NetEase Inc (NTES) 2022 Q1 法說會逐字稿

Good day and welcome to the NetEase First Quarter 2022 Earnings Conference Call. Today's conference is being recorded.

美好的一天，歡迎參加網易 2022 年第一季度財報電話會議。今天的會議正在錄製中。

At this time, I would like to turn the conference over to Margaret Shi, IR Director of NetEase. Please go ahead, ma'am.

在這個時候，我想把會議交給網易的 IR 總監 Margaret Shi。請繼續，女士。

Thank you, operator. Please note the discussion today will contain forward-looking statements relating to future performance of the company and are intended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and in this discussion.

謝謝你，接線員。請注意，今天的討論將包含與公司未來業績相關的前瞻性陳述，旨在符合《美國私人證券訴訟改革法案》規定的免責安全港的資格。此類陳述不是對未來業績的保證，並受某些風險和不確定性、假設和其他因素的影響。其中一些風險超出了公司的控制範圍，可能導致實際結果與今天的新聞稿和本次討論中提到的結果大不相同。

A general discussion of the risk factors that could affect NetEase business and financial results is included in certain filings of the company with the Securities and Exchange Commission, including its annual report on Form 20-F, and the announcement and the filings on the website of Hong Kong Stock Exchange.

對可能影響網易業務和財務業績的風險因素的一般性討論包含在公司向證券交易委員會提交的某些文件中，包括其表格 20-F 的年度報告，以及公告和網站上的文件。香港證券交易所。

The company does not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the 2022 first quarter earnings news release issued earlier today.

除非法律要求，否則公司不承擔更新此前瞻性信息的任何義務。在今天的電話會議中，管理層還將討論某些非公認會計準則財務指標，僅供比較。有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務結果的對賬，請參閱今天早些時候發布的 2022 年第一季度收益新聞稿。

As a reminder, this conference is being recorded. In addition, investor presentation and a webcast replay of this conference call will be available on the NetEase corporate website at ir.netease.com.

提醒一下，本次會議正在錄製中。此外，投資者介紹和本次電話會議的網絡重播將在網易公司網站 ir.netease.com 上提供。

Joining us today on the call from NetEase senior management is Mr. William Ding, Chief Executive Officer; Mr. Charles Yang, Chief Financial Officer; and other members of senior management.

今天應網易高級管理層的電話加入我們的是首席執行官William Ding先生；首席財務官 Charles Yang 先生；和其他高級管理人員。

I will now turn the call over to Charles, who will read the prepared remarks on behalf of William.

我現在將把電話轉給查爾斯，查爾斯將代表威廉宣讀準備好的講話。

Thank you, Margaret, and thank you, everyone, for participating in today's call. Before we begin, I would like to remind everyone that all percentages are based on RMB.

謝謝瑪格麗特，謝謝大家參加今天的電話會議。在開始之前，我想提醒大家，所有百分比都是以人民幣為單位的。

We kicked off 2022 with a solid quarter, advancing each of our business lines, with total revenues coming in at RMB 23.6 billion, up nearly 15% year-over-year, and our net operating profit increased 29% year-over-year to RMB 5.5 billion. Online games revenues were RMB 17.3 billion, growing by 15% year-over-year.

2022年以穩健的季度拉開帷幕，各項業務不斷推進，總收入達到人民幣236億元，同比增長近15%，淨利潤同比增長29%至55億元人民幣。網絡遊戲收入173億元，同比增長15%。

Our flagship titles continue to impress with their remarkable longevity and strength. In the first quarter, revenue from Fantasy Westward Journey Online and new Westwood Journey Online II continued to grow steadily, demonstrating NetEase's core competence in operating franchise IPs over an impressive duration and longevity of about 20 years.

我們的旗艦遊戲繼續以其非凡的壽命和實力給人留下深刻印象。一季度，《夢幻西遊OL》和《新西遊記2》的收入持續穩定增長，顯示了網易在運營特許經營IP方面的核心競爭力，持續時間長達20年左右。

With immersive festive activities and engaging new expansion packs during the Chinese New Year period, we are thrilled that these epic games remain as attractive and appealing to the players as ever. We are actively growing many other long-lasting franchises in addition to these legacy titles, keeping our content fresh with years of perseverance and dedicated craftsmanship. Take LifeAfter as an example, our open world doomsday survival game, first introduced in 2018 continues to lead its category with its distinctive survival game play.

在農曆新年期間，通過身臨其境的節日活動和引人入勝的新擴展包，我們很高興這些史詩般的遊戲仍然像以往一樣吸引玩家。除了這些傳統遊戲外，我們還在積極發展許多其他經久不衰的特許經營權，憑藉多年的毅力和專注的工藝保持我們的內容新鮮。以 LifeAfter 為例，我們於 2018 年首次推出的開放世界末日生存遊戲，以其獨特的生存遊戲玩法繼續引領同類游戲。

Since its operation of more than 3 years ago, we've been frequently rolling out big updates for LifeAfter on an almost quarterly basis, refreshing players' appetite with numerous content updates. In the first quarter, the Spring Festival version of LifeAfter brought the game to the forefront once again on China's iOS top grossing chart.

LifeAfter運營3年多以來，我們幾乎每季度都會頻繁推出大更新，以海量內容更新刷新玩家的胃口。第一季度，春節版LifeAfter再次將游戲帶到了中國iOS暢銷榜的前列。

In terms of newly launched titles, nearly 1 year since its launch, NARAKA: BLADEPOINT maintains strong engagement levels with fast-paced content updates, including new gameplay, heroes and weapons. Adding to our regular update schedule, we are prepping for a significant update, including the first new map to bring new excitement to the whole player community in the second half of this year. Featuring unchained melee combat, NARAKA: BLADEPOINT was a huge breakthrough for us in eSports and has become one of the most popular games on live streaming platforms in China. To round out the games ecosystem, we established a multi-tiered tournament system consisting of scrimmages, regional tournaments and a World Championship catering to different player groups including the general public as well as professional teams across different regions.

在新推出的遊戲方面，自推出近 1 年以來，NARAKA：BLADEPOINT 通過快節奏的內容更新（包括新的遊戲玩法、英雄和武器）保持著強大的參與度。除了我們的定期更新計劃外，我們正在為重大更新做準備，包括今年下半年為整個玩家社區帶來新的興奮的第一張新地圖。 NARAKA：BLADEPOINT 以無束縛的近戰格鬥為特色，是我們在電子競技領域的巨大突破，並已成為中國直播平台上最受歡迎的遊戲之一。為完善遊戲生態系統，我們建立了由混戰、區域錦標賽和世界錦標賽組成的多層次錦標賽體系，滿足不同玩家群體，包括普通大眾以及不同地區的專業團隊。

In January, we concluded the first World Championship tournament, the game's highest level of competition, which attracted considerable attention from eSports fans worldwide and brought global players in an exciting visual feast. We are also seeing growing momentum with Infinite Lagrange, similar to our original SLG game Invincible, this next-generation SLG title has begun to show healthy sustainable growth trend in the first quarter. As the game advances, we are steadily gaining more confidence in our ability to extend the success of SLG games to an even broader demographic.

1月，我們結束了世界電競最高級別賽事的首屆世界總決賽，吸引了全球電競愛好者的高度關注，為全球玩家帶來了一場精彩紛呈的視覺盛宴。我們也看到了 Infinite Lagrange 的增長勢頭，類似於我們最初的 SLG 遊戲 Invincible，這款下一代 SLG 遊戲在第一季度已經開始呈現出健康的可持續增長趨勢。隨著遊戲的發展，我們對將 SLG 遊戲的成功擴展到更廣泛的人群的能力越來越有信心。

In April, we launched Dead by Daylight Mobile in Asia, co-developed with Behavior and published by us. Dead by Daylight Mobile is the mobile version of the famous asymmetrical battle arena game, bringing players unrivaled asymmetrical competitive experiences on mobile platforms. Soon after its debut, Dead by Daylight Mobile tops the iOS download chart in both Japan and Thailand, with very strong user engagement.

4 月，我們在亞洲推出了 Dead by Daylight Mobile，與 Behaviour 共同開發並由我們發布。 Dead by Daylight Mobile是著名的非對稱競技場遊戲的移動版，為玩家帶來無與倫比的移動平台非對稱競技體驗。首次亮相後不久，Dead by Daylight Mobile 就在日本和泰國的 iOS 下載排行榜上名列前茅，用戶參與度非常高。

In the second half of the year, we plan to bring to the world more exciting titles, which we hope to thrill our growing global community. In particular, we are extremely excited to have Diablo Immortal slated for release on June 2 in most global markets. And last Friday, at our annual Game Day event, we announced that the China launch of Diablo Immortal is now confirmed for June 23. As one of the gamer community's most anticipated titles this year, Diablo Immortal marks one of the most ambitious games released in the Diablo franchise's 25-year history, and will bring fans and new players an uncompromised triple-A gaming experience.

在下半年，我們計劃為世界帶來更多激動人心的遊戲，我們希望這些遊戲能夠讓我們不斷壯大的全球社區興奮不已。尤其是，我們非常高興《暗黑破壞神》將於 6 月 2 日在全球大部分市場發售。上週五，在我們一年一度的遊戲日活動中，我們宣布《暗黑破壞神不朽》現已確認於 6 月 23 日在中國推出。作為今年遊戲玩家社區最受期待的遊戲之一，《不朽的暗黑破壞神》標誌著今年發布的最雄心勃勃的遊戲之一。暗黑破壞神系列的 25 年曆史，將為粉絲和新玩家帶來無與倫比的 AAA 級遊戲體驗。

Preregistration has been exceptional, with more than 35 million people preparing for the battles to come worldwide, including 15 million in China and counting. Diablo Immortal supports both cross-play and cross-progression, allowing global players to join the fight with each other regardless of platform, while being able to seamlessly transition between mobile and PC gameplay. We consider the debut of Diablo Immortal a huge opportunity to show the world, particularly western gamer community, about NetEase's strong R&D capability. We take a very global view of our online gaming business, and Diablo Immortal truly embodies the sort of worldwide appeal that we hope to possess.

預註冊非常出色，全球有超過 3500 萬人為即將到來的戰鬥做準備，其中包括中國的 1500 萬人，而且還在不斷增加。 《暗黑破壞神不朽》同時支持跨界和跨進程，讓全球玩家無論在何種平台上都可以相互加入戰鬥，同時能夠在移動和PC遊戲之間無縫過渡。我們認為《暗黑破壞神》的首次亮相是向世界，尤其是西方遊戲玩家社區展示網易強大研發能力的巨大機會。我們以非常全球化的眼光看待我們的在線遊戲業務，而暗黑破壞神不朽真正體現了我們希望擁有的那種全球吸引力。

Next in the pipeline, we will be introducing NARAKA: BLADEPOINT on console. The development is well on track, and we are definitely excited about its prospects and to welcome console players to our global NARAKA: BLADEPOINT community. Equally exciting is our planned global market launch of Harry Potter: Magic Awakened, which captivated the Chinese market since last September. While we are putting great effort into the global vision, we are also simultaneously working intensively to update the game in China, regularly rolling out new cards, costumes and gameplay to add even more fun.

接下來，我們將在控制台上介紹 NARAKA：BLADEPOINT。開發進展順利，我們對其前景感到非常興奮，並歡迎主機玩家加入我們的全球 NARAKA：BLADEPOINT 社區。同樣令人興奮的是我們計劃在全球市場推出的《哈利波特：魔法覺醒》，自去年 9 月以來就吸引了中國市場。我們在全球視野下傾注心血的同時，也在加緊更新中國區的遊戲，定期推出新卡牌、新服裝、新玩法，為遊戲增添更多樂趣。

Our rich pipeline goes far beyond these titles, and we continue to initiate new projects on schedule. As usual, we held our 2022 annual game product launch event last Friday on May 20, revealing the latest information about other exciting titles in the pipeline, including the mobile versions of Justice and NARAKA: BLADEPOINT; Eggy Party, a casual game; Roar of War; Vive le Football; and Mission Zero. We encourage you to read through our press release about this event or watch last Friday's event replay to get more comprehensive information.

我們豐富的管道遠遠超出了這些標題，我們將繼續按計劃啟動新項目。與往常一樣，我們於 5 月 20 日上週五舉行了 2022 年度遊戲產品發布會，展示了其他正在籌備中的精彩遊戲的最新信息，包括《正義》和《NARAKA：BLADEPOINT》的移動版； Eggy Party，一款休閒遊戲；戰爭的咆哮；足球萬歲；和零任務。我們鼓勵您閱讀我們關於此活動的新聞稿或觀看上週五的活動重播以獲取更全面的信息。

In 2022, we have made more solid progress in globalization. We have always been relentless in our drive to invest in and empower our people, and we are incredibly excited to have more global talents joining us. After years of strategic planning, we now have a number of first-party overseas studios across Japan and North America, each of them being led by top industry veterans who are using their creativity to forge their best titles on NetEase's platform.

2022年，我們的全球化進程更加紮實。我們一直在不懈地努力投資並賦予我們的員工權力，我們非常高興有更多的全球人才加入我們。經過多年的戰略規劃，我們現在在日本和北美擁有多個第一方海外工作室，每個工作室都由頂級行業資深人士領銜，他們在網易平台上發揮創造力，打造出最好的作品。

For example, our 3 Japanese studios aim to build great console games for both the Japanese and the global audience. Earlier this month, we also launched our first U.S. studio, Jackalope Games led by industry veteran, Jack Emmert, who has decades of experience in MMO game development.

例如，我們的 3 個日本工作室旨在為日本和全球觀眾打造出色的主機遊戲。本月早些時候，我們還推出了我們的第一個美國工作室 Jackalope Games，由行業資深人士 Jack Emmert 領導，他在 MMO 遊戲開發方面擁有數十年的經驗。

Our idea is to persistently unleash talent potential by enabling them to focus on core mechanics and storylines with creative autonomy, while offering them solid technical support in areas such as coding and art design. Going forward, we hope the world will see more of NetEase's relevance on triple-A releases in the global market, either through self-development, investments or publishing.

我們的想法是通過使他們能夠專注於具有創造性自主權的核心機制和故事情節，同時在編碼和藝術設計等領域為他們提供堅實的技術支持，從而持續釋放人才潛力。展望未來，我們希望世界能夠通過自主開發、投資或發布，更多地看到網易在全球市場上對 AAA 版本的相關性。

Now turning to our education business. NetEase Youdao achieved a solid and sustainable performance in the first quarter after disposing of its academic after-school tutoring businesses, with total net revenues of RMB 1.2 billion and gross margin of 53.1%. Smart learning devices remain the key driver of Youdao's future growth. In the first quarter, Youdao continued to extend its technology offering by launching improved content, features and new products.

現在轉向我們的教育業務。網易有道在出售其學術課外輔導業務後，一季度實現穩健且可持續的業績，總淨收入為人民幣12億元，毛利率為53.1%。智能學習設備仍然是有道未來增長的主要驅動力。第一季度，有道繼續通過推出改進的內容、功能和新產品來擴展其技術產品。

Net revenues from Youdao smart devices segment reached RMB 253 million, representing an increase of 25% year-over-year. Through partnership with Education Presses in 11 additional regions, we have added original sounds to the Youdao listening Pod based on various versions of the English learning textbooks. In early April, we introduced a new product named Youdao Smart Light, Youdao (inaudible), which integrates AI learning features into a desk lamp. Powered by our robust AI algorithms, it allows users to schedule a plan before they study, look up meanings and translations of words and sentences in Chinese and English during their study time, and inspect and review their homework after they finished studies.

有道智能設備板塊的淨收入達到人民幣2.53億元，同比增長25%。通過與其他 11 個地區的教育出版社合作，我們在有道聽力 Pod 中添加了基於各種版本的英語學習教材的原創聲音。 4月初，我們推出了一款名為有道智能燈的新產品，有道（聽不清），它將AI學習功能集成到檯燈中。在我們強大的人工智能算法的支持下，它允許用戶在學習之前安排計劃，在學習期間查找中英文單詞和句子的含義和翻譯，並在完成學習後檢查和回顧他們的作業。

By clicking the screen to conduct research, the device helps students develop more independent learning habits and significantly improve their learning efficiency while protecting their eyes.

該設備通過點擊屏幕進行研究，幫助學生養成更自主的學習習慣，在保護眼睛的同時顯著提高學習效率。

Looking towards growth opportunities in the STEAM education sector, we have worked hard to optimize the functions and user experience for different courses. As a result, for example, gross billings from Youdao Chess class increased over 170% quarter-over-quarter. In addition to content upgrades, we have also built a learning community on the Youdao boardgame academy app. On this platform, students of Go, Chess and Chinese Chess classes can interact and compete with AI or their peers of similar levels in a fun and engaging way.

展望 STEAM 教育領域的增長機會，我們努力優化不同課程的功能和用戶體驗。因此，例如，有道國際象棋課的總收入環比增長了 170% 以上。除了內容升級，我們還在有道桌遊學院app上搭建了學習社區。在這個平台上，圍棋、國際象棋和中國象棋班的學生可以以有趣和引人入勝的方式與人工智能或類似水平的同齡人互動和競爭。

To complete the cycle of learning, testing and grading, Youdao has applied to become an official online testing and certification site for various board game associations in China to make the skill certification process easier for our students.

為了完成學習、測試和評分的循環，有道已申請成為中國各個棋盤遊戲協會的官方在線測試和認證網站，以使我們的學生更容易獲得技能認證過程。

Looking ahead to the remainder of 2022, Youdao will remain focused on upgrading its diversified portfolio of products and services, and we have confidence in its future development powered by its sophisticated R&D capabilities and persistent drive to empower education with our technology.

展望 2022 年剩餘時間，有道將繼續專注於升級其多元化的產品和服務組合，我們對其未來的發展充滿信心，其成熟的研發能力和堅持以我們的技術賦能教育的動力。

With NetEase Cloud Music, we maintained steady momentum in the first quarter. MAU for our online services were 182 million, largely stable both year-over-year and quarter-over-quarter. We also continue to improve our monetization capabilities, growing our net revenues by 39% year-over-year to RMB 2.1 billion, driven by healthy membership growth and robust social entertainment services.

借助網易云音樂，我們在第一季度保持了穩定的勢頭。我們在線服務的月活躍用戶為 1.82 億，同比和環比基本穩定。我們還繼續提高我們的貨幣化能力，在健康的會員增長和強大的社交娛樂服務的推動下，我們的淨收入同比增長 39% 至人民幣 21 億元。

Our membership paying ratio reached 20% compared with 13% in the same period last year. We made enhancements to our content and introduced more product feature innovations to improve the user experience, which helps us drive paying user growth. Additionally, gross margins more than doubled quarter-over-quarter in the first quarter, reaching over 12% as we continue to optimize our content cost structure.

我們的會員付費率達到20%，而去年同期為13%。我們對內容進行了增強，並引入了更多的產品功能創新來改善用戶體驗，這有助於我們推動付費用戶的增長。此外，隨著我們繼續優化內容成本結構，第一季度毛利率環比增長了一倍以上，達到 12% 以上。

On the new features front, we introduced our innovative Harry Potter Magic Radio, a joint collaboration with NetEase Games team, which allows users and gamers to enjoy Harry Potter-themed podcast content within the game. While we continue to add unique products and capabilities that help redefine our community's music experience, we are also improving our brand awareness and influence with content-oriented and event-driven campaigns. We offer a full spectrum of varied content as the demands of our useful user base are increasingly diverse and personalized.

在新功能方面，我們推出了與網易遊戲團隊聯合合作的創新哈利波特魔法廣播，讓用戶和遊戲玩家可以在遊戲中享受哈利波特主題的播客內容。在我們繼續添加有助於重新定義社區音樂體驗的獨特產品和功能的同時，我們還通過以內容為導向和以事件為導向的活動來提高我們的品牌知名度和影響力。隨著我們有用的用戶群的需求越來越多樣化和個性化，我們提供了全方位的各種內容。

By the end of March 2022, our content library consists of more than 90 million music tracks, including music from established labels as well as independent artists. We are attracting independent music talent at a notable rate. And by the end of the first quarter, we have more than 450,000 registered independent artists on our platform.

到 2022 年 3 月底，我們的內容庫包含超過 9000 萬首音樂曲目，包括來自知名唱片公司和獨立藝術家的音樂。我們正在以顯著的速度吸引獨立音樂人才。到第一季度末，我們平台上註冊的獨立藝術家超過 45 萬。

To help independent artists create and promote their music as well as realized commercial value, we continue to nurture music talent with invaluable tools such as support programs, traffic referrals, fan interactions and multiple monetization methods.

為了幫助獨立藝術家創作和推廣他們的音樂並實現商業價值，我們繼續通過支持計劃、流量推薦、粉絲互動和多種貨幣化方法等寶貴的工具來培養音樂人才。

Moving on to Yanxuan. April marked its sixth year anniversary. Over the course of the last 6 years, we have built Yanxuan into an exciting private label consumer lifestyle brand. We have established a strong supply chain system and can accurately profile user preferences with our leading algorithms. Through diversified channels, Yanxuan has launched a number of popular products such as cat food, bathroom fragrance and ergonomic chairs.

繼續前往燕軒。四月是它的六週年紀念日。在過去的 6 年中，我們將燕軒打造成為一個令人興奮的自有品牌消費者生活方式品牌。我們建立了強大的供應鏈體系，可以通過我們領先的算法準確地描述用戶偏好。通過多元化渠道，燕軒推出了貓糧、浴室香氛、人體工學椅等多款熱門產品。

As we move ahead, Yanxuan will continue to focus on pets, home cleaning, bedding and other categories that we excel in, while we continue to launch our regional design products and bring consumers products that facilitate more chilled and pleasant lifestyle.

隨著我們的前進，燕軒將繼續專注於寵物、家居清潔、床上用品等我們擅長的品類，同時繼續推出我們的區域設計產品，為消費者帶來更涼爽、更愉快的生活方式。

Above all else, NetEase is always a content company with deep rooted internet DNA. Our ability to innovate, create and leverage our proprietary technology forms a cohesive layer across our different business lines, whether it be games, education or music. Within each of these areas of robust content, we are steadfast in our mission. Dedicated to improve our content competitiveness, we will continue to invest and innovate to provide users with excellent products and services full of fun, technology and surprises.

最重要的是，網易始終是一家擁有深厚互聯網 DNA 的內容公司。我們創新、創造和利用我們的專有技術的能力在我們不同的業務線中形成了一個凝聚力層，無論是遊戲、教育還是音樂。在這些內容豐富的領域中，我們堅定不移地履行我們的使命。致力於提升我們的內容競爭力，我們將不斷投入和創新，為用戶提供充滿樂趣、科技和驚喜的優秀產品和服務。

At the forefront of each of our business lines is our commitment to social responsibility and charitable endeavors. With the recent pandemic cases in China, each of our businesses have utilized their resources to help the community we are serving. In March, NetEase Group distributed 1 million copies of anti-pandemic gift packages to cater to people's entertainment, work and consumption needs. More recently, leveraging the advantage of our supply chain, Yanxuan mobilized 50 pounds of fresh vegetables from our fresh food suppliers for people in COVID-affected Shanghai areas.

在我們每條業務線的最前沿是我們對社會責任和慈善事業的承諾。隨著中國最近的大流行病例，我們的每個企業都利用他們的資源來幫助我們所服務的社區。 3月，網易集團發放抗疫大禮包100萬份，滿足人們的娛樂、工作和消費需求。最近，燕軒利用我們的供應鏈優勢，從我們的新鮮食品供應商那里為受 COVID 影響的上海地區的人們調集了 50 磅新鮮蔬菜。

Additionally, leveraging the power of music as an inspiring and uniting cause, we distributed another 5 million Cloud Music Vinyl memberships for free to the people in Shanghai and Jilin province, with the goal of using music to comfort and inspire those impacted by the pandemic.

此外，利用音樂作為鼓舞人心和團結的力量，我們又向上海和吉林省的人們免費發放了 500 萬個 Cloud Music 黑膠會員，目的是用音樂來安慰和激勵受疫情影響的人們。

This concludes William's comments. I will now provide a brief review of our 2022 first quarter financial results. Given the limited time on today's call, I will be presenting some abbreviated financial highlights. We encourage you to read through our press release issued earlier today for further details.

威廉的評論到此結束。我現在將簡要回顧一下我們 2022 年第一季度的財務業績。鑑於今天電話會議的時間有限，我將介紹一些簡短的財務亮點。我們鼓勵您閱讀我們今天早些時候發布的新聞稿以獲取更多詳細信息。

Total net revenues for the first quarter were RMB 23.6 billion, or USD 3.7 billion, representing a 15% increase year-over-year. Net revenues from online game services were RMB 17.3 billion, up 15% year-over-year. The additional growth was primarily due to the increased revenue contribution from the launch of new games such as NARAKA: BLADEPOINT and Harry Potter: Magic Awakened. Net revenues from our mobile games accounted for approximately 67% of total games revenue.

第一季度總淨收入為人民幣 236 億元，即 37 億美元，同比增長 15%。網絡遊戲服務淨收入173億元，同比增長15%。額外增長主要是由於推出新遊戲（如 NARAKA: BLADEPOINT 和 Harry Potter: Magic Awakened）帶來的收入貢獻增加。我們手機遊戲的淨收入約佔遊戲總收入的 67%。

Youdao's net revenues were RMB 1.2 billion, compared with RMB 1.3 billion last year same quarter. Youdao discontinued its after-school tutoring services for academic subjects under China's compulsory education system, K9, since the fourth quarter of last year per regulatory requirement. If we exclude discontinued business, Q1's apple-to-apple revenue stayed relatively stable compared with last year.

有道的淨收入為人民幣12億元，而去年同期為人民幣13億元。根據監管要求，有道自去年第四季度起停止了針對中國義務教育系統 K9 學科的課後輔導服務。如果我們排除已停產的業務，Q1 的蘋果對蘋果的收入與去年相比保持相對穩定。

On the other hand, the Smart Devices business maintained steady growth trajectory, with net revenues up 25% year-over-year.

另一方面，智能設備業務保持穩定增長軌跡，淨收入同比增長 25%。

Net revenues from Cloud Music were RMB 2.1 billion, up 39% year-over-year. The increase was primarily due to increased revenues from membership subscription and social entertainment services.

雲音樂的淨收入為人民幣21億元，同比增長39%。增長主要是由於會員訂閱和社交娛樂服務的收入增加。

Net revenues for innovative businesses and others were RMB 3 billion, up nearly 12% year-over-year due to business development and seasonality impact of various lines. Our total gross profit margin was 54.5% in the first quarter, up slightly compared with 53.9% in the first quarter of last year. GP margin for our online game services remained stable at 65.1%. As a reminder, this number is generally stable with some narrow fluctuations based on the revenue mix of mobile and PC titles as well as self-developed and licensed games.

受業務發展及各條線季節性影響，創新業務及其他業務淨收入30億元，同比增長近12%。一季度我們的總毛利率為54.5%，比去年一季度的53.9%略有上升。我們在線遊戲服務的毛利率保持穩定在 65.1%。提醒一下，根據移動和 PC 遊戲以及自主開發和授權遊戲的收入組合，這個數字總體上是穩定的，略有波動。

GP margin for Youdao was 53.1% compared with 57.3% in the same period of the last year. The decline was mainly due to the lower revenue proportion from Youdao's learning services, which carry a relatively higher margin.

有道的毛利率為53.1%，而去年同期為57.3%。下降的主要原因是有道學習服務的收入比例較低，而後者的利潤率相對較高。

GP margin for Cloud Music excelled in this quarter, climbing to 12.2% versus 4.1% in the preceding quarter and a negative margin of 3.1% in the same period last year. The significant margin improvement primarily resulted from strong top line growth, as well as improved content cost control. Additionally, this marks our fourth consecutive quarter of positive growth GP margin for Cloud Music.

雲音樂的毛利率在本季度表現出色，從上一季度的 4.1% 攀升至 12.2%，去年同期為負 3.1%。利潤率的顯著提高主要得益於強勁的收入增長以及內容成本控制的改善。此外，這標誌著我們連續第四個季度實現 Cloud Music 的 GP 利潤率正增長。

Gross profit margin for innovative businesses and others was 23.3%, flattish compared with 24.1% in the first quarter of last year.

創新業務及其他業務的毛利率為23.3%，與去年一季度的24.1%持平。

Total operating expenses for the first quarter were RMB 7.3 billion or 31% of our total net revenues. If you look at our costs in more detail, our selling and marketing expenses as a percentage of net revenues were 12% compared with 13% last year. The change was mainly due to less marketing spending related to Youdao. If we exclude Youdao, our selling and marketing expenses as a percentage of net revenue were 11% compared with 10% last year, mainly due to increased spending on certain games' promotions in the first quarter.

第一季度總營業費用為人民幣 73 億元，占我們總淨收入的 31%。如果您更詳細地查看我們的成本，我們的銷售和營銷費用占淨收入的百分比為 12%，而去年為 13%。這一變化主要是由於與有道相關的營銷支出減少。如果我們排除有道，我們的銷售和營銷費用占淨收入的百分比為 11%，而去年為 10%，主要是由於第一季度某些遊戲促銷的支出增加。

Our R&D expenses were RMB 3.4 billion or 14% as a percentage of net revenues. We remain committed to investing in content creation and product development, which is core to our revenue growth.

我們的研發費用為人民幣 34 億元，占淨收入的 14%。我們仍然致力於投資內容創作和產品開發，這是我們收入增長的核心。

Other income was RMB 28 million for the first quarter. The quarter-over-quarter and year-over-year decreases resulted from the fact that we had certain publicly traded securities in our current investments, and the prices of such securities declined meaningfully in the first quarter. We are required under U.S. GAAP to reflect for these fair value changes.

第一季度其他收入為人民幣2800萬元。環比和同比下降是由於我們當前的投資中有某些公開交易的證券，而這些證券的價格在第一季度顯著下降。根據美國公認會計原則，我們需要反映這些公允價值變化。

The effective tax rate was 22% for the first quarter. As a reminder, the effective tax rate is presented on an accrual basis, and the tax rate differ from each of our entities depending on the applicable policies and our operational results.

第一季度的有效稅率為 22%。提醒一下，有效稅率是按權責發生製提出的，根據適用的政策和我們的經營成果，我們每個實體的稅率都不同。

Our non-GAAP net income attributable to our shareholders for the first quarter of 2022 totaled RMB 5.1 billion or USD 807 million. Non-GAAP basic earnings per ADS was USD 1.23 or $0.25 per share.

我們在 2022 年第一季度的非公認會計原則歸屬於股東的淨利潤總計 51 億元人民幣或 8.07 億美元。非公認會計原則每 ADS 的基本收益為 1.23 美元或每股 0.25 美元。

Our cash position remains strong. As of the quarter end, our total cash, cash equivalents, current and noncurrent time deposits and short-term investment balance totaled RMB 107 billion compared with RMB 103 billion as of the year-end of last year. In accordance with our latest revised dividend policy, our Board of Directors has approved a dividend of USD 0.0644 per share or USD 0.322 per ADS.

我們的現金狀況依然強勁。截至本季度末，本行現金、現金等價物、流動及非流動定期存款及短期投資餘額合計1070億元，而上年末為1030億元。根據我們最新修訂的股息政策，我們的董事會已批准每股 0.0644 美元或每 ADS 0.322 美元的股息。

Lastly, under our share repurchase program, approximately 20.1 million ADS have been repurchased as of the first quarter end for a total cost of approximately USD 1.9 billion.

最後，根據我們的股票回購計劃，截至第一季度末已回購約 2010 萬股美國存託憑證，總成本約為 19 億美元。

Thank you for your attention. We would like now to open the call to your questions. Operator, please go ahead to the Q&A.

感謝您的關注。我們現在想打開您的問題的電話。接線員，請繼續進行問答。

(Operator Instructions) We will take our first question from the line of Alicia Yap from Citigroup.

（操作員說明）我們將從花旗集團的 Alicia Yap 提出第一個問題。

Yes. Thank you. Can you hear me? Okay. (foreign language)

是的。謝謝你。你能聽到我嗎？好的。 （外語）

My question is on your overseas studio. So given your recent establishment of the overseas studio in the U.S. and Japan, could you share some color with us regarding your hiring plans, your games development plans and also how you are viewing the overseas talent and future games growth and growth outlook?

我的問題是關於你的海外工作室。那麼鑑於您最近在美國和日本設立了海外工作室，您能否與我們分享一些關於您的招聘計劃、您的遊戲開發計劃以及您如何看待海外人才以及未來游戲增長和增長前景的看法？

(foreign language)

（外語）

[Interpreted] Okay. Thank you. So the overseas market and the overseas product development is of utter importance to us. So right now, about 80% of our [games] (corrected by company after the call) is in China and something between 10% to 20% is in overseas market. And going forward, we think that we'll probably see a 40% to 60% split, [having 40% in overseas markets] (corrected by company after the call).

[解釋] 好的。謝謝你。所以海外市場和海外產品開發對我們來說至關重要。所以現在，我們大約 80% 的 [遊戲]（在電話會議後由公司更正）在中國，10% 到 20% 之間在海外市場。展望未來，我們認為我們可能會看到 40% 到 60% 的拆分，[在海外市場有 40%]（在電話會議後由公司更正）。

We are working very diligently and actively with overseas development teams to codevelop some games content. Internally, we have a plan, we have a clear goal of how we want to achieve the revenue split between overseas market and the China market. And then hopefully, both the China market and overseas markets will account for a meaningful portion of our revenue. Thank you.

我們正在非常勤奮和積極地與海外開發團隊合作，共同開發一些遊戲內容。在內部，我們有一個計劃，我們有一個明確的目標，即我們希望如何實現海外市場和中國市場之間的收入分配。然後希望，中國市場和海外市場都將占我們收入的重要部分。謝謝你。

Will take our next question from the line of Yang Bai from CICC.

下一個問題來自中金公司楊白的台詞。

(foreign language)

（外語）

Are you on speaker phone? Because your line is breaking.

你是免提電話嗎？因為你的線斷了。

(foreign language) So his first question is about the impact of overseas games market, how that would affect our profitability for games business. And his second question was in terms of -- in addition to Japanese market, where other regions we're thinking of publishing ourselves?

（外語）所以他的第一個問題是關於海外遊戲市場的影響，這將如何影響我們遊戲業務的盈利能力。他的第二個問題是——除了日本市場，我們還考慮在其他地區發布自己的內容嗎？

Okay. So for convenience, I will answer these questions directly in English. When we think of our overseas games increased contribution, obviously, we are in a ramp-up phase. But as we grow more diversified titles across different geographies, like I mentioned in previous quarters, the margin profile shouldn't be very different between domestic games and overseas games in a steady state. But rather, it is more correlated to the gross billings.

好的。所以為方便起見，我將直接用英語回答這些問題。當我們想到我們的海外遊戲貢獻增加時，顯然，我們正處於加速階段。但隨著我們在不同地區開發更多多樣化的遊戲，就像我在前幾個季度提到的那樣，國內游戲和海外遊戲在穩定狀態下的利潤率情況應該不會有太大差異。但相反，它與總賬單更相關。

So we are very confident in the next 3 to 5 years' time as we continue to expand the scale and presence in the overseas market when we have multiple hit titles that universally are appealing to the users, those games are going to demonstrate very, very strong and similar margin profiles as what we have been experiencing with some of our very long lasting legacy titles here in China.

所以我們非常有信心在未來 3 到 5 年的時間裡，隨著我們繼續擴大在海外市場的規模和影響力，當我們擁有多款普遍吸引用戶的熱門遊戲時，這些遊戲將展示非常非常與我們在中國的一些經久不衰的傳統遊戲所經歷的相似的利潤率狀況。

Now, your second question regarding our publishing capability. As you may have noticed that NetEase remains very determined in major markets such as Japan. And for some titles, even in the West market, we strive to learn and control our own publishing capability. That is something we have to gradually build up and learn as we become a truly global game company. You may have noticed that we've successfully self-published games like Knives Out, Identity V in Japan. We are going to publish Harry Potter: Magic Awakened in Japan. We are globally publishing Lord of the Rings.

現在，關於我們的發布能力的第二個問題。您可能已經註意到，網易在日本等主要市場仍然非常堅定。而對於一些作品，即使是在西方市場，我們也在努力學習和控制自己的出版能力。隨著我們成為一家真正的全球遊戲公司，這是我們必須逐步建立和學習的東西。您可能已經註意到，我們已經成功地在日本自行發布了諸如 Knives Out、Identity V 等遊戲。我們將在日本出版《哈利波特：魔法覺醒》。我們正在全球發行《指環王》。

I think, going forward, with more content partners, with more IP partners and with more self-developed or codeveloped titles, our global publishing capability, particularly in major markets will be further strengthened.

我認為，未來，隨著更多內容合作夥伴、更多知識產權合作夥伴以及更多自主開發或共同開發的標題，我們的全球出版能力，尤其是在主要市場的出版能力將得到進一步加強。

Operator, next question, please.

接線員，請下一個問題。

Okay. We will take our next question from the line of Jialong Shi from Nomura.

好的。我們的下一個問題來自野村的石家龍一行。

(foreign language) Your game deferred revenue rose by 1% sequentially in 1Q even though you did not launch any new titles in the first quarter. Could you give us some color what were the factors that have contributed to this recovery in your deferred game revenue? I just wonder if this recovery has anything to do with the lockdown?

（外文）儘管您在第一季度沒有推出任何新遊戲，但您的遊戲遞延收入在第一季度環比增長了 1%。您能否告訴我們哪些因素導致您的遞延遊戲收入復甦？我只是想知道這種恢復是否與鎖定有關？

Thank you, Jialong. I'll answer this financial question directly in English. So by the way, we rephrased deferred revenue into contract liabilities just to be more precise and accurate under the accounting literature. So yes, as you may have noticed, our contract liabilities increased slightly for games, if you exclude Youdao from that. It's largely attributable to our strong Q1 performance of PC games. As you may know, Chinese New Year period is typically a seasonality peak for PC games. And Fantasy Westward Journey, by the way, after almost 2 decades of operation, have recorded a new record-high quarterly gross billings and quarterly revenue in the first quarter. World of Warcraft also performed fairly strong in the first quarter, contributing to our strong game contract liabilities that's been recorded in the first quarter. That's the main reason.

謝謝你，嘉隆。我將直接用英語回答這個財務問題。因此，順便說一下，我們將遞延收入改寫為合同負債，以便在會計文獻中更加準確和準確。所以是的，你可能已經註意到，如果你把有道排除在外，我們的遊戲合同負債略有增加。這主要歸功於我們第一季度 PC 遊戲的強勁表現。如您所知，春節期間通常是 PC 遊戲的季節性高峰。順便說一句，《夢幻西遊》經過近20年的運營，在第一季度的季度總收入和季度收入都創下了歷史新高。魔獸世界在第一季度的表現也相當強勁，為我們在第一季度記錄的強勁遊戲合同負債做出了貢獻。這是主要原因。

We will take our next question from the line from Felix Liu from UBS.

我們將從瑞銀的 Felix Liu 提出下一個問題。

(foreign language) Let me translate myself. My first question is on Diablo Immortal. First, congratulations on the launch. Could you share any expectations on revenue or user metrics for this game? And which overseas markets will NetEase be responsible for distribution? And any thoughts or color on the long-term collaboration with Microsoft and Activision Blizzard post the game launch?

（外語）讓我自己翻譯。我的第一個問題是關於暗黑破壞神不朽的。首先，祝賀發布。您能否分享對這款遊戲的收入或用戶指標的任何期望？網易將負責哪些海外市場的分銷？對於遊戲發布後與微軟和動視暴雪的長期合作有何想法或看法？

My second question is on Yanxuan, more specifically about the COVID-19 impact to the Yanxuan business in the second quarter and potential turning point?

我的第二個問題是關於燕軒的，更具體地說是關於第二季度 COVID-19 對燕軒業務的影響以及潛在的轉折點？

Okay. Thank you, Felix. I'll answer your questions directly in English. So first of all, Diablo Immortal, while under the partnership agreement, we are a co-developer. So we got a codeveloper's share of pie from its global revenue. In terms of publishing, NetEase is responsible for the games publishing in Mainland China, whereby Blizzard is responsible for its publishing in rest of the world.

好的。謝謝你，菲利克斯。我會直接用英語回答你的問題。所以首先，暗黑破壞神不朽，而根據合作協議，我們是共同開發者。因此，我們從其全球收入中獲得了共同開發者的份額。在發行方面，網易負責中國大陸的遊戲發行，暴雪負責其在世界其他地區的發行。

You may have noticed that we also have very close business partnership with Microsoft because we've been the exclusive partner for Minecraft for multiple years. With the announced acquisition of Activision Blizzard by Microsoft, we are very, very looking forward to a future strengthened partnership between NetEase and the broad Microsoft franchise, because we are a premium content provider. They obviously have very, very excellent first-party studios as well as Xbox distribution platform. So there are multiple areas that we can explore potential partnership down the road.

您可能已經註意到，我們還與 Microsoft 建立了非常密切的業務合作夥伴關係，因為我們多年來一直是 Minecraft 的獨家合作夥伴。隨著微軟宣布收購動視暴雪，我們非常非常期待網易與廣泛的微軟特許經營權之間未來加強合作，因為我們是一家優質的內容提供商。他們顯然擁有非常非常優秀的第一方工作室以及 Xbox 發行平台。因此，我們可以在多個領域探索潛在的合作夥伴關係。

To your second question on Yanxuan, we will have Yanxuan's CEO, Singo, to answer your question.

關於焱軒的第二個問題，我們將請焱軒 CEO 新高來回答您的問題。

(foreign language)

（外語）

[Interpreted] So it's in certain regions. And we do think that our fulfillment and the logistics system has been impacted somewhat by the pandemic. And since the end of March, the fulfillment time has been a lot longer than before. But the good news is that since May, we've seen a much more meaningful improvement and progress. And we think that progress is still ongoing. Thank you.

[解釋] 所以它在某些地區。我們確實認為我們的履行和物流系統在一定程度上受到了大流行的影響。而且自3月底以來，履行時間比以前長了很多。但好消息是，自 5 月以來，我們看到了更有意義的改進和進步。我們認為進展仍在繼續。謝謝你。

We will take our next question from the line of Lincoln Kong from Goldman Sachs.

我們將從高盛的 Lincoln Kong 中提出下一個問題。

(foreign language) The question is about the overseas game market and our monetization strategy for international games. As we noted, strong engagement of DBD Mobile in Japan, but relatively small grossing. So we think that those international games monetization matter is evenly distributed within their product life cycle. If so, how should we think about those future high-profile international titles in the second half, especially Harry Potter in Japan? And related to that, how do we view the outlook for the Japanese mobile game market this year, especially year-to-date grossing seems to be a little weaker than expected?

（外語）問題是關於海外遊戲市場和我們國際遊戲的變現策略。正如我們所指出的，DBD Mobile 在日本的參與度很高，但收入相對較低。所以我們認為這些國際遊戲的貨幣化問題在其產品生命週期內是均勻分佈的。如果是這樣，我們應該如何看待下半年那些備受矚目的國際大作，尤其是日本的哈利波特？與此相關的是，我們如何看待今年日本手游市場的前景，尤其是年初至今的總收入似乎比預期的要弱一些？

(foreign language)

（外語）

[Interpreted] Yes, it's true that overseas markets are completely different from the China market. In China, majority of the games revenue comes from mobile games, whereas for overseas, we have console, we have PC and we have mobile. So for different type of games, there's very different monetization pattern. And for different countries, monetization is different as well. And all of that, it shouldn't be a big challenge for NetEase. We have decades of experience in gaming R&D. So we should quickly find a way to satisfy users and players in different countries, on different types of devices.

【解讀】是的，海外市場確實和中國市場完全不同。在中國，大部分遊戲收入來自手機遊戲，而在海外，我們有主機遊戲、PC 和手機遊戲。所以對於不同類型的遊戲，有非常不同的盈利模式。對於不同的國家，貨幣化也是不同的。而這一切，對網易來說應該不是什麼大挑戰。我們擁有數十年的遊戲研發經驗。因此，我們應該快速找到一種方法來滿足不同國家、不同類型設備上的用戶和玩家。

Okay. We will take our next question from the line of Natalie Wu from Haitong International.

好的。我們的下一個問題來自海通國際的 Natalie Wu。

(foreign language) Thanks management for taking my question and congratulations for a very strong quarter. My question is regarding the pandemic impact on our game business. Just wondering, can you comment on the impact of pandemic opening up in overseas markets on your games business? Because some of your peers noted that the weakness coming due to that fact. Just wondering if you also experienced that kind of the situation.

（外語）感謝管理層提出我的問題，並祝賀一個非常強勁的季度。我的問題是關於大流行對我們遊戲業務的影響。只是想知道，您能否談談大流行在海外市場開放對您的遊戲業務的影響？因為您的一些同行注意到由於這一事實而出現的弱點。只是想知道你是否也經歷過這種情況。

And in the meanwhile, in terms of the domestic market, did you see increasing time and value spend on your games during the domestic lockdowns?

與此同時，就國內市場而言，您是否看到在國內封鎖期間您的遊戲時間和價值支出增加了？

Natalie, it's Charles. In the interest of time, let me answer your question directly in English. So the COVID situation has been lasting since -- it's been more than 2 years. Frankly speaking, I think everyone is a victim of this COVID situation. Game industry or broadly speaking, entertainment industry is probably a little bit more fortunate that we are less severely impacted by the COVID than many of the other businesses.

娜塔莉，是查爾斯。由於時間關係，讓我直接用英語回答你的問題。因此，自那以後，COVID 的情況一直持續 - 已經超過 2 年了。坦率地說，我認為每個人都是這種 COVID 情況的受害者。遊戲行業或廣義上的娛樂行業可能比許多其他行業更幸運地受到 COVID 的影響。

Frankly speaking, we do not observe any weakness from our overseas market right now because we are fairly, fairly new. And in our early stage of executing our ambitious global strategy, as we continue to launch more games, we feel pretty confident about our growth, particularly in the second half of this year when many of our exciting highly anticipated games will be unveiled to the international game audience.

坦率地說，我們目前沒有觀察到我們海外市場的任何弱點，因為我們還相當、相當新。在我們執行雄心勃勃的全球戰略的早期階段，隨著我們繼續推出更多遊戲，我們對我們的增長充滿信心，尤其是在今年下半年，我們的許多令人興奮的備受期待的遊戲將在國際上亮相遊戲觀眾。

Now, speaking of the domestic market, for the past quarter, Chinese New Year period is, like I said, a strong seasonality for PC games, but we are not seeing really any meaningful so-called enhanced ARPU or timing spend on mobile. Mobile stayed relatively, I would say, stable. So you are not really seeing any kind of highs and lows of obvious seasonality or one-off implications caused by the lockdown. I think our game development philosophy is fairly consistent and straightforward.

現在，說到國內市場，在過去的一個季度，中國新年期間，就像我說的，PC 遊戲的季節性很強，但我們並沒有看到真正有意義的所謂增強 ARPU 或移動端的時間支出。移動保持相對穩定，我會說。因此，您並沒有真正看到任何類型的明顯季節性的高點和低點，或由鎖定引起的一次性影響。我認為我們的遊戲開發理念是相當一致和直接的。

There's a lot of these macro situations that's beyond anyone's control. What we could do is that try to observe the shifting user experience preferences and try to cater to their shifting preferences by diligently and regularly roll out content update through innovation, through fresh gameplays, et cetera. I think that is kind of an open secret we've been adopting and operating for the last 2 decades. From PC screens to mobile screens, through good economies and bad economies, I think that's something -- if anything that we have learned from the COVID or from our past 2 decades of experience is that remain user-focused and content focused, then we won't go too wrong off the track.

有很多這些宏觀情況超出了任何人的控制範圍。我們可以做的是嘗試觀察不斷變化的用戶體驗偏好，並嘗試通過勤奮、定期地通過創新、新鮮的遊戲玩法等方式推出內容更新來迎合他們不斷變化的偏好。我認為這是我們過去 2 年一直採用和運作的公開秘密。從 PC 屏幕到移動屏幕，從好經濟到壞經濟，我認為這就是——如果我們從 COVID 或過去 2 年的經驗中學到的任何東西仍然以用戶為中心和以內容為中心，那麼我們就贏了偏離軌道不要走錯路。

We will take our next question from the line of Thomas Chong from Jefferies.

我們將從 Jefferies 的 Thomas Chong 提出下一個問題。

(foreign language) May I ask a question about the regulatory environment for the online gaming sector after the resumption of the Banhao approval. Should we expect any new regulations or anything that may be released in the future? And on that front, how should we think about the outlook for the domestic gaming sector in coming years in terms of the growth momentum?

（外語）請問恢復版號審批後網絡遊戲行業的監管環境。我們是否應該期待任何新法規或將來可能發布的任何內容？在這方面，我們應該如何看待未來幾年國內游戲行業的增長勢頭？

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language)

（外語）

[Interpreted] So we're quite optimistic with the growth of the Chinese gaming market. It's a very popular form of entertainment among the younger generation. So as you've seen, you see in April, there's been a batch of new license approval. And I think that going forward, the policy will remain that it supports gaming content that could be beneficial and educational to the gamers and game players. Thank you.

[解讀]所以我們對中國遊戲市場的增長相當樂觀。這是一種在年輕一代中非常流行的娛樂方式。如您所見，您在四月份看到了一批新的許可證批准。而且我認為，在未來，該政策將繼續支持對遊戲玩家和遊戲玩家有益和具有教育意義的遊戲內容。謝謝你。

Thank you. Thank you very much. I think that, that will end our call. Operator?

謝謝你。非常感謝。我認為，這將結束我們的通話。操作員？

Okay, thank you.

好的謝謝你。

Thank you once again. Okay. Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly or TPG Investor Relations. Have a great day. Thank you.

再一次感謝你。好的。再次感謝您今天加入我們。如果您有任何其他問題，請隨時直接聯繫我們或 TPG 投資者關係部。祝你有美好的一天。謝謝你。

That concludes today's conference. Thank you, everyone, for your participation.

今天的會議到此結束。謝謝大家的參與。

[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。]