(IQ) 2022 Q2 法說會逐字稿

Thank you for standing by, and welcome to the iQIYI Second Quarter 2022 Earnings Conference Call. (Operator Instructions)

感謝您的支持，歡迎參加愛奇藝 2022 年第二季度財報電話會議。 （操作員說明）

I would now like to turn the conference over to Ms. Chang You, Investor Relations Director. Please go ahead.

我現在想將會議轉交給投資者關係總監常友女士。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining iQIYI's Second Quarter 2022 Earnings Conference Call. The Company's results were released today and are available on the Company's Investor Relations website at ir.iqiyi.com.

謝謝你，接線員。大家好，感謝大家參加愛奇藝2022年第二季度財報電話會議。公司的業績今天發布，可在公司的投資者關係網站 ir.iqiyi.com 上查閱。

On the call today are Mr. Yu Gong, our Founder, Director and CEO; Mr. Jun Wang, our CFO; Mr. Xiaohui Wang, our CCO, Chief Content Officer; Mr. Wenfeng Liu, our CTO, Chief Technology Officer; Ms. Vivian Wang, our CMO, Chief Marketing Officer; Mr. Youqiao Duan, Senior Vice President of our Membership business; and Mr. Xianghua Yang, our Senior Vice President of Movies and Overseas business.

今天的電話是我們的創始人、董事兼CEO龔宇先生；我們的首席財務官王軍先生；我們的 CCO、首席內容官王曉輝先生；我們的CTO、首席技術官劉文峰先生；我們的CMO、首席營銷官Vivian Wang女士；會員業務高級副總裁段友橋先生；我們的電影和海外業務高級副總裁楊向華先生。

Mr. Gong will give a brief overview of the Company's business operations and highlights, followed by Jun who will go through the financials. After the prepared remarks, Xiaohui, Wenfeng, Vivian, Youqiao and Xianghua will join Mr. Gong and Jun in the Q&A session.

龔先生將簡要介紹公司的業務運營和亮點，隨後君將介紹財務狀況。準備好的發言結束後，小慧、文峰、Vivian、尤喬和向華將與龔先生和君先生一起進行問答環節。

Before we proceed, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. iQIYI does not undertake any obligation to update any forward-looking statements except as required under applicable law.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述受到可能導致實際結果不同的風險和不確定性的影響與我們目前的預期大相徑庭。潛在風險和不確定性包括但不限於我們向美國證券交易委員會提交的公開文件中概述的風險和不確定性。除適用法律要求外，愛奇藝不承擔更新任何前瞻性陳述的義務。

With that, I will now turn the call over to Mr. Gong. Please go ahead.

有了這個，我現在將把電話轉給龔先生。請繼續。

Hello, everyone. I'm very pleased to take this opportunity to report on our progress in the second quarter. But more importantly, share our views on the future.

大家好。我很高興藉此機會報告我們在第二季度的進展。但更重要的是，分享我們對未來的看法。

In the second quarter, the company made breakthroughs once again. As we all know, the weak macroeconomy and COVID resurgence in Q2 had a great impact on business of most of media companies. Despite an extremely challenging environment, we still made achievements in the following 3 aspects: One, our Membership business continued to grow year-over-year; two, we generated non-GAAP operating profit for two consecutive quarters and achieved sequential growth in Q2; three, our cash flow improved significantly, and we achieved positive operating cash flow for the very first time.

二季度，公司再次取得突破。眾所周知，第二季度宏觀經濟疲軟和新冠疫情回潮對大多數媒體公司的業務產生了很大影響。儘管環境充滿挑戰，但我們仍然在以下三個方面取得了成績：一是我們的會員業務持續同比增長；二是連續兩個季度實現非公認會計準則營業利潤，並在第二季度實現環比增長；三是現金流明顯改善，經營現金流量首次實現正值。

These were the results of strong execution of the strategy that centered around cost optimization and efficiency improvements. Such strong results also fully demonstrated the resilience of our business. For two consecutive quarters, we reached our operational targets while drastically improved our financial healthiness, enabling us to face the ever-changing market environment with ease.

這些都是以成本優化和效率提高為中心的戰略強有力執行的結果。如此強勁的業績也充分體現了我們業務的韌性。連續兩個季度，我們實現了經營目標，同時大幅改善了財務健康狀況，使我們能夠從容應對瞬息萬變的市場環境。

Our solid performance in the second quarter demonstrated that iQIYI has completed its self- transformation and successfully sailed out of the storm. It also gives us the confidence to upgrade our strategy starting from the third quarter this year, a strategy which will fuel our business growth and improve our financial healthiness at the same time. We would like to call it the calm growth, which has the following features. One, to pursue growth, but not at the expense of significant cash burn. We will stay cautious about the growth opportunities with long investment cycle and high cash investment. Rather, we would actively invest more resources in iQIYI's core business and projects with higher degree of certainty and high ROIs.

我們第二季度的穩健表現表明，愛奇藝已經完成了自我轉型，成功渡過難關。這也讓我們有信心從今年第三季度開始升級我們的戰略，這一戰略將推動我們的業務增長並同時改善我們的財務健康狀況。我們稱它為平靜的增長，它具有以下特點。一，追求增長，但不以大量現金消耗為代價。對於投資週期長、現金投資高的增長機會，我們將保持謹慎態度。相反，我們將在愛奇藝的核心業務和確定性更高、投資回報率高的項目上積極投入更多資源。

Two, pursue growth for both profit and revenue but profit should grow faster than revenue. Capitalizing revenue growth opportunity will not result in higher operating expenses. We would maintain the current lean organizational structure, embrace challenges with passion and improve operational efficiency.

二是追求利潤和收入的增長，但利潤增長應該快於收入。將收入增長機會資本化不會導致更高的運營費用。我們將保持現有的精益組織結構，以激情迎接挑戰，提高運營效率。

Three, the value we have provided to users and customers would grow even faster than the profit. We will produce and stream more and better premium content. We will create greater value for our users and customers, and all financial returns should follow.

第三，我們為用戶和客戶提供的價值增長速度將超過利潤。我們將製作和播放更多更好的優質內容。我們將為我們的用戶和客戶創造更大的價值，所有的財務回報都應隨之而來。

The calm growth strategy can better motivate us and align the interests of our users, customers and stakeholders. We hope that the calm growth strategy can help us further improve the healthiness of our business and drive our profit and revenue growth in the future.

冷靜的增長戰略可以更好地激勵我們，並協調我們的用戶、客戶和利益相關者的利益。我們希望冷靜的增長策略能夠幫助我們進一步提高業務的健康度，並推動我們未來的利潤和收入增長。

Now let's go through the performance of each of our business segments in the second quarter of 2022. Starting with membership services. Membership business is the most important business segment for us. We are determined to roll out strategies and allocate resources to support and guarantee the continuous business growth.

現在讓我們來看看我們每個業務部門在 2022 年第二季度的表現。從會員服務開始。會員業務是我們最重要的業務板塊。我們決心通過戰略部署和資源配置來支持和保障業務的持續增長。

In the second quarter, Membership revenues were RMB4.3 billion, up 7% year-over-year. The average daily number of total subscribing members for the second quarter was 98.3 million, and monthly ARM was RMB14.53, up 8% year-over-year. ARM has maintained a healthy annual growth rate at or above 8% for 6 consecutive quarters. The positive outcome was contributed to our newly-launched membership package targeting TV devices, consistent and diversified premium content offerings and the execution of our refined operating strategy that increased the value perception by our members.

第二季度，會員收入為人民幣43億元，同比增長7%。第二季度日均訂閱會員總數為9830萬，月ARM為14.53元，同比增長8%。 ARM 已連續 6 個季度保持 8% 或以上的健康年增長率。這一積極成果得益於我們新推出的針對電視設備的會員套餐、一致和多樣化的優質內容產品以及我們完善的運營戰略的執行，從而提高了會員的價值認知。

First, we actively drove acquisition of new members on TV devices. Targeting the growing demand of TV users, we launched a platinum membership plan in May emphasizing benefits on TV side. By strengthening member experience and values on TVs, the monthly active members on TV devices increased by around 15% annually in the second quarter.

一是積極推動電視設備新會員獲取。針對電視用戶日益增長的需求，我們於 5 月推出了白金會員計劃，強調電視方面的福利。通過加強會員在電視上的體驗和價值觀，第二季度電視設備上的月活躍會員年增長率約為 15%。

Secondly, we continued to refine our operating strategy based on viewing and paying preferences to increase member retention, drive new member growth and win back churn users.

其次，我們繼續完善基於觀看和付費偏好的運營策略，以提高會員保留率，推動新會員增長並贏回流失用戶。

Another driver during the quarter was premium content as we continued to launch diversified high-quality content that caters to the varied demands of different user cohorts. For example, Ordinary Greatness tells stories about the daily life of policemen in heart-warming and humorous ways. The drama harvested positive public reaction as well as revenue performance. It topped the Douban list for domestic dramas in the first half of 2022 with a score of 8.6 while generating the highest membership revenue on our platform during its broadcasting. With top exclusive content, we adopted an early access viewing model for members. We launched our original multi-season exclusive variety show, The Rap of China 2022, (foreign language) in late June. Members were given the privilege of early access, and the show successfully attracted over 1.3 million members on the first day of launch.

本季度的另一個驅動因素是優質內容，因為我們繼續推出多樣化的優質內容，以滿足不同用戶群體的不同需求。例如，《平凡的偉大》以暖心幽默的方式講述了警察的日常生活。該劇收穫了積極的公眾反響和收入表現。 2022年上半年國產劇豆瓣榜以8.6分高居榜首，開播期間成為平台會員收入最高。對於頂級獨家內容，我們採用會員搶先體驗模式。 6月下旬，我們推出了原創多季獨家綜藝節目《中國新說唱2022》（外語版）。會員獲得了搶先體驗的特權，該節目在發布的第一天就成功吸引了超過 130 萬會員。

In addition, we are devoted to strengthen membership benefits in addition to the exquisite video viewing experience. For example, we launched marketing campaigns such as Member Benefits Day, Super Brand Day to provide members with various benefits and deals across a wide variety of brands. In the second quarter, our member benefits were accessed over 60 million times.

此外，除了精緻的視頻觀看體驗，我們還致力於加強會員福利。例如，我們推出了會員福利日、超級品牌日等營銷活動，為會員提供各種品牌的各種福利和優惠。第二季度，我們的會員福利訪問量超過 6000 萬次。

Looking ahead, we will continue to launch high quality premium content, optimize sales channels within and outside our platform, effectively leverage various content promotional channels such as our partner, Douyin, to expand the reach of our premium content. Meanwhile, we will continue to improve our operational initiatives to increase member value, user loyalty and brand awareness, and last but not least, continue to improve the experience and monetization capabilities on large screens.

展望未來，我們將繼續推出優質優質內容，優化平台內外銷售渠道，有效利用合作夥伴抖音等多種內容推廣渠道，擴大優質內容觸角。同時，我們將繼續改進我們的運營舉措，以提高會員價值、用戶忠誠度和品牌知名度，最後但並非最不重要的一點是，繼續提高大屏幕的體驗和貨幣化能力。

Moving onto Content. We insist on providing users with high quality premium content that caters to differentiated viewing demands. As improving operating efficiency and emphasizing content quality became industry-wide key words, we took the initiative to adjust our content pipeline so that head premium content makes up the majority of new releases.

轉向內容。我們堅持為用戶提供滿足差異化觀看需求的優質優質內容。隨著提高運營效率和強調內容質量成為全行業的關鍵詞，我們主動調整我們的內容管道，使頭部優質內容成為新版本的主要內容。

During the second quarter, we maintained our leadership positions across key operating metrics. On user traffic front, according to QuestMobile, our mobile MAU ranked #1 in the industry. Meanwhile, on content related measures, according to Enlightent data, we maintained the highest market share for the drama category in terms of effective video views, despite the number of new releases were not the highest in the market. Our market share for animations, including children animation, also ranked first in the industry.

在第二季度，我們在關鍵運營指標方面保持了領先地位。在用戶流量方面，根據 QuestMobile 的數據，我們的移動 MAU 在行業中排名第一。同時，在內容相關指標方面，根據 Enlightent 的數據，儘管新上映的數量不是市場最高的，但在有效視頻觀看量方面，我們保持了戲劇類別的最高市場份額。包括兒童動畫在內的動畫市場佔有率也位居行業第一。

Meanwhile, thanks to our long-term commitment to premium content, our high-quality content library continued to show positive long-tail effects as the viewership market share of our library content also ranked #1 in the industry. I'm pleased to see strong user engagement via sufficient supply of high-quality content while improving content-related cost ratios for key content categories. The ROI performance for drama, variety show, animation and children's content channels all improved both annually and sequentially.

同時，得益於我們對優質內容的長期承諾，我們的高質量內容庫繼續顯示出積極的長尾效應，因為我們的庫內容的收視率市場份額也位居行業第一。我很高興看到通過提供充足的高質量內容來實現強大的用戶參與度，同時提高關鍵內容類別的內容相關成本比率。話劇、綜藝、動漫、少兒頻道的投資回報率均逐年和環比提升。

During the second quarter, we continued to launch premium original content across key genres. Acclaimed original dramas included Ordinary Greatness, My Sassy Princess and The Fight. The box office for our original movie Man on the Edge were over RMB160 million, and it was one of the main contributor to the domestic movie box office in the second quarter. For children's content, the sequel to our original animation, Princess Doremi Season 2, made solid revenue contribution to our Membership business.

在第二季度，我們繼續推出跨主要流派的優質原創內容。備受讚譽的原創劇集包括《平凡的偉大》、《我的野蠻公主》和《戰鬥》。原創電影《邊緣人》票房超過1.6億元，是第二季度國產電影票房的主要貢獻者之一。在兒童內容方面，我們原創動畫的續集多蕾米公主第 2 季為我們的會員業務做出了可觀的收入貢獻。

For original content, one of our key strategies focuses on taking a multi-season approach for our established IPs to drive long-term value. Building on the success from previous seasons, we saw strong user attractions of these returning titles. During the second quarter, four of our popular original variety shows released their latest season, including The Rap of China 2022. The Detectives' Adventures Season 2, and etc. Among which, our original music show, The Rap of China 2022, maintained its high popularity from previous seasons and a good number of songs from the show topped the chart on various music platforms. The second season of the Detectives' Adventures also ranked #1 on multiple third-party data platforms.

對於原創內容，我們的一項關鍵戰略側重於對我們已建立的 IP 採取多季方法來推動長期價值。在前幾季的成功基礎上，我們看到了這些回歸遊戲的強大用戶吸引力。第二季度，我們的四檔熱門原創綜藝節目推出了最新一季，包括《中國有嘻哈2022》、《大偵探大冒險》第2季等。其中，我們的原創音樂節目《中國有嘻哈2022》保持了最新一季的收視率。前幾季的高人氣和節目中的大量歌曲在各種音樂平台上都位居榜首。 《偵探大冒險》第二季在多個第三方數據平台上也排名第一。

Meanwhile, vertical content theater model continued to meet differentiated user demands. The Lord of Losers, the third drama under the Laugh On Theater, introduced an innovative interactive viewing feature that provides an immersive experience and brought increased audience participation. Its Douban score started at 7.1 and went up to 7.6, given its interactive features. The Sweet On Theater returned in June with 5 new titles, satisfying the viewing preference of young generation audience during summer vacation.

同時，垂直內容影院模式繼續滿足差異化用戶需求。 Laugh On Theatre 旗下的第三部戲劇《敗家之王》引入了創新的互動觀看功能，提供身臨其境的體驗，並增加了觀眾的參與度。鑑於其互動性，其豆瓣評分從 7.1 開始上升到 7.6。甜蜜劇場6月攜5部新劇回歸，滿足了年輕一代觀眾暑假的觀影偏好。

Over the years, we have definitely seen solid improvement in the quality of our premium content offerings. For example, iQIYI's popularity index is an influential measure that indicates the popularity of a content, and any titles with over 10,000 popularity index score are clear blockbusters, such measure is highly recognized by the industry and users. Among our content offerings, there have only been 4 titles that broke the 10,000 popularity index score. And two of them were launched this year, namely drama, A Lifelong Journey, tailored to a relatively more matured audience group.

多年來，我們的優質內容產品的質量確實得到了顯著提高。例如，愛奇藝的人氣指數是一個有影響力的衡量內容熱度的指標，凡是熱度指數超過10000的標題都是明顯的大片，這樣的衡量標準得到了行業和用戶的高度認可。在我們的內容產品中，只有 4 個標題打破了 10,000 的人氣指數得分。其中有兩部是今年推出的電視劇《一生的旅程》，是為相對成熟的觀眾群體量身定做的。

The other one is our recently launched original drama, Love Between Fairy and Devil from Sweet On Theater, catering to younger generations. This drama is the first original drama that broke such landmark score, demonstrating the exceptional quality of our original content is highly recognized by our users. We are now even more confident with our original content production abilities and our future pipelines, especially for the original drama category. We look forward to bring a diverse selection of high-quality titles to our users.

另一部是我們最近推出的原創劇集，來自 Sweet On Theatre，迎合年輕一代。這部劇是第一部打破這一里程碑式分數的原創劇，展示了我們原創內容的卓越品質，得到了用戶的高度認可。我們現在對我們的原創內容製作能力和未來的管道更有信心，特別是對於原創戲劇類別。我們期待為我們的用戶帶來多樣化的高質量遊戲選擇。

For the second half of 2022 and especially for the summer season, our content pipeline for dramas is focused on capturing young generation audience while maintaining premium content for mainstream audiences. This includes The Heart of Genius, Twenty Your Life On Season 2, Sweet On Theater 2022 and etc. A new season of Mist Theater will return in the fourth quarter.

在 2022 年下半年，尤其是夏季，我們的電視劇內容管道專注於吸引年輕一代觀眾，同時為主流觀眾提供優質內容。其中包括《天才之心》、《二十歲人生》第 2 季、《甜蜜劇場 2022》等。迷霧劇場新一季將於第四季回歸。

For variety shows, we will serialize established IPs while continuing to innovate new genres. For the second half of the year, a greater number of variety shows will be launched compared to first half of the year, including our original Super Sketch Show Season 2, Mr. Housework Season 4 and Folk.

對於綜藝節目，我們將在不斷創新新類型的同時，將已建立的IP進行連載。下半年，將推出比上半年更多的綜藝節目，包括我們原創的超級素描第二季、家務先生第四季和民謠。

For animation and children's content, we will continue to execute multi-season and diversified IP monetization strategies. Not only many of our popular titles will release their new seasons, during our summer season, we also launched the animation version of Love Between Fairy and Devil, which was adapted from the same novel as the blockbuster drama. The high popularity of the drama has also brought stronger revenue performance of the animation.

對於動漫和兒童內容，我們將繼續執行多季、多元化的IP變現策略。不僅很多熱門遊戲都會推出新一季，在暑期檔，我們還推出了改編自大片同名小說的動畫版《妖精與惡魔之戀》。劇集的高熱度也為動畫帶來了更強的營收表現。

Apart from that, we have seen clear pickup in the overall consumer demand during the summer season. We hope such momentum will continue, and the consumer demand will return to the pre-pandemic level soon.

除此之外，我們看到夏季整體消費需求明顯回升。我們希望這種勢頭能夠持續下去，消費需求將盡快恢復到疫情前的水平。

Moving on to advertising. The macro softness and the pandemic resurgence in top-tier cities including Shanghai and Beijing put pressure on the overall ad business, particularly on brand ads. All the players in the market faced similar challenges. However, we quickly engaged in pushing forward our ad sales process after these cities began to resume its normal course of business operations starting mid-June, and managed to grow our ad revenue for our original variety shows by 53% sequentially despite such challenging environment. Performance ad revenue increased by 12% annually during the quarter. This was mainly benefited from accurate identification of user groups and customized ad solution for key accounts.

繼續做廣告。包括上海和北京在內的一線城市的宏觀疲軟和疫情復甦給整體廣告業務帶來壓力，尤其是品牌廣告。市場上的所有參與者都面臨著類似的挑戰。然而，在這些城市從 6 月中旬開始恢復正常業務運營後，我們迅速推進了我們的廣告銷售流程，儘管環境充滿挑戰，我們的原創綜藝節目的廣告收入仍實現了 53% 的環比增長。本季度，效果廣告收入每年增長 12%。這主要得益於對用戶群體的準確識別和針對關鍵客戶的定制廣告解決方案。

Technical innovation is among our core values. Technical innovation makes it possible to bring wonderful viewing experiences to our users. For example, cooperation between our content creative team and product R&D team led to the production of brand new open interactive episodes for drama, The Lord of Losers. Such innovative and creative story telling formats significantly drove user engagement. The average time spent for the interactive episodes increased by 20% as compared to conventional episodes.

技術創新是我們的核心價值觀之一。技術創新使得為我們的用戶帶來美妙的觀看體驗成為可能。例如，我們的內容創意團隊和產品研發團隊的合作，促成了全新的開放互動劇集《失敗者之王》的製作。這種創新和創造性的故事講述形式極大地推動了用戶參與度。與傳統劇集相比，互動劇集的平均花費時間增加了 20%。

Moving on to our new business and products. Both the overseas and iQIYI Lite business maintained sound momentum, continued to increase our long-term value, grow and enrich our ecosystem.

繼續我們的新業務和產品。海外業務和愛奇藝精簡版業務均保持良好勢頭，持續提升我們的長期價值，壯大和豐富我們的生態系統。

The overseas membership revenue recorded significant annual growth, benefiting from a large increase in paid subscribers. During the quarter, we launched hit titles including KinnPorsche The Series and 7 Hari Season 3. These hit titles appeared on the Twitter's top search list and attracted a large number of viewers and advertisers, especially in Thailand and Malaysia. For the second half of the year, we will work to expand the paid user base and monetization capabilities to ensure stable growth and market position in key markets.

海外會員收入錄得顯著的年度增長，受益於付費用戶的大幅增長。在本季度，我們推出了包括 KinnPorsche The Series 和 7 Hari Season 3 在內的熱門遊戲。這些熱門遊戲出現在 Twitter 的熱門搜索列表中，並吸引了大量的觀眾和廣告商，尤其是在泰國和馬來西亞。下半年，我們將努力擴大付費用戶基礎和貨幣化能力，以確保在重點市場的穩定增長和市場地位。

iQIYI Lite saw rapid annual growth in both membership and ad revenues. Average DAU for the second quarter was over 5 million, and the user engagement rate increased both annually and sequentially. iQIYI Lite focuses on lower-tier cities to differentiate from the user base of our main app. The overlap between iQIYI Lite and our main app remained at a very low level in the second quarter, with the DAU overlap less than 4% in June. With a distinctive user group, consumption behavior and revenue model, iQIYI Lite serves as a great complement to the main app and is expected to reach greater monetization potential in the future.

愛奇藝精簡版的會員收入和廣告收入均實現了快速增長。第二季度平均 DAU 超過 500 萬，用戶參與率逐年和環比增長。愛奇藝精簡版專注於低線城市，以區別於我們主應用的用戶群。愛奇藝精簡版與我們的主應用之間的重疊在第二季度保持在非常低的水平，6 月份的 DAU 重疊不到 4%。愛奇藝精簡版擁有鮮明的用戶群體、消費行為和收入模式，是主應用的重要補充，未來有望發揮更大的變現潛力。

As you know, we announced content licensing cooperation with Douyin in July, in which we will license select content to Douyin that enables distribution and recreation of iQIYI's existing content. It demonstrates both platforms are working collectively to create win-win for both platforms and users and setting rules for the industry.

如您所知，我們在 7 月份宣布與抖音開展內容授權合作，其中我們將向抖音授權部分內容，以實現愛奇藝現有內容的分發和再創作。它表明兩個平台正在共同努力，為平台和用戶創造雙贏，並為行業製定規則。

More importantly, the cooperation showcased the value recognition of our exceptional content portfolio as well as the strength and longevity of our premium long-form video content. The arrangement will unlock new opportunities that will help us penetrate into larger user base, enrich the online video ecosystem, broaden monetization opportunities and increase the value of our IPs. We will roll out cooperation from both product and content sides starting in Q3.

更重要的是，此次合作展示了我們對卓越內容組合的價值認可，以及我們優質長視頻內容的實力和壽命。該安排將釋放新的機會，幫助我們滲透到更大的用戶群、豐富在線視頻生態系統、拓寬貨幣化機會並增加我們的 IP 價值。從第三季度開始，我們將在產品和內容方面展開合作。

Overall, results in the second quarter were certainly encouraging. In the face of special challenges from the macro environment, we significantly improved our financial results over two consecutive quarters while maintaining our industry leading positions. This was a result of our strong professionalism and team cohesion and execution as well as our strategy focusing on cost optimization and efficiency improvement.

總體而言，第二季度的業績肯定令人鼓舞。面對宏觀環境的特殊挑戰，我們的財務業績連續兩個季度顯著改善，保持行業領先地位。這是我們強大的專業精神和團隊凝聚力和執行力以及我們專注於成本優化和效率提升的戰略的結果。

In the future, under our upgraded calm growth strategy, we aim to generate sustainable growth of non-GAAP operating profit. We are committed in providing more premium content to our users, satisfying growing spiritual and cultural demands, driving content value and creating long-term value to our stakeholders.

未來，在我們升級後的平靜增長戰略下，我們的目標是實現非公認會計準則營業利潤的可持續增長。我們致力於為用戶提供更多優質內容，滿足日益增長的精神和文化需求，推動內容價值，為利益相關者創造長期價值。

With that, I'll hand over to Wang Jun.

有了這個，我就交給王軍了。

Thanks Mr. Gong, and hello, everyone. To start the financial section, I would like to highlight 4 key items that we have delivered. First is the profit growth. Second is the operating cash flow breakeven. Third, it's the $500 million bond raising. And fourth, it's the optimistic growth outlook based on our calm growth strategy, as Mr. Gong just mentioned.

謝謝龔老師，大家好。在開始財務部分之前，我想重點介紹我們已經交付的 4 個關鍵項目。首先是利潤增長。二是經營現金流盈虧平衡。第三，是 5 億美元的債券募集。第四，正如龔先生剛才提到的，基於我們冷靜的增長戰略的樂觀增長前景。

Now with these 4 items in mind, I would like to move into the details. In the second quarter, we booked RMB 6.7 billion revenues and RMB 344 million non-GAAP operating profit and, at the same time, achieve quarterly operating cash flow breakeven. As Mr. Gong mentioned, this is remarkable result as we fight against the gravity of macro downturn throughout the quarter.

現在考慮到這 4 個項目，我想進入細節。第二季度，我們錄得 67 億元人民幣的收入和 3.44 億元人民幣的非公認會計準則營業利潤，同時實現了季度經營現金流盈虧平衡。正如龔先生所說，這是一個了不起的結果，因為我們在整個季度都在與宏觀經濟下滑的嚴重性作鬥爭。

Within revenue line, the membership services revenue was RMB 4.3 billion, up 7% year-over-year, mainly driven by ARM, or average revenue per membership. The solid performance of membership revenues was partially offset by the weaker non-membership services revenues due to challenging macro environment.

收入線內，會員服務收入為人民幣43億元，同比增長7%，主要受ARM驅動，即人均會員收入。由於充滿挑戰的宏觀環境，會員收入的穩健表現被非會員服務收入的疲軟部分抵消。

Now move to the cost and expenses. The second quarter cost of revenues was RMB 5.2 billion, representing a cost saving of RMB 1.6 billion, down 24% annually and 12% sequentially. Content cost, a significant component of cost of revenues, decreased 24% year-over-year when we delayed several top shows to the third quarter. The net result is that our gross profit margin reached 21% in the second quarter and consistently expanded in the past [three] (added by company after the call) quarters, namely from 7% to 12% to 18% then to the 21% in the latest quarter, reflecting ongoing gains in ROI of our Content business.

現在轉到成本和費用。第二季度收入成本為人民幣52億元，節約成本16億元，同比下降24%，環比下降12%。當我們將幾部頂級節目推遲到第三季度時，內容成本是收入成本的重要組成部分，同比下降了 24%。最終結果是我們的毛利率在第二季度達到 21%，並且在過去 [三個]（由公司在電話會議後添加）季度持續擴大，即從 7% 到 12% 到 18% 再到 21%在最近一個季度，反映了我們內容業務投資回報率的持續增長。

Meanwhile, we kept our spending disciplined and stabilized total operating expenses in the second quarter. As a result, the expanded gross margin and disciplined expenses control combined contributed to our non-GAAP profit expansion. For the second quarter, non-GAAP operating profit was RMB 344 million, grew 5% quarter-over-quarter.

同時，我們在第二季度保持了支出紀律並穩定了總運營費用。因此，擴大的毛利率和嚴格的費用控制共同促進了我們的非公認會計原則利潤增長。第二季度非美國通用會計準則營業利潤為人民幣3.44億元，環比增長5%。

At the end of the second quarter, the company had cash, cash equivalents, restricted cash and short-term investments of RMB 4.9 billion compared with RMB 5.2 billion in the previous quarter. We managed our operating cash flow well, achieving operating cash flow breakeven for the first time in the second quarter.

二季度末，公司擁有現金、現金等價物、受限現金和短期投資人民幣49億元，上一季度為人民幣52億元。我們管理好經營現金流，第二季度首次實現經營現金流盈虧平衡。

Today, we also entered into an agreement with PAG, the leading investment firm in Asia Pacific, to raise $500 million through convertible bond issuances. We would like to thank our new investor's trust. We are confident about our future performances under calm growth strategy, aiming to achieve both revenue and profit growth and business healthiness at the same time. And we will continue to create value to all the stakeholders.

今天，我們還與亞太地區領先的投資公司 PAG 達成協議，通過發行可轉換債券籌集 5 億美元。我們要感謝新投資者的信任。我們對在穩健增長策略下的未來表現充滿信心，旨在同時實現收入和利潤增長以及業務健康。我們將繼續為所有利益相關者創造價值。

In summary, again, to recap quarterly results that we have presented to the investors, the first is profit growth. The second is operating cash flow breakeven. The third is the debt fundraising. And the fourth one is the optimistic growth outlook based on calm growth strategy.

總之，再次回顧我們向投資者展示的季度業績，首先是利潤增長。二是經營現金流盈虧平衡。三是債務融資。第四個是基於冷靜增長戰略的樂觀增長前景。

For the detailed financial information, please refer to our press release on our IR website. Now we will open the floor for Q&A.

有關詳細的財務信息，請參閱我們投資者關係網站上的新聞稿。現在我們將開始問答環節。

(Operator Instructions) Today's first question comes from Alicia Yap with Citigroup.

（操作員說明）今天的第一個問題來自花旗集團的 Alicia Yap。

(foreign language) My question is related to the Membership business. Can management elaborate a little bit more the trend that we are seeing for the second quarter in terms of the membership performance? And how is membership subscription and the revenue trending in the third quarter? And also, can management share your thoughts on how you view the Membership business longer term? And what are your future strategy?

（外語）我的問題是關於會員業務的。管理層能否詳細說明我們在會員績效方面看到的第二季度的趨勢？第三季度會員訂閱和收入趨勢如何？此外，管理層能否分享您對長期會員業務的看法？你未來的戰略是什麼？

(foreign language)

（外語）

[Interpreted] Okay. Let me answer the question into 2 parts. First, I would like to explain the trend of Membership business in Q2 and Q3. First of all, for Q2, overall, the revenue performance met our expectations. The ARM for our membership continues to grow in the past quarters. However, there are some relative fluctuations in the absolute subscriber numbers, which is, below our expectations, there are a few reasons that contributed to such outcome.

[解釋] 好的。讓我把這個問題分成兩部分來回答。首先，我想解釋一下第二季度和第三季度會員業務的趨勢。首先，對於第二季度，總體而言，收入表現符合我們的預期。我們會員的 ARM 在過去幾個季度繼續增長。然而，絕對用戶數量存在一些相對波動，低於我們的預期，有幾個原因導致了這種結果。

First typically Q2 is the low season for the year. Second, Q2, because of the pandemic resurgence, there are a limited [number] (added by company after the call) of theatrical movies that were released online, which triggered a lower number of movies that we can broadcast on platform. And third, to some extent, there are some relatively content delays of our offerings on the platform also attributed to the resurgence of COVID in China.

首先通常第二季度是一年中的淡季。其次，第二季度，由於疫情的反彈，在線發行的院線電影數量有限（電話後由公司添加），這導致我們可以在平台上播放的電影數量減少。第三，在一定程度上，我們在平台上的產品出現了一些相對的內容延遲，這也歸因於 COVID 在中國的死灰復燃。

And entering into Q3 or we are seeing a significant improvement in the Membership business, also because Q3 is traditionally the summer peak season. So starting from August, we've seen a lot of the major titles released online, including The Heart of Genius, the very blockbuster of (foreign language), which is a Love Between Fairy and Devil. So currently, overall, we are optimistic of the Q3 revenue performance for the sub business as well as the absolute subscriber base for Q3.

進入第三季度，我們看到會員業務有了顯著改善，這也是因為第三季度傳統上是夏季旺季。所以從8月份開始，我們看到了很多大片的上線，包括《天才之心》，（外語）的大片，仙女與惡魔的愛情。因此，目前，總體而言，我們對子業務第三季度的收入表現以及第三季度的絕對用戶群持樂觀態度。

(foreign language)

（外語）

[Interpreted] Sure. In the past 2.5 or 3 years, the Membership business experienced abnormal performance because of the COVID situation in China. For short-term speaking, there were some positive impacts. For example, we have seen sub base increase because of the Covid, but that situation probably would last a shorter period of term from 2 to 3 months. Overall speaking, I think the COVID situation for more on the negative side of our Membership business that trigger to the abnormal, pretty volatile and unhealthy development of the business.

[解釋] 當然。在過去的 2.5 或 3 年中，會員業務因中國的新冠疫情而出現異常表現。短期而言，有一些積極影響。例如，我們已經看到由於 Covid 導致的基數增加，但這種情況可能會持續較短的期限，從 2 到 3 個月。總體而言，我認為 COVID 情況對我們會員業務的負面影響更大，這會引發業務的異常、非常不穩定和不健康的發展。

And from the operational side, for the content offering, we have seen that has also negatively impacted of our content offerings. Then in the last 2 or 3 years, the approval process of our content business also has some impact as well, and also the consumer spending motivation were also impacted with the COVID situation in China and negatively impacted by the macro environment.

從運營方面來看，對於內容提供，我們已經看到這也對我們的內容提供產生了負面影響。然後在過去的兩三年裡，我們內容業務的審批流程也受到了一些影響，消費者的消費動機也受到了中國新冠疫情的影響，也受到了宏觀環境的負面影響。

So overall speaking, I would restate or I will summarize the past 2, 3 years as more on the negative side rather than the positive side for our Membership business. But currently, because of the whole pandemic situation is gradually improving and you've seen the negative impact is gradually decreasing over the recent period, especially since summer, we've seen a significant pickup in the consumption of the consumer spending, and the sentiment is positive on that side. So overall, speaking mid to long term of our Membership business, we are still very optimistic of our Membership business.

所以總的來說，我會重申，或者我會總結過去 2、3 年，對我們的會員業務來說，更多的是消極的一面，而不是積極的一面。但目前，由於整個疫情形勢在逐步好轉，近期負面影響在逐漸減弱，特別是夏季以來，我們看到消費支出明顯回升，市場情緒明顯回升。在那方面是積極的。所以總的來說，就我們會員業務的中長期而言，我們仍然對我們的會員業務非常樂觀。

(foreign language)

（外語）

[Interpreted] Okay. Earlier, I touched on the negative impact because of the pandemic situation, in the past 2 to 3 years. But starting in Q3, especially the second half of Q3 and to the future, we are seeing a gradual decrease of the negative impact because of COVID, and we're seeing a pickup in the overall business for our Membership business. There are two points. First, we anticipate the subbase for continuous growth in the future. And secondly, for our ARM that continued to grow in the past 6 quarters, and we anticipate this positive trend will continue in the future as well. Thank you.

[解釋] 好的。早些時候，我談到了過去 2 到 3 年由於大流行情況造成的負面影響。但是從第三季度開始，尤其是第三季度的下半年和未來，我們看到由於 COVID 帶來的負面影響逐漸減少，並且我們看到會員業務的整體業務有所回升。有兩點。首先，我們預計子基數將在未來持續增長。其次，對於我們在過去 6 個季度中持續增長的 ARM，我們預計這種積極趨勢也將在未來繼續下去。謝謝你。

And our next question today comes from Thomas Chong at Jefferies.

我們今天的下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) Just now in the prepared remarks, you have talked about the calm growth. Why is that our profit growth will be faster than the revenue growth?

（外語）剛才在準備好的發言中，你談到了平靜的成長。為什麼我們的利潤增長會快於收入增長？

(foreign language)

（外語）

[Interpreted] For the calm growth strategy, let me explain a little how we arrived to this strategy. Towards the end of last year, we built out a strategy that will increase our efficiency and optimize cost. We built out the different measures and plans to execute this strategy. After the past 2 quarters, we successfully kind of figure out what's the minimum that we can do to achieve this result and we also figure out the pattern that will guide us or enable us to achieve better efficiency and improvement in the future.

[解讀] 對於冷靜增長策略，讓我稍微解釋一下我們是如何得出這個策略的。去年年底，我們制定了一項提高效率和優化成本的戰略。我們制定了不同的措施和計劃來執行這一戰略。在過去的兩個季度之後，我們成功地弄清楚了實現這一結果的最低限度，我們還找出了指導我們或使我們能夠在未來實現更好的效率和改進的模式。

For example, we now can know after we have the increasing investments in some of the content that would generate high ROI, then that will positively lead to the higher margin growth towards profit, because we think a lot of the investment that we can gain from the past experiences, we know the content with higher ROI that we can invest in that will produce the same results or even better results from the user front. So that's why we think overall speaking, going forward, the profit will grow faster than revenue.

例如，我們現在可以知道，在我們對一些會產生高 ROI 的內容進行越來越多的投資之後，這將積極地導致更高的利潤增長，因為我們認為我們可以從中獲得很多投資過去的經驗，我們知道我們可以投資的具有更高投資回報率的內容將在用戶面前產生相同甚至更好的結果。所以這就是為什麼我們認為總體而言，未來利潤增長將快於收入增長。

And also, we think, even under the reasonable amount of increasing investment that will expedite the process even further. And looking back to the first half of this year, we actually controlled some of our investment in content and that we also see some fluctuations in the user growth that negatively impacted due to such reason. But going forward, we know if we increase the investment for these 2 areas, we will gain higher returns in the future, which means we will gain higher efficiency for any of the investment we put in going forward.

而且，我們認為，即使在合理增加投資的情況下，也會進一步加快這一進程。回顧今年上半年，我們實際上控制了部分內容投資，我們也看到用戶增長出現一些波動，因此受到了負面影響。但展望未來，我們知道如果我們增加對這兩個領域的投資，未來我們將獲得更高的回報，這意味著我們未來投入的任何投資都會獲得更高的效率。

And our next question today comes from Xueqing Zhang with CICC.

我們今天的下一個問題來自中金公司的張學慶。

(foreign language) And now I will translate myself. Congratulations on another strong quarter. Today, we have announced the USD 500 million private placement of convertible notes of PAG. So could management share more details about this, and in terms of financing activities, what's the plan for the future?

（外語）現在我要自己翻譯了。祝賀另一個強勁的季度。今天，我們宣布了PAG 5億美元可轉換票據的非公開配售。那麼管理層能否分享更多關於這方面的細節，在融資活動方面，未來的計劃是什麼？

Thanks, Xueqing. This is Jun. So for the sake of the time, probably I would just respond in English. As you just mentioned, this afternoon, actually, the company has announced to enter into the agreement with PAG for $500 million convertible issuance. And as you know, PAG is a leading investment firm in Asia Pacific with approximately, I think, 50 billion AUM, and we accumulated investment over 70 billion. And they are very active, very seasoned investors with real know-how in the digital media space with strong historical track record. So this is the general background.

謝謝，雪清。這是Jun。所以為了時間，我可能會用英語回答。正如你剛才提到的，今天下午，實際上，公司已經宣布與太盟集團簽訂5億美元可轉換債券的協議。如您所知，PAG 是亞太地區領先的投資公司，我認為資產管理規模約為 500 億，我們累計投資超過 700 億。他們是非常活躍、經驗豐富的投資者，在數字媒體領域擁有真正的專業知識，擁有良好的歷史記錄。所以這是一般背景。

I think this financing illustrates that PAG's recognition on companies improved fundamentals. And we do have improved competitiveness. We have margin expansion with an improved financial healthiness. And with all being said, I think most importantly, both sides have conviction that the iQIYI's media business to help future has great future, I think, growth potential. And this is one of the most important thing.

我認為這次融資說明太盟對公司的認可改善了基本面。我們確實提高了競爭力。我們的利潤率擴大，財務狀況改善。綜上所述，我認為最重要的是，雙方都堅信愛奇藝幫助未來的媒體業務有很大的未來，我認為，增長潛力。這是最重要的事情之一。

Then another consensus, I would say between two parties is that the iQIYI's value has been heavily underestimated. And one of the catalysts for value recovery probably is to find a way to solve the current debt overhang as the market pick up. And this $500 million financing is a joint cooperation, I think the first step on company's liability management, although it's not enough to solve all the problems.

然後另一個共識，我想說的是，兩黨之間的共識是，愛奇藝的價值被嚴重低估了。價值復甦的催化劑之一可能是找到解決當前市場回暖的債務積壓的方法。而這次5億美元的融資是共同合作，我認為是公司負債管理的第一步，雖然還不足以解決所有問題。

And we're all clear that $500 million is only a step stone, and we still have a journey to go to solve our problems. And during this process, we do need collaboration and efforts from all the partners, including the company, including our employees, including the company's stakeholders and note holders as well. And it's still, with the completion, I would say, with the signing of this $500 million financing, we are still not in a position to sit back and relax mode. We are still going to work hard on that.

我們都清楚，5 億美元只是一個墊腳石，我們還有一段路要走來解決我們的問題。在這個過程中，我們確實需要包括公司在內的所有合作夥伴，包括我們的員工，包括公司的利益相關者和票據持有人在內的所有合作夥伴的協作和努力。而且，我想說的是，隨著這筆 5 億美元融資的簽署，我們仍然無法高枕無憂。我們仍將為此努力。

And of course, we are very confident that if we can solve these technical issues with all collaborations from all parties, if we can recover the company's value, all the value unlocked can help the investors, whoever help the company, can help the investors to gain, I would say, satisfying reward and returns going forward. So this is all that I will share regarding the -- our private placement as well as the future -- some of the future thinkings.

當然，我們非常有信心，如果我們能夠在各方的共同努力下解決這些技術問題，如果我們能夠恢復公司的價值，所有解鎖的價值都可以幫助投資者，誰幫助了公司，誰就可以幫助投資者我會說，獲得令人滿意的回報和回報。這就是我將分享的關於我們的私募以及未來的一些未來想法的全部內容。

And our next question today comes from Lincoln Kong with Goldman Sachs.

我們今天的下一個問題來自林肯康和高盛。

(foreign language) So the question is about the cooperation with Douyin. Since we have signed agreements on a copyright of our video contents, so how should we think about the future potential collaboration formats? And how would they help us in terms of other user acquisition, copyright distribution and other potential commercial efforts to our financials?

（外語）所以問題是關於與抖音的合作。既然我們已經簽署了視頻內容的版權協議，那麼我們應該如何考慮未來可能的合作形式？在其他用戶獲取、版權分發和其他潛在的商業努力方面，它們將如何幫助我們？

(foreign language)

（外語）

[Interpreted] Okay. Let me explain or elaborate a little bit more on the Douyin collaboration. We went through the negotiation process in the past months, and both parties were very sincere, and we wanted to create a win-win situation for this ecosystem as well as for the video space. I probably won't go too much into the details of the process, but there are a few aspects I wanted to share with you guys.

[解釋] 好的。讓我對抖音合作進行更多解釋或詳細說明。過去幾個月我們經歷了談判過程，雙方都非常真誠，我們希望為這個生態系統和視頻空間創造雙贏的局面。這個過程的細節我可能不會過多介紹，但有幾個方面我想和大家分享。

First, within this collaboration, iQIYI is authorized to authorize Douyin to use some of the content that have the license right to distribute using -- for creation of short-form videos. But within that framework, we had a specific arrangement for (inaudible), which means the recreation for the short-from videos. The target is that we won't hurt the long-form video viewing experience for this collaboration, which also means that we can use this collaboration for many of our very high-quality premium content to reach a broader audience, which also means utilize the short-form video to brought the traffic to iQIYI platform for the long-form video. And that's this one aspect.

首先，在本次合作中，愛奇藝有權授權抖音使用部分擁有發行許可的內容——用於製作短視頻。但在那個框架內，我們對（聽不清）有一個特定的安排，這意味著對短片的重新製作。目標是我們不會損害這次合作的長視頻觀看體驗，這也意味著我們可以將這次合作用於我們的許多非常高質量的優質內容以接觸更廣泛的受眾，這也意味著利用短視頻為長視頻帶來了愛奇藝平台的流量。這就是一方面。

Another aspect is we're getting the financial returns for this collaboration. The results you will see starting from the third quarter of this year, it had positive impact for revenue as well as profit and as well as cash flow have positive impact because of this collaboration.

另一個方面是我們正在從這次合作中獲得經濟回報。您將從今年第三季度開始看到的結果，它對收入和利潤產生了積極影響，並且由於這種合作，現金流也產生了積極影響。

And thirdly, we also will collaborate in other operational front. For example, products, technology and daily operations of the platform. Because we just signed this agreement in Q3, in July, we are getting things worked out and we will roll out products and also content starting from, I would say, this -- towards the end of Q3. So you will anticipate more products and content related to this cooperation with Douyin starting from that period.

第三，我們還將在其他運營方面進行合作。例如，平台的產品、技術和日常運營。因為我們剛剛在第三季度簽署了這項協議，所以在 7 月份，我們正在解決問題，我們將推出產品和內容，我想說的是，到第三季度末。所以從那個時期開始，你會期待更多與抖音合作相關的產品和內容。

(foreign language)

（外語）

[Interpreted] Okay. Let me share some of the mid- to long-term views of this collaboration. First, I will share from the industry perspective. First of all, because iQIYI and Douyin are both the leading players in the market one is for short-form and one is for long-form. So under this collaboration, very importantly, we're setting rules for this industry and creating win-win collaboration for both platforms. So basically, this demonstrates the very positive and sustainable development of this video business in the long term, which is very beneficial for both platforms and also for the users as well as for this ecosystem.

[解釋] 好的。讓我分享一下這次合作的一些中長期觀點。首先，我將從行業角度進行分享。首先，因為愛奇藝和抖音都是市場的龍頭，一個是做空的，一個是做長的。所以在這次合作下，非常重要的是，我們正在為這個行業製定規則，並為兩個平台創造雙贏的合作。所以基本上，這表明了這個視頻業務從長遠來看是非常積極和可持續的發展，這對平台和用戶以及這個生態系統都是非常有利的。

And second, for creators and the industries, we are creating a very -- I would say, advanced or better IP solutions, which will push the IP protection as well as the legal enforcement of our premium long-form content. And also, it will, to some extent, decrease, I would say, copyright infringement situation in some of the short-form videos.

其次，對於創作者和行業，我們正在創建一個非常先進或更好的知識產權解決方案，這將推動知識產權保護以及我們優質長篇內容的法律執行。而且，它會在一定程度上減少一些短視頻中的版權侵權情況。

And also very importantly, for the creator's perspective, I will say they have more time now to be concentrated and more dedicated to bring more creative talent, and unleash their creative talent to bring more positive and high-quality content to our users. And this will also be very beneficial for the IP license holders as well.

而且非常重要的是，從創作者的角度來說，我想說他們現在有更多的時間可以集中精力，更專注於帶來更多的創意人才，發揮他們的創意才能，為我們的用戶帶來更多積極和優質的內容。這對知識產權許可持有人也非常有利。

Above were the positive impact for the video industry, and I will share on some of the views for iQIYI specific. First of all, I will say, this collaboration demonstrated the very premium content of iQIYI are recognized by the industry as well as our users. Also, it demonstrates the monetization potential of our high-quality premium content in the future.

以上是對視頻行業的積極影響，我將分享一些針對愛奇藝的看法。首先，我要說的是，這次合作證明了愛奇藝非常優質的內容得到了行業和用戶的認可。此外，它展示了我們高質量優質內容在未來的貨幣化潛力。

Second, through this collaboration, it will help iQIYI's premium content to reach a broader group of users, and creating bigger impact of our content, that will also draw increasing number of users as well as members of the platform. Thank you.

其次，通過此次合作，將幫助愛奇藝的優質內容觸達更廣泛的用戶群體，並為我們的內容創造更大的影響力，這也將吸引越來越多的用戶和平台成員。謝謝你。

And ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to Ms. You for closing remarks.

女士們，先生們，我們的問答環節到此結束。我想把會議轉回給尤女士做閉幕詞。

Thanks, everyone, for joining the call. Please contact us if you have any further questions. See you next quarter. Thank you. Bye-bye.

謝謝大家加入電話會議。如果您有任何其他問題，請聯繫我們。下個季度見。謝謝你。再見。

Thank you. This concludes today's conference. So we thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝你。今天的會議到此結束。因此，我們感謝大家參加今天的演講。您現在可以斷開線路，度過美好的一天。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此成績單中標記為 [已翻譯] 的部分由現場通話中的口譯員朗讀。]