Sound Group Inc (SOGP) 2021 Q4 法說會逐字稿

Hello ladies and gentlemen. Thank you for standing by for LIZHI INC.'s Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's remarks, there will be a question-and-answer session. Today's conference call is being recorded.

女士們先生們大家好。感謝您出席荔枝股份第四季度及 2021 財年收益電話會議。此時，所有參與者都處於只聽模式。管理層發言後，將進行問答環節。今天的電話會議正在錄音。

I will now turn the call over to your host Effy Kang, Head of Capital Markets for the Company. Please go ahead.

我現在將把電話轉給東道主公司資本市場主管 Effy Kang。請繼續。

Thank you very much. Hello everyone and welcome to LIZHI INC.'s fourth quarter and fiscal year 2021 earnings conference call. We released our financial and operating results via newswire services earlier today and they are available online.

非常感謝。大家好，歡迎參加荔枝股份第四季度及2021財年財報電話會議。今天早些時候，我們通過新聞專線服務發布了我們的財務和運營業績，並且可以在線查看。

Participants on today's call will include our Founder and CEO, Mr. Marco Lai, our COO, Mr. Zelong Li and our Acting CFO, Ms. Chengfang Lu. Mr. Li and Ms. Lu will begin with prepared remarks and the call will conclude with a Q&A session.

今天電話會議的參與者包括我們的創始人兼首席執行官賴先生、首席運營官李澤龍先生和代理首席財務官陸成芳女士。李先生和盧女士將首先進行準備好的發言，最後以問答環節結束。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

In addition, an Earnings Highlights presentation and a webcast replay of this conference call will be available on the IR section of our website at ir.LIZHI.fm.

此外，本次電話會議的收益亮點演示和網絡廣播重播將在我們網站 ir.LIZHI.fm 的投資者關係部分提供。

Before we continue, please note that today's discussions will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements typically contain words such as "may", "will", "expect", "target", "estimate", "intend", "believe", "potential", "continue", or other similar expressions.

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做出的前瞻性陳述。這些陳述通常包含“可能”、“將”、“期望”等詞語、“目標”、“估計”、“打算”、“相信”、“潛力”、“繼續”或其他類似的表達方式。

Forward-looking statements involve inherent risks and uncertainties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, many of which factors are beyond our control.

前瞻性陳述涉及固有風險和不確定性。這些陳述的準確性可能會受到許多業務風險和不確定性的影響，這些風險和不確定性可能導致實際結果與預計或預期的結果存在重大差異，其中許多因素超出了我們的控制範圍。

The Company, its affiliates, advisors, representatives, and underwriters do not undertake any obligation to update this forward-looking information, except as required under the applicable law.

除適用法律要求外，公司、其附屬公司、顧問、代表和承銷商不承擔更新此前瞻性信息的任何義務。

Please also note that LIZHI's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures.

另請注意，荔枝的盈利新聞稿和本次電話會議包括對未經審計的 GAAP 財務指標以及未經審計的非 GAAP 財務指標的討論。

Please refer to LIZHI's earnings press release for a reconciliation of unaudited non-GAAP measures to unaudited GAAP measures. I will now turn the call over to our COO, Mr. Zelong Li. Please go ahead.

請參閱荔枝的盈利新聞稿，了解未經審計的非公認會計原則措施與未經審計的公認會計原則措施的調節表。現在我將把電話轉給我們的首席運營官李澤龍先生。請繼續。

(Interpreted) Hello, everyone and thank you for joining our fourth quarter and full year 2021 earnings conference call. First of all, on behalf of the LIZHI management team, I would like to express my deep gratitude to our shareholders and investors who have supported us.

（翻譯）大家好，感謝您參加我們的 2021 年第四季度和全年收益電話會議。首先，我謹代表荔枝管理團隊向支持我們的股東和投資者表示深深的感謝。

Throughout 2021, we made continuous progress and a successful implementation of our strategic plan, achieving rapid growth. While continuously expanding our global footprint, we elevated our efforts to optimize our diversified product portfolio, strengthen the development of our core technologies, pursue efficiency and maximize value with more refined operational strategies. As a result, we continued to achieve key goals on our journey toward building a sustainable audio ecosystem.

2021年，我們不斷進取，戰略規劃順利實施，實現了快速增長。在不斷拓展全球佈局的同時，我們不斷優化多元化產品組合，加強核心技術研發，以更加精細化的運營策略追求效率和價值最大化。因此，我們繼續實現構建可持續音頻生態系統的關鍵目標。

In the fourth quarter of 2021, LIZHI maintained its steady growth. We continuously heightened our efforts to enrich the audio-centric ecosystem, strengthen user connections and engagement and advance commercialization initiatives, all of which lays a solid foundation for our sustainable growth.

2021年第四季度，荔枝保持穩定增長。我們不斷加大力度豐富以音頻為中心的生態系統，加強用戶聯繫和參與，推進商業化舉措，所有這些都為我們的可持續增長奠定了堅實的基礎。

Thanks to the effective execution of our operational strategy, average monthly paying users in the fourth quarter increased by 18% year-over-year to 497.3 thousand, and the fourth quarter revenue hit a new record high of RMB 560 million, representing a year-over-year increase of 33%.

得益於運營策略的有效執行，第四季度平均月付費用戶同比增長18%至49.73萬，第四季度收入再創歷史新高，達人民幣5.6億元，較去年同期增長18%。同比增長33% 。

In addition to strong revenue growth, we are also encouraged by the continued expansion of our gross margin, which grew to 32% in the quarter, up 400 basis points year-over-year. In addition, we further improved our profitability. Notably, we turned profitable for the first time on a GAAP basis in the fourth quarter, reporting a net income of RMB 8.92 million in addition to a non-GAAP net income of RMB 18.25 million, increasing 2.37 times year-over-year.

除了強勁的收入增長外，毛利率的持續擴張也令我們感到鼓舞，本季度毛利率增長至 32%，同比增長 400 個基點。此外，我們的盈利能力也進一步提高。值得注意的是，我們在第四季度首次實現按美國通用會計準則 (GAAP) 計算的盈利，淨利潤為人民幣 892 萬元，非美國通用會計準則淨利潤為人民幣 1,825 萬元，同比增長 2.37 倍。

In 2021, our successful commercialization strategy execution fueled full year revenue growth of 41% to RMB 2.1 billion. The full year gross margin grew to 29%, an increase of 400 basis points compared with 2020.

2021年，我們成功的商業化戰略執行推動全年收入增長41%至21億元人民幣。全年毛利率增長至29%，較2020年增長400個基點。

We are also delighted to see that our domestic business achieved operational profitability in fiscal 2021, reaffirming our competitive advantage in the online audio space while establishing a solid foundation for future growth.

我們也很高興看到我們的國內業務在 2021 財年實現了運營盈利，重申了我們在在線音頻領域的競爭優勢，同時為未來的增長奠定了堅實的基礎。

In terms of audio entertainment, in the second half of 2021, we adjusted our operational and marketing strategy to harness our resources and efforts to target core content categories with greater monetization potential. Through our fine-tuned operation management and marketing strategies, we continuously expanded our most active user groups while improving user experience and increasing user engagement.

在音頻娛樂方面，2021年下半年，我們調整了運營和營銷策略，利用我們的資源和努力瞄準具有更大變現潛力的核心內容類別。通過精細化的運營管理和營銷策略，我們不斷擴大最活躍的用戶群體，同時改善用戶體驗並提高用戶參與度。

In the fourth quarter of 2021, we organized and hosted a series of events and activities accentuated by "LIZHI Annual Voice Gala", unleashing the creativity and enthusiasm of our content creators, attracting more medium to long-tail creators to engage in creating and interacting on the platform, which in turn increases user engagement and boosts community connectivity.

2021年第四季度，我們組織舉辦了以“荔枝年度聲音盛典”為重點的一系列活動，釋放了內容創作者的創造力和熱情，吸引更多中長尾創作者參與創作和互動。在該平台上，這反過來又提高了用戶參與度並增強了社區連通性。

We were pleased to see that the average MAU of our audio entertainment business continue to expand to 9.4 million in the fourth quarter, with both the paying user base and the revenue maintaining a robust growth momentum, further ramping up our commercialization capabilities. In the future, we will continue to expand the commercialization potential of our audio entertainment business, remain steadfast in our efforts to enhance our commercialization efficiency and ultimately deliver overall growth over the long term.

我們很高興地看到第四季度音頻娛樂業務的平均月活躍用戶繼續擴大至940萬，付費用戶基礎和收入均保持強勁增長勢頭，進一步提升了我們的商業化能力。未來，我們將繼續擴大音頻娛樂業務的商業化潛力，堅定不移地提高商業化效率，最終實現長期的整體增長。

In the fourth quarter, we continued to optimize product features and functions of our global social product TIYA, include adding access to the YouTube SDK. We remained focused on boosting user engagement through product innovation, further improving user stickiness and active interaction rate.

第四季度，我們繼續優化全球社交產品TIYA的產品特性和功能，包括添加對YouTube SDK的訪問。我們始終專注於通過產品創新提升用戶粘性，進一步提高用戶粘性和活躍互動率。

In December, the average time spent daily in real-time voice room per user increased by 68% [year-on-year] (corrected by the company after the call), and the number of pairs of friends' connections continued to grow, and in December 2021, exhibiting 14-fold increase compared with December 2020.

12月，每位用戶每日平均在實時語音室的時長【同比】增長68%（經公司通話後修正），好友連接對數持續增長， 2021年12月，較2020年12月增長14倍。

In addition, by the end of 2021, the cumulative downloads of TIYA reached closed to 20 million. Recently, we rolled out a brand-new version of TIYA. In addition to optimizing user interface design, we further improved the product versatility and usability for the upgraded version.

此外，截至2021年底，TIYA累計下載量接近2000萬次。近日，我們推出了全新版本的TIYA。除了優化用戶界面設計外，升級版本還進一步提升了產品的通用性和易用性。

Notably, we launched an innovative feature referred to "real-time interactive group space". This new feature is designed to help users form online connections more easily and efficiently, as well as build their online community more engaging. More specifically, only "one-click" is needed for users to switch to the multi-user real-time interactive space via the novel "group space", which enables faster and more efficient real-time voice communication. Through voice, text, image, screen sharing, YouTube SDK and other multimedia functions, users can have a richer set of real-time group interactions.

值得注意的是，我們推出了一項名為“實時互動群組空間”的創新功能。這一新功能旨在幫助用戶更輕鬆、更高效地建立在線聯繫，並建立更具吸引力的在線社區。更具體地說，用戶只需“一鍵”即可通過新穎的“群組空間”切換到多用戶實時交互空間，從而實現更快、更高效的實時語音通信。通過語音、文本、圖像、屏幕共享、YouTube SDK等多媒體功能，用戶可以進行更豐富的實時群組交互。

In addition, this new version of TIYA is able to support both private and public group interaction spaces, enabling users to connect with their acquaintances and friends through private group spaces.

此外，新版本的TIYA還能夠支持私人和公共群組互動空間，使用戶能夠通過私人群組空間與熟人、朋友聯繫。

In the meantime, public group spaces on TIYA can be recommended and discovered based on user preferences, which may help users enrich their online social network. Next, we are also planning to entice more offline groups and KOLs to join TIYA and create vibrant, diverse interest-based communities.

同時，TIYA上的公共群組空間可以根據用戶的喜好進行推薦和發現，這可以幫助用戶豐富他們的在線社交網絡。接下來，我們還計劃吸引更多線下團體和KOL加入TIYA，打造充滿活力、多元化的興趣社區。

This new TIYA edition marks another milestone on our product innovation roadmap. In 2022, we will adhere to a balanced growth strategy and driving robust organic growth while maintaining cost control.

這個新的 TIYA 版本標誌著我們產品創新路線圖上的另一個里程碑。 2022年，我們將堅持平衡增長戰略，在保持成本控制的同時推動強勁的有機增長。

Another highlight of our international expansion is that TIYA recently officially established its global headquarters in Singapore. The headquarters will serve as the global hub for innovation for TIYA as well as the LIZHI Group to help nurture teams of talent and fully support the expansion of LIZHI's international business.

我們國際化擴張的另一個亮點是TIYA最近在新加坡正式設立了全球總部。該總部將作為TIYA和荔枝集團的全球創新中心，幫助培養人才團隊，全力支持荔枝國際業務的拓展。

Looking back on 2021, while focusing on product innovation, we also actively advanced the development of our in-house suite of technologies. We are convinced that core technologies help us provide users with richer audio entertainment offerings and more interactive social experiences, building a deep moat for our business.

回顧2021年，我們在註重產品創新的同時，也積極推進自主技術研發。我們堅信，核心技術幫助我們為用戶提供更豐富的音頻娛樂產品和更具互動性的社交體驗，為我們的業務築起深厚的護城河。

We are very pleased to see that our in-house developed RTC real-time audio and video streaming technology solution DOREME and instant voice messaging platform VoderX are continually empowering our product enhancement capabilities. By providing tailored technology solutions, DOREME and VoderX collectively allow us to persistently innovate and enrich product features and functions to align with users' diverse needs, ultimately creating unparalleled value for our users.

我們很高興看到我們自主研發的RTC實時音視頻流技術解決方案DOREME和即時語音通訊平台VoderX不斷賦能我們的產品增強能力。通過提供量身定制的技術解決方案，DOREME 和 VoderX 共同使我們能夠不斷創新和豐富產品特性和功能，以滿足用戶的多樣化需求，最終為用戶創造無與倫比的價值。

In addition, our in-house suite of technologies also bolsters our multi-device product roadmap, including enhancing compatibility with a variety of in-car operating systems and [IOV] (added by the company after the call) (Internet of Vehicles) platforms, supporting various applications of LIZHI products under diverse usage scenarios and improving in-car user experience through voice processing and high-definition audio transmission technologies.

此外，我們的內部技術套件還支持我們的多設備產品路線圖，包括增強與各種車載操作系統和[IOV]（公司在通話後添加）（車聯網）平台的兼容性，支持荔枝產品在不同使用場景下的各種應用，通過語音處理和高清音頻傳輸技術提升車內用戶體驗。

In the next phase, we will continue to invest in leading-edge technologies, encompass in house R&D to strengthen our core technology capabilities and create an industry-leading RTE (real-time engagement) ecosystem to power the development of our product portfolio.

下一階段，我們將繼續投資前沿技術，加強內部研發，強化核心技術能力，打造行業領先的RTE（實時參與）生態系統，為產品組合的發展提供動力。

In summary, in 2021, the robust growth across our diversified businesses, advancements in our in-house technologies, and continuous optimization of our organizational system have built a solid base for our long-term development.

綜上所述，2021年，我們多元化業務的強勁增長、自主技術的進步、組織體系的持續優化，為我們的長遠發展奠定了堅實的基礎。

Moving into 2022, we remain unwavering in our globalization strategy, exploring more regions and territories with diversified product portfolio, leveraging well-established operational experience and localized innovation to tap into more commercialization potential, building an increasingly competitive audio ecosystem, and ultimately creating more value for our shareholders as well as the wider society.

進入2022年，我們堅定不移的全球化戰略，以多元化的產品組合開拓更多的地區和領域，利用成熟的運營經驗和本地化創新挖掘更多的商業化潛力，打造更具競爭力的音頻生態系統，最終創造更多價值為了我們的股東以及更廣泛的社會。

Thank you all.

謝謝你們。

With that, I will now turn the call over to our Acting CFO, Ms. Chengfang Lu, who will discuss our financial results in more detail.

現在，我將把電話轉給我們的代理首席財務官陸成芳女士，她將更詳細地討論我們的財務業績。

Okay. Thank you, Zelong.

好的。謝謝你，澤隆。

Hello, everyone. Our strong financial performance in the fourth quarter and in fiscal 2021 exemplifies the Company's successful execution of our strategy in meeting growing user demand for audio-based entertainment and social networking.

大家好。我們第四季度和 2021 財年強勁的財務業績證明了公司成功執行了滿足用戶對音頻娛樂和社交網絡日益增長的需求的戰略。

Benefiting from the continuous fine-tuning of our operations and optimization of the cost structure, our gross margin in the fourth quarter hit a record high at 32%, up 400 basis points year-over-year, also adding up to a 400 basis points increase in the full year gross margin.

受益於運營的持續微調和成本結構的優化，第四季度毛利率創歷史新高，達32%，同比增長400個基點，加起來也達到400個基點全年毛利率上升。

In the fourth quarter, we achieved a net income of RMB8.9 million and the non-GAAP net income increased by 237% to RMB18.3 million. We're encouraged by the robust growth in our audio entertainment business and our efficient and effective commercialization execution strategy.

第四季度，我們實現淨利潤890萬元人民幣，非美國通用會計準則淨利潤增長237%至1830萬元人民幣。我們的音頻娛樂業務的強勁增長以及高效且有效的商業化執行策略令我們深受鼓舞。

As we further unroll our global expansion plans in 2022, we will maintain our intense focus on providing innovative and valuable products and services to our users while building a more competitive audio ecosystem.

隨著 2022 年我們進一步展開全球擴張計劃，我們將繼續專注於為用戶提供創新且有價值的產品和服務，同時建立更具競爭力的音頻生態系統。

Now, I'm providing a brief overview of our financial results for the fourth quarter of 2021. In the fourth quarter, our total net revenues were RMB560.3 million, representing an increase of 33% year-over-year, primarily driven by the increases in the number of average monthly paying users and the average amount of user spending on our audio entertainment products.

現在，我簡要概述一下我們2021年第四季度的財務業績。第四季度，我們的總淨收入為人民幣5.603億元，同比增長33%，主要是由於平均每月付費用戶數量和用戶在音頻娛樂產品上的平均支出金額增加。

Cost of revenues was RMB378.4 million in the fourth quarter of 2021, representing an increase of 26% year-over-year, mainly attributable to an increase in the revenue sharing fees to our content creators, salary and welfare benefits expenses and bandwidth costs, as we expanded our business.

2021年第四季度收入成本為人民幣3.784億元，同比增長26%，主要是由於內容創作者的收入分成費、工資及福利費用以及帶寬成本增加所致，隨著我們業務的擴展。

Gross profit was RMB181.9 million in the fourth quarter of 2021, representing an increase of 53% year-over-year. Non-GAAP gross profit was RMB184.4 million in the fourth quarter of 2021, representing an increase of 50% year-over-year.

2021年第四季度毛利潤為人民幣1.819億元，同比增長53%。 2021年第四季度非美國通用會計準則毛利潤為人民幣1.844億元，同比增長50%。

Gross margin for the fourth quarter of 2021 increased to 32% from 28% in the fourth quarter of 2020. Non-GAAP gross margin for the fourth quarter of 2021 grew to 33% from 29% in the fourth quarter of 2020.

2021年第四季度的毛利率從2020年第四季度的28%增至32%。2021年第四季度的非公認會計準則毛利率從2020年第四季度的29%增至33%。

Operating expenses increased by 41% year-over-year to RMB176.6 million in the fourth quarter of 2021. Research and development expenses were RMB73.5 million in the fourth quarter of 2021, representing a year-over-year increase of 30%. This increase was primarily due to the increasing salary and welfare benefits expenses related to the increase in the number of our research and development staff and average salary.

2021年第四季度運營費用同比增長41%至人民幣1.766億元。2021年第四季度研發費用為人民幣7,350萬元，同比增長30% 。這一增長主要是由於與我們的研發人員數量和平均工資增加相關的工資和福利費用增加。

Selling and marketing expenses were RMB70.9 million in the fourth quarter of 2021, representing an increase of 46% year-over-year. This increase was attributable to the increases in the marketing expenses to promote the Company's audio entertainment products, the promotional expenses for our international business, and the higher salary and welfare benefits expenses.

2021年第四季度銷售及營銷費用為人民幣7,090萬元，同比增長46%。這一增長是由於推廣公司音頻娛樂產品的營銷費用、國際業務的推廣費用以及工資和福利費用增加所致。

General and administrative expenses were RMB32.2 million in the fourth quarter of 2021, representing a year-over-year increase of 59%. The increase was mainly due to increased salary and welfare benefits expenses, rental expenses and other general and administrative expenses.

2021年第四季度管理費用為人民幣3,220萬元，同比增長59%。增加的主要原因是工資及福利費用、租金費用以及其他一般及行政費用增加。

Operating income was RMB5.4 million in the fourth quarter of 2021, compared to a loss of RMB6.4 million in the fourth quarter of 2020.

2021年第四季度營業收入為人民幣540萬元，而2020年第四季度為虧損人民幣640萬元。

Non-GAAP operating income was RMB14.7 million in the fourth quarter of 2021, compared to RMB4.9 million in the fourth quarter of 2020.

2021 年第四季度非公認會計原則營業收入為人民幣 1,470 萬元，而 2020 年第四季度為人民幣 490 萬元。

Net income was RMB8.9 million in the fourth quarter of 2021, compared to net loss of RMB5.8 million in the fourth quarter of 2020. Non-GAAP net income was RMB18.3 million, representing a year-over-year increase of 237%.

2021 年第四季度淨利潤為人民幣 890 萬元，而 2020 年第四季度淨虧損為人民幣 580 萬元。非 GAAP 淨利潤為人民幣 1,830 萬元，同比增長237%。

Basic and diluted net income per ADS were RMB0.17 in the fourth quarter of 2021, compared to basic and diluted net loss per ADS of RMB0.13 in the fourth quarter of 2020.

2021 年第四季度每股美國存託股基本和稀釋淨利潤為人民幣 0.17 元，而 2020 年第四季度每股美國存託股基本和稀釋淨虧損為人民幣 0.13 元。

Non-GAAP basic and diluted net income per ADS were RMB0.36 in the fourth quarter of 2021, compared to RMB0.12 in the fourth quarter of 2020.

2021 年第四季度非 GAAP 基本和稀釋每股美國存託股淨利潤為人民幣 0.36 元，而 2020 年第四季度為人民幣 0.12 元。

As of December 31, 2021, we had cash and cash equivalents and restricted cash of RMB537.4 million.

截至2021年12月31日，我們擁有現金及現金等價物以及限制性現金為人民幣5.374億元。

Okay. This concludes our prepared remarks today. [We will now open] (corrected by the company after the call) the call to questions.

好的。我們今天準備好的發言到此結束。 [我們現在將開啟]（由公司更正後的電話）提問電話。

Operator, please go ahead.

接線員，請繼續。

For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. For the sake of clarity and order, please ask one question at a time. Management will respond and then feel free to follow up with your next question.

為了今天電話會議所有參與者的利益，如果您想用中文向管理層提出問題，請立即用英語重複您的問題。為了清楚起見和順序，請一次提出一個問題。管理層將予以答复，然後隨時跟進您的下一個問題。

Your first question comes from the line of Vincent Yu from Needham and Company. Please ask your question.

你的第一個問題來自李約瑟公司的Vincent Yu。請提出你的問題。

Thank you management for taking my question. I have two questions.

感謝管理層回答我的問題。我有兩個問題。

The first question is on the profitability. I do see that in our Q4 we have become profitable in terms of GAAP net income. So what's our view for profitability in 2020, I am sorry, 2022 and our mid to long term prospects for the profitability?

第一個問題是關於盈利能力。我確實看到，按照公認會計準則淨利潤計算，我們第四季度已經實現盈利。那麼我們對2020年、對不起，2022年的盈利能力有何看法，以及我們對盈利能力的中長期前景如何？

My second question is, can management elaborate more on the paying rates improvements? Thank you.

我的第二個問題是，管理層能否詳細說明支付率的改進？謝謝。

Okay, thank you, Vincent from Needham. Firstly, I will translate the question. The first question from Needham. (Spoken in Mandarin)

好的，謝謝你，來自尼達姆的文森特。首先我來翻譯一下這個問題。第一個問題來自李約瑟。 （以普通話發言）

(interpreted) So the first question from Vincent from Needham is about the profitability and our long-term expectations for the profitability. We are delighted to see that for the first time we [became] (corrected by the company after the call) profitable on a GAAP basis and substantially increased our non-GAAP net [profit] (corrected by the company after the call) in the fourth quarter of 2021 which is mainly due to our effective execution of our strategies on the cost reduction and efficiency enhancement.

（解釋）因此，來自 Needham 的 Vincent 提出的第一個問題是關於盈利能力以及我們對盈利能力的長期預期。我們很高興地看到，我們第一次[變得]（由公司在電話會議後更正）按 GAAP 基準盈利，並大幅增加了我們的非 GAAP 淨利潤（由公司在電話會議後更正） 2021年第四季度，這主要得益於我們降本增效戰略的有效執行。

For the profit forecast for the full year of 2022, in terms of topline, we will continue to expand the user base, increase the number of paying users and user spending levels in the audio entertainment segment in order to unleash the commercialization potential of the audio entertainment business.

對於2022年全年盈利預測，營收方面，我們將繼續擴大音頻娛樂領域的用戶基礎，提高付費用戶數量和用戶消費水平，釋放音頻的商業化潛力娛樂事業。

Meanwhile, we also plan to explore more markets, develop new commercialization models and drive overall revenue growth. For different quarters of the year, there may be fluctuations caused by factors such as festivals and holidays, but we expect the overall revenue will maintain a solid growth momentum [throughout] (corrected by the company after the call) the year.

同時，我們還計劃開拓更多市場，開發新的商業化模式並推動整體收入增長。一年中的不同季度，可能會因節假日等因素造成波動，但我們預計全年整體收入將保持穩健的增長勢頭（公司在電話會議後修正）。

In terms of operating expenses, we will dynamically adjust resource allocation according to progress made during each phase. For the domestic business, we will further implement strategies to control costs and enhance efficiency in order to achieve profitability at the operating level.

在運營費用方面，我們會根據各階段的進展動態調整資源配置。國內業務將進一步實施控本增效策略，實現經營層面的盈利。

For the international business, we will adopt a strategy of balanced growth, while controlling the investment size, maximizing operational efficiency, establishing a network effect for our products and achieving organic growth in our user numbers.

國際業務將採取平衡增長的策略，控制投資規模，最大化運營效率，建立產品網絡效應，實現用戶數量的有機增長。

Overall, we are confident we will further narrow our losses in 2022 and build a solid foundation for us to achieve our mid to long-term profitability targets.

總體而言，我們有信心在2022年進一步縮小虧損，為實現中長期盈利目標奠定堅實的基礎。

For mid to long-term growth, we hope to further diversify our revenue, including developing new markets and incubating new products, to gradually increase the income from the international business to boost the overall revenue growth.

中長期增長方面，我們希望進一步實現收入多元化，包括開拓新市場、孵化新產品，逐步增加國際業務收入，帶動整體收入增長。

Meanwhile, we will continue to optimize the cost structure, improve operating efficiency, reduce the overall expense ratio, and promote business growth with the goal of achieving overall profitability in the mid to long term. This concludes with Marcos answers.

同時，我們將繼續優化成本結構，提高運營效率，降低綜合費用率，促進業務增長，以實現中長期整體盈利。最後以馬科斯的回答作為結束。

In the fourth quarter of 2021, we achieved an 18% year-over-year increase in average monthly pay users to [497,300] (corrected by the company after the call) while our quarterly revenue hit a new record high. This is mostly due to two reasons. First of all, we focused on the audio entertainment business and launched diverse promotional activities to further trigger the creativity and enthusiasm of our content creators in order to boost user participation, and effectively promote paying user conversion.

2021年第四季度，我們的平均月付費用戶同比增長18%至[497,300]（公司在電話會議後修正），同時我們的季度收入創下新高。這主要是由於兩個原因。首先，我們聚焦音頻娛樂業務，開展豐富多彩的推廣活動，進一步激發內容創作者的創造力和積極性，提高用戶參與度，有效促進付費用戶轉化。

On the other hand, on the marketing strategy front, we focused more on core content categories to acquire customer accurately. By strengthening ties between users and content creators and leveraging advantages of audio, we can consolidate user connection and engagement to promote the conversion of the paying users.

另一方面，在營銷策略方面，我們更加聚焦核心內容品類，精準獲客。通過加強用戶與內容創作者的聯繫，利用音頻的優勢，鞏固用戶的聯繫和參與度，促進付費用戶的轉化。

In 2022, in addition to continuing to explore the domestic market, we will also leveraging our experience to continue to expand our business into more countries and regions through fine-tuning operations, increase the overall paying users base, raise user spend levels, and drive the topline growth this year.

2022年，除了繼續開拓國內市場外，我們還將利用經驗，通過微調運營，繼續將業務拓展到更多國家和地區，增加整體付費用戶基礎，提高用戶消費水平，帶動今年的營收增長。

(Spoken in Mandarin). Thank you.

（以普通話發言）。謝謝。

(Spoken in Mandarin). Thank you, Marco.

（以普通話發言）。謝謝你，馬可。

Your next question comes from the line of Vicky Wei from Citi. Please ask your question.

您的下一個問題來自花旗集團的 Vicky Wei。請提出你的問題。

(Spoken in Mandarin). Good evening, management. Thanks for taking my questions and congrats on the profitable quarter. Will management share some color about the 2022 growth strategy, as well as audio entertainment sector outlook for 2022? Thank you.

（以普通話發言）。晚上好，管理層。感謝您回答我的問題，並祝賀本季度實現盈利。管理層是否會分享一些有關 2022 年增長戰略以及 2022 年音頻娛樂行業前景的信息？謝謝。

(interpreted) We are confident we can continue to scale our growth in the future. With the effective implementation of our globalization strategy, we are expecting the international business to generate incremental growth for our overall user base.

（解釋）我們有信心未來能夠繼續擴大增長。隨著全球化戰略的有效實施，我們預計國際業務將為我們的整體用戶群帶來增量增長。

Recently, we have focused on the continuous optimization and upgrading of our products, which we believe will effectively increase the user engagement and grow our user base.

最近，我們專注於產品的不斷優化和升級，我們相信這將有效提高用戶參與度並擴大我們的用戶基礎。

Moving forward, we will actively explore and expand into the new markets and build a more diversified product portfolio. We are looking to reproduce our successful experience and business models in the domestic audio entertainment sector into other markets and localize operations according to differences of these various markets, ultimately growing and experiencing new commercialization potential.

未來，我們將積極探索和拓展新市場，打造更加多元化的產品組合。我們希望將國內音響娛樂領域的成功經驗和商業模式複製到其他市場，並根據不同市場的差異進行本地化運營，最終成長和體驗新的商業化潛力。

And we have been preparing for this expansion. We are expecting our international business's user base to achieve strong growth in the mid to long term and contributes to future revenue growth.

我們一直在為這次擴張做準備。我們預計國際業務的用戶群將在中長期內實現強勁增長，並為未來的收入增長做出貢獻。

In terms of our domestic business, we mainly focus on the user base expansion in the audio entertainment sector and monetization of the core user groups. Our excellent performance in the fourth quarter also demonstrated the effectiveness of our operational strategies.

國內業務方面，我們主要關注音頻娛樂領域的用戶規模擴張以及核心用戶群體的變現。第四季度的優異表現也證明了我們經營策略的有效性。

We will continue to optimize our marketing strategy and target content categories with greater monetization potential, as well as execute on our precise user acquisition strategy to reach core user groups with strong spending power and a higher willingness to pay.

我們將繼續優化營銷策略，瞄準變現潛力更大的內容類別，並執行精準的用戶獲取策略，覆蓋消費能力強、支付意願高的核心用戶群體。

In addition, through optimizing product function and launching the diversified activities, we can successfully improve user engagement and paying user conversion, thereby driving [revenue] (corrected by the company after the call) growth.

此外，通過優化產品功能和開展多元化活動，我們可以成功提高用戶參與度和付費用戶轉化，從而推動[收入]（由公司在通話後修正）增長。

Regarding the audio entertainment sector, we think the sector has strong commercialization potential. In the second half of last year, we began to optimize our operational and marketing strategies, which effectively improved the conversion of paying userbase of audio entertainment, and in turn, drove revenue growth.

對於音頻娛樂領域，我們認為該領域具有強大的商業化潛力。去年下半年，我們開始優化運營和營銷策略，有效提高了音頻娛樂付費用戶的轉化，進而帶動了收入的增長。

At the same time, we also optimized our cost structure to further improve the gross margin, while gross profit was up 53% year-over-year. In addition, we turned profitable on a GAAP basis in the fourth quarter, while LIZHI's domestic business already achieving operational profitability in 2021.

同時，我們還優化成本結構，進一步提高毛利率，毛利潤同比增長53%。此外，我們在第四季度按照公認會計原則（GAAP）盈利，而荔枝的國內業務已於2021年實現運營盈利。

In 2022, we will continue to implement our optimized operational strategies in the audio entertainment sector, expand our most active user groups and launch diversified functions in order to promote the conversion of paying users, increase user spend levels and improve overall revenue and profitability.

2022年，我們將繼續在音頻娛樂領域實施優化運營策略，擴大最活躍的用戶群體，推出多元化的功能，以促進付費用戶轉化，提高用戶消費水平，提高整體收入和盈利能力。

Thank you.

謝謝。

Thank you.

謝謝。

As there are no further questions now, I'd like to turn the call back over to the company for closing remarks.

由於現在沒有其他問題了，我想將電話轉回公司進行結束語。

Thank you once again for joining us today. If you have further questions, please feel free to contact LIZHI's investor relations through the contact information provided on our website ir.LIZHI.fm or The Piacente Group Investor Relations. Thank you.

再次感謝您今天加入我們。如果您還有其他疑問，請隨時通過我們網站 ir.LIZHI.fm 或 The Piacente Group 投資者關係部提供的聯繫信息聯繫荔枝投資者關係部。謝謝。

This concludes the conference call. You may now disconnect your line. Thank you.

電話會議到此結束。您現在可以斷開線路。謝謝。