan: To allow us.

Bryan: It's fine.

Bryan: His leadership.

Theme on the shelves before actual filming begins.

We have applied.

Bryan: Multiple flagship project in Manhattan.

Bryan: Later.

Bryan: Great in production efficiency.

unknown: Our in-house developer platform continues to demonstrate its power.

Yu Gong: So far, strange tales of Tang Dynasty isn't too under a lonely haorong journey, although we are all well received by audiences additionally in the past genre, the drama, intelligence, and the theme for the young wine booth in Taiwan are both showcases, a strong user engagement. Notably, strange tales of Tang Dynasty return for its second season showcasing remarkable qualities that have led to a two-break IT popularity impact score of 10,000. The acclaimed heroes have demonstrated a pronounced long-tail effect.

Yu Gong: Our in-house developed platform continues to demonstrate its power. Our in-house IT content management system has been in operation for over two years.

Bryan: Oh in the mill up to platform continues to demonstrate its par.

unknown: Our in-house IT content management system has been in operation for over two years. This sophisticated data-driven system provides substantial support to management teams and producers in project managing, effectively elevates content quality and success rate. Now this management system has covered all our projects in drama, movie, and animation.

Our E Com <unk> content management system has been in operation for well.

Bryan: Well over two years.

Yu Gong: So please take it. Data driven system provides substantial help to management team and the producers in project managing effective ways out of its content quality under that threat. Now, this management system has covered all our projects in drama, movie, and animation. Another high efficient system is hot intelligence production management system, which is widely used by a production crews for that works on side equipping them with frontline production tool and production management capabilities. In the second author alone, 21 dramas adopted the system today to date. This system has been used in 67 ITU dramas and, again, widespread joint coordination for effective needs.

Speaker Change #135: So saw ticket.

Speaker Change #135: Our system provides substantial.

Speaker Change #136: The management team and the producers cortex.

Speaker Change #135: Cortex managing.

Speaker Change #135: Effectively.

Yu Gong: Notably, the second season of strange tales of calm down and deep become the 14th drama to bring up popularity index of 10,000 YT in addition to delivering high quality content, providing great user experience as than as another cornerstone of our business.

Speaker Change #137: It's come to in the call it a.

Speaker Change #135: The threat.

Speaker Change #135: No its management assistance has covered.

Speaker Change #138: All protests in drama movie and animation.

unknown: Another high-efficiency system is our intelligent production management system, which is widely used by production crews that work on site, equipping them with front-line production tools and production management capabilities.

Speaker Change #138: Another high efficient assistant.

Speaker Change #138: Intelligent production management.

Speaker Change #138: As widely used to buy and protection pools well.

Yu Gong: The third season has substantially applied the user's comfort and the membership venue generated by the first season, increasing them by about 6.4 and 10.4 with passive length. This drama also serves as an excellent example of our serialized approach to IP development. Incarnates by the effect of the first two seasons' production for the third season is set to begin shortly. Additionally, the IP starts to generate that worse remedial stream, as it flows now into a wide domain, including entertainment, tourism, and consumer tools.

That works onsite attacks.

Speaker Change #138: Equipping them with Fox line protection tool.

Speaker Change #138: Production management of comparability.

unknown: In the second quarter alone, 21 drummers adopted the system to date.

In the second quarter alone and who want a drummer.

Speaker Change #138: <unk> hit the system.

Speaker Change #138: Yeah.

Speaker Change #138: With that.

unknown: This system has been used in 67 ITE drummers and gained widespread recognition for its effectiveness.

<unk> has been used to.

Speaker Change #138: E Commerce.

And West Pratt Greg Carbonation.

Greg: In fact his name.

Yu Gong: In addition, we have expanded the use of AI across several aspects covering production assessments, creating activity, marketing, and distribution. This broad application has meaningfully encouraged the content production on the operation of efficiencies. For example, AI has supported learning full casting and the decision making during the initial phase of product development. AI also allows us to know how our advertising innovation for focus greatest might make a random impact with integrated virtual culture and things into added materials. Substantially, increasing add custom outcomes. This new app format will welcome by advertisers and opened up and poor possibility. For content marketing, we have implied AI model modules to analyze of cloud information and generate key marketing points to improve marketing efficiency.

unknown: In addition, we have expanded the use of AI across various aspects, covering project assessment, creativity, marketing, and distribution. This broad application has meaningfully enhanced content production and operational efficiency. For example, AI has supported revenue forecasting and decision-making during the initial phase of project development.

Greg: Yes.

Speaker Change #140: Have you expanded the use of AI.

Patents covering protect.

Speaker Change #140: Estimates.

Speaker Change #140: Activity.

Speaker Change #140: Marketing and distribution.

Speaker Change #140: Distribution.

Speaker Change #141: This broad application have meaningfully enhanced our comes into production.

Speaker Change #141: Operational efficiency.

Yu Gong: In a strategy, move to capitalize on this success, we have launched the FBES. We are sheltered in key details, such as Beijing Shenzhen and Xi'an. This initiative aims to broaden the impact on the presence of our original content, extending beyond traditional screens. Beyond drivers are creating a table that creates a table that is spreading into new categories. And then, a brand new digital IT work is shown. IP has gathered users' praise for its innovative formats and recorded a peak IT popularity index of over 7,000. Additionally, the King of Standard Committee, Xi Ju Zhuang, Zhang Kouji, market IT's first exploration into Standard Committee. The show has received an encouraging initial feedback sending out among the committee variety offerings this summer.

Speaker Change #141: Yeah.

Speaker Change #142: I suppose that Neil full casting and the decision making.

Speaker Change #142: Niche or fifth of product development.

unknown: AI also drives our advertising innovation.

Speaker Change #142: Also.

Speaker Change #142: <unk>.

Speaker Change #143: Advertising North Asia.

unknown: For the focus-grade marketer revenue pact, we integrated virtual characters and scenes into ad materials, substantially increasing ad costume outcomes. This new ad format was welcomed by advertisers and opened up ample possibilities for content marketing.

Mark: That's great Mark make.

Mark: Revenue impact.

Mark: Great watchful parent child.

In tools and materials.

Mark: That shortly.

Mark: Pacing out accustomed.

Mark: Outcome.

Speaker Change #145: This new format, well well come otherwise.

Speaker Change #145: Opened up.

Speaker Change #145: Wholesale <unk> well.

Speaker Change #146: While cognizant of Oxy, we have.

unknown: We have employed AI among other models to analyze and plot information and generate key marketing points to improve marketing efficiency.

Speaker Change #146: In slide eight.

Speaker Change #146: Amongst all the modules and the.

Speaker Change #146: <unk> is a cloud inflammation.

Speaker Change #146: John the risk key marketing points to improved marketing efficiency.

Yu Gong: Finally, for our business of performance in regions outside of mainland China, for the second culture, we attend solid performance in our overseas business, with both total reviews and membership schedule to grow annually and sequentially. The inference for from C-drama and IT's original content continue to stress it. By the 30% annual increase in membership annual from top C-dramas during the culture, all locations, all local location attempts have also done to build work. The accumulated, accumulated a number of views of our original type drama might then be in. The application racked first in a number of markets, including the U.S.

unknown: Finally, for our business outperformance in regions outside of mainland China, over the second quarter, we sustained solid performance in our overseas business, with both total revenues and membership revenues continuing to grow annually and sequentially.

Speaker Change #146: Okay.

Speaker Change #146: While our business performance.

Speaker Change #146: Performance in regions outside of mainland.

Latin China.

Oh and the second culture.

Speaker Change #146: A subtenant solid permanently.

Speaker Change #146: Or is this.

Speaker Change #146: Both total revenues and the membership revenue.

Yu Gong: Moving on to our content supply for drummers, we expect the stability of premium content supply to be meaningful in hand. Meanwhile, we are first attracting the production of Asian customers, idol drummers and the modern idol drummers, both targeting female audiences. Some of the much anticipated works in this genre include Gou Yif, Su Fangguan, a moment back from our new song, Lansang in Winter, Dong Zhiru, No Mi Night, Timeline Love, C.S. Xuan, Fang of Huoteng, Zhang Honghui, Mu, Ying Briser, Bai Yue, Fan Xing, and a lot of a divide, three.

Speaker Change #146: Overall annual and sequential there.

unknown: The influence from seed drummers and ITE's original content continues to strengthen. As evidenced by the 30% annual increase in membership revenue from top seed drummers during the quarter, our localization attempts have also started to build up.

Speaker Change #146: The influence.

Speaker Change #147: From seed drama.

Speaker Change #148: Oh additional content continuum.

Speaker Change #149: <unk> dressing I haven't danced.

Speaker Change #148: Okay.

Speaker Change #150: 70% annual increase in membership revenue upfront.

Thomas: Thomas during the call.

Thomas: No no all location.

Thomas: All local.

Speaker Change #152: Asia has also stopped tool belt.

unknown: The accumulated number of views of our original Thai drummers might stand in.

Speaker Change #152: The accumulate.

Speaker Change #152: <unk> a number of deals.

Speaker Change #153: Hi drama.

unknown: Zhiyue Qisheng ranked first in a number of markets, including the US, Canada, and the UK.

Speaker Change #152: Inc.

Speaker Change #154: <unk> ranked first in a number of markets, including the U S, Canada and the UK.

Yu Gong: Canada and UK. We have also made solid progress in animations. How dare you have attend the mathematical worship and venue on our overseas set, which historic or high among all IT or to all Chinese enemies? and even also performed top Chinese animation in several countries.

unknown: We have also made solid progress in ad missions.

Yu Gong: China is a food in the rural state, and the spread of the country. All audiences can participate in that work with five content offerings, including form to be the one. Fan Xing, Gou, Northwater, Baixuan, the fell-ass season two, Wu Suo, diversified the article he's on the work, which in itself produced the idea of the field are invited to be released in the autumn, including Jing, Pinau, and a broken wind, a blood-scented, a blood-scented.

Speaker Change #154: <unk> also made solid progress on the beach and <unk>.

unknown: How DRU has attained remarkable viewership and revenue on our overseas site, which is a historical high among all ITE original Chinese ad missions.

Speaker Change #155: Uh huh.

Speaker Change #155: In basketball the ownership on the VAT.

Our seats that rich.

Speaker Change #155: Hi.

Speaker Change #156: Oh, all Chinese Indonesia and.

unknown: Sponsored ADR Class B Sponsored ADR Class C, Sponsored ADR Class D Sponsored ADR Class C Sponsored ADR Class D, Sponsored ADR Class D Sponsored ADR Class C Sponsored ADR Class D

Speaker Change #156: The Eva performance hub.

Speaker Change #156: Jeff.

Speaker Change #156: Sure.

Speaker Change #156: Yes.

Yu Gong: Loveraging our premium content, they have expanded local partnership to boost global penetration and monetization of efforts, including deep-depending collaboration with telecom operators in overseas markets to enrich bond loan products and strengthen promotion activities. For example, we have partnered with ITSILAT, the latest telecom company in the Middle Eastern and North Africa market for stream ITS content on their OTT platform. This partnership will further enhance the influence of three-drama VR beyond the Asian market. In the future, we will continue to enhance the influence of the IT brand overseas with premium C-POP content in key markets.

Speaker Change #157: Leveraging our premium content.

Speaker Change #158: Finally at local pulmonary tollbooths.

Speaker Change #158: To boost our global penetration and the money is Asia.

Speaker Change #158: Our efforts include.

Speaker Change #159: Deep dip.

Speaker Change #159: Depending.

Speaker Change #159: Collaboration.

Speaker Change #159: Operators in overseas markets to enrich bundling products and our strategy promotional activity as well.

Speaker Change #159: Hum.

Yu Gong: For variety shows, I have a way planned to release a greater number of titles in the second half of the year, compared to the first. Building on the moment of ten days and the theme of the center-up comedy. We are pre-carrying to launch more innovative shows, including the moon and shining the solar U.S., which is effective to release later this month. Moving on to animation, we expect to see a surge in title sharing the second half of the year, which increased that year, and when that worth the vacation in general, we plan to launch 8 to 14 additional seasons of key original works, compared to the first half.

Speaker Change #159: And.

Speaker Change #159: Is that saying that one of them.

Speaker Change #160: Lobbyist telecom come and dance.

Speaker Change #160: Eastern North African market flow stream achieves content on their OTT platform.

Speaker Change #160: This partnership.

Speaker Change #160: Further enhancements that influence.

Speaker Change #161: I'll see drama.

Beyond <unk> market in the future, we will continue to enhance the influence of the.

Brian: Brian the OSC it's.

Brian: Premiums the pump content in key markets.

Yu Gong: Accelerate production of local content and export diversified IP monetization opportunities.

Celebrate protection of local content.

Brian: You've caught at worst they find the IP.

Brian: Asia opportunity.

Yu Gong: In summary, looking ahead, we are dedicated to pursuing our long-term growth with a sustainable approach. We will grow out more diversified premium content and apply innovative technologies more intensively and continue to enhance our team and create a territory under exact rotation capabilities with that. We believe the flywheel effect of ITS content ecosystem will drive our long-term growth.

Speaker Change #162: In summary, looking at how we are.

Speaker Change #163: Yes true.

So our long term growth.

Yu Gong: Alongside, how dare you, we, Chen Li Tong, we have also launched the final recall, the legend of Kai Luo, Chen Wu Tianzun, and a moment by forever, which shows its IP with an upcoming general series of the same name, the action packet, anime, super cute, actual ordinary chapter, totally, totally, it's also that to release soon. A separate note at year has become one of the key content sources for traditional TV media, covering of such as CCTV, satellite TV, and regional TV stations, thanks to our enhanced offering of original content.

Speaker Change #164: Is that a sensible approach bluebell grew up more that Bret that once they fly.

Speaker Change #164: Premium content up in Norway.

Speaker Change #165: Technology is more expensive.

Speaker Change #165: <unk> continued to enhance our team.

Speaker Change #165: Great.

Speaker Change #165: Exact mutation appropriate enhanced with that build.

Speaker Change #165: The flywheel effect of ICU content ecosystem well dry.

Jun Wang: Now let me pass it on to Jun to go through our financial performance

Speaker Change #166: Some girls.

Jun Wang: Now, let me pass the answer to your total sum of national performance.

Speaker Change #167: Now let me pass the answer just to go through our financial performance.

Jun Wang: Thanks, Mr. Gong and hello everyone.

Jun Wang: Thanks to Mr. Gong, and hello everyone. Let me walk you through the key numbers. In the second quarter, the total RAM news will be 7.4 billion, down 5% annually. The membership services RAM news will be 4.5 billion, down 9% annually, primarily due to fluctuations in account sleep performance and previously discussed. For online advertising, RAM news decreased by 2% year over year to RMB 1.5 billion. This was primarily due to the decrease in brand ad business issues, which again is due to the decrease of the variety shows we are during the quarter. But the results were partially offset by the healthy growth of the performance ad businesses.

Thanks to mythical.

Jun Wang: Let me walk you through the key numbers.

Speaker Change #168: Everyone. Thank you walk you through the key numbers.

Jun Wang: In the second quarter, the total revenues of R&B $7.4 billion, down 5% annually.

Speaker Change #169: In the second quarter total revenues of RMB, seven 4 billion down 5% annually.

Jun Wang: The membership services revenues reached R&B $4.5 billion, down 9% annually, primarily due to fluctuations in accountants' lay performance as previously discussed. For online advertising, revenues decreased by 2% year-over-year to R&B $1.5 billion.

Speaker Change #169: Membership services revenue reached RMB four 5 billion.

Yu Gong: In just the first half of 2021, we have distributed about 50 drama series, really influencing the long tail effect of premium content. The value of our IP has been even further at least by exploring diversity files, monetization streams, for example, from Chinese radio from the dramas, from the spirit, much maker, Ran Meng Pat, Wu Yao Xiaohong, Yang Yu Hong Tian, which are new high for IT or new dramas. We have also worked with, in combination, a twi graph for IP licensing, a swine product, a customer liation, a customer micro-culture, total revenue was RIP 1.5 billion down 2% year over year, performance as remained as a highlight of the culture growing as a healthy rate over year.

Speaker Change #169: 9%.

Speaker Change #169: Primarily due to fluctuations in our comments relate to Columbus as previously discussed.

Speaker Change #170: Well all of that.

Speaker Change #170: Revenue decreased by 2% year over year to RMB, one 5 billion.

Jun Wang: This was primarily due to the decrease in brand ad businesses, which again is due to the decrease of the variety of shows we had during the quarter. But the result was partially offset by the healthy growth of the performance ad businesses.

Speaker Change #170: This was primarily due to the decreasing Brandon.

Speaker Change #170: Okay.

Speaker Change #170: Again due.

Speaker Change #170: Due to the increase.

Speaker Change #170: It shows that we are doing well.

Speaker Change #171: Uh huh.

Speaker Change #172: The result was partially offset by the healthy growth of the components businesses.

Jun Wang: Content distribution RAM news reached RMB 698 million in a group of 2% annually. Other RAM news increased by 16% annually to RMB 784 million, partially driven by the increase of RAM news derived from the paid agency services and the third party cooperation. To be honest, you caught an expensive carbon cost with R&B 4.1 billion, down 2% annually. Total operating expenses were R&B 1.4 billion, flat annually. This was in line with our supply and marketing spending strategy. Turning to profits in cash flow, the non-cap operating income was R&B 500 and 1 million in the corresponding margin of 7%.

Jun Wang: Content distribution revenue reached R&B $698 million and grew 2% annually.

Speaker Change #172: Distribution revenue reached RMB $698 million and it grew 2% annually.

Jun Wang: Other revenues increased by 16% annually to R&B $784 million, which was partially driven by the increase of revenue derived from the payment agency services and third-party cooperation.

Speaker Change #172: Other revenues increased by 16% annually to RMB 784 million, partially driven by the increase of revenue.

Speaker Change #172: And from the TV Agency services.

Speaker Change #173: Third party co operation.

Jun Wang: Sponsored ADR Class B Sponsored ADR Class C Sponsored ADR Class D, We have provenly managed our financial resources, striving to improve the overall health of our business and to optimize the financial leverage of our balance sheet.

Speaker Change #174: Moving on to costs and expenses.

Speaker Change #174: Cost was RMB, four 1 billion down 2% annually.

Speaker Change #174: Total operating expenses were RMB, one 4 billion flat annually.

This was in line with our disciplined marketing spending strategy.

Yu Gong: Key sector such as e-commerce and internet services demonstrated solid performance with e-commerce revenue from the June 18th Shopping Festival or growing 80% annually, an annual from internet services or 30% annually. The solid result in performance as it's also a fair reflection of our So upgrading ADR Classical Mechanism and re-inforced by beating aggressors, we have further enhanced the monetization efficiency of traffic and ROI for our clients. Additionally, all AI tools now cover broader industries, enabling more efficient ADR production and driving AI part at value by 150% sequentially.

Turning to profits and cash flow.

Speaker Change #174: non-GAAP operating income was RMB $501 million.

Speaker Change #174: Corresponding margin 7%.

Jun Wang: The operating cash flow totaled R&B 411 million as the remaining part of the 9th contact of quarters. At the end of the second quarter, we had a cash equivalent, short-term investment, and a long time worth through the cash included in prepayments and other assets, totaling of R&B 8.6 billion. We have provenly managed financial resources, starting to improve the overall health of our business and to optimize the financial leverage of our balance sheet. In August, we have completed the repurchase rights offer for our convertible notes from 2022. An aggregated principal amount of US$390,000 was valid at least the R&B and the repurchase, in only 157,000 aggregated principal amounts of the notes remained of the standing.

Speaker Change #174: Operating cash flow totaled RMB 411 minutes tend to remain a positive for nine consecutive quarters.

Speaker Change #174: As of the end of <unk>.

Speaker Change #174: Secondly, we.

Speaker Change #174: We had cash cash equivalents short term investments.

Speaker Change #174: Long term restricted cash included prepayment and other assets.

Speaker Change #174: Totaling RMB eight 6 billion.

Speaker Change #174: We have prudently manage our financial resources striving to improve the overall health of our.

Speaker Change #174: Business and to optimize our financial leverage.

Speaker Change #174: Shoot.

Jun Wang: In August, we have completed the repurchase-rights offer, for our convertible note in 2026. An aggregate principal amount of US$395 million, was validly surrendered in the repurchase, and only US$157,000 aggregate principal amount of the note remains outstanding.

Speaker Change #174: In August we have completed our repurchase offer.

Speaker Change #174: Convertible notes due 2020.

Speaker Change #174: Africa is principal amount.

Yu Gong: All brands at value was done annually, mainly due to fuel where it shows lost. But that are creamy, creamy content, a panel unit will affect brand and road hazards, with 59% of the brand new stepping from content targeted at. In particular, our major drivers achieved notably double-digit annual growth in ground yield. The performance of the June 18th shopping festival was also in line with our ex-patients.

Speaker Change #174: $395 million.

Speaker Change #174: That at least the Rand and the repurchase.

On the 157 all of them temporary and principal amount of the notes remain outstanding.

Jun Wang: For detailed financial data, please refer to our press release on our IR website.

Jun Wang: For detailed financial data, please refer to our press release on our higher-up website.

Speaker Change #174: For a detailed financial data please refer to our press release.

unknown: I will now open the floor for Q&A.

Speaker Change #174: <unk> web site.

Unknown Executive: I want to open a flow of Q&A.

Speaker Change #175: I will now open up floor okay.

unknown: Thank you.

unknown: If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.

Speaker Change #176: Thanks, Sir if you wish to ask a question. Please press star one on your telephone and might be a name to be announced.

unknown: If you wish to cancel your request, please press star 2.

Speaker Change #177: If you wish to cancel your request. Please press star two if you're on.

unknown: If you're on a speakerphone, please pick up the handset to ask your question.

Speaker Change #178: On a speakerphone please pick up the handset to ask your question.

unknown: 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.

Speaker Change #178: For the benefit of all participants on today's call. If you wish to ask a question to management in Chinese. Please immediately repeat your question in English.

Yu Gong: As we remain committed in enhancing member benefits, we are also refining our content distribution and bring to bring free users a period of your experience while balancing commercial performance.

Yu Gong: Moving on to technology and products, we remain committed in advancing technology innovation, as it is crucial in croaking content production, user experience and operational efficiency. For example, our workflow production technology used to be limited to fantasy genres. This caught our marks and exciting briefs soon as we successfully extended its application in stereo territory, applying it within the reality-same drama for the first time. We have also made meaningful programs with our in-house pre-village pre-wetualization technology.

unknown: Please limit your questions to one at a time.

Speaker Change #178: Please limit your questions to one at a time if you wish to have follow up questions. Please rejoin the queue. Your first question comes from Ken Zhang with CIC.

unknown: If you wish to have follow-up questions, please rejoin the queue.

Unknown Executive: If you wish to have follow-up questions, please rejoin the Q.

Zhuqing Zhang: Your first question comes from Zhuqing Zhang with CICC.

Ji Teng Zhang: Your first question comes from Ji Teng Zhang with CIC. Thank you for taking my question. My question about the competition landscape. We noticed that other platforms have some dot-busters here, and our market share, which has been meeting recently, has also graduated.

Zhuqing Zhang: Thank you for accepting my question.

Speaker Change #178: Okay.

Yu Gong: Looking ahead, we are investing in multiple errors to drive the company's long-term sustainable growth.

Zhuqing Zhang: My question is about the competition pattern.

Speaker Change #179: <unk> Com <unk>, where.

Speaker Change #180: RMP Shockwave Tianjin Gucci all amount to me it does show ammonia in Shanghai.

Zhuqing Zhang: We have noticed that in the first half of the year, there have been some repurchases on other long video platforms, and the market share that has been leading this year has also been fluctuating.

Speaker Change #179: CFO.

Speaker Change #179: Yes.

Speaker Change #179: Ken This is John Dewey attrition upward though.

Zhuqing Zhang: I would like to ask the management, how they view the current competition pattern and what our strategy is.

Doug: Doug any change.

Doug: Shipping done fairly good Tien tsin, glitchy and how women at.

Zhuqing Zhang: Thank you.

Doug: Sure.

Zhuqing Zhang: Thanks management for taking my question.

Speaker Change #182: Thanks management for taking my question My question.

Zhuqing Zhang: My question is about competition landscape. We noticed that other platforms, have some blockbusters this year, and our market share, which has been leading in recent years, has also fluctuated.

Oh, I'm not sure that either.

Speaker Change #182: Password reset some blockbuster.

And our market share, which has been meeting or you see yes can also factor here.

Yu Gong: This tool allows for the rapid design and virtualization of things and the shows before actual filming begins. We have applied this across multiple flagship projects, and it has led to life ingress in production efficiency. Our in-house developed platform continues to demonstrate its power. Our in-house IT content management system has been in operation for over two years. So please take it. Data driven system provides substantial help to management team and the producers in project managing effective ways out of its content quality under that threat.

Zhuqing Zhang: How does management view the current competition landscape, for long videos and what's your strategy?

Yu Gong: How does measurement fields occur until competition landscape for long videos, and what's your strategy? Thank you.

Speaker Change #182: Measurement.

And so competition.

Well a lot of retail.

Zhuqing Zhang: Thank you.

Chad: Yes, Chad.

Xiaohui Wang: 这个问题让我们请到 我们的首席内容官小辉回复一下。 行业其实的激烈的竞争这种状况一直存在着 其实这种竞争是有助于提升整体行业的内容质量和丰富度, 也有助于增强长视频行业相对于其他娱乐方式的竞争力 比如说我们常常提到的短视频行业, 同时这也激励我们不断地在未来去提升内容的质量 我们也一直强调长视频最终比拼的是高品质多元化内容供给的持续性, 以及内容品质与商业收益的双赢 这是我们不断在追求的目标, 从我们长期的市场份额的表现来看 iQIYI还是在核心的戏剧和电影的品类里面 长中期地保持着市场领先, 虽然大家看到我们在Q2戏剧的市场份额有所波动 但经过深入的复盘和针对性的优化以后, 我们也已经战胜了短期的困难 7月重回到了戏剧品类的市占率第一的位置, 同时在平衡内容品质和商业的回报上 iQIYI也继续在短期的市场份额表现中 保持着高品质多元化内容供给的持续性, 并且在短期的戏剧和电影的品类里面 我们也继续在短期的戏剧品类的市场份额表现中, 继续在短期的戏剧和电影的品类里面 同时在平衡内容品质和商业的回报上, iQIYI的表现持续在领先 《我的阿拉泰》《弹簧鬼失落》的第二季, 是典型的案例表现 相信这一优势未来还会有进一步提升的空间, 在平衡产品质量和商业回报上 iQIYI的表现继续领先 戏剧系列《奇妙》和《战斗国家》第二季, 是典型的案例表现 相信这一优势未来还会有进一步提升的空间, 未来我们将持续致力于高品质内容的创作 以满足主流及女性观众的需求, 加强社会的洞察力和创新力 继续优化排播策略, 并加强了各个工作室各个环节的管理 从而提升高品质多元化内容供给的稳定性, 未来我们将继续致力于高品质内容的创作 以满足主流及女性观众的需求, 加强社会的洞察力和创新力 继续优化排播策略, 并加强了各个工作室各个环节的管理 我们相信这些策略, 都是为了提升高品质多元化内容供给的稳定性 目前我们戏剧内容的储备覆盖了主流用户的观影需求,尤其对于核心的女性武装、悬疑和现实主义这三个关键赞道上有比较充足的储备。 我们也将持续加强IP系列化开发的能力,比如Q2上线的《传说回之路》的第二季,这是我们内容系列化开发的成功案例之一,第三季也将进入拍摄阶段。

Chad: Yes.

Lincoln Kong: 您的下一个问题来自Goldman Sachs的Lincoln Kong。 大家好,我来回答这个问题。 首先从会员的结构上来看,代表会员的基本盘的基石会员一直保持稳定,这些波动更多来自于新热内容驱动的这些潮汐会员。 最近随着暑假的到来,投入内容对潮汐会员的回流还有老会员的流传都已经有了正面的带动。 另外,QR的ARM的同比继续保持稳定的增长。 目前我们ARM的水平为我们整个的运营赚助上提供了非常灵活的空间,未来一段时间我们将重点发展会员的规模,当然整体的最终目标依然是驱动整体会员收入的最大化。 In Q2, our ARM, which is the Average Revenue Per Member, maintained a solid year-over-year growth. The current level of ARM provides us with flexibility in terms of operational tactics. In the near future, our focus will be on expanding the scale of our membership, but the ultimate goal remains to maximize membership revenue.

Chad: Okay.

Okay.

Chad: Yeah.

Chad: Finland here all children English what do you mean.

Speaker Change #184: We have reached out.

Speaker Change #185: Like RCC South later answered his question.

Speaker Change #184: Hum.

Speaker Change #186: I have with entrepreneurs.

Yu Gong: In fact, the situation in the industry is very serious. The situation in the industry is very serious. In fact, the situation in the industry is very serious.

Speaker Change #186: Hanmi adhesives, a CD that you're doing.

Speaker Change #187: Can you just.

Speaker Change #187: TJ and his team will see Keystone chunky.

Okay.

Speaker Change #187: Hum.

Speaker Change #187: Tom.

Speaker Change #187: Suddenly heat pumps that you believe it will dwell on constant dollar basis.

Lincoln Kong: 未来,我们计划在优化会员的账户共享和打击盗版等方面会推出更多积极的举措,从而整体助力会员业务的长期健康发展。具体的计划届时会根据进度和大家分享。谢谢。

Speaker Change #187: Okay.

Speaker Change #189: Hopefully in PD.

Mr. Neil: Savi Itt's named Mr. Neil.

Yu Gong: Now, this management system has covered all our projects in drama, movie and animation. Another high efficient system is hot intelligence production management system, which is widely used by a production crews for that works on side equipping them with frontline production tool and production management capabilities. In the second author alone, 21 dramas adopted the system today to date. This system has been used in 67 ITU dramas and, again, widespread joint coordination for effective needs.

Xianghua Yang: 请我们负责海外业务的小华,杨小华,回复一下。 好,大家晚上好。 我们自从2019年开始拓展海外业务,经过这几年的努力,海外业务已经出现停销。 去年2023年已经实现全面运营利润的盈亏平衡。 2024年的目标是在利润增长的情况下,海外业务能够继续运营利润增长。 在Q2,海外业务的总收入和会员收入均保持同环比的健康增长。 我们自从2019年开始拓展海外业务,经过这几年的努力,海外业务已经出现成效。 去年2023年已经实现全面运营利润的盈亏平衡。 2024年的目标是在利润增长的前提下提升收入增速。 在Q2,海外业务的总收入和会员收入均保持同环比的健康增长。 在内容方面,我们也探索出了一个适合海外市场的最优的内容组合,并且多样化地提升海外平台的内容贡献。 未来,我们将继续将陆剧作为海外内容的基本盘,并积极探索更多的海外本地自制内容的机会, 然后利用AI技术赋能引资供应的各个环节,助力爱奇艺的海外本地自制内容的生产效率和生产质量的提升。 从技术的角度来看,我们将利用AI技术来增强本地电影产品的各个方面,并增强IT在海外的原始内容的制作效率。 我们的长期目标是把IT海外上打造成一个以亚洲内容为主的私人平台,扩大欢迎内容影响力的同时,加强本地内容的覆盖,持续探索多元化IP边线模式。

Mr. Neil: Yes.

Andrew: You can see it won't be pinned up should okay Andrew.

Andrew: Duane.

Andrew: So this issue.

Andrew: You can do some <unk>.

Xianghua Yang: 这是基于我们整个业务BU的管理这样的一个陈述,从趋势角度来讲我们认为是非常非常鼓励的。

Andrew: Just a moment.

Andrew: For the mobile.

Speaker Change #192: The intense competition within the industry.

Speaker Change #192: Been present in this competition actually helps us to improve the overall quality and the richness of the English.

Speaker Change #192: Content enhancing the competitiveness of the long form video sector compared to other forms of entertainment.

Speaker Change #193: Such as I mentioned, a short form videos.

Speaker Change #193: Jim time also motivate us to continually improve comes from already interesting Chad we've always emphasized that the ultimate goal in the long form video competition is to sustain a high quality diverse.

Yu Gong: First of all, we are extensively applying AI to improve content creation or creation or efficiently and user experience.

Yu Gong: In addition, we have expanded the use of AI across several aspects covering production assessments, creating activity, marketing and distribution. This broad application has meaningfully encouraged the content production on the operation of efficiencies. For example, AI has supported learning full casting and the decision making during the initial phase of product development. AI also allows us to know how our advertising innovation for focus greatest might make a random impact with integrated virtual culture and things into added materials.

Speaker Change #193: Comes from supply and achieve a win win situation between the countries already and the commercial side of it.

Speaker Change #194: In Hong Kong T. The shut off from that.

Speaker Change #195: How is that looking the CG.

Speaker Change #195: Yes, absolutely.

Speaker Change #197: The bulk suggested 100 yet.

Speaker Change #198: And it's not kind of <unk> T. G. I should have some unusual bundle. Thank you.

Paul Stephen: <unk> share with a full time, but at least in the UI, Paul Let me just touch on the black silicon that cheap.

Paul Stephen: Truthfully CGP laid out sure got it.

Paul Stephen: Okay.

Speaker Change #199: Looking at our long term market share performance.

Speaker Change #199: As we maintain our leading position and what categories of trauma and it's time for a long period of time.

Speaker Change #199: Although we experienced some fluctuation in our pharma market share in Q2.

Yu Gong: Substantially, increasing add custom outcomes. This new app format will welcome by advertisers and opened up and poor possibility. For content marketing, we have implied AI model modules to analyze of cloud information and generate key marketing points to improve marketing efficiency.

Speaker Change #199: After a thorough review and a targeted optimization with overcome the short term difficulties and returned to their number one number one position in trauma category market share.

Speaker Change #200: What was it that Q on the options you have a sign up we bought.

Speaker Change #201: Gws yet.

Speaker Change #201: Jim.

Speaker Change #202: Okay sure sure.

Speaker Change #202: Gotcha.

Speaker Change #202: You should rely.

Speaker Change #202: Keith will keep them yet.

Speaker Change #203: In balancing the content quality and a commercial returns Ice's performance continues to meet.

Yu Gong: Secondly, we will further enhance our domestic business well-spending of spring in rather overseas market.

Yu Gong: Finally, for our business of performance in regions outside of mainland China, for the second culture, we attend solid performance in our overseas business, with both total reviews and membership schedule to grow annually and sequentially. The inference for from C-drama and IT's original content continue to stress it. By the 30% annual increase in membership annual from top C-dramas during the culture, all locations, all local location attempts have also done to build work.

Speaker Change #203: The commentary to the winter and spring Hail of Tang dynasty season too.

Speaker Change #203: Big examples.

Speaker Change #203: Please.

Speaker Change #203: Vintage well further enhance in future.

Yu Gong: In the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future, in the future.

Speaker Change #204: Right right.

You are truly bulky Disney.

Speaker Change #205: We hope you've seen bundle in the future.

Speaker Change #205: I'm sure we'll have some time it looks like in the <unk> Josh.

Yu Gong: First of all, we are using the IT content insurance and the FIP portfolio to explore that new alternative beyond membership and advertisement, such as the IP that work, TVs, the river tables and offline experiences.

Josh I'm going to look a.

Archie: So Archie.

Archie: Okay.

Archie: Maggie.

Speaker Change #207: Going forward, well remain dedicated to creating high quality content tailored for the mainstream and female audience.

Yu Gong: The initial tips align perfectly with our call value which centered on maximizing our IP values, some technical innovations and content creativity that is a step forward and effective future.

Speaker Change #207: Our social insight and innovation optimizing content.

Speaker Change #208: Scheduling strategy and strengthening the management and epic S T.

Speaker Change #207: Hum.

Speaker Change #207: Studios and we believe these initiatives are all aimed at improving the stability of our high quality diverse constant supply.

Yu Gong: Now, let's move on to the performance of our call business segments.

Yu Gong: The accumulated, accumulated a number of views of our original type drama might then be in. The application racked first in a number of markets, including the U.S. Canada and UK. We have also made solid progress in animations.

Speaker Change #209: Hello are you there.

Speaker Change #210: Well guy crude oil.

Yu Gong: Starting with membership 36.

Speaker Change #211: As usual, you'll see two you're looking at you too.

Speaker Change #212: Sure, Yes, we did.

Speaker Change #213: So when you kind of repeat upheaval of wet.

Yu Gong: Our current drama reserve accommodates the viewing demands of the mainstream audience. We have a relatively ample reserve specifically for the core genre of ancient costume dramas aimed at female audiences, as well as for the mystery suspense and the reality scene genres.

Speaker Change #214: Our current Tomo reserve accommodates the viewing Smith of the mainstream.

Yu Gong: How dare you have attend the mathematical worship and venue on our overseas set, which historic or high among all IT or to all Chinese enemies? and even also performed top Chinese animation in several countries. Loveraging our premium content they have expanded local partnership to boost global penetration and monetization of efforts including deep-depending collaboration with telecom operators in overseas markets to enrich bond loan products and strengthen promotion activities. For example, we have partnered with ITSILAT, the latest telecom company in the middle eastern and North Africa market for stream ITS content on their OTT platform.

Speaker Change #215: We have a balance of fleet and plumbing services, specifically for the quarter.

Speaker Change #215: All right.

Speaker Change #217: <unk> costume dramas, Inc. S female audiences as well as for the Ministry of Defense and if reality themed Congress.

Jack: Let me now should be Jack I appreciate it.

Speaker Change #219: Have fun.

Speaker Change #219: Beautiful.

Speaker Change #220: I'm not so.

Sure Neil Sheila Hy Bon.

Speaker Change #220: C Diff I E. You don't you.

Speaker Change #220: Yeah.

Speaker Change #221: Let me Judy.

Shelby: Yes, yes Shelby please.

Shelby: We jumped on that.

Shelby: Some of that John you Tobi here.

Yu Gong: We will also continue to strengthen our capabilities for IP sterilization developments. For example, the stringed tail of Tang Dynasty Season 2, which launched in Q2, is a successful case of sterilized content development. The first season will soon be introduction in the future. The well-loved series such as The Fearless End, Under the Skin, will also launch their second season. And the Ingenious one season 2 is also in preparation.

Shelby: Well also continue to strengthen our capabilities for IP serialization if off.

Shelby: For example.

Shelby: Strange tale of Tom dynasty season, two well, which launched in Q2.

Shelby: Okay.

Shelby: Realized content development and the first season will soon be in stock.

Speaker Change #223: So well not series such as this.

Yu Gong: This partnership will further enhance the influence of three-drama VR beyond Asian market. In the future, we will continue to enhance the influence of the IT brand overseas with premium C-POP content in key markets. Accelerate production of local content and export diversified IP monetization opportunities.

Speaker Change #223: And under the skin, but also lost their second seasons and genius from one season to the also in preparation. Thank you.

Lincoln Kong: Your next question comes from Lincoln Kong with Goldman Sachs. Thank you.

Speaker Change #224: Your next question comes from Lincoln, Hong with Goldman Sachs.

Speaker Change #225: Oh sure sure.

Speaker Change #226: I'll bet, you on a quarterly tissue Quentin chicken.

Speaker Change #227: Two quick questions.

Speaker Change #228: How are you.

Speaker Change #228:

I guess you ship all core green blocks.

Speaker Change #229: We tend to it too.

Speaker Change #228: Okay.

Yu Gong: Our primary goal for membership is to remain on driving the sustainable long-term brand new growth through top-notch content and the period of user experience.

Yu Gong: In summary, looking ahead, we are dedicated to pursuing our long-term growth with a sustainable approach. We will grow out more diversified premium content and apply innovative technologies more intensively and continue to enhance our team and create a territory under exact rotation capabilities with that. We believe the flywheel effect of ITS content ecosystem will drive our long-term growth.

Speaker Change #230: So thank you for putting my questions. My question is about the business how should we think about their prospects.

Speaker Change #231: Membership growth future, especially young.

Speaker Change #230: Okay.

Speaker Change #230: Thank you.

Speaker Change #232: Once you touch office.

Unknown Executive: I invite our senior B.P.O. members to discuss how to answer this question. From the perspective of membership structure, our cornerstone members represent the stable base of our subscribers and have remained steady. Fluctuations may actually come from the members who are attracted by meals and popular content. As the summer season arrives, our content offering positively influences the return of these children's users and retention of long-standing members. In Q2, our arms, which is the average revenue per member, maintain a solid year-over-year growth. The current level of arms provides us with flexibility in terms of operational tactics. In the near future, our focus will be on expanding the scale of our membership, but the ultimate goal remains to maximize membership revenue.

Speaker Change #233: You can find our senior VP of membership defense trying to help to answer this question.

Oh absolutely.

Speaker Change #233: Oh, yes.

David: Hi, David.

Speaker Change #235: So hopefully that user bottle.

Speaker Change #236: Can you give little enough cold weather actually this year I'm sure that he gets all hopefully you at <unk>.

Unknown Executive: Now, let me pass the answer to your total sum of national performance.

Speaker Change #236: Yeah, that's all of that hopefully later on there is arguably no video I don't know if we ought to do it but not.

Jun Wang: Thanks to Mr. Gong and Hello everyone. Let me walk you through the key numbers. In the second quarter, the total RAM news will be 7.4 billion down 5% annually. The membership services RAM news will be 4.5 billion down 9% annually, primarily due to fluctuations in account sleep performance and previously discussed. For online advertising, RAM news decreased by 2% year over year to RMB 1.5 billion. This was primarily due to the decrease in brand ad business issues, which again is due to the decrease of the variety shows we are during the quarter.

Speaker Change #237: So let me try to tackle.

Speaker Change #238: From the perspective of membership structure the structure or one of his fellow members represent a stable base of our subscribers.

Debbie: Thanks Debbie.

Fluctuations actually mainly come from the members who are tracking by Neil and popular content.

Yu Gong: In the second corner, membership brand new was done by person and primary end to fluctuation in our company's latest performance, causing the attribution of pre-titled private members and the high-speed effect from last year's major I'm Guo Dailei, year-over-year.

Debbie: The summer season, our rights are kind of offerings positively influenced the return of the kitchen users.

Debbie: And the potential of loss came from members.

Speaker Change #240: I'm not sure of the envelope if you borrow against them now.

Yu Gong: This was partially a fool, a fool, fueled by our displaying pricing strategy as we scale back on the overall promotions and discussions.

Speaker Change #241: Oh, I'm I'm gonna stay tuned well, we wont mens wearhouse.

Speaker Change #242: Do you want to.

Speaker Change #242: Yeah.

Speaker Change #242: Yes, well the John food yet.

Speaker Change #242: No.

Speaker Change #242: Alright.

Speaker Change #242: Oh, Yeah sure don't don't hopefully you asked over there.

Jun Wang: But the results were partially offset by the healthy growth of the performance ad businesses. Content distribution RAM news reached RMB 698 million in a group of 2% annually. Other RAM news increased by 16% annually to RMB 784 million, partially driven by the increase of RAM news derived from the paid agency services and the third party cooperation. To be honest, you caught an expensive carbon cost with R&B 4.1 billion down 2% annually.

Speaker Change #243: Thank you to our arm, which is the average revenue per member and maintain a solid.

Speaker Change #243: Right.

Speaker Change #244: Some of them aren't provides us with flexibility in terms of operational tactics.

In the near future our focus will be on spending to scale, our membership, but the ultimate goal remains to maximize our membership.

Speaker Change #245: Oh wait of Iowa in Tijuana.

Speaker Change #245: That's helpful.

Speaker Change #247: Have you thought about.

With beautiful Cold-blood, either talk to learn I don't see a 40 year, we are here with us.

Speaker Change #247: Giovanni Yes, real quick can you endorse that I have laid out to you.

Unknown Executive: In the future, we will also plan to implement more practice measures to optimize account sharing and compact parity.

Jun Wang: Total operating expenses were R&B 1.4 billion flat annually. This was in line with our supply and marketing spending strategy. Turning to profits in cash flow, the non-cap operating income was R&B 500 and 1 million in the corresponding margin of 7%. The operating cash flow totaled R&B 411 million as the remaining part of the 9th contact of quarters. At the end of the second quarter, we had a cash equivalent, short-term investment, and a long time worth through the cash included in prepayments and other assets, totaling of R&B 8.6 billion.

Speaker Change #248: In the future well also plan to implement more practice measures.

Speaker Change #249: Optimize account sharing and come back Paris, thereby supporting the long term healthy growth of our membership business well assured specific plans with everyone.

Unknown Executive: Thereby supporting the long-term healthy growth of our membership business, we will share the fifth plan with everyone of the promises made.

Speaker Change #250: Thank you.

Maggie Ye: Your next question comes from Maggie Ye with CLSA. Thanks for the chance to ask questions regarding our overseas business with the very distant revenue growth in past quarters.

Maggie <unk>: Your next question comes from Maggie <unk> with CLSA.

Maggie <unk>: Okay.

Speaker Change #252: So let me summarize on Hawkeye G. I think it's even a few quick not would've been tissue.

Are you with that.

Speaker Change #253: What do you see that seemed to me it kind all how are you would you be so John ciulla.

Speaker Change #253: And then on the July one.

Speaker Change #253: Kelly do you want it to do so.

Speaker Change #255: No generics.

Ethernet Johnson: Hello, Ethernet Johnson in trouble.

Goldman Sachs: Let me turn off shore that Goldman Sachs, John Sam with him doing Marsh Thomas Let's say seen that's held at Groupon.

Jun Wang: We have provenly managed financial resources, starting to improve the overall health of our business and to optimize the financial leverage of our balance sheet. In August, we have completed the repurchase rights offer for our convertible notes from 2022. An aggregated principal amount of US$390,000 was valid at least the R&B and the repurchase, in only 157,000 aggregated principal amounts of the notes remained of the standing.

Well, that's a good evening and thanks for the chance to ask a question regarding our overseas business. We think we've seen very decent revenue growth in past quarters.

Speaker Change #258: The high quality local production.

Speaker Change #259: Patients with distribution of all their opinion amendment content.

Speaker Change #260: Nike International celebrates its five year anniversary can management share your latest thoughts on the strategy.

Unknown Executive: Thank you for your time. Thank you. Thank you for your time. For the overseas business, and your discussion. We started explaining to the overseas market in 2019, and have achieved initial success. In 2023, our overseas operations reached major operating receipts. A goal for 2024 is to boost revenue growth while continuing to increase the profit. And for you to this year, the total revenues for overseas and also membership revenue will maintain healthy year-over-year and also quarter-over-quarter growth.

Speaker Change #260: Robert.

Robert: Thank you.

Robert: Oh sure look high yield at the shop.

Unknown Executive: For detailed financial data, please refer to our press release on our higher-up website.

Speaker Change #263: He will invite our senior VP himself off was responsible for the overseas business.

Unknown Executive: I want to open a flow of Q&A. If you wish to have follow-up questions, please rejoin the Q.

Robert:

Speaker Change #262: Uh huh.

Mr. Holly: Well Mr. Holly join you in person for that how are you doing.

Speaker Change #262: As you <unk> you Sean.

Speaker Change #262: Yeah, I mean on a Sunday in two cities in China, even though if you plan on in Austin.

Speaker Change #262: None of <unk> tea shop.

Speaker Change #262: So we will do so.

Speaker Change #262: Sure how are you able to consumables absolute gem.

Speaker Change #262: How did you do at 10 Hudson.

Speaker Change #265: We started expanding into the overseas market in 2019.

Ji Teng Zhang: Your first question comes from Ji Teng Zhang with CIC. Thank you for taking my question, my question about the competition landscape. We noticed that other platforms have some dot-busters here, and our market share, which has been meeting recently, has also graduated.

Speaker Change #265: And how to achieve success in 2023, our overseas operations actually be.

Speaker Change #266: Operating EBIT of coal for 2024 is to boost revenue growth, while continuing to increase profit and for Q2 this year.

Speaker Change #266: Total revenues for overseas.

Speaker Change #266: And also membership revenue well maintain a healthy year over year and also put open world.

Speaker Change #266: Yeah.

Speaker Change #267: Definitely don't call me, a woman tons of a fully.

Speaker Change #268: We'll have actually was on the <unk>.

Speaker Change #267: Hello.

Speaker Change #269: We don't want to see how that companion animal.

Speaker Change #269: Finally don't tell me the highlight of central Michigan season, Didnt suddenly well not how it's done.

Yu Gong: How does measurement fields occur until competition landscape for long videos, and what's your strategy? Thank you. [inaudible] Our current drama reserve accommodates the viewing demands of the mainstream audience. We have a relatively relatively ample reserve specifically for the core genre of ancient costume dramas aimed at female audiences, as well as for the mystery suspense and the reality scene genres. We will also continue to strengthen our capabilities for IP sterilization developments. For example, the stringed tail of Tang Dynasty Season 2, which launched in Q2, is a successful case of sterilized content development.

Unknown Executive: In the past three years, I see the whole thing as a way of changing the 20-minute period. In the end of the period, I see the effect of changing the period. In terms of content, we have discovered an optimal content mix suitable for our overseas markets. We aim to further increase content offerings through different measures, for example. The popularity for Chinese-language content overseas has significantly increased, becoming a major source of our top content for overseas platforms. In fact, over the past three years, over half of the 20 most popular shows on IT overseas were Chinese dramas, most of which were IT originals.

Speaker Change #270: All of them.

Speaker Change #269: So of course, you this time Jamie.

Speaker Change #269: And I find that aren't what you don't find what you don't youre not move as I see the true and are finding it at all.

Speaker Change #271: And then on the economy.

Speaker Change #271: Rely well Mcdonough to shoot John Lewicki and anything on the T V.

Speaker Change #271: Times of a lot of time.

Speaker Change #271: The turnaround that COPD.

Speaker Change #272: It is a full then you could go into Google financier.

Speaker Change #273: Julie I'd see it happen, sometimes show you and sometimes it happens she says.

Speaker Change #274: In terms of content, we have discovered and optimal Hudson MX suitable for our overseas market and we aim to further increase content offerings to defense.

Speaker Change #273: Sample.

Speaker Change #273: Popularity for Chinese language content overseas.

Speaker Change #273: It is.

Speaker Change #273: Becoming a major source of our top content or overseas platform.

Speaker Change #273: In fact over the past three years over.

Speaker Change #273: The 20, most popular shows overseas Chinese dramas, most of which or omissions. This demonstrate the influence of Chinese language content and the strength of our ovation offerings.

Unknown Executive: This demonstrates the influence of Chinese-language content and the strength of our original offerings. In the future, we will continue to use Chinese dramas as the foundation of our overseas content offerings and actively explore opportunities to increase production of local original content. Also, from the technology perspective, we will utilize AI technology to empower different aspects of the long-term video industry, enhancing the production efficiency of IT's localized original content overseas.

Speaker Change #273: In the few checks or continue to use Chinese drama at the foundation of <unk>.

Speaker Change #273: These content offerings and actively explore opportunities to increase production of localization of content.

Speaker Change #275: And also from the technology perspective, we will utilize.

Speaker Change #276: Knowledge to empower different aspects of the law firm video industry.

Speaker Change #276: The production efficiency of localized.

Speaker Change #276: Localized.

Speaker Change #276: Additional content overseas.

Unknown Executive: In terms of content, we have already experienced the core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core core And our CFO one thing just added to this and he mentioned that in 2023 our overseas business actually reached four-year operating rate even.

Oh, that's in vehicles as well.

Speaker Change #277: Well no.

Speaker Change #277: She did.

Speaker Change #278: In some parts and simpler.

Speaker Change #278: <unk> I believe tissue, John Chung with Google, Utah for political Islam teamed.

Speaker Change #278: <unk>.

Speaker Change #279: You tell me.

Speaker Change #279: Well many times you can be off and see how many times I've talked to Yahoo.

Speaker Change #279: This is deepak caught on fire.

Speaker Change #280: Mr John Chung and email.

Speaker Change #280: <unk> tons or thoughts around what.

Speaker Change #280: It is your moisture.

Speaker Change #281: Regarding our local partnerships, we have already established deep connection and cooperation with Brooklyn Telecom operators in certain regions and going forward. We aim to expand our partnerships to telecom operators in additional countries and to increase our collaboration with multiple times and.

Speaker Change #281: We believe this will enhance our brand awareness and a content influence.

Speaker Change #281: And then for our long term objective is to make ice's overseas platform.

<unk> of beloved content.

Speaker Change #281: Pending the influence of Chinese language content, while also increasing coverage of local content and continue to explore that versa lite.

Speaker Change #281: IP monetization models.

So once you have once you've been for 22.

Speaker Change #282: It sounds like Chicago.

Speaker Change #282: Yes.

Speaker Change #283: How about you should turn to the EBIT.

Speaker Change #283: Just a few of them.

Speaker Change #283: Joe.

Speaker Change #283: Yes.

Speaker Change #283: Jonathan.

Speaker Change #283: Sure.

Speaker Change #283: That's helpful.

Speaker Change #283: Chris.

Speaker Change #284: And our CFO bumping just added to this and as you mentioned that in 2023, our overseas business actually reached full year operating breakeven. This is based on the fact that fundamental management accounting perspective, and this is based on a few financial Macau.

Unknown Executive: This is based on the fact that from the management accounting presented. This is based on the views measured by Qiaohui, correct? And then this is a very healthy trend that has developed over the past year.

Thomas Chong: 您的下一个问题来自Thomas Chong和Jeffries。 晚上好,谢谢管理层接受我的提问。ITE有很多很好的IP,所以除了会员和广告收入以外,我们是怎么考虑一语多次在IP多元开发方面的思考和战略?谢谢。 谢谢,我是工履的,我回答这个问题吧。 包括我们能够得到的利益价值都引起了其他电影品牌专家的关注。 而这些电影品牌现在的利益价值达到了70%。

Speaker Change #285: Alright, and then just as a very healthy trend that has developed.

Speaker Change #285: Over the past year.

Speaker Change #286: Thank you.

Thomas Chong: Your next question comes from Thomas Chong with Jefferies. Thank you. Hi, good evening. Thanks, Management, for taking my question. As ITE has a lot of good IP, can management share your strategy of unlocking the IP potential in different areas other than membership and advertising?

Speaker Change #286: Okay.

Speaker Change #287: Your next question comes from Thomas Chong with Jefferies.

Speaker Change #288: Somehow just said why don't you tell them. Okay. So what have you been ice's both on how the IP so each one of them.

Thomas Chong: Well I'm, just curious how big esports IP type Aqua Amanda.

Thomas Chong: Hi, Good evening, Thanks management for taking my question.

Speaker Change #290: I see you have lots of good IP 10 minutes I'm going to share your strategy of unlocking potential in different areas.

Speaker Change #290: Ed membership and advertising thank you.

Oh sure yeah or formula what we like to go ahead and keep up to.

Speaker Change #292: Sure <unk>.

Speaker Change #293: Sure as you go through those.

Speaker Change #294: Well he was hot.

Nate: Nate why don't you go to <unk> sure Yeah sure Yeah, yeah well.

Nate: Sure.

Nate: Oh sure sure issue that envelope.

Nate: Yes, sure if you go through a challenging doctors team completed one yet.

Nate: Well, John we'll take the Cheyenne washer tuners, what should our framework.

Xiaohui Wang: RCO is answering this question. He mentioned that Compton IP is the core asset of our company. Promoting the monetization of Compton IP in various forms, including offline business, is an important and sustained effort that is key to enhancing our long-term value and competitiveness.

Speaker Change #296: Our CEO is answering John's question, you mentioned that.

John: The IP is still a core asset of our company.

Speaker Change #298: <unk> the monetization of content IP in various forms including offline business.

What is a sustained effort that is key to enhancing our long term value and a competitive.

Xiaohui Wang: We actually described this IP-based business model with a metaphor called eating a fish in multiple ways, which actually emphasizes our ability to transform each piece of our Compton IP into numerous prospects. For revenue, thereby, we believe this will maximize its value across different markets and platforms. With our many years of focus on producing a regional Compton, actually, the value of our company's IP assets have grown significantly. For instance, two years ago in 2002, our regional dramas have accounted for over half of our quarterly new release key dramas. And this proportion now has stabilized at around 70 percent.

Speaker Change #299: We actually described as IP based business model with a metaphor, it's hot eating a fish in multiple ways, which actually emphasize our ability to transform each piece of content IP into numerous prospects for revenue there.

Yu Gong: The first season will soon be introduction in the future. The well-loved series such as The Fearless End, Under the Skin, will also launch their second season. And the ingenious one season 2 is also in preparation. Thank you.

Speaker Change #299: We believe this will maximize its value across different markets and southwest so.

Lincoln Kong: Your next question comes from Lincoln Kong with Goldman Sachs. Thank you.

Speaker Change #300: So you know for the animals.

Speaker Change #301: That's the journey at all actually.

Sheila: Hi, Sheila.

Speaker Change #301: Chile.

Speaker Change #303: Well you got to have a call.

Speaker Change #304: Yeah on the NGL arm yet.

Speaker Change #304: People there for a hall.

Speaker Change #306: Thank you.

Speaker Change #306: Hope all the dirt you.

Speaker Change #306: Tom do you feel about new shares what Youll see happen I don't know.

Speaker Change #306: Seizures layoffs, so yogurt or the naval would you think of what she sure tumble in the Earth yet.

Speaker Change #307: Sure is trivial atomic choice.

With our many years of focus.

Unknown Executive: I invite our senior B.P.O, members to discuss how to answer this question. From the perspective of membership structure, our cornerstone members represent the stable base of our subscribers and have remained steady. Fluctuations may actually come from the members who are attracted by meals and popular content. As the summer season arrives, our content offering positively influence the return of these children's users and retention of long-standing members. In Q2, our arms, which is the average revenue per member, maintain a solid year over year growth, the current level of arms provides us with flexibility in terms of operational tactics.

Speaker Change #308: Our original content actually the value of our companies.

Speaker Change #308: Assets have grown significantly greater than for instance, two years ago in Q2 2022, our vision of autonomous.

Speaker Change #308: Now account for over half of our quarterly news release key dramas and disproportion now has stabilized at around 70%.

Thomas Chong: And also, these leading high-quality original dramas have not only found success during their initial broadcasting period, but also have demonstrated a sustainable long-tail effect, which maintained popularity over an extended period of time.

Xiaohui Wang: And also, leading high-quality, high-original dramas have not only found success during their initial broadcasting period, but also have demonstrated a sustainable, long-tail effect, which maintains a popularity over an extended period of time.

Speaker Change #308: And also.

Speaker Change #308: Leading high quality high original dramas have not only success doing their initial rock has been peer yet, but also have demonstrated a sustainable long tail effect, which maintain a popularity over any.

Yu Gong: All in half the number of benefits also played a major role effectively, encourage the members to sign up for a higher-term plan.

Yu Gong: Guo Dailei Wang, we note that in no way, a well-edited, so-called users, well-known to pay, notably, we launched an express package for 10 drummers in the second corner and gathered the highest number of casual purchases.

Speaker Change #308: Extended periods of time.

Thomas Chong: 所以,一方面就是,一点是我们希望线下的体验业务成为我们未来的增长曲线,我们也观察到国内的线下商业、文旅消费的优势行为习惯也发生了一些变化,也就是优质内容对场景的赋能的作用越来越显著。 我们希望线下的体验业务成为我们未来的增长曲线,我们也观察到国内的线下商业、文旅消费的变化,我们也观察到国内的线下商业、文旅消费的变化, 就是我们的合作运营模式采用轻资产的模式,这样在有限的投入下可以产生比较好的增长收益。 通过我们的实践,已经验证了这种模式的下一阶段可以复制更大的规模。 除了这个全面剧场,另外还做了两个尝试,一个是销售IT周边商品的几小倍, 还有一个针对儿童的线下亲子七八度乐园,这些都是我们和合作伙伴共同尝试的IT产用轻产模式, 一方面货币化,另一方面为IT的用户带来更多元的娱乐体验。 In addition to what I just mentioned, the VR theater experiences that I mentioned earlier, we're also exploring further initiatives centered around our IPs.

Speaker Change #309: Blue yellow you've talked me that's for sure EPS I'm sure once you Austin Charlotte.

Yu Gong: Following the data in drummers calibrate, we plan to expand express package to other content categories such as the variety show and animation.

Speaker Change #310: Well one of them that I know that some countries yes.

Shelby: But how about what are the sure Josh on yet my name is Shelby like pushing when she was Fortunately shift what is already youll turn nasal spray of Tommy.

Speaker Change #310: What you like to shop tool.

Speaker Change #311: I only neutral tripe juncture, what enough question your strip.

John: So John I'm, hoping slowed IPA Youll Shan Shan Shan Nen, his shop, and Fat Boy I'm sure if they didn't shop business yet.

Yu Gong: We remain confident in the long-term outlook of our membership business, which is supported by several key factors. Firstly, we have successfully built a solid foundation of lawyer, sticky members.

Speaker Change #312: Lucky Lucky that home health, which will be orange from now China has gotten huge hall.

Xiaohui Wang: In other words, there are also some changes in the cultural and social media. And that is, the advantageous content of the long-tail effect is more and more obvious.

Speaker Change #312: I'm sure you'll really see a cop haven't later time here.

Jean Jacques: Thanks, Jean Jacques.

Speaker Change #314: Hey, good <unk>.

Yu Gong: Secondly, content remains of copyrights, copyrights, of our membership world.

Unknown Executive: In the near future, our focus will be on expanding the scale of our membership, but the ultimate goal remains to maximize membership revenue. In the future, we will also plan to implement more practice measures to optimize account sharing and compact parity.

Speaker Change #315: It's helpful.

Xiaohui Wang: We actually hope that the offline experience business will become our second growth curve in the future. And we also know that the shifts in consumer behavior change in domestic offline commerce and cultural tourism sectors, where the premium content IP actually plays an increasingly important role in creating engaging experiences. For example, our vast library of high-quality video content IPs actually serves as a core strength in this area. For example, we leverage the IP from the recent hit drama title called The Strange Tale of Tom Dynasties. Beyond its online presence, successfully introducing an immersive VR experience. In cities like Beijing and CN, these are key cities in China.

Speaker Change #315: Oh, we actually hope that the offline.

Speaker Change #316: <unk> business will become our second growth curve in the future and we also noticed a shift in consumer behavior change.

Speaker Change #317: Change in domestic offline, hummus, and Huntsville, and tourism sectors, where the premium content IP actually plays an increasingly important role in creating them.

Yu Gong: And we are in the middle of introducing more diversity by the premium countries including college, broader user, co-hosts.

Speaker Change #317: <unk> expenses for example, our vast library of high quality video content IP is actually start.

Yu Gong: Furthermore, we are committed to enhancing our operational strategy to improve membership accreditation and retention.

Unknown Executive: Thereby supporting the long-term healthy growth of our membership business, we will share the fifth plan with everyone of the promises made. Thank you.

Speaker Change #317: Our strength in this area for example.

Speaker Change #317: We leverage the Ikea from the recent hit drama titled caught that.

Speaker Change #317: Range tale of Tom dynasty beyond its online presence successfully introducing an immersive VR scans instead.

Maggie Ye: Your next question comes from Maggie Ye with CLSA. Thanks for the chance to ask questions regarding our overseas business with the very distant revenue growth in past quarters.

Speaker Change #317: In cities like Beijing, and see and these are key cities in China and in addition, we've developed Neogen residents products such as <unk> <unk>.

Xiaohui Wang: In addition, we've developed new, derivative products such as car games designed to appeal to the cities of younger demographic. Further, extending the IP's reach and impact. And this operating for the operational model actually favours a light-asset approach, which has a promising prospect for incremental revenue under the metadata code. This approach has actually been validated in terms of offline experiences. And this model is now being able to be replicated and scaling.

Speaker Change #317: And to appeal to the ease of younger demographic further.

Speaker Change #317: The iqs reach and impact.

Speaker Change #317: Hum.

Speaker Change #318: Sure sure.

Speaker Change #318: Offshore title.

Speaker Change #318: Washer tariffs that youll see on the total shop.

Speaker Change #318: Are you a trend from.

Speaker Change #318: Some of the onshore.

Yu Gong: Initiatives include what reaching broader demographic growth by finding a health channel and utilizing a wide-row social marketing tool.

Speaker Change #319: And this operating for the operational model actually we actually favors our light asset approach, which has a promising prospect for incremental revenue under limited cost.

Mr again: Hello, Mr again, yeah Joan.

Mr again: Joe I'm going to take on more for the <unk> sure.

Yu Gong: Secondly, improving conversation rates by launching marketing initiatives directly tied to popular content of the season such as health effects, a member package, express package, and a contest-see experience program in both countries, providing value for many services for long-term and high-tier plan subscribers such as inclusive offline events in the second corner of the video, organized 17 offline events and received positive member feedback, building on the strong user reception from last year.

Unknown Executive: [inaudible] For the overseas business, and your discussion. We started explaining to the overseas market in 2019, and have achieved initial success. In 2023, our overseas operations reached major operating receipts. A goal for 2024 is to boost revenue growth while continuing to increase the profit. And for you to this year, the total revenues for overseas and also membership revenue will maintain healthy year over year and also quarter over quarter growth.

Mr again: Joe will come down a bit more.

Mr again: Actually.

Mr again: Based on our experiences. This approach has actually been validated in terms of.

Mr again: My experiences and this model is now being able to be replicated and scaling well.

Xiaohui Wang: In addition to the long-term development, we've been doing a long time. One is the sales of the IP on the top of the social media. This is the selling of the IP social media. The other is the sales of the real and the real and the real and the real and the real and the real.

Speaker Change #321: Well, let me try and do with Hanmi Wow, that's cool I'm sure if you're sure shuffle.

Speaker Change #322: <unk> shrunk that she's shopping Fisher for Miami, but actually from <unk>.

Speaker Change #323: But I always want to do it.

Shan Shan Shan.

Speaker Change #323: Scott will look at that.

Speaker Change #324: To hit the ultra low sulfur oil.

I'm sure I th.

Speaker Change #324: Tayo and to have more strict.

Speaker Change #325: You've heard me it will be hard for me.

Yu Gong: Our annual offline flagship events, the 2024 H.E.S, screen time general fee is set for its comeback in December 7th this year in Macau.

Speaker Change #326: Actually we report that.

Speaker Change #326: Come join gotten up combined you looked yet.

Xiaohui Wang: In addition to what I just mentioned, the VR data experiences that I mentioned earlier, we are also going for the initiative to send it around our IPs, for example, our Qi Xiaobai, which is the IP merchandise sports, and also Qi Bubble Park, which is a theme park designed for children. And these initiatives are actually developing in collaboration with our partners, similar to what I just mentioned: the light asset approach. The aim is to provide it to users with a very comprehensive and engaging entertainment experience.

Speaker Change #327: In addition to what I just mentioned the beyond Air show a theater.

Yu Gong: The perceived value of our members was even further amplified by our very first 17th IT member festival.

Speaker Change #327: That Oh I mentioned earlier.

Yu Gong: In the same event, we offered a pre-link membership to come, and housed a seven-hour live broadcasting to promote over 500 and 30 titles in our content applied.

Speaker Change #328: So why are the initiatives centered around our IP like sample our T cell <unk>, which is I can merchandise parse now also keep bubble chart, which is a.

Thomas Chong: For example, our T-Shop Bay, which is the IP merchandise stores, and also T-Bubble Park, which is a theme park designed for children.

Yu Gong: More than 4 days, the celebrities had depended the live streaming event and generated over 30 million views in the future that to live.

Speaker Change #328: Theme Park design for children and these initiatives are actually all of it in collaboration with our partners.

Thomas Chong: And these initiatives are actually developing in collaboration with our partners, similar to what I just mentioned, the light asset approach.

Speaker Change #329: Similar to what I, just mentioned that the light asset approach and the aim is to providing because as you're asleep.

Thomas Chong: The aim is to provide users with a very comprehensive and engaging entertainment experience.

Speaker Change #330: That's kind of an agent interest from that experience. Thank you. Thank you.

Thomas Chong: Thank you.

Yu Gong: The 17th IT Membership Festival is set to be an annual event, inclusive to our members.

Unknown Executive: [inaudible] And our CFO one thing just added to this and he mentioned that in 2023 our overseas business actually reached four-year operating rate even. This is based on the fact that from the management accounting presented. This is based on the views measured by Qiaohui, correct and then this is a very healthy trend that has developed over the past year.

Unknown Executive: There are no further questions at this time. I'll now hand back to management for closing remarks. Thank you everyone for participating in the call, and if you have further questions, please don't have to take to contact us. Thank you. Thank you all very much.

unknown: There are no further questions at this time.

Speaker Change #331: There are no further questions at this time I will now hand back to management for closing remarks.

unknown: I'll now hand back to management for closing remarks.

unknown: Thank you, everyone, for participating in the call.

Speaker Change #332: Thank you everyone for participating the call and if you have further questions. Please don't hesitate to contact us. Thank you and thank you bye bye.

unknown: And if you have further questions, please don't hesitate to contact us.

unknown: Thank you.

unknown: Bye-bye.

Unknown Executive: That does conclude our conference today.

unknown: That does conclude our conference for today.

Speaker Change #333: That does conclude our conference for today. Thank you for participating you may now disconnect.

unknown: Thank you for participating.

Unknown Executive: Thank you for participating.

unknown: You may now disconnect.

Unknown Executive: You may now disconnect.

Speaker Change #333: [music].

Speaker Change #333: Okay.

Speaker Change #333: Okay.

Speaker Change #333: [music].

Speaker Change #333: Okay.

Speaker Change #333: [music].

Speaker Change #333: Okay.

Speaker Change #333: [music].

Yu Gong: It is an event to discover positive deals and enjoy defending everything.

Unknown Executive: Thank you.

Yu Gong: This festival will not only underscore the substantial value we provide to our members, but we also serve as a key opportunity to boost our brand influence.

Thomas Chong: Your next question comes from Thomas Chong with Jeffries. Thank you. Hi, good evening. Thanks, management for taking my question.

Yu Gong: Moving on to content, we are overcome the short-term flagship Asian in the content set flight performance in Q2 and learned a lot from this short-term setback. So the impact on this of the overall project, we have gained valuable insight to guide our content creation and operation in the future.

Xiaohui Wang: As ITE has a lot of good IP, can management share your strategy of unlocking the IP potential in different areas other than membership and advertising? Thank you.

Speaker Change #333: Yes.

Speaker Change #333: [music].

unknown: Thank you.

Yu Gong: First of all, we respect two content creation where we are craft more and higher quality content that means the appetite of mainstream audiences.

Xiaohui Wang: RCO is answering this question. He mentioned that Compton IP is the core asset of our company. Promoting the monetization of Compton IP in various forms including offline business is an important and sustained effort that is key to enhancing our long-term value and competitiveness.

Yu Gong: In particular, we plan to broaden our fellow with offering that especially appeal to our female audience to maintain our age in the concentrate in both the field of content creation.

Yu Gong: We aim to further enhance our ability to tap into popular social trends, thereby producing content that is tabulation, a deeper connection with our audiences.

Yu Gong: We will engrave more innovative aspects in our casting and the script selection process aiming to transcend the limits of the traditional tolerance.

Xiaohui Wang: We actually described this IP based business model with a metaphor called eating a fish in multiple ways, which actually emphasize our ability to transform each piece of our Compton IP into numerous prospects. For revenue, thereby, we believe this will maximize its value across different markets and platforms. With our many years of focus on producing a regional Compton, actually the value of our company's IP assets have grown significantly. For instance, two years ago in 2002, our regional dramas have accounted for over half of our quarterly new release key dramas.

Yu Gong: Secondly, without encountering the scouting, we will throw less money here, or use a trend and adopt a dynamic gathering strategy that is guided by user engagement and retention.

Yu Gong: This approach ensures that our content law out is often valid, and time to align with our audiences is crafted with and we will have it.

Yu Gong: Certainly, in terms of managing our in-house students, we are committed to enhancing the efficiently and effectiveness of our creation notes at each key stage of the creative process.

Xiaohui Wang: And this proportion now has stabilized at around 70 percent, and also leading high-quality, high-original dramas have not only found success during their initial broadcasting period but also have demonstrated a sustainable long-tail effect which maintains a popularity over an extended period of time.

Yu Gong: Our aim is to cultivate a more proactive cultural amount of talent in front of us.

Yu Gong: They have ample freedom to fully unleash their artistic skills and the foster and environment where creativity can thrive moving on to the detailed content performance in the second corner.

Xiaohui Wang: [inaudible] consumption of the consumption the consumption of the consumption In addition to what I just mentioned, the VR data experiences that I mentioned earlier, we are also going for the initiative to send it around our IPs, for example, our Qi Xiaobai, which is the IP merchandise sports, and also Qi Bubble Park, which is a theme park designed for children. And these initiatives are actually developing in collaboration with our partners, similar to what I just mentioned, the light asset approach. The aim is to provide it to users with a very comprehensive and engaging entertainment experience.

Yu Gong: For dramas, our leadership in the real reality and the suspense, genres, remains and challenge our original drama to the wonder whether all of them perfectly demonstrated or successfully implanting artistic merits and mutual benefits generally.

Yu Gong: Effectional performance across all metrics was more impressive as the show's remarkable longitudinal effect with its influence defended well beyond the online domain as opposed to tourism to filming location in Xinjiang to effectively defend the landscape.

Yu Gong: We, we, why, why Paladin of the IP, we worked with creative team, tool host, or open field concert in Xinjiang, in July, which was widely claimed by users, sponsors, and the local culture and tourism bureau.

Yu Gong: In addition, we further solidified our whole position as the go-to platform for the pan-general by launching dramas, by launching a new series of dramas that will be released in the second quarter of the year.

Yu Gong: In the second quarter, we launched a total of 15 key titles in our movie channel including multiple boxes of this.

Unknown Executive: Thank you. There are no further questions at this time, I'll now hand back to management for closing remarks. Thank you everyone for participating in the call, and if you have further questions, please don't have to take to contact us. Thank you. Thank you all very much. That does conclude our conference today. Thank you for participating. You may now disconnect.

Yu Gong: The key is that such an article 20 years ago, and the second, the title tag, title tag, tool, visualization art in our clouded animals will launch the 21 titles covering the latest and most popular, the article related, such as box office.

Yu Gong: For original movies, we released various, various, such as, if that's a comedy, from my team future, Tianzhu Haiyang, and the fans cried, the fact, Cao Yi Chen Tai.

Yu Gong: For variety shows, our two flagship shows, returned with the new season, namely, the Detective Adventure Season 4, Meng Ha.

Yu Gong: Under the graph of China, 2020, four, Xinhua Town, also which continue to be well recognized by other types.

Yu Gong: The Web of China 2004 also generated considerable membership venues for animations with a new tool invested in original Chinese animation and began to see encouraging initial results with enhanced production capabilities.

Yu Gong: How dare you serve as a perfect example, Tong Guai Hitong?

Yu Gong: As it hit multiple platforms for IT original animation, it is our first original animation to break off of your narrative.

Yu Gong: Popularity and impact of 5,000 is very new and a new user acquisition also reached new highs.

Yu Gong: As we enter the several locations in which it is a critical broadcasting video for online video platform, we are affected that our premium content has helped our great-game market leadership.

Yu Gong: We roll out premium content in both Asian and modern genres to appear to a wide audience with particular focus on young viewers who have more free time to enjoy our offering during their holiday.

Yu Gong: So far, strange tales of Tang Dynasty isn't too under a lonely haorong journey, although we are all well received by audiences additionally in the past genre, the drama, intelligence, and the theme for the young wine booth in Taiwan are both showcases, a strong user engagement.

Yu Gong: Notably, strange tales of Tang Dynasty return for its second season showcasing remarkable qualities that have led to a two-break IT popularity impact score of 10,000.

Yu Gong: The acclaimed heroes have demonstrated a pronounced long-tail effect.

Yu Gong: The third season has substantially applied the user's comfort and the membership venue generated by the first season, increasing them by about 6.4 and 10.4 with passive length.

Yu Gong: This drama also serves as an excellent example of our serialized approach to IP development.

Yu Gong: Incarnates by the effect of the first two seasons' production for the third season is set to begin shortly.

Yu Gong: Additionally, the IP starts to generate that worse remedial stream, as it flows now into a wide domain, including entertainment, tourism, and consumer tools.

Yu Gong: In a strategy, move to capitalize on this success, we have launched the FBES.

Yu Gong: We are sheltered in key details, such as Beijing Shenzhen and Xi'an.

Yu Gong: This initiative aims to broaden the impact on the presence of our original content, extending beyond traditional screens.

Yu Gong: Beyond drivers are creating a table that creates a table that is spreading into new categories.

Yu Gong: And then, a brand new digital IT work is shown.

Yu Gong: IP has gathered users' praise for its innovative formats and recorded a peak IT popularity index of over 7,000.

Yu Gong: Additionally, the King of Standard Committee, Xi Ju Zhuang, Zhang Kouji, market IT's first exploration into Standard Committee.

Yu Gong: The show has received an encouraging initial feedback sending out among the committee variety offerings this summer.

Yu Gong: Moving on to our content supply for drummers, we expect the stability of premium content supply to be meaningful in hand.

Yu Gong: Meanwhile, we are first attracting the production of Asian customers, idol drummers and the modern idol drummers, both targeting female audiences.

Yu Gong: Some of the much anticipated works in this genre include Gou Yif, Su Fangguan, a moment back from our new song, Lansang in Winter, Dong Zhiru, No Mi Night, Timeline Love, C.S.

Yu Gong: Xuan, Fang of Huoteng, Zhang Honghui, Mu, Ying Briser, Bai Yue, Fan Xing, and a lot of a divide, three.

Yu Gong: China is a food in the rural state, and the spread of the country.

Yu Gong: All audiences can participate in that work with five content offerings, including form to be the one.

Yu Gong: Fan Xing, Gou, Northwater, Baixuan, the fell-ass season two, Wu Suo, diversified the article he's on the work, which in itself produced the idea of the field are invited to be released in the autumn, including Jing, Pinau, and a broken wind, a blood-scented, a blood-scented.

Yu Gong: For variety shows, I have a way planned to release a greater number of titles in the second half of the year, compared to the first.

Yu Gong: Building on the moment of ten days and the theme of the center-up comedy.

Yu Gong: We are pre-carrying to launch more innovative shows, including the moon and shining the solar U.S., which is effective to release later this month.

Yu Gong: Moving on to animation, we expect to see a surge in title sharing the second half of the year, which increased that year, and when that worth the vacation in general, we plan to launch 8 to 14 additional seasons of key original works, compared to the first half.

Yu Gong: Alongside, how dare you, we, Chen Li Tong, we have also launched the final recall, the legend of Kai Luo, Chen Wu Tianzun, and a moment by forever, which shows its IP with an upcoming general series of the same name, the action packet, anime, super cute, actual ordinary chapter, totally, totally, it's also that to release soon.

Yu Gong: A separate note at year has become one of the key content sources for traditional TV media, covering of such as CCTV, satellite TV, and regional TV stations, thanks to our enhanced offering of original content.

Yu Gong: In just the first half of 2021, we have distributed about 50 drama series, really influencing the long tail effect of premium content.

Yu Gong: The value of our IP has been even further at least by exploring diversity files, monetization streams, for example, from Chinese radio from the dramas, from the spirit, much maker, Ran Meng Pat, Wu Yao Xiaohong, Yang Yu Hong Tian, which are new high for IT or new dramas.

Yu Gong: We have also worked with, in combination, a twi graph for IP licensing, a swine product, a customer liation, a customer micro-culture, total revenue was RIP 1.5 billion down 2% year over year, performance as remained as a highlight of the culture growing as a healthy rate over year.

Yu Gong: Key sector such as e-commerce and internet services demonstrated solid performance with e-commerce revenue from the June 18th Shopping Festival or growing 80% annually, an annual from internet services or 30% annually.

Yu Gong: The solid result in performance as it's also a fair reflection of our So upgrading ADR Classical Mechanism and re-inforced by beating aggressors, we have further enhanced the monetization efficiency of traffic and ROI for our clients.

Yu Gong: Additionally, all AI tools now cover broader industries, enabling more efficient ADR production and driving AI part at value by 150% sequentially.

Yu Gong: All brands at value was done annually, mainly due to fuel where it shows lost.

Yu Gong: But that are creamy, creamy content, a panel unit will affect brand and road hazards, with 59% of the brand new stepping from content targeted at.

Yu Gong: In particular, our major drivers achieved notably double-digit annual growth in ground yield.

Yu Gong: The performance of the June 18th shopping festival was also in line with our ex-patients.

Yu Gong: Moving on to technology and products, we remain committed in advancing technology innovation, as it is crucial in croaking content production, user experience and operational efficiency.

Yu Gong: For example, our workflow production technology used to be limited to fantasy genres.

Yu Gong: This caught our marks and exciting briefs soon as we successfully extended its application in stereo territory, applying it within the reality-same drama for the first time.

Yu Gong: We have also made meaningful programs with our in-house pre-village pre-wetualization technology.

Yu Gong: This tool allows for the rapid design and virtualization of things and the shows before actual filming begins. We have applied this across multiple flagship projects, and it has led to life ingress in production efficiency. Our in-house developed platform continues to demonstrate its power.

Yu Gong: Our in-house IT content management system has been in operation for over two years.

Yu Gong: So please take it.

Yu Gong: Data driven system provides substantial help to management team and the producers in project managing effective ways out of its content quality under that threat.

Yu Gong: Now, this management system has covered all our projects in drama, movie and animation.

Yu Gong: Another high efficient system is hot intelligence production management system, which is widely used by a production crews for that works on side equipping them with frontline production tool and production management capabilities.

Yu Gong: In the second author alone, 21 dramas adopted the system today to date.

Yu Gong: This system has been used in 67 ITU dramas and, again, widespread joint coordination for effective needs.

Yu Gong: In addition, we have expanded the use of AI across several aspects covering production assessments, creating activity, marketing and distribution.

Yu Gong: This broad application has meaningfully encouraged the content production on the operation of efficiencies.

Yu Gong: For example, AI has supported learning full casting and the decision making during the initial phase of product development.

Yu Gong: AI also allows us to know how our advertising innovation for focus greatest might make a random impact with integrated virtual culture and things into added materials.

Yu Gong: Substantially, increasing add custom outcomes.

Yu Gong: This new app format will welcome by advertisers and opened up and poor possibility.

Yu Gong: For content marketing, we have implied AI model modules to analyze of cloud information and generate key marketing points to improve marketing efficiency.

Yu Gong: Finally, for our business of performance in regions outside of mainland China, for the second culture, we attend solid performance in our overseas business, with both total reviews and membership schedule to grow annually and sequentially.

Yu Gong: The inference for from C-drama and IT's original content continue to stress it.

Yu Gong: By the 30% annual increase in membership annual from top C-dramas during the culture, all locations, all local location attempts have also done to build work.

Yu Gong: The accumulated, accumulated a number of views of our original type drama might then be in.

Yu Gong: The application racked first in a number of markets, including the U.S.

Yu Gong: Canada and UK.

Yu Gong: We have also made solid progress in animations.

Yu Gong: How dare you have attend the mathematical worship and venue on our overseas set, which historic or high among all IT or to all Chinese enemies?

Yu Gong: and even also performed top Chinese animation in several countries.

Yu Gong: Loveraging our premium content they have expanded local partnership to boost global penetration and monetization of efforts including deep-depending collaboration with telecom operators in overseas markets to enrich bond loan products and strengthen promotion activities.

Yu Gong: For example, we have partnered with ITSILAT, the latest telecom company in the middle eastern and North Africa market for stream ITS content on their OTT platform.

Yu Gong: This partnership will further enhance the influence of three-drama VR beyond Asian market.

Yu Gong: In the future, we will continue to enhance the influence of the IT brand overseas with premium C-POP content in key markets.

Yu Gong: Accelerate production of local content and export diversified IP monetization opportunities.

Yu Gong: In summary, looking ahead, we are dedicated to pursuing our long-term growth with a sustainable approach.

Yu Gong: We will grow out more diversified premium content and apply innovative technologies more intensively and continue to enhance our team and create a territory under exact rotation capabilities with that.

Yu Gong: We believe the flywheel effect of ITS content ecosystem will drive our long-term growth.

Jun Wang: Now, let me pass the answer to your total sum of national performance.

Jun Wang: Thanks to Mr. Gong and Hello everyone.

Jun Wang: Let me walk you through the key numbers.

Jun Wang: In the second quarter, the total RAM news will be 7.4 billion down 5% annually.

Jun Wang: The membership services RAM news will be 4.5 billion down 9% annually, primarily due to fluctuations in account sleep performance and previously discussed.

Jun Wang: For online advertising, RAM news decreased by 2% year over year to RMB 1.5 billion. This was primarily due to the decrease in brand ad business issues, which again is due to the decrease of the variety shows we are during the quarter.

Jun Wang: But the results were partially offset by the healthy growth of the performance ad businesses.

Jun Wang: Content distribution RAM news reached RMB 698 million in a group of 2% annually.

Jun Wang: Other RAM news increased by 16% annually to RMB 784 million, partially driven by the increase of RAM news derived from the paid agency services and the third party cooperation.

Jun Wang: To be honest, you caught an expensive carbon cost with R&B 4.1 billion down 2% annually.

Jun Wang: Total operating expenses were R&B 1.4 billion flat annually. This was in line with our supply and marketing spending strategy.

Jun Wang: Turning to profits in cash flow, the non-cap operating income was R&B 500 and 1 million in the corresponding margin of 7%.

Jun Wang: The operating cash flow totaled R&B 411 million as the remaining part of the 9th contact of quarters.

Jun Wang: At the end of the second quarter, we had a cash equivalent, short-term investment, and a long time worth through the cash included in prepayments and other assets, totaling of R&B 8.6 billion.

Jun Wang: We have provenly managed financial resources, starting to improve the overall health of our business and to optimize the financial leverage of our balance sheet. In August, we have completed the repurchase rights offer for our convertible notes from 2022.

Jun Wang: An aggregated principal amount of US$390,000 was valid at least the R&B and the repurchase, in only 157,000 aggregated principal amounts of the notes remained of the standing.

Jun Wang: For detailed financial data, please refer to our press release on our higher-up website.

Unknown Executive: I want to open a flow of Q&A.

Unknown Executive: If you wish to have follow-up questions, please rejoin the Q.

Ji Teng Zhang: Your first question comes from Ji Teng Zhang with CIC.

Ji Teng Zhang: Thank you for taking my question, my question about the competition landscape.

Ji Teng Zhang: We noticed that other platforms have some dot-busters here, and our market share, which has been meeting recently, has also graduated.

Ji Teng Zhang: How does measurement fields occur until competition landscape for long videos, and what's your strategy?

Yu Gong: Thank you.

Yu Gong: [inaudible] Our current drama reserve accommodates the viewing demands of the mainstream audience.

Yu Gong: We have a relatively relatively ample reserve specifically for the core genre of ancient costume dramas aimed at female audiences, as well as for the mystery suspense and the reality scene genres.

Yu Gong: We will also continue to strengthen our capabilities for IP sterilization developments.

Yu Gong: For example, the stringed tail of Tang Dynasty Season 2, which launched in Q2, is a successful case of sterilized content development.

Yu Gong: The first season will soon be introduction in the future.

Yu Gong: The well-loved series such as The Fearless End, Under the Skin, will also launch their second season.

Yu Gong: And the ingenious one season 2 is also in preparation.

Yu Gong: Thank you.

Lincoln Kong: Your next question comes from Lincoln Kong with Goldman Sachs.

Lincoln Kong: Thank you.

Lincoln Kong: I invite our senior B.P.O, members to discuss how to answer this question.

Lincoln Kong: From the perspective of membership structure, our cornerstone members represent the stable base of our subscribers and have remained steady. Fluctuations may actually come from the members who are attracted by meals and popular content.

Lincoln Kong: As the summer season arrives, our content offering positively influence the return of these children's users and retention of long-standing members.

Lincoln Kong: In Q2, our arms, which is the average revenue per member, maintain a solid year over year growth, the current level of arms provides us with flexibility in terms of operational tactics.

Lincoln Kong: In the near future, our focus will be on expanding the scale of our membership, but the ultimate goal remains to maximize membership revenue.

Lincoln Kong: In the future, we will also plan to implement more practice measures to optimize account sharing and compact parity.

Lincoln Kong: Thereby supporting the long-term healthy growth of our membership business, we will share the fifth plan with everyone of the promises made.

Lincoln Kong: Thank you.

Maggie Ye: Your next question comes from Maggie Ye with CLSA.

Maggie Ye: Thanks for the chance to ask questions regarding our overseas business with the very distant revenue growth in past quarters.

Maggie Ye: [inaudible] For the overseas business, and your discussion.

Maggie Ye: We started explaining to the overseas market in 2019, and have achieved initial success. In 2023, our overseas operations reached major operating receipts.

Maggie Ye: A goal for 2024 is to boost revenue growth while continuing to increase the profit.

Maggie Ye: And for you to this year, the total revenues for overseas and also membership revenue will maintain healthy year over year and also quarter over quarter growth.

Maggie Ye: [inaudible] And our CFO one thing just added to this and he mentioned that in 2023 our overseas business actually reached four-year operating rate even.

Maggie Ye: This is based on the fact that from the management accounting presented.

Maggie Ye: This is based on the views measured by Qiaohui, correct and then this is a very healthy trend that has developed over the past year.

Maggie Ye: Thank you.

Thomas Chong: Your next question comes from Thomas Chong with Jeffries.

Thomas Chong: Thank you.

Thomas Chong: Hi, good evening.

Thomas Chong: Thanks, management for taking my question.

Thomas Chong: As ITE has a lot of good IP, can management share your strategy of unlocking the IP potential in different areas other than membership and advertising?

Thomas Chong: Thank you.

Xiaohui Wang: RCO is answering this question.

Xiaohui Wang: He mentioned that Compton IP is the core asset of our company. Promoting the monetization of Compton IP in various forms including offline business is an important and sustained effort that is key to enhancing our long-term value and competitiveness.

Xiaohui Wang: We actually described this IP based business model with a metaphor called eating a fish in multiple ways, which actually emphasize our ability to transform each piece of our Compton IP into numerous prospects. For revenue, thereby, we believe this will maximize its value across different markets and platforms.

Xiaohui Wang: With our many years of focus on producing a regional Compton, actually the value of our company's IP assets have grown significantly.

Xiaohui Wang: For instance, two years ago in 2002, our regional dramas have accounted for over half of our quarterly new release key dramas.

Xiaohui Wang: And this proportion now has stabilized at around 70 percent, and also leading high-quality, high-original dramas have not only found success during their initial broadcasting period but also have demonstrated a sustainable long-tail effect which maintains a popularity over an extended period of time.

Xiaohui Wang: [inaudible] consumption of the consumption the consumption of the consumption In addition to what I just mentioned, the VR data experiences that I mentioned earlier, we are also going for the initiative to send it around our IPs, for example, our Qi Xiaobai, which is the IP merchandise sports, and also Qi Bubble Park, which is a theme park designed for children.

Xiaohui Wang: And these initiatives are actually developing in collaboration with our partners, similar to what I just mentioned, the light asset approach.

Xiaohui Wang: The aim is to provide it to users with a very comprehensive and engaging entertainment experience.

Unknown Executive: Thank you.

Unknown Executive: There are no further questions at this time, I'll now hand back to management for closing remarks.

Unknown Executive: Thank you everyone for participating in the call, and if you have further questions, please don't have to take to contact us.

Unknown Executive: Thank you.

Unknown Executive: Thank you all very much.

Unknown Executive: That does conclude our conference today.

Unknown Executive: Thank you for participating.

Unknown Executive: You may now disconnect.