36Kr Holdings Inc.

Hello, ladies and gentlemen. Thank you for standing by for 36KR Holdings Incorporated's third quarter 2020 earnings conference call. At this time, all participants are in a listen only mode. After the management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Yolanda Hughes, IR manager of the company. Please go ahead, Yolanda.

Thank you very much. Hello, everyone, and welcome to 36KR Holdings' third quarter 2020 earnings conference call. The company's financial and operational results were released via Newswire services earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our co-chairman and CEO, Mr. Da Gongfeng, Paul, and our CFO, Ms. Ji Hongliang. Ms. Feng will start the call by providing an overview of the company and performance highlights of the quarter in Chinese, followed by English interpretation. Ms. Ji Hongliang will then provide details on the company's financial results before opening the call for questions. Before we continue, Please know that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Legitimation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements as required under the applicable law. Please note that Thursday KR's earnings press release and the conference call include discussions on audited GAAP financial measures as well as on audited non-GAAP financial measures. 36KR's press release contains a reconciliation of the on-audited non-GAAP measures to the on-audited GAAP measures. And please know that all amount numbers are in RMB. I will now turn the call over to our co-chairman and CEO, Mr. Feng. Please go ahead. Thank you.

Hello, everyone. Welcome to the third quarter of our 2020-2021 financial report conference.

Thank you and hello everyone. Thank you for joining us for our third quarter 2020 earnings conference call.

This quarter, despite the ongoing impact of the pandemic and the constant change in the market environment, our basic performance is still very stable. The market is also very satisfied with the main content and service requirements of our business. The third quarter is the second quarter in a row that we achieved a global growth. In the third quarter, our revenue increased by 61% compared to the previous quarter. in our most core platforms and major third-party platforms. With the effective operation strategy, superior content quality and brand influence, our main traffic indicators are growing rapidly. It is worth mentioning that by the end of September, our monthly average PV increased to 5.663 times per month, which is 45.4% in total. This also indicates that our net monthly PV has increased by 10 consecutive seasons, showing our core advantage.

In this quarter, our fundamentals remained solid and the market demand for our business-themed content and services have been quite robust. Despite macro headwinds from residual pandemic effects and the changing market conditions, in the third quarter, we achieved our second consecutive quarter of sequential growth with a 61% increase in revenue compared to the previous quarter. Notably, our user traffic continued to grow rampantly across our core platform and the major third-party platforms during this quarter. Driven by our strong operations, industry-leading content production capabilities, and our stellar brand, many of our key traffic metrics also continue to demonstrate strong growth. In particular, Our average monthly page views for the trailing 12 months surged to a record high of 566.3 million as of the end of September, up 45.4% for a year earlier. This marks our 10th consecutive quarter of PV growth, demonstrating our core capabilities. We continue to strategically expand and diversify our content generation and distribution capabilities, which also maintains strong momentum in Q3. Our focus on growth across a wide spectrum of PGC and UGC offerings is working and increasing our brand recognition. It is worth noting that the proportion of UGC offerings saw a progressive increase, exemplifying our strategic efforts to strengthen our content platform capabilities. We are actively amassing a library of high-quality content while simultaneously enhancing reader engagement across a broader audience base. A total of 115 articles were published on CircusKR's WeChat account, each of which gained a readership of more than 100,000 in Q3, representing a 15% increase from Q2.

The content of this video has brought an increase in the number of viewers. Our live broadcast and short video strategies are also constantly improving, increasing the attractiveness and interest of more users and fans. Along with the page views, our live streaming and short video content initiators have also paved the way for greater engagement

with our rapidly growing audience base. With more diverse demographic appeal, our self-produced video content are gaining traction among younger generations especially, as evidenced by growth on key platforms such as Availability, where we've accumulated nearly 400,000 followers since our first content was published there in May, August. Our user numbers on Douyin were also robust, exceeding 2 million at the end of third quarter.

With the video content becoming more popular with the corporate, government, and personal users, we also strongly explored this daily content form, bringing new strategic opportunities. It is worth noting that in September, we announced strategic cooperation with Youku to jointly promote and produce more high-quality video products. On September 1st, we launched the first joint production program on two platforms.

With the rising trends in video as the preferred format for companies, municipalities, and individuals alike, we have considerably stepped up our efforts to save more opportunities in this fast-growing and popular content format. Most notably, in September, we announced our strategic cooperation with Youku Tudou to actively promote and produce an increasing number of high-profile video products. We debuted our first co-produced program on both platforms on September 1st, covering a variety of emerging financial and industry-specific topics. 此外,在本期度,我们每个月都开展了

Additionally, we hosted more than 200 live streaming events every month

in the third quarter, with themes including finance, career advancement, and the new economy industries. On the heels of these efforts, there has been a gradual increase in the average number of viewers and the average user time spent on our platform stabilized at about 40 minutes. These initiatives to grow our content and maintain a dynamic stream of poignant information are expected to reinforce our leading position in providing new economy-focused content as well as create more monetization channels.

The COVID-19 pandemic has been basically controlled in China, but whether it is ourselves or some of our customers, it has still been affected by the global economic recovery and slowing down. The pandemic has brought challenges, In the wake of the COVID-19 pandemic, while largely eradicated in China,

We along with a part of our clients are still impacted by the subsequent four out here and in other markets with slow economic recovery. Notwithstanding the challenges presented by the pandemic, it is finally encouraging to see new opportunities booming under the new normal in the aftermath of COVID-19. In particular, digital transformation is accelerating across a wider spectrum of traditional industries with its new economy-focused expertise, resources, network, industry-leading content capabilities, and proven track record in the new economy sector. Thirskr is well-versed in supporting the digitalization efforts of enterprises.

With our well-placed strategies, solid executions, and the technology-driven innovations, our operations have witnessed encouraging sequential recovery matrix.

Notably, in third quarter, revenues from our enterprise value-added services increased by 55.7% quarter-over-quarter and nearly 4% year-over-year, demonstrating the fatality and durability of this business segment.

Our current activities are gradually recovering. At the end of August, we have held two summits in Shanghai, the Foreign Supervisory Planner Conference and the 2020 Investment Summit. With offline activities gradually resuming, at the end of August, we held two summits in Shanghai, Y's Super Involver Summit and the 2020 Investor Summit, each accommodating about 1,000 attendees.

In the meanwhile, we provided live streaming of the events on both our core platform and third-party platforms, attracting more than 1 million views.

客户需求也显示出进一步复苏的迹象。 来自于汽车、3C、房地产等行业的客户需求开始回升。 我们也紧紧抓住了这些行业需求反弹带来的机遇。 例如我们利用短视频和直播方式为地产客户打造的体验Lab等产品, 以消费者和专家的体验视角, Encouragingly, customer demand has also shown signs of a further recovery. Client needs from industries including automobiles, 3C, and real estate began to move on.

writing up a focus on these industries. For example, we created a new short video and a live-streaming content for that so-called experiencing lab to evaluate real estate projects from the viewpoint of customers or experts. We also conducted a high-profile marketing campaign for a Green Town project called Anyway, We Are Together reaching a target audience of tens of millions of people We plan to continue to navigate the dynamic environment to uncover more top quality opportunities as more and more industries ramp up recovery.

We are also dedicated to expanding our services to government clients and supporting the digital transformation initiatives

of local municipalities as part of our mission to accelerate the development of China's new economy. To support these efforts, we have established teams in Guangdong, Zhejiang, Jiangsu, Sichuan and Shanxi and will explore more cities that pursue industrial development. For instance, we assist Hangzhou local government to hold the culture and tourism summit in September. Promoting the cohesive development of industries involved in the digital economy. In October this year, we rolled out a new program that leverages our brand assets and resources, expanding the new economy sector to connect enterprises with governments, bridging the organizations in different segments.

Beyond our many initiatives in enterprise services, we've also been strengthening our position in subscription services

built on our compelling content and data access. We have built 18 user communities across the nine key industries, including culture and entertainment, healthcare, business services, e-commerce, smart manufacturing, automobile, education, finance, and new infrastructure. Our subscription services will continue to target individuals and organizations who can stimulate business demand and bring more opportunities for various virus services of our company.

From this point of view, our core foundation is very stable. Our outstanding content service capability brings technical value to our daily user base. We are confident that these innovative and extremely attractive political services will expand our own decentralized channels and at the same time ensure that we will continue to seize the opportunity of the new economic industry that has been developing rapidly in the post-pandemic era. With China's domestic epidemic prevention and control measures in place, Overall, our core fundamentals remain solid. Our exceptional content capabilities continuously adds value to our ever-broadening user base. We are confident that

Our innovative and attractive value-added services position us well with the booming new economy communities, especially in the post-pandemic era. As we work to broaden our monetization models, with COVID-19 containment measures gradually relaxed in China and most offline activities returning to more normal levels, we believe our leverage in online and offline capabilities as well as in our permanent content and data analytic capabilities will further strengthen customer satisfaction and engagement in our value-added services, and will support us to save more growth opportunities in the field of enterprise value-added services.

Lastly, I'd like to speak of our overseas business. We continue to make positive progress in our overseas operations, increase high-quality content offerings, and meaningful traffic growth.

We officially introduced Oasis cross-border KOL community based in Southeast Asia region which will nurture stable and quality UGC offerings to support our long-term growth strategy. In conclusion, we will continue to pursue our strategy to boost the diversify of our product and service offerings, showing on our unique core strength in serving the needs of new economy companies. We are confident in our ability to overcome the short-term challenges brought by the pandemic and the step-up of efforts to make greater breakthroughs in the post-pandemic era and deliver long-term value for all our stakeholders. With that, I will now turn the call over to our CFO, Ms. Liang, who will discuss our key financial results.

Thank you, Mr. Feng, and hello, everyone. As helped by the challenging operating environment, Our third quarter financial performance experienced a meaningful improvement on a quarter-over-quarter basis. This is a testament to the resilient market demand for our products and services. Nevertheless, total revenues in this quarter slightly decreased year-over-year, largely attributable to a lingering effect related to COVID-19. We achieved positive operating cash flow for the second conservative quarter, which reflects our ability to navigate market dynamics. In addition, our account receivables continued the improving trend thanks to our adjusted policies to implement strict prepayments and optimize client base for better quality. We continued prudent investment in technologies that are critical for further innovations and further growth. Our performance allowed us to remain committed to the promising future of the new economy and we believe our competitive advantages will help us to withstand challenges, and thrive in the community with our partners. We are confident that our content strengths and strategy initiatives will position us well in tackling market uncertainties in the wake of the COVID-19 and capture more return when the environment turns better. Now I'd like to walk you through more details on the third quarter of 2020 financial results. Total revenues were R&B 123.5 million in third quarter of 2020 compared to 130.9 million in the same period of 2019. Online advertising services revenues decreased by 5.5% to 51.1 million in the third quarter of 2020 from 54.1 million in the same period of 2019. The decrease was primarily attributable to the relatively weak demand from certain advertisers in wake of the COVID-19. Enterprise value-added services revenues increased by 3.8% to $66.4 million in the third quarter of 2020 from $64 billion in the same period of 2019. The increase was primarily attributable to the recovering demands from certain enterprise value-added services customers. Subscription services revenues were 6 million in third quarter of 2020 compared to 12.9 million in the same period of 2019. The decrease was primarily attributable to the decrease of individual subscription revenues associated with relatively weak demand. Cost of revenues was 76.6 million in the third quarter of 2020 compared to $75.8 million in the same period of 2019. Growth profit was $46.8 million in the third quarter of 2020 compared to $55.1 million in same period of 2019. Operating expenses was $63.2 million in the third quarter of 2020 compared to $77.9 million in same period of 2019. The decrease was mainly due to the decrease in general and administrative expenses in third quarter of 2020. Sales and marketing expenses were $31.6 million in the third quarter of 2020 compared to $31.8 million in the same period of 2019. The decrease was primarily attributable to the decrease of payroll-related expenses, partially offset by the increase of share-based compensation expenses. General and administrative expenses decreased by 45.3% to $20.5 million in the third quarter of 2020, compared to $37.4 million in the same period of 2019. The decrease was primarily attributable to the decrease of the share-based compensation expenses partially offset by the increase of the professional fees. Research and development expenses increased by 28.6% to $12.2 million in the third quarter of 2020 compared to $8.7 million in the same period of the 2019. The increase was primarily attributable to the increase in technology expenses related to technology procurement, device maintenance, and testing. Share-based compensation expenses recognized in cost of revenues, sales and marketing expenses, research and development expenses, and general and administrative expenses in total were $4.6 million in the third quarter of 2020 and $25.8 million in same period of 2019. Other income was $2.5 million in the third quarter of 2020 compared to $12.8 million that included an income $12.5 million from the realized deposit gain associated with the overseas business investment in the same period of 2019. Income tax expenses were $21,000 in the third quarter of 2020 compared to $2.4 million in the same period of 2019. Net loss was $14 million in the third quarter of 2020 compared to $12.4 million in the same period of 2019. Non-GAAP adjusted net loss was $9.3 million in the third quarter of 2020 compared to non-GAAP adjusted net comp $13.4 million in the same period of 2019. net loss attributable to 36 KR Holdings, Incorporated's ordinary shareholders of 14 million in the third quarter of 2020, compared to 635.6 million in the same period of 2019, which included the Association of Unredeemable and Controlling of accretion and redesignation effects of the convertible with nimble preferred shares. Basic and the diluted net loss per share were both 0.014 in the third quarter of 2020 compared to 2.535 in the same period of 2019. As of the December 30th, 2020, The company had cash and cash equivalents, restricted cash and short-term investments of $199 million compared to $294.2 million of December 31, 2019. To be mindful of the length of our earnings call for the first nine months of 2020 financial results, I will encourage listeners to refer to our earnings press release for further details. This concludes all our prepared remarks today. We will now open the call to questions. Operator, please go ahead.

Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the pound or hash key. For the benefit of all participants on today's call, if you wish to ask your question to the company's management in Chinese, please immediately repeat your question in English. Once again, if you wish to ask a question, you may press star and the number one on your telephone keypad. Your first question comes from the line of IVG. of Credit Suisse. Please ask your question.

Thanks management for taking my questions. I'm asking on behalf of Kenneth. I just wanted to ask about our advertising business. Can management share with us first the ad demand recovery trend by Vertigo in the third quarter and also the overall ad demand outlook into the fourth quarter and early 2021? Thanks. Hello.

Thank you. China's advertising business should be able to see that we are recovering faster than last quarter. Of course, our last quarter also showed an increase compared to Q1. Our Q3 increased by 63% compared to the second quarter. Last quarter, the increase was 48.9%. Last year, the increase was 21%. In the first half of the year, the impact of the pandemic should be said to be As we have shared before, some of our cross-border companies' customers have delayed their advertising. In the third quarter, many companies have resumed their advertising. We think that the industry that has resumed its advertising is the car industry and the business industry. If we look at it from the point of view of the company, we can see that the customer's advertising on the Q3 of the car and the real estate industry has increased significantly compared to the first half of the year. From the situation we have observed in the three quarters, Advertising, online activities, and online training are all recovering quickly. We think the fourth quarter should continue this trend. From the perspective of the industry, in the first three quarters, those who directly benefited from the epidemic should be, for example, the cultural industry, cultural media, and e-commerce. These are all rising in our market. Then replace the slightly stressful, for example, car and financial customers, which has become the top five customer industries in our advertising division. In addition, customers in consumer life should say that the improvement is still very fast. And then especially I think it's more worth paying attention to is our Internet customers. It reflects this kind of willfulness under the epidemic. Willfulness is very significant. And then the rise of other brands. This trend is also very significant. We believe that in the above is such a trend in the first three seasons. I think the next one should still be in this so-called Chinese economy. Double cycle, rapid transformation, fast growth, etc. Under the red crown trend, we will still think that this trend will be further released. At the same time, we have noticed that the recovery of domestic commercial vehicle data, the stimulation of car consumption policy, and the economic policy related to the Hongguan, for example, it is more likely to be under such a Hongguan policy. We believe that the car and financial industry, which is currently under a little pressure, will recover soon. Of course, what we are talking about is the situation of the epidemic department such as Q4 to Q1 next year. We believe that Thanks, Abby, and thanks, Kenneth. And I think it's a long answer. I will do a quick translation for recovery in Q3 and also our outlook for Q4 and maybe early next year.

So for the advertisement, demand recovery, in this quarter, we see this quarter have seen a more rapid recovery for our advertisement segment with 63% quarter-to-quarter growth and compared to Q2 with 48.9% quarter-to-quarter growth. And compared to the same period in last year, we achieved 21% quarter-to-quarter growth. Also, we can see some of our multinational clients, which they delayed their budget in the first half of the year due to the impact of the pandemic, resumed their advertising on our platforms in this quarter. And the most significant recovery were witnessed from automobile and hardware industries. And especially among domestic brands, we noted that automobile and real estate have experienced the strongest recovery. So this is what we observed in this quarter. And as we can see in this quarter, our online advertisements, offline events, and offline trainings have been continuously recovering, which we believe will continue into the next quarter. And getting a bit more color on the breakdown of different industries, for example, entertainment and media and e-commerce. both of which are sectors enjoying benefits from the stay-at-home lifestyle in the COVID-19 pandemic, improved their ranking to the top five industries in our advertiser base at the end of this quarter. Instead, automobile and finance were replaced, which are under short-term pressure, we believe, And consumer sector is another rapidly increasing industry for advertisement on our platform. Also, we want to mention that we've seen the resilience of TMT companies and the rise of domestic brands in first three quarters. We believe these trends will continue. in next quarter. At the same time, we believe the demand from automobile and financial sectors will start to recover, supported by macro-level favorable policies. But of course, everything is under the assumption that there is no second wave of COVID-19 outbreak in mainland China. So that's what we think. Thank you, Abby. Thank you.

Your next question comes from the line of Vincent D. of Needham and Company. Please ask your question.

Thank you for your question. I have two questions. The first question is about the expenditure. We see that our expenditure cost has decreased a lot. This quarter, the margin has reached $38. I want to ask how the future of the margin looks like? How is the trend? When will the margin recover to the level of 2019? The second question is about our offline business. We now think Thank you, management, for taking my question. I have two questions. One is on the cost side. We have seen we are decreasing costs and giving the margin is already 34% in this quarter. Any comments on the margins and the trends? And when will we... I recovered to the 2019 level. My second question is on the offline events, on any visibility on whether hosting offline events is possible in the next few quarters, particularly in the fourth quarter. Thank you.

Okay, thank you. In fact, we have had a significant improvement compared to last quarter. The main reason is that our revenue compared to the previous quarter, which had a significant growth of more than 60%. At the same time, our fixed cost has been declining. Our income is rising, and our cost is declining. Of course, this has led to an increase in our interest rate. Another thing is that, in our three major businesses, the interest rate has been relatively low. In this area, the interest rate has been declining. These are the reasons that have led to an increase in our interest rate. Next, let's take a look at Q4's current activities. We will hold an international meeting in Beijing on December 8th and 9th this year. We will hold the largest economic development conference of the year, the White Star Economic Development Conference. We will cover more content this year. There will be a very strong guest lineup that everyone will be very interested in. It is also the 10th anniversary of our 36th anniversary. It should be our birthday party. Welcome everyone to take a look. Thanks, Vance. I will do a quick translation. First, for your question regarding our GAP margin, I think as we can see, our GAP margin

in the first three quarters of this year compared to the same period last year, slightly increased. And we think this benefit, first of all, our revenue of the quarter-to-quarter increased over 60%. And the second reason we think is because the fixed cost, which means that our content production cost is controlled pretty good and have the quarter to quarter decrease as we can see and the third reason will thanks to our revenue structure actually as we can see the enterprise value added services contributed slightly lower than the previous quarter and maybe in the first half so that we can see because the GP margin for Enterprise Value Added Services is relatively low compared to our online advertisement and subscription services. So when it has achieved the quarter-to-quarter decrease, we can see that the whole structure has been improved. So that's for your first question. for our offline events and we'll feel very excited to tell everyone that our flagship event-wise conference will be held in Beijing from December 8th to 10th this year as scheduled. And for this year we will cover even more industry topics and we have a very strong speaker lineup. And it happens to be the 10th anniversary since we launched our website. So, it will be a grand scale event welcoming all 36 KR fans join us. And so, but as we mentioned, these are still under the assumption there is no second outbreak of COVID-19. So, thank you, Vince, for the question.

Thank you.

Your next question comes from the line of Shan Zhao of CICC. Please ask your question.

Thank you, Ms. Guan. And just now, Ms. Guan, you also talked about a strategy about video content. I just want to ask, in the context of video content, how is the progress of this new product? For example, regarding live broadcast and video content, I don't know if I can share more details and how we can look forward to the future. I will translate it quickly here. Thanks, management, for taking my question. My question is about what is the progress of new products development in the third quarter relating to live streaming and short video on the content and video chain? And how do you look forward to the fourth quarter?

Okay, thank you. As we have just talked about, the flow of the whole network has been increasing in the last ten months. We have always believed that our content and flow should be and other business models. Based on this, the flow of the platform will influence us. How can we continue to improve the content and flow in the future? There are several main thoughts. We must continue to enhance our platform. On the one hand, we must not give up our platform's original advantages and capabilities. At the same time, we must continue to increase the number of our games and improve our platform. The second is that we want to build a deeper strategic cooperation relationship with more content platforms or channel platforms. We even noticed that there are some content platforms that are not understood by everyone. They may be some financial platforms, trading platforms, or online platforms. We also want to build a deeper strategic cooperation with them. The third point is that we have to constantly catch up with the new content form, including the short video form and the live form we mentioned earlier. It should be said that today's readers and today's users are more and more fond of this new content method. From this year onwards, we have been continuously trying these methods, and we are very happy to see that the content of the 36 classes has been received by such young users, and such new content forms have been brought up. We should be very happy to receive their welcome. We will make these a direction for us. Thank you.

As we can see, our monthly page views has continuously increasing and our content in virus front, virus forums are welcomed on different platforms. So, we think, first of all, this, well, thanks to our of content capability, which is continuously strengthening. And the second one we will see, we will find and explore more strategic collaboration opportunities and even some other platforms that we didn't think about before, but we think these strategic collaborations will bring us to more and more opportunities both in our internet traffic but also for our monetization capabilities. And third, we're still exploring more opportunities in different content formats. For example, as I mentioned in the earlier remarks, that our video form content on the top tier platforms have attracted larger and larger viewerships on different platforms such as and the top tier platforms. So with all these three strategies, we believe we'll continuously strengthen our leading position in the content business. So this is what we want to share on our new product and especially on our content. Thank you. Thank you very much. Sorry, maybe Mr. Feng will want to add some more points.

Yes, you just mentioned some examples. I would like to share them with you. We have been working on Bilibili since August. It's not a natural, well-designed developer. How can it become such a short-lived developer? We've been working on it for a while. Today, we are constantly looking at all the platforms. Bilibili is not the same as Douyin. It's not the same as Tifa. It's not the same as Quasar. We are constantly exploring the content of each platform. What is his tone? What is his angle? What is his favorite voice? We are exploring in the process. Then we are very happy. It should be said that this kind of data is still good. We have also talked about this kind of data just now. In the past few months, we have reached nearly three million in total on the German platform. Then we have also gained nearly 400,000 on this website. It should be said that it is not so difficult to collect funds on the website. Then we are very happy to actually achieve such a We also see that we have more than 200 live broadcasts every month. We are happy to see that the live broadcast market has exceeded 40 minutes. This is a very rare data. For example, our cooperation with Zhuxin and Danjie, these live broadcasts have very good data. I think Mr. Fong just adds some more solid examples in terms of our content capabilities. I think many people will just

agreed that 6K ART has a living strength in the text and picture content in the past several years. But now from this year we started to cover more video form content, but we still maintain this living position as a content provider. For example, our fence on BiloBili accumulated over 300,000 fences on BiloBili and for our Douyin fence, we have seen nearly 3 million there on Douyin from different accounts of Circus KR. Well, let's say this one, on the one hand, we will give credit to our proven content capabilities, and at the same time, we will give thanks to our diversified operational strategies on different distribution platforms, especially in terms of this newly formed content, such as short videos, as well as the live streaming content. And maybe as I mentioned, our live streaming content on our self-owned platforms has very good performance. For example, the average viewership as well as the average user spend time are both increasing on our own platforms. And the very famous IP, now become popular IPs such as 36K ArtLife and other co-produced programs with, for example, Fittik Press and Danjie made good performance as well in the viewership on our platform. So that gives us the confidence. that we can still maintain our living position as a content provider. Thank you. Thank you, Doshan, for this question.

Once again, if you wish to ask a question, it's star and the number one on your telephone keypad. Your next question comes from the line of Brian Lee of AMTD Group. Please ask your question.

Let me translate quickly. We noted that your account receivable declined substantially. So, can you share with us more details on the improvement you have done in this area, this quarter? Thanks.

Thank you, Professor. It's true that we are very happy to see a big improvement in revenue in the third quarter. Until 930, our revenue decreased by 7,300 million compared to 630. It should be said that this is the second time in history that revenue has decreased in two quarters in a row. In addition, we are very happy to see that when we were in the first two quarters, Thanks Brian for your question and the quick translation. Regarding our improvement on our account receivables, our account receivables improved greatly in this quarter.

As of the date of September 10th, 13th, and the balance of the accounts receivable decreased by 73 million in RMB compared to the balance at the date of the end of June, which shows sequential decrease for two consecutive quarters. The settlements in Q3 partly offset the allowance for redoubtable accounts in the first half of this year, so that's why just lead to this result. And actually, this is the question we really want to take, maybe many people are concerned about. Thanks, Brian, again.

As there are no further questions, now I would like to turn the call back over to the company for the closing remarks.

Okay. As there are no further questions, now I would like to turn the call back over to the measurement and thank you again for joining us today. If you have further questions, please feel free to contact 36KR's investor relations through the contact information provided on our website or the TPG investor relations. And thank you all again for joining us today.

This concludes today's conference call. You may now disconnect your lines. Thank you.