On March 25th, Chizi City Technology (09911.HK), an Internet company focused on strangers' social business, held an online results conference for 2020, announcing the company's 2020 performance, operation status, and 2021 development strategy and performance targets. Liu Chunhe, chairman and CEO of Chizi City Technology, Li Ping, group president, Song Pengliang, company secretary, he Wei, vice president of marketing and public relations, and other company management attended.

At the press conference, Liu Chunhe introduced the specific situation of the company to the company's shareholders, investors and the media. In the subsequent question and answer session, the management of the company jointly answered questions from all parties.

The main contents are as follows:

First, focus on audio and video socializing to catch young people all over the world

Chizi City Science and Technology is China's leading Internet sea company. At the business level, the company focuses on the most valuable and ecological track--Social interactionIn terms of product form, the company focuses on advanced information carriers and interactive forms--Audio and videoIn terms of user groups, the company continues to attract people who have a say in the new consumer era--Young people around the world。

In the course of going out to sea over the years, Chizi City has accumulated more than1.2 billion global usersHas won the title of top developer awarded by Google, Fast Company 50 and other awards On December 31, 2019, the company was listed in Hong Kong.The first listed "Social out to Sea" companyShortly after listing, the company was officially included in the FTSE Russell microdisk index. Since the beginning of 2021, 09911.HK has been among the top 10 technology stocks of Hong Kong's main board listed companies, up more than 150%.

Relying on the advantages of China's Internet industry, Chizi City Science and Technology is ploughing the global market. In the future, the company hopes to gradually develop intoThe largest Internet company in China. The company is confident of achieving this goal:

In terms of objective conditions, first of all,There is still a lot of room for growth in overseas traffic.. Over the past year, the number of global social media users has grown by more than 13%, with nearly 1 billion new users. On average, more than 1.3 million new users joined social media every day in 2020, equivalent to 15.5 new users per second. At present, the total number of global users has reached more than 4 billion, but there is still a lot of room for overseas user growth.

EspeciallyThere is a huge dividend for the growth of the world's young population.. Global Gen Z users spend an average of 2 hours and 41 minutes a day on social entertainment apps. Moreover, the number of users of Generation Z is still growing at a high speed.

In addition, users around the worldThe demand for social entertainment is very strong.. The average amount of time people spend using social media each day has increased by more than half an hour over the past five years. In addition, the epidemic has further promoted the shift of people's social and entertainment life from offline to online.

Last,Audio and video is becoming the most popular scene for users.. Audio and video products have been used for a long time, strong interaction, a variety of forms, and more diverse ways of commercial realization. According to App Annie, audio and video are the core of eight of the top 10 mobile apps by revenue in the world in 2020. The audio and video industry is ushering in an explosion, and a new Internet era is coming.

From the perspective of Chizi City Technology itself, since its establishment, the company has10 years of experience at sea, accumulated more than 1.2 billion global traffic. The flow ecology also provides the company with a continuous data base, which can be built and continuously improved.Zhongtai system and AI engineThe efficiency of R & D, promotion and operation of Chizi City science and technology has been continuously improved. In addition, throughDeep ploughing localized operationThe company's global social landscape continues to expand, which is also the core competitive advantage of Chizi City Technology.

Second, expand the global social landscape and create diversified products

Focus on Science and Technology in Chizi CityOpen social trackTo create a variety of audio and video social products. At present, the core products include: video version of Tinder--Yiyo, social products that match through video; open social platform-MICO, which helps users make friends around the world; and voice social platform-YoHo, which takes voice as the core social way. At the same time, the company is also creating more forms of products to meet the diversified needs of global users.

Yiyo is a video social platform.There are social scenes such as video matching and one-on-one video chat. The product quickly hit the market in 2020, with more than 50 million downloads in its nine months of launch. It has now entered the top 10 of Google Play social app downloads in 10 countries and regions, and the top 10 of Google Play social app bestsellers in 14 countries and regions.

MICO is an open social platform.Launched in 2014, through years of accumulation has been firmly at the top of a number of markets. At present, MICO ranks first in the downloading list of App Store social applications in 71 countries and regions in the world, and the top 10 in the best-selling list of App Store social applications in 92 countries and regions. Google Play social applications in 90 countries and regions are among the top 10 in the best-selling list. Last year, MICO made a breakthrough in developed markets, entering the top 20 of social apps in the United States, and recently in the top 10 of social apps in Canada, Portugal, Denmark and other European and American countries.

YoHo is a voice social platform launched at the end of 2018.The core social scene is the voice chat room. The product became the local top 2 voice social platform in the Middle East in 2020, making it one of the top 10 best-selling apps in the six Gulf countries.

At present, Chizi City Science and TechnologyThe global social business map has begun to take shape.. The global market expansion path for the company's social business is as follows:

In 2016, the company's social products cut intoMiddle East and Southeast AsiaThese two emerging markets; 2018, expandIndia and PakistanThe reason why this emerging market enters from these areas is that it has a large user base, a low median age and a large number of young users, making it an ideal market for online social socialization. since the end of 2019, the company has entered developed markets.North AmericaBusiness in the region has achieved breakthrough growth; starting from the second half of 2020, it will begin to expand.Japan and South Korea, Europe, South AmericaTo extend to more markets

At the end of 2020, the company's social products were downloaded 183 million times, an increase of about 20.4% from the end of the third quarter of 2020.The average number of monthly active users of the company's social products reached about 11.36 million in 2020.

Specifically, the growth of monthly active users of Chizicheng's tech social business in 2020 is as follows: the average number of monthly active users in Chizi City was 8.9 million in the first half of the year, 12.04 million in the third quarter and 13.18 million in the fourth quarter.

Third, focus on the "flow +" strategy to promote diversified businesses such as games.

Chizi City Science and Technology continues to promote the "flow +" strategy, with social interaction as the core of "flow +". At the same time,Focus on the development of "traffic + games" business。

The game business helps the company to obtain stable and adequate cash flow. Some of the IAA games developed by the company have become popular as soon as they are launched, promoting the rapid growth of the company's advertising revenue. At present, Chizi City Science and Technology is making steady efforts in IAP medium and heavy games, opening up more room for the growth of the company's internal purchase revenue.

Chizi City Technology's development strategy in the game business is"self-research + issuance + investment". Recently, the company invested in fantasy dream, a well-known mobile game research and development company. The founder of Fantasy Dream is Li Li, the former product director of the well-known game company play Crab Technology, who led a team to create a national-level game "Big Master" with hundreds of millions of months of running water.

SLG game is a strong category of Chinese games going out to sea, accounting for the first among the top 100 overseas games in terms of revenue, as high as 37.18%. The company is currently concentrating its resources on developing a SLG product.Chizi City Science and Technology's investment will be used to support the research and development of the project.. The game is expected to be launched in 2021, targeting high-value areas such as North America.

At the end of 2020, Chizi City science and technology game products were downloaded a total of 152 million times.The average number of monthly active users of game applications is about 11.51 million.。

Fourth, "technology + operation" double flywheels form a closed loop to drive growth

The continued growth of Chizi City technology is due to the company.The double-layer growth flywheel of "technology + operation" rotates together.To provide users with a better product experience and form a larger-scale traffic ecology.

Specifically,"Technical flywheel" driven by Zhongtai system and AI engine，和"operating flywheel" driven by localized operationCombined, double-layer flywheel rolling at the same time, the combination of internal and external, to promote the sustained and rapid growth of the company.

The bottom drive of the technical flywheel is from Chizi City Science and Technology.Zhongtai system and AI engineThrough the upgrading and evolution of the underlying technology, the matching efficiency of products is improved, resulting in a better user experience, improved user duration and stickiness, and a natural growth effect; as a result, the user scale, that is, traffic ecology, is expanded to provide companies with richer user behavior data, which can feed the AI engine and the middle platform system. As a result, the internal closed loop is formed and the technical flywheel can rotate.

The drive of operating flywheel comes from what the company has been practicing all the time.Deep localization operation. Chizi City Science and Technology has accumulated rich experience in overseas localization operation, has strong local resources and expansion ability, and continuously produces rich and high-quality "PGC=UGC" content through in-depth localization operation, thus enhancing user experience and bringing larger flow ecology, and the company can go deeper into landing team and expand resources. As a result, the outer closed loop is formed and the operating flywheel can rotate.

The growth of flywheels brings higher efficiency and commercial liquidity, driving the company's sustained and rapid growth.

V. 2021 goal: doubling the investment in research and development and doubling the number of monthly active users of the product

In 2021, the focus of science and technology development in Chizi City is to expand the scale of social ecology.The goal is to double the overall number of monthly active users。

The company will work towards this goal from the following aspects:

In terms of products, the company will develop diversified and vertical social products to occupy multi-tier market segments to attract the diversified needs of users in different countries and groups around the world. The company will continue to increase its research and development efforts in 2021.Double the R & D investment plan。

On the market side, Chizi City Technology has occupied a considerable share in emerging markets, and will continue to grow in emerging markets. At the same time, the company is also actively expanding developed markets, which will become the focus of 2021.

In terms of operation, the company will further deepen the localization operation. In the past few years, Chizi City Science and Technology has created a "sea iron army", which is one of the company's core competitiveness, which will continue to strengthen this competitive barrier in the future.

In terms of commercialization, the company will continue to make efficient cash with the help of "audio and video + high-quality content". At present, the application of domestic purchase has become the main revenue mode of the company, and the proportion of domestic purchase revenue may continue to increase in the future.

In addition, Chizi City Science and Technology will continue to explore the "flow +" business, dynamically grasp market opportunities and achieve multi-dimensional growth.

To sum up, the company is confident that through the above ways, it will achieve the goal of doubling the number of monthly active users of its products by 2021.

VI. Revenue in 2020 increased by 203.2%, and revenue from domestic purchase of applications increased by 55 times.

Liu Chunhe released the financial operation data of Chizi City Technology in 2020 to shareholders and investors.

In terms of revenue, the company's "flow +" strategy is beginning to show up in 2020. With the explosive growth of the company's social business and gaming business, the companyRevenue recorded 1.18 billion yuan, an increase of 203.2% over 2019.Over the past five years, the company's revenue has grown steadily and rapidly, with a compound growth rate of 166%.

In 2020, the company's value-added service business is contributed by social business.The revenue from internal purchase of applications reached 660 million yuan, an increase of more than 55 times over 2019.The traffic realization business includes two parts: application traffic realization + advertising platform, which amounts to 520 million yuan as a whole, of which the main contribution is the game-based intra-application traffic realization business, whose revenue is 510 million, an increase of 120.3% over the same period last year.

In terms of gross profit and gross profit margin, due to the rapid growth of the company's revenue scale in 2020, the company's gross profit reached 750 million yuan, an increase of 187.7% over the same period last year. The gross profit margin is 63.7%, which is basically the same as that of the same period last year. Among them, the gross profit margin of the flow realization business is 87.0%, and the gross profit margin of the value-added services business is 45.1%. The company continues to increase its R & D investment in social networking and other products, reaching 58.53 million yuan in 2020, an increase of 188.8% over 2019.

In terms of profit, the rich realization form of "flow +" strategy and efficient realization efficiency promote the profitability of the company. In 2020, the company's net profit reached 110 million yuan. Excluding the influence of equity incentives and other factors, the adjusted net profit reached 150 million yuan, an increase of 67.1% and 41.5% respectively over 2019.

In terms of cash flow, with the steady and rapid growth of the company's business, the company's cash and cash equivalents increased from 183 million yuan at the end of 2019 to 431 million yuan at the end of 2020, an increase of 135.7%; the total assets have exceeded 1.2 billion yuan; the net cash flow from operating activities reached 296 million yuan, an increase of 68.5% over 2019, and the company's business continued to develop steadily.

VII. On-site question and answer session

1. The company currently has three social products, MICO, Yiyo and YoHo. What are the differences in the market positioning of these three products? What role do you play in the overall plate? Why launch three products in a short time? How is the significant MAU growth of overall social products achieved in 2020?

Li Ping: we focus on the open social track and create differentiated multi-audio and video social products.Different modes:

Yiyo can be understood as a video version of Tinder, which matches and socializes through video. MICO is an open social platform that helps users make friends around the world and have online entertainment with friends. YoHo is a voice social platform with voice as the core social mode, and its main functions are chat rooms and so on.

At the level of marketing strategy, these products are also different:

Yiyo currently focuses on India, Pakistan and the Middle East and will expand globally in the future; MICO has a wider market area and is now extending from emerging markets to developed markets; YoHo focuses on the Middle East while expanding into regions such as Turkey.

The three products can meet a variety of social needs of users and greatly increase the length of time users spend on our platform. At the same time, the three products can also drain each other, guide users to spend repeatedly on our platform, and keep our MAU at a high level.

The growth of MAU just mentioned is mainly based on the following aspects:

Product aspectWe are positioned to socialize with strangers, and there is a lot of market space overseas; our products are in line with the video social trend and meet the needs of the younger generation of the post-1995 and post-00s generation. According to App Annie, audio and video are the core of eight of the top 10 mobile apps by revenue in the world in 2020.

In terms of operationIn the past few years, we have built a "sea iron army" and constantly ploughed local operations.

In terms of market developmentWe have occupied a considerable share in the Middle East, India and Pakistan, North America and Southeast Asia, as well as made a breakthrough in developed markets, making it into the top 20 best-selling social apps in the United States in 2020.

2. What are the liquidity models of the company's social products? Is there a new way of cashing in? What is the future growth space for social revenue?

Li Ping: at presentSocial income is mainly contributed by income from value-added services.It is mainly manifested as virtual item purchase, advanced function purchase, member subscription, chat time purchase and so on, of which virtual item purchase and advanced function purchase account for a large proportion.

The company has flow realized income in addition to value-added service income. The future will be based on social development of new scenarios, looking for new ways of income.

About the future space of social intercourseLet's first look at the industry data before answering this question.

In terms of the size of social users, the top five countries are 930 million in China, 350 million in India, 200 million in Indonesia, 220 million in the United States and 140 million in Brazil.

In terms of the length of use of social products, countries with an average of more than 200 minutes a day include North America, Brazil, Indonesia in Southeast Asia, Thailand, Egypt in the Middle East and so on.

Based on this, the key areas of the company, such as the Middle East and Southeast Asia, are regions with the rapid development or development of global social media, with a young population structure and still a growth dividend. The Middle East, for example, has a large number of potential users and is expected to continue to expand at a compound growth rate of 7.5% between 2019 and 2024, leading most of the world's markets.

At the same time, we are making great efforts to expand Europe and the United States, Japan, South Korea and other mature markets, these markets have a large number of high-value users, I believe that the future will also provide us with MAU and revenue growth.

3. At present, the group's profits have greatly increased, but the return net profit has dropped year by year. May I ask the management to explain it to the investors?

Song Pengliang: we do reflect that this year's homing profits have declined to a certain extent. The core reasons are in several aspects.It is mainly affected by non-operating factors.On the one hand, the company issued some equity incentives to employees on May 28, 2020. the impact of this equity incentive on the statement will be 40 million in 2020, and the overall profit situation of the company will be affected year by year in the next three years, but the impact will be reduced year by year.

When it goes public in 2019, the frozen interest formed by the funds raised by the listing is about 20 million, and the company's interest income is relatively low in 2020, which will also decline.

From the business level, some of the company's social products and game products are also in the investment period, user data growth is very fast, the company will also increase investment in related products in 2020.

We believe that the overall performance of the company is good and has strong certainty, and the current sea industry is also a very good period of historical opportunity, so this year the company will continue to give priority to scale in terms of business development.

4. Just now the management mentioned the goal of doubling the number of monthly active users. Does it refer to the overall number of monthly active users of games + social networking, or how to understand it? In addition, what is the current market share of the three social products? Compared with Tinder and Momo, where are the competitive advantages or positioning respectively? What are the downloads and rankings of the major APP in their respective markets?

Liu Chunhe: first of all, the goal of doubling the number of monthly active users refers toSocial and gaming doubles as a whole. In 2020, the average number of monthly active users of social products reached 11.36 million, and the average number of monthly active users of games reached 11.51 million. With regard to these two numbers, we are very confident that the cumulative number of users in 2021 is going to double. Let me first talk about the reasons.

Mainly because we have formed a large-scale and replicable standard play in terms of products, technology and operations, and the most important thing is that we have our own core competitive advantage, which in essence isAdvantages of the Chinese model, which is divided into two aspects:The first aspect is technology + products; the second aspect is operational capability。

In terms of technology and products, at present, China's overseas products are all in the form of audio and video as the core. In terms of product interpretation, European and American companies are mainly picture-based social form, and our audio-video-based product form has a very strong competitiveness, and it is also the main form of the next generation of social products.

At the same time, strong operation is the core competitiveness of Chinese companies. Our company has formed the title of "going out to sea iron army" in the industry in the past few years, so "technology + operation" is our core competitive advantage.

Through these two advantages, we have finally reached the "new species" in the process of going out to sea, and we are extremely competitive in the face of European and American competitors, and in fact, the current growth has proved this point.

From a specific point of view of the three productsFor example, MICO ranks very high in the Middle East and is moving towards the developed markets of Europe, the United States, Japan and South Korea at the same time. Yiyo is currently developing in the markets of India, Pakistan and the Middle East. It has the attribute of globalization and will soon expand to all markets around the world. YoHo takes the Middle East as its core, not only in the Middle East, but also in markets such as Turkey, and there is the possibility that it will evolve to many countries in the future.

On the whole, we rely on China's advantages and achieve rapid large-scale growth in accordance with standardized play. So we are confident to achieve sustained and rapid growth in 2021 to double the number of monthly active users, and we are also confident to achieve sustained and large-scale growth. Let's wait and see.

5. Clubhouse is very popular at present. I don't know what Clubhouse can learn from our current social section? What trends can we see in Clubhouse for the overall user development trend, environment, user experience, and so on?

Liu Chunhe: Clubhouse is a very popular product right now. It was very active in Europe, America and some social circles in China some time ago. I was also a user a long time ago. This is how we view this product internally:

Clubhouse is more of a media product.Some people say that it is an audio version of Weibo, which forms topical discussions by attracting the core KOL, and achieves the out-of-circle and large-scale growth of users through audio, a form with relatively low social barriers.

The popularity of Clubhouse gives us some inspiration:

First, it turns out that audio interaction is closer to people's social common sense in life. In the past, many of us used to type pictures and text when using social tools, including typing and chatting in WeChat groups. very often, it was not literal. I said A, you said B, and sometimes the reply was wrong. Video is actually a higher-dimensional form of audio because it adds visible visual parts. In terms of audio and video, it is essentially closer to the social common sense in people's offline life scenes, soAudio and video scene is the main form of future products.That is, we will see the outbreak of short video products today, whether products such as Kuaishou and bytes, including live streaming, are closer to the simplest way of communication between people.

Second, macroscopically speakingThere is still a lot of room for innovation in global Internet products.. In the past few years, we can see that many new giants have emerged in the development of Internet products in China, and we believe that this trend will also appear in the next few years on a global scale. The essence of the Internet is the process of modernizing human beings, because the goal of the Internet is to make it more efficient. Therefore, the real-time form of audio and video products is undoubtedly in line with this direction, real-time, breaking the limitations of time and space is the main pursuit of this kind of products. Therefore, when we do social products, we must pay close attention to the core of real-time audio and video to carry out our work, which represents the trend of the future.

Third, talk about the difference between us and Clubhouse.The grip we hold on to is still the social need.Open social needs are essentially based on Holmont-style open social needs, which is slightly different from biased media. If extended, the user relationship is more entertaining, and we still focus on social itself to build our ecology. Whether it is MICO, YoHo or Yiyo, all our efforts are to make young people gather together, be happy, be very happy, and make them happier. At the same time, it is the same way for us to create a number of new products in the future. But in the process of solving their needs, we may adopt more differentiated and diversified product forms, because countries and countries are different, people and people are different, this is the difference between us and Clubhouse.

6. At present, the company has made great efforts to develop social networking, and has also invested in the game company Fantasy Dream. How to balance the allocation of resources between social and gaming in the future? How is the company's strategy reflected in these two sectors?

Li Ping:The two business lines of social networking and gaming are the main development directions of the company.Because these two business lines can attract huge traffic from different areas to promote the rapid growth of the company's performance. At present, the synergy between the company's social business and gaming business is also increasing, and there is also synergy in the development of the company's social business and gaming business.

In addition, the large-scale realization of the company's social business began to break out in the second half of 2020, and the potential for commercialization is beginning to emerge, and the company is very confident that it can continue to increase the share of social revenue this year.

In 2020, the company's game business development is very good, providing the company with the support of cash flow. Among them, the growth of IAA game business is very good, which promotes the realization income of application traffic of the group to increase significantly. The company is also actively expanding the development of medium and heavy mobile games, has accumulated some experience in this area, and will continue to make efforts this year.

At the same time, the company will alsoDevelop game business according to the way of "independent research and development + distribution + investment"We will continue to look for quality products and excellent teams.

With regard to the purpose of investing in fantasy dreams mentioned just now, it is based on the strategy of "self-research + distribution + investment" to develop the game business. Because the investment in Fantasy Dream will enhance the company's R & D capabilities in moderate and heavy games such as SLG, and the company will give priority to exclusive distribution of game products developed by Fantasy Dream.

On the whole, social business and gaming business are two key areas for the company to develop in the future.

7. How does the company evaluate the development space of its products in overseas markets? Douyin has a very rapid development overseas. Is it a competitive product for us? Or is it a threat to our entire development space?

Liu Chunhe: first of all, the company develops products, and all the sources are based on the demand itself. We can ask a simple question: will users' social needs disappear as a result of economic, social and even international changes. We find that this demand will not disappear, as long as there is a person, as long as there is a demand, as long as there are boys and girls, the demand will not disappear. weClosely around the open social needs of human beings around the world.To start our work.

The difference between our product and TikTok:

TikTok, in terms of traffic coverage, is a more extensive, more comprehensive product form that can be covered by men, women and children. On the other hand, we are more focused, and our traffic coverage is more accurate. Judging from the past development experience of the world, no matter how developed the global social content platforms are and how developed companies like Facebook and Youtube are, there will still be strangers like Match Group, and the track scale is more than 100 million.

So, the global open social track we are doing is not as large as the one TikTok is currently doing, but it just gives us an advantage.

We can learn from the domestic experience over the years, there have been many domestic social good, but many companies ignore the social needs of users themselves, in order to realize, and finally become live show companies. Our experience is very simple, that is, we firmly grasp the objective and long-term constant needs of social needs, and at the same time, we continue to do deep, thorough, refined and fine work in terms of the refinement of serving users and the coverage of diversified products. and finally form our barriers.

What we want to subvert is the traditional companies that socialize with overseas strangers because their products do not meet the needs of today's young people. When all of us are watching short videos and playing live broadcasts, do you use a screen-scratching picture or a product whose technology is very poor? So that's the difference between us.

We have a very good relationship with TikTok.We will also launch important strategic cooperation with byte jump in 2021.In terms of competition, there is not only no competition, but there may also be some cooperation.

8. What is the overall cost of getting customers in the target areas where the company's social and gaming products are located? Will the trend of overall customer acquisition costs rise or fall in 2021? Will the company have some social APP reserves in the future or will it be released to the market soon?

Song Pengliang: judging from our current financial situation, the customer acquisition cost of a single user remains stable in various regions, and we will also make good use of our ability in terms of traffic and customer acquisition to cover more traffic access channels and produce more high-quality materials to reduce customer acquisition costs. This is the most valuable experience we have accumulated since 2013.

As for the stock of social products, we already have some products in the plan.

9. What is the company's overall investment in games and social products in 2020? What is the expected new capital investment in this area in 2021?

Song Pengliang: our investment in games and social products will continue to increase, especially in research and development. The proportion of R & D investment in the company's revenue in 2020 is about 5% and 6%.Most of them are used in the development of social and game products.And the development of these two aspects will continue.

Looking forward to 2021, the absolute value of R & D investment will certainly increase, but the overall share of income is likely to decline, because the growth rate of income scale will be higher than that of R & D investment.

In the future, with the expansion of the business scale, we will invest more resources, increase product development and find some high-quality teams, there are some possibilities of foreign investment and mergers and acquisitions.

10. At present, there is still some tension in international geopolitics. How do companies understand and control the risks of the overall plan to go to sea?

Li Ping: the company has always attached great importance to this aspect, and the potential risks are mainly avoided and resolved from the following aspects.

In terms of localization, the company practices the principle of deep localization, actively integrates into the local area, and creates localized products.

In terms of compliance, we respect users' privacy, comply with local regulatory requirements, build overseas legal teams to avoid risks, and launch applications that comply with local regulations.

In terms of partners, the company has a long-term and good cooperative relationship with Google and other platforms, and always abides by the platform policy. So it is very good in terms of equality of cooperation.

At the market level, the main markets of the company's social business are concentrated in the Middle East, South Asia, Southeast Asia and other countries along the Belt and Road Initiative, especially in the Middle East and other regions are relatively stable.

11. Will the company have any ideas or plans for mergers and acquisitions in 2021?

Song Pengliang: judging from some of the products and targets that the company is looking at at present, social networking and games are indeed some of the directions that the company is looking for. In addition, the company will also introduce some new ways of realization of diversification, we also continue to communicate with some target parties, at the right time, investors can pay attention to our corresponding announcement.