Gamehaus Holdings Inc.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to GameHouse second quarter of fiscal year 2026 earnings conference call. Currently, all participants are in listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. I will now turn the call over to today's speaker host, Ms. Ali Wong. Ali, please proceed.

Thank you, Operator. Hello, everyone. Thank you all for joining us on today's conference call to discuss the financial results of GameHouse for the second quarter of fiscal year 2026. We released our earnings results earlier today. The press release is available on the company's website as well as from Newswire Services. On the call with me today are Mr. Brian Xie Feng, Chairman of the Board, Mr. Carl Cai Yiming, Chief Executive Officer, and Mr. Shawn Zhang, Head of Capital Markets and Investor Relations. Brian will review business operations and company highlights, followed by Shawn, who will discuss detailed financial results. They will all be available to answer your questions during the Q&A session. Before we proceed, I would like to remind you that this call may contain forward-looking statements which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in U.S. dollars. With that, I would like to introduce our chairman, Brian. Brian will deliver his remarks in Chinese, and I will follow up with corresponding English translations.

Please go ahead, Brian.

Good day, everyone, and thank you for joining GameHouse earnings conference call for the second quarter of fiscal year 2026.

This quarter marks a milestone for Gamehouse.

We have demonstrated to the market that the company is successfully navigating through its development cycle and completing the transition towards a sustainable growth model centered on efficiency and profitability. During the quarter, total revenue reached approximately $26.3 million, solidly at the upper end of our revenue forecast for the second quarter.

But what makes me even more excited is that we achieved a great leap in profitability. The net profit of this quarter is about 151%, reaching about 900,000 US dollars. At the same time, our operating profit rate rose from 0.8% last year to 3.3%. This is not an accident. It is the inevitable result of our strategic positioning on cost structure optimization, investment strategy, and product combination focus.

What's more encouraging is the significant improvement in our profitability. Net income grew approximately 151% year-over-year to about $0.9 million. Meanwhile, operating margin expanded significantly from 0.8% in the year-ago period to 3.3%. This reflects our disciplined execution in optimizing our cost structure, refining user acquisition strategies, and focusing our product portfolio.

In terms of cost, we firmly adhere to the principle of efficiency. This quarter, sales and market costs fell by about 18.4%. Among them, advertising investment reduced by about $2.1 million. In the face of the competitive end-of-the-year activity season, we were blinded by the impulse to buy. Instead, resources are precisely focused on activating and circulating high-quality players through refined operations. This strategic decision brings cleanliness. Although the overall user size has fallen with our investment adjustment, but our FDAU has achieved the same strong growth, reaching $0.566. For example, the turnover of paid users has also increased from 2.1% in the same period last year to 2.5%. This means that we are digging and creating the core commercial value of the past for every active user.

On the expense side, we remain firmly focused on efficiency. Selling and marketing expenses decreased approximately 18.4% year over year, including a roughly $2.1 million reduction in advertising spend. Facing the intensely competitive year and promotional season, we avoided aggressively pursuing user volume and instead directed resources precisely toward activating and retaining high value players through refined operations. This strategic decision delivered immediate results. Although overall user base pulled back in line with our adjusted spending, average revenue per daily active user, or RPAU, increased significantly year over year to $0.566, and our daily payer conversion rate rose from 2.1% to 2.5%. This demonstrates that we are unlocking significantly greater value from each active user.

And in terms of opening up, our breakthrough in the DTC channel is repeating our profit model. Since the beginning of the second half of last year, we have achieved long-term progress in getting rid of the dependence on a single platform and improving payment autonomy. By the end of December, the entire company's DTC input contribution has reached about 10%. The core head product GCS has also broken through 30%. This not only means that we can serve players in a more flexible way, On the revenue side, our breakthroughs in the DTC channel are reshaping our margin profile.

Since we began this initiative in the second half of last year, we have made substantial progress in reducing our reliance on a single platform and strengthening our control over payment channels. As of the end of December, DTC accounted for approximately 10% of our total revenue, while our flagship title, GCF, surpassed 30%. This not only means we can serve players with greater flexibility, but also translates directly into meaningful platform commission savings, which improve our bottom line. As major players like Google extend DTC access to additional markets,

CTC will become a powerful engine for ongoing margin improvement. Taiwan Taiwan Taiwan In the process of releasing RPG products this year, based on the challenges we encountered in the early stages, we carried out an in-depth pilot review, and these valuable experiences quickly transformed into the next-generation project's key guidelines and optimized models.

Beyond strengthening our current profitability foundation, we are also actively building a pipeline for future growth. Our pipeline is advancing in parallel across both RPG and puzzle runners, In RPG, we recently signed a new title with a project scope of approximately $10 million and an expected lifecycle of one to two years. This title will initially launch in Hong Kong, Macau, Taiwan, and other parts of Asia, reflecting our strategy to expand into high ARPU Asian markets within the RPG category. We also secured two additional sizable custom development projects and a further title currently in the optimization phase, which we expect to bring online over the coming quarters. In response to challenges we encountered in the early operations of RPG titles launched last year, we completed a thorough post-launch review, and the insights gained are being applied to our upcoming projects.

In terms of the puzzle, we have already gone through the collaboration mode of signing up in small pieces, In the puzzle category, we have successfully established a collaboration model built on rapid prototyping and agile iteration.

We currently work with four core external partners who supply three to four prototype games per month for testing. Puzzle games are primarily monetized through advertising and tend to have longer life cycles, providing a steady long duration revenue stream. Our goal is to bring four to five high quality new puzzle titles to market by the end of calendar year 2026.

At the same time, we're keenly aware that technological efficiency will be critical to gaining a competitive edge in the future gaming industry.

We continue to view AI as a foundational infrastructure to our mid- to long-term platform strategies.

In this quarter, we have fully invested in the internal AR creation platform. In the short three months, the number of calls for the internal custom team has reached nearly 30,000, which is a very short period of art and video production. We expect that by the end of the third quarter, the number of calls will exceed 60,000, although the layout and short-term power of AR have not yet been significantly reflected in financial contributions. This quarter, our Haohan internal AI creative platform was fully deployed.

In just three months, the platform processed nearly 30,000 requests, significantly reducing production cycle time for art and video assets. We expect platform usage to double and exceed 60,000 requests by the end of the quarter, ending March 31st. While these AI initiatives have limited near-term financial impact, they are already profoundly reshaping our production workflows and laying the groundwork for future scalable extension.

Finally, I would like to emphasize the firm belief in the long-term value of the management team. In return for the shareholders, Lastly, I want to reiterate that management remains confident in the company's long-term value to return value to shareholders.

we initiated a share repurchase program with a total authorization of up to $5 million. As of December 31st, we had completed the repurchase of approximately 370,000 Class A ordinary shares, supporting our share price in a complex and volatile market environment.

In summary, we remain confident in the company's medium term trajectory.

Over the past several quarters, We have completed the first phase of our operational efficiency transformation, and our improved profitability is now clearly demonstrated in the results. Going forward, we are well positioned to enter the next phase of high-quality growth, equipped with a healthier income statement, more robust cash flows, and a stronger product pipeline.

Looking forward to the next quarter, based on the current product rhythm and market environment,

Looking ahead, based on a prudent assessment of our current product launch timing and market conditions, we are setting our revenue guidance for the third quarter of fiscal year 2026, ending March 31, 2026. at a range of $24 million to $26 million. With that, I will now turn the call over to Sean, who will walk you through our financial results in more detail.

Thank you, Brian. And hello, everyone. I will now walk through... financial results in more detail for the second quarter fiscal year 2026, which ended December 31st, 2025. Please note that all figures are in U.S. dollars and all comparisons are made on a year-over-year basis unless otherwise stated. As Brian noted, total revenue for the quarter was 26.3 million, a decrease of 7.8% from 28.5 million in the year-ago period. Advertising costs declined 18.9% year-over-year, which drove the lower traffic and user acquisition that Brian discussed. That said, revenue came in near the upper end of our forecast for the second quarter, and the trajectory is in line with our long-term growth strategies. Breaking down our revenue, in-app purchase revenue was $23.9 million compared with $25.5 million a year ago, a decrease of 6.4%. Advertising revenue was $2.4 million, down from 3.0 million in the same period last year. As we highlighted before, monetization improvements we are seeing in ARPDAU and payer conversion helped partially offset the impact of lower user acquisition volumes. Turning to expenses, total operating costs and expenses were 25.4 million, down 10.1% from 28.3 million a year ago, reflecting continued progress in our cost discipline efforts. More specifically, cost of revenue decreased 10.2 million to 12.2 million, primarily driven by lower platform fees and reduced profit sharing payments to game developers. Research and development expenses increased 7.5% to 2.1 million, reflecting our ongoing collaborations with multiple developers across the development and testing phases as we build out our future game pipeline. Selling and marketing expenses decreased 18.4% to 9.7 million, the 2.1 million reduction in advertising cost was the primary driver, consistent with the efficiency-focused approach Brian described. General and administrative expenses were 1.4 million, up 65.5% from 0.9 million a year ago. This was primarily due to higher salary expenses associated with our efforts to improve corporate governance financial reporting, and investor relation capabilities, as well as strategic hiring to support business expansion. Going to profitability, operating income improved significantly to $0.9 million from $0.2 million in the year-ago period. Operating margin expanded to 3.3% from 0.8%. which we believe validates the operational adjustment we have been making. Other income net was approximately 0.1 million compared to 0.2 million in the year-ago period. Net income for the quarter was 0.9 million compared with 0.4 million a year ago. We ended the quarter with $17.4 million in cash and cash equivalents, compared with $15.2 million as of June 30, 2025. We believe this provides sufficient liquidity to meet our working capital needs for the next 12 months. On capital allocation, As a reminder, our board authorized a 5 million share repurchase program in August 2025 with a one year authorization period through August 18th, 2026. As of December 31st, we have repurchased approximately 370,000 class A ordinary shares for approximately 459,000 US dollars. We will continue to evaluate repurchase activity based on market conditions, share price, and our broader capital priorities. Lastly, as Brian mentioned, for the third quarter of fiscal year 2026, ending March 31st, 2026, we expect total revenue in the range of approximately 24 million to 26 million. To wrap up, we are pleased with the quarter's results. Cost declined more than 10% while revenue landed near the top of our forecast for the second quarter, producing meaningful margin expansion. Our balance sheet is healthy and our cash position straightened. Going forward, our priority remains clear. Discipline investment in high potential titles, continuous strengthening of our platform and population infrastructure, and a balanced approach to growth, profitability, and shareholder returns. With that, we are happy to take your questions. Operator, please proceed.

Thank you. If you would like to ask a question, please press star 1 on your telephone. If you would like to remove yourself from queue, please press star then 2. Once again, that is star then 1 if you have a question. Additionally, when asking a question, please state your question is in Chinese first and then immediately translate them into English for the convenience of everyone on the call. And today's first question comes from Tina Wong at SDICS International. Please go ahead.

好的,谢谢管理层接受我的提问。 我这边有两个问题是关于我们的这个财务展望的事情。 第一个问题是那公司的这个收入在过去几个季度都有下滑。 那想请管理层帮我们解答一下我们的这个收入增长预计是会在什么时候恢复? 那以及它背后的催化性是什么? I have two questions regarding financial outlook. The first one is, we noticed that the revenue has been declined for a few consecutive quarters. How should we think about future revenue trends? When do you expect revenue growth to resume growth and what is the catalyst behind? My second question is, how should we think about future OB margin trend, especially when you wrap up marketing campaign for new products? Thanks.

Thank you, Tina. I'm Shawn. I'll answer your first question. Thank you, Tina. I will answer your first question. First of all, I would like to thank Tina for continuing to pay attention to the company. In the second quarter of the fiscal year of 2026, we received a total revenue of about $26.3 million. Compared to the same period last year and the first quarter of this fiscal year, it has dropped slightly. This kind of change mainly comes from the company's comprehensive market situation, the current product structure, and the situation of our subsequent management projects. In terms of financial structure, the decline in sales directly relates to the active reduction in sales and marketing costs. In Q1 and Q2 of this fiscal year, sales and marketing costs decreased by 13.6% and 18.4%. These adjustments have an advantage over our current old product operation strategy. There are also high-cost seasonal adjustments during the holiday period of the global market at the end of the year. In terms of the results, although the sales period is short and there is some pressure, However, our revenue structure has been significantly improved. As you can see, our Q2 revenue rate increased from 0.8% in the same period last year to 3.3%. This is related to the second question that Carl may ask you later. Our net profit exceeded twice that of last year. This shows that under our new operation strategy, the core user disk of the existing main product is still very stable, and the efficiency of the transformation has also been significantly improved. As Brian mentioned earlier, our product pipeline is coming from two categories, RPG and Puzzle. In RPG, we have a few products that will be released in the next few seasons. Many of them are very popular. As for the Puzzle category, we have released four to five new works before the end of 2026. So in the future, this inner growth line will be the most stable and most determined path for the company. This progress will be reported to you in the next few weeks' performance release. In addition, we have been talking about another focus, which is AI technology. Ah. I will give an English translation for myself. Thank you, Tina, for your question and for your continued interest in our company. In the second quarter of fiscal year 2026, we recorded total revenue of approximately 26.3 million. Well, this represents a slight decline compared to the superior last year, and the first quarter of fiscal year 2026. This shift is primarily the result of proactive structural adjustment made by the company. These decisions were based on a comprehensive evaluation of current market conditions, our existing product mix, and our upcoming pipeline. From a financial structure perspective, the decline in revenue is directly correlated to our strategic reduction in selling and marketing expenses. In Q1 and Q2, our S&M expenses decreased by 13.6% and 18.4% year over year, respectively. This adjustment serves two purposes. First, to optimize the operational strategy for our mature legacy titles. And second, to account for the seasonal surge in user acquisition costs typically seen across major global markets during the year-end holiday season. As a result, although the top line has faced short-term pressure, our profitability structure has significantly improved. You can see that our operating margin in the second quarter was sharply to 3.3% from 0.8% in the same period last year. And our net income more than doubled. This demonstrates that under our refined operational strategy, the core user base of our flagship products remains resilient and our monetization efficiency has been notably enhanced. Also, as Brian mentioned earlier, our product pipeline is moving forward on a dual track strategy focusing on RPG and puzzle genres. For RPG, we have several titles slated for release over the upcoming quarters, many of which are quite substantial in scale. In the puzzle category, we are aiming to launch four to five new titles at the end of the calendar year 2096. This organic growth engine will be the company's most stable and certain path forward, and we will continue to provide updates on our progress in future earnings reports. But on this, we remain focused on the empowerment of the content industry through AI technology. While our previous efforts were primarily directed toward improving operational efficiency and cost reduction. Our next objective is for AI to contribute directly to revenue generation. We are currently conducting some very promising experiments in the area and look forward to share those developments with you in the upcoming quarters. That will conclude my answer to your question, and I will give the second question to Carl, our CEO.

Okay, thank you for your question, Tina. You asked about the growth of the operating profit rate in this period. In fact, the improvement of the operating profit rate in this period is mainly due to the result of the company's continuous promotion of sophisticated operations and efficiency optimization for the existing product combination. On the one hand, we insist on a relatively stable operating strategy in the existing project. and pay more attention to the balance of income quality and profit quality. On the other hand, we also continue to improve the efficiency and value of users by using more detailed operating methods, including the optimization of core operations, surrounding different users, developing more targeted content and paid design, and continuing to promote individualized commercialization, improving overall transformation and life cycle value. In addition, Brian just mentioned that DTC is also one of the key catchers of our improvement of profit capacity. With the continuous promotion of DTC, we have improved the channel structure and the efficiency of users in some products. This not only helps to increase the profit margin, but also strengthens our control over user relations and long-term value. Based on these recommendations, before new products enter large-scale investment, we will maintain a stable profit margin level. The company will also continue to operate on a stable basis as a prerequisite to ensure that income and profits are maintained in a relatively healthy state. However, From the perspective of product life cycle, the future performance of profitability will not be a one-sided expansion trend. When new products enter the top-line and key promotion stages, we usually increase the investment in market investment and issuance resources to strive for better user size and longer-term income contributions. In the process, the short-term profit and loss rate may be under certain pressure. This pressure is more to the company's initiative investment based on the opportunity for growth, rather than the weakening of business profitability. The reason why we have a relatively cautious confidence in this type of investment and the company has also established a relatively strong data analysis, investment assessment, and dynamic optimization system. We will continue to track the key indicators such as customer cost, flow rate, payment conversion, LTE, and recovery cycle, and thus adjust the budget and investment results in a dynamic manner to ensure that the investment is promoted under a frame that can be recovered, verified, and risk-resistant. Okay, I will translate my answer to English. Thank you for the question. The improvement in operating margin this period is primarily driven by continued refinement of operations and efficiency again as our existing portfolio. On one hand, we have maintained a relatively disciplined operating strategy for our current titles. With a strong focus on balancing revenue quality and profitability, on the other hand, we have been improving monetization efficiency and user value through a range of more granularly operating initiatives, including optimization of LiveOps events, more targeted content and offer, designed based on user segmentation and continued enhancement of personalized monetization strategies to improve conversion and lifetime value. In addition, DTC remains an important level for improving profitability. As we continue to expand our DTC efforts, we see further room to optimize channel mix and improve user economics in selective models. This not only supports margin improvement, but also strengthens our direct relationship with users and ability to capture long-term value. Based on these initiatives, before new products enter a heavy investment cycle, we will keep the stable margin level, and we will continue to prioritize stable execution to maintain healthy revenue and profitability. That said, from a product cycle perspective, we do not expect margins to expand in a straight line. With new titles moving into launch and scaled marketing phases, we typically increase user acquisition and publishing investment in order to capture larger audience potential and build long-term revenue contribution. During that period, operating margin may come on short-term pressure. Importantly, we would view this as a deliberate investment behind future growth opportunities rather than a weakening of our profitability of the existing business. We remain disciplined but confident in managing this process because we have built a strong data-driven framework for marketing evaluation and optimization. We closely monitor key metrics such as EPI, retention, TV, and payback period, and dynamically adjust budgets accordingly. This helps ensure the growth investment remains recoverable, measurable, and within a controlled risk framework. After a reasonable payback period, profitability would typically recover and improve. Overall, our approach is to balance margin stability, disciplined investment, and long-term growth.

Thanks, that helps a lot.

Thank you.

Our next question today comes from Zhenghui Chen with Heji Capital.

Please go ahead. Thank you, Manager Chen. I have two questions. The first question is, what is the goal of D2C this year? In the entire product combination, where is the reality ceiling of D2C's penetration rate? The second question is, in the $5 million repurchase authorization, the company has currently disclosed that the amount of repurchase is only $45.9 million, less than 10% of the authorization amount. But the authorization period has already exceeded half. Is this keeping cash for product management investment? Thanks for managers. Here are my two questions. First one is, what is your D2C target for the full facial year? And what's the realistic selling for the D2C penetration across your portfolio? The second is, you've repurchased only $459,000 of the $5 million authorized buyback program. That's less than 10% of the authorization with roughly half the time expired. Are you preserving cash for pipeline investment? Thanks.

Hello, I am Shao. Let me answer your first question about DTC. First of all, thank you for your question. As I mentioned earlier, DTC is one of the most important strategic directions in terms of user efficiency and profit structure optimization. Based on the current promotion rhythm and product adaptation situation, We expect that by the end of this year, DTC will be expected to reach more than 15% overall. From the current development stage, we believe that DTC's penetration rate has not yet reached the ceiling. On the one hand, as more countries and regions gradually let go of related policy environments, the industry is gaining greater flexibility in terms of user access, payment chain and operation methods. On the other hand, with the DTC basic facilities of the company and the ability of user access, as well as the continuous improvement of payment experience operation methods and other systems, we believe that DTC has a certain potential for improvement in the current product combination. Of course, our promotion of DTC has always maintained a prudent and long-term attitude. The company has always adhered strictly to the policies of various platforms and app stores, and at the same time, highly values user experience to ensure that DTC-related access, conversion, and service processes are consistent, smooth, and sustainable. We are more concerned about gradually improving DTC's operating efficiency and user acceptance under the premise of compliance, rather than pursuing short-term and progressive improvement. From a combination point of view, different products, different regions, and different user groups are not completely consistent with DTC's adaptation rate. Therefore, the improvement of DTC's penetration rate will be a gradual structural optimization process, and not a rapid improvement of all products at the same time. In the future, we will continue to surround high-end products and high-value user groups to steadily promote the improvement of DTC's penetration rate, and under the premise of guaranteeing harmony and user experience, continue to release part of the operating profits and operating efficiency. Overall, I will translate to myself. DTC remains one of our key strategic priorities in improving user engagement, monetization efficiency, and overall profit structure. Based on our current execution pace and the product fit, we expect DTC to account for more than 15% of total revenue by the end of this fiscal year. At this stage, we believe DTC penetration is still far from reaching its ceiling. On one hand, as regulatory and policy environments continue to evolve more favorably across a number of countries and regions, the industry is gaining great flexibility in user reach, payment flows, and operating models. On the other hand, As we continue to strengthen our DTC infrastructure, our touchpoints, payment experience, operating know-how and data capability, we believe there is still meaningful room to further increase DTC penetration across our existing portfolio. That said, we are approaching DTC with a disciplined and long-term mindset. We remain firmly committed to complying with platform and app store policies while also placing strong emphasis on user experience. Our goal is to ensure that all DTC-related user journey, conversion flows, and service processes remain compliant, smooth, and sustainable. We are focused on steadily improving efficiency and user adoption over time rather than pursuing aggressive short-term expansion. At the portfolio level, DTC suitability varies by title, region, and user cohort, so we expect penetration gains to be gradual and structurally driven, rather than uniform across all products. Going forward, we will continue to prioritize those titles and user segments where DTC has the strongest fit. And we believe that under a compliant and user-friendly framework, there is still substantial opportunity to unlock further margin and operating efficiency benefits. Overall, we remain positive on the medium to long-term potential of our DTC and see it as an important level for enhancing both profitability and our direct relationship with users.

Okay, I will pass the next question to Sean. Okay, thank you, Zheng Hui. Let me answer your second question about our return. Thank you, Jinghui, and I will answer your second question about our share repurchase program. First of all, like the investors who have long-term attention and support for the company's development, the company has always been very concerned about the quality of the company's value. At the same time, to maintain the company's value and the rights of the majority of shareholders. Since August last year, when we launched our first repurchase plan, until December 31, 2025, the company has repurchased about 370,000 A-class ordinary shares. In fact, the current health condition of XINJINLU is completely capable of simultaneously supporting the development and promotion of new games This already has this shareholder return plan. Then the current return plan uses less than 10% of this amount. You just mentioned this. I think the main core reason is still the strict compliance requirements. It is now an objective policy of the current share market mobility status. At the specific execution level, we first have to strictly abide by the rules of SEC, right? Some of the relevant rules for our company's way of repurchasing in the public market. The number has very clear and strict restrictions. The core one is that the number of repurchases per day can not exceed 25% of the Japanese military trade volume in the past four weeks. At the current flow rate level, We actually need to use our recovery plan very carefully within the framework of the rules. Our operation strategy is to suppress some irrational fluctuations in our stock market, and to find a more appropriate balance between the normal trading liquidity of the second-tier market and the overall harmonious framework. You just mentioned that we are running out of time for the resale plan, but as long as the market conditions allow and meet the relevant requirements of the contract, I think the management of the company will continue to actively and steadily promote the resale plan. At the same time, the company will also work hard to improve the scalability of investors and the market, and continue to achieve good performance to drive the increase in market attention and stock liquidity. Then it will also carry out a more efficient recovery plan for us. I want to create a better market environment. Thank you for your question. Much like the other investors who have long followed and supported our development, the company is deeply focused on the fair valuation of our business and remains steadfastly committed to protecting company value and shareholder interests. Since the launch of our first repurchase program in August last year, we have repurchased approximately 370,000 Class A ordinary shares as of December 31, 2025. I would like to clarify that our current cash flow and financial health are more than sufficient to support our R&D and promotional efforts for the new games while fulfilling our shareholder return programs at the same time. The primary reason for the utilization being below 10% is not a lack of capital, but rather the objective constraints by strict compliance requirement and current market liquidity. At the execution level, we must strictly obey to SEC regulations. This rules impose very specific limits on the manner and value of open market repurchases. And one of the central constraint is under the rule 10B-18 safe harbor is that our daily repurchase volume typically cannot exceed 25% of ADTV of our buyers over the preceding four weeks. Consequently, given the current liquidity levels, we must be extremely prudent in executing the program within this regulatory framework. Our operational strategy is to find the optimal balance between mitigating irrational price volatility, preserving secondary market liquidity, and ensuring full regulatory compliance. While you noted that the program's term is halfway through, I think, I believe that management will continue to advance the reportage plan flexibly and steadily as long as market conditions and compliance are all. So, furthermore, they, Companies working to enhance investor outreach and market accessibility by consistently delivering robust operational performance, we aim to drive increased market attention and liquidity, which will in turn, I think, create a more favorable environment for the efficient execution of our repurchase program. That will be my answer to your second question. Thank you.

Thank you. That concludes our question and answer session as there are no additional questions at this time. I will now hand back to the management team for closing remarks.

Okay, thank you, operator, and thank you all for participating on today's call, and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

Thank you. That concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.