Sohu.com Ltd (SOHU) 2025 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and good evening. Thank you for joining Sohu's third-quarter 2025 earnings conference call. (Operator Instructions) Today's conference call is being recorded. If you have any objections, you may disconnect at this time.

女士們、先生們，感謝各位的耐心等待，晚上好。感謝您參加搜狐2025年第三季財報電話會議。（操作員指示）今天的電話會議正在錄音。如果您有任何異議，可以立即斷開連接。

I'd now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Please go ahead.

現在我謹將會議交給今天的電話會議主持人，搜狐投資者關係總監黃璞。請繼續。

Thanks, operator. Thank you for joining us to discuss Sohu's third-quarter 2025 results. On the call are Chairman and the Chief Executive Officer, Dr. Charles Zhang; CFO, Joanna Lv; and the Vice President of Finance, James Deng. Also with us are Changyou's CEO, Dewen Chen; and CFO, Yaobin Wang.

謝謝接線生。感謝您參加本次關於搜狐2025年第三季業績的討論會。出席電話會議的有董事長兼執行長張志強博士、財務長呂女士和財務副總裁鄧先生。與我們同行的還有暢遊的執行長陳德文和財務長王耀斌。

Before management begins their prepared remarks, I would like to remind you of the company's Safe Harbor statement in connection with today's conference call. Except for the historic information contained herein, the matters discussed on this call may contain forward-looking statements. These statements are based on current plans, estimates, and projections, and therefore, you should not place undue reliance on them.

在管理階層開始發表準備好的演講之前，我想提醒各位注意公司與今天電話會議相關的「安全港」聲明。除本文所載歷史資訊外，本次電話會議討論的事項可能包含前瞻性陳述。這些聲明是基於當前的計劃、估計和預測，因此，您不應過度依賴它們。

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission, including the most recent annual report on Form-20F.

前瞻性陳述涉及固有的風險和不確定性。我們提醒您，許多重要因素可能導致實際結果與任何前瞻性聲明中包含的結果有重大差異。有關潛在風險和不確定性的更多信息，請參閱公司向美國證券交易委員會提交的文件，包括最新的 20F 表格年度報告。

With that, I will now turn the call over to Dr. Charles Zhang. Charles, please proceed.

接下來，我將把電話交給張博士。查爾斯，請繼續。

Thanks, Huang Pu, and thank you, everyone, for joining our call. In the third quarter of 2025, our marketing services revenues were in line with our guidance, while both our online game revenues and the bottom line performance benefiting from our continuous efforts in the gaming business were well above our prior expectations.

謝謝黃普，也謝謝各位參加我們的電話會議。2025 年第三季度，我們的行銷服務收入符合預期，而線上遊戲收入以及得益於我們在遊戲業務方面持續努力而實現的淨利潤均遠超預期。

We recorded positive net income this quarter for the Sohu Media -- now for the Sohu Media platform, we continue to refine our products and integrate resources to better meet users' needs and enhance their experiences. Meanwhile, leveraging our product metrics and distinctive events, we remain committed to generating and distributing diversified premium content and continuously energizing our platform.

本季度，搜狐媒體實現了正淨利潤——現在，對於搜狐媒體平台，我們將繼續改進產品並整合資源，以更好地滿足用戶需求並提升用戶體驗。同時，我們將利用我們的產品指標和特色活動，繼續致力於產生和分發多元化的優質內容，並持續為我們的平台注入活力。

Our differentiated advantages and unique IP enabled us to further unlock monetization potential. For online games, both new and established titles delivered outstanding performance driven by our deep understanding of our needs and proven operational expertise.

我們差異化的優勢和獨特的知識產權使我們能夠進一步釋放獲利潛力。對於網路遊戲，無論是新遊戲還是舊遊戲，都取得了卓越的成績，這得益於我們對自身需求的深刻理解和成熟的營運經驗。

Before going through each business unit in more detail, let me first give you a quick overview of our financial performance. For the third quarter of 2025, total revenues of $180 million, up 19% year-over-year and 43% quarter over quarter. Marketing services revenues were $14 million, down 27% year-over-year and 13% quarter-over-quarter. Online game revenues, $162 million, up 27% year over year and 53% quarter-over-quarter.

在詳細介紹各個業務部門之前，讓我先快速概述一下我們的財務表現。2025 年第三季總營收為 1.8 億美元，年增 19%，季增 43%。行銷服務收入為 1,400 萬美元，年減 27%，季減 13%。線上遊戲收入達 1.62 億美元，年增 27%，季增 53%。

GAAP net income attributable to Sohu.com Limited, $9 million compared with a net loss of $16 million in the third quarter of '24, and a net loss of $20 million in the second quarter of this year. Non-GAAP net income attributable to Sohu.com Limited was $9 million compared to a net loss of $12 million in the third quarter of last year and a net loss of $20 million in the second quarter of this year.

歸屬於搜狐有限公司的GAAP淨利為900萬美元，而2024年第三季淨虧損1,600萬美元，今年第二季淨虧損2,000萬美元。歸屬於搜狐有限公司的非GAAP淨利為900萬美元，而去年第三季淨虧損1,200萬美元，今年第二季淨虧損2,000萬美元。

Now, I'll go through our key businesses in more detail. So for Sohu platform, we continue to leverage the cutting-edge technologies to optimize our products and promote deeper integration across our product metrics. This enabled us to further adapt to various (inaudible), improve operational efficiencies and enhance user experiences, at the same time relying on the synergies between various online and offline events. We continue to stimulate the generation dissemination of premium content and attract more users to our platform.

現在，我將更詳細地介紹我們的主要業務。因此，對於搜狐平台，我們將繼續利用尖端技術來優化我們的產品，並促進我們產品指標的更深層整合。這使我們能夠進一步適應各種（聽不清楚），提高營運效率，增強用戶體驗，同時依靠各種線上和線下活動之間的協同效應。我們將繼續促進優質內容的產生和傳播，吸引更多用戶加入我們的平台。

During the quarter, we hosted a variety of events and activities to further build a vigorous social networking platform, providing users with abundant opportunities for online and offline communications. The 2025 Autumn Convention of Sohu Video Influencers, (inaudible) effectively promoted deeper communication among broadcasters across different verticals and significantly increase their vitality and retention on our platform. The ongoing 2025 Sohu HipHop Dancing Festival, (inaudible); and also the (inaudible) Model Competition, (inaudible), both successfully ignited the passion of young people and further consolidated our influence in these areas.

本季度，我們舉辦了各種活動，進一步建立了一個充滿活力的社群網路平台，為用戶提供了豐富的線上線下交流機會。2025 年搜狐視訊網紅秋季大會（聽不清楚）有效地促進了不同垂直領域主播之間的深入交流，並顯著提高了他們在我們平台上的活力和留存率。正在進行的 2025 年搜狐嘻哈舞蹈節（聽不清楚）和（聽不清楚）模特兒大賽（聽不清楚）都成功點燃了年輕人的熱情，並進一步鞏固了我們在這些領域的影響力。

All these activities gain or spread recognition and popularity and continuously infused a large amount of content and traffic into our platform. As a result, we were able to further expand the influence of Sohu and fostered a prosperous platform ecosystem. In addition, we also held a special team activities such as the Halloween American TV series party, (inaudible) party.

所有這些活動都獲得了認可和人氣，並不斷為我們的平台注入大量內容和流量。因此，我們得以進一步擴大搜狐的影響力，並培育出一個繁榮的平台生態系統。此外，我們也舉辦了一些特別的團隊活動，例如萬聖節美國電視劇主題派對、（聽不清楚）派對。

It not only engaged users with innovative content but also became a highlight of our social video -- Sohu Video American TV series, (inaudible), which brought audiences with classic dramas such as the West World and also the Mandalorian. Meanwhile, we also launched multiple [GV] dramas, original drama and short dramas during the quarter to attract and retain users. The original drama, (inaudible) is well received by audiences and attract more users to our platform.

它不僅以創新內容吸引了用戶，而且還成為我們社交視頻的一大亮點——搜狐視頻美國電視劇（聽不清楚），為觀眾帶來了《西部世界》和《曼達洛人》等經典劇集。同時，為了吸引和留住用戶，我們在本季也推出了多部[GV]劇集、原創劇集和短劇。原版電視劇（聽不清楚）深受觀眾喜愛，吸引了更多用戶來到我們的平台。

Through our flagship IP, the [Physics Class] and (inaudible) class, we continue to strengthen our differentiated competitive advantages while at the same time, exploring greater monetization opportunities with Charles' Physics Class, we were able to reach a wider range of audiences through discussions on popular science topics and hot events and brought physics knowledge closer to the general public, not only helped us generate unique and premium content, but also consistently unlock money -- monetization potential. Together with the resources of Sohu's product metrics and our marketing capabilities, we actively adapted changes in the market trend and provide advertisers with customized marketing solutions through a series of innovative campaigns and events, which are highly recognized by our both audiences and advertisers.

透過我們的旗艦IP《物理課》和（聽不清楚）課程，我們不斷加強差異化的競爭優勢，同時，透過查爾斯的物理課探索更大的獲利機會，我們能夠透過對熱門科學話題和熱點事件的討論，接觸到更廣泛的受眾，並將物理知識帶給大眾，這不僅幫助我們創造了獨特的優質內容，而且還持續釋放了利潤——盈利潛力。結合搜狐的產品指標資源和我們的行銷能力，我們積極適應市場趨勢的變化，並透過一系列創新的活動和事件，為廣告商提供客製化的行銷解決方案，這些方案受到了受眾和廣告商的高度認可。

Next, turning to our (inaudible) business. In the third quarter of 2025, we launched a new PC game LBB, Return. Based on a beloved early version of TLBB PC, the game features reduced grinding and pay to win pressure, offering players a lighter gaming experience. It helped us attract back many [former] players and its revenue performance has so far exceeded our expectations.

接下來，我們來談談我們的（聽不清楚）業務。2025年第三季度，我們推出了全新的PC遊戲LBB，名為Return。遊戲基於備受喜愛的早期 TLBB PC 版本，減少了重複勞動和付費取勝的壓力，為玩家提供更輕鬆的遊戲體驗。它幫助我們吸引了許多（前）玩家回歸，而且到目前為止，其收入表現超出了我們的預期。

For TLBB PC, we also launched the game content for TLBB -- game content for TLBB Vintage that recreated the classic design of the game, which evolved in a way of nostalgia among players. Players' enthusiasm and the in-game spending were far beyond our expectations. With regular TLBB PC, we offered a new rare gear as rewards for our promotional events and redesigned the cross-server Clan Wall gameplay, which boosted willingness to pay among higher paying players.

對於 TLBB PC，我們也推出了 TLBB 的遊戲內容——TLBB Vintage 遊戲內容，它重現了遊戲的經典設計，以一種懷舊的方式在玩家中流行起來。玩家的熱情和遊戲內消費遠遠超出了我們的預期。在常規的 TLBB PC 版本中，我們為促銷活動提供了新的稀有裝備作為獎勵，並重新設計了跨服公會牆遊戲玩法，這提高了高付費玩家的付費意願。

For more games, we launched -- for mobile games, we launched an expansion pack for Legacy TLBB Mobile, which brought an enhancement to the skills of (inaudible) clan alongside a new storyline and engaging activities. Revenue for this game remained stable on a sequential basis, the TLBB Mobile. Next quarter, we will continue to launch expansion packs and content updates for the TLBB series and other titles to further keep players engaged.

對於更多遊戲，我們推出了——對於手機遊戲，我們推出了 Legacy TLBB Mobile 的擴展包，該擴展包增強了（聽不清楚）氏族的技能，並帶來了新的故事情節和引人入勝的活動。TLBB Mobile 遊戲的收入環比保持穩定。下個季度，我們將繼續為《樂高玩電影》系列和其他遊戲推出擴充包和內容更新，以進一步保持玩家的參與度。

We made an increasingly competitive market. We remain committed to our top game strategy. We follow a user-centric philosophy and adhere to solve (inaudible) and systematic R&D process to enhance efficiency and product successfully. As a part of the strategy, we are taking concrete steps to unlock the potential of our TLBB IP. Meanwhile, building upon our core strengths in MMORPGs, we are working to diversify into new types of games, including card-based RPG sports games and casual games as well as we expand our offerings for global markets.

我們創造了一個競爭日益激烈的市場。我們將繼續堅持我們的頂級遊戲策略。我們秉持以使用者為中心的理念，堅持解決問題（聽不清楚）和系統化的研發流程，以提高效率並成功改善產品。作為該策略的一部分，我們正在採取具體措施來釋放我們 TLBB IP 的潛力。同時，我們將以我們在大型多人線上角色扮演遊戲（MMORPG）領域的核心優勢為基礎，努力向新的遊戲類型多元化發展，包括卡牌角色扮演體育遊戲和休閒遊戲，並擴大我們面向全球市場的產品供應。

Now I would like to give an update on the ongoing share repurchase program. As of November 13, 2025, Sohu has repurchased 7.6 million ADS for an aggregate cost of approximately $97 million, so basically 2/3 of the $150 million program.

現在我想就正在進行的股票回購計畫作一次最新報告。截至 2025 年 11 月 13 日，搜狐已回購 760 萬股 A​​DS，總成本約為 9,700 萬美元，基本上完成了 1.5 億美元計畫的 2/3。

With that, I will now turn the call over to Joanna, please.

那麼，我現在將通話轉給喬安娜。

Thank you, Charles. I will now walk you through the key financials of our major segments for third quarter of 2025. All numbers on a non-GAAP basis. You may find a reconciliation of non-GAAP to GAAP measures on our IR website.

謝謝你，查爾斯。接下來，我將帶您了解我們主要業務部門在 2025 年第三季的關鍵財務數據。所有數據均以非GAAP準則為基礎。您可以在我們的投資人關係網站上找到非GAAP指標與GAAP指標的調節表。

For Sohu Media platform, quarterly revenues were [$17 million,] compared with $23 million in the same quarter last year. Quarterly operating loss was $71 million compared with an operating loss of $72 million in the same quarter last year. For Changyou, quarterly revenues, $163 million compared with $129 million in the same quarter last year. Quarterly operating profit was $88 million, compared with operating profit of $62 million in the same quarter last year.

搜狐傳媒平台季度營收為 1,700 萬美元，而去年同期為 2,300 萬美元。本季營業虧損為7,100萬美元，而去年同期營業虧損為7,200萬美元。暢遊季度營收為 1.63 億美元，去年同期為 1.29 億美元。本季營業利潤為 8,800 萬美元，而去年同期營業利潤為 6,200 萬美元。

For the fourth quarter of 2025, we expect marketing service revenues to be between $50 million and $60 million. This implies annual decrease of 15% to 20%, and a sequential increase of 10% to 18%, online game revenues to be between $130 million and $123 million. This impacts annual increase of 3% to 12% and a sequential decrease of 34% to 30%. Both non-GAAP and GAAP net loss attributable to Sohu.com Limited to be between $25 million and $35 million. This forecast reflects Sohu management's current and preliminary view, which is subject to substantial uncertainty.

我們預計 2025 年第四季行銷服務收入將在 5,000 萬美元至 6,000 萬美元之間。這意味著線上遊戲收入將每年下降 15% 至 20%，但環比增長 10% 至 18%，預計收入將在 1.3 億美元至 1.23 億美元之間。這將導致年增長率為 3% 至 12%，環比下降 34% 至 30%。歸屬於搜狐有限公司的非GAAP和GAAP淨虧損均在2,500萬美元至3,500萬美元之間。該預測反映了搜狐管理層目前的初步看法，但仍存在很大的不確定性。

This concludes our prepared remarks. Operator, we would now like to open the call to questions.

我們的發言稿到此結束。接線員，現在我們開始接受提問。

(Operator Instructions) Thomas Chong, Jefferies.

（操作說明）托馬斯·鐘，傑富瑞。

My first question is about the online game business. Given our online games performed very strongly in Q3, I'm just wondering how's the quarter-to-date performance so far? In particular, when I look into the guidance, it basically implies a sequential decline. So I'm not sure if we are a bit conservative in giving out the Q4 gaming guidance.

我的第一個問題是關於網路遊戲產業的。鑑於我們的線上遊戲在第三季表現非常強勁，我想知道本季迄今的表現如何？尤其是當我仔細研究相關指導意見時，它基本上暗示著一種連續下降的趨勢。所以我不太確定我們在發布第四季遊戲業務預期時是否有些保守。

And on the other hand, when I look into our [portal] business, when I look into the advertising side, we are actually seeing a quite sequential rebound in terms of the advertising revenue. Can -- Charles, may I ask about how you think about the macro sentiment coming into Q4 as well as the trend for different categories. And based on the current visibility, how should we think about the brand advertising outlook in 2026, if there's any color on that?

另一方面，當我審視我們的[入口網站]業務，當我審視廣告方面時，我們實際上看到廣告收入出現了相當明顯的連續反彈。查爾斯，請問您對第四季宏觀經濟狀況以及不同類別的發展趨勢有何看法？根據目前的情況來看，我們應該如何看待 2026 年的品牌廣告前景（如果有的話）？

First question is about online game, whether it is contributing to guidance.

第一個問題是關於網路遊戲，它是否對引導起到作用。

(spoken in foreign language)

（用外語說）

(interpreted) The performance of the fourth quarter so far is in line with our expectations. The strong third-quarter results is primarily driven by the successful launch of new game, TLBB: Return. And meanwhile, the new servers of TLBB Vintage also performed very well, achieving historic high.

（譯文）第四季迄今的業績符合我們的預期。第三季強勁的業績主要得益於新遊戲《TLBB：回歸》的成功發布。同時，《TLBB Vintage》的新伺服器也表現出色，創下了歷史新高。

So the actual revenue of third quarter exceeded our expectations a lot. And the performance of the fourth quarter depends mainly on the performance of new game, TLBB: Return, and the performance of the content and activities that we will launch during the first quarter for TLBB PC like in TLBB Mobile that -- yeah. Thank you.

因此，第三季的實際收入大大超出了我們的預期。第四季的業績主要取決於新遊戲《TLBB：回歸》的業績，以及我們將在第一季為《TLBB PC》推出的內容和活動（就像《TLBB Mobile》一樣）的業績——是的。謝謝。

I'm in line, right? Yeah.

我排隊了嗎？是的。

Okay so, I think the Q4 rebound, right? Comments you're seeing -- the (multiple speakers)?

好的，所以，我認為第四季會反彈，對吧？你看到的評論——（多位發言者）？

Yes.

是的。

Yeah, I think since the whole ad base is not that big, right? So it's kind of not -- it's kind of oscillated a little bit. It depends on something like some a pack, a contract allocated to this quarter, but because the contract was signed late and then went to the next quarter, right?

是的，我想是因為整個廣告使用者群體並不算大，對吧？所以情況有點……有點波動。這取決於一些因素，例如某個合約包，或分配給本季度的合同，但由於合約簽署較晚，所以延至下一季度，對嗎？

So it's -- but we do have some -- so first of all, the macroeconomic situation is really not that good under pressure in the different sectors like auto and IT services. So it's continued to kind of deteriorating. But as our new -- we have kind of an innovative, unique marketing campaign or services that are kind of unique that still we're able to attract some of the advertising.

所以情況是——但我們確實有一些——首先，宏觀經濟情況確實不太好，汽車和IT服務等不同行業都面臨壓力。所以情況一直持續惡化。但是，作為我們新的——我們擁有一種創新、獨特的行銷活動或服務，這些活動或服務也相當獨特，因此我們仍然能夠吸引一些廣告商。

So we were able to go against the trend and basically stabilized the advertising revenue on a small basis. So because I think in Q4, we have some good events that we're able to create -- are able to create such opportunities for them to advertise.

因此，我們得以逆勢而行，並在小範圍內穩定了廣告收入。所以我覺得在第四季度，我們有一些不錯的活動可以舉辦——可以為他們創造這樣的廣告機會。

I see. Thank you, Charles. May I ask a follow-up question about AI? Can you comment about how AI is integrated within Sohu right now? And are we actually seeing better productivity, cost savings, or better advertising monetization so far? Thank you.

我懂了。謝謝你，查爾斯。我可以問一個關於人工智慧的後續問題嗎？您能否談談目前搜狐是如何將人工智慧融入其業務中的？我們目前是否真的看到了更高的生產力、更低的成本或更好的廣告變現效果？謝謝。

I think AI has more impact, more usage or improvement on productivity on the gaming business, right? For Sohu, we are not developing a large language model. We are using AI to improve the user experience like for our social media platform, the AI can summarize videos content and give the -- and so the subtitles.

我認為人工智慧對遊戲產業的影響更大，對提高生產力也有更大的應用，對嗎？對於搜狐，我們並沒有發展出大型語言模型。我們正在使用人工智慧來改善用戶體驗，例如在我們的社交媒體平台上，人工智慧可以總結影片內容並提供字幕。

And also, in our new service, news app, there's this AI-enhanced search and question answering features. So we're basically using AI in different models to improve our existing service of media and social network instead of spending a lot on the hardcore large language model. Yeah, maybe the AI can improve. (spoken in foreign language)

此外，我們的新服務——新聞應用——還具備人工智慧增強的搜尋和問答功能。因此，我們基本上是在不同的模型中使用人工智慧來改進我們現有的媒體和社交網路服務，而不是在核心的大型語言模型上花費大量資金。是的，人工智慧或許還有提升空間。（用外語說）

(spoken in foreign language)

（用外語說）

(interpreted) The application of AI is now -- is mainly applied in art design and the code generation and the game planning creation.

（解釋）人工智慧目前主要應用於藝術設計、程式碼生成和遊戲策劃創作。

Alicia Yap, Citi.

Alicia Yap，花旗銀行。

I have a couple of follow-ups. First of all, on the gaming. Can management share with us what are the biggest surprise that you learned from the TLBB: Return version? And which one is the bigger driver in terms of the helping on the outperformance for this quarter? Is that the TLBB Vintage new server or is that the new games, TLBB: Return?

我還有幾個後續問題。首先，我們來談談遊戲方面。管理階層能否與我們分享一下，從 TLBB：迴歸版本中，你們學到的最大驚喜是什麼？那麼，本季業績超預期有更大推動作用的因素是什麼呢？那是 TLBB Vintage 的新伺服器，還是新遊戲 TLBB: Return？

And I understand you gave out the 4Q guidance. You mentioned this is reflecting the current situation that you're seeing. And I wanted to know is the vintage server that you are seeing the drop off of the user or you actually see that the new title, TLBB: Return are seeing the sequential drop off or decline on the user and the revenue? So any color that you can give us on that for the 3Q and 4Q would be helpful.

我知道你們發布了第四季業績指引。你提到這反映了你目前所看到的情況。我想知道的是，您觀察到的用戶流失是發生在舊伺服器上，還是發生在新遊戲《TLBB：回歸》上，導致用戶數量和收入連續下降？所以，如果您能提供第三季度和第四季度的任何顏色信息，都將對我們有所幫助。

And then second question for Charles on the macro situation. I think you mentioned auto IT services, the ad sentiment seems to be a little bit deteriorating. Are there any industry verticals or industry subsector that you are seeing is actually either improving on the sentiments or at least the sentiment is about the same as last few quarters?

接下來，我要問查爾斯一個關於宏觀經濟情勢的問題。我想你提到了汽車IT服務，廣告市場情緒似乎有點下滑。您認為有哪些產業領域或產業子領域的情況正在好轉，或至少與過去幾季的情況基本持平？

Okay. (spoken in foreign language)

好的。（用外語說）

(interpreted) The first surprise from TLBB: Return is the user spending is beyond our expectation.

（解讀）TLBB: Return 帶來的第一個驚喜是用戶支出超出了我們的預期。

(spoken in foreign language)

（用外語說）

(interpreted) Because TLBB: Return was positioned to be -- the game play is more relaxing and it requires less time and the demand for paying, spending is also less. So originally, we thought the users paying would not be very good.

（解讀）因為 TLBB：回歸 的定位是－遊戲玩法更輕鬆，所需時間更少，而且對付費的需求也更低，所以消費也更少。所以最初，我們認為付費用戶不會太多。

(spoken in foreign language)

（用外語說）

(interpreted) Second, the retention. The retention of TLBB: Return is very stable, better than our expectations.

（解釋）其次是保留率。TLBB 的留存率：回報非常穩定，優於我們的預期。

(spoken in French)

（法文）

(interpreted) As for the contribution to the revenue increase over the quarter, we don't disclose the specific number for individual gain.

（譯文）至於本季營收成長的貢獻，我們不揭露具體數字。

(spoken in foreign language)

（用外語說）

(interpreted) So far, the user base of both TLBB: Return and TLBB Vintage are both very steady, but their revenues are actually trending down because for TLBB Vintage, its performance in the third quarter was very good. So in the fourth quarter, we plan to roll out fewer promotional activities. And for (inaudible), as it was newly launched in the third quarter, so it really experienced a natural decline compared with the initial launch period because users tend to have stronger willingness to pay when the game was initially launched.

（譯註）到目前為止，《TLBB：回歸》和《TLBB Vintage》的用戶群都非常穩定，但它們的收入實際上呈下降趨勢，因為《TLBB Vintage》在第三季的表現非常好。因此，在第四季度，我們計劃減少促銷活動。至於（聽不清楚），由於它是在第三季新推出的，所以與最初的推出階段相比，它確實經歷了自然的下滑，因為用戶在遊戲最初推出時往往有更強的付費意願。

Okay. So your second question is about the ad situation, right, the sectors?

好的。所以你的第二個問題是關於廣告現狀，對吧，是關於各個領域的？

Yeah.

是的。

So I think the overall, the really kind of advertising market is under pressure. For example, the auto industry, there is the two (inaudible) effective trend. First of all, the competition, the fears because there are just too many car companies, right? So they need to stand out, try to have a larger market share, the pressure to market and to promote their brands and the sales.

所以我認為，整個廣告市場都面臨壓力。例如，汽車業就有兩種（聽不清楚）有效的趨勢。首先是競爭，以及人們的擔憂，因為汽車公司實在太多了，對吧？因此，他們需要脫穎而出，努力獲得更大的市場份額，並面臨行銷和推廣品牌及銷售額的壓力。

On the other hand, because of too many cars, there's the profit margin is very low for them. So the ad budget for each car companies are seeing getting less. So that's why it's the -- so with this situation, we have some kind of unique like The Physics Class or to -- like myself and live streaming to live streaming, visit of their factories and some unique and also with social network, social media distribution, all kind of unique advertising instead of the traditional sponsorship of our channels, the portal channels. We were able to get the ad budget.

另一方面，由於汽車數量過多，他們的利潤率非常低。因此，各汽車公司的廣告預算都在減少。所以這就是為什麼——在這種情況下，我們有一些獨特的，比如物理課，或者像我這樣的直播，參觀他們的工廠，以及一些獨特的，還有社交網絡、社交媒體分發，各種獨特的廣告，而不是我們頻道、門戶頻道的傳統贊助。我們拿到廣告預算了。

So the auto industry is kind of flat, but it's still declining. And also, we are also looking at the other -- the consumer electronics. We are just -- that manufacturer base, China's manufacturer base is very strong, and they have a lot of new products, but they need to also market those products to domestic market and still with our innovative offering of live streaming or social media distribution and lectures, lectures and the various events, we were able also to get some of those consumer electronics advertisers. And so that's why we are able to -- with this deteriorating market situation, we're still able to get some of the advertising part or section and still at a relatively small base.

所以汽車業目前基本上持平，但仍在下滑。此外，我們也在關注另一個領域──消費性電子產品。我們只是——中國的製造商基礎非常強大，他們有很多新產品，但他們也需要將這些產品推向國內市場，而憑藉我們創新的直播或社交媒體分發以及講座和各種活動，我們也能夠吸引一些消費電子產品廣告商。所以，即便市場情勢不斷惡化，我們還是能夠獲得一些廣告份額，而且基數相對較小。

Thank you. I am showing no further questions. And with that, we conclude our conference call today. Thank you for your participation. You may now disconnect your lines.

謝謝。我不會再提出其他問題了。今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路了。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標有（已翻譯）的部分是由現場通話中的翻譯人員翻譯的。本次活動的翻譯人員由活動贊助公司提供。