Kuke Music Holding Limited

Good morning and good evening, ladies and gentlemen. Welcome to KUKA Music Holding Limited Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will be hosting a question and answer session after management's prepared remarks. I will now turn the call over to the first speaker today, Ms. Jane Zua, Investor Relations Director of KUKA Music Holding Limited. Please go ahead, ma'am.

Thank you, operator. Hello, everyone. Welcome to our fourth quarter and the full year 2021 earnings call. On the call with me today are Mr. He Yu, founder, chairman, and CEO, Ms. Patricia Sun, president, and Mr. Tony Chen, CFO of KUKA. Mr. Yu will share our views on the business model and strategic focus. Ms. Sun will then review our business operations. And then Tony will discuss our financial details. Afterwards, we'll take questions from the audience. Before we start, please note that this call may contain forward-looking statements made pursuant to the safe harbor provision for the Private Securities Litigation Reform Act of 1995. These forward-looking sentiments are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the result performance or expectations implied by those forward-looking sentiments. All forward-looking statements are effectively qualified in their entirety by the cautionary statement, risk factors, and the health of the company filing with the SEC. The company undertakes no duty to revise or update any forward-looking statements for selected events or circumstances of the date of the conference call. As a reminder, this conference call is being recorded. In addition, A live and archived webcast of Conference Call will be available on KUKA Investor Relations website at ir.kuka.com. You can check out our full earnings release on our IR website as well. It's now my pleasure to introduce Mr. He Yu, founder, chairman, and CEO of KUKA.

Thank you, Jen. Good evening and good morning, everyone. Thanks for joining us and welcome to our fourth quarter and full year 2021 earnings call. We finished the year of 2021 with strong financial resources. Our full year revenues reached RMB 302 million, representing an increase of 85.4% year over year. especially our copyrighted classical music licensing revenue reached an all-time high to RMB 88.2 million. We continue to make good progress on multiple fronts, including the copyrighted classical music licensing segment, the smart music learning solution segment, and our investment in NFT platform Kolo. With almost 15 years in operation, Cook has become a leading classical music consumption and learning platform, leveraging our rich copyrighted classical music content. At the core, we continue to explore and expand our operations. As we have mentioned in the third quarter's earnings call, our music learning solutions segment will place greater focus on working with public kindergartens, primary and middle schools to further diversify our customer mixing light of the current regulatory environment. Our smart music learning solutions segment continues to grow. contributing to over 50% of total revenue during Q4 and 40% of total revenue for fiscal year 2021. Looking ahead, we are confident in the growing demand for smart music education from public schools. our sales and marketing force for smart music learning solutions focusing on primary and secondary schools, which will prepare us to gain greater market share in this growing segment. As a leading classical music consumption and learning platform, we have full confidence in our growth outlook as China's budding classical music industry continues to thrive. as we continue to strengthen our core business. We are also actively pioneering new paths to enhance our monetization capabilities and our position across the value chain in the classic music industry. Recently, we invested in Kolo, which is a leading NFT platform for classic music. We will continue to focus on driving innovation in the classic music industry through technology and to create synergy with our ever-expanding classic music content library. Next, I will pass it over to our president of Cooke, Patricia, to share more details in each business segment.