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

Thank you for standing by, and welcome to the iQIYI First Quarter 2025 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Ms. Chang Yu. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining iQIYI's First Quarter 2025 Earnings Conference Call. The company's results were released earlier today and are 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 and Mr. Gang Wu, Senior Vice President of Brand Advertising 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. The 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. We delivered a solid first quarter, gaining sequential growth in both total revenues and profits. This was built by on a strong rebound in our long-form premium content and strategic investments in vertical format micro dramas. iQIYI is rapidly cementing its position as a go-to platform for users with a seamless blend of long-form and short-form entertainment, creating exciting opportunities for future commercialization. This will strengthen our confidence and commitment to drive even deeper upgrades across our business model and the content ecosystem in response to evolving market and user demand. For the core long-form video content, we are committed to delivering, engaging and soft after story as reflected in our strong lineup of top-tier dramas, notably Drifting Away from our flagship Light On Theater brand surpassed 10,000 iQIYI popularity index score where The Demon Hunter's Romance, YouTube and Moonlight, Mist Theater [Foreign Language] both achieved a score of over 9,600. Looking ahead, we are dedicated to focusing on premium content with a strong commercial value, while also upholding artist excellence. Additionally, we will further enhance our certain production mechanism to deliver shorter, faster pace and more targeted basis storytelling that resonate strongly with audiences. Through this user-centric approach, we are confident in our ability to unleash our full creative potential and foster work force content ecosystem. For micro dramas, we made notable progress on iQIYI Lite. Micro dramas now the second in terms of daily time spent and the first in the number of daily unique visitors. This clearly shows the growing appeal in captivating audiences, reinforcing our confidence in further unlocking their full potential. Moving forward, we are committed to expanding our micro drama portfolio, placing a strong emphasis on premium micro dramas by enhancing original production and acquisition capabilities. At the same time, we aim to effectively monetize their growing traffic through advertising and e-commerce. Beyond our content ecosystem, we are leveraging technical innovation to improve user experience. A standout example is the launch of our AI-powered [ I Jump ] which transform how users engage with long-form videos with a simple swap app all done on their mobile screen, users can effortlessly escape between key highlights in each episode without missing any exciting moments, delivering a user-centric micro drama-like experience tailored to today's fast paced viewing habits. Highlight points are generated by AI-based videos and personalized behaviors of each user. As all investors are aware, the market is becoming increasingly unpredictable, as it continues to evolve. However, in such a volatile environment, the ability to create sustainable value is emerging as a real and valuable asset. With this in mind, we are ramping up our investments in strategic areas such as enriching our content ecosystem and enhancing the user experience. While these investments may lead to short-term costs, they are designed to deliver long-term benefits. Now let's move on to the details of our core business segments. Starting with long-form videos, which serves as the foundation of our content ecosystem, we maintained leadership in the core drama category and securing the top spot in terms of total viewership market share during the quarter according to Enlightent data. Our strong performance was highlighted by breakthroughs in our genres-specific [Foreign Language] as we have now established 5 distinct signature brands, each featuring unique content genres. In the suspense genre, our [Foreign Language] brand achieved a remarkable milestone with the release of Drifting Away is first tile to surpass the 10,000 iQIYI Popularity Index score. It also generated the third heaviest single episode revenue in our history, just behind the megahit The Knockout [Foreign Language]. In the romance genre, our [indiscernible] [Foreign Language] brand made notable progress in this quarter, expanding our portfolio of content for female audiences with release of 4 captivating titles. Notably, our in-house produced fantasy drama Moonlight, Mist Theater [Foreign Language] garnered an impressive popularity index score of over 9,600. Our modern romance drama [Foreign Language] was not only a success in the domestic market, but also the best-performing modern [indiscernible] drama on our overseas platform [indiscernible] Chinese drama. Our masterpiece [Foreign Language] specializing in adoption and realistic stories debuted its first title Northward. This drama adapted from modern literature and winning novel, has further strengthened our reputation for top-notch drama. Lastly, our micro classic genres [Foreign Language] focus on innovation -- innovative drama genres with few episodes and comedy, respectively. Building on the success of past hits such as [Foreign Language] brand are set to release an exciting lineup this year. Turning to movies. We continue to dominate the category during the quarter with the highest viewership market share according to Enlightent. Premium content has a strong long tail effect exemplified by the success of Nezha 2 during Chinese New Year. The film boosted viewership of the original Nezha making it the most watched movie on our platform this quarter. In addition, our original production Bleed For Past logo achieved strong revenue and viewership, especially among male users drawn to action and crime genres. For variety shows during the first quarter, our flagship multi-season IP become a [indiscernible] made strong comeback, sustaining strong traffic and positive word of mouth. Our brand-new IP, The Blooming Journey [Foreign Language] excelled with iQIYI popularity index score of over 8,000, attracting audiences in low tier cities and among other out beyond commercial viewers. In terms of animation during the first quarter, we continue to improve our production capabilities. Key titles Super Cube [Foreign Language] generated positive user feedback during the quarter. Moving on to our content strategy and the pipeline. In our core drama category, our focus is on creating a well-balanced content mix that aligns commercial success with excellence. We are committed to 3 key genres: realistic, suspense and female-focused drama to cater to faster pace viewing habits. We are enhancing our content creation strategies. This includes reducing the episode cost for long-form dramas and increasing the number of high-quality short dramas with each episodes lasting 5 to 20 minutes. This change will expand the volume of diversity of our offering, enrich the user experience and drive deeper audience engagement. Our drama pipeline features an exceptional lineup of top-tier content. The already released The Demon Hunter's Romance [Foreign Language] gathered widespread acclaim. Adding to the excitement, the highly anticipated [Foreign Language] will be released soon. In the romance genres, our renowned Light On Theater [Foreign Language] Breaking the Shadows [Foreign Language] [indiscernible] can also look forward to upcoming release, including Justifiable defense and [Foreign Language] and Born with Luck! [Foreign Language] adapted from the renowned novel [indiscernible]. Additionally, the new science fiction drama with a wonderful [Foreign Language] will be released shortly as well. Our lineup of realistic drama includes highly anticipated titles such as [Foreign Language] among others. For movies, we are increasing investments in original production, focusing on theatrical releases with strong box office potential. Notably, our original production, Mumu, has already achieved a box office revenue of over RMB 140 million. We have 6 more titles scheduled for theatrical release throughout the rest of the year, including [Foreign Language]. Additionally, we are boosting the top 4 online movies with revenue sharing model. Our diverse lineup includes 8 original online movies such as [ Ultimate Mission ] [Foreign Language] and Northeast Brother, Season 3 [Foreign Language] covering popular genres such as marshal art, comedy and action. For licensed theatrical movies, we launched several hits, including [indiscernible] and Detective Chinatown 1900 [Foreign Language] both of which have successfully theatrical [indiscernible] during the Chinese New Year and are now performing well on our platform. For variety shows, we will maintain our focus on producing top quality programs, while introducing exciting new content. This includes sequels to larger classic like Hahahahaha and The Rap of China 2025, alongside fresh IP such as Sing! Asia [Foreign Language] and the reality show [Foreign Language] building on the successful -- building on the success of The Blooming Journey. We also plan to launch its second season later in this year. For animation, we are dedicated to increasing revenue contribution from original productions, especially high-quality Chinese animation. We also aim to broaden our collection of enduring series and optimize our operations to maximize IP value. Major titles to be launched include animation over the [Foreign Language]. Moreover, we are excited to announce that the highly acclaimed Japanese animation, One Piece, [Foreign Language], has resumed for its dedicated fan base. For children's content, we will concentrate on IP commercialization and developed a comprehensive IP ecosystem that spans the entire life cycle, offering all services tailored to parent-child audiences. Anticipated titles include Princess [indiscernible] [Foreign Language]. Moving on to micro dramas, which have demonstrated promising potential within our content ecosystem, harnessing this powerful momentum. We are poised to amplify our investments in micro drama content and strengthen user acquisition efforts. We have 3 key objectives starting with strengthening our user base and boosting business resilience by increasing micro dramas into our content ecosystem. Secondly, we see micro dramas as a catalyst for attracting new users and driving membership revenue growth, especially in under lower-tier cities and among older audience. Lastly, we are actively exploring monetization opportunities for our micro drama initiatives such as advertising and e-commerce. We have successfully achieved the first objective by revamping our apps and rapidly expanding our micro drama to over 15,000 titles now with half available for free and the other half exclusive to members. Our revamped apps are positioned differently in terms of design and targeted audiences. The main iQIYI app focuses primarily on long-form videos and mainly uses subscription model with micro dramas serving as complementary value add. The iQIYI Lite primarily focus on 3 micro dramas and monetize them Zoom advertising and e-commerce. This meaningful progress have driven impressive growth in both daily view time and unique visitors for micro dramas with substantial increases of over 300% and 110%, respectively, when comparing the first week of April to December. In the future, iQIYI Lite will be rebranded as iQIYI Micro Dramas, and we are confident that this transformation will tap into its full potential. We pioneered the concept of dedicated Chinese New Year list for micro dramas, releasing 28 premium titles hit like [Foreign Language] by consistently delivering premium content. We are reinforcing our position as the good platform for micro dramas. As the micro drama industry continues to evolve, the growing user demand for premium title aligns perfectly with our core strength, with expertise in premium content, trusted brand and a loyal user base. We are uniquely positioned to capitalize on this trend, coupled with our extensive resources, talent teams and advanced technologies, we deliver unique value to the micro drama industry. To that end, we are continuously enhancing our ability to produce original micro drama, while exploring innovative genres to broaden our content offering. These initiatives include notable projects such as adapting around 100 classic Hong Kong movies and producing an extensive series of legal educational content, all to be developed as micro drams. Additionally, we are integrating technologies like AI and virtual production to improve both efficiency and quality. Building on these initiatives, we are collaborating with partners to foster a thriving industry ecosystem. In March, we hosted the first micro drama [Foreign Language] bring together hundreds of actors, creators and industry professionals. The event sparked meaningful interest from advertising eager for future collaboration. As the first ever ceremony dedicated to the micro drama industry, it not only enhanced our profile, but also reinforced our role as a key industry player. Moving on to membership services. Revenue regained growth momentum during the quarter, increasing 7% sequentially to RMB 4.4 billion with healthy growth in subscriber base in Q1, supported by the strong performance of key titles such as Drifting Away, Moonlight, Mist Theater and Northward. Average revenue per member remained healthy, thanks to our improved operating initiatives. Our strategy is focused on developing a membership that caters to a broad audience, expand our subscriber base, delivers enhanced value and ultimately accelerate revenue growth. As the core membership business is exceptional content, we strive to boost both member acquisition and retention by maintain a consistent flow of premium long-form content and engaging micro drams. We continue stressing our membership plans, delivering greater value to our members. We are refining product positioning to connect with a broader user base. The family-oriented premium segment plan saw excellent growth after we introduced free unlimited package [Foreign Language] benefit. Meanwhile, our ad-supported basic membership plan designed to offer exceptional value and a lower price reached historic adoption high. Younger generation and users from low-tier cities listed in new members with many joining as the first-time subscribers. We focused on enhancing member value through initiatives that boost loyalty and drive upgrades. Long-term members now enjoy greater discounts, while premium lifetime members receive free price package. To drive conversions, we expanded options like Express Package [Foreign Language] experience programs, who purchases, gift cards and bundled membership plans with added benefits. These steps make our membership services more attractive and valuable, supporting steady revenue growth and a strong membership community. Moving on to advertising business. Advertising revenue in the first quarter decreased sequentially to RMB 1.3 billion. Other than the macro pressure, Q1 is typically low season compared to Q4. For brand ads, our top-tier dramas and variety shows remain a strong draw for advertisers with content-driven ads contributed over half of the revenue. Notably, the sequel to our classic IP [Foreign Language] advertising sales with the new IP, The Blooming Journey and fantasy drama, Moonlight, Mist Theater widespread positive feedback. Looking ahead, brand ads are showing encouraging signs of our potential rebound, driven by premium content. We plan to drive our sales by leveraging premium dramas and the generous [indiscernible] brands. For variety shows, we have our focus on delivering high-impact projects and expanding sequel opportunities for classic IPs. Additionally, we aim to launch [indiscernible] type meaning variety shows, micro dramas and customized advertising programs, providing innovative and tailored advertising solutions. On the performance ads front, we captured budgets from new high potential customers in the Internet services and education sectors, whether diversifying our advertise-type in addition incorporating AI into advertising content creation has boosted ROI by over 20% compared to apps developed with the help of AI. The future focus is on continuously enhancing our technologies and plan capabilities to drive new revenue growth across internet services, e-commerce, gaming and education too. We plan to seize growth opportunities in micro dramas and deepen the integration of AI maximize monetization efficiency. Our commitment to enhancing ad efficiency is further demonstrated by the recent launch of our AI-driven [indiscernible] placement platform, by integrating resources from both our long-form and micro drama ecosystem. This platform imports both brands and the performance apps with sophisticated smart marketing solution. Moving on to technology and products. We continue to advance video production through industrialization enhancing cost efficiency and credit activity. For example, we are scaling up the reviews of digital assets in major original drama like [indiscernible]. We have likely reduced the production time and costs with our compromising quality. Moreover, our cutting-edge pack to speech TTS upping solutions designed to confirm emotion of [indiscernible] has already been applied to English factor for both long-form and micro dramas. On the user front, we are hiring AI. We will define the unmet experience in addition to a newly [indiscernible] AI. They also used other AI products to enhance user engagement on AI part chatbot, [indiscernible] launched last April features around 1,000 AI characters from our popular IPs and have engaged with users of over 100 million. Recently, we introduced the more AI assistants within the platform. The uses to discover content discuss plot and the control payback. Additionally, we launched our senior most feature tailored for motor users complementing on earlier call designed for younger audiences. Moving on to our business performance in regions outside of Midland China, we maintained strong growth momentum in the first quarter. We saw revenues increasing by over 30% year-over-year on the average daily number of subscribing members, reaching a new high. Moreover, we are thrilled to see dramas, gaining traction with our wider global audiences according to Google Trend Data worldwide search for the drama recently reached a 5-year high even surpassing first for Korean drama. Our original production has planned a key role in this growing international appeal with 4 of the top 10 overseas dramas in the past 6 months, coming from IT or modern drama, the best team that broadcasts on our international platform is publishing a new revenue benchmark for this general. Additionally, our original Chinese animation Superhero also achieved the highest single-day revenue for Chinese animation within the first week of over its release. The influence of our premium content from advertising revenues by 48% year-over-year on original time drama, gained as potential traction from brand advertisers, while our Chinese show become a farmer also to interest from overseas clients. Looking ahead, we are focused on expanding our investment in original production to create high-quality content tailored to international audiences while integrating micro dramas into our global portfolio. At the same time, we aim to deepen collaboration with local partners and further enhance our brand improvement across key markets. Last but not least, our team consistently pushed the [indiscernible] of business innovation as evidenced by our pursuit of new opportunities and exploration of untapped relevance. We are leveraging cutting edge digital technologies to [indiscernible] integrate of our IPs, extending their life cycle and unlocking greater commercial potential. We recently expanded our footprint to off-line experience park, the first IT land is set to open in Hangzhou [indiscernible] another with a second project underway in addition of VR immersive filters are expanding rapidly future popular IPs such as lower young, are now available in over 50 stores of nearly 30 cities. We believe this immersive entertainment insurances will deepen user engagement with our content and IPs. On the e-commerce front, the breadth of new content formats such as micro dramas, combined with construction the vertical content has used significant opportunity in the extra to on these opportunities, we have launched trail operations from IT, e-commerce by leveraging our rebound IT portfolio intensive artist resources and a high-quality member banks. We hold distinct advantage in this space this year. We are concentrating on building for foundation from content-driven e-commerce with a goal of driving accelerated growth and in the year ahead. In summary, as a vital entertainment industry continues to involve, we remain committed to investing in our content ecosystem and elevating the user experience. These strategic efforts will enable us to accelerate our content flywheel will strengthen resilience, lay a firm foundation for sustainable growth and deliver long-term value to our stakeholders. So let me part on Jun for our financial performance.

Thank you, Mr. Gong, and hello, everyone. Now let's take a look at the Q1 key numbers. In the first quarter, total revenues were RMB 7.2 billion, up 9% sequentially. Membership services revenue reached RMB 4.4 billion, up 7% sequentially. The increase was primarily driven by the strong performance of the long-form dramas. From advertising revenue decreased by 7% sequentially to RMB 1.3 billion, primarily due to macro headwinds and seasonality. Accounting distribution revenue reached RMB 628.7 million, up 55% sequentially driven by more common titles distributed during the quarter. Other revenues increased by 24% sequentially to RMB 830.9 million, primarily driven by the growth of certain business lines. Moving on to costs and expenses. Content cost was RMB 3.8 billion, up 10% sequentially, driven by higher number of premium dramas launched during the quarter. Total operating expenses were RMB 1.4 billion, up 8% sequentially, primarily driven by higher marketing spending. Turning to profit and cash flow. Our non-GAAP operating income was RMB 458.5 million, up 13% on a sequential basis. The non-GAAP operating margin was 6%. The net cash provided by operating activities totaled RMB 339 million, positive for 12 contractual quarters. As of the end of the first quarter, we had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in the prepayments and other assets the total of RMB 5.7 billion. In addition, the company had a loan of USD 522.5 million to PAG recorded under amounts due from other parties. When reviewing our financial performance, the result of our efforts to optimize the capital structure are very clear. Over the past 2 years, we have onetime the scope through a serious initiatives to lower our debt levels, optimize repayment schedules and make our debt restructure more manageable. Notably, the outstanding principal balance of our convertible bond has sharply declined, dropping from RMB 2.9 billion at the end of first quarter back in 2023 to RMB 1.17 billion this year. And of the current outstanding balance, the rate RMB 522.5 million, as we mentioned earlier, were resolved through equipment loan arrangements with the creditoa strthe. As we continue to optimize that debt structure, we have also achieved a substantial reduction in net interest expense, which has declined from RMB 223 million to RMB 155 million in the first quarter of this year decreased by over 30% year-over-year. For detailed financial performance and data, please refer to our press release on our IR website. Now we will open the floor for Q&A.

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

[Foreign Language] My question about micro dramas. Gong mentioned some operational updates on micro dramas in your prepared remarks. Could management elaborate a little more on the latest developments of micro dramas and outline the key focus points for its future development?

[Foreign Language]

[Interpreted] Our CEO, Mr. Gong is answering this question. First of all, the users have gradually developed the habit of watching micro dramas on IT. We now have over 15,000 micro dramas titles with free content and a member exclusive content [indiscernible]. Our two mobile apps have also developed very tenanted positioning. The main IT app focuses on members who are for free model, primarily using paid micro dramas, while the IT light app primarily focuses on free micro dramas supported by advertising.

[Foreign Language]

[Interpreted] This development, as I mentioned earlier, have chosen data growth in both user time spend and user base for micro dramas, while significantly enhancing the user stickiness. So when we compare the April to December of last year, the number of heavy micro dramas users are IT, which are users will spend 80% of their time watching micro drama has increased about [indiscernible] .

[Foreign Language]

[Interpreted] We just step into the micro drama field for not so long and then just started our original production and seeing some impressive proper, for example, a recently released original micro drama called China [indiscernible] , ranks first in IT's micro drama busing time for several competitive consecutive weeks and also successfully entered the EDX top 10 list, which is well renowned list in the micro drama field. So amount the acquired top-tier titles, for example, like My Sweet Home a and Please Come Into My Heart to worldwide each achieved revenue-sharing milestone of over RMB 1 million within a week and these progress reflecting the high user recognition and appreciation of high-property in micro dramas. I would like to share with everyone. For example, the content cost for each micro drama title on average cost less than RMB 1 million. And the top-tier titles usually will be less than RMB 2 million per title.

[Foreign Language]

[Interpreted] So as such, within the week, the revenue share dollar RMB reached 1 million is actually a very sizable income.

[Foreign Language]

[Interpreted] Going forward, there are 2 areas we're focusing on. First is to have more and better quality micro dramas and second, to invest more on user acquisition, user form.

[Foreign Language]

[Interpreted] In addition, we'll try more ways to monetize the growing traffic, for example, advertising and also commercial.

The next question is from Vicky Wei from Citi.

[Foreign Language] Will management share some color about the change of long-form video content strategy and the rationale behind it?

Thank you. I will invite our Chief Content Officer, Mr. Xiaohui, to answer this question.

[Foreign Language]

[Interpreted] First of all, long-form video are the cornerstone of IT's content ecosystem and our commitment to this remains unwavering.

[Foreign Language]

[Interpreted] Dramas are at the core of long-form videos. So to better cater to involving user preferences, our future drama strategy will focus on 2 key areas. First of all, releasing high-quality shorter episode premium dramas and second, producing more high-quality short dramas with each episode lasting 5 to 20 minutes.

[Foreign Language]

[Interpreted] Going forward, the total number of drama titles will increase, accompanied by enhanced content quality and greater diversity. This approach will not only improve the flexibility and stability of content settling, but will also reduce reliance on individual titles and effectively mitigate risk.

The next question is from Maggie Ye from CLSA.

[Foreign Language] Would just please share more details on the latest of our overseas business such as membership and content distribution as well? From a financial perspective, what is the current situation of the overseas business in terms of revenue and profit contribution? And how should we expect from -- what shall we expect from overseas in the next 1 to 3 years?

[Foreign Language]

[Interpreted] We started our overseas business in the second half of 2019. And after that, we experienced 3 years of COVID. So there were some difficulties in terms of getting head count and also trouble them between Mainland China and overseas. So the development were actually quite slower than expectation. But after COVID, in the recent 2 years, the business has been going through a very rapid development phase. But however, we do have some restrictions in terms of the financial resources, so there is some limitations to the development.

[Foreign Language]

[Interpreted] In addition to what I mentioned in the opening remarks that we experienced very rapid growth in terms of the annual revenue growth and also subscriber account, et cetera, so there are some very important progress we made very importantly that we kind of figure out the right content mix for each region, overseas. And also what can we do from the content mix to drive user growth and also to drive our revenue performance.

[Foreign Language]

[Interpreted] In addition to that, we also take out how we can really operate in each region, for example, how we can promote our content to acquire a better user growth and also in terms of the user growth, how we can improve that as well.

[Foreign Language]

[Interpreted] In terms of the content mix for our overseas business, the Chinese content actually accounts for about half of the content and the other half are a company.

[Foreign Language]

[Interpreted] Based on the data that we collected, the Chinese video content actually devalued that are increasing in the global, which is very beneficial to our overuse business growth.

[Foreign Language]

[Interpreted] Right now, currently, the revenue contribution from the overseas market is still at a relatively low percentage, but it also depends on the future investment into the overseas business limited to for example, the scale of our financial support and also the financing source. So these are the areas where we look out for the overseas business.

[Foreign Language]

[Interpreted] As our CFO just added to our CEO's comments. So we really took from the past few years are really valuable revenue growth as well as the content mix as well as the operating takeaways from each market, and these are the key takeaways in the past few years. Of course, these are under a very disciplined investment cycle that we did over the past few years as well. And from the management accounting perspective, the overseas business are profitable in the past couple of years. And in the future going forward, of course, maintaining our profitability, it's important. However, it doesn't have to be a meaningful amount. What we want is to invest, take that profit and invest into the business. Hopefully, it will drive greater growth opportunities in the future.

There are no further questions at this time. I'll now hand back to management for closing remarks.

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

Thank you.

Thank you.

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.]