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spk02: Hello, ladies and gentlemen. Thank you for standing by for Li Zhiying's third quarter 2023 earnings conference call. Please note, all participants are in listen-only mode now, and today's conference call is being recorded. I'll now turn the call over to your host, Effie Kong, head of capital markets for the company. Please go ahead.
spk03: Thank you very much. Hello, everyone, and welcome to Li Zhi Inc's third quarter 2023 earnings conference call. We released our financial and operating results via Newswire services earlier today, and they are available online. Participants on today's call will include our founder and CEO, Mr. Marco Lai, and our acting CFO, Ms. Chen Fanglu. Management will begin with prepared remarks. Introducing Business Development and Financial Performance in the Third Quarter. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on the IR section of our website at ir.leach.fm. Before we continue, please note that today's discussions will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements technically contain words such as may, will, expect, target, estimate, intend, believe, potential, continue, or other similar expressions. Forward-looking statements involving heavy risks and uncertainties The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, many of which factors are beyond our control. The company, its affiliates, advisors, representatives, and underwriters do not undertake any obligation to update this forward-looking information, except as required under the applicable law. Please also note that Li Zhi's earnings press release and this conference call include discussions of unaudited gap financial measures as well as unaudited non-gap financial measures. Please refer to Li Zhi's earnings press release for reconciliation of unaudited non-gap measures to unaudited gap measures. I will now turn the call over to our founder and CEO, Mr. Marco Lai. Please go ahead.
spk04: Hello, everyone. Thank you for attending Leeds' third quarter conference in 2023.
spk03: Hello, everyone. Thank you for joining Leeds' third quarter 2023 earnings conference call.
spk04: In the third quarter of 2023, Leeds will continue to deepen its global development strategy, using long-term technology reserves continue to improve domestic business innovation, steadily promote the development of globalized business, and construct a diversified business ecosystem. In the third quarter, our total revenue was 4.25 billion RMB. The overall mobile end average monthly living user number was 42.1 million. The monthly total paid user number was 40.26 million. Despite the many challenges facing the macroeconomic environment, we have always been steadfast in our long-term development direction. In this quarter, we will continue to fight for efficiency, aiming to improve the efficiency and flexibility of the organization, and at the same time promote the construction of globalized capabilities to better support the development of diversified business.
spk03: In the third quarter of 2023, we further strengthened the execution of our online audio-centric globalization strategy, leveraging our long-term technological assets. We consistently empowered the domestic business innovation while steadily advancing our global business, fostering a vibrant and diversified ecosystem. In the third quarter of 2023, our revenue reached RMB 425 million. Our total average mobile MAUs amounted to 42.1 million, and our average monthly paying users totaled 402.6 thousand. Despite macro halvings, we steadfastly pursued the course we had charted, reinforcing our commitment to our long-term vision. During the quarter, we continue to reduce costs and increase operating efficiency to improve organizational efficiency and agility while also reinforcing our globalization capabilities to better support the development of our diverse spectrum of businesses. Now let me go over our business developments during the third quarter.
spk04: In the audio and video entertainment business, we focus on creating a healthy and sustainable product ecosystem. By continuing to optimize operation strategies, improving content creators' expansion and energy-saving mechanism, and increasing the size and quantity of creators, we can enhance the competitiveness of platforms. In addition to continuously optimizing the content creators' platforms, we launched events such as the Starlight Challenge, which provided support to the content creators of the Central Committee and encouraged the content creators of the Headquarters to help the content creators show their unique voice.
spk03: In terms of our audio entertainment business, we remain committed to building a healthy and sustainable product ecosystem. Through proactive optimization of our operating strategies and meticulous refinement of our mechanisms for expanding and nurturing our content creator base, we have enhanced the creator quality and increased the scale of our creator base while also solidifying our platform's competitive edges. During the quarter, in addition to the continuous optimization of our content creator platform, we launched the Starlight Challenge, a strategic initiative designed to cultivate mid- and long-tail content creators and motivate our top tier contributors This program empowers content creators to showcase their distinctive vocal talents, further unlocking their creative potential, while also elevating the platform's appeal to the content creator community.
spk04: In addition, through the expansion of the content category and the trend improvement experience of product innovation, we can attract more high-quality user groups In this quarter, we launched multiple selection modules based on user preferences, enriching content, and providing users with more diversified content. In addition, based on the characteristics of the platform, we continued to update and update product design, develop new product functions and interactive tools, and combine the applications of previous technologies to launch innovative audio and video entertainment playlists.
spk03: In addition, we strive to improve the user experience and attract more high-quality users through enriched content offerings and product innovations. During the quarter, based on user preferences, we added a suite of carefully curated modules to enrich our content genres. providing our users with more diverse and engaging content options. Furthermore, we continue to iterate our product design and cultivate new product features and engagement tools, harnessing cutting-edge technologies to introduce innovative audio-based interaction experiences. We sustain active user participation through a diverse array of marketing programs and themed events, augmenting both user stickiness and engagement.
spk04: In terms of global innovation, we try to create a new generation of social media products, and combine the features of multi-faceted real-time AIGC to continuously optimize the functionality of the product, through the innovation of front-end technology, to better meet the needs of users. At the same time, we also strive to enhance the network effect of the product, improve user participation, and promote the natural growth of user size. In terms of organizational capabilities, in addition to continuously improving product operations and other localization capabilities, we have established a multi-team product innovation mechanism to improve the productivity of innovation. In the future, we will continue to expand the overseas market, strengthen the construction of global capabilities, and accelerate global deployment.
spk03: As for our global innovative business, we are deeply invested in delighting our users with next-generation social networking products. By integrating advanced features including cross-device functionality, real-time capabilities, AIGC technologies, and more, we continue to refine our product's interface and functionality. We leverage advanced technologies to empower product innovation catering to diverse user needs Meanwhile, we endeavor to improve user engagement by enhancing the network effect of our offerings, thereby fostering organic user growth. Organizational-wise, as we continue to boost our localization capabilities across product development, operations, and other key areas, we have also taken a collaborative cross-team approach to product innovation, to increase innovative productivity. Moving forward, we will continue developing international markets, reinforcing globalization capabilities, and ultimately accelerating the expansion of our global footprint.
spk04: In terms of technology development, we continue to strengthen the self-reliance capability of core technologies. to provide more customized support for products, to promote product innovation, and to help globalize business development. In terms of the layout of innovative business, we continue to deepen the integration and construction of AIGC's technical capabilities in multi-mode, based on emotion-enhancing model training, and the optimization of algorithm. We continue to strengthen the reserves of AI technical capabilities, and provide more possibilities for product innovation. In terms of sound technology, we are constantly improving the ASR, which is the stability and performance of TTS and sound transfer, so that it can adapt to the application of many scenarios. In terms of AI transformation technology, we have also achieved breakthrough progress, and the better integration with the self-proclaimed RTC internship audio and video technology platform, DoReMi, has been achieved. At the same time, we have continuously improved the information transmission quality of the IMTC voice communication platform, Word.x, to provide high-performance, low-resolution, and customizable digital communication support for our business. In addition, in terms of general platform construction, we have further optimized the AI data analysis and data management system, and applied AI technology to market marketing and other areas to effectively promote overall business efficiency. Overall, we believe that technical ability is the basis for business development. With respect to technological advancement, we continue to strengthen our R&D capabilities to provide more customized product support. This in turn empowers product innovation
spk03: and drives progress across our global business. We have also consistently deepened the integration and development of multi-model AIGC technologies into our innovative business framework. Through emotionally enhanced model training and algorithm optimization, we are fortifying our AI assets, unlocking vast opportunities for ongoing product innovation. On voice technologies, we have been consistently constantly improving the stability and performance of automatic speech recognition and text-to-speech ASR and TTS for both Chinese and English languages, adapting them for diverse scenarios. We have also achieved breakthroughs in AI voice-changing technology, including a seamless integration to .REME, our in-house RTC platform for real-time audio and video streaming, In the meantime, we further enhanced the quality of information transmission on our IAM platform, Vodax, empowering our business with high performance, low latency, and scalable customized instant messaging capabilities. In terms of our versatile technology platform construction, we further improved the data analytics and data management systems and applied AI technology to marketing and other fields Collectively, these initiatives have improved overall operating efficiency. In general, we believe technological advancements are the cornerstone of business development. We remain committed to pursuing industry-leading technological standards and continually fortifying our core technological capabilities to empower the business development.
spk04: In the last month, our company has been selected for five consecutive years as one of the top 100 corporate bonds issued by the Chinese Internet Association. This also means that the association and the industry recognize the comprehensive capabilities of the group. In the future, even though the public environment is still challenging, we will do our best to actively adjust the business strategy to create a competitive business ecosystem and continue to enhance core technical capabilities, and fully deepen the application of AIGC and AI cloud technology in all businesses. At the same time, we will also carry out detailed operations to improve the efficiency of resource configuration, and add more motivation to the company's long-term sustainable development.
spk03: We are delighted to announce that last month, the company was lauded as one of China's top 100 internet companies by the Internet Society of China. This marks the fifth consecutive year that we have received this honor, representing powerful recognition of our comprehensive capabilities by the Internet Society of China and the broader industry. Going forward, despite the macro challenges we will spare no effort in proactively refining our business strategies and building a more competitive ecosystem. We will continue to improve our core technology capabilities while also adopting and more deeply integrating AIGC and voice AI technologies throughout the business. Meanwhile, we will further streamline our operations and improve the effectiveness of resource allocation
spk04: propelling the company's long-term sustainable development with fresh momentum.
spk03: Thank you all. With that, I will now turn the call over to our Acting CFO, Ms. Chengfang Lu, who will discuss our financial results in more detail.
spk01: Thank you, Marco, and hello, everyone. Online revenues in the third quarter of 2023 will be RMB 425.1 million. Despite the complex backdrop and market uncertainties that persisted, we remain steadfast in strengthening our core competitive list through technological innovation during the quarter. Moving forward, we remain committed to further enhancing organizational efficiency, developing globalization capability, and enhancing overall agility. positioning us to deliver enduring value to our stakeholders. Now, I'd like to provide a brief overview of our financial results for the third quarter of 2023. In this quarter, our total net revenues will be $425.1 million, compared with $565.2 million in the same period of last year, primarily due to the decline in average paying users and users spending on our audio entertainment products. Cost of revenue was RMB 317.3 million in this quarter, compared with RMB 376.2 million in the same period of last year, mainly attributable to the decreased revenue share fees, share-based compensation expenses, payment handling costs, and other miscellaneous costs. Gross profit was RMB 107.8 million in the third quarter of 2033. compared with RMB 189.1 million in the same period of last year. Long-gap gross profit was RMB 107.9 million in this quarter compared with RMB 190.8 million in the same period of last year. Gross margin in this quarter of 2023 was 25 compared with 33% in the same period of last year. Long-gap gross margin in this quarter was 25%, compared with 34% in the same period of last year. Operating expenses were RMB 167.9 million in the third quarter of 2023, compared with RMB 176.6 million in the same period of last year. Research and development expenses were RMB 83.8 million in the third quarter of 2023, representing an increase of 7% year over year. primarily due to the increased salary and welfare benefits expenses related to increased severance pay to optimize the R&D efficiency, partially offset by the decreased expenses related to research and development services provided by third parties. Selling and marketing expenses were RMB 59.1 million in this quarter, compared with RMB 71.2 million in the same period of last year. primarily attributable to decreased branding and marketing expenses. The company will monitor its discretionary advertising and promotion expenses and adjust accordingly depending on marketing conditions. General and administrative expenses were RMB 25.1 million in the third quarter of 2023, compared with RMB 27.1 million in the same period of last year. Many driven by decreased professional service fees provided by third parties, provision for litigation contingencies, and other miscellaneous expenses. Operating loss was RMB 60.1 million in the third quarter of 2023, compared with operating income of RMB 12.5 million in the same period of last year. Long-gap operating loss was RMB 55 million in this quarter, compared with long-gap operating income of RMB 20.2 million in the same period of last year. Other expenses were RMB 5.9 million in the third quarter of 2023, compared with other income of RMB 1.7 million in the same period of last year, mainly attributable to the remuneration fees to the depository bank in relation to the ratio change of ADF on September 20, 2023. Net loss was RMB 62 million in the third quarter of 2023. compared with net income of RMB 19.82 million in the same period of last year. Non-GAAP net loss was RMB 56.7 million in this quarter, compared with non-GAAP net income of RMB 27.5 million in the same period of last year. Basic and diluted net loss per ADS were both 11.01 in the third quarter of 2023. compared with basic and diluting land income of RMB 3.81 and 3.79 per ADS in the same period of last year. Long-gap basic and diluting land loss per ADS were both RMB 10.07 in the third quarter of 2023, compared with long-gap basic and diluting land income of RMB 5.29 and 5.26 per ADS in the same period of last year. As of September 13th, 2023, we had cash and cash equivalents and restricted cash of RMB $615.8 million. Okay, this concludes all of our prepared remarks. Thank you once again for joining us today. If you have further questions, please feel free to contact Leeds Investor Relations through the contact information provided on our website, ir.leeds.fm, or Pyeongchang Financial Communications.
spk02: Thank you. This concludes the conference call. You may now disconnect your line. Thank you. Have a good day. Music. Bye. Thank you. music music Bye. you Thank you. Hello, ladies and gentlemen. Thank you for standing by for Li Zhiying's third quarter 2023 earnings conference call. Please note, all participants are in listen-only mode now, and today's conference call is being recorded. I'll now turn the call over to your host, Effie Kong, head of capital markets for the company. Please go ahead.
spk03: Thank you very much. Hello, everyone, and welcome to Li Zhi Inc's third quarter 2023 earnings conference call. We released our financial and operating results via Newswire services earlier today, and they are available online. Participants on today's call will include our founder and CEO, Mr. Marco Lai, and our acting CFO, Ms. Chen Fanglu. Management will begin with prepared remarks. Introducing Business Development and Financial Performance in the Third Quarter. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on the IR section of our website at ir.leach.fm. Before we continue, please note that today's discussions will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements technically contain words such as may, will, expect, target, estimate, intend, believe, potential, continue, or other similar expressions. Forward-looking statements involving heavy risks and uncertainties the accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, many of which factors are beyond our control. The company, its affiliates, advisors, representatives, and underwriters do not undertake any obligation to update this forward-looking information, except as required under the applicable law. Please also note that Li Zhi's earnings press release and this conference call include discussions of unaudited gap financial measures as well as unaudited non-gap financial measures. Please refer to Li Zhi's earnings press release for reconciliation of unaudited non-gap measures to unaudited gap measures. I will now turn the call over to our founder and CEO, Mr. Marco Lai. Please go ahead.
spk04: Hello, everyone. Thank you for attending Leeds' third quarter conference.
spk03: Hello, everyone. Thank you for joining Leeds Inc's third quarter 2023 earnings conference call.
spk04: In the third quarter of 2023, Leeds continues to deepen its global development strategy, using long-term technology reserves continue to improve domestic business innovation, steadily promote the development of globalized business, and construct a diversified business ecosystem. In the third quarter, our total revenue was 4.25 billion yuan. The overall mobile end average monthly living user number was 42.1 million. The monthly total paid user number was 40.26 million. Despite the many challenges facing the macroeconomic environment, we are steadfast in our long-term development direction. In this quarter, we will continue to fight for efficiency and strive to improve the efficiency and flexibility of the organization, while promoting the construction of globalized capabilities to better support the development of diversified business.
spk03: In the third quarter of 2023, we further strengthened the execution of our online audio-centric globalization strategy, leveraging our long-term technological assets. We consistently empowered the domestic business innovation while steadily advancing our global business, fostering a vibrant and diversified ecosystem. In the third quarter of 2023, our revenue reached RMB 425 million. Our total average mobile MAUs amounted to 42.1 million, and our average monthly paying users totaled 402.6 thousand. Despite macro halvings, we steadfastly pursued the course we had charted, reinforcing our commitment to our long-term vision During the quarter, we continue to reduce costs and increase operating efficiency to improve organizational efficiency and agility, while also reinforcing our globalization capabilities to better support the development of our diverse spectrum of businesses. Now let me go over our business developments during the third quarter.
spk04: In the audio and video entertainment business, we focus on creating a healthy and sustainable product ecosystem. By continuing to optimize operation strategies, improving content creators' expansion and energy-saving mechanism, and increasing the size and quantity of creators, we can enhance the competitiveness of platforms. In addition to continuously optimizing the content creators' platforms, we launched events such as the Starlight Challenge, which gave support to the content creators of the Central Committee, and gave encouragement to the content creators of the Headquarters, and helped the content creators to show their unique voice.
spk03: In terms of our audio entertainment business, we remain committed to building a healthy and sustainable product ecosystem. Through proactive optimization of our operating strategies and meticulous refinement of our mechanisms for expanding and nurturing our content creator base, we have enhanced the creator quality and increased the scale of our creator base while also solidifying our platform's competitive edges. During the quarter, in addition to the continuous optimization of our content creator platform, we launched the Starlight Challenge, a strategic initiative designed to cultivate mid- and long-tail content creators and motivate our top tier contributors This program empowers content creators to showcase their distinctive vocal talents, further unlocking their creative potential, while also elevating the platform's appeal to the content creator community.
spk04: In addition, we use the expansion of content and the trend of product innovation to improve user experience, attract more high-quality user groups, In this quarter, based on the users' preferences, we have launched multiple selection modules to enrich the content and provide users with more diversified content. In addition, based on the characteristics of the platform, we continue to update and update product design, develop new product functions and interactive tools, and combine the applications of previous technologies to launch innovative audio and video entertainment playlists.
spk03: In addition, we strive to improve the user experience and attract more high-quality users through enriched content offerings and product innovations. During the quarter, based on user preferences, we added a suite of carefully curated modules to enrich our content genres. providing our users with more diverse and engaging content options. Furthermore, we continue to iterate our product design and cultivate new product features and engagement tools, harnessing cutting-edge technologies to introduce innovative audio-based interaction experiences. We sustain active user participation through a diverse array of marketing programs and themed events, augmenting both user stickiness and engagement.
spk04: In terms of global innovation, we try to create new generation of social media products, and combine the features of multi-faceted, real-time AIGC to continuously optimize the functionality of the product, through the innovation of the front-end technology, to better meet the needs of users. At the same time, we also strive to enhance the network effect of the product, to increase the participation of users, to promote the natural growth of user size, In terms of organizational capabilities, in addition to continuously improving product operations and other localization capabilities, we have established a product innovation mechanism for multiple teams to improve the productivity of innovation. In the future, we will continue to expand the overseas market, strengthen the construction of global capabilities, and accelerate global deployment.
spk03: As for our global innovative business, we are deeply invested in delighting our users with next-generation social networking products. By integrating advanced features including cross-device functionality, real-time capabilities, AIGC technologies, and more, we continue to refine our product's interface and functionality. We leverage advanced technologies to empower product innovation catering to diverse user needs Meanwhile, we endeavor to improve user engagement by enhancing the network effect of our offerings, thereby fostering organic user growth. Organizational-wise, as we continue to boost our localization capabilities across product development, operations, and other key areas, we have also taken a collaborative cross-team approach to product innovation to increase innovative productivity. Moving forward, we will continue developing international markets, reinforcing globalization capabilities, and ultimately accelerating the expansion of our global footprint.
spk04: In terms of technology development, we continue to strengthen the self-reliance capability of core technology. to provide more customized support for products, and to support the development of globalized business. In terms of the layout of innovative business, we continue to deepen the integration and construction of AIGC's technical capabilities, based on emotion-enhancing model training and algorithmic optimization, and continue to strengthen the reserves of AI technical capabilities. and provide more possibilities for product innovation. In terms of sound technology, we are constantly improving the ASR, which is the stability and performance of TTS and sound transfer, so that it can adapt to many scenarios. We have also achieved breakthrough progress in AI transformation technology and the better integration of the RTC internship audio and video technology platform, Doremi. At the same time, we have continuously improved the information transmission quality of the IMTC voice communication platform, Word.S, to provide high-performance, low-resolution, and customizable digital communication support for our business. In addition, in terms of comprehensive platform construction, we have further optimized the AI data analysis and data management system, and applied AI technology to market marketing and other areas to effectively promote overall business efficiency. Overall, we believe that technology is the foundation for business development. With respect to technological advancement, we continue to strengthen our R&D capabilities to provide more customized product support. This in turn empowers product innovation
spk03: and drives progress across our global business. We have also consistently deepened the integration and development of multi-model AIGC technologies into our innovative business framework. Through emotionally enhanced model training and algorithm optimization, we are fortifying our AI assets, unlocking vast opportunities for ongoing product innovation. On voice technologies, we have been consistently constantly improving the stability and performance of automatic speech recognition and text-to-speech ASR and TTS for both Chinese and English languages, adapting them for diverse scenarios. We have also achieved breakthroughs in AI voice-changing technology, including a seamless integration to .REME, our in-house RTC platform for real-time audio and video streaming, In the meantime, we further enhanced the quality of information transmission on our IM platform, Vodax, empowering our business with high performance, low latency, and scalable customized instant messaging capabilities. In terms of our versatile technology platform construction, we further improved the data analytics and data management systems, and applied AI technology to marketing and other fields Collectively, these initiatives have improved overall operating efficiency. In general, we believe technological advancements are the cornerstone of business development. We remain committed to pursuing industry-leading technological standards and continually fortifying our core technological capabilities to empower the business development.
spk04: Last month, our company has been selected as one of the top 100 corporate bonds issued by the Chinese Internet Association for five consecutive years. This also means that the association and the industry recognize the comprehensive capabilities of the group. In the future, even though the public environment is still challenging, we will do our best to actively adjust the business strategy to create a competitive business ecosystem, and continue to enhance core technical capabilities, and fully deepen the application of AIGC and AI cloud technology in all businesses. At the same time, we will also carry out detailed operations to improve the efficiency of resource configuration, and add more motivation to the company's long-term sustainable development.
spk03: We are delighted to announce that last month, the company was lauded as one of China's top 100 internet companies by the Internet Society of China. This marks the fifth consecutive year that we have received this honor, representing powerful recognition of our comprehensive capabilities by the Internet Society of China and the broader industry. Going forward, despite the macro challenges we will spare no effort in proactively refining our business strategies and building a more competitive ecosystem. We will continue to improve our core technology capabilities while also adopting and more deeply integrating AIGC and voice AI technologies throughout the business. Meanwhile, we will further streamline our operations and improve the effectiveness of resource allocation propelling the company's long-term sustainable development with fresh momentum. Thank you all. With that, I will now turn the call over to our Acting CFO, Ms. Chengfang Lu, who will discuss our financial results in more detail.
spk01: Thank you, Marco, and hello, everyone. Online revenues in the third quarter of 2023 were on the B425.1 million. Despite the complex backdrop and market uncertainties then presented, we remain steadfast in strengthening our core competitive list through technological innovation during the quarter. Moving forward, we remain committed to further enhancing organizational efficiency, developing globalization capability, and enhancing overall agility. positioning us to deliver enduring value to our stakeholders. Now, I'd like to provide a brief overview of our financial results for the third quarter of 2023. In this quarter, our total net revenues will be $425.1 million, compared with $565.2 million in the same period of last year, primarily due to the decline in average paying users and user spending on our audio entertainment products. Cost of revenue was RMB 317.3 million in this quarter, compared with RMB 376.2 million in the same period of last year, mainly attributable to the decreased revenue share fees, share-based compensation expenses, payment handling costs, and other miscellaneous costs. Gross profit was RMB 107.8 million in the third quarter of 2033. compared with RMB 189.1 million in the same period of last year. Long-gap gross profit was RMB 107.9 million in this quarter, compared with RMB 190.8 million in the same period of last year. Gross margin in this quarter of 2023 was 25, compared with 33% in the same period of last year. Long-gap gross margin in this quarter was 25%, compared with 34% in the same period of last year. Operating expenses were RMB 167.9 million in the third quarter of 2023, compared with RMB 176.6 million in the same period of last year. Research and development expenses were RMB 83.8 million in the third quarter of 2023, representing an increase of 7% year-over-year. primarily due to the increased salary and welfare benefits expenses related to increased severance pay to optimize the R&D efficiency, partially offset by the decreased expenses related to research and development services provided by third parties. Selling and marketing expenses were RMB 59.1 million in this quarter, compared with RMB 71.2 million in the same period of last year. primarily attributable to decreased branding and marketing expenses. The company will monitor its discretionary advertising and promotion expenses and adjust accordingly depending on marketing conditions. General and administrative expenses were RMB 25.1 million in the third quarter of 2023, compared with RMB 27.1 million in the same period of last year. Many driven by decreased professional service fees provided by third parties provision for litigation contingencies, and other miscellaneous expenses. Operating loss was RMB 60.1 million in the third quarter of 2023, compared with operating income of RMB 12.5 million in the same period of last year. Long-gap operating loss was RMB 55 million in this quarter, compared with long-gap operating income of RMB 20.2 million in the same period of last year. Other expenses were RMB 5.9 million in the third quarter of 2023, compared with other income of RMB 1.7 million in the same period of last year, mainly attributable to the remuneration fees to the Depositive Bank in relation to the ratio change of ADF on September 20, 2023. Net loss was RMB 62 million in the third quarter of 2023, compared with net income of RMB 19.82 million in the same period of last year. Non-GAAP net loss was RMB 56.7 million in this quarter, compared with non-GAAP net income of RMB 27.5 million in the same period of last year. Basic and diluted net loss per ADS were both 11.01 in the third quarter of 2023. compared with basic and diluting net income of RMB 3.81 and 3.79 per ADS in the same period of last year. Long-gap basic and diluting net loss per ADS were both RMB 10.07 in the third quarter of 2023, compared with long-gap basic and diluting net income of RMB 5.29 and 5.26 per ADS in the same period of last year. As of September 13, 2023, we had cash and cash equivalents and restricted cash of RMB $615.8 million. Okay, this concludes all of our prepared remarks. Thank you once again for joining us today. If you have further questions, please feel free to contact Leeds Investor Relations through the contact information provided on our website, ir.leeds.fm, or PionSys Financial Communications. Thank you. This concludes the conference call. You may now disconnect your line. Thank you.
spk02: Have a good day.
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