Q2 2026 NetEase Inc Earnings Call

August 20, 2026

Operator 2: Good day, and welcome to the NetEase Q2 2026 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brandi Piacente. Please go ahead.

Operator: Good day, and welcome to the NetEase Q2 2026 Earnings Conference =Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brandi Piacente. Please go ahead.

Speaker #2: Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the future performance of the company and our intended to qualify for the Safe Harbor from liability as established by the U.S.

Brandi Piacente: Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the future performance of the company and are intended to qualify for the safe harbor from liability as established by the US Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion. A general discussion of the risk factors that could affect NetEase's business and financial results is included in certain filings of the company with the Securities and Exchange Commission, including its annual report on Form 20-F and in announcements and filings on the Hong Kong Stock Exchange's website.

Speaker #2: Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, assumptions, and other factors.

Speaker #2: Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and in this discussion.

Speaker #2: A general discussion of the risk factors that could affect NetEase's business and financial results is included in certain filings of the company with the Securities and Exchange Commission, including its annual report on Form 20-F, and in announcements and filings on the Hong Kong Stock Exchange's website.

Speaker #2: The company does not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures, which should not be considered in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

Brandi Piacente: The company does not undertake any obligation to update this forward-looking information except as required by law. During today's call, management will also discuss certain non-GAAP financial measures, which should not be considered in isolation or as a substitute to the financial information prepared and presented in accordance with US GAAP. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the Q2 2026 earnings news release issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the NetEase corporate website at ir.netease.com. Joining us today on the call from NetEase's senior management are Mr. William Ding, Chief Executive Officer, Mr. Hu Zhipeng, Executive Vice President, Ms. Aileen Mo, Vice President of Finance, and Mr. Bill Pong, Vice President of Corporate Development.

Speaker #2: GAAP. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the second quarter 2026 earnings news release issued earlier today.

Speaker #2: As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the NetEase corporate website at ir.netease.com.

Speaker #2: Joining us today on the call from NetEase's senior management are Mr. William Ding, Chief Executive Officer; Mr. Hu Jiapeng, Executive Vice President; Ms. Eileen Mao, Vice President of Finance; and Mr. Bill Pong, Vice President of Corporate Development.

Speaker #2: I will now turn the call over to Bill, who will read the prepared remarks on Williams' behalf. Bill?

Brandi Piacente: I will now turn the call over to Bill, who will read the prepared remarks on William's behalf. Bill?

Speaker #3: Thank you, Brandi. Welcome, everyone, to today's call. Before we begin, I would like to remind everyone that all percentages are based on R&D. In the first half of 2026, we delivered healthy growth across business segments.

Bill Pong: Thank you, Brandy, and welcome everyone to today's call. Before we begin, I would like to remind everyone that all percentages are based on RMB. in H1 2026, we delivered healthy growth across business segments. Total revenue reached RMB 30.1 billion in Q2, driven by the solid performance of our games business. Our games and related value-add services generated net revenues of RMB 25 billion, reflecting the broader appeal of our portfolio in both domestic and overseas markets. The strength of our portfolio stems from our sustained focus on innovation across the full life cycle of our games, from original concept and development to long-term life operations. By combining our engineering capabilities, creative design expertise, and disciplined execution, we bring new ideas to life and deliver fresh experiences across genres, platforms, and markets. One recent example is Sea of Relics, released in China in July.

Bill Pang: Thank you, Brandy, and welcome everyone to today's call. Before we begin, I would like to remind everyone that all percentages are based on RMB. in H1 2026, we delivered healthy growth across business segments. Total revenue reached RMB 30.1 billion in Q2, driven by the solid performance of our games business. Our games and related value-add services generated net revenues of RMB 25 billion, reflecting the broader appeal of our portfolio in both domestic and overseas markets. The strength of our portfolio stems from our sustained focus on innovation across the full life cycle of our games, from original concept and development to long-term life operations. By combining our engineering capabilities, creative design expertise, and disciplined execution, we bring new ideas to life and deliver fresh experiences across genres, platforms, and markets. One recent example is Sea of Relics, released in China in July.

Speaker #3: Total revenue reached RMB 30.1 billion in the second quarter. Driven by the solid performance of our games business, our games and related value-added services generated net revenues of RMB 25 billion, reflecting the broader appeal of our portfolio in both domestic and overseas markets.

Speaker #3: We strengthened our portfolio, which stems from our sustained focus on innovation across the full lifecycle of our games. From original concept and development through long-term live operations, by combining our engineering capabilities, creative design expertise, and disciplined execution, we bring new ideas to life and deliver fresh experiences across genres, platforms, and markets.

Speaker #3: One recent example is Sea of Remnants. Released in China in July, it showcases our ongoing emphasis on original IP and genre innovation. Built on our in-house game engine, Sea of Remnants combines a distinctive visual style with an open-world ocean fantasy setting.

Bill Pong: It showcases our ongoing emphasis on original IP and genre innovation. Built on our in-house game engine, Sea of Relics combines a distinctive visual style with an open world ocean fantasy setting. Players step into a vivid world to embark on dynamic voyages, explore diverse islands, and discover richly layered stories. By combining naval combat, extraction gameplay, and roguelike progression, the game creates varied adventures that unfold differently each time. Across themed islands, players encounter a wide cast of NPCs that bring each island to life through meaningful interactions and evolving storylines. A variety of brand and content collaborations have also expanded the game's reach, extending its content ecosystem beyond the core gameplay experience. We are also preparing for the game's global rollout and look forward to introducing Sea of Relics to players worldwide. Our innovation efforts are not only limited to new launches.

Bill Pang: It showcases our ongoing emphasis on original IP and genre innovation. Built on our in-house game engine, Sea of Relics combines a distinctive visual style with an open world ocean fantasy setting. Players step into a vivid world to embark on dynamic voyages, explore diverse islands, and discover richly layered stories. By combining naval combat, extraction gameplay, and roguelike progression, the game creates varied adventures that unfold differently each time. Across themed islands, players encounter a wide cast of NPCs that bring each island to life through meaningful interactions and evolving storylines. A variety of brand and content collaborations have also expanded the game's reach, extending its content ecosystem beyond the core gameplay experience. We are also preparing for the game's global rollout and look forward to introducing Sea of Relics to players worldwide. Our innovation efforts are not only limited to new launches.

Speaker #3: Players step into a vivid world to embark on dynamic voyages, explore diverse islands, and discover richly layered stories. By combining naval combat, extraction gameplay, and roguelike progression, the game creates varied adventures that unfold differently each time.

Speaker #3: Across themed islands, players encounter a wide cast of NPCs that bring each island to life through meaningful interactions and evolving storylines. A variety of brand and content collaborations have also expanded the game's reach, extending its content ecosystem beyond the core gameplay experience.

Speaker #3: We are also preparing for the game's global rollout and look forward to introducing Sea of Remnants to players worldwide. Our innovation efforts are not only limited to new launches.

Bill Pong: They extend across our established titles, where we keep evolving gameplay systems, introducing new content, and strengthening live operations to sustain player enthusiasm over time. Sword of Justice launched its major anniversary update, New World, in June. The comprehensive upgrade to the open world experience improved visual quality, streamlined cultivation systems, and refined the in-game economy, creating a more enjoyable experience for both returning and new players. It also introduced the Dali, a highly immersive new region to expand exploration and add greater storytelling depth. The community response was strong, with active players exceeding 10 million on launch day and concurrent users reaching a two-year high, demonstrating the title's ongoing appeal. Players continue to gravitate to Identity V with its steady cadence of live service updates, including anniversary content, crossover events, and new gameplay experiences.

Bill Pang: They extend across our established titles, where we keep evolving gameplay systems, introducing new content, and strengthening live operations to sustain player enthusiasm over time. Sword of Justice launched its major anniversary update, New World, in June. The comprehensive upgrade to the open world experience improved visual quality, streamlined cultivation systems, and refined the in-game economy, creating a more enjoyable experience for both returning and new players. It also introduced the Dali, a highly immersive new region to expand exploration and add greater storytelling depth. The community response was strong, with active players exceeding 10 million on launch day and concurrent users reaching a two-year high, demonstrating the title's ongoing appeal. Players continue to gravitate to Identity V with its steady cadence of live service updates, including anniversary content, crossover events, and new gameplay experiences.

Speaker #3: They extend across our established titles, where we keep evolving gameplay systems, introducing new content, and strengthening live operations to sustain player enthusiasm over time.

Speaker #3: Justice launched its major Adversary Update, New Worlds, in July. The comprehensive upgrade to the open-world experience improved visual quality, streamlined cultivation systems, and refined the in-game economy.

Speaker #3: Creating a more enjoyable experience for both returning and new players. It also introduced DALL-E, a highly immersive new region to expand exploration and add greater storytelling depth.

Speaker #3: The community response was strong, with active players exceeding 10 million on launch day and concurrent users reaching a two-year high, demonstrating the title's ongoing appeal.

Speaker #3: Players continue to gravitate to and identify with its steady cadence of live service updates, including adversary content, crossover events, and new gameplay experiences. In June, the game introduced Cryptic Nodes, a new PvE mode that offers a lighter experience beyond its core PvP gameplay.

Bill Pong: In June, the game introduced Cryptic Nodes, a new PvE mode that offers a lighter experience beyond its core PvP gameplay, opening up new ways for the community to play. This excitement carried into July with the launch of Season 44, introducing new themed costumes and events alongside the latest Paper Bride crossover. This update sparked active discussions across live streaming and social media platforms, helping keep the community engaged and reinforcing the game's long-term appeal. During Q2, the Naraka: Bladepoint franchise unified its PC and mobile ecosystems. Players can now enjoy the game's signature melee combat seamlessly across devices while strengthening connections across its broader player community. Building on the increased connectivity, Naraka: Bladepoint kicked off its fifth anniversary celebration in July with a major content update that introduced all-new land and underwater battlefields, as well as a new underwater combat system.

Bill Pang: In June, the game introduced Cryptic Nodes, a new PvE mode that offers a lighter experience beyond its core PvP gameplay, opening up new ways for the community to play. This excitement carried into July with the launch of Season 44, introducing new themed costumes and events alongside the latest Paper Bride crossover. This update sparked active discussions across live streaming and social media platforms, helping keep the community engaged and reinforcing the game's long-term appeal. During Q2, the Naraka: Bladepoint franchise unified its PC and mobile ecosystems. Players can now enjoy the game's signature melee combat seamlessly across devices while strengthening connections across its broader player community. Building on the increased connectivity, Naraka: Bladepoint kicked off its fifth anniversary celebration in July with a major content update that introduced all-new land and underwater battlefields, as well as a new underwater combat system.

Speaker #3: Opening up new ways for the community to play, this excitement carried into July with the launch of Season 44, introducing new themed costumes and events alongside the latest Paper Bride crossover.

Speaker #3: This update sparked active discussions across live streaming and social media platforms, helping keep the community engaged and reinforcing the game's long-term appeal. During the second quarter, the Naraka 3.0 franchise unified its PC and mobile ecosystems.

Speaker #3: Players can now enjoy the game's signature melee combat seamlessly across devices, while strengthening connections across its broader player community. Building on the increased connectivity, Naraka 3.0 kicked off its fifth anniversary celebration in July.

Speaker #3: With a major content update that introduced all-new land and underwater battlefields, as well as a new underwater combat system, these additions refreshed the game's core experience and drove strong player engagement across platforms.

Bill Pong: These additions refreshed the game's core experience and drove strong player engagement across platforms. Eggy Party further solidified its position as China's leading party game destination. It reached a new milestone, 700 million registered users, and monthly active users remained steadily above 100 million. In June, the game celebrated its fourth anniversary, bringing another wave of player activity supported by diverse gameplay, a vibrant UGC ecosystem, and a rich slate of live operations. This strong momentum continued into the summer, with Eggy Party remaining among the top-ranked titles on both China's iOS top download and grossing chart, and peaking at number 3 on the top grossing chart. Peak daily active users also reached a multi-year high for the summer period. UGC remains one of Eggy Party's defining strengths.

Bill Pang: These additions refreshed the game's core experience and drove strong player engagement across platforms. Eggy Party further solidified its position as China's leading party game destination. It reached a new milestone, 700 million registered users, and monthly active users remained steadily above 100 million. In June, the game celebrated its fourth anniversary, bringing another wave of player activity supported by diverse gameplay, a vibrant UGC ecosystem, and a rich slate of live operations. This strong momentum continued into the summer, with Eggy Party remaining among the top-ranked titles on both China's iOS top download and grossing chart, and peaking at number 3 on the top grossing chart. Peak daily active users also reached a multi-year high for the summer period. UGC remains one of Eggy Party's defining strengths.

Speaker #3: Thank you. Party solidified its position as China's leading party game destination. It reached a new milestone: 700 million registered users. Monthly active users remained steadily above 100 million.

Speaker #3: In June, the game celebrated its fourth anniversary, bringing another wave of player activity. Supported by diverse gameplay, a vibrant UGC ecosystem, and a rich slate of live operations.

Speaker #3: This strong momentum continued into the summer, with Active Party remaining among the top-ranked titles on both China's LS top download and watching charts, and peaking at number three on the top watching chart.

Speaker #3: Peak daily active users also reached a multi-year high for the summer period. UGC remains one of our active party's defining strengths. Over the past year, the ecosystem has continued to thrive, supported by more powerful creation tools and a growing base of engaged creators.

Bill Pong: Over the past year, the ecosystem has continued to thrive, supported by more powerful creation tools and a growing base of engaged creators. Total creator rewards reached a new milestone of over RMB 200 million to date, reflecting both the vitality of this creator community and strong player demands for diverse user-generated content. Recent upgrades to the editor, including integration with multiple AI models, have also made it easier for creators to learn, create, and program. Together, these efforts expand what players can create and support Eggy Party's evolution from a standalone party game into a broader content platform. Our flagship MMORPG, Fantasy Westward Journey Online, continued to evolve across both its classic and unlimited servers. During the summer, its new expansion pack and content further engaged players, underscoring its timeless popularity and its healthy community.

Bill Pang: Over the past year, the ecosystem has continued to thrive, supported by more powerful creation tools and a growing base of engaged creators. Total creator rewards reached a new milestone of over RMB 200 million to date, reflecting both the vitality of this creator community and strong player demands for diverse user-generated content. Recent upgrades to the editor, including integration with multiple AI models, have also made it easier for creators to learn, create, and program. Together, these efforts expand what players can create and support Eggy Party's evolution from a standalone party game into a broader content platform. Our flagship MMORPG, Fantasy Westward Journey Online, continued to evolve across both its classic and unlimited servers. During the summer, its new expansion pack and content further engaged players, underscoring its timeless popularity and its healthy community.

Speaker #3: Total creator rewards reached a new milestone of RMB 200 million to date, reflecting both the vitality of this creator community and strong player demand for diverse user-generated content.

Speaker #3: Recent upgrades to the editor, including integration with multiple AI models, have also made it easier for creators to learn, create, and program. Together, these efforts expand what players can create and support Active Party's evolution from a standalone party game into a broader content platform.

Speaker #3: Our flagship MMORPG, Phoenix Wrestler Journey Online, continues to evolve across both its classic and unlimited servers. During the summer, its new expansion pack and Dunhuang-themed content further engage players.

Speaker #3: Underscoring its timeless popularity and its healthy community. Meanwhile, Phoenix Wrestler Journey Mobile carried its record-setting momentum into the second quarter, supported by refinements to the in-game economy and ongoing gameplay iterations.

Bill Pong: Meanwhile, Fantasy Westward Journey Mobile carried its record-setting momentum into Q2, supported by refinements to the in-game economy and ongoing gameplay iterations. During the quarter, the game introduced a new equipment progression system and an extraction gameplay mode. These additions created a fresh progression path and greater strategic depth, gaining real traction with players. In July, the Summer Treasure Pavilion offered a wider selection of costumes and items tailored to players' preferences, driving robust commercial performance. The launch of the Origin server helped the Westward Journey Returns build strong momentum in Q2. By preserving the iconic appeal of the Westward Journey franchise while introducing a portrait mode interface and more relaxed gameplay, the Origin server delivers a more accessible experience that players can enjoy anytime and anywhere, contributing to the title's strong performance in Q2.

Bill Pang: Meanwhile, Fantasy Westward Journey Mobile carried its record-setting momentum into Q2, supported by refinements to the in-game economy and ongoing gameplay iterations. During the quarter, the game introduced a new equipment progression system and an extraction gameplay mode. These additions created a fresh progression path and greater strategic depth, gaining real traction with players. In July, the Summer Treasure Pavilion offered a wider selection of costumes and items tailored to players' preferences, driving robust commercial performance. The launch of the Origin server helped the Westward Journey Returns build strong momentum in Q2. By preserving the iconic appeal of the Westward Journey franchise while introducing a portrait mode interface and more relaxed gameplay, the Origin server delivers a more accessible experience that players can enjoy anytime and anywhere, contributing to the title's strong performance in Q2.

Speaker #3: During the quarter, the game introduced a new equipment progression system and an extraction gameplay mode. These additions created fresh progression paths and greater strategic depth, gaining real traction with players.

Speaker #3: In July, the summer Treasure Pavilion offered a wider selection of costumes and items tailored to players' preferences, driving robust commercial performance. The launch of the Origin Server helped Wrestler Journey Returns build strong momentum in the second quarter.

Speaker #3: By preserving the iconic appeal of the Wrestler Journey franchise, while introducing a portrait mode interface and more relaxed gameplay, the origin server delivers a more accessible experience that players can enjoy anytime and anywhere.

Speaker #3: Contributing to the title's strong performance in Q2, InfiniBorders further reinforced its leading position in the SLG genre through new, innovative gameplay and initiatives designed to address community needs.

Bill Pong: EVE Borders further reinforced its leading position in the SLG genre through new innovative gameplay and initiatives designed to address community needs. New features such as EVE Border Kill, a social deduction game mode, were well-received by players, while its collaboration with Minecraft China helped the game reach a broader and younger audience. The launch of the highly anticipated special servers, together with a series of pre-anniversary events ahead of its 11th anniversary, generated renewed excitement across the community, demonstrating the title's enduring appeal and continued relevance in the strategy game market. Alongside our success in the domestic market, we made additional steady progress in broadening our global reach. Where Winds Meet has demonstrated a healthy growth trajectory since its successful global launch last year. Its player base continued to grow in Q2, with positive reviews on Steam staying above 87%.

Bill Pang: EVE Borders further reinforced its leading position in the SLG genre through new innovative gameplay and initiatives designed to address community needs. New features such as EVE Border Kill, a social deduction game mode, were well-received by players, while its collaboration with Minecraft China helped the game reach a broader and younger audience. The launch of the highly anticipated special servers, together with a series of pre-anniversary events ahead of its 11th anniversary, generated renewed excitement across the community, demonstrating the title's enduring appeal and continued relevance in the strategy game market. Alongside our success in the domestic market, we made additional steady progress in broadening our global reach. Where Winds Meet has demonstrated a healthy growth trajectory since its successful global launch last year. Its player base continued to grow in Q2, with positive reviews on Steam staying above 87%.

Speaker #3: New features, such as InfiniBorder Kill, a social deduction game mode, were well received by players. Additionally, its collaboration with Minecraft China helped the game reach a broader and younger audience.

Speaker #3: The launch of the highly anticipated special servers, together with a series of pre-anniversary events ahead of its 11th anniversary, generated renewed excitement across the community.

Speaker #3: Demonstrating the title's enduring appeal and continued relevance in the strategy game market. Alongside our success in the domestic market, we made additional steady progress in broadening our global reach.

Speaker #3: Where Winds Meet has demonstrated a healthy growth trajectory since its successful global launch last year. Its player base continues to grow in the second quarter.

Speaker #3: With positive reviews on Steam staying above 87%, in June we brought this immersive open-world action RPG to even more players worldwide with its successful launch on Xbox.

Bill Pong: In June, we brought this immersive open-world action RPG to even more players worldwide with its successful launch on Xbox. The game also repeatedly ranked among the top 3 titles on Steam's global top seller chart following major content updates. This underscores the long-term potential of content-driven games and highlights our proven capabilities in delivering high-quality content and live operations. In the domestic market, Where Winds Meet also expanded its player community during the quarter with major new region additions, including Qingzhou and Dali. The Dali expansion proved particularly popular and pushed the game to the number 3 spot on China's iOS top-grossing chart. This update brought distinctive local culture, fresh narrative, and immersive exploration, driving year-over-year growth in quarterly revenue and achieving record high monthly active users. Marvel Rivals continued to build on its global success through a steady stream of seasonal content, live service updates, and community initiatives.

Bill Pang: In June, we brought this immersive open-world action RPG to even more players worldwide with its successful launch on Xbox. The game also repeatedly ranked among the top 3 titles on Steam's global top seller chart following major content updates. This underscores the long-term potential of content-driven games and highlights our proven capabilities in delivering high-quality content and live operations. In the domestic market, Where Winds Meet also expanded its player community during the quarter with major new region additions, including Qingzhou and Dali. The Dali expansion proved particularly popular and pushed the game to the number 3 spot on China's iOS top-grossing chart. This update brought distinctive local culture, fresh narrative, and immersive exploration, driving year-over-year growth in quarterly revenue and achieving record high monthly active users. Marvel Rivals continued to build on its global success through a steady stream of seasonal content, live service updates, and community initiatives.

Speaker #3: The game also repeatedly ranked among the top three titles on Steam's global top-seller chart following major content updates. This underscores the long-term potential of content-driven games and highlights our proven capabilities in delivering high-quality content and live operations.

Speaker #3: In the domestic market, Where Winds Meet also expanded its player community during the quarter with major new region additions, including Qingzhou and Hangzhou. The Hangzhou extension proved particularly popular and pushed the game to the number three spot on China's iOS top grossing chart.

Speaker #3: This update brought distinctive local culture, fresh narrative, and immersive exploration, driving year-over-year growth in quarterly revenue and achieving record-high monthly active users. Marvel Rivals continued to build on its global success through a steady stream of seasonal content, live service updates, and community initiatives.

Speaker #3: In June, the game introduced a refreshed 18-versus-18 mode set in the Kunlun Shenlong Arena. Alongside new heroes, maps, and events, there is broadened gameplay variety.

Bill Pong: In June, the game introduced a refreshed 18 versus 18 mode set in Kunlun Shenlong Arena, alongside new heroes, maps, and events that broadened gameplay variety. The Rivals Summer Festival added further momentum with a wide selection of themed costumes for fan-favorite characters, help pushing the game to number 2 on Steam's global top seller chart and number 1 in multiple regions, including the United States. Most recently, the franchise extended its reach beyond the screen through real-world touch points across major fan events. At San Diego Comic-Con in late July, Marvel Rivals generated even more excitement among players with new announcements and interactive fun activities. The Midseason Finals was later held in Los Angeles, attracting top players and fans while reinforcing the title's competitive ecosystem and long-term live service foundation.

Bill Pang: In June, the game introduced a refreshed 18 versus 18 mode set in Kunlun Shenlong Arena, alongside new heroes, maps, and events that broadened gameplay variety. The Rivals Summer Festival added further momentum with a wide selection of themed costumes for fan-favorite characters, help pushing the game to number 2 on Steam's global top seller chart and number 1 in multiple regions, including the United States. Most recently, the franchise extended its reach beyond the screen through real-world touch points across major fan events. At San Diego Comic-Con in late July, Marvel Rivals generated even more excitement among players with new announcements and interactive fun activities. The Midseason Finals was later held in Los Angeles, attracting top players and fans while reinforcing the title's competitive ecosystem and long-term live service foundation.

Speaker #3: The Rivals summer festival added further momentum with a wide selection of themed costumes for fan-favorite characters, helping push the game to number two on Steam's global top seller chart and number one in multiple regions, including the United States.

Speaker #3: Most recently, the franchise extended its reach beyond the screen through real-world touchpoints across major fan events. At San Diego Comic-Con in late July, Marvel Rivals generated even more excitement among players with new announcements and interactive fun activities.

Speaker #3: The mid-season finals were later held in Los Angeles, attracting top players and fans while reinforcing the title's competitive ecosystem and long-term live service foundation.

Speaker #3: As we continue to grow our existing portfolio, we're also advancing the development of new titles and exploring fresh ideas across diverse genres, gameplay experiences, and markets.

Bill Pong: As we continue to grow our existing portfolio, we are also advancing the development of new titles and exploring fresh ideas across diverse genres, gameplay experiences, and markets. ANANTA is progressing steadily towards launch. As a free-spirited urban open-world RPG, the game invites players to experience a vibrant modern city through a variety of characters, lifestyles, and activities, providing a high degree of freedom in exploration and interaction. With strong anticipation from player community, we will continue to share more updates as development progresses. Blood Message made a strong impression at the Summer Game Fest, where overseas audience responded positively to the latest gameplay footage. The trailer has since generated around 40 million views globally, with players praising its visual fidelity, distinctive storytelling, and cinematic combat. Our commitment to innovation and long-term operating capabilities also created value for our partner titles.

Bill Pang: As we continue to grow our existing portfolio, we are also advancing the development of new titles and exploring fresh ideas across diverse genres, gameplay experiences, and markets. ANANTA is progressing steadily towards launch. As a free-spirited urban open-world RPG, the game invites players to experience a vibrant modern city through a variety of characters, lifestyles, and activities, providing a high degree of freedom in exploration and interaction. With strong anticipation from player community, we will continue to share more updates as development progresses. Blood Message made a strong impression at the Summer Game Fest, where overseas audience responded positively to the latest gameplay footage. The trailer has since generated around 40 million views globally, with players praising its visual fidelity, distinctive storytelling, and cinematic combat. Our commitment to innovation and long-term operating capabilities also created value for our partner titles.

Speaker #3: Atlanta is progressing steadily towards launch. As the free-spirited, urban, open-world RPG, the game invites players to experience a vibrant, modern city through a variety of characters, lifestyles, and activities.

Speaker #3: Providing a high degree of freedom in exploration and interaction. With strong anticipation from the player community, we will continue to share more updates as development progresses.

Speaker #3: Blood Message made a strong impression at the Summer Game Fest, where the overseas audience responded positively to the latest gameplay footage. The trailer has since generated around 40 million views globally, with players praising its visual fidelity, unique and distinctive storytelling, and cinematic combat.

Speaker #3: Our commitment to innovation and long-term operating capabilities also created value for our partner titles. Blizzard titles performed well in China during the quarter, supported by localized operations and a steady stream of updates.

Bill Pong: Blizzard titles performed well in China during the quarter, supported by localized operations and a steady stream of updates. World of Warcraft and Hearthstone continue to engage their longstanding communities in China, backed by consistent updates and initiatives tailored to the local market. Overwatch celebrated its 10th anniversary during the quarter with special content, rewards, and activities that revitalized players and drove a significant increase in active users. Diablo 4 further expanded its presence in China through exclusive localized content, localized events, and newly introduced Chinese mythology-themed skins, driving solid growth in both active users and player retention during the second quarter. Together, these achievements reflect the breadth and strength of our portfolio, from new releases to established titles across China and global markets through both our own IP and partner collaborations.

Bill Pang: Blizzard titles performed well in China during the quarter, supported by localized operations and a steady stream of updates. World of Warcraft and Hearthstone continue to engage their longstanding communities in China, backed by consistent updates and initiatives tailored to the local market. Overwatch celebrated its 10th anniversary during the quarter with special content, rewards, and activities that revitalized players and drove a significant increase in active users. Diablo 4 further expanded its presence in China through exclusive localized content, localized events, and newly introduced Chinese mythology-themed skins, driving solid growth in both active users and player retention during the second quarter. Together, these achievements reflect the breadth and strength of our portfolio, from new releases to established titles across China and global markets through both our own IP and partner collaborations.

Speaker #3: World of Warcraft and Hearthstone continue to engage their long-standing communities in China, backed by consistent updates and initiatives tailored to the local market.

Speaker #3: Overwatch celebrated its 10th anniversary during the quarter, with special content, rewards, and activities that revitalized players and drove a significant increase in active users.

Speaker #3: Diablo IV further expanded its presence in China through exclusive localized content, localized events, and newly introduced Chinese mythology-themed skins, driving solid growth in both active users and player retention during the second quarter.

Speaker #3: Together, this achievement reflects the breadth and strength of our portfolio—from new releases to accepted titles, across China and global markets, through both our own IP and partner collaborations.

Speaker #3: We aim to keep our games relevant and engaging through new ideas, ongoing content updates, and disciplined live operations, while responding to evolving player expectations.

Bill Pong: We aim to keep our games relevant and engaging through new ideas, ongoing content updates, and disciplined live operations while responding to evolving player expectations. This innovative mindset will continue to guide us as we build stronger communities and create even more compelling experiences for players worldwide. Turning to our other businesses, Youdao further advanced its AI-native strategy and deepened AI-driven innovation across its ecosystem. In the second quarter, Youdao launched its latest large language model, Ziyue-4, with substantially enhanced capabilities. The new model delivers stronger performance in visual math and physics reasoning, particularly on complex diagrams at lower inference costs. Youdao also upgraded its translation model with an efficient acceleration mechanism, increasing inference speed by approximately 80%. Beyond large language models, it further advanced its AI agent capabilities towards autonomous execution of complex real-world tasks, demonstrating stronger capabilities beyond simple Q&A interactions.

Bill Pang: We aim to keep our games relevant and engaging through new ideas, ongoing content updates, and disciplined live operations while responding to evolving player expectations. This innovative mindset will continue to guide us as we build stronger communities and create even more compelling experiences for players worldwide. Turning to our other businesses, Youdao further advanced its AI-native strategy and deepened AI-driven innovation across its ecosystem. In the second quarter, Youdao launched its latest large language model, Ziyue-4, with substantially enhanced capabilities. The new model delivers stronger performance in visual math and physics reasoning, particularly on complex diagrams at lower inference costs. Youdao also upgraded its translation model with an efficient acceleration mechanism, increasing inference speed by approximately 80%. Beyond large language models, it further advanced its AI agent capabilities towards autonomous execution of complex real-world tasks, demonstrating stronger capabilities beyond simple Q&A interactions.

Speaker #3: This innovative mindset will continue to guide us as we build stronger communities and create even more compelling experiences for players worldwide. Turning to our other businesses, Yuda further advanced its AI-native strategy and deepened AI-driven innovation across its ecosystem.

Speaker #3: In the second quarter, Yuda launched its latest large language model, Confucius 4, with substantially enhanced capabilities. The new model delivers stronger performance in visual math and physics reasoning, particularly on complex diagrams, at a lower inference cost.

Speaker #3: Yuda also upgraded its translation model with an efficient acceleration mechanism, increasing inference speed by approximately 80%. Beyond large language models, it further enhances capabilities towards autonomous execution of complex real-world tasks, demonstrating stronger capabilities beyond simple Q&A interactions.

Speaker #3: The learning services segment continued its healthy development. Driven by the strong performance of Yuda Lingxu, popular features—including AI-powered English SE grading, AI quiz recommendations, and AI-based college admission advisors—continue to enhance user satisfaction and drive higher user retention.

Bill Pong: The learning services segment continued its healthy development, driven by the strong performance of Youdao. Popular features including AI-powered English essay grading, AI quiz recommendations, and AI-based college admission advisors continue to enhance user satisfaction and drive higher user retention. Within the segment, AI-driven subscriptions also maintained strong momentum. The advertising efficiency in Youdao's online marketing services also continued to improve. It recently launched the second-generation AI ad placement optimizer, further enhancing the user experience and advertising efficiency with more streamlined and automated features. While capturing emerging opportunities in areas such as AI application and short-form dramas, Youdao also made steady progress in client acquisition and retention. The smart devices segment sustained its focus on product innovation, with the Youdao Dictionary Pen maintaining a strong market position.

Bill Pang: The learning services segment continued its healthy development, driven by the strong performance of Youdao. Popular features including AI-powered English essay grading, AI quiz recommendations, and AI-based college admission advisors continue to enhance user satisfaction and drive higher user retention. Within the segment, AI-driven subscriptions also maintained strong momentum. The advertising efficiency in Youdao's online marketing services also continued to improve. It recently launched the second-generation AI ad placement optimizer, further enhancing the user experience and advertising efficiency with more streamlined and automated features. While capturing emerging opportunities in areas such as AI application and short-form dramas, Youdao also made steady progress in client acquisition and retention. The smart devices segment sustained its focus on product innovation, with the Youdao Dictionary Pen maintaining a strong market position.

Speaker #3: AI-driven subscriptions also maintained strong momentum. The advertising efficiency in Yoda's online marketing services continued to improve as well. It recently launched the second-generation AI ad placement optimizer, further enhancing the user experience and advertising efficiency with more streamlined and automated features.

Speaker #3: While capturing emerging opportunities in areas such as AI applications and short-form dramas, Yuda also made steady progress in client acquisition and retention. The smart devices segment sustained its focus on product innovation.

Speaker #3: With Yuda dictionary pen maintaining a strong market position, in June we launched the Yuda Dictionary Pen X8, featuring an expanded library of 80 million words and photo-based tutoring across a broad range of subjects.

Bill Pong: In June, we launched the Youdao Dictionary Pen X8, featuring an expanded library of 80 million words and photo-based tutoring across a broad range of subjects. During the 618 shopping festival, Youdao Dictionary Pen ranked number 1 in sales on JD.com and Tmall within this category for the seventh consecutive year. Looking ahead, Youdao will continue to execute its AI-native strategy across learning and advertising scenarios. For NetEase Cloud Music, we further developed its music-centric ecosystem in H1 2026, prioritizing exceptional user experiences, distinctive content, and a vibrant music community to support healthy and steady growth. Enhancement to user experience and strong brand perception continued to drive higher user engagement and expanded the daily active user base. Our DAU versus MAU ratio remained above 30% in H1 2026, increasing both year-over-year and sequentially.

Bill Pang: In June, we launched the Youdao Dictionary Pen X8, featuring an expanded library of 80 million words and photo-based tutoring across a broad range of subjects. During the 618 shopping festival, Youdao Dictionary Pen ranked number 1 in sales on JD.com and Tmall within this category for the seventh consecutive year. Looking ahead, Youdao will continue to execute its AI-native strategy across learning and advertising scenarios. For NetEase Cloud Music, we further developed its music-centric ecosystem in H1 2026, prioritizing exceptional user experiences, distinctive content, and a vibrant music community to support healthy and steady growth. Enhancement to user experience and strong brand perception continued to drive higher user engagement and expanded the daily active user base. Our DAU versus MAU ratio remained above 30% in H1 2026, increasing both year-over-year and sequentially.

Speaker #3: During the 6/18 shopping festival, Yuda dictionary pen ranked number one in sales on JD.com and Tmall within this category for the seventh consecutive year.

Speaker #3: Looking ahead, Yuda will continue to execute its AI-native strategy across learning and advertising scenarios. For NetEase Cloud Music, we further developed its music-centric ecosystem in the first half of 2026.

Speaker #3: Prioritizing exceptional user experiences, distinctive content, and a vibrant music community to support healthy and steady growth. Enhancements to the user experience and strong brand perception continue to drive higher user engagement and expand the daily active user base.

Speaker #3: Our DAU-to-MAU ratio remained above 30% in the first half of 2026, increasing both year over year and sequentially. The average daily mobile music listening time also rose steadily, with penetration rates of community content consumption and interactions improving notably.

Bill Pong: The average daily mobile music listening time also rose steadily, with penetration rates of community content consumption and interactions improving notably. In particular, retention and renewal rates across our expanded membership base increased both year-over-year and sequentially, reflecting stronger user loyalty and deeper connection to the platform. We also enrich our comprehensive and distinctive content library by expanding copyrighted music and promoting original music. Earlier this year, we renewed partnerships with major labels such as Universal Music Group, as well as added new content from Korean and Chinese labels, OSTs, and variety show music while enhancing our signature genres. At the same time, we continue to promote original Chinese music with our recent in-house releases, such as December 31st, gaining widespread acclaim.

Bill Pang: The average daily mobile music listening time also rose steadily, with penetration rates of community content consumption and interactions improving notably. In particular, retention and renewal rates across our expanded membership base increased both year-over-year and sequentially, reflecting stronger user loyalty and deeper connection to the platform. We also enrich our comprehensive and distinctive content library by expanding copyrighted music and promoting original music. Earlier this year, we renewed partnerships with major labels such as Universal Music Group, as well as added new content from Korean and Chinese labels, OSTs, and variety show music while enhancing our signature genres. At the same time, we continue to promote original Chinese music with our recent in-house releases, such as December 31st, gaining widespread acclaim.

Speaker #3: In particular, retention and renewal rates across our expanded membership base increased both year over year and sequentially, reflecting stronger user loyalty and a deeper connection to the platform.

Speaker #3: We also enriched our comprehensive and distinctive content library by expanding copyrighted music and promoting original music. Earlier this year, we renewed partnerships with major labels, such as Universal Music Group, and also added new content and Chinese labels, OSTs, and a variety of show music, while enhancing our signature genres.

Speaker #3: At the same time, we continue to promote original Chinese music with our recent in-house releases, such as "December 31st," gaining widespread acclaim. From a product perspective, we remain focused on user needs, advancing innovation across music discovery and consumption experiences while organizing our community by making music exploration more intuitive and engaging on the platform.

Bill Pong: From a product perspective, we remain focused on user needs and advancing innovation across music discovery and consumption experiences while economizing our community by making music exploration more intuitive and engaging on the platform. We also launched innovative functions such as AI-inspired playlists to address users' diverse music discovery preferences. Subscription-based membership grew as well, improving our music-oriented monetization. We further refined membership benefits built around content, features, personalization privileges, and artist-related offerings, all of which enhance the performance overall value proposition and support ongoing membership growth. Turning to Yanxuan once again secured leading positions on e-commerce platforms across its key categories in Q2. New products in pet food, home scents, and home goods categories performed well, generating healthy growth.

Bill Pang: From a product perspective, we remain focused on user needs and advancing innovation across music discovery and consumption experiences while economizing our community by making music exploration more intuitive and engaging on the platform. We also launched innovative functions such as AI-inspired playlists to address users' diverse music discovery preferences. Subscription-based membership grew as well, improving our music-oriented monetization. We further refined membership benefits built around content, features, personalization privileges, and artist-related offerings, all of which enhance the performance overall value proposition and support ongoing membership growth. Turning to Yanxuan once again secured leading positions on e-commerce platforms across its key categories in Q2. New products in pet food, home scents, and home goods categories performed well, generating healthy growth.

Speaker #3: We also launched innovative functions, such as AI-inspired playlists, to address users' diverse music discovery preferences. Subscription-based membership grew as well, improving our music-oriented monetization.

Speaker #3: We further refined membership benefits built around content, features, personalization privileges, and artist-related offerings, all of which enhance the platform's overall value proposition and support ongoing membership growth.

Speaker #3: Turning to Yanxuan, Yanxuan once again secured leading positions on e-commerce platforms across its key categories in the second quarter. New products in pet food, home scents, and home goods categories performed well.

Speaker #3: Generating healthy growth. Notably, the freshly steamed pet food series, which we launched last year with our differentiated steaming technology and fresh meat recipes, continued to deliver solid sales while earning recognition from leading industry organizations.

Bill Pong: Notably, the freshly steamed pet food series, which we launched last year with our differentiated steaming technology and fresh meat recipes, continued to deliver solid sales while earning recognition from leading industry organizations. In closing, across NetEase family of businesses, we remain committed to innovation and staying at the forefront of technology. By integrating leading technologies into every stage of product development and operation, we create compelling user experiences that help shape industry trends. This approach continues to support sustainable growth across our business. In our games portfolio, in particular, it enhances the appeal of both established titles and new releases, extending our success in China to broader global throughout the year. We will continue to foster an environment that empowers our developers to push creative boundaries.

Bill Pang: Notably, the freshly steamed pet food series, which we launched last year with our differentiated steaming technology and fresh meat recipes, continued to deliver solid sales while earning recognition from leading industry organizations. In closing, across NetEase family of businesses, we remain committed to innovation and staying at the forefront of technology. By integrating leading technologies into every stage of product development and operation, we create compelling user experiences that help shape industry trends. This approach continues to support sustainable growth across our business. In our games portfolio, in particular, it enhances the appeal of both established titles and new releases, extending our success in China to broader global throughout the year. We will continue to foster an environment that empowers our developers to push creative boundaries.

Speaker #3: In closing, across the NetEase family of businesses, we remain committed to innovation and staying at the forefront of technology. By integrating leading technologies into every stage of product development and operations, we create compelling user experiences that help shape industry trends.

Speaker #3: This approach continues to support sustainable growth across our business. In our games portfolio in particular, it enhances the appeal of both established titles and new releases.

Speaker #3: Extending our success in China to a broader global scale throughout the year, we will continue to foster an environment that empowers our developers to push creative boundaries.

Speaker #3: As we advance our products with cutting-edge technology, we believe we are well positioned to create even more engaging experiences and enduring value for players, communities, and shareholders alike.

Bill Pong: As we advance our products with cutting-edge technology, we believe we are well-positioned to create even more engaging experiences and enduring value for players, communities, and shareholders alike. That concludes William's comments, and I will turn the call over to Aileen for more detailed discussion of our financial results. Thank you.

Bill Pang: As we advance our products with cutting-edge technology, we believe we are well-positioned to create even more engaging experiences and enduring value for players, communities, and shareholders alike. That concludes William's comments, and I will turn the call over to Aileen for more detailed discussion of our financial results. Thank you.

Speaker #3: That concludes William's comments, and I will turn the call over to Eileen for a more detailed discussion of our financial results. Thank you.

Speaker #1: Thank you, Bill. I will now provide a brief review of our 2026 InGen financial results, with a focus on the second quarter. Given the limited time on today's call, I will present some abbreviated financial highlights.

Aileen Mo: Thank you, Bill. I will now provide a brief review of our 2026 interim financial results with a focus on the Q2. Given the limited time on today's call, I will present some abbreviated financial highlights. We encourage you to read through our press release issued earlier today for further details. As a reminder, all amounts are in RMB unless otherwise stated. Our total net revenue for the H1 of 2026 were RMB 60.7 billion, or USD8.9 billion, representing a 7% increase year-over-year. For the Q2, total revenue were RMB 30.1 billion or USD4.4 billion. During the H1, total net revenue from our games and the related VAS were RMB 15.7 billion, up 8% year-over-year. In the Q2, net revenue grew 10% to reach RMB 25 billion. Specifically, net revenue from our online games were RMB 49.5 billion for the H1, up 9% year-over-year.

Speaker #1: We encourage you to read through our press release issued earlier today for further details. As a reminder, all amounts are in RMB unless otherwise stated.

Speaker #1: Our total net revenue for the first half of 2026 was RMB 60.7 billion, or $8.9 billion, representing a 7% increase year over year.

Speaker #1: For the second quarter, total revenue was RMB 30.1 billion, or $4.4 billion. During the first half, total net revenue from our games and related VAS was RMB 15.7 billion, up 8% year over year in the second quarter.

Speaker #1: Net revenue grew 10% to reach RMB 25 billion. Specifically, net revenue from our online games was RMB 49.5 billion for the first half, up 9% year over year.

Speaker #1: In the second quarter, online games net revenue was RMB 24.5 billion, increasing 2% quarter over quarter and 10% year over year. The quarter-over-quarter decrease was mainly due to a slight decline in net revenue from certain sales diversion games and licensed games.

Aileen Mo: In the Q2, online games net revenue were RMB 24.5 billion, decreasing 2% quarter-over-quarter and increasing 10% year-over-year. The quarter-over-quarter decrease were mainly due to a slight decline in net revenue from certain self-development games and licensed games. The year-over-year increase was attributable to higher net revenue from self-development games such as Fantasy Westward Journey franchise and Where Winds Meet. Youdao's net revenue increased 4% to RMB 2.8 billion for the H1 of 2026. In the Q2, net revenue were RMB 1.5 billion, up 9% quarter-over-quarter and 3% year-over-year. The quarter-over-quarter and the year-over-year increases were mainly attributable to higher net revenue from its lending services segment. NetEase Cloud Music's net revenue increased 3% year-over-year to RMB 4.0 billion for the H1 of 2026. In the Q2, net revenues were RMB 2 billion, remaining broadly stable quarter-over-quarter and year-over-year.

Speaker #1: The year-over-year increase was attributable to higher net revenue from self-developed games such as 'Identity V,' 'Virtual Journey' franchise, and 'Harry Potter: Magic Awakened.'

Speaker #1: Youdao's net revenue increased 4% to RMB 2.8 billion for the first half of 2026. In the second quarter, net revenue was RMB 1.5 billion, up 9% quarter over quarter and 3% year over year.

Speaker #1: The quarter over quarter and the year over year increases were mainly attributable to higher net revenue from its lending services segment. NetEase Cloud Music's net revenue increased 3% year over year to RMB 4.0 billion for the first half of 2026.

Speaker #1: In the second quarter, net revenues were RMB 2.0 billion, remaining broadly stable quarter over quarter and year over year. Net revenues from the innovative business and others totaled RMB 3.2 billion for the first half of 2026.

Aileen Mo: Net revenues from the innovative business and others totaled RMB 3.2 billion for the H1 of 2026. In the Q2, net revenue were RMB 1.6 billion, up 6% quarter-over-quarter and down 4% year-over-year. The quarter-over-quarter increase was mainly attributable to higher net revenue from the e-commerce business and several other business within this segment. The year-over-year decrease was mainly due to modest decline in net revenue from the e-commerce business. For the H1, our gross profit margin was 69.9%. In the Q2, our gross profit margin increased year-over-year to 70.5% from 64.7% in the prior year period. Looking at our Q2 margin in more detail. Gross profit margin was 76.1% from our games and the related VAS, compared with 70.2% in the same period of last year. The improvement was primarily driven by lower revenue sharing costs related to platforms.

Speaker #1: In the second quarter, net revenue was RMB 1.6 billion, up 6% quarter over quarter and down 4% year over year. The quarter-over-quarter increase was mainly attributable to higher net revenue from the e-commerce business and several other businesses within this segment.

Speaker #1: The year-over-year decrease was mainly due to a modest decline in net revenue from the e-commerce business. For the first half, our gross profit margin was 69.9%.

Speaker #1: In the second quarter, our gross profit margin increased year over year to 70.5% from 64.7% in the prior year period. Looking at our second quarter margins in more detail, gross profit margin was 76.1% from our games and related VAS, compared with 70.2% in the same period last year.

Speaker #1: The improvement was primarily driven by lower revenue sharing costs related to platforms. Our gross profit margin for Youdao was 48.9%, compared with 43.0% in the same period of last year.

Aileen Mo: Our gross profit margin for Youdao was 48.9%, compared with 43.0% in the same period of last year. The increase was mainly driven by improved gross profit margin from its lending services segment. Gross profit margin for NetEase Cloud Music was 37.4%, compared with the 36.1% in the same period last year. The increase was primarily driven by lower channel fee rates, along with the continued cost structure optimization. For our innovative business and others Gross profit margin was 43.4%, compared with 42.3% in the Q2 of 2025. The improvement was primarily driven by the higher contribution from higher margin business within this segment. Total operating expenses for the Q2 were RMB 9.1 billion, representing 30% of our total net revenue.

Speaker #1: The increase was mainly driven by improved gross profit margins from its lending services segment. Gross profit margin for NetEase Cloud Music was 37.4%, compared with 36.1% in the same period last year.

Speaker #1: The increase was primarily driven by lower channel fee rates, along with continued cost structure optimization. For our innovative business and others, gross profit margin was 43.4%, compared with 42.3% in the second quarter of 2025.

Speaker #1: The improvement was primarily driven by the higher contribution from higher-margin business within this segment. Total operating expenses for the second quarter were RMB 9.1 billion, representing 30% of our total net revenue.

Speaker #1: Taking a closer look at our expense composition, our selling and marketing expenses accounted for 12.2% of total net revenue in the second quarter, compared with 12.8% in the same period of last year. Remaining generally stable year over year, for the first half the ratio was 11.7%, remaining broadly in line with the same period of last year.

Aileen Mo: Taking a closer look at our expense composition, our selling and marketing expenses accounted for 12.2% of total net revenue in Q2, compared with 12.8% in the same period of last year, remaining generally stable year over year. For H1, the ratio was 11.7%, remaining broadly in line with the same period last year. Our G&A expenses accounted for 2.7% of total net revenues in Q2, compared with 3.8% in the same period of last year. For H1, the ratio was 2.4% compared with 3.5% in the same period of last year. Our R&D expenses remained stable at 15.4% of total net revenues in Q2, compared with 15.6% in the same period of last year, reflecting our consistent investment in innovation and content development.

Speaker #1: Our GMA expenses accounted for 2.7% of total net revenues in the second quarter. Compared with the 3.8% in the same period of last year, for the first half, the ratio was 2.4% compared with the 3.5% in the same period of last year.

Speaker #1: Our R&D expenses remained stable at 15.4% of total net revenues in the second quarter, compared with 15.6% in the same period of last year, reflecting our consistent investment in innovation and content development.

Speaker #1: For the first half, the ratio was 15.0%, remaining broadly in line with the same period of last year. The effective tax rate was 21.7% for the first half and 25.5% for the second quarter.

Aileen Mo: For H1, the ratio was 15.0%, remaining broadly in line with the same period of last year. The effective tax rate was 21.7% for H1 and 25.5% for Q2. As a reminder, the effective tax rate is presented on an accrual basis, and the tax credits vary across each of our entities at different time periods, depending on applicable policies and our operations. Our non-GAAP net income attributable to shareholders for Q2 totaled RMB 7.7 billion or USD 1.1 billion, with the year-over-year decline primarily attributable to investment losses. Non-GAAP basic earnings per ADS for the quarter was USD 1.78 or USD 0.36 per share. For H1, non-GAAP net income attributable to shareholders were down 8% year over year to RMB 19 billion or USD 2.8 billion, which is USD 4.38 per ADS or USD 0.88 per share. Additionally, our cash position remains strong.

Speaker #1: As a reminder, the effective tax rate is presented on an accrual basis, and the tax credits vary across each of our entities at different time periods.

Speaker #1: Depending on applicable policies and our operations, our net income attributable to shareholders for the second quarter totaled RMB 7.7 billion, or $1.1 billion.

Speaker #1: The year-over-year decline was primarily attributable to investment losses. Non-GAAP basic earnings per ADS for the quarter was $1.78, or $0.36 per share.

Speaker #1: For the first half, non-GAAP net income attributable to shareholders was down 8% year over year to RMB 19 billion, or $2.8 billion. That is $4.38 per ADS or $0.88 per share.

Speaker #1: Additionally, our cash position remains strong as of June 30, 2026. Our total net cash position was RMB 157.5 billion, compared with RMB 163.5 billion at the end of 2025.

Aileen Mo: As of 30 June 2026, our total net cash position was RMB 157.5 billion, compared with RMB 153.5 billion at the end of 2025. In accordance with our dividend policy, we are pleased to report that our board of director has approved a dividend of USD 9.60 per share or USD 0.48 per ADS for Q2. Lastly, under our current USD 5 billion share repurchase program, we have repurchased approximately 24.8 million ADS as of 30 June 2026, for a total cost of approximately USD 2.3 billion. Thank you for your attention. We would now like to open the call to your questions.

Speaker #1: In accordance with our dividend policy, we are pleased to report that our board of directors has approved a dividend of $0.096 per share, or $0.48 per ADS, for the second quarter.

Speaker #1: Lastly, under our current USD 5 billion share repurchase program, we had repurchased approximately 24.8 million ADS as of June 30, 2026, for a total cost of approximately $2.3 billion.

Speaker #1: Thank you for your attention. We would now like to open the call to your questions.

Speaker #2: Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced.

Operator 2: Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are on a speakerphone, please pick up the handset to ask your question. The first question comes from Alicia Yap with Citigroup. Please go ahead. Ms. Yap, please go ahead with your question. Your line is open. Is your phone muted accidentally?

Operator: Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are on a speakerphone, please pick up the handset to ask your question. The first question comes from Alicia Yap with Citigroup. Please go ahead. Ms. Yap, please go ahead with your question. Your line is open. Is your phone muted accidentally?

Speaker #2: If you wish to cancel your request, please press star, then two. If you are on a speakerphone, please pick up the handset to ask your question.

Speaker #2: The first question comes from Alicia Yap with Citigroup. Please go ahead. Ms. Yap, please go ahead with your question. Your line is open. Is your phone muted accidentally?

Aileen Mo: Wait.

Alicia Yap: Wait.

Aileen Mo: Well,

Operator: Well,

Speaker #2: Okay. Well.

Aileen Mo: Yeah.

Alicia Yap: Yeah.

Speaker #1: Yeah, 不好意思. Yeah. Hello, can you hear me now? Yeah. 管理层晚上好，谢谢接受我的提问。我想问一下这个游戏《遗忘之海》，请管理层分享一下《遗忘之海》目前的最新表现，以及对未来一个季度游戏流水表现的预期。目前有哪些方面做得比较好？未来计划进行哪些调整？以及有什么进一步改善游戏表现的举措？我自己翻译一下。 So, can management share the latest performance of Sea of Remnants, and also the expected grossing for the next quarter?

Operator 2: Thank you.

Operator: Thank you.

Alicia Yap: Yeah. Hello, can you hear me now? Yeah. Can management share the latest performance of Sea of Remnants and also the expected closing for the next quarter? What aspects are currently doing well, and what adjustments are planned in the future to further improve the game's performance? Thank you.

Alicia Yap: Yeah. Hello, can you hear me now?

Alicia Yap: Yeah. Can management share the latest performance of Sea of Remnants and also the expected closing for the next quarter? What aspects are currently doing well, and what adjustments are planned in the future to further improve the game's performance? Thank you.

Speaker #1: What aspects are currently doing well? And then, what adjustments are planned in the future to further improve the game's performance? Thank you.

Speaker #2: 遗忘之海上线以后收到了很多玩家的反馈，其中有不少是批评的。我们回顾了玩家用户提出的意见，我们在强烈产品的就强烈的探索性质的视觉风格，以及肉鸽大世界的较为创新的玩法设计的时候，没有能够充分降低玩家在初期体验中的一些理解成本。影响了玩家的初期体验和那么目前针对这个问题，我们团队已经储备了大量优质的内容。为这个产品的长期运营和持续拓展提供了立足点。在经历了上线磨合以后，高频次的产品的内容迭代和体验优化，我们已经看到用户逐渐认可目前产品的核心玩法和内容品质。已经回归到对游戏内容和运营的探讨。目前整个用户群体的口碑和满意度都在持续改善。那在未来，我们会继续持续的服务好核心的用户，对用户提出的体验问题会进行持续不停的优化。另外也会进一步的梳理过去游戏前期的一些内容，让创新的玩法和内容能够被用户接受。我们对这个产品的长期运营还是非常有信心的。谢谢。

Hu Zhipeng: 《望遗海》上线以后呢，收到了很多玩家的反馈，其中有不少是批评的。我们回顾了玩家用户提出的意见，我们在这个产品就有强烈的探索性质的视觉风格，以及肉鸽大世界的较为创新的玩法设计的时候，没有能够充分降低玩家在初期体验中的一些理解成本，影响了玩家的初期体验。那么目前针对这个问题，我们团队已经储备了大量优质的内容，为这个产品的长期运营和持续拓展提供了立足点。在经历了上线磨合以后，高频次的产品的内容迭代和体验优化，我们已经看到用户逐渐认可目前产品的核心玩法和内容品质，已经回归到对游戏内容和运营的探讨。目前整个用户群体的口碑和满意度都在持续改善。那在未来，我们会继续持续地服务好核心的用户，对用户提出的体验问题会进行持续不停地优化。另外也会进一步地梳理过去游戏前期的一些内容，让创新的玩法和内容能够被用户接受。我们对这个产品的长期运营还是非常有信心的。谢谢。

Speaker #3: Okay. I will do the translation. So, when Sea of Remnants truly stabilized in the China market, we did receive a lot of user feedback, among which a certain amount were critics.

Bill Pong: OK, I will do the translation. When Sea of Remnants launched in China market, we did receive a lot of user feedback and among which are a certain amount are critics. Review all the feedback we received, we realized that while we are trying to explore a very bold video style and the roguelike gameplay which is the kind of novel open-world experience, we did not sufficiently lower the learning curve for players in the early stages, which to some extent affected the initial player experience. That's feedback we have heard and been taken. In the meantime, our team has prepared a substantial amount of large, high quality amount of content, which provide the foundation of the long-term operation and sustainable player community operation. After this initial feedback rounds, along with the high cadence of content update and experience optimization, we believe we have seen growing recognition from the players group of the core gameplay and content quality, which with discussions shift back to the game's content and ongoing operations, the overall sentiment and satisfaction is continued to improve. Looking ahead, we'll continue to serve our core players of this game well and keep optimizing the experience problems we heard from players. In the meantime, we will streamline the early stage game content, make sure that innovative gameplay could be better and wider accepted and experienced by the players. We are confident in the long-term potential of this game. Thank you for your question.

Bill Pang: OK, I will do the translation. When Sea of Remnants launched in China market, we did receive a lot of user feedback and among which are a certain amount are critics. Review all the feedback we received, we realized that while we are trying to explore a very bold video style and the roguelike gameplay which is the kind of novel open-world experience, we did not sufficiently lower the learning curve for players in the early stages, which to some extent affected the initial player experience. That's feedback we have heard and been taken. In the meantime, our team has prepared a substantial amount of large, high quality amount of content, which provide the foundation of the long-term operation and sustainable player community operation.

Speaker #3: Review what we all the feedback we receive. We realize that while we're trying to explore a very bold visual style and the roguelike gameplay, which is the kind of novel open world experience, we did not sufficiently lower the learning curve for players in the early stages.

Speaker #3: Which to some extent affected the initial player experience. So that's feedback we have heard and been taken. So in the meantime, our team has prepared a substantial amount of large high quality amount of content and which provide the foundation of the long term operation and sustainable player community operation.

Bill Pang: After this initial feedback rounds, along with the high cadence of content update and experience optimization, we believe we have seen growing recognition from the players group of the core gameplay and content quality, which with discussions shift back to the game's content and ongoing operations, the overall sentiment and satisfaction is continued to improve. Looking ahead, we'll continue to serve our core players of this game well and keep optimizing the experience problems we heard from players. In the meantime, we will streamline the early stage game content, make sure that innovative gameplay could be better and wider accepted and experienced by the players. We are confident in the long-term potential of this game. Thank you for your question.

Speaker #3: After this initial feedback round, along with the high cadence of content updates and experience optimization, we believe we have seen growing recognition from the player group of the game's core gameplay and content quality.

Speaker #3: With discussions and feedback regarding the game's content and ongoing operations, overall sentiment and satisfaction continue to improve. Looking ahead, we'll continue to serve our core players of this game well and keep optimizing the experience by addressing the problems we've heard from players.

Speaker #3: In the meantime, we will streamline the early-stage game contents to ensure the innovative gameplay can be better and more widely accepted and experienced by players.

Speaker #3: We are confident in the long-term potential of this game. Thank you for your question.

Speaker #2: Thank you. The next question comes from Xuejing Zhang with CICC. Please go ahead.

Operator 2: Thank you. The next question comes from Xueqing Zhang with CICC. Please go ahead.

Operator: Thank you. The next question comes from Xueqing Zhang with CICC. Please go ahead.

Speaker #1: 感谢管理层接受我的提问。我想请教一下，目前《无限大》的研发进度怎么样？现在在都市开放世界赛道上有多个竞品，《无限大》具体的突围策略是什么？我自己翻译一下。Thanks, management, for taking my question. Could management update us on the development progress of Ananta? With several competing titles targeting the urban open world genre, what is Ananta’s breakout strategy?

Xueqing Zhang: 感谢管理层接受我提问，我想请教一下目前ANANTA的研发进度怎么样？然后现在在都市开放世界赛道上有多歌竞品，ANANTA具体的突围策略是什么？我翻译一下. Thanks management for taking my question. Could management update us on the development progress of ANANTA with several competing titles targeting the urban open world genre? How does the company plan to differentiate the game and stand out from the competition? Thank you.

Speaker #1: How does the company plan to differentiate the game and stand out from the competition? Thank you.

Speaker #3: 我来回答一下这个问题。那么，“无限大”项目目前的研发进展还是比较顺利的。我们正在持续打磨产品，并将在即将到来的科隆游戏展上公开游戏的最新进度，请大家期待。面对竞争，我们认为“无限大”作为开放都市类型的游戏，始终有自己独特的优势。这种优势与产品的调性、主题、玩法以及内容上的独特性密切相关，可以为大家带来不同于市面上其他开放都市游戏的新鲜感。我们始终相信，高品质的内容、独特的叙事调性、创新的玩法以及更为合理的商业化模式，是保证产品成功的关键。谢谢。 Okay. I'll help do the translation. Ananta is well on track with its development as the team is now keeping on polishing the game experience.

William Lei Ding: 我来回答一下这个问题。那么ANANTA这个项目目前是研发进展还是比较顺利的，我们正在对产品进行持续的打磨。我们也将在即将到来的Gamescom上公开游戏最新的进度，请大家期待。面对竞争，我们觉得ANANTA作为开放都市的世界，始终有自己独特的优势。这种优势跟产品的调性、主题、玩法和内容上的独特性有关，是可以给大家带来相比市面上其他开放都市游戏不一样的新鲜感。但我们始终觉得高品质的内容、独特的叙事调性以及创新的玩法和更合理的商业化模式是保证产品成功的一个关键。谢谢。

William Ding: 我来回答一下这个问题。那么ANANTA这个项目目前是研发进展还是比较顺利的，我们正在对产品进行持续的打磨。我们也将在即将到来的Gamescom上公开游戏最新的进度，请大家期待。面对竞争，我们觉得ANANTA作为开放都市的世界，始终有自己独特的优势。这种优势跟产品的调性、主题、玩法和内容上的独特性有关，是可以给大家带来相比市面上其他开放都市游戏不一样的新鲜感。但我们始终觉得高品质的内容、独特的叙事调性以及创新的玩法和更合理的商业化模式是保证产品成功的一个关键。谢谢。

Bill Pong: OK, I'll help do the translation. ANANTA is well on track with its development as the team is now polishing the game experience. We'll unveil the game's latest progress at the Gamescom next week, so please stay tuned. In terms of competition, we believe ANANTA has its own distinctive strengths as an urban open world experience. The strengths come from the product's unique identity, its theme, and its gameplay design as well, which can offer players a fresh experience that stands apart from other open world urban games in the market. Ultimately, we believe that the high-quality content, the distinctive narrative identity, the innovative gameplay, and the thoughtful monetization design will be the key part behind the successful product. Thank you for your question. Operator, next question please.

Bill Pang: OK, I'll help do the translation. ANANTA is well on track with its development as the team is now polishing the game experience. We'll unveil the game's latest progress at the Gamescom next week, so please stay tuned. In terms of competition, we believe ANANTA has its own distinctive strengths as an urban open world experience. The strengths come from the product's unique identity, its theme, and its gameplay design as well, which can offer players a fresh experience that stands apart from other open world urban games in the market. Ultimately, we believe that the high-quality content, the distinctive narrative identity, the innovative gameplay, and the thoughtful monetization design will be the key part behind the successful product. Thank you for your question. Operator, next question please.

Speaker #3: We'll ll unveil the game's latest progress at the GamesCon next week. So please stay tuned. In terms of competition, we believe Ananta has its own distinctive strength as an urban open world experience.

Speaker #3: The strengths come from the product's unique identity, its theme, and its gameplay design as well, which can offer players a fresh experience that stands apart from other open-world urban games.

Speaker #3: In the market. Ultimately, we believe that the high quality content the distinctive narrative identity the innovative gameplay and the thoughtful monetization design will be the key to build the successful to be a key part of the behind the successful product.

Speaker #3: Thank you for your question. Operator, next question, please.

Speaker #2: Your next question comes from Lincoln Kong with Goldman Sachs. Please go ahead.

Operator 2: Your next question comes from Lincoln Kong with Goldman Sachs. Please go ahead.

Operator: Your next question comes from Lincoln Kong with Goldman Sachs. Please go ahead.

Speaker #4: Hey. 谢谢管理层接受我的提问。那也恭喜咱们二季度非常稳健的一个业绩。那我是想问一下就是说其实过去一两年我们也看到这公司主动的开始减少一些这个新游戏的一个发布的数量。把这个资源进一步聚焦到这个重点产品上。那当然就像燕云、漫威其实也取得了非常强的表现。那整体的这个公司咱们这个游戏的业务的这个基数其实也是逐渐的逐渐扩大。那往未来去看就是在我们的这个新品储备相对可能比以前要精简一些，然后现有的这个游戏业务的这个基数更高的一个状况下，应该怎么去想公司进一步去推动这个业务的一个增长。就未来的这个主要的这个增长的这个驱动力和经营策略可不可以再请管理层帮我们分享一下。 Thank you management for taking my question. So congrats on the very solid second quarter. So over the past one or two years, actually the company proactively reduced the number of new launches to focus the resources on the key titles.

Lincoln Kong: 谢谢管理层接受我的提问，那也恭喜咱们二季度非常稳健的一个业绩。那我是想问一下，其实过去一两年，我们也看到公司主动开始减少一些新游戏的一个发布的数量，把这个资源进一步聚焦到重点产品上。那当然就像烟云、漫威，其实也取得了非常强的表现。那整体的这个公司，咱们这个游戏的业务的这个基数其实也是逐渐在扩大。那往未来去看，就是在我们的这个新品储备相对可能比以前要精简一些，然后现有的这个游戏业务的这个基数更高的一个状况下，应该怎么去想公司进一步去推动这个业务的一个增长，就未来的这个主要的增长的这个驱动力和经营策略，可不可以再请管理层帮我们分享一下？Thank you management for taking my question.

Lincoln Kong: So congrats on the very solid Q2. Over the past one or two years, company proactively reduced the number of new game launches to focus the resources on the key titles. Meanwhile, a new release like Maru Me, Marvel Rivals, delivered very strong performance. Looking ahead with a relatively lean pipeline of new games and the higher baseline for our existing portfolio, how does company plan to drive further business growth? What will be the primary growth driver and operating strategy moving forward? Thank you.

Speaker #4: And meanwhile, new releases were released, and more arrivals delivered very strong performance. So looking ahead, with a relatively lean pipeline of new games and a higher baseline for our existing portfolio, how does the company plan to drive further business growth?

Speaker #4: So, what would be the primary growth driver and operating strategy moving forward? Thank you.

Speaker #3: 第一个我们对精品游戏内容的投入还是会持续不断的加强。这个方向一定要把握清楚，内容的质量一定要高。第二个我们会充分利用AI这个能力的放大器，加速产品开发的进度和用户在游戏世界中的体验。我们很有信心相信在AI的工具的加持下，我们会比其他公司同行做出更多优质的内容的体验。我们很有信心。这是我们的观点。谢谢。 Okay. I will help do the translation. Well, first of all, regarding the really high quality product, we're not hesitated to keep investment in.

Hu Zhipeng: 第一个，我们对精品游戏内容的投入还是会持续不断地加强。这个方向一定要把握清楚，内容质量一定要高。第二个，我们会充分利用AI这个能力的放大器，加速产品开发的进度和用户在游戏世界中的体验。我们很有信心相信在AI的工具的加持下，我们会比其他公司同行做出更多优质的内容的体验。我们很有信心。这是我们的观点。谢谢。

Bill Pong: Well, first of all, regarding the really high-quality products, we are not hesitated to keep investment in, and we are actually going to keep investing to keep building really high quality level of premium products. Premium quality of products. Of course, when doing new product, we need to make sure that we have a clear vision, as well as making sure the quality is definitely top-notch. Secondly, as of today, with the help of AI capabilities, which we believe is an amplifier that we believe we can expedite the development speed, as well as leveraging AI capabilities to improve the user experience when user playing our game. We have confidence that with the help of AI tools, we can build more high-quality products than most of our peers in the industry, providing high-quality experience to our players.

Bill Pang: Well, first of all, regarding the really high-quality products, we are not hesitated to keep investment in, and we are actually going to keep investing to keep building really high quality level of premium products. Premium quality of products. Of course, when doing new product, we need to make sure that we have a clear vision, as well as making sure the quality is definitely top-notch. Secondly, as of today, with the help of AI capabilities, which we believe is an amplifier that we believe we can expedite the development speed, as well as leveraging AI capabilities to improve the user experience when user playing our game. We have confidence that with the help of AI tools, we can build more high-quality products than most of our peers in the industry, providing high-quality experience to our players.

Speaker #3: And we're actually going to keep investment investing to keep building really high quality elite quality level of premium products. Premium quality of products. Of course, when doing new product, we need to make sure that we have a clear vision as well as the making sure the quality is definitely top notch.

Speaker #3: And secondly, now, as of today, with the help of AI capabilities, which we believe is an amplifier, we believe we can expedite the development speed.

Speaker #3: And as well as leveraging AI capabilities to improve the user experience when users are playing our game, we have confidence that with the help of AI tools, we can build higher quality products than most of our peers in the industry, providing a high quality experience to our players.

Speaker #3: That's something we have confidence in, and that's our view. Thank you for your question. Operator, next question, please.

Bill Pong: That is something we have confidence in, and that is our view. Thank you for your question. Operator, next question please.

Bill Pang: That is something we have confidence in, and that is our view. Thank you for your question. Operator, next question please.

Speaker #2: Yes. Your next question comes from Richie Sun with HSBC. Please go ahead.

Operator 2: Yes. Your next question comes from Ritchie Sun with HSBC. Please go ahead.

Operator: Yes. Your next question comes from Ritchie Sun with HSBC. Please go ahead.

Speaker #5: 管理层问一下好。谢谢你们接受我的提问。最近看到两款新游戏开始有一些测试，就是雾海之下还有鬼影长风。我想问一下管理层如何看待这两款游戏的商业化潜力，预计什么时候可以上线。 Thank you management for taking my questions. So recently the two test two games undergoing testings beneath the mist and also Thomas Shallowview. So how does management view the monetization potential of these two games?

Ritchie Sun: 管理层晚上好，谢谢你们接受我的提问。最近看到两款新游戏开始有一些测试，就是《雾海之下》还有《诡影长风》。我想问一下管理层如何看待这两款游戏的商业化潜力，预计什么时候可以上线? Thank you management for taking my questions. Recently the two games undergoing testings, Beneath the Mist, and also The Shadow View. How does management view the monetization potential of these two games? When can these games be launched? Thank you.

Speaker #5: And when can these games be launched? Thank you.

William Lei Ding: 那我要回答一下这个问题。这两款产品目前确实都还在处于集中打磨玩家的体验的阶段。我们打磨到觉得可以满足玩家的需求就会上线。那么作为内容的生产方，我们始终是认为，刚刚提到的商业化潜力，提供优秀的游戏体验，始终是拿到好的商业化结果的一个前提条件。

William Ding: 那我要回答一下这个问题。这两款产品目前确实都还在处于集中打磨玩家的体验的阶段。我们打磨到觉得可以满足玩家的需求就会上线。那么作为内容的生产方，我们始终是认为，刚刚提到的商业化潜力，提供优秀的游戏体验，始终是拿到好的商业化结果的一个前提条件。

Speaker #3: 我来回答一下这个问题。这两款产品目前确实都还在处于集中打磨玩家的体验的阶段。像我们打磨到觉得可以满足玩家的需求，我们就会上线。那么作为内容的生产方，我们始终是认为刚刚提到的这个商业化潜力。那么提供优秀的游戏体验始终是拿到好的商业化结果的一个前提的条件。谢谢。 Okay. I will do the translation. So thank you for your question. Both of the product you mentioned are still ongoing intensive refinement. And one is one of the refinements approaches stage that we believe will satisfy the user's demand and we will release them.

Bill Pong: Okay, I will do the translation. Thank you for your question. Both of the product you mentioned are still ongoing intensive refinement. One refinement approach stage that we believe will satisfy the users' demand and we will release them. As the game developer, we believe player experience is the key of everything. We believe delivering an excellent experience is the foundation of achieving commercial success. Thank you for your question.

Bill Pang: Okay, I will do the translation. Thank you for your question. Both of the product you mentioned are still ongoing intensive refinement. One refinement approach stage that we believe will satisfy the users' demand and we will release them. As the game developer, we believe player experience is the key of everything. We believe delivering an excellent experience is the foundation of achieving commercial success. Thank you for your question.

Speaker #3: As game developers, we believe player experience is key to everything. We believe delivering an excellent experience is the foundation for achieving commercial success.

Speaker #3: Thank you for your question.

Speaker #2: And that concludes the question-and-answer session. I would now like to turn the conference back over to Brandy Piacente for any additional or closing comments.

Operator 2: That concludes the question and answer session. I would like to turn the conference back over to Brandi Piacente for any additional or closing comments. Brandi, please go ahead with your closing comments.

Operator: That concludes the question and answer session. I would like to turn the conference back over to Brandi Piacente for any additional or closing comments. Brandi, please go ahead with your closing comments.

Speaker #2: Brandy, please go ahead with your closing comments.

Speaker #1: Thank you. Sorry for that. Thank you once again for joining us today. If you have any further questions, please feel free to contact us.

Brandi Piacente: Thank you, sorry for that. Thank you once again for joining us today. If you have any further questions, please feel free to contact us. Thank you again.

Speaker #1: Thank you again.

Operator 2: This concludes the conference. You may disconnect your line. Thank you.

Operator: This concludes the conference. You may disconnect your line. Thank you.