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spk02: Hello, ladies and gentlemen. Thank you for standing by for the fourth quarter and full year 2020 earnings conference call for Huya Inc. At this time, all participants are in a listen-only mode. Today's conference call is being recorded. And I'd like to turn the call over to Ms. Dana Chang, Company Investor Relations. Please go ahead. Hello, everyone, and welcome to Goya's 2020 first quarter and four-year earnings conference call. The company's financial and operational results were issued earlier today, and I'll post it online. You can also view the earnings press release by visiting the IR website at ir.goya.com. A replay of the call will be available on the IR website in a few hours. Participants on today's call will be Mr. Rong Jie-dong, Chief Executive Officer of Goya. and Ms. Catherine Lill, Chief Financial Officer. Management will begin with prepared remarks and the call will conclude with a Q&A session. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe cover provisions of the U.S. Private Security and Publication Reform Act of 1995. Forward-looking statements involving hearing reaps and assurances. As such, the company's results may be inherently different from the bills expressed today. Further information regarding these and other risks and uncertainties is included in the company's prospectus and other public followings as well as the U.S. SEC. The company does not assume any obligation to update any follow-up statements except as required under applicable laws. Please also note that COIA's earnings pressure released in this conference call includes discussions of unnotated gap financial information, as well as unnotated non-gap financial measures. OAS Press Release contains a reconciliation of the unnotated non-gap measures to the unnotated most directly comparable gap measures. I will now turn the call over to our CFO, Ms. Katherine Liu, who will read prepared remarks on behalf of our CEO, Mr. Longjie Dong. Catherine, please go ahead. Thank you, everyone, for participating in our conference call today. I am pleased to deliver today's opening remarks on behalf of Mr. Dong. We are very pleased to report another quarter of solid performance across our businesses, allowing us to finish 2020 on a strong note. Total net revenues for the fourth quarter of 2020 increased by 21%. year-over-year to close to 3 billion RMB, while full-year revenues crossed the 10 billion RMB mark for the first time. We believe our enhanced monetization capability sets a solid foundation for us to reinvest into the business and strengthen our future. Robust user growth and higher user engagement also continue to underline our ability to execute well. Mobile MAUs of Goya Live reached 79.5 million in the fourth quarter, a year-over-year growth of 29%, and a net addition of 5 million compared to Q3, further reinforcing our leadership position on the mobile end. Strong mobile growth was driven by the continued buildup of our quality content library especially with e-sports tournaments and entertainment programs, plus improvements as well as marketing activities. Meanwhile, our Who We Are Live APP's next-month retention rate remained at over 70% in the fourth quarter. Driven by mobile growth, average MAUs of Who We Are Live in the fourth quarter increased by 19% year-over-year. to $178.5 million. Paying users for VR Live increased by 18% year-over-year to $6 million in the fourth quarter. Notably, around 80% of our paying users paid with mobile devices, and mobile users contributed to more than 85% of our live streaming revenue this quarter. further endorse our mobile strategy focus as we continue to allocate resources to grow our mobile user base. The growth in both financial and operating matrix validates the strong appeal of our content. Achieving such sound results in the midst of a global pandemic proves the resilience of our business and represents an important milestone for our company as we move forward. We have also committed to creating more immersive experiences for our users. In the fourth quarter, our open platform for third-party application developers continued to gain popularity. By the end of fourth quarter, there have been around 200 tools available across the platform and over 400,000 broadcasters. have used these tools during their streaming sessions. Most of the tools are game-centric, offering smart assistance to broadcasters to better engage users. Since we officially launched our cloud gaming platform, Yuva, in November last year, we have been able to reduce latency to deliver an industry-leading level of user-playing experience Thanks to our continuous technology advancement and our average stable time spent per user of Yuva has now reached around 90 minutes, indicating higher engagement. We have also studied efforts in the integration of the cloud gaming function into our core VR live streaming for broadcasters to better interact with users. Now moving on to our collaboration with Tencent. In the fourth quarter, average MAUs who watched the real-life streaming content from Tencent's platform, which are not counted in our reported MAUs, was around 20 million, with WeChat Game Center and LOL games remaining as the most popular channels. On the broadcaster front, Oya has collaborated with Tencent to help our broadcasters receive greater exposure within Tencent's game communities, further increasing their influence. For example, the owner of King's Game Video recently cooperated with a celebrity broadcaster on Oya's platform to release the broadcaster's voice packets within the game. After the release, The broadcaster gained over 5 million fans in the in-game community, assessing a greater audience and expanding the potential streaming viewer base. Next, I will provide you some updates on the ongoing merger with Douyu. After we announced our potential merger with Douyu in October last year, we have made relevant filings with SECs. And in China, we have voluntarily submitted the declaration of concentration of undertakings with the state administration for market regulation, the relevant regulatory authority. And currently, the review is still in the process. As we embrace 2021, we will continue to extend the breadth and diversity of our platform and invest in content ecosystem, product upgrades, and technologies to better serve our growing user base. This concludes Mr. Dong's remarks. Let's start with updates on content enrichment and diversification. In Q4, we broadcasted 149 third-party esports tournaments, among which the top tournaments included LOL Worlds 2020, i.e. S10 and the Demacia Cup, four seasons of KPL and PCL, and exclusively broadcasted National Electronic Sports Tournament, MEST. Total viewership for these tournaments reached around $665 million in the fourth quarter, representing a 24% year-over-year growth. As far as our self-produced content, we organized 48 esports tournaments and entertainment shows and generated a total viewership of 109 million, representing 53% year-over-year growth. The top-performing self-produced esports content in the fourth quarter include our long-standing PUBG event, Huya TMC Season 8, and our commentary program for LOL Worlds, Hushuo S10. In TMC S8, there are eight international teams also joined the competition for the first time, and then the success of this global participation is a further testament to our ability to organize high quality esports events. Among the entertainment PGC shows this quarter, Wake Up Losers, an ultra chess themed reality show, The Voice of Huya, an outdoor talent show, and Huya Kung Fu Carnival season three, a mixed martial arts competition, have gained popularity. and we believe such shows will continue to improve user sickness and health problems. Turning to our overseas business, the MA use of overseas business was around 30 million in the fourth quarter, representing a 50% year-over-year increase. We also achieved leading market position in certain countries and had some successful monetization attempts through our localized operational efforts. Next, I will walk you through our financial highlights. In the fourth quarter, our total net revenues grew by 21% year-over-year to close to RMB 3 billion. Our live streaming revenues increased by 20% year-over-year to RMB 2.8 billion in the fourth quarter. was primarily due to the increased number of paying users and the increase in revenue per paying user, both of which have expanded year over year. Advertising and other revenues increased by 45% year over year to RMB 175 million in the fourth quarter of 2020, primarily driven by the increasing and diversifying number of advertisers Our profitability continues to improve this quarter, given the leverage we have in bandwidth costs and our operational efficiency. Our non-GAAP growth margin improved to 20.6% compared with 19.5% in the fourth quarter last year. Our non-GAAP operating margin was 9% compared with 7.4% in Q4 2019. and our non-GAAP net margin was 10.2% compared with 9.8% in Q4 2019. Now let me move on to our financial details. If not specified, all the growth rates are on year-over-year terms. Cost of revenues increased by 19.6% to RMB 2.4 billion for the fourth quarter primarily attributable to the increase in revenue sharing fees and content costs. Revenue sharing fees and content costs increased by 29.8% to RMB 2 billion for the fourth quarter, primarily due to the increase in revenue sharing fees in relation to higher live streaming revenues and then an increase in spending in esports and self-produced content, as well as on content creators. Bandwidth costs decreased by 26.1% to RMB 167 million for the fourth quarter, primarily due to improved management in bandwidth costs and continued technology enhancement efforts. Growth profit increased by 28.1% to RMB 598 million in the fourth quarter, and growth margin increased to 20% for the fourth quarter. Research and development expenses increased by 21% to RMB 216 million for the fourth quarter, mainly attributable to increased personnel related expenses. Sales and marketing expenses increased by 63.2% to RMB 193 million for the fourth quarter, primarily attributable to the increased marketing expenses to promote the company's content product services and branding, as well as increased personnel related expenses. General and administrative expenses decreased by 0.3% to RMB 96 million for the fourth quarter, mainly due to improved management efficiency. Operating income increased by 84.4% to RMB 187 million for the fourth quarter. and operating margin increased to 6.3% for the fourth quarter. Non-GAAP operating income, which includes share-based compensation expenses, increased by 46.5% to RMB 269 million for the fourth quarter, and non-GAAP operating margin increased to 9% for the fourth quarter. Net income attributable to Huya Inc. for the fourth quarter increased by 58.6% to RMB 253 million. And non-GAAP net income attributable to Huya Inc. for Q4, which excludes share-based compensation expenses, gain-of-fare value, change of investments and equity-investees' investments and equity-investees' Partial disposal of its investment net of income taxes increased by 26.5% to RMB 306 million. Diluted net income per ADS was RMB 1.05 for Q4 and non-GAAP diluted net income per ADS was RMB 1.27 for Q4. As of December 31st, 2020, the company had cash and cash equivalent short-term deposits and short-term investments of RMB 10.5 billion compared with RMB 10.8 billion as of September 30th, 2020. The decrease was primarily attributable to the land use right acquisition of approximately RMB 310 million in Foshan City in November 2020. The net cash provided by operating activities was RMB $459 million for the fourth quarter. Moving on to our full year 2020 results, total net revenues in 2020 increased by 30.3% to RMB $10.9 billion. Live streaming revenues increased by 29.3% to RMB 10.3 billion in 2020, primarily due to the increase in the number of paying users and an average spending per paying user over their life. The increase in the number of paying users was primarily driven by the company's overall user growth. The increase in average spending per paying user was primarily driven by the enrichment and enhancement of content, products, and services. Advertising and ad revenues increased by 51.3% to RMB 603 million in 2020, primarily driven by the increasing and diversifying advertiser space, many attributable to strengthen recognition of Huya's brand name in China's online advertising market. Cost of revenue increased by 25.4% to RMB 8.6 billion in 2020, primarily attributable to the increase in revenue sharing fees and content costs, bandwidth costs, and personnel related costs. Revenue sharing fees and content costs increased by 27.6% to RMB 7.1 billion in 2020, primarily due to the increase in revenue sharing fees in relation to higher live streaming revenues, and then the increase in spending in esports and self-produced content, as well as on content creators. Bandwidth costs increased by 9.8% to RMB 879 million 2020 primarily due to an increase in bandwidth usage as a result of the company's larger user base, partially offset by improved management in bandwidth costs and continuous technology enhancement efforts. Worth profit increased by 53% to RMB 2.3 billion in 2020 and growth margin increased to 20.8% in 2020. Research and development expenses increased by 44.3% to RMB $734 million in 2020, mainly attributable to increases in personnel related expenses. Sales and marketing expenses increased by 27.3% to RMB 558 million in 2020, primarily attributable to the increased marketing expenses to promote the company's content, products, services, and branding, as well as increased personnel related expenses. General and administrative expenses increased by 26.1% to RMB 445 million in 2020, mainly due to the increase in personnel related expenses. Operating income increased by 177.4% to RMB $725 million in 2020, and operating margin increased to 6.6% in 2020. Non-GAAP operating income, which excludes share-based compensation expenses, increased by 108.6% to RMB 1.1 billion in 2020, and non-GAAP operating margin increased to 10.4% in 2020. Net income attributable to Hoi An Inc. increased by 88.9% to RMB 884 million in 2020, and non-GAAP net income attributable to Hoi An Inc. in 2020, which excludes share-based compensation expenses, gain-on-fare value change of investments, and equity investee's investments, and equity investee's partial disposal of these investments, net of income taxes increased by 68.2% to RMB 1.3 billion. Diluted net income per ADS was RMB 3.71 in 2020. and non-GAAP diluted net income per ADS was RMB 5.29 in 2020. Net cash provided by operating activities was RMB 1.2 billion for the full year of 2020. With that, I would now like to open the call to questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask your question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press a pound or hash key. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. So once again, ladies and gentlemen, if you wish to ask a question, please press star one now. Your first question comes from Thomas Chong from Jefferies. Please ask your question.
spk06: Thanks, management, for taking my question. My question is about 2021 outlook. Can management comment about how we should think about the revenue and the user growth trend for this year? On the other hand, can management also comment about our strategies for the gaming and the long game segments? Thank you.
spk00: Hello, everyone. I'm Dong Hongjie. Let me answer the strategic part. This year, in 2021, in terms of the business strategy, the first big direction is that we still hope that we can seize a few new mobile games this year on the live broadcast. We can continue to consolidate our regular advantage in the live broadcast field. We also hope that we can We have more leads on the e-sports market. And we may make more improvements on the e-sports market and the PCC content production. And then maybe a little bit about the video business. Maybe I mentioned it a little bit last year. Maybe the video business is a relatively slow business. The number we can see now is that our share has increased by nearly 40%. This is the current number. The core direction of our video business is that we are still continuing to make live broadcast videos. But we will still enhance the other part, because we have been thinking about the difference between a live broadcast platform and a video platform. Yes, so in addition to our regular live broadcast videos, we are also trying to integrate live broadcast and video into a product level. Yes, we have actually made a lot of attempts in this regard. In fact, there is a certain effect at present. Yes, our overall idea is that this should be one of the possible business breakthroughs in the future. Yes, this video is the fastest. In addition, in addition to live broadcast, the gaming community, including our closer contact with the project team of Tencent, we hope to be able to combine the information of the gaming community with our business in a deeper way. Yes, and then the non-gaming part, most of it is still the previous But we will explore more about some of the things that have been proven to be more effective in the past, such as outdoor sports, nature, and so on. And then, if we talk about overseas, we can talk about overseas. If we talk about overseas, we can see that this year, NEMO's overseas focus is to I hope to be able to do business eco-friendly at the ecological level. So we will, based on our assessment of the revenue balance in a region, make some adjustments to the revenue balance. We generally think that the area that is not able to collect losses, we may... Hi, I will translate for Mr. Dong. Regarding your first question, Mr. Dong has answered the strategic part of them.
spk02: So for the year 2021, on the business side, we actually have several strategic focus. Firstly, on the live streaming business, we will try to see the opportunity that's provided by the new potential blockbuster games that is the potential we can launch later this year, just so that we can strengthen our competitive advantage. Meanwhile, we will strategically focus on the e-sports tournament licensing rights and we self-produced the eSports tournament just so that viewers can enjoy a better eSports tournament content on our platform. And meanwhile, we will also set some efforts on the self-produced PTC shows to provide users with a diverse and enriched content library. In addition to the live streaming business, Next, I will talk about our ambitions for the video business. As we have previously communicated, video business is actually a long-shot business that potentially requires a relatively longer time for us to get the users and to monetize. And actually, through the endeavor that we have put out in the past few quarters, we actually have already seen some promising results on the video business as the viewership of the video business is actually on a year-over-year close of 40% right now. And the routine part for the video business is to do the on-demand viewing experience provided for those users. Going forward, we would like to maintain our advantage for the on-demand business Meanwhile, try to integrate better the live streaming business together with the video business. And we actually have already tried some of them, and it's actually making good effects. And next, I will talk about the Other business sectors that we will specifically focus on, which is game communities. On the game community side, we plan to integrate the game-related information and the game-related know-how, knowledge, to integrate all that kind of services on our platform, just so that viewers, users can have a one-stop shopping experience. Now we're now getting inside. Things are actually similar to what we used to do in the past. We will continue our strategic focus on the common genres such as outdoor, traditional sports, and ACG and try to strengthen the quality content on those genres and acquire new users from the market. And having said enough about the domestic market, next I will share some color of the overseas market. For the NEMO TV, this year what we will focus on is not only to strengthen our leading position in the existing countries, but also try to construct a comprehensive access system. Meanwhile, we will actually focus on the break-even points for each of the countries that we operate in. and try to downsize the business in those countries which are loss-making. So with that being said, we will just strengthen our leading position in Southeast Asian countries and some Middle Eastern countries. So these are our leaders I'll look for in Nemo TV. And Catherine will take the other question, of course. Thank you, Thomas. I think with Mr. Don's remarks on our growth strategies in 2021, we believe the users and revenues will continue to increase this year. In terms of gain versus non-gain strategies, obviously our focus is still on gain content, as Mr. Don just mentioned. But of course non-game content is also an important part for our monetization. So we will continue to invest in game content to help us to grow more users and we will also invest in the non-game content for us to improve monetization. But of course for some of the non-game content categories if we see them grow to a certain large scale we will We were also trying to invest more in those content categories and potentially cultivate for new users in the future from those content categories. Hope this answers your questions. Thank you. Next question comes from Lei Zhang from Bank of America, Maryland. Please go ahead.
spk03: Hi, good evening. Thank you for accepting my question. I have two questions. The first one is to ask Mr. Dong to help us look forward to a big competitive environment in 2021, especially with some of our opponents. Their growth is not the same, so how do we look at the opportunities and challenges that competition may bring in 2021? The second one is because you just mentioned that there may be some Thank you for taking my question. Two questions here. First, can you give us some outlook on the competitive landscape in 2021, especially in game streaming space? Secondly, since you mentioned your investment in esports and video-related content, so can you give us more color on your content investment plan in 2021? Thanks. Let me answer this.
spk00: It's like this. Video platforms are faster. Right. Yes, in fact, our game live streaming platform, our professional content, professional live streamers, live streamers, live streamers with high quality live streamers, right? And then we're in this, this, this, this, this, this, this, this, this, this, this, this, this, this,
spk02: All right, as a completion, we're going to get our competitive landscape question, especially with those new entrance, those video platforms. We would like to say that for those video platforms, like and , What they have been doing for their live streaming business is to convert their existing VTubers and video users to the live streaming broadcasters and live streaming users respectively. But the last benefit blocked by the conversion period has already come to an end, I would say. Going forward, for them, I would say they don't have to enter into the period of trying to cultivate a better and quality pool of the block catchers and construct their own ecosystem for the live streaming business. And we believe HUYA is at a leading position compared with those video platforms, especially on the quality content and the quality broadcasters, especially our monetization capabilities. Those areas we are superior to all those video platforms, I would say. So basically, we think the competitive landscape with a lot of streaming business hasn't really changed much. And Catherine, we will take your other questions. Thank you, Lei. In terms of the content investments, this year we will still focus on game content, such as obviously one important factor is the esports tournaments. we are pretty much going to have comprehensive and pretty much all, most of the important esports tournaments. And we will also increase the self-made content to help grow our users further. In terms of video, this year we do plan to add additional investments into game video for future user growth. And we believe that if we could have a successful video business, this will not only pave the way for future user growth, but it can also be a monetization opportunity in the future. Hope this answers your question. And next. Thank you. Our next question comes from Alex Liu from China Renaissance. Please go ahead.
spk05: Okay. I have a question about the cooperation with Tencent. As Mr. Guan mentioned, we have a large number of users who are from the product line of Tencent. Mr. Guan, can you share with us how Huya and Tencent will continue to expand and grow this part of the user base? And secondly, what is the plan of this part of the user? And how should this part of the user think about the long-term transfer potential? Thanks, management. In the prepared remarks, the management introduced that, you know, there's a sizable group of users that come from Tencent property right now, and this is not really in our reporting MAU. Could the management share some color on how to further grow this group of users, and how should we think about the monetization roadmap and the monetization potential for this group of users? Thank you.
spk00: In 2020, we have already introduced more than 20 new games on Tencent, as well as some products. Yes, including Galaxy, King of the Galaxy, and, of course, these products include V-Games, WeChat games, and so on. During the Spring Festival, we also tried to cooperate with WeChat. Yes, and this year, there may be some things that will push Tenjin forward. The first thing is that we have been talking to Tenjin about the 5-year LPL copyright. The most important part of this contract is that we need to explore it together, based on the format of the tournament. Because overall, Right.
spk02: All right, as a translation, I will provide just some updates about the ongoing collaboration that we have with Tencent. By the year end of 2020, we have actually connected to Netflix streaming content across almost 20 games of Tencent and also several Tencent products that include League of Legends, Honor of Kings, Cloudfire, and products include WeGame, WeChat, game live streaming mini program, mobile QQ gaming center, and earlier this year during the Spring Festival, we actually cooperated with WeSee, the short video platform of Tencent, and we have cooperated with them during the Spring Festival. Currently, The traffic blocked by those external Tencent links is not counted in the quarterly reported MAUs of hours. In the first quarter, the external Tencent links contributed to around 20 million MAUs, which is relatively lower compared with Q3. Q3 is the school holidays, school summer holidays. And in terms of the collaboration on the gaming side with Tencent, we actually have just signed a five-year licensing agreement with PGA Sports in terms of the broadcasting rights of League of Legends, Professional League, LPL for short. Specifically stated in the agreement, we actually have discussed with the TG Sports in terms of exploring more opportunities to better monetize esports tournaments. As in the old days, esports tournaments is actually serving as a major traffic engine that brought a lot of users, but it contributed a little to monetization. which is why we're trying to work with PGA Sports, the esports tournament arm of Tencent to seek more opportunities on the esports monetization side. And in terms of better engaged users, we are trying to work with Tencent to integrate, to bridge through users' Tencent Gain ID with their Huya account to provide better cross-functional or a cross-platform experience for them, just so that we can provide personalized recommendations on precise targeting at those users, so that their user experience can be improved. Thank you. Our next question comes from Tian Ho from TH Capital. Please ask a question.
spk01: Good evening, Ms. Guan. I'd like to ask two questions. One is about the content of the game, the content of the live broadcast. Because we are now part of Chongqing, and the main game that brings us traffic and revenue This is the first question I want to ask. Secondly, after looking at our development over the past few years, I feel that the growth of gaming live streaming has reached 30% in the whole year. So the driver rate is more than 20%. Looking back, in which areas should we make more investments? So two questions. One is I feel like somehow whatever brought us the major users and the user growth were the gains from Tencent. And is that possible for us? to bring in the games from other vendors domestically and internationally to further grow our user base and paying user base. That's number one. Number two, you know, as over the last many years, Huya grew pretty rapidly, felt like already past its peak. And however, the game broadcasting industry relatively still young, you know, in which area Huya is going to invest for the higher growth in 2021?
spk00: so so so so so so so so so so so so so so All the game companies, right? Our full-scale cooperation. This may be more diverse overseas. Yes, I think this is more of a result. It's not our goal. Yes, this is one. And then we said this year. In fact, the investment in the New Year's Eve. Maybe it's this one. On the one hand, overseas, we still hope. Yes, we can slowly pay off our losses in terms of finance. The growth of revenue in Taiwan is still very good. Yes, this is one piece. And then the domestic business is also to say, whether it is out of defense or offense, it is the video of the game, including what I just said, the video of the live broadcast is what we are going to do this year, or even in the next one or two years. Yes, I think this battle, the battle of Huya in the video game, we still hope to be able to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to, to,
spk02: Alright, as a translation, in terms of your first question about whether there is a future for us to broadcast specifically on Tencent games, there actually is not. Currently, Tencent games are the best-performing games in the market, especially in the domestic region. So it is more of a result of the current industry situation rather than the purpose of our activities in the market. And speaking of the investments for this year, I will start with the overseas market. As we always do, we hope the overseas market one day can achieve a great even point. And we think it's quite promising because the revenue growth of the overseas market is actually on a surge right now. And for the domestic market, like we said earlier, we would like to strengthen or build up our economy in general, specifically on the video business. You can consider it as a defensive or more of an aggressive move for us to try to make the video business prosperous. And we aim to grab some certain market share for the video business in the industry. In addition to the video business, whether it's quote gaming or other new initiatives, had a wide span in terms of the effort moving. So, yeah, seems like that's not an issue. All right, thank you. Your next question comes from Vincent Yu from Needham and Company. Please ask your question.
spk04: Okay, thank you, Guan Licheng. I have two questions. The first one is that I saw that Chongqing will also release some games in 2021. I want to ask about our views on these games. How much do we think these games have an impact on us? The second question is actually about the monitoring, especially the live broadcast monitoring. I want to ask about Guan Licheng's opinion. Let me translate it. Thank you, Maren, for taking my question. My first question is about the 2021 game releases by Tencent. There are several flagship mobile games will be scheduled to release by Tencent in 2021. Which game launches in 2021 does the company think will have the biggest impact on Huya? And the second question is on the regulatory guidelines. Can Maren share some comments on the potential impact on our business with regards to the regulatory guidelines issued back in November 2020. Thank you.
spk00: And Huya has been in the industry for a long time. We are very successful in the mobile game industry. So we are very confident that after the two mobile games on the top, we can continue to stay in the lead. In fact, whether it's DnF mobile games or InfoLimit mobile games, in fact, our live broadcasts and our content preparation, our ecological preparation, So you have a first question regarding the new games. Actually, there are several games that we consider as a potential blockbuster games for the year.
spk02: The first one is CMF Mobile. The second one is League of Legends Mobile. And probably there is a chance for them to be potentially launched in Q2 this year, so it's probably a little bit late. But consider us as an industry-leading platform, especially quite excelled at promoting new games. We are the record-kicking one platform to promote and operate new games and attract users to the platform and also to the games. So we have confidence that with the launch of those new games, we can continue our industry-leading position. And even though it's being launched a little late, But we're actually starting the preparation period as early as last year in terms of recruiting new broadcasters and constructing the game, designating game related ecosystems. So we are, we really look forward to the launching of those new games this year. That's my first question. Thank you, Vincent. And for your question for the government regulatory changes, as you have been probably reading news, since I think the beginning of 2020, there have been a lot of the government's attention on the industry. And we have been closely monitoring and following the regulatory guidelines. And currently we are still waiting for the details of the potential new guidelines to come out. And we will definitely follow the government's new guidelines and rules when it comes out. And so for the moment, we believe that the government's guidelines would better regulate the industry and potentially for the long-term healthy growth of the industry. So we believe that even if there might be some short-term changes to follow the rules, the long-term impact should really be minimal. But of course, we will wait for the details of the new guidelines and update investors at that time. Hope this answers your questions. Thank you all for your questions. I'd now like to turn the call back to the company for closing remarks. Thank you all for joining our conference call today. If you have further questions, feel free to contact irathlete.com and we look forward to speaking with you in the next quarter. Thank you. This concludes this conference call. You may now disconnect your line. Thank you.
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