Global Mofy AI Ltd (GMM) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by, and welcome to Global Mofy Metaverse Limited 2024 interim financial results conference call. (Operator Instructions) Once again please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Mr. Celine Meng, Securities Affairs Representative. Please go ahead, mam.

美好的一天，感謝您的支持，歡迎參加 Global Mofy Metaverse Limited 2024 年中期財務業績電話會議。（操作員指示）再次請注意，今天的會議正在錄製中。現在我想把會議交給今天的第一位發言者，證券事務代表孟席琳先生。請繼續吧，媽媽。

Thank you, operator. Welcome, everyone, to Global Mofy Metaverse 2024 interim financial results Conference Call, covering the six months ended March 31st, 2024. Thank you, everyone, for joining us on such short notice. My name is Celine and again, I am the company's Securities Affairs Representative.

謝謝你，接線生。歡迎大家參加 Global Mofy Metaverse 2024 年中期財務績效電話會議，會議涵蓋截至 2024 年 3 月 31 日的六個月。謝謝大家在這麼短的時間內加入我們。我叫 Celine，我是公司的證券事務代表。

I will review prepared comments and then be joined for Q&A by our CEO, Haogang Yang; CFO, Mr. Chen Chen; and CTO, Mr. Wenjun Jiang. This is an exciting time of growth for Global Mofy. We're in the middle of a strategic transformation and we have made considerable progress since our last results call. We will provide an update today on our company's performance, financial results, and strategic initiatives. Following the presentation, we will open the floor to your questions.

我將審查準備好的意見，然後由我們的執行長楊浩剛參與問答；財務長陳晨先生；首席技術官蔣文軍先生。對於 Global Mofy 來說，這是一個令人興奮的成長時刻。我們正處於策略轉型之中，自上次結果電話會議以來我們已經取得了相當大的進展。今天我們將提供有關公司業績、財務業績和策略舉措的最新資訊。演講結束後，我們將開始回答您的問題。

During the Q&A session. We appreciate your continued support and interest in. Let's begin with the key financial highlights for the first half 2024. Before we begin the prepared comments, we remind you to review our forward-looking statements disclaimer and position as a full page of today's presentation and in the results press release we issued. These statements involve risks and uncertainties, that may cause actual events, results or performance, to differ materially from those indicated. For detailed information, please refer to our SEC filings.

在問答環節中。我們感謝您的持續支持和興趣。讓我們先了解 2024 年上半年的主要財務亮點。在我們開始準備評論之前，我們提醒您查看我們的前瞻性聲明免責聲明和立場，作為今天簡報和我們發布的業績新聞稿的整頁內容。這些陳述涉及風險和不確定性，可能導致實際事件、結果或績效與所示內容有重大差異。有關詳細信息，請參閱我們向 SEC 提交的文件。

As a reminder, today's conference call is being recorded and a replay will be made available later today on the company's Investor Relationship website.

提醒一下，今天的電話會議正在錄音，今天晚些時候將在公司的投資者關係網站上提供重播。

Financially, Global Mofy had a strong first half, achieving 55.3% year over year revenue growth with total revenue of $19.9 million. Our gross profit rose to $11.8 million, an impressive increase of 135.1%, and our net income reached $10.3 million, representing nearly 1900% expansion. Our gross profit margin for the six months ended March 31, 2024, was 59.3% and a net profit margin was 51.7%.

財務方面，Global Mofy 上半年表現強勁，營收年增 55.3%，總營收達 1,990 萬美元。我們的毛利增至 1,180 萬美元，增幅高達 135.1%，淨利達 1,030 萬美元，成長近 1,900%。截至2024年3月31日止六個月，我們的毛利率為59.3%，淨利率為51.7%。

These improvements are primarily due to the increase of a high margin in 3D digital asset business, which now accounts for 55% of our revenue, up from 38% in the first half of 2023. We also significantly expanded our 3D digital asset bank, growing from more than 30,000 in 2023 to over 100,000 as of March 31, 2024. This demonstrates our commitment to growing our digital asset bank in strengthening our market position. We will cover more detailed information in just a minute.

這些改善主要是由於 3D 數位資產業務的高利潤率增加，該業務目前占我們收入的 55%，高於 2023 年上半年的 38%。我們也大幅擴展了 3D 數位資產銀行，從 2023 年的 30,000 多個成長到截至 2024 年 3 月 31 日的 100,000 多個。這表明我們致力於發展數位資產銀行以加強我們的市場地位。我們將在一分鐘內介紹更詳細的資訊。

Then we have a lot of new investors on the call today. We thought it will be helpful to go take a minute and review our business. At the core Global Mofy is an AI technology driven technology solutions provider. Specializing in virtual content production and 3D digital asset developments. We collaborate with both upstream and downstream partners in a digital content industry, utilizing some events, artificial intelligence and 3D reconstruction technologies.

今天我們有很多新投資者參加電話會議。我們認為花一點時間回顧一下我們的業務將會有所幫助。Global Mofy 的核心是一家由人工智慧技術驅動的技術解決方案供應商。專注於虛擬內容製作和3D數位資產開發。我們與數位內容產業的上下游合作夥伴合作，利用一些事件、人工智慧和3D重建技術。

Our mission is to effectively create high precision digital versions of characters, scenes, and props, from the physical world implementing them across various application scenarios. Those offices in Beijing, Georgia and California, we are dedicated to driving the growth and development of the global digital content and entertainment sectors. Since our IPO last October, we have made significant strides in expanding our digital asset bank and enhancing our market presence. According to Frost & Sullivan report, Global Mofy now ranks among China's leading digital asset bank. That's more than 100,000 of them.

我們的使命是有效地創建角色、場景和道具的高精度數位版本，並從物理世界將它們應用於各種應用場景。我們在北京、喬治亞州和加州設有辦事處，致力於推動全球數位內容和娛樂產業的成長和發展。自去年 10 月首次公開募股以來，我們在擴大數位資產銀行和增強市場影響力方面取得了重大進展。根據Frost & Sullivan報告，Global Mofy現已躋身中國領先的數位資產銀行之列。其中有超過 100,000 個。

And now let's quickly review our Company roadmap. Global Mofy has always been at the forefront of digital content innovation. In 2024, we made strategic moves for future growth by launching the Gausspeed generative AI platform with NVIDIA Omniverse. Securing $10 million in financing as well and establishing our US subsidiary, GMM discovery LLC.

現在讓我們快速回顧一下我們的公司路線圖。Global Mofy 始終走在數位內容創新的前端。2024 年，我們與 NVIDIA Omniverse 合作推出了 Gausspeed 生成式 AI 平台，為未來成長採取了策略舉措。也獲得 1000 萬美元融資並成立我們的美國子公司 GMM discovery LLC。

Our strategic transformation focuses on enhancing core competencies, integrating AI technology into traditional processes to provide more efficient, cost-effective solution. This will help us better serve our clients, seize new opportunities in the digital content and entertainment sectors. We remain committed to delivering high-quality virtual content production, 3D digital asset development solutions. Global Mofy has been listed -- has received significant recognition for our innovation and digital content industry.

我們的策略轉型重點是增強核心能力，將人工智慧技術融入傳統流程，提供更有效率、更具成本效益的解決方案。這將有助於我們更好地服務客戶，並抓住數位內容和娛樂領域的新機會。我們始終致力於提供高品質的虛擬內容製作、3D 數位資產開發解決方案。Global Mofy 已上市——我們的創新和數位內容產業獲得了重大認可。

And most recently in 2023, we were honored as a council member, the Industrial and Information Technology Metaverse Development Organization and received the Most Valuable Investment Chinese Concept Stock reward. These accolades highlight our commitment to innovation, quality and customer satisfaction, as well as industry recognition our company.

而最近的2023年，我們榮幸成為工業和資訊化元界發展組織理事單位，並獲得最具投資價值中國概念股獎勵。這些榮譽凸顯了我們對創新、品質和客戶滿意度的承諾，以及業界對我們公司的認可。

Our mission is to empower creativity through the innovative use of AI digital technology. Our vision is to drive technological advancements and cultivate a culturally rich corporate environment. Our values includes but not limited to foster innovation and prioritize and exceed customer expectations. We are committed to building the world's largest digital asset bank. By leveraging our extensive collection of high-precision 3D digital assets. We aim to lead the new era of AI driven digital experiences.

我們的使命是透過人工智慧數位技術的創新運用來增強創造力。我們的願景是推動技術進步並培養文化豐富的企業環境。我們的價值觀包括但不限於促進創新、優先考慮並超越客戶的期望。我們致力於打造全球最大的數位資產銀行。透過利用我們廣泛收集的高精度 3D 數位資產。我們的目標是引領人工智慧驅動的數位體驗新時代。

And now let's move on to the core advantages that it could run as hard as we focus on growth and building value for shareholders.

現在讓我們繼續討論核心優勢，只要我們專注於成長和為股東創造價值，它就可以努力運作。

One of our most exciting innovations is Gausspeed, our generative AI video generation platform developed in collaboration with NVIDIA Omniverse. Gausspeed debuted in 2024 as our flagship R&D products. Lets just Gausspeed apart from other AI generated solution is that it has been developed from the ground up to meet the rigorous demands of industrial grade production. Gausspeed leverages events AI technology and have trained our mass digital asset bank, which includes over 100,000 high precision industrial levels 3D digital assets.

我們最令人興奮的創新之一是 Gausspeed，這是我們與 NVIDIA Omniverse 合作開發的生成式 AI 視訊生成平台。Gausspeed 於 2024 年首次亮相，作為我們的旗艦研發產品。Gausspeed 與其他人工智慧產生的解決方案的區別在於，它是從頭開始開發的，以滿足工業級生產的嚴格要求。Gausspeed利用事件AI技術，訓練出海量數位資產庫，包含超過10萬個高精度工業級3D數位資產。

This extensive training dataset, ensurers and broadcast space can generate visions that are not only realistic, but also meet the high standards of the film industry. Key features of Gausspeed includes professional-grade visual generation, fast-paced create stunning realistic visuals with events AI technology, ensuring top quality results for virtual projects. It also provides intuitive tools for detail storyboard, shot design allowing creators to visualize and plan each scene precisely reducing the need for costly revisions.

這種廣泛的訓練資料集、確保者和廣播空間可以產生不僅現實的願景，而且滿足電影產業的高標準。Gausspeed 的主要功能包括專業級視覺生成，利用事件 AI 技術快節奏創造令人驚嘆的逼真視覺效果，確保虛擬專案的高品質結果。它還為細節故事板和鏡頭設計提供直覺的工具，使創作者能夠精確地視覺化和規劃每個場景，從而減少昂貴的修改需求。

Gausspeed also offers advanced previs for visualization capabilities for accurate pre-production planning, helping clients define service needs, and minimizing trial costs. The videos scene and 3D digital assets generated by Gausspeed can be re-edited to meet more customized demand, providing flexibility and adaptability for various private means. We are confident in Gausspeed, ability to transform the film making industry and digital content industry by providing a powerful AI generating tool that enhances creativity and at the same time efficiency.

Gausspeed 還提供先進的視覺化預覽功能，以實現準確的預生產規劃，幫助客戶定義服務需求，並最大限度地降低試用成本。Gausspeed產生的影片場景和3D數位資產可以重新編輯，以滿足更多客製化需求，為各種私人手段提供靈活性和適應性。我們對 Gausspeed 充滿信心，它有能力透過提供強大的人工智慧生成工具來提高創造力和效率，從而改變電影製作行業和數位內容產業。

We also have a vast, diverse collection of high precision 3D digital assets, making us one of China's leading digital asset bank. our assets cover various categories such as characters, scenes and props spanning multiple domains, including nature, science fiction, historical eras and architecture.

我們還擁有大量、多樣化的高精度3D數位資產，使我們成為中國領先的數位資產銀行之一。我們的資產涵蓋人物、場景和道具等各個類別，跨越自然、科幻、歷史時代和建築等多個領域。

This extensive library is continuously updated to include the latest trends and technologies in digital content creation. On other core advantage is our Mofy lab, which integrates multiple independently developed software systems, powering digital content creation, visual effects processing, project management and AI technology applications. These systems demonstrate our leading position in technological innovation and further enhance our core competitiveness.

這個內容豐富的庫不斷更新，以包含數位內容創建的最新趨勢和技術。另一個核心優勢是我們的Mofy實驗室，它整合了多個獨立開發的軟體系統，為數位內容創作、視覺效果處理、專案管理和人工智慧技術應用提供動力。這些系統彰顯了我們在技術創新方面的領先地位，進一步增強了我們的核心競爭力。

Lastly, we own a significant number of proprietary registered IPs. Our R&D team has over 10 years of industrial experience and continues to invest in creating new intellectual properties, adding to at least 10 new IPs each year. This commitment to R&D ensures that we stay at the cutting edge of digital content and technology.

最後，我們擁有大量專有註冊知識產權。我們的研發團隊擁有超過10年的產業經驗，並持續投資創造新的智慧財產權，每年至少增加10個新IP。這種對研發的承諾確保我們始終處於數位內容和技術的前沿。

Now that you have a better picture of our competitive strengths, let me briefly review the industrial opportunities we face. China is the second largest entertainment and media end market globally projected by PWC to show from to -- grow from $275 billion .3D models market is also expanding rapidly valued at [$1.192 billion] in 2022 and projected to reach [$4.86 billion to $4 billion] by 2032, growing at a CAGR by -- hold a minute.

現在您對我們的競爭優勢有了更好的了解，讓我簡要回顧一下我們面臨的行業機會。普華永道預測，中國是全球第二大娛樂和媒體終端市場，預計將從2,750 億美元成長到2,750 億美元。預計將達到[48.6 億美元至40 億美元] ] 到 2032 年，複合年增長率將達到——稍等。

So I'll start again now -- China is the second largest entertainment and media much heavily by PDVSA to grow from $275 billion to [$362 billion] in 2027 was a CAGR of 7.1%, which highlights significant opportunities within the E&M sector. The global 3D map models market is also expanding rapidly valued at $1.192 billion in 2022 and projected to reach $4.864 billion by 2032, growing at a CAGR assets, 15.1%, and the increasing demand for high quality 3D models in film ,gaming, and virtual reality, is what's driving this growth.

所以我現在重新開始——中國是第二大娛樂和媒體國家，PDVSA 大力支持，到2027 年將從2750 億美元增長到3620 億美元，複合年增長率為7.1%，這突顯了E&M 行業的重大機遇。全球3D 地圖模型市場也在快速擴張，2022 年價值11.92 億美元，預計到2032 年將達到48.64 億美元，資產複合年增長率為15.1%，而且電影、遊戲和虛擬領域對高品質3D 模型的需求不斷增長現實是推動這種成長的動力。

Additionally, Generative AI market start to expand significantly as well globally and is projected to grow from $13.24 billion in 2024 to about $113.7 billion by 2030. at a CAGR of 46.46%. In China, the market is expected to grow from $3.15 billion in 2024 to $31.12 billion by 2030 with a similar growth rate.

此外，生成式人工智慧市場在全球也開始大幅擴張，預計將從 2024 年的 132.4 億美元成長到 2030 年的約 1,137 億美元，複合年增長率為 46.46%。在中國，市場預計將從2024年的31.5億美元成長到2030年的311.2億美元，成長率相似。

Global Mofy is well positioned to capitalize on these trends with advanced technologies and extensive digital assets. Our strategic initiatives, including the development of the cost base platform enhances our strong presence in the digital content industries and allows us to seize market opportunities.

Global Mofy 處於有利地位，可以透過先進技術和廣泛的數位資產來利用這些趨勢。我們的策略舉措，包括開發成本基礎平台，增強了我們在數位內容產業的強大影響力，並使我們能夠抓住市場機會。

And now without further ado, let's take a closer look at our business model and how we deliver value to our clients. Our business model leverages AI technology to offer high-quality, efficient, and cost-effective, content production through streamlined, scalable, and systematic virtual technology process services. We ensure comprehensive support through our synergy with multilateral platform, providing customers with slow process management from production output to quality control.

現在，事不宜遲，讓我們仔細看看我們的業務模式以及我們如何為客戶提供價值。我們的商業模式利用人工智慧技術，透過精簡、可擴展、系統化的虛擬技術流程服務，提供高品質、高效且具成本效益的內容製作。我們透過與多邊平台的協同確保全面支持，為客戶提供從生產輸出到品質控制的慢流程管理。

And 3D digital assets, development and related services focus on creating high precision 3D models for various application. This includes some gaming and virtual reality are extensive build up digital asset bank. Some events technologies allow for efficient and cost effective production. As strategic partnerships with leading technology companies enables us to integrate cutting-edge tools and processes, enhancing our ability to deliver innovative solutions to our clients.

3D數位資產、開發及相關服務專注於為各種應用創建高精度3D模型。這包括一些遊戲和虛擬實境正在廣泛建立的數位資產銀行。一些活動技術可以實現高效且具成本效益的製作。由於與領先科技公司的策略合作夥伴關係使我們能夠整合尖端工具和流程，從而增強了我們為客戶提供創新解決方案的能力。

In 2024, we forged several key partnerships that has significantly bolstered our technological capabilities and market reach. Notably, we partnered with NVIDIA Omniverse and Heartdub Technology, leveraging their advanced physics engine and technologies to push the development of the Gausspeed generative AI platform. This collaboration has enabled us to leverage cutting-edge technology to create a revolutionary tool for industrial grade film production and content creation.

2024 年，我們建立了多個重要合作夥伴關係，顯著增強了我們的技術能力和市場覆蓋範圍。值得注意的是，我們與 NVIDIA Omniverse 和 Heartdub Technology 合作，利用他們先進的實體引擎和技術來推動 Gausspeed 生成式 AI 平台的開發。此次合作使我們能夠利用尖端技術為工業級電影​​製作和內容創作創造革命性的工具。

Additionally, also in the first half of 2024, Global Mofy was selected as a partner in ITE second lead program, showcasing our strengths once again in technological innovation and production some of our prior customers and partners are also listed on the right of this page in no specific order.

此外，同樣在2024年上半年，Global Mofy被選為ITE第二主導計畫的合作夥伴，再次展示了我們在技術創新和生產方面的優勢。側沒有具體的順序。

Now going into our management team. Our management team consists of professionals with extensive experience in their respective fields for the CEO, Mr. Haogang Yang, a visionary leader and serial entrepreneur, who has extensive experience in digital content and technology sectors. Together, ensuring the company's steady growth and innovative capabilities.

現在進入我們的管理團隊。我們的管理團隊由在各自領域擁有豐富經驗的專業人士組成，執行長楊浩剛先生是一位富有遠見的領導者和連續創業者，在數位內容和技術領域擁有豐富的經驗。共同確保公司的穩定成長和創新能力。

Our team members also have strong active expertise and reach practical experience and technological innovation, financial management, market expansion, and operational optimization. Together, we are all working to drive Global Mofy continuous success.

我們的團隊成員還擁有強大的活躍專業知識和實踐經驗以及技術創新、財務管理、市場拓展和營運優化。我們共同努力推動 Global Mofy 不斷取得成功。

And now a deeper look into the financial results for the first half of 2024 ended March 31. Total revenue for the six months ended March 31, 2024, increased by 55.3% to $19.9 million, as was driven by higher demand for high quality digital content and services and an efficient use of AI technology throughout. Cost of revenues only rose slightly to $8.1 million from $7.8 million last year, given our overall 55.3% increase in total revenue, demonstrating our efficient and scalable business model. Gross profit soared by 135.1% to $11.8 million driven by increased revenue and our investments in sustainable development.

現在更深入了解截至 3 月 31 日的 2024 年上半年財務表現。截至 2024 年 3 月 31 日的六個月總收入增長 55.3%，達到 1,990 萬美元，這得益於對高品質數位內容和服務的更高需求以及人工智慧技術的高效利用。鑑於我們的總收入成長了 55.3%，收入成本僅從去年的 780 萬美元小幅上升至 810 萬美元，證明了我們高效且可擴展的業務模式。由於收入增加以及我們對永續發展的投資，毛利飆升 135.1% 至 1,180 萬美元。

Operating expenses increased by 17.5% to $5.1 million, mainly due to new public company related expenses and gross investments. Despite this operating income soared by 811.7% to $6.7 million. Net income also increased significantly by almost 1900% to $10.3 million or [$0.37] earnings per share, up from $0.52 million overall net income for $0.02 per share last year.

營運費用增加 17.5% 至 510 萬美元，主要是由於新上市公司的相關費用和總投資。儘管如此，營業收入仍飆升 811.7% 至 670 萬美元。淨利潤也大幅成長近 1,900%，達到 1,030 萬美元或每股收益 [0.37 美元]，高於去年的 52 萬美元整體淨利潤（每股收益 0.02 美元）。

And R&D investments were about $0.8 million for this six months, down from $3.3 million last year, due to capitalization of R&D into intangible assets, particularly reusable 3D digital assets and worth mention of all, our digital assets grew from over 30,000 in 2023 to now over 100,000 as of March 31, 2024. Total current assets were $17.8 million, including $8.2 million in cash and short-term investments. These results underscore our strong market position and successful strategic transformation. For more details, please once again refer to our SEC filings.

這六個月的研發投資約為80 萬美元，低於去年的330 萬美元，這是由於研發資本化為無形資產，特別是可重複使用的3D 數位資產，值得一提的是，我們的數字資產從2023 年的30,000 多個增長到現在截至 2024 年 3 月 31 日，超過 100,000 人。流動資產總額為 1,780 萬美元，其中包括 820 萬美元現金和短期投資。這些結果凸顯了我們強大的市場地位和成功的策略轉型。如欲了解更多詳情，請再次參閱我們向 SEC 提交的文件。

And now let's discuss our growth strategies moving forward. Global Mofy Metavante Limited is experiencing rapid growth by leveraging advanced AI technologies, expanding our 3D digital asset bank and strategically focusing on the booming digital entertainment and digital content market.

現在讓我們討論一下我們未來的成長策略。Global Mofy Metavante Limited 透過利用先進的人工智慧技術、擴大我們的 3D 數位資產庫並策略性地專注於蓬勃發展的數位娛樂和數位內容市場，實現了快速成長。

Here are the key components of our growth strategy. First of all we are entering international markets, focusing in Europe and North America. In 2024, we establish GMM Discovery in the U.S. and are exploring the generative AI market With [Scot] state. Third strategies to continue our market expansion. Next we form partnerships with leading companies to leverage strengths, expand market share and enhance products.

以下是我們成長策略的關鍵組成部分。首先，我們正在進入國際市場，重點是歐洲和北美。2024年，我們在美國成立GMM Discovery，並與蘇格蘭州一起探索生成式人工智慧市場。第三個策略是繼續擴大我們的市場。接下來我們與領先的公司建立合作關係，發揮優勢，擴大市場份額並增強產品。

We also pursue selective acquisitions to consolidate the market and gain new technologies by utilizing advanced AI and consistent branding. We aim to become a leader in digital content industry by continuously showcasing our expertise in the AI driven solutions and 3D digital assets. For R&D, we invest in R&D to drive innovation, focusing mainly on AI, generated content and expanding our 3D digital assets.

我們也透過利用先進的人工智慧和一致的品牌進行選擇性收購，以鞏固市場並獲得新技術。我們的目標是透過不斷展示我們在人工智慧驅動的解決方案和3D數位資產方面的專業知識，成為數位內容產業的領導者。在研發方面，我們投資研發來推動創新，主要專注於人工智慧、產生內容和擴展我們的 3D 數位資產。

They collaborate with research institutions as well as tech companies to stay ahead of trends. We also enhance our customer experience through personalized services, user-friendly interfaces and excellent customer support. Advanced analytics help us better understand customer needs and develop engaging in different interfaces. These strategies are designed to enhance our core compete, compete and safe, drive innovation, deliver long-term value to our shareholders.

他們與研究機構以及科技公司合作，以保持領先趨勢。我們也透過個人化服務、使用者友善的介面和出色的客戶支援來增強客戶體驗。進階分析幫助我們更了解客戶需求並開發不同的介面。這些策略旨在增強我們的核心競爭力、競爭性和安全性、推動創新、為股東創造長期價值。

Thank you for your attention and before we open the floor for questions, please note that our management team will be answering in Chinese and for any discrepancies between the translator response and the original answer. The original answer should be considered accurate. Please feel free to ask any questions you may have about our financial performance, strategic initiatives for market outlook. And now operator, please open the line for questions.

感謝您的關注，在我們開始提問之前，請注意我們的管理團隊將以中文回答，並注意翻譯的回答與原始答案之間的任何差異。原來的答案應該被認為是準確的。如果您對我們的財務表現、市場前景的策略舉措有任何疑問，請隨時提出。現在接線員，請打開電話提問。

(Operator Instructions) [Harrison Cheng from Foxigem Corp].

（操作員說明）[Foxigem Corp 的 Harrison Cheng]。

Yes, hello, this is Harrison. So basically, we've got two questions here. So the first one would be what are your strategic plans for generative AI tool in the future?

是的，你好，我是哈里森。基本上，我們有兩個問題。那麼第一個是你們未來對於生成式人工智慧工具的策略計畫是什麼？

Thank you, Harrison, for your question. And now I'll turn Wenjun Jiang to answer. (spoken in foreign language)

謝謝哈里森的提問。現在請蔣文軍來回答。（用外語說）

(spoken in foreign language)

（用外語說）

Thank you for your patience now. And now I'll translate the answer for our CTO. Our management team just emphasized that the development and application of generative AI tools are the technical quantum for changing the virtual production industry and in their overall strategic deployments, they will embrace the changes brought by artificial intelligence with an open and positive attitude.

感謝您現在的耐心等待。現在我將為我們的技術長翻譯答案。剛才我們的管理團隊強調，生成式人工智慧工具的開發和應用是改變虛擬製作產業的技術量子，在整體策略部署中，他們將以開放、積極的態度來擁抱人工智慧帶來的變化。

And based on this in the first half of 2024, we will not be cooperated with NVIDIA Omniverse and harder to develop the generated AI platform cost base to meet this demand and jointly establish a [$69 million] equity funds with such partners to promote the development of a AI digital economy. Industries, including the development and application of generation AI tools, technology will be the core driving force of our future strategic plan.

基於此，2024年上半年我們將不再與NVIDIA Omniverse合作，更加努力地開發生成的AI平台成本基礎來滿足這一需求，並與此類合作夥伴共同設立【6900萬美元】股權基金來推動發展人工智慧數位經濟。產業，包括一代AI工具、技術的開發和應用，將是我們未來策略規劃的核心驅動力。

Okay. I see. So on my second question, which is the last one is where are the main applications for your generative AI platform build on to the assets.

好的。我懂了。所以我的第二個問題，也就是最後一個問題是，基於資產建構的生成式人工智慧平台的主要應用程式在哪裡。

Thank you for your question. And I will now translate that also to our CTO, Mrs. Wenjun Jiang. (spoken in foreign language)

謝謝你的提問。現在我也將其翻譯給我們的技術長姜文君女士。（用外語說）

(spoken in foreign language)

（用外語說）

Thank you for your patience. And our CTO has just replied, at initial goal of our platform, which means cost based platform development is the culture and entertainment industry. Focusing on digital content production such as film and television, advertising, cultural tourism, BRAR and et cetera. Later, we also plan to gradually upgrade and extend to more [FiOS] customer groups based on the continuous collection of needs and issues we receive. Thank you for your questions.

感謝您的耐心等待。而我們的CTO剛才也回答了，我們平台最初的目標，就是說以成本為基礎的平台開發是文化娛樂產業。專注於影視、廣告、文旅、BRAR等數位內容製作。後期我們也計劃根據不斷收集收到的需求和問題，逐步升級並延伸到更多的【FiOS】客戶群。謝謝您的提問。

[Alice Wong, Beijing Capital.]

[Alice Wong，北京首都]

There are two questions. The first one is what factors contributed to the significant increase in net income for the first half of 2024?

有兩個問題。第一個是哪些因素導致2024年上半年淨利大幅成長？

Thank you for your question. And I will now translate this to our CFO, Mr. Chen Chen, for answer. (spoken in foreign language)

謝謝你的提問。我現在將其翻譯給我們的財務長陳晨先生，請他解答。（用外語說）

(spoken in foreign language)

（用外語說）

Thank you, Mr. Chen, and I will now translate for it in English. Our CFO has just mentioned that the high growth rate of the [MLC] is the result of the optimization adjustments made to our revenue structure since the beginning of the 2023 fiscal year, and also in 2024 the continuous deep expansion of the 3D digital asset business and a positive word of mouth among our customer base, led to the high margin digital asset licensing business related revenue reaching $10.95 million in the first half of 2024, and that accounted for about 55% of our total revenue, and increased of about $6 million compared to our 3D digital asset business measured in the first half of 2023 with the growth rate -- year-over-year growth rate of 123.5%. The structural high gross revenue in revenue is significant achievement for our group. And you may ask your next question.

謝謝陳先生，我現在將其翻譯成英文。剛才我們CFO也提到，【MLC】的高增速是我們2023財年開始以來收入結構優化調整的結果，也是2024年3D數位資產業務持續深度拓展的結果以及我們客戶群中的積極口碑，導致高利潤的數位資產授權業務相關收入在2024年上半年達到1,095萬美元，占我們總收入的約55%，增加了約600萬美元與2023 年上半年我們的3D 數位資產業務相比，成長率為123.5%。結構性高總收入是我們集團的重大成就。你可能會問你的下一個問題。

Okay. And could you explain how the company may change high gross margins?

好的。您能否解釋一下該公司將如何改變高毛利率？

(spoken in foreign language)

（用外語說）

Okay. (spoken in foreign language)

好的。（用外語說）

Thank you, Mr. Chen for your answer, and now I will translate that to English. Thank you for waiting. Our CFO have just explained that the high gross margins are primarily due to the high repeat purchase model of our 3D digital asset licensing business, which is highly generate high margins. And additionally, starting from the 2023 fiscal year, a change in the recognition method of our intangible assets means that 3D digital assets are amortized over a long period and included in the main business costs, which further reduces our costs. Of course, achieving high gross margins is also closely linked to our half-year revenue of $19.91 million, a high rise from our previous year.

謝謝陳先生的回答，現在我將其翻譯成英文。謝謝您的等待。我們的財務長剛剛解釋說，高毛利率主要是由於我們的3D數位資產授權業務的高重複購買模式，該模式產生高利潤。另外，從2023財年開始，我們無形資產確認方法的改變，意味著3D數位資產採用長期攤提計入主營業務成本，進一步降低了我們的成本。當然，實現高毛利率也與我們半年營收1991萬美元，比上年高成長息息相關。

[Jenny Leo, Rate Alpha.]

[Jenny Leo，評級 Alpha。

Okay. Thank you this is Jenny . Can you provide a forecast or outlook to your company's future performance?

好的。謝謝，這是珍妮。您能否對貴公司未來的業績做出預測或展望？

Okay. One moment, and I'll now translate to our CFO for answer. (spoken in foreign language)

好的。請稍等，我現在將向我們的財務長尋求答案。（用外語說）

(spoken in foreign language)

（用外語說）

Thank you, Mr. Chen. And I will now translate the answers. Our CFO have just replied that based on the current business development trend, we believe that the company's performance while continuing to maintain rapid growth in the second half of 2024, looking into the future as well.

謝謝陳先生。我現在將翻譯答案。我們CFO剛剛回覆說，基於目前的業務發展趨勢，我們認為公司業績在2024年下半年繼續保持快速成長的同時，展望未來也是如此。

Additionally, investments in generated AI tools of further increase, we'll fully prepare ourselves for the advent of the AI era.

此外，對人工智慧工具的投資進一步增加，我們將為人工智慧時代的到來做好充分準備。

Thank you for that. And following that question, I have another one that I noticed the company registered subsidiary named [WFOE]. So what is the plan for this company case?

謝謝你。繼這個問題之後，我還有另一個問題，我注意到該公司註冊的子公司名為[外商獨資企業]。那麼這家公司的案例是怎樣的計畫呢？

Thank you for your question and for this question. I will translate for our CTO to answer. (spoken in foreign language)

謝謝你的提問和這個問題。我會翻譯給我們的CTO來回答。（用外語說）

(spoken in foreign language)

（用外語說）

Thank you for your answer. And I will now translate the answers to English.

謝謝您的回答。我現在將把答案翻譯成英文。

Thank you, Jenny, for your questions. And our CTO have just explained that as a technology company driven by AI technology and committed to innovation. We observe the rapid development of AI., particularly AIGC technology as early as 2023, and we have made relevant strategic plans for that. Therefore, in 2024, we partnered with advanced technology partners to establish cost speed and began developing a generative AI platform under the same name. And this company is set to be a building down in the sales of AI [have another day].

謝謝你，珍妮，你的問題。而我們的CTO剛才也解釋過，作為一家以AI技術為驅動、致力於創新的科技公司。我們早在2023年就觀察到人工智慧，特別是AIGC技術的快速發展，並為此制定了相關的策略規劃。因此，在2024年，我們與先進技術合作夥伴合作建立成本速度，並開始開發同名的生成式人工智慧平台。這家公司將成為人工智慧銷售額的一個里程碑[再過一天]。

(Operator Instructions) I'm showing no further questions at this time. I'd like to turn it back to management for closing remarks.

（操作員說明）我目前沒有提出任何進一步的問題。我想把它轉回給管理階層做總結發言。

Thank you. One moment and thank you all for your insightful questions and the Q&A session and for joining us today. On behalf of our management team, our CEO, CFO, and CTO, I want to express our appreciation for your continued support and interest in Global Mofy. If you have any further questions, please do not hesitate to reach out to our Investor Relations team. Have a great day.

謝謝。感謝大家提出富有洞察力的問題和問答環節以及今天加入我們。我謹代表我們的管理團隊、執行長、財務長和技術官，對您對 Global Mofy 的持續支持和關注表示感謝。如果您還有任何疑問，請隨時聯絡我們的投資者關係團隊。祝你有美好的一天。

And thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。