Gamehaus Holdings Inc.

Good day and welcome to the Game House Holdings first quarter of fiscal 2026 earnings conference call. All participants will be 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. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. I will now turn the call over to today's speaker host, Mr. Jack Wang. Jack, please proceed.

All right. 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 first quarter of fiscal year 2026. We released our earnings results earlier today. The press releases are now 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. Shang Zhang, Head of Capital Markets and Investor Relations. Brian will review business operations and company highlights, followed by Shang, who will discuss detailed financial results. They will all be available to answer your questions during the Q&A session. And 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 today are in US dollars. And 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.

Thank you for joining GameHouse's earnings call for the first quarter of fiscal year 2026.

In this quarter, while we continue to maintain our business operations, we are also continuing to improve our profitability. This quarter, our total revenue level has reached about $27.7 million. to the performance guidance target we set last quarter. More importantly, our net profit level is continuing to improve. The net profit of this quarter increased by about 18% and the net profit rate by about 6.7%. Compared to last quarter, which was about 5%, it has improved further. In the past few quarters, we have been focusing on product combination, This quarter, our business remained stable while we continued to make meaningful progress in enhancing our profitability.

Revenue came in at approximately $27.7 million, in line with the guidance we provided last quarter. And more importantly, net income continued to improve, growing about 18% year over year. Our net margin was approximately 6.7%, reflecting a sequential improvement from about 5% in the prior quarter. Over the past several quarters, we have taken deliberate actions across our product portfolio user acquisition strategy and cost structure to transition the company towards a more efficient, predictable, and sustainable long-term operating model.

In the first quarter of the new fiscal year, we continue to optimize the investment and marketing capital for the purchase. We pay more attention to investment returns. Specifically, we reduce the investment in advertising on user acquisition, adjust the marketing strategy for mature products, and thus reduce the market return. Our overall cost structure is more compact and efficient. These factors directly promote the increase in profitability.

In the first quarter of the new fiscal year, we continued to optimize user acquisition and marketing spend with a sharper focus on return on investment. Specifically, we reduced advertising spend in user acquisition and refined our marketing strategy for mature titles, which helped lower overall promotional costs. As a result, our operating expenses came in leaner and more efficient, directly contributing to higher margins. These improvements combined with the continued stability of our core business have strengthened the foundation for long-term profitability.

In terms of new products, we are continuing to release new products. At the end of this year, we launched a new RPG game. It is still in the early stage of operation. We will continue to optimize it according to data feedback. The launch of this product has further accumulated valuable experience for us in the release of RPG products.

On the product front, we continue to advance our development and launch pipeline in a steady and disciplined manner. Towards the end of the quarter, we released a new RPG title that is still in early stages of operation. We will continue refining the game as we gather more data and player feedback. But importantly, this launch has also expanded our experience in the RPG category and strengthened our capability for future releases.

After waiting for the future, we are fully deploying the long-term product, Paper9. In the current Paper9, we expect a new RPG game to be released before March, 2026. The development team of this project is extremely mature, and the performance of the first-hand test data is also very positive. This is also the most important project we have invested in so far to verify the most complete system. In addition, we are also in close contact with some but the commercialization is not fully open yet. We hope to use the company's GBS capability to help these teams to achieve high success rates. In the past, we have contacted many teams, focusing on products that have been discovered, verified, and clearly directed to achieve high success rates. Currently, we have many products such as Parallel and RPG. Looking ahead, we are laying the groundwork for a robust meta long-term pipeline.

Among our upcoming titles, we expect to launch a new RPG before March, 2026. The project is backed by a highly experienced development team. and early testing results have been very encouraging. It represents one of our most significant and thoroughly validated investments in recent years. In parallel, we are evaluating several teams with promising but not yet fully commercialized games, where we believe our GBS capabilities can meaningfully improve their probability of success. Over the past several months, we have focused on identifying projects with clear product market fit, verifiable traction and a high likelihood of success. We currently have multiple titles in development or testing across both puzzle and RPG genres. We have set aside sufficient marketing budgets to ensure that these products are well supported at launch and positioned for strong commercial performance.

At the same time, we also pay close attention to the opportunities brought by the DTC trend of industry policy change and major users. Recently, Google's adjustment of the DTC policy in the U.S. market as a third-party payment has greatly expanded the space. This is a major advantage of the industry. We judge that this will become a trend in the industry and will significantly improve our profit structure.

We are also closely monitoring regulatory developments and the growing industry shift towards direct-to-consumer or DTC contribution. Google's recent policy changes in the U.S. significantly expand the flexibility for third-party payments, and we view this as a major positive catalyst for the mobile gaming ecosystem. We believe DTC adoption will become an industry-wide trend and an important driver of margin improvement over time.

At the moment, we are in the range of our ability to quickly push the increase in the DTC proportion. At the end of the year, we have only about 10% of the DTC flow of our flagship products in August, and by the end of this quarter, we have reached about 16%, which is expected to exceed 30% in the next quarter. This will allow us to serve players better and save platform dust. . . . . . . . In the first half of 2026, we expect the overall DTC ratio of the company to reach and exceed 15%. This will help us further increase the profit rate. The promotion of the DTC model means that we can establish a more direct connection with players, improve user connectivity, and reduce the cost of shopping and significantly improve the profit rate. From the long-term impact of the industry, Within our own portfolio, we are accelerating DTC integration wherever possible.

On iOS, the DTC revenue contribution from one of our flagship titles increased from roughly 10% in August to about 16% at the end of this quarter. And we expect this number to exceed 30% in the next fiscal quarter. This gives us a more direct relationship with players and reduces platform fees. At the company level, DTC still accounts for a single digit percentage of the total revenue. But we expect this mix to rise steadily in the upcoming quarters as more titles transition into DTC channels and as Google opens DTC access in additional markets. By the first half of calendar 2026, we anticipate our overall DTC contribution to reach or potentially exceed 15%, which should provide an incremental lift to our profitability. The adoption of DTC strengthens direct engagement with players, enhances retention, and meaningfully improves margin structure by reducing store commissions. Over the mid-to-long term, we believe that the rise of DTC will reshape mobile publishing models by giving publishers greater control and economic upside.

In terms of regional strategy, North America and Europe are still the main sources of income for the company. But with the development of multiple RPG projects, we will invest more resources in the Asia-Pacific markets such as Japan, South Korea, Hong Kong and Taiwan, Compared to European and American users who prefer a more leisurely and fragmented play structure, Asian players are more receptive to RPGs and have a higher desire to pay. This is very compatible with the mechanism products we are about to launch. The integration of AI and GPS allows us to have the ability to duplicate cross-region, which is an important point of the company's future diversification growth.

From a regional perspective, North America and Europe remain our largest revenue markets. However, as we advance multiple RPG projects, we plan to increase our investment in high ARPU Asian markets such as Japan, Korea, Hong Kong, Macau, Taiwan, and Southeast Asia. Compared with Western markets where gameplay preferences tend to favor casual and shorter session formats, players in Asia show stronger engagement and monetization behavior in RPG genres. This aligns naturally with the new titles in our pipeline. The combination of AI and our GBS infrastructure gives us the ability to replicate and scale our publishing and operating capabilities across multiple regions, and we believe this will become a key driver of our long-term diversified growth.

In terms of technical capabilities, we see AR as a core strategy for platform-based capability construction. GammaHouse is a company that started with game development. It naturally has the soil to apply AR to content production and release. Currently, we are actively exploring the various sections of AR technology operation, game development, and operation. This quarter, we have further promoted the construction of corporate intelligence and AR military systems. In the next quarter, 我们会推出升级版的AirChat引擎, 进一步增强分析能力与跨部门协作的能力。

From a technology standpoint, we view AI as a core pillar of our meta long-term platform strategy. As a publisher with deep experience in game operations and content distribution, Gamehouse is naturally positioned to apply AI across the full lifecycle of game development and publishing. We are actively exploring ways to embed AI into every critical stage of game production and operations. This quarter, we made further progress on our enterprise knowledge engine and our AI-driven assistance system. By structuring years of accumulated insights from development, life ops, and monetization, and enabling retrieval through REG-based natural language queries, our teams can now access cross-project, cross-regional solutions with much greater efficiency. These tools are already reducing the trial and error costs shortening learning cycles and enhancing the support we provide to our development partners. In the coming quarter, we expect to roll out an upgraded version of our AI chat engine, which will deliver stronger analytical capabilities and better enable collaboration across teams.

At the same time, we are also building a smart management system for art assets. By using AR visual recognition and raw data management to improve material production, experiment and assistance efficiency, for a global發行公司 that relies on continuous creative output and cross-region A and B testing, this infrastructure will be an important component of the competition in the future. Other components such as automated customer service, The ability to divide, group, and price, individualize content, and promote, etc., is still being promoted. Although these explorers are in the early stages, the short-term financial contribution is limited, but the impact on the efficiency of internal products and the speed of delivery of products has been very profound, and will become the basis for the long-term growth of Demo House.

In parallel, we are building an intelligent art asset management system that uses computer vision and metadata tagging to improve asset production, experimentation and team collaboration efficiency. For a global publisher that relies heavily on continuous creative output and cross-region A-B testing, this type of infrastructure will be a meaningful differentiator over time. We are also advancing additional AI-enabled functions including automated customer support, segmented pricing, and personalized content delivery. While many of these initiatives are still in the early stages and will take time to translate into financial results, they are already having a tangible impact on internal efficiency and product iteration speed. We believe these capabilities will form a critical foundation for our long-term growth.

In terms of shareholder return, the company officially passed a stock return plan at the end of August. Require us to return more than $5 million in A-class ordinary stocks within a year. As of October 31st this year, we have completed the return of 200,000 A-class ordinary stocks. In the future, we will continue to adhere to the principle of stable business and continue to return shareholders, and place long-term shareholder value in an important position.

And on shareholder returns, our board of directors approved a share repurchase program at the end of August, authorizing us to repurchase up to $5 million worth of Class A ordinary shares. over a one-year period. As of October 31st, we had repurchased approximately 200,000 Class A shares. And going forward, we will continue to execute this program with discipline and remain committed to maintaining a solid operating foundation while delivering long-term value to our shareholders.

Looking forward to the next quarter, considering the overall market characteristics of our main market holiday period,

Looking ahead to the next quarter and taking into account the seasonal dynamics of our major markets during the holiday period, we're setting our revenue guidance for the second quarter of fiscal year 2026 ending December 31st, 2025 at a range of $24 million to $27 million. And 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 provide a detailed overview of our financial performance for the first quarter of fiscal year 2026, which ended September 30th, 2025. Please note that all figures are in US dollars and all comparisons are made on a year over year basis, unless otherwise stated. In the first quarter of fiscal year 2026, our revenue reached 27.7 million as we continue to scale back user acquisition spending, with our advertising cost decreased by 13.5% year-over-year. we intentionally redirected resources toward developing new game categories, advancing upcoming projects, and preparing for their launch and promotion. We viewed this as a healthy rebalancing towards sustainable long-term growth. As a result, the reduction in marketing spend led to lower traffic and new user acquisition, which in turn impacted our top line performance. Breaking down our revenue by segment, in-app purchase revenue was 25.3 million compared with 26.9 million a year ago. Advertising revenue was 2.4 million down from 3.0 million in the same period last year. Importantly, we continue to strengthen player engagement and monetization through enhanced in-game content and live ops features. This progress is reflected in the 24.4% increase in average revenue per daily active user during the quarter. Moving on to expenses, in the first quarter, total operating costs and expenses were 26.7 million, down 6.2% from 28.5 million in the same period last year. More specifically, cost of revenue declined 5.4% to 13.3 million. primarily driven by lower platform fees and reduced profit sharing payments to game developers. R&D expenses increased 18.3% to 1.2 million as we continue to strengthen our platform's AI technology and advance collaborations throughout the development and testing phases with multiple developers to build out our future game pipeline. selling and marketing expenses were 10.8 million, 13.6% lower than 12.5 million in the same period last year. Consistent with our strategy to scale back AD spending and optimize efficiency for mature titles. G&A expenses were 1.4 million compared to 0.9 million a year ago, mainly due to higher salary expenses and professional service fees associated with being a public company and related governance enhancements. Now, moving to profitability. In the first quarter, operating income was 1.0 million, down from 1.5 million a year ago. Operating margin was 3.6% versus 5.0% in the same period last year. Net income for the first quarter was 1.8 million, up 18% from 1.6 million in the same period last year. and earnings per ordinary share were 4 cents compared with 3 cents a year ago. We ended the first quarter of fiscal year 2026. with $15.3 million in cash and cash equivalents, slightly higher than $18.2 million as of June 30, 2025. We believe this is sufficient to meet our liquidity and working capital needs for the next 12 months. Before we conclude, I would like to briefly reiterate our outlook and capital allocation priorities. For the second quarter and the fiscal year 2026, ending December 31st, 2025, we expect the revenue to be in the range of 24 million to 27 million. This expectation is made in line with our discipline approach during the calendar fourth quarter. when industry-wide user acquisition costs typically rise and overall retention trends to soften. I would also like to remind everyone that our board authorized a 5 million share repurchase program in August this year. And as of October 31st, we had repurchased approximately 285,000 worth of class A ordinary shares. Looking ahead, we will remain focused on strengthening our platform capabilities to enhance competitiveness across our population ecosystem, taking a prudent and selective approach to investments in games where we see clear potential and maintaining a balanced framework across growth, profitability, and returns to shareholders. With that, we can now open our call for questions. Our CEO, Carl, and I will answer your question. Operator, please proceed.

We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Additionally, when asking a question, please state your questions in Chinese first, then immediately translate them into English for the convenience of everyone on the call. There are no additional questions. Oh, excuse me. Our first question comes from Jay Lee with CinoLink Securities. Please go ahead.

Thank you for accepting my question. First of all, congratulations to the company for achieving an excellent performance. I have two questions. The first is that we are concerned about the ARF DAU of the company's current system. Is there any change in the product structure? How much is the optimization of game operation? If we want to further increase the purchasing power in the future, is the current ARF DAU level available? The second question is about the entire capital market. In recent years, the share price of the company has fluctuated considerably, but we are concerned that the company has been promoting this year's return plan of $5 million in goods, and part of the return has been completed before the end of October. How do you see the current share price performance? And what will be the rhythm of the return plan in the next few seasons in terms of capital allocation? Thank you for taking my questions, and congratulations on your strong results. I have two questions. First, we noticed an improvement in UpDAU this quarter. How much of that increase was driven by the changes in product mix versus operational optimizations within the games? And if you decide to ramp up your user acquisition again in the future, do you believe the current UpDAU level is sustainable? My second question is regarding the capital market. The stock has shown some volatility recently, but we noticed the company has been actively executing its authorized $5 million share repurchase program with part of the buybacks already completed by the end of October. How does the management view the current share price performance? And going forward, what should we expect regarding the pace of the repurchase of your capital allocation priorities over the next few quarters? Thank you.

OK, thank you for your question. Let me answer the first question. The improvement of the AppDAU this quarter is mainly due to the continuous operation and commercialization of our online games. This includes the addition of users' favorite operations, exclusive high-value users' maintenance, and the efficient improvement of the commercialization effect based on user-divided package delivery and other means. At the same time, the launch of our new RPG products has led to the rise of RPG product revenue that has a higher ability to transform, which has further promoted the growth of FDAU. Overall, the improvement is mostly due to the optimization of game operation, and the change in product structure has also contributed to a certain amount of increase. Now I will translate my answer to English. Thank you for your question. The increase in ARPDAU this quarter is primarily driven by our ongoing optimization of LiveOps and monetization efforts, which include adding user-favored operational events, exclusive maintenance for high-value users, and targeted package pushes based on user segmentation. Meanwhile, the launch of new RPG Game Jira has increased the revenue share of RPG products with higher monetization capabilities. further boosting OpDAU. Overall, the improvement is largely attributable to game optimization, while product structure change has also contributed a certain portion. Regarding sustainability, with our continued focus on LiveOps optimization and the upcoming release of new RPG games, we believe that the current OpDAU level can be maintained at a high level. even if we ramp up user acquisition efforts in the future. This is supported by our long-term product and operational strategies which balance user growth with monetization efficiency. Thank you.

OK. In fact, the management of the company believes that the company's stock price level does not reflect the basic aspect of the company's business and the global mobile industry. So at the end of August this year, we first launched the first stock repurchase plan. The board of directors also authorized us to repurchase our company's stock at a rate of less than $50,000 per year. As I mentioned earlier, by the end of October this year, and completed a repurchase of 200,000 L.A. stocks. Our company wants to show our position of underestimating the current company value through the launch and firm execution of this return plan. However, you may also know that SEC actually has some requirements for the security rule of the company's stock return. For example, it requires that the company's daily return amount cannot exceed the average daily transaction amount of 25% in the first four weeks. What about the current flow rate? If you are interested in calculating, you can see that by the end of October, we should be able to maintain a relatively high recovery rate. After that, on the one hand, the company's plan is to continue to implement our current return plan based on the need to consider the operation of funds. On the other hand, we will also work hard to continue to improve the liquidity level of the company's stock in many ways. I will translate for myself. So thank you for your second question. And as we mentioned on the previous earning call, Our management believes that the company's share price does not adequately reflect either our business fundamentals or the long-term growth potential of the global mobile gaming industry. And this is why at the end of August this year, we launched our first share repurchase program. And the board has authorized us to repurchase up to $5 million of our Class A ordinary shares over a one-year period. As of the end of October, we have already repurchased approximately 200,000 Class A shares. By initiating and consistently executing this program, we aim to demonstrate our view that the company is undervalued at current levels. As you probably know, the SEC's rules 10b18, safe harbor, imposes certain constraints on issuers during buybacks. For example, our daily repurchase cannot exceed 25% of the stock's average daily trading volume, which is also called ADTV, over the previous four weeks. So given the current liquidity profile of our stock, you probably noticed that our repurchase activity through the end of October has actually been running near the upper bound of what these rules allow. Looking ahead, we plan to continue executing the repurchase program in a disciplined manner, taking into account our operating capital needs while maintaining compliance with applicable limits. At the same time, we are actively exploring various ways to improve the liquidity of our stock. In addition to buybacks, we will continue to evaluate other potential shareholder return mechanisms so that long-term investors who believe in the company can benefit from the value created as our business grows. Thank you. That will be my answer. Okay. Operator, we can take next question. Thank you.

Our next question comes from Zhongwei Chen with Heji Capital. Please go ahead.

Hello, Guan Yicheng. Hello, can you hear me? Yes, you can. Thank you for your question. I'm Chen Zhenghui from Heji Capital in Suzhou. I have two questions for Guan Yicheng. The first question is, you mentioned that the D2C ratio of the current flagship products has increased by about 30% from 10% in August to the end of this year. During this period, what specific impact has the D2C ratio increased on the number of users, ARPU, and profit rate of the products? The second question is, the profit rate of this quarter's companies has clearly increased, but the income guidance for the next quarter seems to remain in a relatively flat area, and there are even some drops. I would like to ask if the improvement of this rate of income is sustainable. In a relatively stable income level, what structural factors can the company rely on to promote profit and continue to improve? Thank you. I will translate the two questions. The first is, management mentioned a plan to increase the D2C plan mix for your flagship title from around 10% in August to approximately 30% by year-end. During this transition, what specific impact has the higher D2C mix had on key metrics such as user volume, APU and profitability? The second question is, we saw a meaningful improvement in your net margin this quarter, yet the revenue guidance for next quarter remains relatively flat at 24 to 27 million, and even slightly lower at the midpoint. How sustainable is this margin expansion? And with revenue expected to stay stable, what structural driver can continue to support for the profitability improvements Thank you.

Hello, thank you for your question. My name is Cai Ziming. Regarding the impact of the DTC price increase on core indicators of the leading products, I think we can look at it from the following aspects. First of all, the direct and most important impact is still on the profit rate. The promotion of DTC payment methods will effectively reduce DTC's model itself as a payment method, its exchange will not directly bring new users or immediately change the user's payment ability. However, in the process of promoting DTC, we have actually adopted a series of operating methods, such as guiding users to register their official accounts online, providing exclusive DTC payment benefits, and more direct customer service communication, etc. These measures will significantly increase the link between us and the players, which will help to increase the sincerity and flexibility of the players, and indirectly strengthen their desire to pay. From this perspective, the long-term stability and improvement of ARP has actually played an active supporting role. In the future, as the current Google US market also fully opens up DTC payment, we already have some more favorable conditions. Thank you for your question. Regarding the impact of the increased DTC share for the game on our core metrics, We can break it down as follows. First and foremost, the most direct and significant impact is on our profit margin. The promotion of the direct-to-customer payment method effectively reduces the stock commissions paid to the platforms, which directly boosts the product's overall profit margin. This is a primary financial benefit derived from the increased DTC share. Secondly, concerning user base and ARPU, it's important to distinguish the effects. The DTC model itself as a payment method does not directly attract new users or instantly alter users' paying habit. However, the operational measures accompanying our DTC promotion, such as guiding users to register official website accounts, offering exclusive DTC payment incentives, and establishing more direct customer service communication, have significantly strengthened our connection with players. This helps enhance player loyalty and activity, indirectly boosting their willingness to pay, which in turn provides positive support for the long-term stability and the potential improvement of R2. Looking ahead, with Google in the US market now fully opening up to DTC payments, we are in a more favorable position. We plan to systematically replicate the successful DTC strategy and operational model already validated with our current games across our other product lines. We expect this initiative to further drive the overall DTC penetration rate company-wide and ultimately optimize our consolidated profit structure. The next question will be answered by Shang.

Okay, thank you, Zhenhui, for your question. The second question is about our net profit and future revenue level. I think it's like this. Since our listing was completed, the management of the company has been working hard to improve our profitability and to expand the scale of revenue. As Brian mentioned at the beginning, our company's net profit rate has improved in this quarter, reaching about 6.7%, which is about 18% higher than the previous quarter. As of June 2020, we can see that the trend is improving significantly. The increase in the net profit rate this quarter is indeed a direct result of our overall operating quality continuing to improve. This quarter, our investment in purchasing and marketing has become more efficient. The ROI-centered strategy is also playing a role. Even in a relatively stable income environment, as long as the structure of our investment is healthier and more efficient, our profit margin can also be improved. In addition, as Carl mentioned in the DTC question, we are currently paying great attention to improving the DTC ratio. Although the current main results may still come from the performance of our flagship products in Apple's App Store, and for the time being, I understand that the DTC's contribution to our current profit rate is not so significant. However, we have set a very clear goal for the comprehensive improvement of the DTC ratio by 630 next year. We also believe that in this process, the impact of DTC on the improvement of the profit rate will also appear gradually. We continue to take a relatively flat forecast for the next quarter's revenue guidance. I think there are probably two reasons. One is that the mobile game industry around the world will generally have a relatively high flow cost in the holiday season in November and December. So we actually don't do this in a strategic way to make a profit in the short term, which is not in line with ROI. As Brian mentioned earlier, we have accumulated quite a lot of new games in the pipeline. In the future, I think we will see a significant increase in revenue as these new games go on the market. I will give the translation for myself. So since completing our public listing, the management has been consistently focused on improving profitability while gradually expanding our revenue base. As Brian mentioned earlier, our net margin continued to improve this quarter, reaching approximately 6.7%, which represents about 18% year-over-year growth. And compared with the previous quarter, the three-month and June 30th, you can also see a clear and consistent upward trend. The margin improvement this quarter is indeed the direct result of our ongoing enhancement in overall operational quality. Our user acquisition and marketing spending become more efficient, and our ROI-driven approach is working. Even in an environment where revenue remains relatively stable, healthier spending structure and higher efficiency naturally translate into better margins. In addition, as Carl just mentioned in response to the earlier question on DTC, increasing our DTC mix remains a strategic priority for us. While most of the progress so far is still driven by our flagship title on the Apple App Store, and while DTC has not yet made a significant contribution to our company-wide profitability at this stage. We have already set clear internal objectives to steadily increase the DTC ratio from now until June 30th next year. We believe that during this process, the margin benefits brought by DTC will gradually become more visible. Regarding our revenue guidance for the next quarter, we continue to take a relatively flat view. There are two main reasons for this. So first, during the global holiday season in November and December, the mobile gaming industry typically experiences higher traffic acquisition costs. And strategically, we will not pursue short-term revenue spikes at the expense of ROI discipline. So second, as Brian also mentioned earlier, our pipeline currently includes multiple new titles at different stages of development and testing. The more noticeable revenue growth trend will emerge progressively as these new games come to the market over the coming quarters. So that will be my answer to your question, Zheng Hui. Thank you, Zheng Hui. This is my answer.

There are no additional questions at this time. I will now hand back to Shawn Zhang for any 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.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.