Cheetah Mobile Inc.

Good day and welcome to the Cheetah Mobile first quarter 2021 conference call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Cheryl Zong, Investor Relations Director of Cheetah Mobile. Please go ahead, ma'am.

Thank you, Operator. Welcome to Cheetah Mobile's first quarter 2021 earnings conference call. With us today are Mr. Sheng Fu, our chairman and CEO, and Mr. Thomas Ren, our CFO. Following management's prepared remarks, we will conduct a Q&A session. Cheetah Mobile earnings release was distributed earlier and is available on our IR website at www.ir.cheetahmobile.com. Before we begin, I refer you to the Safe Harbor Statement in our earnings release, which will also apply to this call today, as we will make certain forward-looking statements. Now, I would like to turn the conference call over to our Chairman and CEO, Mr. Sheng Fu. Please go ahead, Fu Zong.

Thank you, Sherry. Hello, everyone. In the first quarter of 2021, with our Our previous guidance, Trader Mobile's revenue was about RMB 200 million The company has efficiently improved operational efficiency Growth margin continuously increased to 70.1% Operating loss narrowed to RMB 57 million and net income attribute to our shareholders was on the 76 million. Our cash position has been increasing to about US dollar 276 million as of March 31st, 2021. The abandoned cash resource enable us to keep investing in our core business to empower the company's long-term sustainable growth For our Internet business, in this quarter, the company has been focused on the domestic market and enhancing membership service Our business has gradually transformed from a single advertising model to a diversified model of advertising plus subscription. Our products and services all center on how to deliver superior user experience and improve our user satisfaction. As a result, we see a continued increase in revenue from our membership service in terms of both absolute numbers and the percentage of total internet revenues Besides, the company has been consistently developing new utility products on mobile platforms to increase the user time and attract more high-value young users Despite the huge challenge from the market Our efforts to optimize our business model and products, our internet business managed to realize net profits for five consecutive quarter. For our AI business, we have seen some initial achievements in the business model of shopping mall robots. By now, we have more than 12,000 robots in about 1,200 shopping malls in more than 40 cities. Pilots in several shopping malls showed that selling coupons by our robots could effectively attract new customers to Manhattan. Merchants, they are very active to participate because it is a win-win situation for both customers and merchants. We have also launched many apps based on this Shopping Mall robot coupon selling model. In May, we started to expand this business and have seen a rapid growth. We believe that we have found the key points to monetize this business and expect a boost in the coming quarters. Lastly, I would like to emphasize that in spite of the extensive hand-wins last year, we have consistently realized net profits and increase our cash reserves. This cannot be achieved without our determination and improved operational efficiency. In the coming quarter, we will keep the profitable growth of our domestic internet business. At the same time, our top priority will still be the monetization of our shopping mall robot business. which will create new growth engine for the company. With that, I will now turn the call to our CFO, Thomas Ren, to go through the detail of our fourth quarter financial results.