Netdragon Websft Unsp/Adr

Dear friends, good morning. Thank you for joining NetDragon Web Top Holdings Limited for our 2024 Annual Results Presentation. The presentation will be broadcast on RocheChina, Quito, and Wings platforms. The report PPT is available for download on our company website at ir.netdragon.com under the Webcast, News, and Events tab. Before the start of our presentation, please allow me to introduce the management who are joining us today. Dr. Simon Luo, Group Vice Chairman and Executive Director. Hello. Mr. Wood Lau, Group Interim CFO.

Hello, everyone.

Mr. Lin Chen, Group Senior Vice President. Hello. Thank you. Now, let's pass our time to Dr. Simon Luo to host our presentation today.

Okay, thank you. It's that time of the year again. Thank you for joining our call. wherever you are, so good morning, good evening, good afternoon, and all that. Essentially, what we're going to do today is actually not only taking you through what we have done in 2024, but also look forward to 2025. I think there's some exciting strategies that we have. We have our press release, and throughout this call, you will hear a lot about how we're going to be embracing AI as our future, which is actually the right thing to do. I think all along we've been looking at AI more from a supportive kind of perspective, i.e. helping us to maybe cut costs, managing our business a little bit better. But we have decided last year that we're going to be all in. So we talk about how we can help managing our costs and at the same time creating products around the world that we can help us to grow in the future. This not only applies to our core business, gaming and education. We're going to make an announcement later on today on one of the very exciting venture that we're going to have all around AI with our own IP. With that, I'm going to go through the quick highlight of our two businesses. One is gaming, the other one is education. On gaming, I said it many times, we're going to be doing AI and gaming, actually, if I can go over to education, we're going to do AI and education at the same time. So not only we are using it to reduce costs in the gaming side, you know, in both development and also creating great graphics. What we're also going to do is actually really focus on extending our light, which is our evergreen IP. on your demon, which Lin-Shan is going to take us through in more detail. On the education side, it's unfortunate that we're facing some headwinds, both in the U.S. and in Europe for many different reasons. So, by the way, you know those are our two strongest markets for education. U.S. is just a lot of things. Inflation has been bothering us for the last two years. the uncertainty of the budget allocation because President Trump wants to suspend the Department of Education, so there's a lot of unknown. The good news is actually the money is actually still there. The question is actually how it's going to be passed on to the state and then subsequently to the district. Same thing applies to Europe with a war going on in Ukraine. And Russia, a lot of election going on, for example, like Germany. The good news is actually they form a government and they have a big budget for education. And Germany is our number one market in Europe. So that's like at the end of the tunnel. So we do expect continual headwind in 2025, but we do expect a recovery in 2025. I'm sorry to be a little bit more windy, a long winded on those subjects, but I think it's key for you to understand. One very exciting aspect of our product is that you relaunch active panel 10, which we call AP10, which is a modular architecture. Actually, we took the computing device out of the screen that allow us to view in terms of how we configure the product. We can go with Android, we can go with Chrome, Windows, and even Mac. So it's actually depending on the customer's requirement. At the same time, we have a device that we can deploy a lot more services on, which is actually the thing we call CAS for the last few years, and we can continue to take advantage of that. Of course, AI and education, that's also the services that will go into that box. So very exciting stuff. At the same time, because of the headwind, we really try to manage our P&L and also our balance sheet. So we have done a bunch of work, and you read the detail. We're going to be very prudent in terms of how we manage our balance sheet. Okay, I'm going to talk a little bit more about 2025 later on. I'm going to stop right now and turn this over to Wood, our new interim CFO.

Thank you, Simon. to use the financial property ledger to you. And our gross margin is up 3.3% to 16.5% from 2%. And our EBITDA margin is going up 4.8% to 23.4%. And our public property is up 90% to 759 million RMB. So it demonstrates that even though we dropped in the revenue, but our probability is still there. And our net cash is increased 30% to $2.1 billion. And our operating cash flow, we want to highlight here, we have in six consecutive years over $1 billion operating cash flow, which demonstrates our business model is sustainable. And finally, the dividend, we have declared a $2.5 billion for each share with me. We have a 7.6% dividend yield based on yesterday's share price. And here are some key financial highlights. 6 billion which the gaming and application services due to the proactive optimization efforts to respond to the market demand our gaming and application services dropped 6% to 3.9 billion and the revenue for mine is still on the transition period so the revenue is dropped by 17% to 2.1 billion but our gross margin is still improved from 3.3% to 65.2% and the Opest which remain stable with the op-ed is around 3.3 billion, which is about the same in the last years. And we remember that we increased our AI initiatives to control the cost. So that means we take and pace the cost optimization in the last quarter of 2024, which means the cost saving will be expected to materialize in this And our EBITDA margin profit withdrawal test is going up in 2024. And one point we want to highlight here is the taxation. The taxation, which includes a one-time long-cash deferred test commission expenses of $452 million, which may lead to the operating result of the mine, which is not successful, not loss-making in the previous year, which means the loss carried forward in the deferred test has been making impairment provisions. Be in mind, this is a provision, so that means if the line performance is improved in the future year, this provision may be able to reverse that to our P&L. And cash flow, real estate will open in cash flow and increase the cash basis, so that's why we have increased our dividend for shares from 0.4 to 0.5 in this final dividend in this year, which marked a 25% increase. Turning into segment, and most will be highlighted in the before, and one is the gaming represents about 87% of our gaming and application services. And as mentioned before, automation only can be paid in the last quarter of 2024, which means we will be delivering a full-year cost-saving impact in 2025. That means it will be a quite good position for us too, going forward financial performance. And for mine, one percentage point due to the lower credit cost and the price charge cost. And our segmental expenses, which means, you know, one highlight here, we exposed our GHI Singapore last year, which means, you know, in this figure, we include about 10 million US dollars in the last year in the MyBusiness. So if you take a note, actually the OPEX will be dropped about 3.4% in the compared year 2014. cost saving taking place in the mine level as well. We want to highlight here that since IPO we have been declared a lot of the dividend in the past which has already surpassed 80 Hong Kong dollars since our IPO which our final dividend also increased 25% YOY to 2.5 Hong Kong dollars per share which means we are wanting to share our return to our shareholders. In summary, you know, 2024 was a year of the mixed financial performance and our strategic execution and enhanced shareholder returns. And it will be marked a good position for us going forward. Thank you for your attention. Now I'll turn to Lin Chen for talking about the gaming business.

Okay. Hello, everyone. I'm Lin Chen. I'm very happy to introduce the performance of NetEase Games in 2024. Next slide, please. The online game has made a good progress in terms of AI games last year. In fact, we have already started to use AI since last year. Last year, we achieved a good result from two angles. The first one is the extent of our cost-effectiveness. From the perspective of the developers, we have reduced 14% of the developers in 2024. This is also the actual cost-effectiveness. AI can help us enhance our gaming experience. At the same time, in terms of AI applications, we have also discovered that there is a great opportunity in the future. From the point of view of downgrade, we will surround the ability of AI to build our organization, to build our AI development line. We expect that in this year, 2025, we will have a greater breakthrough and achievement in downgrade. At the same time, in terms of innovative game experience, we will still surround our smart PCs, to improve and innovate our new user experience. Especially on the MNO track, the open world, how to create a new game experience through the construction of smart PCs, including AI-generated content and games. This also makes us very excited. At the same time, the high-quality content of our IP will also be of great help in the use of AI. From this picture, you will see that from the beginning of the previous year, We are using it on a single large-scale AI model or a split AI. It can gradually improve our development efficiency. But from the beginning of last year, we found that the entire game production chain constructed from AI intelligence will have the opportunity to expand the production and production of the entire game industry. So since last year, we have gradually constructed AI intelligence as the core of our AI capabilities. including our knowledge library. It starts from a single step to a complete AI production of the game. In the future, if we need AI organization and AI production line, we have a chance to achieve AI-driven AI production in the future. This will greatly improve the output and efficiency of the entire game. This is also the biggest opportunity we need to secure on the AI opportunity window.

Okay, next slide.

So AI, games are an experimental product. AI is very helpful in our software development. Especially in our experience, we will have a very big improvement. Traditional game experience may be linear, and it will be consumed quickly. With AI, we have the opportunity to create a more realistic and future-oriented experience. This is the most important core capability for a gaming company.

Okay, next slide.

Next, I will introduce our IP. In terms of IP, our core goal is to create a long-term IP that is healthy and long-term. First of all, it is our domain IP. In the second half of last year, we took the initiative to make some adjustments from the point of view of the industry, including the operating channel. These adjustments are mainly to better optimize the environment and operation of our core users. From our data, although our income has been affected, but as the core part of MMO games, the activity of our users .

. .

. OK, next slide. Our high-quality content continues to ensure the growth of our game. From last year's Lunar New Year's Eve, we achieved a good result. From Lunar New Year's Eve to our Spirit Beasts to our Star Beasts, the content of these high-quality content, through the output of these high-quality content, we continue to increase the proportion of consumption in our content. This part is also a very good maintenance for our user brand and our reputation.

Next page.

In this year, we will continue to introduce as many high-quality content as we can. From engineering, from our culture, from our point of view, . . The game has a great advantage in terms of content. From the perspective of visual and interactive expression, it is better to generate a core experience in our painting. At the same time, it can better gain users' and society's recognition. This is what we will continue to strive for and focus on in the field. From the perspective of two-dimensional game data, from the most important core business model and consumer content, Our consumption rate, from last year's New Year's Eve, which is our Lunar New Year's Eve, to this year's Chinese New Year's Eve and Chinese New Year's Eve, our users' consumption rate has increased significantly. This is also due to the influence of the economy last year. The consumption concept of the entire user and some changes in the consumption concept of cultural content make us take the initiative to reduce some consumption strategies, including our prices, including our user thresholds. This will also significantly improve our entire consumption rate. For an MMO game, if the user continues to pay for the game, then it will also have a significant change and help for a good long-term ecosystem and our flow. We believe that under these efforts, our entire MMO IP will maintain a long-term stable trend. Next slide. This changes from our next IP, the IP of our soul, to a significant data change. Our soul IP actually fell in the past two years. In the process of falling, we actually caught two important points in our content and our long-term business. Through our market and content efforts, we have confirmed that We have achieved a continuous and stable growth. We have gained a lot of confidence in the long-term operation of the soul-based IP. From the mid-annual date of January this year, all our game data has reached a three-year highest value and gained a significant growth. We believe that in our long-term IP, as long as our content strategy and operation strategy is correct. It will definitely bring us a continuous growth in terms of long-term income and users. Next slide. In terms of overseas growth, we have brought some of the strategies that have been successfully verified in China to overseas companies. For example, we have double-disk communication on PC and mobile phones. It has a very good effect on our users' new data and long-term flow. At the same time, Thank you. On the new product line, based on a long-term game strategy, we have optimized our own product line. Some of the development content and resources have been incorporated into our more important long-term game development team, which will better improve the operating effect of our current existing game. On the new product line, from the point of view of the MoYu IP, the most important thing is our MoYu reset, which is our MoYu re-opening project. In this year, we also did external user flow test. Its data surpasses our expectations. This also proves that this year, we have a chance to push this product to the line and get a better result. Our next generation of MOU-B1 product data has also reached our expectations in terms of external testing. At the same time, with the changes in the market, So we observed the user phenomenon in real-time, and then launched the Magic IP Magic Legend, a small programming game. It was launched last year, and it has the lowest volume cost on the entire product line. At the same time, it has a good layout for IP user maintenance.

This year, we will also do better promotion for it.

In terms of the new game, whether it's Dragon or Star Wars, Dragon has already signed an agent, and Star Wars is also continuously polishing our core experience, getting a better user feedback. At the same time, we also have our code NW facing the future of the open world MMO layout. So, from the perspective of the entire product line, we will check the trend and change of the market in time to optimize our product line. By believing in the layout of the long-term game and the maintenance of the entire IP, we will have a good light for a new game in the future. In summary, in the entire business of the online game, based on the strategy of the long-term game, AI's input and use, AI can help us to continue to reduce the cost and efficiency, and to promote more quality content for our users. At the same time, with the help of AI, we can continue to support our long-term gaming strategy. We hope that we can compare the first half of this year with the first half of last year, Okay, thank you, Linton. Go get some water because we need you back in the Q&A.

So just a question to Linton's presentation. He has mentioned AI so many times. So you'll just hear it as a continual theme for us going forward. Okay, I'm going to take you through very quickly high level on mine.ai because it's actually a company listed on New York Stock Exchange. So I don't think I've been going through too many details, but I think it's good as a shareholder. I'll take you through what we've been doing. So next page. Revenue is down because of the headwind, but the good news is that you have done good cost management. Freight is down, materials down, operation is down, and we have also... rationalize our employee cards. That's why we can achieve higher gross margin and all that. Continue the theme of AI. This is our opportunity going forward with 1.5 million classrooms around the world. Our ability, which we will talk about on the next page with our new architecture, we can put AI services into the classroom, allow teachers and students to interact much more effectively. Next one. This is our AP 10. I talked quite a bit about it during the highlight, just to give you a visual of what we can do. We can configure it in many different ways, which is that covering the entire classroom, allowing teachers and students to interact. Next page. This is a continuation of why we are doing the AP 10. because we can unbundle basically the brain from the panel that we can deploy more services. Actually, we started doing it in 2024. That's why you can see we're building up our recurring revenue upstream. We will continue to do that in 2025 and onwards. AI, again, is a big element of that. Next page. We'll talk a little bit about it. have your attention that we are doing a lot of clean up of our balance sheet and also get ourselves structured in a way that we can take advantage of the capital market in the US when we need to. So with that I'm going to go into the outlook for 2025. The first one I want to take you through which is actually very exciting for us. is our partnership with a company called Wenger. We have signed a term sheet with them. They're going to be investing 75 million, not limited to, by the way, it's actually 75 million RMB of cash and AI assets. Cash is actually important, but the key on this one is actually the AI assets that they're going to put into the company. I think this is actually a match made in heaven. It's actually Wen Ge, it's actually a spin-off from Zhongke Yuan. They have a lot of technology, which I will talk about a little bit later on. They're going to put the IP into this company, and we're going to be working exclusively on market outside of mainland China, i.e. Hong Kong, Macau, and the rest of the world. It's actually AI is going to be a key on this one, which is the technology part. But CherryPix, we've been working with a lot of major customers in Hong Kong, government, Hong Kong airport, MTR, and also we're going to take everything out to the rest of the world. So it's actually a match between IP and AI and the ability to execute and deliver not only in Hong Kong but around the world. I forgot to talk about we also work very closely with the Hong Kong government, and also one of the software that Charitex has worked on is PayMe. I'm sure a lot of you, if you're living in Hong Kong, will feel that a product for Hong Kong Shanghai Bank. Let me talk a little bit about Ya Yi. I mean, it's actually, if you go to the chart on the right-hand side, it's actually something that we own in the company outside of China. It's actually, if you've been tracking the large language model, of the AI agent tests. So yeah, he has been moving up. So if you look at the ranking, it's actually the only rank behind some of the very notable large language model, GPT 4.5, Gemini, DeepSeq, Kimi, and then it's us. So we are very excited about it. I think what we're going to do is we are going to leverage this IP and focus on certain verticals, i.e., industries, including education, by the way. I mean, actually, that's going to be very exciting to see how this venture can help us in AI education going forward. Next one. I think the chart probably a little bit misleading, so I apologize on that one. Let me give you the gist of all this. We are going to build our AI plus content creation strategy. This platform will support both gaming, which Linton talked a lot about, and also AI educational gaming, which I talked about many times before. So that AI educational gaming is actually spanned across Mind.ai, plus what CherryPix is going to do and all that. So I think that's going to be extremely exciting. Okay, with that, I'm going to end on the depth of the outlook for this year. On the gaming, I kind of repeated what Vincent has been saying. Our strategy is AI plus gaming, so we can help with our costs, not only just on graphics, but also on coding. We're going to make sure our evergreen IP will continue to grow. So very important for us. For mine, I think we'll continue to optimize our cost structure, and then we can set ourselves up for success when the market returns. I did say when, I didn't say when. Last but not least, I think we're going to be really focusing on shareholder return. So simply put, we're going to continue to look at our dividend strategy and also the possible buyback of our share in the market at the right time. With that, thank you for your attention. Thank you for bearing with us. So we're going to open it up for Q&A. Thank you.

Thank you, Simon. Now it's our Q&A section. You're welcome to raise questions in two ways. To raise questions through the teleconferencing system, you may press star 1. Star 1 on your keypad, and our operator will break you through. Second, if you would like to raise questions via our webcast platform, please enter your question into the QA box on the right-hand side of your screen. Let's welcome our first question from the teleconferencing system. Thank you. 目前暂时还没有电话会议上面的问题,我们先接入第一道来自于路演中网上的问题。 That's a very good question.

So we like it because we know what they're focusing on. And by the way, I mean, we've been working with them even before we're talking about getting together. So we have experience with them. Obviously, if you look at the ranking of Yiayi in the market, it's actually moving up, so we'd much rather work with somebody who's up and coming, which is actually a little bit smaller than we work together to really focus on certain industries rather than working with GPD 4.5, which they are trying to approach the wider market. Where we are right now is actually we have signed the term sheet. We're moving towards on the SPA. But that doesn't mean we are not working together. So I can't go into detail, but I think there are a few exciting projects that we're working on. Hopefully at the right time we will be in front of you telling you the good news of those projects. Thank you.

Thank you. Okay, well, a very good question.

And then if I may point you to what Wood has done, he said you need the last page of his presentation to give you a little bit of history on what we have done. I also point you to my closing comments. When I was talking about the outlook, we're going to be looking at how we can return the value to the shareholders. So I expect we'll continue to have dividend paying back to our shareholders. And at the right time, we will definitely look at buying back.

Thank you, Simon. Thank you, Simon. Okay. You go first.

Okay, let me first introduce our new product plan. As you can see from the PPC, the first important channel is our Moe IP. Our Moe IP is the product that Moe introduced. It will be launched this year. This is a project with strong certainty. In the future, we will see that small game programs have a significant increase, so we have seen better opportunities in small game programs that have already been deployed. In the future, if our data is good in the small game program, we can also use AI ability to quickly upload more products. Next, on the new products of other IPs, . . . This is our new project.

Okay, Mr. Hua, I will continue to answer Mr. Lin's question. Actually, AI is our theme. So, with AI games, we actually have AI plus education. Actually, education is also a game. We can do some interaction. So, as I just said, the entire production line of AI actually covers our games and education. So, That effect will be more obvious, I think, in that aspect. Of course, our services, whether it's games or what we call Cast, can also be displayed in our new product, the AP10. But it's not limited to the AP10. In fact, we can put those new, whether it's AI, Thank you, Simon. Thank you, Simon. Thank you, Mr. Lin. The next question is from Sun Mengqi from Jiao Ying International.

Now, please ask the management team how to look forward to the next performance of MoYu.

Mr. Lin,

Okay. So I'll introduce it in depth. Moyu is an MMO game. The core of MMO games is its usefulness, flexibility, consistency, and ecology. This is the core of MMO. In terms of income, because of some strategies and commercialization, it will have short-term fluctuations. So from the introduction just now, the stability of our entire Moyu IP users China China

Thank you.

Why don't you do it first and then Vincent can talk about it. Yeah.

Okay. English or Mandarin?

I think it's Mandarin.

You go first.

Okay. In the last year, I would like to introduce some factors. As I mentioned before, we have made some adjustments according to the changes in the market. They can be divided into several dimensions. The first is in terms of commercialization. I'm not sure that she's not thinking that you can't you don't have to be she quite awesome she can't do so much you don't do you see things out of the show I don't have to pay them who can't do this is time to jumpy I'm not done with the father she's a little bit of a little bit of a little bit of a little bit of a uh... uh... These short-term effects will have a negative impact on our income. However, we can see that the current situation is understandable.

Moreover, it is for the sake of the future of the entire MOU IP to be able to continue to do what it has to do for the next 10 to 20 years. Thank you. Thank you, Mr. Wu. Let me answer the question about the D&T. In the leadership of the leadership, there is a one-off, one-off, one-off, one-off, one-off, one-off. What is it like? It is because it has a lot of losses. So when we were discussing with Steve, we wanted to make the previous year's tax law, which can deduct the future taxable income, a real estate, a land asset. So we wanted to make it an impairment provision, which is a preparation for a point. So I just mentioned that this is a one-off. It will all be done in the future, in the future, in the future. um um

You can have a moment so that you don't see you. Okay, crazy crazy. And then we need you to find out what I'm going to go balance sheet. So this is what I did. We got on. We're going to do a fiscal management. That's what we're going to do. And you're going to be sure. So it's a good thing. You're going to be. You're going to be. You're going to be. You're going to be.

Our next question comes from Victor Koo from Lumiere Capital. Actually, this question we have answered already, but I will just repeat it. Why did the GameCore profit drop so significantly from $88 million in 1H to $237 million in 2H 2024? Can we expect a meaningful rebound in 1H 2025?

Just to repeat what Linxin said, this is a proactive adjustment we're taking for evergreen IP so that the revenue is taking a strong breath in the for the second half and for this year we expect the HO over H will be a little bit at this fret in the first half and the second half because of the new gaps coming in and the adjustment taking place in the second half in the last year so that means the second half will have the bounce back to our revenue or the core segmental performance. So once again, you know, the first half, because the adjustment can be in the last year, second half, so that means first half will be still a little bit, you know, throwback in the first half. But the second half will be helpful again in the future.

Thank you. Thank you, Wood. Next is a question from Guo Zheng, an international analyst. I would like to ask you about the mind business. Our mind business's income has dropped in 2024.

What are the specific measures to achieve the return of the income in the future? First of all, there are two reasons for the decline. One is that the market is, as I said at the beginning, we actually intend to sell our strongest market to the United States and Europe. There is uncertainty of the budget. In the past few years, because of COVID-19, they have given a lot of money to students. So we expect the cycle, the replacement cycle, to come back. So this is one aspect. So later I will say, we expect the market to come back in 2020. So this year is going to be more challenging. The second is the year-over-year. Because we put some of our business in the year-over-year. 我们要做那个觉得 往那个recurring revenue的方向去发展 会比较健康 因为我们有一个1.5% ah, ah, ah, ah, This is also another direction. So last year, we built up about $5 million of SaaS revenue. So we will continue to grow today. The advantage of SaaS revenue is that it is slowly built up. It is very different from the business of the United States. So we don't run together. Another key is our APTAN. Because APTAN, we took the OPS to the outside of our machine.

所以我们对deploy services那个方面会比较方便 所以这个也是我们以后一个growth的factor 谢谢Simon 接下来这条问题是来自中信证券的分析师 您刚刚其实也部分回答了他的问题 他也想再请问一下2025年我们在教育硬件跟SaaS上面 有没有一个清楚一点的guidance

Thank you.

I would like to remind the investors, if you want to ask questions through our online platform, please enter your question in the question box on the right side of your screen. And if you want to ask questions through the phone system, please dial the new 1-1-1. Thank you. The next question is about our AI issue. There is a question from Mr. Qiao. He wants to know that education AI is a major economic promotion. I know that you have some ideas about education. Can you explain more about education AI in detail?

Can you explain more about education AI in detail? Because our main business is games, so we say AI games plus AI education games, so we can spend a lot of energy there. In fact, we can leverage our development in games to do some games for students who are interested in interacting with them and learning together. This is one aspect. In addition, many of the things I just mentioned are in our classroom. So we can put a lot of AI services in there. For example, we can help the teacher with the class, or change the homework, or he can help with the content everywhere, and also help the students. The most important thing is how you interact with the teacher. Because if we have AI, we can help the students Thank you, Simon. We see that there are still some questions on the Internet.

Okay.

I think AI can help us to enhance the gaming effect and gaming experience. In terms of gaming effect, AI is providing better user service in some lost areas. In creating more dynamic content, including new features, it has already clearly achieved that effect. In the future, this part will gradually be enhanced. In terms of new games, the first is the smart PC that I just mentioned. Because what we are most good at is the MMO track. The most important thing about the MMO track is the sense of contribution and the social interaction of the user. In the past, the content produced by us was limited. It is actually more of a closed system. In terms of AI, it is good for the authenticity of our entire world structure. The content of the interaction experience and the authenticity can be significantly improved. In terms of AI games, I think it will be a great opportunity in the ML world. I just mentioned that in the past, social media may have been associated with people. At this time, if it is competitive, some people win and some people lose. In fact, it is difficult for it to control and give all users a good experience. With the help of AI, . . . .

AI can help us achieve this. Thank you. Thank you, Mr. Lin.

Next, let's move on to the last question of the day. This question is about the cost control in 2025. I want to see what are the strategies for cost control in 2025, and is there a real goal?

First of all, in terms of cost control, we have been working on it. So last year, we have been doing a lot of work on the number of employees, or how to use it. AI来优化我们很多那个事情 因为举个例子啊 现在我们有可能很多的 无论在游戏教育 只是用AI来帮我们写程序的 已经是很普遍的一个事情啊 那个做美术也是 我觉得我们那个做成本优化 In a world where the economy is more challenging, we will definitely look at how to reduce costs every day. We will definitely do this. Whether it's in games or in education, there will definitely be AI in it. Because I think when we look at AI, 你不拥抱它了,就是以后生活会比较困难一点。 所以我们继续会做成本的调整。 好,谢谢三位。

Thank you. Thank you, Simon. Thank you, Wood. Thank you, Mr. Lin. Today, our press conference is over. Thank you, investors, for participating today. We hope you will continue to pay attention to the company. If you want to continue to communicate with the management team, please contact us to arrange a one-on-one meeting. Thank you. I wish you all a wonderful day.

Thank you. Thank you.