This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk06: Good day and thank you for standing by. Welcome to the IGE third quarter 2021 earnings conference call. At this time, all participants are listen-only mode. After speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference has been recorded. If you require any further assistance, please press star zero. I would now like to have the conference OT speaker today, Ms. Chang Yu, IR Director of Company, please go ahead.
spk00: Thank you, operator. Hello, everyone, and thank you for joining ITE's third quarter 2021 earnings conference call. The company's results were released today and are available on the company's investor relations website at ir.ite.com. On the call today are Mr. Yu Gong, our founder, director, and CEO, Mr. Xiaodong Wang, our CFO, Mr. Xiaohui Wang, our CCO, Chief Content Officer, Mr. Wenfeng Liu, our CTO, Chief Technology Officer, and Mr. Xianghua Yang, Senior Vice President of our membership business. Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Xiaodong, who will go through the financials and guidance. After their prepared remarks, Xiao Hui, Wen Feng, and Xiang Hua will join Mr. Gong and Xiao Dong in the Q&A session. Before we proceed, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but not limited to, those outlined in our public filing with the SEC. ITE does not undertake any obligation to update any forward-looking statement except as required under applicable law. With that, I will now turn the call over to Mr. Gong. Please go ahead.
spk08: Hello, everyone. Thank you for joining us today. In the third quarter, we faced a lot of volatility as we negatived it. Through a particular challenge operating environment, we experienced uncertainty in terms of content scattering, which resulted in softer than expected top-line performance. Despite the short-term volatility, we are delighted to see encouraging signs of crossing multiple operating metrics. Our leading market position remains intact as we continue to rank number one in various user metrics according to third-party data. We firmly believe there are a couple of eternal truths when it comes to entertainment. The first is that audiences constantly demand high-quality entertainment content, such as movies and dramas. And the second is that creators have infinite potential to develop excellent material. With this market dynamics in mind, we think we have tremendous space for growth and development. During the quarter, we continue to enhance the production capabilities of our original content, explore new genres to diversify into and expand our user base by refining our products and the overall user experience. Meanwhile, we have been driving the industrialization of video production to improve the efficiency of our operations. We believe all of these developments will enable us to navigate through the short-term challenge. And we are on the right path to achieve long-term success. Now, let's go through the performance of our business segments in the full quarter. Let's start the membership. During the quarter, our membership services revenue grow both annually and sequentially. Our core strategy is to cater to the demands of specific user segments with diversified content and continuously improve membership, improve member benefits that enhance the member experience and drive new member sign-ups and user retention. At the same time, we are focused on raising up and improving the long-term monetization of our membership business by developing innovative new business models, adjusting our price points, eliminating ineffective discounts, and pushing soon other operations initiatives. However, as I mentioned earlier, the uncertainty of our content gathering caused fluctuation in terms of subscriber numbers. In the future, we will continue to enhance our library of content across different genres and strengths, our ability to withstand risks related to content schedule. In the third quarter, membership services revenue grew by 8% year over year, mainly due to the success of key drummers such as One and Only, Zhou Sheng Ru Gu, and Forever and Ever, Yi Sheng Yi Shi, which were launched in the third quarter, as well as the continued interest in dramas launched at the end of the second quarter, such as My Dear Garden, An Sheng Tou Rong Bing, and the Rebel, Pan Ni Zhe. As of September 30, the total number of subscribers was 103.6 million. The sequential fluctuation was mainly due to delays in the release of some highly anticipated content. Meanwhile, the major content that we did release in the third quarter was less diversified in terms of genres. Despite the soft performance, We are happy to see that subscriber growth on TV devices and from overseas has maintained a good momentum. We believe that higher conversion of users on TV devices and the continued expansion of our overseas user base will be a significant driver of future subscriber growth. On the other hand, recorded both annual and sequentially growth. As the annual growth rate of 10% was mainly due to the successful price adjustment that rolled out last November, we expect the arc of our membership business will continue to improve going forward driven by our content and our multiple operating initiatives The member experience is one of the most important subjects that we focus on. On October 4th, we proactively canceled the paid-at-once view model ahead of PRs. This should further help improve the member experience and thus support subscriber growth and retention. and lay a solid foundation for the long-term monetization of our platform. In addition, we continue to enhance member benefits. Our platform will cooperate with top industry partners. In terms of new services and the new business model, one of our key focuses is to promote the development of cloud cinema. primarily across three content categories. Stereoarchical films distributed via PVOD model. Premium films only distributed via online platform and IT original films. Since 2020, Stereoarchical release of future films have been hit significantly by the COVID-19 The Cloud Cinema model will reduce the reliance of online video platforms on their actual films. Also, it enables users to watch new films soon after their offline release at a price that is cheaper than a traditional movie ticket. maximize the monetization potential of each film. During the third quarter, we released our new life, , under our cloud cinema model. These films fall in different genres, namely comedy, action, and suspense. which helps to satisfy the demands of different user cohorts. In addition, our first original pivot field, Northeastern Brother, Dongbei and Ge, was launched in October and received positive user feedback since its launch. In terms of our thesis expansion, we were able to significantly expand our user base, with DAUs increasing sequentially in a number of Southeast Asia countries. Downloads of the IT app remained on top of the chart across various regions, in rank number one in Thailand, Malaysia, and Vietnam. Unforgettable love and other domestic blockbuster job continued growth of our overseas revenue. We also recently kicked off the development of six overseas original dramas, including four Korean and two Philippine originals. In addition, we continue to expand our cooperation with local partners, including multiple media platform and operators in Malaysia, Thailand, and Singapore. We also launched our ad system side annual cooperation framework agreements with numerous advertisers and successfully expanded a local sponsorship for our theater. Moving on to advertising. During the quarter, our advertising revenue came in soft, mainly due to a drop in brand ad revenue. The decline was mainly due to the delay of key content, including dramas and variety shows. We continually work on developing innovative new variety shows, which we are doing to diversify our content and direct our business from content scouring uncertainty. We are still refining and fine-tuning some of these productions, and it's going to take some time to win over advertisers and simulate their budgets with this new gyrus. The softness of our brand advertising business was also due to the overall challenging microeconomic environment in China. Renewal from performance has increased steadily both year-over-year and sequentially during the quarter. Our ITLite app was the main driver behind this. As opposed to our main app, ITLite mainly focuses on low-tier cities. There is low overlap with our main app, which mainly focuses on brand ads. ITE Lite is expected to be a great complement that drives new growth of our advertising business. The year-over-year growth of performance ads also benefits from, one, an improvement in our monetization capabilities driven by our technology, and two, contribution from key sectors, including internet service and e-commerce. The sequential growth was also partially driven by the growth in our ad inventory during the summer vacation. Looking forward to the fourth quarter, we observed some slowdown in China's overall macro economy, which might negatively impact our advertising business. Nonetheless, we are proactively adapting our jobs to the environment to minimize our potential exposure. Moving over to content, we are experiencing increased uncertainty in terms of content scaling and a prolonged content approval process since our last earnings call. Although we prepared a rich slate of content during the quarter, some of the top drummers and variety shows in our pipeline experienced launch delays. Going forward, to offset these types of risks, we are looking to further expand and enrich diversity of our content portfolio, explore new and different categories, and deepen user awareness of our diversified content offerings, all in an effort to de-risk our business from content-scattering issues in the future. In addition, we actively responded to the guidelines issued by the various government authorities to promote the chaos of entertainment and online media industries. We believe these actions will further resolve long-existing problems in the industry, which should help us to further optimize content cost, eliminate chaos in content production and promotion, and reduce the regional industry competition. Overall, these changes should be beneficial for supporting the healthy development of the industry over the long term. I would also like to highlight our content strategy. Efficiency in content production and operation has always been a primary target that we strive for. And we are now putting even more focus on it. We are proactively taking initiatives to improve the efficiency of our operations and reduce ineffective investments in content by cutting projects that are expected to generate low ROI. The online video industry has rapidly developed over the past decade, and now we have gotten to a point where content is king and efficiency is key. We are happy to see the continued results of our progress to optimize content cost driven by enhanced production capability, disciplined content spending, and improved operations. An important metric we use to track the efficiency of our content spending is the content-related cost ratio. Simply speaking, this metric is calculated by dividing the total cost related to a title by the revenue generated by it. Based on this measurement, we can see the operating efficiency of our overall content in 2021 have improved substantially from last year. We will continue to use this metric as an effective tool in managing the efficiency of our investments in content and operations. For example, one and only, and forever and ever, while two drummers launched this quarter. These two titles were both adapted from the same novel, which created synergies in terms of IP and they are quite innovative in terms of both content creation and the broadcasting models. Also, these two titles are good examples that demonstrate our increased efficiency and in content operation as measured by the content-related cost ratio. The performance of one and only was 13 percentage points improved than last year's drama Love is Sweet , which features the same leading actress and belong in the same genre. We would also like to show some highlights on the performance of our vertical content sales model strategy. We have always been the industry pioneer in terms of content innovation and operation. Our sales model strategy is definitely one of our successful attempts. This model helps us to build a recognition among audiences and advertisers in different genres. in which beneficial for attracting new user and driving up user retention. It offers better ROI as it brings synergies among different titles within the same content genres. And it provides more flexibility in working with advertisers. For example, we observed that The recent broadcast of the pavilion, BaJiaoQing MiWu and the bishop, ChengYuanMeng, boasted the viewership of Mr. Shelter's first season titles. Especially, the recent daily video view and the user time span for the bad kids increased by more than two times since the new season of Mr. Shelter. was launched. Looking forward to the fourth quarter, although we predict that uncertainty will remain in the market, we will continue to execute our diversified content strategy, in addition to the new season of Mr. Shelter, launched in the first quarter. Other key titles include the drama series Fengqi Luo Yang, the variety show Super Sketch Show and Action and animated content such as DL Squad 2 and Princess Doremi. The Super Sketch Show premiered in mid-October. The show was high The show was highly acclaimed by audiences and solid market leadership in variety shows. Moving on to technology. Advanced technology is the foundation of our business and we are constantly developing new technology to improve the user experience, increase user penetration, develop innovative new content formats and enhance content production and the efficiency of our operations. At the same time, technical innovation is key to the industrialization of video production in the industry, and it will be greatly beneficial for improving the probability of success. increasing ROI, simplifying the production management process, reducing production costs, and enhancing the viewing experience. We continue to make progress in terms of user penetration. The user scale of ITLite grew rapidly. Peak DA use increased by nearly two times sequentially, and the user retention and monetization has also improved. In terms of user profile, as I mentioned earlier, H-E-Lite is mainly focused on low-tier cities, so the growth we have seen with this app speaks to our success in penetrating into these regions. In terms of content production and efficiency improvements, we continue to apply AI technology to effectively reduce production costs during the quarter. For example, operating costs can be effectively reduced with our proprietary intelligent translation tools. We have fully replaced manual translation with automated AI translation for B-level drummers in Malaysia going forward. Once we fully adopt this technology for our overseas business, it will save us hundreds of millions of RMB in translation costs in the future. In terms of industrialization of video, we have launched and applied multiple technology and products to our content production. which reduce the production cost, increase efficiency, and improve the user experience. Take our proprietary multi-view capture system as an example. The system significantly shortens the shouting time and the web volume of manual work. It supports the full production process from camera deployment, video shooting, to post-production, make content production more efficient. Other intelligent tools launched include a script superweather, superweather management product, which can be used in the main stage production process. product has been applied to six-page variety shows, including some of the external works in production. Also, a management tool for the post-production editing process has been used by a number of post-production companies in the third quarter, improving transcoding efficiency by 3.7 times In summary, we are proactively adapting ourselves to the current environment. We continue to be a pioneer when it comes to content innovation and operation. Meanwhile, we are seeing a promising growth trajectory for new initiatives such as IT light and overseas business. Our original content, especially our shelter model content, is highly recognized by users and advertisers. We will continue to take the lead in rolling out our technologies and the tools for intelligent production and driving the industrialization for the long-form video production process, which should help to further optimize our operating efficiency. We have evolved along with the changes in the online video market over the past decades. The experiences we have accumulated and our expertise are exactly in line with where the industry is heading. We value the current challenges as a crew of learning opportunity. We continue to believe that what does not defeat us makes us stronger. With that, I'll turn it over to Xiaodong to talk about our financials.
spk02: Good morning and good evening, everyone. Let me reveal our key financial highlights for the third quarter. Our total revenue reached RMB 7.6 billion. Membership service business continues to be our largest business pillar. with revenue increased 8% year-over-year and accounted for 57% of our total revenue. Online advertising revenue decreased 10% year-over-year, primarily due to less premium content launched during the quarter and the challenging macroeconomic environment in China. Our content distribution revenue achieved 60% growth on a year-over-year basis, and we distributed more content titles to other platforms during the quarter. Our cost of revenues increased 10% from the same period last year, among which content costs increased 13% from the same period in 2020. The increase in content costs were mainly due to the more investment in original content during the quarter. Our operating loss margin on GAAP basis was 18%, remained largely flat compared to the same period last year, driven by our disciplined investment strategy. As of September 30th, 2021, the company had a cash, cash equivalent, restrict cash, and a short-term investment of RMB 11 billion. For detailed financial data, please refer to our press release on our website. For the first quarter of 2021, IG expected total net revenue to be between RMB 7.08 billion and RMB 7.53 billion, representing a 5% decrease to 1% increase year-over-year. This forecast Reflects on his current preliminary view, which may be subject to change. I will now open the floor for Q&A. Thank you.
spk00: Operator, please open the floor to questions.
spk06: Certainly. To ask your question, you will need to press star 1 on your telephone. To withdraw a question, press the pound or hash key. For the benefit of all participants on today's call, If you wish to ask your question to management in Chinese, please immediately repeat your question in English. Please limit your questions to one at a time. If you wish to have follow-up questions, please rejoin the queue. It starts followed by one to ask your question. Your first question comes from the line of LRG from China Renaissance. Please go ahead.
spk04: Thank you. uh um Um, um, um, um, First question is relating to the recent improvement plans you had with a local province government. I just wonder how is that going to affect our future business? A second question is relating to the future membership growth potential. I just wonder regarding the future membership, is it going to be mainly from lower tier cities or still from the major tier cities from the reactivate of the older members? And third question is just wonder what is the management share the anything new or exciting or promising relating to the variety shows going forward? Thank you.
spk08: uh uh uh, uh, uh, uh, uh, uh, We are still working on it based on our own user agreement, public publicity, and our own appropriate business model setting. We are still communicating with Xiaoxian. This is the first question. The second question is that now, The member penetration rate is higher. The member penetration rate in low-line cities is low. We continue to work in this direction. The other dimension is iQIYI's rapid version. Currently, it is mainly developed in low-line cities. The users we are facing are mainly non-member users, which means free users. They consume more content and also consume more ads. They are consuming ads. So our main business model now iQIYI Extreme Edition is still an advertisement, and the efficiency of the advertisement is higher than iQIYI Extreme Edition. I think iQIYI Extreme Edition will take another year or two to develop the members of the B-line city. I will translate Mr. Gong's feedback. So for the first one, in terms of your question regarding the consumer council, so does this kind of apply to the full industry players?
spk00: So our feedback comes from the two aspects. One is the product design. So we have been, the first one comes from the product design and the second one comes from the flow of the product. So the first one, for product design, we've been also communicating with the consumer council, also collecting feedback from our customer service department So our goal is to increase the user experience trying to lower the accidental clicks of any unnecessary steps. So overall, the user experience will be increased and improved. And from the business model perspective, We've been also communicating with the consumer council in terms of also the user agreement to make sure all the messages are communicated clearly with the users. So that's the first question regarding the consumer council-related questions. And the second one is our penetration into the different tiers of cities. So for now, for our penetration in different regions, for the high tier cities, the first and second tier cities, the penetration is high. And for the lower tier cities, the penetration is relatively low for this point. And our ITE app, Light, is the main app that targets this user demographics. So for ITE Light, right now we offer a lot of the free content. So the users consume the free content And then they actually will see the advertisements for that. So right now, on the advertising side for IT Light, performance app has a high percentage of revenue contribution. So I think going forward, IT Light needs one or two years for improvement and for growth. And we will keep working on this application. And for our main IT app, that's still going to be our main target for elevating our operation, optimize user experience, optimize product, and optimize the product features. So the third question, I'll switch over to Xiaohui, our CCO, to answer the question.
spk07: Hello, everyone. I'm Xiaohui. To answer the third question, what are the future directions for the selection of variety shows and self-produced variety shows? The first one is that due to some bad phenomena such as criminalization, culture, and so on, and the lack of mutual support from fans and so on, it involves Korean-style China China China China China China China China China China China a year-long comedy competition. It is also a comedy artist's show. However, due to its quality and innovative type, it became the number one in online variety shows. iQIYI has thus returned to the number one in variety shows in the market. In the future, we are going to launch many innovative self-produced variety shows, such as opening films, Xiaohui responded to the talent show question.
spk00: So because of the fan culture that's been existing in this entertainment sector for a long time, so it does have some impact on the variety show segment. So for now, the Korean-based or Korean-style talent show, that's prohibited in the video space. But however, there is still a lot of ample room for growth in terms of variety shows. Example, we can focus on the areas for genres that's like comedy, emotional, and also some talent shows. show, but that's not relatively to the Korean style. And we also launched our new comedy variety show called the Super Sketch Show, which is the new content genre that we innovated originally. So based on its first feedback since its launch, we have seen promising user feedback and viewership. from this show. So our variety show performance is back to number one position in the market. So going forward, especially in the fourth quarter, we'll still launch innovative variety show content genre, for example, like we mentioned in the opening remarks, Kaipai Ba Dian Action. That's also an innovative variety show that will be introduced to the users. Thank you.
spk04: Thank you very much.
spk06: Thank you. Once again, due to time constraint, please limit your questions to one at a time. If you wish to have follow-up questions, please rejoin the queue. Please limit your questions to one at a time. Your next question comes from the line of Alicia Yap from Citigroup. Please go ahead.
spk03: Hi, thank you. Hi, thank you. Hi, thank you. What changes will there be? Because recently, the whole Internet surveillance has also changed. So will there be different ideas from our content strategy? For example, the content type, the length and length of the TV series, or some national products, etc. Thanks for taking my question. So my question is related to the overall longer-term outlook for the long-form video industry. Would there be any change of the strategies for your self-developed content? Overall, the content genre and even, for example, the length of the drama series, the type of the genre that you plan to produce. In addition, can long-form video monetization model break out beyond the current membership subscriptions and advertising? If so, what could be the new model? Thank you.
spk08: Okay, this question, if I have time, I can talk for 10 hours. To put it simply, I can only pick some important ones. We are now facing the biggest problem in this industry. If we simplify it into supply and demand, there is a serious shortage of supply and demand content. There are many reasons. First, the pandemic. This is the most direct one. So far, the number of movies on the market is less than half of 2019, or half of the same period. And then, the number of traditional TV shows is less. It's probably one-third of what it used to be. As for new online dramas, in the face of young people, because of the pandemic, because of the review, This is a core issue. Of course, for objective reasons, short videos are often fought over by users. This is also an objective and important reason. The second thing I would like to talk about is the business model. The business model's income method is definitely not the only income method that can become a stable long-term income method in the future. We often say that it is easier to eat than to eat. That is, we invest in the content. We have an IP related to the content. and then develop the IP into a different work form. For example, it used to be a novel, but now it has become a movie, a play, an animation, an animation, a game. Then the IP is authorized to do commercialization, and it has become a toy, a prop, and so on. These comprehensive income, including advertising income, including membership fees directly collected from users, or single-edit broadcast fees, So for right now, I think the biggest problem for the online video space
spk00: is the supply shortage, contributed from various reasons. The first one is, of course, the biggest one, the COVID-19. So for example, the number of movies launched since COVID-19 is only less than half, 50% of 2019 level. And for a traditional satellite TV series, the quantity is only one third of the past. And for the new form of internet series, the web series, we experienced major delay because of the stronger censorship. And even though the content was launched, but the quality was taken a discount, or there's some less promising feedback from the quality. So theoretically speaking, these are the reasons that contributed to the supply shortage for the video content. And also, if you're taking the short-form video reason, that also contributed to this because it's also taking the user time spent. And this is one of the biggest, I guess, factors that contributes. to user behaviors. And for your questions about monetization models, I think we have been working on taking the full process of the entire IP chain. So for example, if we have a good IP, whether it's from the script level, whether it's from the story level, we wanted to take this through the whole entire process of the IP lifecycle. this into TV series, movies, games, also franchise products, et cetera. So I think going forward, if you're looking at the long-term perspective of this industry, a healthy model will be the advertising revenue plus the subscription revenue plus the pivot model all together. is better than our investment level. So that will be our end goal. And we think it's a sustainable model going forward in the long-term prospect of the online video industry.
spk07: Yes.
spk08: There's one thing that we strongly believe in, and it's a key factor, that is, since 126 years ago, the Lumia brothers started playing commercial movies. And then 90 years ago, the recognition technology was born. So far, film and television, including later animated films and documentaries, are all human needs. There is no doubt about that. On the other hand, creative art is a form of human intelligence. So, as long as it is developed and adapted to a certain time in different spaces, it will create content that users love in this space. So, long-time video, which is mainly video content, we think the space of this market is permanent. Okay, so I think if you look at the overall grand picture of the online, or actually the entertainment space, movies started 126 years ago, or about 100 years ago.
spk00: We believe that the consumer demand, the user demand for premium, high-quality premium content is internal. And also, the creative talent for this area is continuous. So all of these, it just needs time to grow the space. So I think for online video space, we believe, we strongly believe there's ample room for growth in the future. It's just now that we are practically adapting ourselves to the new environment to embrace all the changes in the environment. But we think we are the very experienced team with expertise in this industry that will enable us to face all the challenges and be a successful player in the industry.
spk02: Thank you.
spk03: Thank you, everyone.
spk06: Thank you. The next question comes from the line of Thomas Chang from Jefferies. Please, go ahead.
spk01: Good evening. Thank you, Director, for introducing my question. My question is about our overseas strategy. Director just mentioned that we use AI and translation can also be done efficiently. I would like to ask about our strategy overseas. How do we see the competition of different countries? Will our investment overseas grow in the future? Thanks management for taking my questions. I have a question regarding overseas competition. We have just talked about using technology and achieve efficiencies through the translation process. I just want to get some understanding how we think about the competitive landscape in different markets, and will we step up the investment in overseas going forward? Thank you.
spk05: Hello, everyone. I'm Yang Xiangpao. I'm here to answer this question about our overseas strategy. IT doing overseas business is mainly to hope that the content we have developed, produced, and organized in China can be distributed to more countries. Of course, this will also involve some costs related to translation. So we are looking for some regions that are interested in our Chinese content. For example, mainly in Asia, Okay, so our senior vice president in charge of the membership service will answer this question.
spk00: So, for our goal for overseas business, our primary goal is to export our original content to various regions around the world. So, the first situation we'll encounter, of course, is the translation situation and also different regions have different cultures, different backgrounds, so our goal initially was to find countries with similar cultural backgrounds. So, for example, the countries in the Southeast Asia region, and also for North America, because there are a lot of the Chinese folks in that area, so we also introduced some of the content in that region as well.
spk05: So, of course, going forward, we'll continue to
spk00: bring more premium content to the overseas business. And based on our internal data, we know that a lot of our series are very welcomed by the young folks, young audiences in the overseas area region. Thank you. Thank you. Thank you.
spk06: Thank you. Did the time constraint? That was the last question. And I would like to hand the call back to management for any closing remarks.
spk08: No one asked a question. That's what it is. For us, it's a big challenge now. But the current policy releases, we think, are basically over. So the next stage is implementation. We hope that in the next one to two weeks, our implementation will also become stable. And then the second stage, OK, thank you.
spk00: I will summarize our short-term goal and also the long-term goal for our company. So as you guys know that in our opening remarks we mentioned we are facing a lot of challenges in the short-term related to the government regulatory environment. However, we've been proactively adapting ourselves to this to this new environmental situation. So we expect for the next one or two quarters, we think the regulatory environment will become the new norm and be stable. And our main goal going forward first is to reduce our loss, and we will further optimize our content cost based on our industrialized initiatives for video industrialization. Also, we will execute strongly according to our strategy, and we will eliminate or drop the content that doesn't go in line with the policy. At the same time, we will also explore new monetization opportunities. So that's our overall strategy for the short term and also mid to long term. Thank you. So thank you, everyone, for joining us. Feel free to reach out to us if you have any questions, and we'll talk next quarter. Thank you.
spk06: Thank you. Bye-bye. Thank you. That concludes the conference today. Thank you for participating. You may disconnect now. Thank you all.
Disclaimer