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spk19: The conference will begin shortly. To raise your hand during Q&A, you can dial star 11.
spk08: Ladies and gentlemen, thank you for standing by and good evening. Thank you for joining Soho's third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of SOHU. Please go ahead.
spk17: Thanks, Show Creator. Thank you for joining us to discuss SOHU's third quarter 2022 results. On the call are Chairman and Chief Executive Officer, Dr. Charles Zhang, CFO Joanna Liu, and Vice President of Finance, James Doe. Also with us are Chang-Yu's CEO Du Wen-Cheng and CFO Yao-Bing Wang. Before management begins their prepared remarks, I would like to remind you of the comprehensive Harvard statements in connection with today's conference call. Except for the historical information contained herein, the matters discussed on this call may contain four working statements. These statements are based on current plans, estimates, and projections, and therefore you should not place undue reliance on them. Forelooking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause X results different materially from those containing any forelooking statements. For more information about the potential risks and uncertainties, please refer to the company's signings with the Securities and Exchange Commission, including the most recent annual report on Form 20S. With that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed.
spk04: Thank you everyone for joining our call. In the third quarter of 2020, we faced severe headwinds from COVID-19 pandemic and uncertainty in the macroeconomic environment. Despite these, we maintained our focus on refining our products, improving operating efficiency, and enhancing monetization capabilities. Thanks to strict budget control and solid performance of our online game business, our bottom line performance over the quarter was well above expectations. For Soho Media Portal, we enhanced user experience through continuous improvements in products and technology. For Soho Video, we continued to execute our Twin Engine strategy, developing science and knowledge-based live broadcasting with our advanced live broadcasting technology, and compelling content and events. Leveraging the differentiated advantages of the Soho product matrix, we continued to explore ways to improve monetization for both Soho Media Portal and Soho Video. Online games performed well during the quarter with revenues exceeding our prior guidance. I'll go into details about each of these businesses in a moment, but first, a quick overview of our financial performance. So the third quarter 2020, total revenue $185 million, down 14% year-over-year and 5% quarter-over-quarter. Grand advertising revenues were $26 million, down 24% year-over-year and up 3% quarter-over-quarter. Online game revenues were $149 million, down 11% year-over-year and 5% quarter-over-quarter. Gap net loss attributable to Seoul.com Limited was $22 million compared with the net income of $12 million in the third quarter of 2021 and net income of $9 million in the second quarter of 2022. Non-gap net loss attributable to Seoul.com Limited was $17 million compared with the net income of $17 million in the third quarter of 2021, and net income of $10 million in the second quarter of 2022. Now I'll go through some of our key businesses. First, Media Portal and Soho Video. So Soho Media Portal, we consistently focused on product refinement and optimizing of our algorithms We are continuously enhancing user experience and have kept users tightly engaged by facilitating large amounts of reliable real-time news and premium content. We are also working actively to integrate new features in our products to enrich users' visual experience. Working within this strategy, we were able to further consolidate and strengthen our position as a mainstream media platform. For SOFU video, we continue to execute our twin-engine strategy, leveraging our advanced live broadcasting technology and premium content. We actively promoted the generation and the social distribution of our high-quality content. We strengthened our reputation as a credible, leading science and knowledge-based live broadcasting platform. During the quarter, with the launch of a series of unique and influential science-related and nature-related broadcasting, for example, myself, Charles' physics class, et cetera, we have not only drawn wide attention from millions of audiences, but also attracted plenty of leading professional broadcasters in a variety of scientific fields into our platform. A long-form content, in long-form content, Besides producing original dramas and reality shows, we also acquired a cost-effective TV program to complement our content library. Despite the ongoing negative impact of COVID-19 and the uncertainties it imposed on the market, we continue to explore new monetization opportunities to capture advertising budgets We extended application scenarios of advanced live broadcasting technology and integrated into various high-quality content marketing activities. During the quarter, we successfully hosted Talk Under the Starry Sky , Camping at 47 Degrees North, and the 14th Sohu News Marathon. These unique content marketing activities continued to make breakthroughs and spreading widely across social media platforms and demonstrating the value of social media. Through such events, we were able to meet the demand of a wide range of advertisers and attracted their advertising budget dollars. Next, turning to online game business. During the third quarter of 2022, online game revenues performed well. In our business line for PC games, We roll out a new group, PVE, Player Versus Environment Dungeon for regular TLBB PC, which was well received by players. With TLBB Vintage, we introduced new weekly goals to keep the game fresh for players. With mobile games, we introduced some summer theme events for legacy TLBB mobile and adjusted the relative skill strengths of some clans. Next quarter, to keep players engaged, we will roll out new content for TLBB PC, Legacy TLBB Mobile, and other games. Against the backdrop of an ever-changing environment, we will stick to our top game strategy by promoting the development of professional talent as well as innovation in content and technology, rolling out more high-quality mobile games. In terms of game pipeline, while maintaining our core competitiveness in MMORPGs, we'll also invest in games of multiple types, including car RPGs and sports and idle games. Now I'll turn the call to Joanna, our CFO, who will walk you through our financial results. Joanna.
spk21: Thank you, Charles. I will now walk you through the key financials of our major segments for third quarter of 2022. All the numbers on a non-GAAP basis. You may find our reconciliation of non-GAAP to GAAP measures on our IR website. For Soku Media Portal, quarterly revenues were $15 million, down 11% year-over-year and 6% quarter-over-quarter. The quarterly operating loss was $38 million. compared with an operating loss of $37 million in the same quarter last year. For Soho Video, quarterly revenues were $16 million, down 29% year-over-year, and up 4% quarter-over-quarter. The quarterly operating loss was $31 million, compared with an operating loss of $10 million in the same quarter last year. For trials online game business and 17173, quarterly revenues $150 million, down 11% year-over-year and 6% quarter-over-quarter. The quarterly operating profit was $58 million, compared with an operating profit of $79 million in the same quarter last year. For the fourth quarter of 2022, we expect Brand advertising revenues to be between $25 million and $28 million. This implies annual decrease of 17% to 26% and a sequential decrease of 3% to a sequential increase of 9%. Online game revenues to be between $180 million and $128 million. This implies annual decrease of 11% to 18% and a sequential decrease of 14% to 21%. Non-GAAP net loss attributable to Soho.com Limited to be between $10 million and $20 million. And GAAP net loss attributable to Soho.com Limited to be between $30 million and $23 million. This forecast reflects our current and preliminary view, which is subject to substantial uncertainty. This concludes our prepared remarks. Operator, we would now like to open the floor to questions.
spk08: Thank you very much. At this time, if you would like to ask questions, please press star 11 on your telephone and wait for a name to be announced. One moment for the first question. First question is from the line of Thomas Chong of Jefferies. Please proceed.
spk18: Hi, good evening. Thank you for taking my question. Given that we have seen the macro headwinds, and also the outbreak of pandemic. I just want to get some color from Charles. If you can share about how we should think about the advertising trend across different categories, like auto, FMCG, poverty, etc., and also how we should think about the advertising outlook in 2023. And my second question is about the gaming business. Given that We haven't seen Banhao released in October and so far in November. How should we think about the gaming approval trend in China? And on Changyou, how should we think about our new games in the pipeline for next year? Thank you.
spk04: Okay, so the general advertising market is kind of a problem. The trend is, at least for or Q3 and onwards, it's kind of a downward, but among them, I think auto is doing fine. Auto is doing relatively better. Real estate is really bad. The internet services, I think Q3 is not as good as Q2.
spk20: It's a low season.
spk04: Because Q3, Q1, Q2, you have the festivals, So Q3 is a low season, and FMCG seems to be doing better in Q3. Yeah, that's a relatively ranked ranking of the sectors. Your next question is about game, right?
spk11: We have a couple of projects that are waiting for the license approval, but we have no further news about that, so we are just waiting.
spk09: Currently, in our game pipeline, we have more than 10 games, and half of them are fit for global market, and the rest of them are for the domestic market. Thank you.
spk04: made this advertising downward trend, we actually did a little bit better by, as I just said, our unique marketing activities, unique event to the marketing activities that we were able to draw some advertisers.
spk22: Got it. Thank you.
spk08: Thank you for the questions. Our next question comes from the line of Eddie Leung of Bank of America. Please proceed.
spk14: Hey, Thomas. Can I have a follow-up on the near-term advertising trend? Could you describe what you have seen in September, October, and early November? The reason we ask is we all know there have been more lockdowns in the recent months. So just wondering how you have seen, how you see the trend evolving in the past couple of months. So that's my first question. And then secondly, on use of cash, we continue to see a very strong cash balance. So wondering if we should expect any more share by that program or even a dividend. Thank you.
spk04: Yeah, I think the lockdown did have a negative impact over our advertising income because companies, you know, we rely mostly on brand advertising. So companies, especially large corporations, um they were uh they're previously uh you know scheduled events marketing events and all those kind of things um not able to be held so um that's why that's that's that's the impact of the their you know their spending on our platform um but we are doing not so bad actually uh because we have some kind of online events like the i just mentioned they are um physics class or other science science and nature based you know knowledge based live streaming broadcasting events that does not need people to you know to meet in person so so that's we just you know get back a little bit some of the their edifying dollars
spk13: And use of cash?
spk04: Use of cash, yeah, because of the economic uncertainties, microeconomic uncertainties, we hold back after we've completed our, as we reported, we completed 100 million buyback already, right? So further buyback, we hold back because there's a way to see. in view of the economic uncertainties. Got that.
spk15: Thank you very much.
spk04: And also, we have a lot of things to do. We have a lot of things, improving our products, developing our user base. So in the future, we do have a place to spend our money.
spk10: Understood. Thank you very much.
spk08: Questions? As a reminder, to ask questions, please press star 11. Next, we have the questions from Alicia Yap from Citi. Please proceed.
spk05: Hi. Thank you. Good evening, Charles and management. Thanks for taking my questions. I do have a couple questions. First is on the fourth quarter online gaming revenue guidance. It seems quite a big sequential decline. Can management elaborate a little bit the reasons of the soft gaming guidance? I thought if I heard it correctly, Charles actually mentioned there will be some expansion pack update for the TLBV PC and all that. So just wondering kind of the discrepancy on the games content update versus the guidance. Secondly, also related to the gaming, just in general, if management can share your view, has gaming industry monetization been affected by the latest macro weakness? So have you seen or do you think the COVID lockdown or the soft macro have negatively impacted the gaming revenues and the gamers' time spent on gaming?
spk04: To answer your last question, yes, it's conflicting factors. One is that people have more time spending, stay home, and more time to play games. But the microeconomic situation, people have less money, so people are not willing to spend as much as before. So that's why the monetization, the overall effect is actually negative now.
spk11: I have another question. In the last talk, we talked about some data changes in the fourth quarter. What are the reasons for the decline in game revenue?
spk09: The decline in game revenue in the fourth quarter is mainly due to the natural decline of the old games of the Dragon series, including Sea of Limits. Of course, some of the reasons are also due to the influence of exchange rate changes.
spk11: That was primarily due to the natural decline of some of our older games of TLBB franchise, as well as the sale down decline, and partly due to the negative impact of exchange rate.
spk05: I see. Thank you. Can I have one follow-up on the brand advertising? So if management can comment regarding, you know, the guidance that you provide for 4Q as well as, you know, your thoughts into 2023, are you more confident or less confident about the recovery pace of the ad sentiment into next year?
spk04: Well, we are confident because our... platform our user base is growing and also uh our uh live broadcasting and also our uh unique uh marketing events activities very unique you know other companies does not have this kind of things so we are confident uh but but it really depends on the uh overall economic situation you know the um uh and also the future uh you know the uh copy 19 policy right so It all depends. So if the economy is doing well, we are very confident that we'll do well. We'll do better than the average. But it really depends on the COVID policy.
spk05: I see. Just lastly on the share buyback, I think you mentioned given because of the macro weakness, so you wanted to be a little bit cautious on spending the money, right? But let's say if macro recover and your gaming business doing well, you know, advertising also recover, if your share price is still around this level, then you would consider more aggressive buyback. Is that what you mean?
spk04: Well, we'll not exclude that possibility.
spk05: Okay. All right. Thank you, Charles. Thank you, management.
spk04: All right.
spk08: Thank you for the question. That concludes today's conference call. Thank you for your participation. You may now disconnect.
spk19: The conference will begin shortly. To raise your hand during Q&A, you can dial star 1 1. you Thank you. So,
spk16: music music you
spk08: Ladies and gentlemen, thank you for standing by and good evening. Thank you for joining Sohu's third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Please go ahead.
spk17: Thanks, operator. Thank you for joining us to discuss SOHO's third quarter 2022 results. On the call are Chairman and Chief Executive Officer, Dr. Charles Zhang, CFO Joanna Liu, and Vice President of Finance, James Stone. Also with us are Chang Youze, CEO Du Wenquan, and CFO Yao Bingwang. Before management begins their prepared remarks, I would like to remind you of the comprehensive Harvard statement in connection with today's conference call. Except for the historical information contained herein, the matters discussed on this call may contain forelooking statements. These statements are based on current plans, estimates, and projections, and therefore you should not place undue reliance on them. Forelooking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results different from those containing any forelooking statements. For more information about the potential risks and uncertainties, please refer to the company's findings with the Securities and Exchange Commission, including the most recent annual report on Form 20-F. With that, I will now hand the call over to Dr. Charles Zhang. Charles, please proceed. Thank you, Huang.
spk04: Thank you, everyone, for joining our call. In the third quarter of 2020, we faced severe headwinds from COVID-19 pandemic and uncertainty in the macroeconomic environment. Despite these, we maintained our focus on refining our products, improving operating efficiency, and enhancing monetization capabilities. Thanks to strict budget control and solid performance of our online game business, our bottom line performance over the quarter was well above expectations. For Soho Media Portal, we enhanced user experience through continuous improvements in products and technology. For Soho Video, we continued to execute our Twin Engine strategy, developing science and knowledge-based live broadcasting with our advanced live broadcasting technology and compelling content and events. Leveraging the differentiated advantages of the SOHO product matrix, we continued to explore ways to improve monetization for both SOHO Media Portal and SOHO Video. Online games performed well during the quarter with revenues exceeding our prior guidance. I'll go into details about each of these businesses in a moment, but first, a quick overview of our financial performance. So the third quarter 2020, total revenue 185 million, down 14% year over year, and 5% quarter over quarter. Grand advertising revenues were $26 million, down 24%, year-over-year and up 3% quarter-over-quarter. Online game revenues were $149 million, down 11% year-over-year and 5% quarter-over-quarter. Gap net loss attributable to Soho.com Limited was $22 million compared with the net income of $12 million in the third quarter of 2021 and net income of $9 million in the second quarter of 2022. Non-GAAP net loss attributable to Soho.com Limited was $17 million, compared with the net income of $17 million in the third quarter of 2021 and net income of $10 million in the second quarter of 2022. Now I'll go through some of our key businesses. First, Media Portal and Soho Video. So Soho Media Portal, we consistently focused on product refinement and optimizing of our algorithms. We're continuously enhancing user experience and have kept users tightly engaged by facilitating large amounts of reliable real-time news and premium content. We're also working actively to integrate new features in our products to enrich users' visual experience. Working within this strategy, we were able to further consolidate and strengthen our position as a mainstream media platform. For Soho Video, we continued to execute our Twin Engine strategy, leveraging our advanced live broadcasting technology and premium content. We actively promoted the generation and the social distribution of our high-quality content. We've strengthened our reputation as a credible, leading science and knowledge-based live broadcasting platform. During the quarter, with the launch of a series of unique and influential science-related and nature-related broadcasting, for example, myself, Charles, Charles' physics class, et cetera, we have not only drawn wide attention from millions of audiences, but also attracted plenty of leading professional broadcasters in a variety of scientific fields into our platform. In the long-form content, besides producing original dramas and reality shows, we also acquired a cost-effective TV program to complement our content library. Despite the ongoing negative impact of COVID-19 and the uncertainties imposed on the market. We continued to explore new monetization opportunities to capture advertising budgets. We extended application scenarios of advanced live broadcasting technology and integrated into various high-quality content marketing activities. During the quarter, we successfully hosted Talk Under the Dairy Sky , camping at 47 degrees north, and the 14th Sohu News Marathon. These unique content marketing activities continued to make breakthroughs and spreading widely across social media platforms and demonstrating the value of social media. Through such events, we were able to meet the demand of a wide range of advertisers and attracted their advertising budget dollars. Next, turning to online game business. During the third quarter of 2022, online game revenues performed well. In our business line for PC games, we roll out a new group, PvE, Player Versus Environment Dungeon, for regular TLBB PC, which was well received by players. With TLBB Vintage, we introduced new weekly goals to keep the game fresh for players. With mobile games, we introduced some summer theme events for Legacy TLBB Mobile and adjusted the relative skill strengths of some clans. Next quarter, to keep players engaged, we will roll out new content for TLBB PC, Legacy TLBB Mobile, and other games. Against the backdrop of an ever-changing environment, we will seek stick to our top game strategy by promoting the development of professional talent as well as innovation in content and technology, rolling out more high-quality mobile games. In terms of game pipeline, while maintaining our core competitiveness in MMORPGs, we'll also invest in games of multiple types, including car RPGs and sports and idle games. Now I'll turn the call to Joanna, our CFO, who will walk you through our financial results. Joanna.
spk21: Thank you, Charles. I will now walk you through the key financials of our major segments for third quarter of 2022. All the numbers on the non-GAAP basis. You may find our reconciliation of non-GAAP to GAAP measures on our IR website. For Soku Media Portal, quarterly revenues were $50 million, down 11% year-over-year and 6% quarter-over-quarter. The quarterly operating loss was $38 million, compared with an operating loss of $37 million in the same quarter last year. For SOHO video, quarterly revenues were $16 million, down 29% year-over-year and up 4% quarter-over-quarter. The quarterly operating loss was $31 million, compared with an operating loss of $10 million in the same quarter last year. For trials online game business and 17173, quarterly revenues, $150 million, down 11% year-over-year and 6% quarter-over-quarter. The quarterly operating profit was $58 million. compared with an operating profit of $79 million in the same quarter last year. For the fourth quarter of 2022, we expect brand advertising revenues to be between $25 million and $28 million. This implies annual decrease of 17% to 26% and a sequential decrease of 3% to a sequential increase of 9%. Online game revenues to be between $180 million and $128 million. This implies annual decrease of 11% to 18% and a sequential decrease of 14% to 21%. Non-GAAP net loss attributable to Soho.com Limited to be between $10 million and $20 million, and the gap net loss attributable to Soho.com Limited to be between $30 million and $23 million. This forecast reflects our current and preliminary view, which is subject to substantial uncertainty. This concludes our prepared remarks. Operator, we would now like to open the floor to questions.
spk08: Thank you very much. At this time, if you'd like to ask questions, please press star 11 on your telephone and wait for a name to be announced. One moment for the first question. First question is from the line of Thomas Chong of Jefferies. Please proceed.
spk18: Hi. Good evening. Thank you very much for taking my questions. Given that we have seen the macro headwinds and also the outbreak of pandemic, I just want to get some color from Charles. If you can share about how we should think about the advertising trend across different categories like auto, FMCG. uh, poverty, um, and also how we should think about, um, the advertising outlook in, uh, 2023. And my second question is about, uh, the gaming. Um, given that, um, We haven't seen Banhao released in October and so far in November. How should we think about the gaming approval trend in China? And on Changyou, how should we think about our new games in the pipeline for next year? Thank you.
spk04: Okay, so the general advertising market is kind of a problem. The trend is, at least for or Q3 and onwards it's kind of a downward but among them I think auto is doing fine auto is doing relatively better real estate is really bad the internet services I think Q3 is not as good as Q2 because Q1 Q2 you have you know the festivals So Q3 is a low season, and FMCG seems to be doing better in Q3. Yeah, that's a relatively ranked ranking of the sectors. Your next question is about game, right?
spk11: We have a couple of projects that are waiting for the license approval, but we have no further news about that, so we are just waiting.
spk09: Currently, in our game pipeline, we have more than 10 games, and half of them are fit for global market, and the rest of them are for the domestic market.
spk11: Thank you.
spk04: made this advertising downward trend, we actually did a little bit better by, as I just said, our unique marketing activities, unique event to the marketing activities that we were able to draw some advertisers.
spk22: Got it. Thank you.
spk08: Thank you for the questions. Our next question comes from the line of Eddie Leung of Bank of America. Please proceed.
spk14: Can I have a follow-up on the near-term advertising trend? Could you describe what you have seen in September, October and early November? The reason we ask is we all know there have been more lockdowns in the recent months. So just wondering how you have seen, how you see the trend evolving in the past couple of months. So that's my first question. And then secondly, on use of cash, we continue to see a very strong cash balance. So wondering if we should expect any more share by that program or even a dividend. Thank you.
spk04: Yeah, I think the lockdown did have a negative impact over our advertising income because companies, you know, we rely mostly on brand advertising. So companies, especially large corporations, um they were uh they're previously uh you know scheduled events marketing events and all those kind of things are not able to be held so um that's why that's that's that's the impact of the their you know their spending on our platform um but we're doing not so bad actually uh because we have some kind of online event like the i just mentioned they are um physics class or other science science and nature based you know knowledge based live streaming broadcasting events that does not need people to you know to meet in person so so that's we just you know get back a little bit some of the their edifying dollars
spk13: And use of cash?
spk04: Use of cash, yeah, because of the economic uncertainties, microeconomic uncertainties, we hold back after we completed our, you know, as we reported, we completed 100 million buyback already, right? So further buyback, we hold back because there's a way to see, you know, the... in view of the economic uncertainties. Got that.
spk15: Thank you very much.
spk04: And also, we have a lot of things to do. We have a lot of things improving our products, developing our user base. And so in the future, we do have place to spend our money.
spk10: Understood. Thank you very much.
spk08: Questions? As a reminder, to ask questions, please press star 11. Next, we have the questions from Alicia Yap from Citi. Please proceed.
spk05: Hi. Thank you. Good evening, Charles and management. Thanks for taking my questions. I do have a couple questions. First is on the fourth quarter online gaming's revenue guidance. It seems quite a big sequential decline. Can management elaborate a little bit the reasons of the soft gaming guidance? I thought if I heard it correctly, Charles actually mentioned there will be some expansion pack update for the TLBV PC and all that. So just wondering kind of the discrepancy on the games content update versus the guidance. Secondly, also related to the gaming, just in general, if management can share your view, has gaming industry monetization been affected by the latest macro weakness? So have you seen or do you think the COVID lockdown or the soft macro have negatively impacted the gaming revenues and the gamers' time spent on gaming?
spk04: To answer your last question, yes, it's conflicting factors. One is that people have more time spending to stay home and more time to play games. But the microeconomic situation, people have less money, so people are not willing to spend as much as before. So that's why it's the game, the monetization, the overall effect is actually negative now.
spk11: I have another question. In the 4th quarter, there were some data changes, but the game revenue decreased significantly. What is the reason for this?
spk09: In the 4th quarter, the game revenue decreased significantly mainly due to the natural decline of the old games of the Tianlong series, including Sea of Limits. Of course, some of the reasons are also due to the influence of exchange rate changes.
spk11: That was primarily due to the natural decline of some of our older games of TLBB franchise, as well as the sale down decline, and partly due to the negative impact of exchange rate.
spk05: I see. Thank you. Can I have one follow-up on the brand advertising? So if management can comment regarding, you know, the guidance that you provide for 4Q as well as, you know, your thoughts into 2023, are you more confident or less confident about the recovery pace of the ad sentiment into next year?
spk04: Well, we are confident because our... platform our user base is growing and also uh our uh live broadcasting and also our uh unique uh marketing events activities very unique you know other companies does not have this kind of thing so we are confident uh but but it really depends on the uh overall economic situation you know the um uh and also the future uh you know the uh copy 19 policy right so It all depends. So if the economy is doing well, we are very confident that we'll do well. We'll do better than the average. But it really depends on the COVID policy.
spk05: But the lockdown will continue. I see. Just lastly, on the share buyback, I think you mentioned given because of the macro weakness, so you wanted to be a little bit cautious on spending the money, right? But let's say if macro recover and your gaming business doing well, you know, advertising also recover, if your share price still around this level, then you would consider more aggressive buyback. Is that what you mean?
spk04: Well, we'll not exclude that possibility.
spk05: Okay. All right. Thank you, Charles. Thank you, management.
spk08: All right. Thank you for the question. That concludes today's conference call. Thank you for your participation. You may now disconnect.
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