Hello, ladies and gentlemen, thank you for standing by, and welcome to 36Kr Holdings Inc. First Quarter 2022 Earnings Conference Call. Today's conference call is being recorded. I will now turn the call over to your host, Yang Li, IR Manager of the Company. Please go ahead, Yang.

Thank you very much. Hello, everyone, and welcome to 36Kr Holdings first quarter 2022 earnings conference call. The company's financial and operational results were released earlier today and have been made available online. You can also view the earnings press release by visiting the IR section of our website at ir.36kr.com. Participants on today's call will include our Co-Chairman and CEO, Mr. Dagang Feng; and our Chief Financial Officer, Ms. Lin Wei. Mr. Feng will start the call by providing an overview of the company and the performance highlights of the quarter in Chinese, followed by an English interpretation. Ms. Wei will then provide details on the company's financial results before opening the call for your questions. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the company's prospectus and other public filings as filed with the U.S. SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please note that 36Kr earnings press release and this conference call include a discussion of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. 36Kr's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. And please note that all amount numbers are in RMB. I will now turn the call over to our Co-Chairman and CEO, Mr. Dagang Feng. Feng, please go ahead.

Thank you. Hello, everyone. Thank you for joining our first quarter 2022 earnings conference call. Despite the recent resurgence of the COVID-19 pandemic and ongoing macro headwinds, we achieved solid top-line performance in the first quarter with double-digit revenue growth and a record high quarterly net income since our IPO. Notably, our advertising business and the enterprise value-added services both reported robust results and year-over-year growth. As a prominent brand and a pioneering platform dedicated to serving New Economy participants in China, we remain committed to establishing a high-quality service system to build a flywheel of growth with diversified business offerings. I'd like to begin with an overview of our content initiatives. In the first quarter, we continued to upgrade our content offerings and create new programs and formats to expand our service boundaries. For example, we launched several official content accounts during the first quarter: KR Carbon, and for more service coverage from the activity of China's new carbon policy, investment institutions, and creative-development audiences, respectively. These programs quickly engage users and have all enjoyed high popularity thus far. Our content team also explored new content formats and strengthened our collaboration with WeChat video accounts and live streaming projects. The live streaming audiences attracted by our new program. Going forward, we will roll out additional live streaming series focused on hot niche markets. This new video and live streaming projects fully mobilize 36Kr's content creation and editing capabilities as well as industry resources to deliver newer high-quality content, industry updates and expert opinions to our users. We are also meeting the content needs of more diversified user groups, which substantially broaden our user base. Furthermore, for our public active market content side, our Warren Buffet Shareholder Meeting series that we jointly created with Tiger Securities, also gained traction. Building on our content production capabilities, we conducted an in-depth analysis of the investment sales, target assets, and investment transit costs at meetings, winning acclaim among institutional users with our high-quality content and innovative formats. After the meeting series, the Omaha Value Investment Education and Research Center reached out to 36Kr to explore future potential collaboration opportunities. Finally, alongside our efforts in short-video and live streaming, we also continued to make strides in audio content during the quarter. For example, we established cooperation to showcase KR Finances rich content in audio scenarios, which effectively elevates our user experience. Content quality is always a top priority for 36Kr. As we remain committed to executing our content platform strategy, we still focus on PGC and UGC. We have consistently incorporated more high-quality content into 36Kr's ecosystem. The number of content pieces on our featured channels with page views about 100,000 - 20,000 continuously increased during the quarter. Notably, the topic streamed for primary school students that we initiated recently has sparked animated discussion online, catapulting the topic to Weibo's hot searches list. Our focus on premium engaging content is paying off, leading to a remarkable 15th consecutive quarter of page view growth. To better reflect 36Kr's content influence and user coverage, starting from this quarter, we will report the total number of our followers inside of our page views. This new metric will provide investors with a more comprehensive perspective from which to assess 36Kr's performance across the entire network. As of the first quarter of 2022, the number of our followers exceeded 24 million, a year-over-year increase of 25%. As the number of our followers on Bilibili is well beyond 1 million in the beginning of 2022, 36Kr's video also gained traction on other platforms such as demonstrated by the surging number of our followers. As of the end of the first quarter of 2022, our short-videos have attracted nearly 7 million followers in all. We gained over 180,000 new followers of our official corporate accounts on Toutiao in just one day. Riding on the popularity of Bing Dwen Dwen, the mascot of the Beijing Winter Olympics, we created a short video that was viewed more than 30 million times, rising to number one on Toutiao's chart of top Winter Olympics-related searches. The incremental building of a premium brand requires not only innovative content and formats but also an unwavering commitment to our mission of empowering New Economy participants to achieve more. We have consistently adhered to our philosophy of working closely with startups in helping them grow bigger and stronger. We applaud them for their progress and lend a helping hand in times of difficulty. As a company and enabler of the industry, we hope to truly assist entrepreneurs during these exceptionally challenging times. To that end, in early May, we officially launched the Seeking the Life program to help businesses, particularly small- and medium-sized enterprises to maintain their brand share of voice despite the market downturn. This program, again, facilitated a seamless integration of information, capital, talent, and technology. Looking at our ongoing business expansion efforts despite the recent COVID-19 resurgence, we did not slow down our expansion in the Greater Bay Area and overseas markets. We conducted a virtual live streaming session in South China for the first time during the quarter, generating new ideas for product launches against the backdrop of the current COVID-19 outbreak. On the international front, the 36Kr Global, which specializes in overseas markets, continues to provide efficient connection services, helping various Chinese brands operating overseas network in Global from agencies and investment institutions to explore our business development opportunities in those markets. New products and models have helped us build a closed loop service framework and a diversified three-dimensional ecosystem, staying true to our vision of empowering new economy participants to achieve more. We consistently strive to broaden our media service boundaries and refine our business model, which are also reflected in our commercialization performance. Next, let's look at our achievements on that front. As our cash core business, advertising business performed well in the first quarter, achieving an increase of 13% year-over-year. Even against the backdrop of COVID-19 resurgences and macroeconomic challenges, our advertising revenue disrupted mainly from brand marketing has experienced growth far above industry average, thanks to our relentless efforts to create innovative service formats and improved customer satisfaction levels. Leveraging our short video format, we achieved a new high in terms of contract sets for our advertising services during the quarter. Not only did Intel continue to promote its new products through our short video formats, with these contract sets continuing to rest. Moreover, we launched an original program to promote sense and safety policy risk, resulting in a contract far larger than those of the traditional tax and image-based marketing solutions. We also helped various well-known companies, including Panasonic, Changan Auto, Toyota, BYD, Dali Education, and iFLYTEK, promote their brand concepts and create product launch videos. The continuous stream of new customers and repeat orders of existing customers are a testament to the effectiveness of our short video format in brand marketing, targeting fee and consumers while also further raising our average revenue per customer. Our consistent innovation in tax and graphics content also contributed to excellent commercialization performance. For example, our attractive approach increased attention from young user groups with service on young people's consumption trends, featuring well-funded reasoning and planned formats, and garnered widespread acclaim by creating unique promotion matters for customers, including DingTalk, Huawei, HLA, Pinduoduo, Juhu, and IGE. Given all these advantages, we were able to raise this record to a level considerably higher than that of similar official accounts. Going forward, we believe this program will help the expansion of our service presence and raise our advertising revenue steadily. Turning now to our enterprise value-added services, which grew 35% year-over-year in the first quarter despite the COVID-19 impact, thanks to our strategy adjustments and new service formats. On the corporate service side, 36Kr jointly hosted the display of the Enterprise Service Forum with DingTalk and collaborated with them to plan the event's agenda and content. Leveraging our knowledge of enterprise services, we not only help the participants in enterprise service platforms better understand the latest industry updates and future development opportunities but also assist DingTalk in finding potential partners along the value chain. In terms of institutional collaboration, 36Kr partnered with other institutions to organize the Dual Carbon Star Sustainable Innovation Contest aimed at discovering innovative companies with potential in four major sectors: new energy, new materials, new technology, and new business models. We hope to help companies gain a deeper understanding of the dual carbon policy, better guard market demands, and connect with industrial capital. Our regional expansion also achieved good results during the quarter. We entered into a partnership with additional government agencies, including Jianye district in Nanjing, the China standing of Information and Communications Technology affiliated with the Ministry of Industry & Information Technology and the high core business school of regional versus talent association to integrate resources in innovative fields such as the megawatts and industrial internet, creating close connections between local governments and enterprises in both the upstream and downstream of the industry chain to empower industry upgrades. In addition, we are also working to expand our enterprise line base as a new growth avenue. During the first quarter, the proportion of our enterprise clients grew substantially, not only did the number of enterprise clients increase, but the value of contract execution also increased significantly year-over-year. Moving forward, we will also focus on serving high-quality, innovative local enterprises who are becoming new catalysts for our regional business growth. Looking on to our subscription services, we continue to test waters with new variations in the subscription services, including launch innovations and business training programs and other forms of institutional interactions supported by our continuous upgrades and premium services cost. In the fourth quarter, revenue from institutional and corporate clients increased 57% year-over-year. The number of contracts signed by investment institutions nearly doubled compared with the same period in 2021, among which the repeat orders from existing customers accounted for up to 70%. I'd like to share with you the latest upgrades on our enterprise service review platform. In terms of operating data, major metrics all improved substantially year-over-year. Our monthly active users rose more than 25 times year-over-year to nearly 900,000, up 49% sequentially, and the number of authentic reviews surged almost 50 times to over 21,000. Meanwhile, as we continue to establish our platform service system and its reputation, which showcases nearly 6,000 pieces of mainstream software on the platform, following the main enterprise service software of 16 industry and 200 industry segments, accounting for 80% of the entire market. 36Kr's enterprise service review platform now boasts complete coverage of leading brands as well as coverage of many mid-range brands and other widely known software apps available in the market. Since merchants-oriented features were launched in September 2021, a total of nearly 700 merchants have set up a presence on our platform compared to approximately 400 merchants a few months ago, nearly doubling our coverage of mainstream service providers in just a short time. I'd like to highlight that through the joint efforts of our online and offline events, as well as our newly launched feature, the 36Kr Enterprise Service Review Platform's automatic report. We have effectively enhanced the platform's visibility and traffic. The number of leads has fallen significantly compared with the same period of last year, with a steady conversion rate of 30%. The significant improvement in the number of leads and year conversion rate are key indicators of our capabilities to efficiently empower service providers to acquire customers while lowering their customer acquisition costs. In the first quarter, our enterprise service review platform performed well in terms of commercialization. Up to now, we have signed contracts with Kingdee, Beisen, Huawei, HiteVision, and EC SCRM. I will empower these lines in customer acquisition, brand management, and marketing services. In conclusion, I'm pleased to say that despite the COVID-19 resurgence and complicated internal and external economic conditions, we still achieved solid first quarter results. Notably, our new business initiative, the 36Kr enterprise service review platform continues its strong growth trajectory with major metrics improving substantially year-over-year. More excitingly, its commercialization subsided during the quarter clearly demonstrates that the enterprise service review platform is becoming 36Kr's second growth engine. We will capitalize on the growth prospects in the new economy to fill new hubs as we start the next chapter of our development. Going forward, we will continue to be a pioneer for the new economy sector, expanding our user base and cultivating our diverse content and service ecosystem while also shouldering our corporate social responsibilities and empowering more industry participants to achieve greater success. With that, I will now turn the call over to our CFO, Ms. Lin Wei, who will discuss our key financial results. Please go ahead, Lin.

Thank you, Feng, and hello, everyone. Our first quarter results kicked off the year with a solid start despite several challenges, including COVID-19 surges and macroeconomic issues. We achieved a 14% year-over-year growth in total revenues and reached a record high quarterly net income since our IPO of RMB33 million, marking our second consecutive quarter of profitability. Notably, our advertising business maintained strong growth with a 13% year-over-year increase, and our enterprise value-added services saw remarkable growth of 35% year-over-year. Additionally, thanks to our disciplined cost control measures and improved accounts receivable collections, along with our strategic focus on core business and the disposal of certain assets, our profitability improved significantly this quarter. Looking forward, we will continue to strengthen our presence in China's new economy space, developing our diverse ecosystem of business communities and our user base to empower more enterprises while expanding our monetization strategies for sustainable growth. Now, I would like to share more details of our first quarter 2022 financial results. Total revenues were RMB49.6 million in the first quarter of 2022, a 14% increase compared to RMB43.5 million in the same period last year. Online advertising services revenue grew 13% year-over-year to RMB37.6 million in the first quarter of 2022, mainly due to innovative marketing solutions offered to our customers. The number of advertising customers and the average revenue per advertising customer both increased in the first quarter of 2022. Enterprise value-added services revenue grew 35% to RMB9.3 million in the first quarter of 2022, up from RMB6.9 million in the same period last year. Subscription services revenue was RMB2.7 million in the first quarter of 2022, down from RMB3.4 million in the same period last year, primarily due to a decrease in revenues from individual subscriptions because some offline training programs were canceled or delayed due to the resurgence of COVID-19. However, institutional subscription revenues increased by 57% year-over-year, driven mainly by a rise in institutional subscribers. Cost of revenues was RMB23.9 million in the first quarter of 2022, compared to RMB20.2 million in the same period last year, generally in line with revenue growth. Gross profit increased 10% year-over-year to RMB25.7 million in the first quarter of 2022, compared to RMB23.4 million in the same period last year. Gross profit margin was 51.8% in the first quarter of 2022, compared to 53.7% in the same period last year. The slight fluctuation in gross profit margin was due to a higher proportion of enterprise value-added services in total revenues this quarter, which had a lower margin than our advertising business. Operating expenses were RMB33.4 million in the first quarter of 2022, a decrease from RMB64.8 million in the same period last year. Sales and marketing expenses were RMB29.7 million in the first quarter of 2022, down from RMB35.7 million in the same period last year, primarily due to reduced payroll and marketing expenses. G&A expenses were negative RMB10 million in the first quarter of 2022, compared to RMB20.2 million in the same period last year. This fluctuation was mainly due to the release of the allowance for credit losses of RMB32.9 million, partially offset by increased payroll expenses. The release of credit loss allowances was primarily due to the collection of RMB36.6 million in long-aged accounts receivable during the quarter as we improved our collection efforts. Research and development expenses were RMB13.8 million in the first quarter of 2022, compared to RMB9 million in the same period last year, mainly due to higher payroll-related expenses to enhance our research and development capabilities, particularly for our enterprise review platform. Share-based compensation expenses recognized in various categories totaled RMB4.1 million in the first quarter of 2022, compared to RMB2.7 million in the same period last year, primarily due to an increase in new share options. Other income was RMB40.3 million in the first quarter of 2022, compared to RMB1 million in the same period last year. As announced in our 6-K filing in March 2022, the company was involved in the financing round of Hangzhou Jialin Information Technology Co., Ltd., acquiring a 7.3% equity interest by transferring its 100% equity interest in Beijing Dianqier Creative Interactive Media Culture Co., Ltd. to Hangzhou Jialin, which is a fresh produce supply chain solution provider in China. The subscription price was the same for all investors in this financing round. The fair value of the equity interests acquired was RMB40 million, and the company recognized approximately RMB38 million in gains from this investment and disposal in the first quarter of 2022. Net income was RMB32.6 million in the first quarter of 2022, compared to a net loss of RMB40.5 million in the same period last year. Non-GAAP adjusted net income was RMB36.7 million in the first quarter of 2022, compared to a net loss of RMB37.8 million in the same period last year. Net income attributable to ordinary shareholders was RMB33 million in the first quarter of 2022, compared to a net loss of RMB39.5 million in the same period last year. Basic and diluted net income per ADS were both RMB0.8 in the first quarter of 2022, compared to a basic and diluted net loss per ADS of RMB0.9 in the same period last year. As of March 31, 2022, the company had cash, cash equivalents, and short-term investments of RMB171.1 million, down from RMB216.1 million as of December 31, 2021. This was mainly due to year-end employee bonuses and benefits and small long-term investments made in several new economic startups during the first quarter of 2022. This concludes our prepared remarks today. We will now open the call for questions. Operator, please proceed.

Thank you. And our first question coming from the line of Jing Chen from CICC. Your line is open.

Congratulations on the first quarter financial performance. I have two questions. The first is how is the impact of COVID-19 on the company's business in the second quarter? Are there any corresponding adjustments to mitigate the negative impact? And my second question is cost and expense control has become a key trend this year and the company's net profit is also increasing. Can you provide some guidance in terms of cost reduction in the year and how should we look at tax to the profitability of the company? Thank you.

We have noticed this change since March this year. In April, when the pandemic began in Shanghai, and in May, as Beijing implemented three control measures, COVID-19 affected our performance in both the first and second quarters. The delivery of our enterprise value-added services, particularly offline activities, faced project suspensions or delays. This situation also impacted our advertising business, creating challenges in the macro-economy and reducing customer willingness to advertise. We remain optimistic about tackling these challenges, including enhancing our offline deliveries and offering online solutions such as live streaming and short videos. Additionally, for our advertising business, we introduced a warm winter initiative to provide favorable pricing for our customers to support them during the pandemic. With the gradual lifting of lockdowns in Shanghai and Beijing, we anticipate a return to normal for our business. We will take steps to ensure smooth operations and deliveries. We have positive expectations for the second half of the year. For advertising, we aim to maintain momentum and achieve improvements in performance and customer numbers. As a key part of our enterprise value-added services, we hope our enterprise service review platform will see significant commercialization progress this year. We have launched subscription products like business school, which will be gradually introduced in the second half of the year to energize the company's operations. Since the start of 2022, there have been many reports of employee optimizations in other companies, but so far, 36Kr has no plans for layoffs. Our focus on cost reduction and efficiency enhancers is centered on strict business cost control, which is already evident in our first quarter financial statements. For instance, we maintained double-digit revenue growth while achieving a steady profit margin due to a decrease in sales and marketing expenses and improved accounts receivable collections, positioning us for over RMB30 million in net income in Q1. We believe 36Kr's fundamentals remain strong, and as the pandemic subsides, our business will normalize. We are dedicated to increasing revenue and enhancing operational efficiency. In our view, strong performance, reduced free costs, and effective pest control are the right strategies for cost reductions and efficiency improvements. Concerning profitability, we discussed our full-year outlook last quarter and continue to expect profitability this quarter. Although we are cautious due to COVID-19's impact, we anticipate overall profitability in the first half of the year. Looking ahead to the second half, we are optimistic about the recovery of China's macro economy and its potential benefits for our business. The third and fourth quarters are particularly important for us, and we expect profitability in the second half as well. Generally, as long as the pandemic does not resurge significantly, we maintain a cautiously optimistic outlook on full-year profitability. Do you have any other questions?

Our next question coming from the line of Peipei Qiu from Industrial Securities. Your line is open.

So I will translate my question. So given the difficult macroeconomic environment, how do you consider the commercialization pace of your enterprise service review business? Thank you.

Thank you, Peipei. So under the current conditions, we think the providers will have more difficulty in acquiring customers online. So 36Kr's enterprise service review platform will benefit from this situation. Our KPI for the enterprise service review platform focuses on developing the platform and refining our products primarily covering operating metrics such as the number of authentic reviews, monthly active users, as well as product enhancements on the platform. I'd like to share with you some operating data. So at the end of March 2022, daily active users on our enterprise service review platform rose 25 times year-over-year to 900,000 and the number of reviews surged almost 50 times to over 21,000. Up to now, our enterprise service review platform has showcased nearly 6,000 pieces of mainstream services on the platform. So the number of leads on our enterprise services review platform has increased dramatically, maintaining a steady conversion rate of over 30%. These metrics will continue to improve. Last quarter, we said we would start our commercialization this quarter. Our enterprise service review platform commercialization will focus on generating sales leads, product promotion, and research reports. So this year, we launched our commercialization pallets featuring simultaneous brand marketing and lead-related products. We have already seen some results. We have reached agreements with several enterprises including signing contracts with Kingdee, HiteVision, EC SCRM, and Beisen. We will continue to provide them with service regarding customer acquisition, brand management, and marketing services. We believe that as we refine our product, the commercialization of the enterprise service review platform will play a significant role in 36Kr's overall fundamentals and it will become the second growth engine for the company. We want that to become a reality as early as possible and materially change the market perception of 36Kr's valuation logic, so maybe in the future quarters, the contribution from the 36Kr enterprise service review platform revenue will increase significantly.

Our next question coming from the line of Lingyi Zhao with SWS Research. Your line is open.

And my first question is how are the recovery efforts in each business progressing with the gradual easing of COVID in Shanghai and around the country? Which business segment could we expect to see lost sales in the following six months, considering a firm full-year breakeven goal being revised? And my second question is with the current downward pressure on the economy, what steps will the firm take to maintain the resilience of the advertising business segments? And my third question is what is the progress of the Enterprise Service Review Platform commercialization and how does the company expand the user base and cultivate the consumer mindset, that's my question. Thank you.

Thank you, Lingyi, for your questions. This is Lin. I will address your first question about the pandemic's impact on our business and the outlook for profitability this year. Mr. Feng will respond to the other two questions. As Mr. Feng mentioned, COVID-19 and macroeconomic challenges affected our later Q1 and the first half of Q2, particularly regarding some of our enterprise value-added services involving offline events. However, we've implemented several measures to lessen that impact. We organized online and offline forums and used online live streaming and short video formats for our forums and conferences. This revenue segment actually grew 35% year-over-year in Q1, surpassing total revenue growth, which is significant. Regarding our advertising business, which is a major part of our total revenue, it also increased 13% year-over-year. When we compare this to industry averages, many companies that reported their Q1 results also showed year-on-year growth, but we achieved double-digit growth. This success is attributed to 36Kr's strong content and brand image, attracting both SMEs and large companies, including Fortune 500 firms, for brand and performance-based advertisements. Consequently, our advertising business is less affected by the macroeconomic trends and demonstrates more resilience. Therefore, we are pleased with our Q1 results, and looking ahead to Q2 and the rest of the year, we anticipate that with the lifting of pandemic controls, our offline events and enterprise value-added services will resume. As the macro economy gradually recovers, advertising spending is expected to rise, and we have many initiatives in place, including adjustments to our rate card and innovative marketing solutions like short-form videos, which are gaining traction. This gives us confidence that we can recover what we missed in Q2. As Mr. Feng mentioned, we remain cautiously optimistic about our full-year profitability. I hope that addresses your question.

For the resilience of the online advertising services, we still maintain our influence, and maintaining quality is the most important thing for 36Kr and we will continue to enhance our content offerings and consistently provide high-quality content. We will also continue to diversify our distribution channels to strengthen the influence of 36Kr. For product delivery, quality, and advertising effects, we will continue to optimize our products and provide customers with more options from tax images to short-form video and less premium. This strategy will strengthen customer stickiness to 36Kr. For this purpose, we launched a warm winter initiative to provide variable pricing for customers in difficulty to help them tide over during the pandemic period. When COVID-19 is under control, we will adjust our pricing strategies flexibly according to the demand. We think the content capability is a strong point for 36Kr's enterprise service review platform. For user expansion, we will remain focused on growing our platform's influence by building a set of industry evaluation standards and creating our own magic quadrants for China's enterprise service industry. We seek consistent breakthroughs in areas such as product leverage, user review leverage, key person databases, and knowledge graph leverage to build 36Kr's Enterprise Service Review Platform into China's largest, most authoritative, and most convenient enterprise service software selection platform. For the commercialization process, as we said in the last quarter, we will start the commercialization this quarter, but we will still need to improve our operating data and efficiencies. We feel positive about the commercialization, and we have already signed agreements with Tencent, Kingdee, and some famous brands, so we believe it will become the second growth engine for the company, and we will have much more potential regarding commercialization. Thank you.

Our next question coming from the line of an analyst with BH Capital. Your line is open.

Hello, Don.

Congratulations on the strong results. Thanks very much for taking my question. My question is regarding the advertising business. As mentioned, along with the impact of the ongoing COVID-19 in China in the first and second quarter and weak macro environment recently. We still achieved strong growth year-over-year in advertising business that outpaces the ad industry. So can management share what the drivers for this performance are? Thank you.

Thank you, Don for your questions. This is Lin. I will answer your question. Yes, our advertising performed quite well in Q1. I think it's mostly driven by our number of advertising customers as well as the average revenue per user (ARPU). Our number of advertising customers increased 2% compared to the same period last year, while our ARPU increased 11% compared to the same period last year. Talking about the advertising ARPU, I think there are several factors. First of all, at the beginning of every year, we adjust our pricing based on supply and demand because our resources and advertising inventory are highly sought after. We adjusted upwards our rate card. That's number one. Number two is we have launched several initiatives, including our short-form video content as well as a lot of content columns that are specifically targeting free end users. For example, the whole use in Chinese, whole long, and some Kr test, these columns are really expanding the customer base and increasing the contractors that will translate into the higher ARPU for us. That's number one, from the technical point. In terms of collative analysis, our advertising is mostly brand advertising, thus it's less vulnerable to economic cycles because either in uptimes and downtimes, companies always need to build their brand image. That's why our brand advertising is less reliant on the macroeconomy and more resilient to the cycles. That being said, our advertising is a major component, but remember that the 36Kr Enterprise Review Platform is picking up as well that commercialization of that product will be much more performance-based, which is a very good and perfect supplement to add to our overall product offerings. We see a good balance between brand and performance-based business, which is very good for the future growth of the company. Hope this answers your question Don.

Thank you.

Thank you. As there are no further questions, I would now like to turn the call back over to the company for closing remarks.

Thank you once again for joining us today. If you have further questions, please feel free to contact 36Kr's Investor Relations through the contact information provided on our website. Thank you.

Ladies and gentlemen, this concludes the conference call. Thank you for your participation. You may now disconnect.