Global Mofy AI Limited

Ladies and gentlemen, welcome to the Global Murphy Market versus Fiscal Year 2023 Earnings Call. At present, our telephone attendants are in a listening state. After the speech, there will be time for participants to ask questions. Now, let's invite the host to start speaking. Thank you.

Thank you, operator. Greetings, dear shareholders, analysts, respected investors. and members of the Global Mophie Metaverse community. Good morning to audiences in the US and good evening to audiences here in China. Thank you for joining Global Mophie Metaverse fiscal year 2023 earnings call. I'm Celine, Securities Affairs representative of Global Mophie, and I extend a warm welcome to each one of you joining us today. It's an honor to stand before you, provide insights into the remarkable journey we've embarked upon over the past year. The past year has been nothing short of transformative for Global Mophie Metaverse, as we navigate the dynamic landscape of the Metaverse and digital entertainment economy. We find ourselves at the intersection of innovation, strategic excellence, and unwavering commitment to delivering value to our stakeholders. In the ever-evolving landscape of the Metaverse, Global Mophie has emerged not just as a participant, but as a frontrunner, shaping the narrative of what's possible in this digital realm. Our commitment to pushing boundaries, embracing cutting-edge technologies, and fostering a culture of creativity has propelled us to new heights. Today, we gather to unravel the story written in numbers, our fiscal year 2023, a year marked by resilience, growth, and strategic foresight. The financial matrix we are about to discuss are not just figures, They are a testament to the collective efforts of our dedicated team, the trust of our investors, and the execution of our business model. Throughout the fiscal year, we strategically executed initiatives that propelled us forward, whether it was the expansion of our high-margin 3D digital asset licensing business, bolstering our intangible assets, or successfully completing our initial public offering on NASDAQ. in October 2023. Each step was a strategic move toward a more robust and diversified future. Before diving into detail numbers, let me introduce our management team present today with me, our CEO Hao Gangyang, CFO Chen Chen, and CTO Wen Junjiao. They will be available for Q&A after the presentation. This page goes over our Safe Harbor forward-looking statements for people who are not familiar with our business in essence we specialize in virtual content production and digital assets development leveraging our expertise to craft immersive experiences for the metaverse our unique proposition lies in the deployment of our preparatory multi-lab technology platform this platform seamlessly integrates cutting-edge three-dimensional rebuild technology and artificial intelligence interactive technology. Through Mophie Lab, we've elevated content creation to newer heights. Our platform allows us to fashion highly detailed 3D virtual renditions in stunning 4K resolution. This extends to a diverse array of physical world objects. including humans, animals, or captivating scenes. The versatility of our creations finds applications across various domains. Mophilab is not just a tool, it's a strategic asset driving our continuous development in the metaverse industry by lowering costs, boosting efficiency, and optimizing resource utilization for us. We also take pride in being recognized as a frontrunner in the 3D digital asset landscape in China. According to the industry data sheet by Frost and Sullivan, we stand tall as one of the leading digital asset banks. Our repository owns over 30,000 high-precision 3D digital assets, a testament to our continuous innovation and R&D efforts. With our digital asset bank backing us and our self-developed Mophie Lab platform, Global Mophie operates primarily in two distinct but interconnected lines of business, those being virtual technology services powered by Mophie Labs. Our virtual technology services offer tailored solutions for the digital entertainment industry, from custom visual effects in film and television to engaging content development for advertising, games, animation, e-commerce, XR, and digital cultural tourism. We deliver precise technical solutions across a spectrum of fields. The other line of business being digital asset development and others. Through our virtual content production business and opportunistic acquisition of certain digital assets, we're able to build a robust digital asset bank with more than 13,000 3D digital assets. We license specific use rights of these digital assets to customers. We use them based on their specific needs across different applications, such as animation, and gaming. The licensing provides customers the right to use our 3D digital assets within certain scope of use, and we are entitled to receive the license fee under the licensing arrangements. Generally, unless the digital assets are customized specifically as requested by the customers, the licensing of the digital assets is not exclusive, and digital assets may be licensed repeatedly to other customers. Let's now dive into the standout achievements that define our fiscal year 2023. In fiscal year 2023, we achieved a historical milestone with record revenue surging to $26.9 million, marking a remarkable 56.4% increase from the previous year. This signifies not only substantial growth, but also the highest revenue ever recorded in our company's history. Our fiscal success doesn't stop at revenues. Those gross profit and net income reach unprecedented highs, hitting $14.5 million and $6.6 million, respectively. This is accompanied by an impressive 54% gross margin, showcasing the robustness and strength of our financial performance. In October 2023, we entered a new era by successfully completing our initial public offering, securing $6 million in funding. This significant achievement not only underscores our financial stability, but also strategically positions us for sustained growth and continuing success in the public market. Our commitment to innovation is evident in the exponential growth of our 3D digital assets. From just over 7,000 in 2021, we have surged to over 30,000 in fiscal year 2023, reflecting our dedication to expanding and enhancing our digital asset bank. Let us visually explore the significant growth and transformation in our financial matrix by comparing the data from fiscal year ended September 30th, 2022 to September 30th, 2023 as illustrated our total revenue experience an impressive surge from 17.2 million in fy 2022 to record-breaking 26.9 million us dollars in fy 2023 a remarkable 56.4 percent increase the trajectory of a gross profit is equally notable from 4.1 million dollars in fy 2022 we forward to $14.5 million in FY 2023, an impressive 253.1% growth. A significant turnaround is evident in our net income, shifting from the FY 2022 net loss of $0.3 million to a noteworthy $6.6 million net income in FY 2023. This transformation underscores our strategic success Now, a detailed exploration of our revenue, highlighting the significant contribution of each business line and the strategic shift that shaped our fiscal success. In fiscal year 2023, virtual technology service revenues accounted for 57.2% of our total revenues, a strategic adjustment from the 72.9% in fiscal year 2022. Despite adjusted percentage, revenue from virtual technology service increased by $2.8 million, marking a substantial 22.7% growth from fiscal year 2022. This growth was primarily driven by the recovery of the Chinese movie and TV industry, showcasing our adaptivity and responsiveness to market dynamics. A deliberate shift in our business mechanisms lead to a significant change in the contribution of digital marketing to our revenue mix. In fiscal year 2023, digital marketing revenues accounted for 0% of total revenues as compared to the 3.7% in fiscal year 2022. This strategic shift reflects our focus on higher margin lines and the commitment to optimizing our revenue streams and to continuously reducing input in the digital marketing business line. As part of our forward-looking strategy, we anticipate a further reduction in the proportion of digital marketing to total revenues in the future. In FY 2023, revenues from digital asset development and related areas contributed significantly, accounting for 42.8% of our total earnings. showcasing a substantial increase from the 23.4% recorded in FY 2022. The revenue from digital assets development experienced an extraordinary upswing, skyrocketing by $7.5 million, indicating an impressive 186.3% overall growth from FY 2022 to FY 2023. In fiscal year 2023, Our growth margin witnessed a substantial surge from 23.9% to an impressive 54%. This noteworthy improvement can be attributed to enhanced growth profit margins across various segments, notably in virtual technology services and digital asset development. The growth profit margins for virtual technology services experienced a commendable rise from 24.1% to 37.5%, showcasing a strategic uplift. This improvement underscores our commitment to operational efficiency and maximizing returns in this pivotal business line. Furthermore, the gross profit margin for digital asset development and other segments reached an exceptional 76.2% in fiscal year 2023. This substantial margin reflects the inherent profitability of this business line and the successful execution of our strategic initiatives to further increase our input in this business line. The collective increase in growth margin for both segments can be traced to the completion of higher margin projects, a successful sale of possessed digital assets. These endeavors signify our focus on delivering value while optimizing revenue streams and operational efficiency. Our cash position soared to an impressive $10.4 million, showcasing a high increase from the $1.1 million recorded in FY 2022. This substantial growth, approximately 845.45%, underscores our strength in financial management. Also presented here in this graph, a noteworthy introduction of $6.5 million in intangible assets. a significant development compared to the absence of such assets in FY 2022. The infinite percentage increase reflects our ongoing investments in valuable assets, contributing to long-term value creation. Our intangible assets primarily consist of digital assets acquired from third-party suppliers. These assets, predominantly 3D models, are invaluable components of our digital arsenal. These licensed digital assets, crucial for our operations, are expected to contribute to our endeavors over a period ranging from three to five years. As part of prudent accounting practices, we amortize these assets using the straight-line method, evenly distributing the associated costs over their estimated economic life. Account receivables increased to $3.3 million compared to the 2.1 million recorded in FY 2022. Although a slight increase in accounts receivable, but considering our growth of 56.4% in revenue, the percentage of accounts receivables to revenue has decreased relatively from approximately 14.48% in FY 2022 to around 12.27% in FY 2023. This signifies our enhanced efficiency in managing receivables and optimizing cash flow, contributing to our overall financial health. Now a comprehensive overview of our operating expenses, offering a clear perspective on the strategic allocations that accompanies our remarkable financial results for fiscal year 2023. In FY 2023, our operating expenses experience a prudent increase of $2.5 million, aligning with the substantial growth in our total revenues. It is crucial to emphasize that these increases are not arbitrary, but are strategically rationalized in the context of our amplified revenue stream. Selling expenses reflecting expenses for sales and marketing, when there's a slight uptake of $0.1 million, increased from recorded $0.2 million in FY 2022 to now recorded $0.3 million in FY 2023. These expenses, although showing growth, contribute significantly to our total revenue growth as well. FY 2023 G and A expenses, inclusive of salaries, professional service fees, and office expenses, showcased an increase of $2.0 million from $1.0 million to FY 2022 to $3.0 million in FY 2023. This increase is justified by higher professional service fees related to the initial public offering, amortization of intangible assets, and provision for doubtful accounts. Research and development expenses covering employee salaries, overheads, and outsourced development costs experienced a moderate increase of $0.3 million, reflecting a 10.5% uptick to $3.5 million for FY 2023 from $3.2 million in FY 2022. This measures increase in attributed to fewer ongoing research and development projects as we transition into the development stage after completing our initial research on digital assets related techniques. These insights underscores the rationalization and strategic alignment of our operating expenses with the substantial growth in our revenues. Each category's growth is intricately linked to our broader fiscal strategy, ensuring that our investments are sensible and conducive to sustained success. This page now shows some growth drivers shaping the landscape of the metaverse industry in China, presenting a dynamic scenario that aligns seamlessly with our future strategic positioning. First, regulatory impediments. In August 2023, a groundbreaking initiative unfolded as five key departments, including the Ministry of Industry and Information Technology, jointly issued the three-year action plan for the innovation and development of metaverse industry. This comprehensive plan outlines a visionary trajectory targeting breakthrough in technology applications and governance by 2025 with the aim of propelling China's metaverse industry to a world-class standard. Secondly, metaverse evolution, Further fortifying this momentum, the Metaverse White Paper 2023, jointly released by the China Academy of Information and Communications Technology and the Virtual Reality and Metaverse Industry Alliance, anticipates a pivotal development in 2024. This marks the Metaverse's inaugural upgrade, propelling it into a medium-sized platform within the front-end experience layer. The forecast emphasizes a transformative journey from the human terminal to the 3D immersive audio-visual layer, underlining an exciting phase of innovation and evolution. At Global Multi-Metaverse, we recognize the profound impact of these strategic directives and industry predictions. Our forward-looking strategies position us to not only adapt but thrive in these thriving landscapes. As the metaverse industry in China undergoes this huge revolution, We stand poised to capitalize on emerging opportunities, ensuring that we remain at the front end of technological innovation and market leadership. Let's now turn our attention to the broader canvas of the global market metaverse, where exponential growth and transformative possibilities unfold. As illustrated in this diagram, the metaverse market is on a compelling ascent. poised for substantial expansion. Projections indicate that by 2024, the market is expected to reach a commendable value of US$74.4 billion. What makes this even more intriguing is an anticipated annual growth rate, forecasted at an impressive 37.73%. This dynamic growth is expected to propel the market volume to an astounding US$507.8 billion by the year 2030. We recognize the vast potential embedded in the global metaverse market. These projections not only signify a thriving industry, but also underscore the immense opportunities for 3D asset developers and solution providers like us. Our strategic initiative are attuned to capitalize on this significant market growth, ensuring that we are not just observers, but active contributors to this transformative journey. In conclusion, as we navigate the evolving landscape of the metaverse, these global market projections inspire confidence and excitement. It's a testament to the balanced possibilities that lie ahead, and we are well positioned with our abundant 3D digital asset bank to be architects of this future. Fiscal year 2023's financial results not only met but exceeded our expectations. After exploring fiscal year 2023, let's take a moment to spotlight some noteworthy developments and milestones that have transpired post our fiscal year ended September 30, 2023, setting the stage for a promising year of 2024. On January 3, 2024, Global Multi-Metaverse proudly announced the successful closure of a follow-on offering, securing a substantial US$10 million fund from institutional investors. This financial injection is a testament to the confidence that the investors placed in our growing business. Building on our vision for global impact, on January 4, 2024, the company took a significant step by registering its overseas subsidiary, Global Mophie Technology LLC. in California, USA. This strategic move positions us to expand our virtual content production business overseas and explore new frontiers in the international digital entertainment market. In a strategic diversification move, January 11, 2024, Global Movie Metaverse announced a groundbreaking investment in Mera Edu. marking our entry into the vocational education sector with an RMD $8 million funding round led by the Angie County Government Industrial Guidance Fund. This initiative showcases our commitment to exploring diverse avenues for growth. These recent accomplishments not only reflected our ambition for continued growth, but also laid the foundation for our positive outlook on 2024, The success of the follow-on offering provides us with additional resources to fill our growth initiatives, while the global expansion and educational sector entry align with our strategic vision for diversified revenue streams. Looking ahead to 2024, we have set an achievable target with an overall revenue goal of $50 million. Given the substantial growth we experienced between the fiscal year 2022 and 2023. Furthermore, our strategic focus is on maintaining our current growth margin of 53.9% and we are committed to elevating it even higher. This commitment aligns with the continuous investment in the high margin 3D digital asset licensing business, ensuring sustained growth and profitability. Dear shareholders, analysts, respected investors, and members of the global Murphy metaverse community, thank you for staying with us here. In the face of challenges that tested the meta of business worldwide, global Murphy metaverse is strong. It's important to recognize that the fiscal year 2023 was a transformative period for global Murphy metaverse. In 2023, we're strategically executing moves that are not only overcome obstacles but also reshaped our business structures. From the expansion of a high-margin 3D digital asset licensing business to the successful completion of initial public offering on NASDAQ, each decision was a deliberative step towards a more diversified and successful future. We appreciate your engagement and look forward to addressing any questions or insights you may have as Global Murphy continues to navigate the path of innovation and growth. As we move on to the Q&A session, I'm pleased to introduce the key executives joining us today once again as they will provide for a deeper dive into our fiscal year 2023 performance and the exciting prospects for the future. Firstly, we have with us here our Chief Executive Officer, Mr. Haogao Yang. Haogao's visionary leadership has been instrumental in shaping our strategic vision and driving the overall success of Global Mophie Metaverse. Next, we have our Chief Financial Officer, Mr. Chen Chen. Chen Chen's financial acumen and strategic financial planning have played a crucial role in achieving the remarkable fiscal achievements we've just shared. Last but not least, we are joined by our Chief Technology Officer, Ms. Wenjing Jiang. Wenjing's visionary approach to technology has been pivotal in positioning Global Mophie Metaverse as a tailblazer in digital entertainment and metaverse industry. Now I invite you to post any questions you may have over the phone. Our conference assistant will provide instructions on how to participate in the Q&A session shortly. Without further ado, let's commence the Q&A session. I will be translating questions and answers in between Chinese and English for our management team. In case of discrepancy, please refer to our management team's statement in original language. Operator, we can open the call for Q&A session. Thank you.

To register your questions, please press star followed by one on your telephone keypad. In order to be fair for all callers wishing to ask questions, we will take two questions at a time. Thank you. To register your questions, please press star followed by one on your telephone keypad. In order to be fair for our callers wishing to ask questions, we will take two questions at a time. Thank you. To register your questions, please press star followed by one on your telephone keypad. In order to be fair for all callers wishing to ask questions, we will take two questions at a time. Thank you. The first question comes from Jenny Chen from BBC Fund. Thank you.

May I ask how is the intangible asset of Global Murphy defined? And I noted that your intangible asset totaled $6.5 million in FY 2023. Can you explain this substantial increase? Thank you. We have received your question, and I will translate that to our CFO for answers.

First of all, I will answer this question.

For our company, the definition of infinite assets refers to these high-efficiency digital assets in our digital asset library. Another question is, this lady is concerned that in 2023, our infinite assets reached a volume of $6.5 million. Compared to 2022, we don't have infinite assets. It does have a big increase. This is mainly due to the fact that before the fiscal year of 2023, our auditors believed that our investment in digital assets was not expected to bring an obvious income to the enterprise. So we did a cost-saving process and entered the development cost. Since we have a cost-saving process The digital asset acquisition business has taken up a large proportion in our entire revenue structure. It is also close to 43% of this proportion. The amount reached 1,150 million US dollars. It also proves that these digital assets that we have developed can bring income to companies. So, our reviewer, based on the following principles, In 2023, we changed the strategy of our zero-waste asset recognition. We invested our digital assets in a capitalized process. So, we have 6.5 million US dollars of zero-waste assets that are so big that they are included in our asset balance sheet.

Thank you, Mr. Kim, and I will now briefly translate his answers. For the company, intangible assets refer to 3D digital asset products. The explosive growth of intangible assets to $6.5 million in 2023 is primarily attributed to the unprecedented, unexpected increase in the value of digital asset investments made before the 2023 fiscal year. These investments were initially not expected to generate revenue. However, in the 2023 fiscal year, the digital asset licensing business played a significant role in our revenue, accounting for a substantial portion of our total revenue, reaching $11.5 million. This demonstrates the company's capitalization ability, leading to the recognition of these assets as intangible assets. Thank you. And interpreter, I think we may move on to the next question.

The next question comes from from the third floor. Thank you.

Thank you. I just noticed from your presentation that the gross margin of 3D digital assets is really remarkable. So I wonder, What is the factors for the higher gross margin of the digital assets development, and what is the cost structure of this business segment? Do you anticipate that the high margin level will be maintained in the future? How will be the overall gross margin going forward? Thank you.

Thank you for your question, and I will now translate the question to our CFO for answers.

Okay, so this is it.

First of all, our digital asset business is based on the fact that our digital asset business exists in the form of acquisition. In other words, our different types of digital assets can be sold or authorized for a second time through a second research and processing. So this has also dramatically reduced the cost of our real estate business. Therefore, it has caused such a high profit. The second question is about the success of our real estate business. Mainly operating fees, production fees, and some external costs. As for the high profit of our real estate, I am actually very optimistic. I think we will maintain such a high profit.

I will now briefly translate Mr. Chen's answer.

Mr. Chen just answered that first of all, the high gross margin in the digital asset business is attributed to repeated purchases. Different digital assets can be subject to multiple authorizations and sales through secondary or multiple rounds of development, effectively reducing our costs. Secondly, the cost structure of digital assets primarily comprises operational expenses, production costs, and procurement expenses. He is also confident that the high margins will still remain for the upcoming year.

Thank you. Thank you. Here's my second question. What are the main areas of focus for your future plans in strategic outlook?

Thank you. And I will now translate the question to Mr. Haogan Yang, our CEO.

Mr. Yang. I'm here.

This investor just asked about our company's future plan and what it looks like. We will have a series of acquisition and investment plans in the future.

And then, including recently, we have just invested in education, and then invested in primary education. In the future, in addition to strategic investment and infrastructure education, we will carry out strategic investment in other areas of the industry chain. The core is to further consolidate our market position. In the future, we are also considering some asset acquisition plans, including some asset acquisition plans in North America, to improve the company's competitiveness overseas.

And I will now briefly translate Mr. Yang's answer to your question. Mr. Yang just answered that we have future plans for a series of acquisitions and investments, including our recent investment in Nara Edu. There are potential projects in other segments of the industry chain in our future investment plans. The core objective is to consolidate our leading position in the industry and continue with asset acquisitions to build up our digital asset bank.

Okay, thank you. Here's my third question.

do you have any plan of acquisition or investment targets into new sectors in the industry value chain?

Okay, thank you for your question.

And I will now translate the question to Mr. Haodong Yang. Mr. Yang, the investor just asked if we have acquired or invested What are the other parts of the industry? What are the specific parts? And what are the other more detailed plans for the future? Our specific investment and acquisition parts are still serving our core technical industry chain.

It is divided into two parts. One is the expansion of our digital assets. So we are now working with North America Thank you.

And I will now briefly translate Mr. Haoyang Yang, our CEO, over to your question. He mentioned that specific investment and acquisitions primarily focus on expanding our ownership of digital assets. We are currently in negotiation with a North American asset repository and also exploring resource integration within some domestic companies in the industry as well. Our core objective is still to consolidate our leading position in the industry and continue with asset acquisitions to build up a more robust digital asset bank.

Thank you. Thank you very much for your answers.

Okay, and do we have any more questions from the ground? For people joining us in the website, you may also dive into the numbers listed in our press release as well in order to ask questions.

We will wait for another three minutes before we shortly end today's earnings call if no more questions are asked. The next question comes from Jenny Chen from BCC Fund.

Thank you.

Thank you. Thank you very much. I have one more question. Your IMD expenses have increased. So how can you achieve a further increase in profit? And the company's net profit in 2022 is still negative. Why is there a growth of over 6 million this year? Thank you.

Thank you. And may you repeat your second question?

So the company's net profit in 2022 is still negative.

Why is there a growth of over 6 million?

this year in FY2023. Thank you.

Thank you. And I will now translate the question to Chen Chen, our company CFO. The investor just asked how our company's development costs are growing and how we can continue to maintain our profits Okay, let me answer this question.

First of all, our R&D cost reached $3.5 million in 2023. Compared to the $3.2 million in 2022, it is still growing. In fact, our investment in R&D is not only this. It is mainly due to our recognition of R&D cost this year. uh uh We believe that our profits and profits will remain at a high level. First of all, our digital real estate business has shown its potential in 2023. In our entire revenue structure, its proportion has also reached 43%. We expect that these digital real estate will continue to give our companies continuous revenue. Then the last question is that you just paid attention to the fact that we may have a loss in the fiscal year of 2008. But we had a very obvious increase in the fiscal year of 2023. This is mainly due to our fiscal year of 2023. First of all, in terms of income, we reached a historical new high of 26.8 million. The second is the adjustment of our income structure. I believe we will continue to maintain this attitude of growth in the future.

Thank you, Mr. Chen.

And I will now briefly translate Mr. Chen's answer to your question. Firstly, the RMD expenditure reached a scale of $3.5 million in 2023, showing an increase compared to the $3.2 million in 2022. In fact, the investment in RMD goes beyond this figure, but there has been a strategic change in the recognition of these expenses this year. This shift is due to the long-term profit potential of the assets associated with R&D contributing to the slowdown in the growth of R&D expenses. We anticipate a continuous stream of revenue from digital assets contributing to the growth in gross profit. The increase in gross profit is primarily driven by the growth in total revenue coupled with adjustments in the revenue structure. The higher proportion of the high margin 3D digital asset licensing business contributes to this growth, and they expect to maintain this momentum in the future as well.

I have one more question.

So the net profit has turned to positive. Or how do you plan to maintain your operational efficiency as the company continues to grow? Thank you.

Thank you for your question. And I will now deliver the question to Ken Chen, our CFO. How do we manage our G&A costs, our administrative costs, and management costs? How do we maintain them in a reasonable range?

Okay, let me give a brief explanation. First of all, our future plan is that our operating costs may continue to increase, because as our revenue size continues to expand, our investment in management will also increase accordingly. At the same time, in order to improve our operation efficiency, our company has also optimized the cost and improved the efficiency of this kind of project, including our performance system, including our control over the downstream, to reduce our operating costs. So I am still very optimistic about Thank you, Mr. Chen. And I will now translate these answers. Mr. Chen just answered that firstly, our future plans include further growth and DNA expansion.

As the operational scale expands, there will be a proportional increase in administrative expense due to our high revenue and even growing revenue. We are also optimizing costs internally, including downstream cost control to keep G&A general and administrative costs within a reasonable range. We have made such efforts, and we will be continuing making such efforts in the future.

Thank you. The next question comes from Alice of the Third Law.

Thank you.

Thank you.

My question is, can you provide more details on the expansion of the digital assets application field and its impact on revenue? Thank you. I just received your question and I will now deliver the question and translate that to our CTO, Ms.

Wenjing Jia for answers.

有问到我们在未来的3D数字资产应用领域将会做怎么样的一个扩张, 就是我们会往具体哪些领域进行持续的研发, 以及持续的投入。 目前我们主要的应用领域是在影视广告, 游戏动漫,然后XR数字文旅等这些行业当中。

And then the field of design is actually very broad. So in the future, we actually have plans to continue to expand new fields, such as digital cities, medical and educational visualization, and so on. Our goal is to continue to grow the asset acquisition rate and to continue to grow the interests of enterprises. Thank you Ms. Jiang for your answer and I will now translate the answers into English.

Ms. Wenjing Jiang just answered that currently our main areas of focus are in film and television, advertising, gaming, e-commerce, animation, and XR, as well as digital tourism. In the future, we also have plans to expand into the fields of digital cities. medical visualization, and educational visualization. The goal is to achieve a higher repurchase rate of our digital assets and to broaden the application scenarios for our assets.

Thank you.

The last question is, how do you protect the copyright issues of your assets? How to ensure that authorized assets are not sold? Thank you for your question. And I will now translate the question to our CTO, Ms. Wen Junjia, for answers. Ms. Wen Junjia, thank you for your question. Ms. Wen Junjia, thank you for your question. Ms. Wen Junjia, thank you for your question.

We divide it into two parts. Let me talk about it first. Part of it is for free assets. We will use some plug-in methods to protect the use. Another one is, for example, we go to review some local and regional assets. We will go and confirm with the real estate owners. So that they can only be authorized by the third party on our platform. We created these 3D digital assets on the platform of MoffyLab. Therefore, we have the right to these assets. Therefore, these assets will be protected by the Chinese People's Republic of China's Procurement Act. In addition, we will take part of this year's revenue to register these digital assets. Thank you, Ms. Jiang, for your answers and I will now briefly translate her answers for you.

For our own assets, we will use some plugin methods for usage protection. We will confirm the ownership of assets with landmark and regional attributes with the entity owner so that they can only be authorized for third party use on our platform. As of the date of this report, None of our 30,000 3D digital assets in the asset library that are currently available for licensing have registered copyrights under PRC or any international authority. We convert and create these 3D digital assets from real-world objects using our hardware and software in the monthly lab, and therefore we have ownership over these assets. Although these 3D digital assets are not registered yet, They are still protected under the PRC copyright laws. However, the lack of copyright protection may impact our ability to generate licensing fees or protect our intellectual property from unauthorized use or privacy. Further, if other companies preemptively register the intellectual property rights of the same digital assets or use them may involve infringement and may lead to litigation and compensation to others. We do plan to register these 3D digital assets using part of the proceeds from previous offerings.

Thank you. Okay, thank you. Thank you for the answer.

Thank you, and I think it is 9.34 here in time, and if no more questions are asked, we may conclude today's earnings call.

Operator, if no more questions are asked, we may end today's earnings call.

Thanks again for your attention of today's conference. Wish everyone a happy life. Goodbye. Thank you.