Cheetah Mobile Inc.

Hey, and welcome to the Cheetah Mobile third 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, Investment Relations Director of Cheetah Mobile. Please go ahead, ma'am.

Thank you, operator. Welcome to Cheetah Mobile's third quarter 2021 earnings conference call. With us today are Mr. Sheng Fu, Chairman and CEO, and Mr. Thomas Yen, CFO. Following management's prepared remarks, we will conduct the Q&A session. Before we begin, I refer you to the Safe Harbor Statement in our earnings release, which will also apply to our conference call today as we will make forward-looking statements. At this time, I would now like to turn the conference call over to our CEO, Mr. Shengfu. Please go ahead, Fuzong.

Thank you, Sherry. Hello, everyone. In the third quarter of 2021, constant with our previous guidance, Trader Mobile's revenue was RMD 196 million. For our internet business, we continue to transform our business from single advertising model to a diversified model of advertising plus subscription. The number of members keep double ticket sales. The revenue from our membership business have increased for more than five quarters consecutively. On TC platform, we further enhanced our service and membership privilege. The overall member's satisfaction score stays a high level. Our mobile platform, we improved user experience through product optimization and more value added service. The percentage of paying users as well as the renewal rate both increased. In general, after the huge external challenges, our internet business has been back to the right track as we planned. However, now globally, Advertising is facing some uncertainty in China. Sectors such as education, real estate, travel have slowed down due to COVID-19, government supervision and regulation, and some other reasons. The impact has been passed on to advertising business. Companies, including Baidu and Tencent, are not very optimistic about advertising in the coming quarters. Our outlook for the first quarter also reflects these factors. Advertising business of big companies, such as Facebook, also faced headwind from the change of iOS 14. Macroeconomic and COVID related factors. Our overseas advertising agency business is inevitably adversely affected As this might be a multi-quarter impact, this also has been factored in our fourth quarter guidance. Good news is revenues from our global cloud service has been growing very well due to expanding service categories and the client base in this quarter. Enterprise, which tried to explore overseas markets, has a real demand for this service. We are very optimistic about its future growth. For our AI business, GMU and revenue from shopping mall coupon-saving robots has been up for several months in a row. We applied both offline and online marketing strategies to expand the business. Offline, we have deployed more than 10,000 robots in more than 40 cities. Online, we use our own WeChat mini program, Chuan Duo Duo, some other local network community, as well as some mainstream third-party platforms. Customers can register in Chuan Duo Duo through our Shopping Mall robots and choose their favorite coupons from a list of options we displayed in this mini program. Machines can also use Trendodo's professional platform to review the data of their coupon sales and to analyze. Currently, our robots sell more than 5,000 kinds of coupons for more than 1,000 merchants in more than 700 shopping malls all over the country. At the end of October, GM Vapor Day, as a weekend, has achieved another milestone. For this business, we have gradually created competition barriers It has been widely welcomed by more and more merchants and customers. Generally speaking, revenue from our new business, such as the membership business, the global cloud service business, and the shopping mall coupon trading robots business will keep going. While revenues from advertising-related business will face some challenges in the coming quarter, for cost and expense, operational efficiency has been greatly improved in the past quarters. Upon this, we will continue the strict control over cost and expense to maximize our operational efficiency and the interest of our shareholders. Additional, as of September 30th, 2021, our cash position was around USD 200, US dollar 288 million, and the long-term equity investments was about US dollar 376 million. The vendor capital reserves ensure us to focus on our strategies and growth Stately with that, I will now turn the call to our CFO, Thomas Ren, to go through the detail of our third quarter financial results.