iQIYI, Inc. (IQ) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the iQIYI's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Ms. Chang Yu, IR Director of the company. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining iQIYI's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. The company's results were released earlier today and available on the company's Investor Relations website at ir.iqiyi.com. On the call today are Mr. Yu Gong, our Founder, Director and CEO; Mr. Jun Wang, our CFO; Mr. Xiaohui Wang, our CCO, Chief Content Officer; Mr. Youqiao Duan, Senior Vice President of our Membership Business; and Mr. Xianghua Yang, Senior Vice President of Movies and Overseas Business. Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Jun, who will go through the financials. After the prepared remarks, the management team will participate in the Q&A session. Before we proceed, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risk and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. iQIYI does not undertake any obligation to update any forward-looking statements, except as required under applicable law. I will now pass on to Mr. Gong. Please go ahead.

Hello, everyone, and thank you for joining us today. Starting from late November, we have observed a significant rebound in business performance across multiple metrics including net additions of subscribing members and user time spent, along with a reinforced leading position in the total drama viewership market share according to Enlightent data. This was boosted by the robust comeback of our top-tier content. In just the 3 months, 2 of our highly popular dramas, We Are Criminal Police procedural and Drifting Away [Foreign Langauge] surpassed 10,000 in the iQIYI Popularity Index, further solidifying iQIYI's unrivaled leadership in the suspense genre. We also enhanced our supply of premium female-oriented content, which is also one of our key content categories with [Moon in Brisbane ] exceeding 9,500 and Love Song in Winter exceeding 9,000 in iQIYI Popularity Index. Alongside the strong return of our premium long-form video content, we have made breakthrough in the mini drama space. Now our portfolio carries a selection of over 10,000 titles. We have also revamped our products to improve user experiences. On top of that, we have upgraded our ad placement system to more effectively monetize the growing traffic of mini dramas. All these efforts have led to swift growth in our user base and look forward to what the future holds. In addition to operational improvements, we are encouraged by the healthy recovery in consumer sentiment towards quality long-form videos as evidenced by historical high theatrical movie box office performance during the Chinese New Year. This trend reinforces our confidence in the quality long-form video content, and we are optimistic for long-form video industry in the coming year. As we step into 2025, we aim to boost membership revenue by raising the quality and the share of gaming content. We also aim to expand the advertising revenue by enlarging our ad inventory, which will benefit from the growth of mini drama business. Together, these 2 elements will serve as the growth engine driving our revenue growth. Now let's move on to the details of our core business segments, starting with long-form videos, which is the cornerstone of our content ecosystem. We have sustained our leadership in the core drama category, capturing the highest total viewership market share in Q4 and for the full year 2024 according to Enlightent data. This was underpinned the exceptional performance of our highly acclaimed titles across multiple genres. In Q4, our dominance in the reality of suspense genres remained unchallenged. Notably, We Are Criminal Police become the 15th drama to break the iQIYI Popularity Index score of 10,000 and recorded the highest score of our platform in 2024. Additionally, new releases like [ Light Skin Mobile ] and Under the Skin Season 2 gathered high acclaim from viewers. Our exciting slate of offering goes beyond Q4, notably building our base from our flagship Light On [ sales ramp ] surpassed a Popularity Index score of 10,000, reaching just the 6 days of its release. It was also the first drama with fewer episodes to reach such highs. In Q4, for premium female-oriented content, we made a great progress in stabilizing our content release schedule and captivating audiences with [ Black Forest and Cell Job ]. Notable among this is the Asian custom drama Fangs of Fortune [Foreign Language] which successfully attracts new members like us. In addition, modern drama, Love Song in Winter was praised for its innovative blend of suspense and romance hitting a peak iQIYI Popularity Index score of over 9,000. Looking ahead, we are committed to further refining our production lineup and release timing for both Asian customer dramas and modern tales that resonate with our female audiences. Turning to movies. In Q4, we have maintained our leading position in viewership for 12 consecutive quarter according to Enlightent data. The performance was highlighted by our original production [ A Frozen Rage ] [Foreign Language] which was the best-performing comedy movie on our platform this quarter. There are subsequent releases like upstream [Foreign Langauge] also secured top positions on iQIYI popularity chart during Q4. For animations in Q4, our production capabilities for Chinese animations continue to improve. The Legend of Sky Lord [Foreign Language] remained its popularity among audiences. We also further boosted our offerings with exclusive new IP such as Urban Miracle Doctor [Foreign Language] for Japanese animation, we exclusively released the Dragon War [Foreign Language] on our platform, receiving positive feedback. Looking forward to 2025, we are dedicated for enhancing the production and the management of our long-form videos. Our primary goal is creating exceptional content, elevating its commercial potential while optimizing the production and distribution process for increased efficiency. For dramas, we will focus on improving the pipeline stability and the share of our top-tier premium content. We aim to strengthen our leadership in realistic and suspenseful themes while enhancing our premium content that appeals to female audiences, which have shown strong momentum. [ Examples of themes on the ] platform such as Drifting Away, we are also going to release titles from Light On Theater including Breaking the Shadows, [Foreign Language] [A Life for a Life ] and [Foreign Language]. Our strong lineup also features highly anticipated female-oriented dramas, [ Moon in Brisbane, the Cell Net ] Season 2 and Love of the Divine Tree, [indiscernible] have already been released and have gained strong traction among female audiences while more compelling releases to come. For variety shows, our strategy is centered on our compatibility. We are committed to maximizing the commercial value of our classic IPs while exploring innovative new shows. For flagship multi-season IPs, our strong lineup includes Become a Farmer [Foreign Language] [ The Five Hearts ]Seasons 5 and The Rap of China 2025 and The King of Stand-up Comedy 2 [Foreign Language]. We are also introducing several fresh new IPs, including [ The Blooming Journey ], [Foreign Language] [ Steam Asia ] [Foreign Language] and [The Greatest Showman] [Foreign Language]. Notably, [The Blooming Journey] was released in January and quickly received a peak iQiYI Popularity Index of about 8,000 while topping the Enlightent rankings. For the comedy genre, we are building up the success of The King of Stand-up Comedy last year. We launched a spin-off show, HAPPY OFF WORK during the Chinese New Year holiday, further strengthening the iQIYI's influence. For movies, premium content is our top focus, especially original theatrical releases that can generate top box office revenue. In 2025, our original movie [Winter to Summer], [Foreign Language] topped the sales charts. Audiences can also enjoy theatrical hits on our movie channels, including [Foreign Language] and [Burning Sun] [Foreign Language] and [Octopus] [Foreign Language]. We also plan to increase our production capability for online films. In the field of animation, we are trying to broaden our collection of enduring series and devote resources specifically to a high-quality Chinese animation. Our objective is to raise both the quality and the financial performance of our original work. Major titles to be launched includes [Superhero] [Foreign Language], [The Patriot, Magical Princess], [Foreign Language] and sequels to beloved children's animation, including the [Foreign Language] and [The Prince's Story] Season 4 [Foreign Language]. Moving on to mini drama. We achieved exciting milestones in just 3 months. Firstly, we have successfully revamped our apps. Now the mini drama in the iQIYI main app focus primarily on subscription-based model, while the iQIYI Lite app [Foreign Language] free mini drama supported by advertising model. Secondly, we have largely completed the construction of back-end system, especially for content recommendations and advertising capabilities. This not only elevates the viewing experience, but also unlocks fresh monetization opportunities. Furthermore, our mini drama portfolio has quickly expanded to over 10,000 titles now, capturing 95% of the leading mini drama content providers in the market. This expansive and diversified content portfolio has paved for our next stage of development. The recent program has largely increased our user base and the viewer time spent on mini dramas in the fourth quarter with these positive trends expected to continue. Notably, in December, our platform had its first mini drama generating monthly revenue sharing income exceeding RMB 1 million. As we enter the next phase, we are aiming to refine our products and service offerings with personalized recommendations, fine-tune our advertising system to appeal a broader base of new advertisers, broaden our content catalog with fresh and elaborate titles and cultivate iQIYI's original mini drama ecosystem to provide a steady stream of high-quality content. Moving on to Membership Services. Membership revenue in the first quarter was RMB 4.1 billion, down annually and sequentially, primarily due to a lighter content slate during the first 2 months of the quarter. However, starting from late November, we have observed a strong comeback in premium content offerings as previously discussed, driving a significant turnaround in our membership business. To be specific, we have improved our long-form video content and introduced exclusive mini drama for members, aiming to improve member retention and attracting new subscribers. Additionally, we have maintained a tighter supply of premium content and stepped up our promotional efforts so subscribers can eagerly anticipate new releases, thereby driving their loyalty to our platform. Beyond content enhancement, we have reclassified our membership offering into 2 primary categories, one category tailored for individuals, the other for families. Both categories include an ad-supported basic service tier as well as [ vendor ] service tier. Moreover, the family category also features a premium service level, which is addendum plan. This plan grants additional privilege, including unlimited access to express package that provide early access to finals of our premium content, the ability to log in on up to 8 supported devices and opportunities to participate in major offline events. This linked classification benefits our membership business in multi ways. One, it simplifies the structure of our membership plans, making their positioning clear. Two, it captures broader user needs and the user group from value-seeking individuals to those desiring more premium perks. Three, it effectively addresses the issue of authorized password sharing. In the first quarter, to offer an improved solution to account sharing, we introduced the extra member feature. Additionally, our ad-supported basic plan has seen a consistent uptick in subscriptions, especially among users in low-tier cities and within the young demographic throughout the quarter. In a move to further elevate the value we offer, we also introduced more joint membership options, which gained traction with our members. Looking into 2025, our strategy focuses on building a membership business that better caters to mass audiences. We also intend to optimize member offerings, streamline operations and improve distribution channels. Moreover, we aim to elevate the iQIYI member brand and associate standards, ultimately boosting the value experience by our members. Moving on to the advertising business. Revenue during the quarter came in at RMB 1.4 billion, growing 7% sequentially and showing a reduced rate of annual decline when compared to the prior period. For brand ads, revenue show double-digit sequential growth. This was primarily driven by the double-digit brand ad revenue growth generated by our premium dramas. In 2025, we aim to evolve our brand advertising business by diversifying our revenue streams and exploring new innovative advertising opportunities. We plan to refine client service, which will help retain our current advertisers and attract newcomers from sectors like food and beverage, cosmetics and toiletries and communications. We will also keep an eye on emerging sectors such as healthcare, home furnishing and tourism. Additionally, we aim to increase of top-tier clients and explore opportunities in mini dramas and advertiser customized shows. Performance ads continue to grow both annually and sequentially. This was largely driven by operational improvements and major e-commerce campaigns and the robust service provided to clients from Internet services sector. Notably, revenue contribution from the e-commerce sector during the Double Eleven shopping festival increased by over 40% annually and the revenue from the Internet services during the quarter increased by over 30% year-over-year. To sustain this momentum going forward, we are enhancing our technical and platform capabilities to secure a larger share of budgets from top-tier clients in sectors such as the e-commerce, Internet services and the video game sectors. We will continue leveraging AI for video and production and expand our client base to improve monetization efficiency. We are also excited about the incremental ad inventory that mini drama could bring in 2025. Moving on to technology and products. We continue to advance the industrialization of the video business, thereby improving our operational efficiency. Our intelligent production management system has become essential for production crews managing various tasks on-site, providing them with advanced production tools and management capabilities. In the first quarter, we further enhanced the system to incorporate highly efficient production supply management capability. With regard to virtual production, we have embraced the technology to push the boundary of content creation. We are proud that our project Fangs of Fortune and My Journey to You have both won multiple prestige industry awards for their excellent use of virtual production. Meanwhile, we have made impressive progress with our digital asset collection. Throughout the year, we have assembled a massive digital asset library from hundreds of dramas, variety shows, movies and animations. It is recognized as one of the leading collections in China. We are now leveraging their assets in new video projects and expanding into offline experiences. Looking forward, we are setting our sights on wider applications, including content creation, IP value-added services and immersive virtual reality experiences. Moreover, we have been expanding AI applications across content production and operations. AI's influence has been transformed, notably in refining our project assessment process providing valuable insights for appraising nearly 5,000 screen plays and novels. Additionally, AI as in character design and customer selection as the project approval stage based on the character description from screenplays that's streamlining the creative process. Lastly, for our business performance in regions outside of Mainland China, we maintained solid performance in the first quarter with both total revenues and membership services revenue gained annual and sequential growth, notably membership revenue from Hong Kong, U.K., Thailand and Australia grew by over 30% year-over-year. The average daily number of subscribing members also increased both annually and sequentially with Hong Kong and Thailand growing over 40% year-over-year -- 50% year-over-year. The popularity of our original content continued to strengthen. Fangs of Fortune was the best-performing China drama on our overseas platform in 2024 with high adopt version topping the viewership rankings in Thailand. Additionally, our first original overseas variety show, Starlight Boys extended its success beyond our platform, achieving top position in local Google rankings for variety shows across numerous Southeast Asian countries. Furthermore, b-dramas have emerged as a popular content category on our international platform, ranking second only to c-dramas. Encouraged by this trend, we are planning to increase our investments in original high production. We have been focusing on expanding our international brand recognition to region-specific demand. Last quarter, we launched our first ever eye-to-eye conference overseas, which set a new benchmark as the most comprehensive and best attempt press conference ever hosted by our Chinese video platform in Thailand with exceptional artist participation. As we set our eyes on 2025, our main focus abroad will be to drive revenue expansion. We plan to enhance our c-drama offering and improve the monetization ability of region content having established a strong presence in Asia, especially Southeast Asia. We are set to expand our footprint into Middle East, Latin America and Brazil. Our approach includes reinforcing tales with telecom partners, seeking innovative collaborative opportunities and wrapping up marketing initiatives to boost our brand and content impact. In summary, we closed the year by embracing a series of reinventions and innovation that successfully propelled our business forward, setting a strong start to 2025. We are confident that the strong comeback of premium long-form videos, coupled with our continuous innovation in mini dramas would serve as fuel engines during sustained growth for 2025. Now let me pass it on to Jun who will go through our financial performance.

Thank you, Mr. Gong, and hello, everyone. As Mr. Gong mentioned earlier, driven by the premium content, we have experienced a significant rebound in main operating performance in comparison to November 2024. Now let's take a look at Q4 key numbers. In Q4, the total revenues were RMB 6.6 billion, down 14% annually. Membership services revenue reached RMB 4.1 billion, down 15% annually, primarily due to a lighter content slate. However, as Mr. Gong has mentioned, premium content had a strong rebound from late November 2024 to now. For online advertising, revenue decreased by 13% year-over-year to RMB 1.4 billion. This was primarily due to the decrease in brand advertisement business, partially offset by the growth in performance ad business. Content distribution revenue reached RMB 406.6 million, down 20% annually, primarily due to a lower revenue from distribution of theatrical movies invested by iQIYI and a decrease in other transactions, partially offset by increased revenue from cash transaction. Other revenues decreased by 10% annually to RMB 670.2 million. Moving on to cost and expenses. Content cost was RMB 3.4 billion, down 9% annually, primarily driven by our improvement in the content strategy as well as a lighter content slate in the quarter. Total operating expenses were RMB 1.3 billion, down 5% annually, primarily due to disciplined marketing spending. Turning to profits and cash flows. Non-GAAP operating income was RMB 405.9 million and its corresponding margin was 6%. Net cash provided by operating activities totaled RMB 519 million, positive for 11 consecutive quarters. As of the end of Q4, we had cash, cash equivalents, short-term investments and long-term restricted cash included in the prepayments and other assets of RMB 4.5 billion. For detailed financial data, please refer to our press release on our IR website. Now I will open the floor for Q&A.

[Operator Instructions] Your first question comes from Xueqing Zhang with CICC.

[Interpreted] We have noticed that iQIYI had launched many hit drama series since the beginning of this year. Looking ahead to 2025, what's your content pipeline? What about the quality of these titles? How many of them have the potential to become blockbusters?

Thank you, Xueqing. We will invite our Chief Content Officer, Mr. Xiaohui Wang, to answer this question. Go ahead.

[Interpreted] We had a good start of the year for 2025 with the new season of the light on theater drama, Drifting Away launched in January, reaching iQIYI Popularity Index of over 10,000 in just 6 days. It is a milestone for us because it is not only the first drama of the year to break the 10,000 in popularity, but it also is iQIYI's light on theaters and our first drama with limited number of episodes to achieve this milestone. Our main goal for this year 2025 is to enhance both the quality and the share of our premium top long-form video content, also ensuring a greater stability and continue the strong start to the year. In most -- the most critical areas such as the drama genre, the number of premium top-tier dramas planned for release this year will significantly increase compared to last year. We will also focus on creating a tighter narrative pace that better aligns with the current social sentiment and users' aesthetic changes. And then for suspense and crime dramas and female-oriented content that are our 2 main programming pillars. For this year, we will continue to maintain our absolute leading advantage in the suspense and crime genre. And for this year, the light on theater has several works planned in addition to the already launched Drifting Away, there will be more releases, such as Breaking Shadows, Justifiable Defense, A Life for a Life, Low-Quality Crime, Dead End and Beneath the Undertow. In terms of the female-oriented content and multi-season titles, we will further strengthen our offering and continuous programming with plans to launch titles such as, The Best Thing, Love in Pavilion, Fox Spirit Matchmaker: Sword and Beloved, A Dream Within a Dream, and The Strange Tales of Tang Dynasty Season 3. Additionally, we will continue to maintain our investment in the realm of realistic genres. The pipeline includes Northward, What a Wonderful World, August Born, Eight Thousand Miles of Cloud and Moon [Baoting and O-Town ].

Your next question comes from Lei Zhang with Bank of America Securities.

[Foreign Language] I want to know further updates on your short mini drama area. And do we have any strategic plan on mini drama in 2025?

[Interpreted] Our CEO is actually taking this question. He first of all, would like to clear the definition of mini dramas that we've been talking about in his opening remarks. So for mini dramas, we identified them as the vertical format, RMB 1 million to RMB 3 million. And then this is the main area that we're focusing on. For the horizontal mini dramas, which is quite similar to the long-form video content that we have the edge on, so this is something different. So we decided to invest in the mini drama business about 1 quarter ago. The reason there are 2 aspects. First of all, right now, because the users are more [ used ] to the fast-paced content and they have a shorter attention span and then they also enjoy content in a more fragmented time as well. So that's the first reason. And also from the industry perspective and the market perspective, for 2024, the market size for mini dramas, although there are different data sets estimated by third parties, but we believe it should be greater than the Chinese box office for 2024. For 2025, we are glad to see a strong rebound of the theatrical box office during the Chinese New Year. However, that we still think the mini drama market should still exceed the Chinese box office in 2025. Our mini drama business actually has successfully completed the key tasks that we set for the first phase, achieving significant results in 3 areas for user product transformation, content portfolio and also building an excellent system development. Currently, actually, our mini drama content library has over 10,000 titles, and it has reached a scale that's comparable to the leading mini drama platform in the industry. There are 2 reasons that how we achieved such a significant improvement in a very short amount of time. First of all, for our team, actually, we have a very mature, whether it's IT team, a technology team, product team and also the operational team. All these have over 10 years' of experiences, although mini drama is a new genre, but there are a lot of know-how that we can replicate from the long-form video experience. That's the first reason. The second reason is we have a very deep connection with the industry and also the industry resources, specifically for content providers for the industry, most of them, we have existing -- we have actually collaborated with them in the past or we have existing collaborations. So the above 2 reasons help us to achieve such progress in a short amount of time. For our main IP, the position is still focusing on the long-form video content and then focusing on the subscriber-based revenue model. For iQIYI Lite, we have quickly revamped this app and then now it is prioritized in 3 mini dramas and then supported by the long-form model. In terms of the user time spent for the main iQIYI app, the mini drama time share now is actually close to the scale of animation, cartoon and also variety shows. For iQIYI Lite, the mini drama time share is the second largest content drama, only second behind long-form video content. I'll quickly introduce the next stage, key tasks. The first one is we'll focus on introducing the leading mini drama titles and then for iQIYI. Second is to build the iQIYI original mini drama ecosystem. For the Chinese New Year period, actually, we have already launched quite a few titles. Next 2 tasks are focusing on to -- hopefully, we can increase the inventory of mini drama advertisement and also to enhance the monetization capabilities of mini dramas. We would like to actually explore more advertising budgets and also the new format of advertising budget from the ad space. Last, but not least, we will try to increase more investment in terms of user growth. Hopefully, we can attract more users to bring them to iQIYI to watch mini dramas. Thank you.

Your next question comes from Lincoln Kong with Goldman Sachs.

[Foreign Language] My question is about the membership business. So regarding the recent content performance and how is the impact from those measures like Family card or Star Diamond member extra content gifts on those -- the impact on the membership business as well as the strategy for full year 2025.

Thank you, Lincoln, and I will invite Mr. Youqiao Duan, the Senior Vice President of Membership business, who will take this question. Go ahead.

[Interpreted] Since late November 2024, the continuous programming of premium titles dramas has actually driven the membership business to a turning point, resulting in a significant increase in subscribing members. We actually rolled out several key initiatives for 2024. We have reclassified our membership offerings into 2 primary categories, one for individuals and for families. For individuals, there are actually 2 plans with no large-string access. And for families, there are 3 plans with large-string access. The membership rights and benefits are divided into 3 tiers: basic, standard and premium. The new reclassified membership system actually allows users seeking either high cost-effectiveness or premium benefit experience to find products that suit their needs. Second, we strengthened the crackdown on password sharing, while introducing the excellent account service as an authorized sharing solution, effectively expanding the membership base and improving member retention. The third point that we did was we enhanced the benefits for premium members. The newly added benefit for S Diamond members, the limited complementary early access to the Express packages that provide early access to finales of our premium content, increased value and perception of premium membership. After the launch of the new benefit, the number of S Diamond members have largely increased with most of the new members attracted by the Express package benefit. And the existing S Diamond members have also been noticeably more active on the platform. We have a few areas that we're focusing on for 2025. First, we'll continuously enhance the stability and continuity of our top tier premium content programming and strengthen the prerelease promotion for upcoming content, establish mind share among users to improve their loyalty to iQIYI. Second, we'll build -- focusing on building a mass market membership service to increase membership scale and revenue. While focusing on attracting new members, we will prioritize improving member retention and user engagement and also will increase the revenue scale and revenue share from external channels. Third, we will systematically continue to optimize the membership products and operations, including further refining the membership product system and pricing strategy, also enriching membership benefits and for improving the member user experience and also crafting a membership model tailored for mini dramas. The fourth, we will strengthen the quality of membership services and iQIYI brand, enhance the perception of membership benefits and privileges and also improve the overall Net Promoter Score for iQIYI members. Thank you.

Your next question comes from Maggie Ye with CLSA.

[Foreign Language] Just now we heard about some encouraging performance in overseas markets in terms of both membership revenue and subscribing members. Could you please provide an update on the core strategy for our overseas business in 2025?

Thank you, Maggie. We'll invite Mr. Xianghua Yang, the Senior Vice President of our Overseas Business to take this question. Go ahead.

[Interpreted] The overall strategy for business outside of Mainland China in 2025 is to pursue rapid revenue growth while retaining profitability. In the past few years, we have focused on several markets, including Southeast Asia, Hong Kong, Macau and North America and have achieved satisfactory development. And for 2025, we have set different strategies for different markets. For the markets where we entered since the early days, such as Thailand, Malaysia and North America, our goal is to achieve both profit and revenue growth. For the new explored markets such as Indonesia and South Korea, the focus is on revenue growth for 2025. At the same time, we're also planning and preparing for the long-term growth of our business and hoping to break into new markets in 2025, such as the Middle East, the Spanish-speaking Latin American region and also Brazil. For content wise, we will strengthen the programming for 3 dramas in 2025, and the content slate is actually more suitable for the preferences of our overseas viewers in 2025 compared to the content we launched last year. In terms of local dramas, local content, after years of efforts, we have actually accumulated some experience and that we'll continue to invest in markets such as Thailand and Malaysia, which will serve an important support for user growth in the future. For content promotion, advertising placement and also the collaboration with telecom carriers and other channels, our core method of -- lead the content value. So in 2025, we will increase our investment in these areas and in more markets. So overall speaking for 2024, our overseas business in terms of the membership growth and also revenue also maintained a relatively high speed of growth. And since December 2024, with the ongoing amount of high-quality content, the overall growth rate of our business has been even faster than 2024, so which gives us more confidence in the revenue growth for 2025.

That concludes our question-and-answer session. I'll now hand back to management for closing remarks.

Thank you, everyone, for participating in the call today. If you have any questions, don't hesitate to contact us. Thank you, and see you next quarter.

That does conclude our conference for today. Thank you for participating. You may now disconnect. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]