Wemade Co.,Ltd. (A112040) Earnings Call Transcript & Summary

[Interpreted] Good morning. This is [indiscernible] of the IR department at Wemade. Thank you for joining our 2021 third quarter joint earnings conference call of Wemade and Wemade Max. On today's call, we also have our CEO, Henry Chang, and Head of IR, Sang-Won Kim. We will start with opening remarks by CEO, Henry Chang, followed by a presentation on our third quarter results by Sang-Won Kim before taking your questions. The third quarter results presented today have not yet completed review by our external auditor and may change during the auditing process. We also remind you to refer to the disclaimer included in the presentation material posted on our website. Now CEO, Chang, will make a few opening remarks.

[Interpreted] Good morning. This is Henry Chang, CEO of Wemade. Thank you for joining our third quarter earnings conference call. During past calls, I already talked about Wemade's future, its visions and dreams. So today, I would like to start by talking about what Wemade is focusing at this moment. Wemade's #1 priority right now is developing WEMIX into an open platform for blockchain games and also a key currency for digital assets. I would like to explain what a WEMIX-based open platform would mean for developers, users and investors. First for game developers and game companies, we plan to distribute open SDKs so that they can easily incorporate WEMIX-based game tokens and NFTs into their games. iOS, Android, Steam, these are game distribution platforms, but WEMIX will become a different layer, a game economy platform and using our open SDK, all games will be able to join the WEMIX ecosystem. For game users, we will be providing an integrated exchange where users can trade and manage all WEMIX onboarded game coins and NFTs. Even now the coins and NFTs from the 4 games already released are being treated and managed through the WEMIX Wallet, but we are preparing the launch of 1 integrated exchange for all WEMIX onboarded game coins and NFTs. This integrated exchange or all game coins and NFTs is not only for game users but also investors who will use the WEMIX exchange as the main exchange for cryptocurrency investments in trading. The utility coins and NFTs from all of the different games will be the digital assets for investors to buy and trade and will act as the underlying asset for DeFi, which will become the mainstream in future finance. We already launched our well-made game Mir 4 on the WEMIX blockchain platform, and this has been a huge global success. Mir 4's momentum is not showing any signs of slowing down. By building the WEMIX platform, Wemade wants to make sure that Mir 4's unprecedented success does not end as an isolated event that Mir 4 may become -- maybe is currently only the first example yet, but we are focusing on soon making it the first of a long stream of success stories. It took WEMIX more than 3.5 years to get here, and our goal is to complete WEMIX as a platform by onboarding 100 games on WEMIX by end of next year. WEMIX will be functioning as the world's key currency for games and ready to grow together with a global game economy. WEMIX will become the core asset of the ecosystem and Wemade. I believe that blockchain game is based on the play-to-earn framework is the core of the metaverse and that, that will give digital currencies a genuine reason to exist that will finally dispel all the challenges and doubts we still face today. Reading the transformation going on in the industry and the world, drawing the right vision that captures this transformation and then delivering actual growth based on that vision, this is what Wemade is doing right now. And on behalf of everyone at Wemade, I truly appreciate your genuine interest and support for what we do.

[Interpreted] Good morning. This is Sang-Won Kim, Head of IR at Wemade. I would like to go over the major business results for third quarter and share some updates and plans for Q4. In Q4, the company started to see meaningful results in the blockchain and metaverse business area, which Wemade has been working on since 2018. Currently, we are concentrating our resources on building an ecosystem around a WEMIX-based blockchain game platform. While based on the success of Mir 4's launch in Korea, the Mir 4 global version officially started service on August 26, in around 170 countries and in 12 languages. The Mir 4 global version adopted a play-to-earn model that provides a new game experience to users based on the utility coin, DRACO and blockchain-based NFT technology. Mir 4 has become a huge global success. It exceeded 100 servers in the first month of service. And as of November 2, a total of 186 servers were in operation. October 27, it hit 1 million concurrent users. And also, we're preparing Mir 4, which is a new Wemade-developed game based on the Mir IP. It is in the final polishing stage for the scheduled official service in Korea during first quarter next year. WEMIX, which is our cryptocurrency that is already listed on Bithumb in 2020, listed on other virtual currency exchanges, including Gate.io, MEXC and Liquid Global this year and has plans of listing on other global exchanges. Wemade Max, which is a subsidiary that is consolidated on to our financials announced in September that it will become a global blockchain game developer and plans to add blockchain technology to all of the games in its pipeline. It is preparing launch of games such as Yulgang, Abyssrium and Dark Eden on the WEMIX platform. And on October 29, an MoU on game and blockchain business cooperation was signed with NHN. We plan to continuously develop and launch WEMIX-based games so that WEMIX becomes the key currency of a global metaverse/blockchain games. On October 25, we decided to merge Wemade Tree, which is our subsidiary established in 2018 and in charge of our blockchain-based services. With the merger, Wemade will be able to strengthen its own blockchain-based gaming service capabilities and expand its WEMIX platform business. Now that Mir 4 has broadened the market for the Mir IP globally and beyond just Korea and China, we will leverage this as an opportunity to become a major player in the global game market by leading innovation and setting new paradigms. Now I would like to go over some of the third quarter tentative consolidated results of Wemade. First -- third quarter revenue was KRW 63.3 billion, which is an 8% decrease Q-o-Q as revenue growth stabilized from Mir 4 Korea service and other existing games. However, this is a 167% increase Y-o-Y. Operating expense increased 9% Q-o-Q, reflecting increased costs tied to the Mir 4 global launch. As a result, in third quarter, operating profit was KRW 17.4 billion and net profit KRW 17.9 billion, both turning around from a loss-making quarter last year. Next are some KPIs for the WEMIX platform and Mir 4 given that these are relatively novel metaverse and blockchain game services, we will start sharing some key indicators to help your understanding. The WEMIX platform has achieved dramatic growth since its launch, the MAU of WEMIX DEX, which is our own centralized exchange, was 1% in January 2021 following its launch. But as of September, MAU is at 28,000. During the same period, monthly transaction volume increased from $7 in January to USD 29 million in September. Also currently, a total of 4 games, including Mir 4 Global are in service on the WEMIX platform with plans of adding around 100 games to the platform lineup by next year. Mir 4 Global was launched on August 26, and so it has been in service for 36 days during the third quarter. Its MAU was 600,000 in August, 2.4 million in September, and peak concurrent users was 120,000 in August, 370,000 in September, and peak-concurred users exceeded 1 million on October 27. Third quarter revenue from Mir 4 was a total of KRW 12.5 billion. Since its launch, Mir 4 Global, has been continuing to trend up in both traffic and revenue and it continues to show a rapid pace of growth even in the fourth quarter, so we expect to report even better results in the future. Next are some details about our third quarter revenue and operating expenses. In terms of the revenue breakdown by platform license revenue and by region, Mobile revenue was KRW 39 billion, which was a decrease Q-o-Q, reflecting the stabilizing of the Mir 4 Korea revenue growth. However, this is an increase of 348% year-over-year reflecting the revenue from our Mir 4 Global service. License revenue was KRW 18.5 billion, which is an 8% decrease Q-o-Q due to the decrease in revenue from existing license games, PC online game revenue in third quarter was KRW 3.7 billion, which is a decrease Q-o-Q due to drop in overseas game revenue. Third quarter WEMIX platform revenue was KRW 500 million, and this is the first quarter that we have separated the WEMIX platform revenue to account for the increase in the WEMIX DEX trading volume driven by the Mir 4 Global launch. In terms of the regional breakdown, domestic revenue was KRW 29.4 billion, which is a decrease Q-o-Q due to the stabilizing of the Mir 4 Korea service revenue and decrease in PC online game revenue. However, this is a 189% increase year-over-year. Overseas revenue was KRW 34 billion, which is a 39% Q-o-Q increase, including effects of the Mir 4 Global launch. Next about our operating expenses. Third quarter consolidated operating expense was KRW 45.9 billion, which is a 9% increase Q-o-Q, reflecting increase in advertisement and marketing as well as server-related telecommunication costs tied with the Mir 4 Global service. And that completes tentative results for Wemade. And now I would like to go over the tentative third quarter results of Wemade Max. Third quarter revenue of Wemade Max was KRW 7.6 billion, which is an 8% decrease Q-o-Q and a 20% decrease Y-o-Y, reflecting the factors, including decreased revenue from existing key mobile games. Operating expense of Wemade Max was KRW 8.1 billion, decreasing by 3% Q-o-Q and 26% Y-o-Y due to decrease in advertisement and marketing expenses. Despite the decrease in operating expenses, Wemade Max recorded an operating loss of KRW 500 million in third quarter due to a decline in revenue. On a net income basis, it recorded a net loss of KRW 400 million, which is a smaller net loss than what it saw in the second quarter, mainly due to increase in financial gains from FX translation gains. That was our overview of the tentative results of Wemade and Wemade Max for third quarter. And now we will take your questions.

[Interpreted] [Operator Instructions] The first question will be provided by Lee Moonjong from Shinhan Investment Corporation.

[Interpreted] I have 2 questions. First of all, can you share with us your revenue for October? If not, can you at least give us a sense of whether we can assume that your revenue is increasing in line with the growth in the PCU numbers or in terms of the number of servers that are increasing in service? Can you give us a sense of which indicator to use to project your revenue or get your revenue in October? And whether your revenue is indeed increasing in proportion to these indicators? Second question is about the revenue that you mentioned for the WEMIX platform. What exactly is accounted for as the revenue of the WEMIX platform? Is it the 0.9% commission or the fee that is being charged? If so, then I would assume that there will be some large price volatility that is built into that revenue. And also, would it be correct to assume that when you recognize revenue for the WEMIX platform, you're assuming that, that can be converted into cash or liquid? That would also need to -- then we need to assume that the price of DRACO or WEMIX would be staying at a certain level or above. Would it be correct for us to assume that it will? And do you believe that the revenue that you've been recognizing as the WEMIX platform revenue is indeed something that the company can cash?

[Interpreted] To answer your first question, I'm sure you will understand that we are not able to disclose, for example, the financial results that are happening after we close third quarter. But as we mentioned during the presentation, we are seeing continuous and rapid growth. So we're seeing rapid growth in traffic, in revenue as well as the WEMIX Wallet trading volume numbers, very rapid growth that would be correctly described as it's growing in multiples, not just percentages. Usually, typically Korean MMO RPGs, their growth, their revenue numbers usually is largest on the first day of launch, and the first month is the month that has the largest revenue and then it starts to decline from there. But Mir 4 Global has shown the opposite trend. The first day revenue and the first month revenue up till now has been the lowest. The first day was one of the lowest, first month was the lowest up till now. And so we -- and the growth trend does not seem to show any signs of slowing down. So even for us, it's difficult to predict how long this momentum will go on. The second question about what is -- consists -- what the platform revenue consists of. There's 3 main pieces. The first thing what you mentioned, the 0.9% fee that we charge when there is a conversion of DRACO and other gaming points to WEMIX. And the second element of platform revenue will be the commission that we charge on the trading of NFTs. We have not started NFT trading for Mir 4 Global yet, but we plan to do that. And the fee that we charge on the NFT trading will be set at a higher level than the coin fee rates. And the third would be when the DRACOs are converted back into Darksteel, for example, in the case of Mir 4. When that happens, we also would charge a certain level of fees on that transaction that would also be higher than the other fee rates. Of course, the fees and commissions are collected in the form of WEMIX or the game coins. And so they are not collected in Korean won, for example. But we do have the basis to recognize that as revenue of the WEMIX platform. We have a policy that if we do cash convert, WEMIX or the DRACOs, for example, we would do it in a manner that does not affect the market prices. We have not yet ever converted DRACO into coin -- cash, but for WEMIX, I think the community -- the WEMIX community would already know that the company has converted small amounts of WEMIX to cash as a way of investing into the WEMIX community.

[Interpreted] The following question will be presented by Mike Hong from CGS-CIMB.

[Interpreted] I've a question about the efficiency of the WEMIX as a blockchain platform. Can you, for example, compare the WEMIX platform to the Ethereum platform, for example, in terms of efficiencies? If someone wants to develop based on WEMIX versus Ethereum, how efficient would that be, for example, in terms of saving EPS and other areas?

[Interpreted] There are numerous coins out there, and I believe only the coins that can pass the utility test will survive. Some examples would be Bitcoin, which has definitely taken place as a means of storing in value. Ethereum is more characterized as being a general technical platform. And Ripple has carved out its own space in terms of remittances. We think what overall WEMIX can contribute is as the gaming blockchain and also as a gaming key currency. And each coin has its own identity and will be continuing to evolve accordingly. First of all, it's an honor to be just compared to Ethereum, thank you very much for comparing us to Ethereum, but I think Ethereum because it is a general platform also takes some penalties because it is general, for example, in terms of processing speed or [indiscernible] costs. And so compared to that, we need to be -- WEMIX need to be more of a real-time chain and therefore, we have a different team structure and architecture. And so there would be advantages that WEMIX has versus Ethereum. So it's not an apple-to-apple comparison, and we think that because other currencies are not fit to be a game blockchain or a game digital currency, we needed to develop WEMIX.

[Interpreted] The following question will be presented by [indiscernible] from Securities.

[Interpreted] I have 2 questions. First of all, you said you have plans of distributing SDK for the developers. Can you give us an update on where you stand in the SDK development? And also, how much of a lock-in effect do you think this SDK will have in the global market? Second question is to just go back to the Mir 4 as well as other games you're preparing. What are your approach in terms of the Chinese business of Mir 4 and other games?

[Interpreted] SDK developer development kit may vary in terms of the level of sophistication. And right now, our SDK would probably not be described as one of the more advanced SDKs. And SDKs, which is basically a software that connects software to, for example, other software exchanges or cryptocurrencies can never be perfect on version 1.0 because the developers, even though they try to, cannot think of all of the possible scenarios or cases. And therefore, SDKs are one of the typical examples of going through a very strong and powerful learning curve once it is launched. And I think that's well shown by the example of Android and Steam when it was first released versus what it provides now. And one of the important meanings of launching 100 games onto our platform until end of next year is that by doing that, our SDK also will be continuously improved in advance, so that our eventual goal is to have our SDK well made enough so that game developers are able to use our SDK to -- just by referring to the open guide without receiving direct technical support from us. And these developers, if they're developing a mobile game do choose Google Play. If it's a PC game, they do choose Steam despite the fee that they need to pay because those are the places where there are the customers, the users and because Google Play or Steam does provide the technical support they need. To go back to your question of how much of a lock-in effect our SDK will have, I think that will be determined by the number of users, the number of -- the amount of transaction volume our wallet is generating and also the technical support we're ready to prepare -- provide when we open it as an open platform at the end of next year. Because the core competence of the game developers is creating a competitive game that users want to play, it's -- game developers, their core competency is not in attracting users or developing blockchains or trading blockchains. And so if we are able to deliver an SDK that meets our standards and satisfy our standards, I think that there's no reason why either small or large game companies will not choose us. Your second question was about our Chinese business. Looking into the Chinese market currently, I think that there is this huge macro movement that's going on that is sort of shadowing -- overshadowing all of the micro movement. Given there's huge macro movements in all parts of society, crackdown going on, it is not a favorable environment to launch something new or try something new. There is the Chinese Communist Party convention coming up next year in October. The Chinese government has even announced that things will stay as it is at least until that time. And so I think that once that event is passed, we may be able to seek new opportunities in China, which still is the largest game market in the world.

[Interpreted] The following question will be presented by [indiscernible] Asset Management.

[Interpreted] I have one question about what Wemade has in mind when it says DeFi. What do you think will be DeFi?

[Interpreted] Well, the blockchains, metaverse, cryptocurrencies, these are relatively new concepts. But even in that side of the sphere, DeFi seems to be the relatively novel concept. And so even at this point, it's not easy to try to even define what DeFi is or would be. Way of defining it will be to start in the real economy. As you know, in the real economy, finance is basically the concept of using different parts of the real economy and creating that into a financial product. The digital version of that would be DeFi. It would use various digital assets, including cryptocurrencies, to create financial products. That is my understanding of what DeFi is. It's similar to how currently we have all of these different areas of finance and financial products, including banks, security companies, ETFs and futures and options. And I believe that in DeFi, all of that would also exist except that the underlying asset would be digital assets instead of the real economy assets that we're seeing right now. Also because this is going to happen in the digital sphere, there will be a greater breadth of liberty and freedom given. And therefore, that would actually open the room to create new DeFi financial products that we have not been able to imagine yet. Because there will be game coin exchanges where thousands or 10 thousands of different game coins are going to be traded and also NFT exchanges where also thousands of NFTs will be traded, those will be a great underlying asset for DeFi. But that is just a thought. A thought does not get you anywhere. So what we will be doing is our plan is to actually launch a version 1.0 of our DeFi within this year and then start from there, continue to learn and evolve.

[Interpreted] The following question will be presented by Stanley Yang from JPMorgan.

[Interpreted] I have a question about what we heard in the news yesterday that SoftBank invested around $100 billion plus into Sandbox, which was described as a Hong Kong-based NFT game platform. It also has its coin that is also being traded at large volumes. Can -- should we understand Sandbox as being a competitor to Wemade, which is trying to create WEMIX a blockchain-based game platform. Would you consider Sandbox being a competitor? Would that be the way we understand this? Or in that context, what other competing platforms would we need to compete against as it tries to achieve its vision. And to just enlarge that question a bit more. In terms of the global strategy for Wemade and the WEMIX platform, in terms of a global strategy, what are your thoughts, for example, of aligning with metaverse or social metaverse-related services such as Dataverse or Facebook or even Sandbox and other similar platforms? Do you see a need for M&A or strategic alliances with these other platforms? Or what are your thoughts?

[Interpreted] First of all, regarding our initial goal of making WEMIX into the gaming blockchain and also making it into the key gaming currency, we already have an established execution strategy of how we plan to get there. That said, because this is still in the very early stage, and there are uncertainties going to come down that road, we are still, on the other hand, open minded towards investments or alliances to address the other parts of this system that goes beyond our initial goal. So first of all, in terms of our global strategy going forward, we're still open in terms of what kind of company, what kind of sector, what kind of blockchain and also the method of that, whether it's an investment, M&A or an alliance. And I think for a good example showing us -- showing how open-minded regarding investments is that you would know that one of the major investors into Sandbox is Hashed, which is one of the leading blockchain venture capital funds. And actually, we are planning to participate as an LP in one of their new funds. I believe that there are different ways of approaching blockchain games and metaverse and all of them are meaningful. So there are different approaches. Sandbox's approach is different from us in that Sandbox started more from the digital asset digital currency side and then added a game element to it, whereas we started from the game side and have added a blockchain element to it. Another difference is that whereas Sandbox is one game, we are trying to create not one game but a platform for blockchain games. To compare to Meta formally known as Facebook, I think Facebook or Meta's approach is focusing more on the interface, the VR aspect of it, whereas we are focusing more on the experience that lies beyond that VR interface. I already think that games already today are providing experiences that can be described as a metaverse. And of course, with the further development of the technology, the VR technology, games that incorporate these advanced technologies, the VR technologies would also be launched.

[Interpreted] The following question will be presented by Ahn Jae-min from NH Investment & Securities.

[Interpreted] First of all, as analyst covering the game sector, it's great to see how Mir 4 is becoming a huge success and is actually leading this new market. I also think that there are many companies that are watching Wemade success and preparing to enter the same space. So in that context, can you explain to us how you are differentiated versus these other potential entrants? And how you plan to compete once this playing field becomes more crowded? You did mention the distribution of open SDKs and platform, but what -- can you give us a bit more detail of how you plan to compete against similar offerings? Second question is about a bit more detail on what you will be focusing on going forward? Games do, at the end of the day, boil down to fun and playability. Of course, there will be game companies that are interested in joining because WEMIX as an NFT would have that much more influence. But also, there will be the approach starting from the game and fun aspect of games and then expanding to NFT. So going forward, which element are you going to be focusing on?

[Interpreted] I said that it took us 3.5 years to get here. And during that 3.5 years, we've been working pretty hard. I also know that there is a lot more way to cover going forward. And actually, at this point, we do not see what the endpoint is. When one company succeeds, other companies naturally benchmark that example and try to follow. And I think that is what is happening now. And given the fact that we've already had a head start, we've turned a very important turning point. I think the decisive factor in our competitiveness versus potential competitors is not the condition of the competitors that have not even started that are still standing on the starting line, but us to focus on delivering our goal of launching 100 games on our platform until end of next year and also successfully offering an open SDK to the market. If we define ourselves as a game company, then for the sake of our own games, we would probably need to not share the technology that we have, for example, that we've learned and used in Mir 4. But we do not consider ourselves as just a game company. We are a platform company. And therefore, we are getting a lot of, for example, inquiries and contacts from other companies that have been benchmarking us. And we are actively sharing our know-how with these companies so that we would be able to grow together. So we do not consider these game companies to be our competitors. Actually, we think that they will be a part of our journey of growth. Well, I did mention before that in terms of blockchain games, there's 2 main approaches. One would be to start from crypto such as Sandbox or Xfinity, but to add game elements to make that crypto trading a fun and more interesting. What we have been doing is we started from a game, a serious game rather than a fun game, and have incorporated blockchain elements into it. And between these 2 approaches you sort of hit the point by asking which one do you think would -- which we would focus on. And actually, of course, we're focusing on the latter. And I believe the latter is a better approach. And that was actually a deliberate choice upon us to choose to start from a game and then to add a blockchain element to it. Because fundamentally, I believe if you do something just for the sake of earning money, it becomes -- it no longer becomes fun. Even if there are fun elements, it's just not sustainable. But we think that if there is a fundamental core playability to it, and it also happens to deliver earning opportunities. That is a sustainable model to go forward, and that is exactly what we have done with the Mir 4 Global service. Right now, people are using the word play to earn. And I also do use it because that is the more used version. But if I was given an opportunity to coin that phrase, I would actually say it's play and earn, and that's exactly what Mir 4 is doing.

[Interpreted] The following question will be presented by [indiscernible] Securities.

[Interpreted] I have 3 questions. First of all, you mentioned you have goals of involving 100 games until end of next year. I would assume that in order to get there, you'll need to do alliances with other companies. In terms of revenue recognition, do we even share -- is there a revenue-sharing arrangement in terms of utility coins of these other games that will be traded on our platform? Second question is about -- we've really only talked about games today, but -- in terms of the NFT, there's also a lot of nongame NFT trading. So can you give us a bit more detail or thoughts about the company's plans of expanding in the nongame NFT side. Third question is about potential of becoming a PC game platform given that Steam has now banned blockchain-based games from its platform. Would this be an opportunity for the company to think of becoming a PC game platform, for example, by distributing a client?

[Interpreted] To answer your first question, yes, we do get a share of that coin. And also about the NFT question, we are planning to go and continue to do trial and error processes with the NFT even in the nongame side. When I look at the NFT market right now, it's mainly trading in collectibles, for example, artwork, which I believe is using only a very small part of the potential of the NFT technology. But on the other hand, we really don't have any specific ideas of a new model that would leverage the full potential of the NFT technology. And when I talk to other companies, I don't really see a very attractive new model idea either. But we -- I do believe that, that time will come at some point. And therefore, the company will continue to do its work in the trial and error process regarding the NFT side. Also, the company has already launched the WEMIX Auction since last June. And so there is a weekly auction going on, on WEMIX Auction. Regarding the third question, it was around the second or third week from our launch -- after our launch that Steam notified us of their policy. And so the version that is currently offered on Steam does not have the blockchain function. And when we look at our Steam traffic, even though it does not account for a large share of our overall user base, the traffic actually coming from Steam is continuing to grow. And I think this once again shows us that for a successful blockchain game, the fundamental gameability is very important. And of course, our SDK will have a PC version support because from our perspective whether it's Steam, iOS or Android, those are distribution layers. And our platform will be on a different layer and therefore, we will maintain compatibility with all of these other distribution layers.

[Interpreted] The following question will be presented by [indiscernible] from DS Asset Management.

[Interpreted] I have a question about the -- well, from the game companies perspective that would offer their games on your platform, I think one of the value that they would see in this platform is that they will be able to avoid the in-app commissions that pay to the platform if, for example, users instead of doing in-app payments buy the coin and convert that to, for example, Darksteel -- convert the DRACO into Darksteel. However, when I actually look at, for example, the WEMIX Wallet trading volumes, also the DRACO and WEMIX pricing, the WEMIX Wallet trading volume isn't very large. And also the price of DRACO and WEMIX is sort of drawing a downward trend. And so from the game company's perspective, one of the advantages of joining the platform would very much depend on the accessibility of the WEMIX Wallet and also the stability of DRACO's value. And so how is the company planning to address this issue?

[Interpreted] Actually, as I mentioned, we are not competing against iOS, Android or Steam, which are the distribution platforms. We actually are cooperating as a different layer of platform. And we are not into compete against either the game distribution or providing game payment services. Actually, the better way of understanding our role is to -- we are providing the game economy platform that provides game companies another dimension of generating earnings. To answer your second question, which was about the accessibility and the value of WEMIX. It is a digital currency and we think that, therefore, its value is dependent on how many exchanges it is listed on. It is already listed on some of the top 10 exchanges. We are continuing to talk with other exchanges that have large user and transaction volumes so that users would have easier accessibility to WEMIX. Now on the DRACO's side, DRACO being a game utility coin, I think that it's only natural for the value, the price of DRACO to move depending on the gain performance. That, I think, is a natural part of all game coins that, that value will be dependent on each game's performance. Now Wemade as a platform company does not need to get involved in the value of DRACO or other utility -- game utility coins. But if we switch hats and become the publisher and the developer of Mir 4, the game, then of course, we need to find ways of supporting that value by making more opportunities within the game to use DRACO or Blacksteel (sic) [ Darksteel. ] For example, yesterday, we announced a seeking DeFi service called [ DFP. ] Also, you've mentioned that you see DRACO prices continuing to slightly go down, and that is correct when you price DRACO in WEMIX basis. But however, DRACO in U.S. dollar or Korean won terms have remained quite stable and have been actually going up slightly.

[Interpreted] The following question will be presented by [indiscernible] from DS Asset Management.

[Interpreted] I have 2 questions. It seems that you currently recognized or classify the Mir 4 Global service revenue under your mobile revenue. But can you give us a breakdown of the actual Mir 4 users between mobile and the PC launcher? I understand that the PC launcher version has a lower fee, and therefore, I assume would have better margins. Can you give us at least -- if not the actual margin difference, at least some feel of how much difference there is in your margins or profitability between the mobile users and PC launcher users of Mir 4 Global service? Second question is, do you have a feel of how -- what percentage of the players are bots. Third question is, if future games are released, would they also have coins that are sort of sub or under the umbrella of WEMIX? Or would you also consider games that are based on existing coins out there?

[Interpreted] To answer your first question, actually, I don't have that number with me right now. I don't remember the number. One reason is because actually that is not the top key indicator that we're managing against because right now, our top indicator that we're managing is the total amount of traffic we're generating whether it's coming from mobile or PC. And also, we're currently in an operation mode where we're, for example, not paying too much attention to the fact that the PC side has lower fees and therefore, would give us higher margins. But that said, definitely, we have far more mobile users versus PC users, which I think is just reflective of the fact that mobile accessibility has become that much more wider. And I think our IR team will be able to follow up on the details of that breakdown. In terms of fees, the PC side does have about 1/3 the fee of the mobile. About bots, that is actually an endless war. We just need to fight. We do not have an exact sense of who -- which of the players are the bots. If we did know then they won't be there. We would have taken care of that already. We have actually continue -- we continue to build in devices to push out the bots from playing. And when we do introduce these new devices, we do see a temporary drop in traffic. Up till now, we have deleted around 3 million accounts, and our goal is to eradicate bots from the game. Regarding the game points or sub coins, I do think that the default is that each game should have its own coin which will give that mechanism of the coin value being determined by the performance of that game. Because I think there are other pieces where that default scenario may not apply, for example, if it's a game company or developer that actually launches a series of games that relatively have shorter life span then having a game coin dedicated to each of the short-lived games may not be the best approach. The game developer may actually want to have 1 coin that would apply to all of, for example, their casual games or all of their series. And that would actually give users a reason to start the first game and get the game coins. And so I think that there are other cases, for example, when there's series of casual games or MMORPG games where a game developer may want to have the same coin being used across a different number of games. And so regarding the sub coin strategy, we are open to flexibly respond depending on the situation and the game.

[Interpreted] We will end the Q&A session here. If you have any remaining questions, please forward them to our IR team and CEO Chang will make final comments before we end the call.

[Interpreted] Blockchain games itself is a new category. And because of that, Wemade, the company as well as all of the members, including myself, are now finding ourselves doing things we've never done before. For example, today, I think I've never actually had a conference call where we had so many participants and so many questions. And I promise you that we will do our best to not only meet but exceed the expectations of the market. Thank you very much.

[Interpreted] And that ends the third quarter conference call of Wemade and Wemade Max. Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]