Docoh
Loading...

NTES NetEase

Participants
Margaret Shi Investor Relations-Director
Charles Yang Chief Financial Officer
William Ding Chief Executive Officer
Jialong Shi Nomura
Alex Poon Morgan Stanley
Alicia Yap Citi
Alex Yao JPMorgan
Thomas Chong Jefferies
Kenneth Fong Credit Suisse
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day and welcome to the NetEase 2020 Fourth Quarter and Full Year’s Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Margaret Shi, IR Director of NetEase. Please go ahead, ma'am.

Margaret Shi

Thank you, operator. liability today the forward-looking to Reform company the Harbor discussion future relating qualify Act. the the Safe of by performance and from note will Securities statements contain to for US Please Private established Litigation as are intended risks Such certain guarantees subject not and assumptions are future performance uncertainties, statements are other and of to and factors.

on the Form this these beyond materially discussion. Hong could cause Kong the press of with Securities to differ from Some the mentioned law. that and release the does on Exchange Stock general risk Exchange. Annual of results XX-F The Commission, company filings actual undertake could business A control included update announcement including and to these discussion of required affect the company company's any in certain the risks and obligation today's as by those Report are filings website is in its and not factors forward-looking of results and financial the except information of NetEase’s

today's certain measures only. comparison purposes non-GAAP management discuss During for financial will call,

For financial measures release the please reconciliation and fourth a earnings XXXX results, year and quarter full see issued GAAP to earlier of definition news non-GAAP of financial today. non-GAAP a

being reminder, this a As conference recorded. is

addition, In ir.netease.com. conference NetEase an call of website webcast replay corporate and a will at investor this presentation on be available

behalf NetEase management turn Mr. prepared Mr. to is now of on senior from who over William Chief call I the our Yang, read Charles and Charles, on Chief Executive call William. the our today Officer; us Financial remarks Joining the will will Ding, Officer.

Charles Yang

everyone for thank and in participating Margaret you, today's you, call. Thank

user up of generated all solid and Each to based of key resilience We like would closed renminbi. segments in year. centered creation fourth are XXXX business the not year our for I many thrive. to billion percentages billion quarter standalone a time time set during the RMB survive, the XXXX and year-over-year. XX% for and of whole total together the net quarter was impressive content revenue on year-over-year businesses with around world. RMB XX.X and revenues sustainable begin, work remind challenging year showed everyone was delivered to but It experience. We growth a net fourth in XX% we XX.X that the a results Before up around and for the

life the has of Collins While past in word word the as of the many the declared believe word year. for Dictionary year, and the lockdown breakthrough also we career defined

care sustainable a proud the grateful generating quickly We weathered and and are to have stay for our these partners hurdles. respond help strong of are impacted both and community take act to responsibly the obstacles way for doing and our employees our supporting to of stakeholders. In company business growing the to meaningful initiatives we broader to overcome businesses safe each so, the to in our returns our

We Kong a milestones are our also the Stock completed as anniversary celebrated NASDAQ Exchange. XXXX on listing and proud XXth to our achieved we few Hong on in have

our after seen Hong delighted to reaction that closer listing dual from Kong, is especially, are roots. the to have market positive market, a We a in our

to Turning QX our results.

services the steady reaching with existing from continued our online titles. During of the year-over-year from online our XX.X billion. Net games popularity RMB quarter, performances our game revenues up business were XX%

continue the two record biggest series their Westward reached again of Westward Online II and FWJ Fantasy position as such Journey titles Journey in Westward XXXX, Online to players. resonate legacy titles. New China's with MMO as and further Our Journey Online revenues strengthening once

player position are one again highly respectively grossing games Invincible. more traction in bases, number On years mobile an games active chart. two and reached the iOS the very celebrations China's side and Other WWJ Life-After mobile impressive games during for core recent mobile on effective top launched once with example and number FWJ user also games enjoying

Following in XXXX increasing iOS grossing packs become of as stabilization a initial iconic again couple own of pan-entertainment with of our XXXX Based we an in bringing Celebrating popular flagship gameplay. its of reached launched on a chart. Invincible Life-After in position of once phase in Invincible SLG reaching XXXX. strategy Onmyoji, highly in creating its our the its paved since road title title for Life-After user avid its China's remained fifth a spend. smooth engagement XXXX IP-based number strong and has various expansion has series momentum innovative October new in top regained amid its right game Similarly, productions. players competitive anniversary year our growth launch five one themes titles, Gross billings IP marketing on steady

today, to been genre. in seamlessly growing have of mobile, Since simulation of the billion Onmyoji and As three launch IP. IP exceeds estimated games in card, we've To-date, Onmyoji iResearch. $XX spin-off value introduced blockbuster initial its XXXX, we according important this

new more games in two Project, have Onmyoji game; game. World, making We an the Project: simulation RPG Idol and spin-off another

make On continue solid the we front, overseas progress. to

consecutive a overall contribution revenue. games overseas of growing market proportion four from been years, our past the For has revenue continuously as

minds year the momentum us a between Out Titan. the drivers Life-After, and a key collaborations the allowed EVA to work with our in collaboration all in for this global XXXX. our We IP famous deeply had has more includes of closely series other with key Company Knives Attack such Pokémon IP industry. as established Knives which local of on Japan Identity creative in arena a of these and include such partners. and Initial success Some Out and titles hub Japan value and as V games record is

own which local well in console long-anticipated us complementary MMO including and been large launch. for a also own grossing a have strong adaptation as following exciting the talent and mobile year female with of XXXX more players. Sakura for chart number game quickly Japanese collaborating R&D launch. of with We our group of to games. mobile top-ranking title our Revelation ready game, iOS attracting on its focuses with and a next-generation both opened building fans capturing as its up China's active on super Revelation a version is titles mobile We players started brand-new younger became PC Studio this returning year

we the Additionally, iOS which brought for game soon market launch. new Links, after of local a mobile are competitive calling items Chinese popular The Catering a mode to Duel the including and of Yu-Gi-Oh! mobile in market on to car January, we of amongst new select preference design optimized China's nostalgia on fans. each quite Yu-Gi-Oh! its the proving range generation game a topped downloads chart the Awakened justice that work been hope life. has by poured anticipated game our Harry will Potter: this player community. Magic marks making long do players. We IP the that and gain into global blend wizardry another players experience game it our Featuring of amazing the learn hard magic this Hogwarts freshman. RPG partner, strategy become command. elements, wizard knowledge, will This spells, a a diversified

SLG uncharted the SLG and Rise Lagrange an space We Lord be themselves around in and strategic Rings: faithful will to War own explore players build and the War players is a characters the command their to titles, of of Infinite multilayered the Lagrange bringing will space-themed renditions to a also is trilogy. Lord completely can next-generation galaxy the crafts, and with involve Rise where The based our from globe. battles Set and the plan recreate the famous stations. a visually space fantasy locations of on masterpiece. stunning original Rings: iconic game development Infinite in The world

where in markets, from we see With our for extending China to potential games we overseas genre. success two these SLG look this thought-provoking forward to greater

Immortal our in In Pokémon license received exciting addition, Diablo approval of all we Breaker, had a World handful Quest. titles Ghost China. include, pipeline Legends, Chronicle, These of in other Nightmare Elysium and have

game in further broadening different the years. been have our of we few portfolio, enrich areas R&D sets our team, gradually past particularly we As our over skill

passion RPG and sophisticated across successes life our titles us and talent user-centric success believe R&D kinds genres and our to SLG both and on. MMORPG attract bring artistry our all world of in infrastructure, more drive from joining Our will beyond diverse We newer and even and for games great corporate so expanding overseas. China team's culture

online are ATD recipient we the This the XXXX We a in excited the in introducing Award, of one high drive people. our again China our year our the Practice once more XXXX proud year more In to invest innovative young bring are and relentless and In in empower to bring. for and a Excellence most business of titles globally. give to years were for the in games' coming project our industry. young To our strong development even look autonomy will games we of the further encourage recognized their ideas and mechanism and Despite to see talent the producers awards creativity users review fruition. to to base, reform leverage producers working what more initiation our to has to vision global more, in been industry. summary, forward We we are

our to business. on Turning education

Youdao has tremendous and of ever than quality China's influx growth ensure over online students an the across year. receive with the witnessed the more past Faced responsible need industry we the most best to of education possible. feel country, potential our effective teaching learning

content Reading for record enrollment were fourth economics Despite the our continues the each positive strategy Youdao's by ROI competition segment. year-over-year advertising that to acquisition impressive with quarter fourth the and The Check online billings XXX% up RMBXXX increase Dictionary our sure learning growth billings, we Learning achieved and Youdao We from gross year-over-year. positive Youdao conducted K-XX million exclusive increase progressive. total Pen RMB and user of healthy multiple Total to net with experiences. popular have us segment features competitive revenue investors. XXX% efficient. advertising significant December, support year-over-year and among options were we that edge advanced spend publishing in XXX,XXX. results our responsibly courses users, To our quarter. very proven our a growth reaching marketing be across generating which XXX is a mission learning instructors for billion, to now over needs over of tutors. and Youdao flow intense In operating devices RMB summer, in a X.X Interactive quality, comprises users houses, fresh Gross the unit learning new of million. lead XXX% more function in driven function. which XXX to for RMB servicing and of market-wide two component with to quarter the during million was closed fourth quarter X.X, quarter, RMB was increased X,XXX billion, In meet team They cooperation another cash way teaching AI Youdao's year authorities revenues the the made in another the our fourth of our technology gives driven. XXX% year-over-year. products and released and and X.X by an of net a the promoted and Tap new expanding continue we it paid ensure our Through from keeps from rapid Growth XXX expand quarter, to a representing K-XX make high-quality our with

Moving compelling smart services. education and through content continue in experiences offering. and in raised a through optimal students to sustainable Youdao our learning invest products XXXX, technology and vein February, we with and this realize In bring US$XXX offerings million follow-on will growth

music and give We music later, operation unique music Cloud learning segment China. determined since to highly our experience. edge our we intelligent to on unprecedented community years competitive understanding in in to are XXXX. our Music been an and has It On playlist Based product over promising extend we passion of of on and musicians them music young created users post-XXs our the this than Youdao's a experiences videos NetEase users independent our mode to for million our have capabilities or karaoke lovers, more app. capabilities, in version XX% XXX users now the elevated over express newly we to and themselves. new focused registered launched even functions personalized while podcasts younger. are offers in X.X, and In bringing XXX,XXX extends Seven

some the side, On content in we have changes industry. witnessed the important

time agreements direct a range wider benefits users Ghibli, the nonexclusive with framework, enriched give the Records content Studio with our music new UMG. among the during third Under In of soundtracks, we uploaded independent to our library can For tracks XXX and the Rock Most efforts approximately choices. We agreement music play and million and reached we billion. platform XXXX, we continued reaching time cultivate original in to others. agreement our invest year, BMG further and platform one of our were our the musicians. exceeded on tracks importantly, all total

independent empower platforms streaming music influential continue giving and musicians, audience create we most more music, songs. help China's for hit of one original to them As to tools the them

its this monetization, in effort In been have year. and continued up setting last journey since XXXX terms we of

saw membership, the during result, advertising. a strong As broadcasting, year forms; all three and growth live we in

in somewhat our further the business. structure, fixed we to continue we music cost up scale margins Given see improvements as

Yanxuan, established its have who among professionals at high-quality young For targeting our affordable up private we brand same for around we increasingly firmly position consumers. trendy, brand recognition and Centered at consumer have built the these notion, are our label time this target looking living.

developing are their We in personal that care, products, products and pet needs household revolve food around particularly supply.

products design year, RMBXXX launched furthers understanding capabilities and million. in with needs. popularity we the the our exceeding super-popular annual This During sales number our a of user of confidence product

in we able product and With an the right XXXX. were subscriptions number attract to offerings, increasing membership of content

and continued of XXXX. the standing is regained these online growth poised and faced our in the grateful we games, to are moving year. e-commerce focuses we With XXXX, are main in solid growth are have new despite shopping benefit achieved to we build customers. our in has online music this strong of on ground across loyal businesses experience online the a All-in-all education, the to difficulties continue to improving offer world One forward

NetEase Our products and focus content with elevating on creation core. our services at experiences remains users' and

users expand for concludes financial year We William's brief communities. and provide full continue reach will fourth generate This our comments. and our value our diversify of and XXXX now overview to innovate, results. to quarter a I investor

US$ or were We today's US$ RMBXX.X XX% encourage quarter Total a read details. year-over-year. the revenues to for today some financial net billion, XX.X Net on a our XX% the time RMBXX.X billion X year or were release through more press representing you year-over-year. presenting increase issued limited billion, fourth representing abbreviated earlier increase billion for I the highlights. be will Given for revenues call,

and year-over-year. services RMBXX.X were mobile XXXX fourth in net Journey of increases to Life-After up from the revenues for up net due fourth primarily revenues contribution as XX.X% Online quarter, billion, and fourth our PC The For game online from revenues XX% Westward Fantasy XXXX the from Journey XX% RMBXX.X the were Invincible quarter. such Westward quarter. games as for Sky, from games from billion HX, revenue accounted increased Net year-over-year as well approximately client the games in our online Fantasy

were to billion learning RMBX.X revenue by net XX% up RMBXX.X Net XXX% driven NetEase Youdao's Music the is from innovative for growth year-over-year. billion. contribution the RMBX.X increased others to both a RMBX.X fourth On the sales in PC year, mainly basis up due in businesses from full the courses billion fourth net Youdao and reach quarter to and revenues Yanxuan. and billion of devices. fast quarter reached year-over-year XXXX, live for quarterly up year-over-year This and Cloud NetEase streaming increased XXX% online intelligent of revenues XX%

was fourth the in gaming margin for services was margin XX.X%. profit breakdown GP gross online total follows: our quarter as with XX.X% Our the

the generally a and as mix The Gross Youdao same narrow XX.X% fourth for and as with based games. growth our compensation with self-developed PC Gross attributable XX.X% XX% fluctuation revenue continuous of compared stable in quarter last of improved others quarter for reminder, period compared and the profit XX.X% fourth was economies in structure. of to was As some businesses licensed XXXX. the mobile this on number the margin optimization year. significant to was for of well of primarily innovative margin scale faculty is

longer by compared the impact GP with live event XXXX. for CC in year-over-year, period covered While streaming a in annual from Music margin which the celebration Yanxuan of and decrease the NetEase XXXX have was offset Cloud the margins improved NetEase

and Additionally, of fluctuate margin also innovative mix based revenue businesses gross on others this line the item. of profit

total the For the revenue. fourth RMBX.X total of quarter operating were expenses XX% billion,

to revenue, Our marketing as due XX.X% net quarter. costs was down selling expenses, and marketing quarter-over-quarter from Youdao. was of The related a prior to in XX.X%, the lower decrease percentage mainly

the for booked X.X not impact of loss net US$XXX.X net the shareholders XXXX tax The fourth our loss, FX in to net applicable investment RMB quarter XX.X% loss them tax flow. On by for mainly with totaled year from RMB expenses from previous against regarding our of were quarter. of XX full in The compared million. fourth year a for RMB remain X and continued income exchange revenue marketing and a compared of future net billion net compared quarter, loss to included R&D the in year creation is basis, with Other XX.X% of selling full were RMB. for investment to obligations cash US in million in The total quarter Excluding X.X core continuing the billion million operations Non-GAAP RMB relatively growth. XXXX. development, a percentage loss R&D net loss We both with was represents Youdao, a of the percentage effective as the X.X as product most certain our up of XX.X%, the which attributable full stable. exchange of gain was which is year quarter. a exchange XXXX. each billion RMB and and depreciation were net due effective XXX which for revenue did estimates full quarter, XX.X% expenses net and benefits rate X% a to XXXX. content income net XXXX rate rate the X.X in it prior the investing our On RMB RMB nature XX.X% the and foreign billion basis, committed and a dollar's fourth or loss tax billion, the expenses were XX.X% to company foreign revenues

US$X.XX point would like of out Our Youdao, a having is ADS growth our rapid RMB much the for of were impact financials. XXXX. continuing with non-GAAP also fourth earnings operations on material to NetEase from the quarter or group per more X.XX diluted it We

revenue X.X net RMB loss million non-GAAP a non-GAAP net and billion of in For XXXX, billion loss and compared X.X net XXX with attributable billion generated RMB RMB X.X to of Youdao total revenue of RMB shareholders of Youdao's XXXX.

Our remains cash position strong.

of and our our RMB pleased report balance RMB ADS. the client with accordance US$X.XXX that equivalents billion per end non-current deposits of a XXX.X or of of As of as investment approved Directors of compared billion cash and current totaled dividend cash XX.X are share end we per US$X.XX XXXX, In with policy, our Board total XXXX. dividend short-term to and has

As program repurchase a up your every On billion. we announced would XX new open the one on months, for our billion, from as approval to for cost Q&A go US$X.X under a total you ordinary Thank October a XXXX our the the XXXX, ADS February every shares. shares share up now changed on ADS XXXX. reminder, current your the ADS for five like of billion for for approximately to to X US$ one ADS and questions. call December program shares this to attention. session. ordinary X, to ADS XX.X been beginning repurchased share of XX, our ratio program million of outstanding XX for repurchase We for of Board March next Operator to let's X under And US$X.X our finally, has ordinary XX

Operator

Instructions] first the Shi will of [Operator from from take Nomura. We line question our Jialong

line Please is proceed. open. Your

Jialong Shi

for management. evening, Thanks my Thanks. question. Good taking

NetEase revenue peers paid average is in We for media Chinese. third-party Android the revenue a [Foreign of much mobile app heard is stores? by game app Android this revenue negotiate my native's contributed the lower ask third-party from first gaming was of share How to channels? For trying part question revenue of by me one what third-party stores. share to Language] Let online version of charged

partners to far? so has Just you also with about how's channel this the did talk revenue wonder, if if NetEase your share. And started progress

William Ding

[Foreign Language]

Margaret Shi

favorable all XX%. few I'll our help has more as the high It's up FWJ. the obviously sharing a native probably China to sharing translating. of The around as true ratio such among market highest enjoys around revenue world, as games a XX% the

is now Apple our XX% in environment the partners is gaming And unsustainable to reasonable Chinese higher we more to in so than and to providers. international China very right much work the we'd with see, it's partners about like And the industry. international seeing our content we it's Apple think how charging the charging unhealthy probably create to with rate. providers healthy be see channel are we way because the with – be a more want And closely content to sync for a we peers with the

Charles Yang

question. which the channels of ballpark channel a channels very, supplement again our Jialong providers earlier a iOS generated percentage to in content roughly is contribution channel very from were China high revenues our game a coming half of is coming the of That's your through from our only iOS And ballpark on split roughly part one-third few Android split. the can from game split have remainder official such and channels. the On

Jialong Shi

Thanks the color. for

Margaret Shi

you. Thank

Charles Yang

the question, Operator, Okay. next please.

Operator

Okay.

We Please will The of open. line take is our next Alex question line from Stanley. Morgan from go Poon the ahead.

Alex Poon

overseas revenue to I'll because Language] target a a Back years growth three outside of -- COVID-XX [Foreign accelerated and revenue we in In the XX%. following has China the XXXX of lot. myself. five target especially had of translate

is hope I come to want thoughts What's be get And compared think – the And better then any to is secondly the do expected? around which to achieve China. and of -- – ROIs target. outside hardcore casual so, games growth you mix Would there if one market? versus it I some would earlier change the to than games revenue China this wondering target

Unidentified Company Representative

Language] year NetEase be for internationalization. an XXXX of [Foreign will definitely terms important in

those from number Lagrange to to Thank have Potter as we you are which Thank and We making games of results be year Alex. such a see expected the hope games. you. Infinite we're fruitful launched and during Harry

A –Charles Yang

second question introduction. overseas of question thinking on our of the strategy Alex second on your game part And of --

and want stronger but not betting think one introduced with genres or to R&D future on games more getting being different on capability different geographies users. genres, we we our of are see We two our to rather and diversified multiple

in games games Rings Infinite been like others. Out Porter as the Lord like SLG of RPG So more as casual we like domestic that successful Harry international can shooting Lagrange into the well The Knives we confident and success our is proven and which a leverage game game card Japan. are market has

what needs. our do to multiple to direction catering have is internationalization. So user multiple want to That I think we overall genres and multiple for is targeting geographies

Margaret Shi

Thank you Alex.

Next question.

Operator

will question the take Yap We our next from Alicia Citi. from line of

Alicia Yap

you. Hi, [Foreign Thank management streaming questions. could could driven taking the small to recently to My yeah, revise you, share is revenue Cloud initiative one investment further be for on XXXX behind? rationale for actually video you live And faster? the related a billion online be Thank even advertising driven subscription growing related push thank do content the overall initiative online the business you. the driver or NetEase media the expect or Music Language] And for questions management my or then this growth mainly by ramp to even question by the was advertising the revenue that revenue growth the growth?

William Ding

[Foreign Language]

Margaret Shi

Yes. I'll help translating.

going forms So be right. streaming. on Alicia, of helping is membership key for of musicians will to And the our for monetization continue music create music our original three independent own main focuses live you're creating and to about platforms. one content forward content, The advertising

one drivers that growth. in monetization memberships be to the sense of definitely So will our key

become consumers' have platforms habits years. listening music what watching, that video from the noticed in the what evolved is about that radio, In the have why short-form China terms extremely we've popular in industry of listening. noticed which But globally and is was recent the in to is is

existing So we video think when know-how. making to our about we short leverage want to mid-form

games, For example, in around to mid-form centered centered knowledge. interested we're short making or around video

[ph] within we called one So have NetEase Language]. we this Information World actually -- project have NetEase [Foreign

Chinese -- play X Year times we have on to during compared actually the previously. time increased our we we New the -- to X that realized noticed So videos

content hard we'll businesses, content music, -- you. around video medium creating centered et Thank continue key our on to short forward, is games, to going So work cetera. mid-form on

Alicia Yap

you. Thank

Margaret Shi

Alicia. you, Thank

Next question, please.

Operator

from line our of the question from take will JPMorgan. next Yao Alex We

Alex Yao

world? market question the my the the yourself well Do So you such as is gaming Language] domestic rest still to on of your industry? And PC resource in market. view for you. the want market, current outlook maintain allocate [Foreign just you the or in regarding How PC then as China you development, how PC in you think the new position portfolio? this gaming both Thank future strategically about R&D do do

William Ding

Language] [Foreign

Margaret Shi

our Yes. NetEase. both and mastermind [indiscernible] in The key outcome titles the behind -- many William from

that's this experience yes, probably do can games continue specifications the of because the that we'll we our PC user games much So, can something very deliver that gamers that PC and care to PC, that road. unique about have down

unique a going the around on to games existing PC standards. are the to [indiscernible]. game. So -- from probably launch it's And May, to very, such are going -- continue Overwatch, create PC going one of actually and a a to middle run we actually PC and hand And add to called called game made of in In StarCraft new Warcraft, also titles another to to going we competitive continue very name game World popular we'll PC self-developed PCs And and lots develop of by a our [indiscernible] [indiscernible] maintain the very which we'll creative game launch this our that we year to titles is to we're as wanted on too. has actually license is few. addition William Blizzard the

have games probably the we'll China. richest collection of in So PC

strategy. to PC Thank game an our important you. so continue will And part of be

Next please. question,

Operator

of the from our take question Thomas Jefferies. next will from Chong We line

line Your open. is

Thomas Chong

[Foreign you. development? my in-house live and accelerating streaming And the regulatory regulations. through taking regarding Can Language] And or Thanks management game the in games my for -- thoughts Will another then pace the the management first we use about their questions. about question is consider of question Thank online is operations. share the regarding overseas environment music? M&A follow-up

William Ding

Language] [Foreign

Margaret Shi

the about overseas of interested and these talked expansion, terms and in both games In we're self-developing through M&A. also

terms self-development it. can we of there's there's ways the of a things -- of number do In side, number

and IP use with our is famous example, invested very R&D actually good been On using success For in world. markets. side, global internal the we interested -- achieving the Potter, for in this in M&A to Harry are obviously We've collaborations things of through yes, develop around leveraging UK content active a -- greater very the you. own we've different Thank always partners globally.

Charles Yang

for on this music. in becoming Thomas entertainment. of the question we for and Well, asking regulatory game format and second general your more that more environment popular broadcasting see And is

even kind has So rumors and is Games. qualified It can are now Asian there of the a been people. it sports potentially young at for the e-sports that be Games for Olympic eligible

game game entertainment format CC an on it's streaming streaming is previously restricted -- becoming Music and live increasingly to just building quite healthy ears more is obviously listening, it content not So format entertainment of developed is as our sustainably. our the as William edge important. important growing popular and self-created been of of even content NetEase trendy and but is mentioned, of by enjoyment is it only unique also a enjoying music watching becoming and is live content.

and catering and it's So, But we in preferences progressive innovation on also a everything regulatory and the developing. behavior is think, the to encouraging general, in more -- takes of for user more way environment general.

we confident very are plans ourselves areas. of have and into investing these we our own So

Operator

next question our of Credit take will We Suisse. line Kenneth from the from Fong

Kenneth Fong

Diablo, of Language] IP Harry ready? or the key [Foreign approximately right want when about you. Pokémon like we ask be to as timing pace and is it there across Immortal, quarters spread of Potter? that I are I launch to translate Would launch they competition, including will just different as will the well few avoid the Thank myself.

Charles Yang

Kenneth. you, Thank

for games. just very now a PC lineups For XXXX, including Junxiong just exciting our of and about are we and excited first our pipeline, introduced couple all, of William confident

all On Harry Pokémon have Immortal have now global noticed, all a the you approvals. these are developed side, the with intention mobile Diablo, And received for launch. already games as all Porter, and license their

then approval designed of do that games we exact So we and point about high-quality I confident part, are for some have these particular If the now game these license producers the a that been next. the confidence, as this highly got as introduced launching all, these our anticipated obtained, not this China are developed as early are we will all timing for not the first whether longevity, potentially studios. given rush we year, to and might concerned half that approval gamer overly this have community the launches, the in long-anticipated more be year. or games that But to of the this many we now within has in month be think, game of our

Kenneth Fong

much. you, very Thank

Operator

or session. I constraint, conference Due questions-and-answer turn the back this any Shi, additional concludes remarks. to for to that time Margaret today's closing will At time,

Margaret Shi

again once you, joining for today. Thank us

any or a If please to directly TPG you free day. have feel contact Investor questions, you. further us great Thank Relations. Have

Charles Yang

everyone. you Thank

Operator

everyone That participation. concludes today's your Thank conference. for you