Hello, ladies and gentlemen. Thank you for standing by for 36Kr Holdings Inc.'s Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management’s remarks, there will be a question-and-answer session. 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.

Thank you very much. Hello, everyone. And welcome to 36Kr Holdings third 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 company and 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 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 earning 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 third quarter 2022 earnings conference call. In the third quarter of 2022, we maintained steady growth across our business highlighted by our fourth consecutive quarter of profitability. This strong performance in COVID-19 resurgences as macroeconomic headwinds was largely thanks to our do focus on boosting our influence and advancing commercialization. As new job to empower the new economy sector throughout the third quarter. We continue to optimize our sources and build barriers to competition with our content ecosystem, setting the stage for our ongoing excellent performance. To start I like to share with you some of this quarter's and innovations in brand influence and commercialization. First let's look at content, we are committed to creating value with our high-quality content. It is the cornerstone of our development and powerhouse that propels continuous expansion of our brand influence boasted by our content platform strategy with do focus on PGC and UGC. We have enriched our content offerings and created a multi-dimensional content ecosystem encompassing pan-commerce and pan-life content. In this quarter, we continued to produce engaging professionally-created content, with the number of our articles with over 100,000 page views climbing to over 155,000 among them several articles on pan-business and pan-life topics triggered heated discussion, driving PVs up to 300,000 and even beyond 800,000 in some cases. In addition, several of our original articles were recommended by which has top selective in the third quarter, leading to a daily pageviews of over 1 million for several consecutive days. I'd also like to highlight an insightful article written by our secondary markets in the third quarter, a blockbuster which generated huge buzz and over 800,000 views. Furthermore, our brand-new word fields at media outlets 36 Carbon launched only six months ago achieved nearly…

Thank you, Feng and hello, everyone. Despite the lingering challenges in the external environment, we are very pleased to have extended our strong growth momentum into the third quarter with another quarter of double-digit top-line growth alongside a 11.5% year-over-year increase in total revenues. Notably, our advertising businesses continue for increasing 20% year-over-year. While our enterprise value-added services also recorded solid growth of 5% year-over-year. In addition, thanks to our consistent and effective efforts to optimize our cost structure and operating efficiency. Our gross profit margin and operating margin both improved year-over-year in the third quarter of 2022. And we delivered a fourth consecutive quarter of profitability. Our resilient diversified portfolio of products and businesses, bolstered by our content capabilities and multinational ecosystem actually positions us to achieve sustainable growth and generate long-term shareholder value as we move forward. Now I'd like to walk you through more details of our third quarter 2022 financial results. Total revenues were RMB 94.6 million in the third quarter of 2022, an increase of 11.5% compared to RMB 84.9 million in the same period last year. Online advertising services revenues increased by 20% year-over-year to RMB 63.9 million in third quarter of 2022. The increase was primarily attributable to more innovative marketing solutions we provided to our customers, as well as proactive sales strategies. We adopted to navigate the challenging environment during the quarter. Enterprise value-added services revenues increased by 5% year-over-year to RMB 23.6 million in the third quarter of 2022 as we continuously and proactively developed various new enterprise level services for our customers. Subscription services revenues were RMB 7.1 million in the third quarter or 2022 compared to RMB 9 million in the same period of last year. The decrease was primarily because some of our offline training programs are canceled…

Thank you. And our first question will come from Peipei Qiu of Industrial Securities. Please go ahead.

And I will translate my question. So we've learned from your financial report that the enterprise review platform developed rapidly across multiple operation metrics. Could you share with us more about your like monetization and timelines for this business in the coming years more about the mid and long-term strategy for ? Thank you.

Since the beginning of this year, we have been trying to optimize our enterprise service review platforms operations, and explore commercialization opportunities based on our operational data, our enterprise service review platforms, primary metrics all improved rapidly year-over-year, including monthly active users. Daily active users are the number of real reviews and the number of pieces of software showcase. Our year-over-year basis of enterprise service review platforms grow by over software to exceed 1 million. The number of real review increased by almost 10-fold year-over-year and 54%, quarter-over-quarter to over 50,000. We also showcased our 7300 pieces of mainstream software up 59% year-over-year. And , our enterprise service review platform approached 1000 year-over-year increase of 328%. So in terms of commercialization, we established cooperation with Lenovo in the third quarter to empower customer acquisition and brand management, marking an important value in our enterprise service review platform commercialization costs. So regarding future plans, we will leverage the existing data on our enterprise service review platform to convert more leads for delivery. So for the next quarter, we will initiate a new product function. We will continue to collect users’ real reviews and combine basic product data expert opinion to issue personalized industry selection reports and product comments reports will help users make product selection decisions. We think this will highly improve our surveys and also improve the value of the commercialization. At the same time, from the perspective of SaaS providers, we will continue to enrich our industry solutions and industry case base, develop case-based products and reach out to decision-makers by various means such as product functions, articles, live broadcast, thereby forming industry consensus and helping to improve the efficiency of sub-product selection. With respect to commercialization, we'll continue to build benchmark cases and extend our collaboration models with leading well-known enterprises such as linear one Volcano Engine and into more enterprises, creating center lives, commercialization models and expanding our commercialization scale with maximum efficiency. So for the macro economy National Congress has also emphasized the importance of digitalization. Contrary to popular perception, or COVID-19 flare ups has actually facilitated the development of cross topics as more holistic digital transformation. So we expect that if we have more focus on the functionality of enterprise, so it's review platform in 2022 and we will assume a real -- very high growth comparable to the 2022 of the commercialization for the year of 2023.

The next question comes from Lingyi Zhao of SWS Research. Please go ahead.

Congrats for the great results. And thank you for taking my questions. I’m Lingyi Zhao from SWS Research. My first question is, how do we expect the growth potential after the relaxation of control measures? And how about expected goals? And my second question is, could you please comment, share some outcomes on the recent WISE conference and what adjustments have been prepared of offline activities for December and next year. Thank you.

Hi, Lingyi. Thank you for your question. This is Lin. I guess I will maybe answer your first question because it is regarding some financial guidance for next year. And then, Mr. Feng, will answer your second question. You mentioned that the lifting of the pandemic control measures. Yes, that's a very good signal of our good job. Basically, I think all of our businesses will benefit across the board. But in terms of timing, that will be some business will benefit, earlier some will be benefiting later. Namely, advertising, I think that will be the number one business factor that will benefit from this because in business world, I think expectations or confidence matters the most. I think the linking of the control measures will give the business or enterprise side, a very good expectation or confidence. So I don't think they will wait to see the growth to happen in realistic, but only the sign of recovery will give them the confidence to starting to do marketing again, and to do customer acquisition, so they can accelerate their growth. So that's why I think in terms of advertising that will be directly linked to the macro economy recovered. I think that's why advertising business will benefits first. And advertising in terms of its volume, that's number one, business. And I think that's very good, a very good sign. And that's very important. And gradually, I think after because this measures just I think announced in this week, so it's still very early to tell but gradually, I think after those measures, was taken all over the country, I think our enterprise value-added services, which are mainly comprised of offline events and some consulting businesses, as well as our subscription business, which comes out a lot of offline training programs and finding courses. I think that will benefit also from this macro. So that will happen a little bit later than the advertising business. But the overall, all three major businesses will benefit. And to qualify that benefit, I think, in terms of advertising, that's the biggest volume that will, let's say, in the first three quarters of 2022, advertising grow, I think the growth rate is between 10% to 20%, if you look at first three quarters results. I think next year, as Mr. Feng just mentioned, I think next year, I don't have will outgrow 2022s performance, which means maybe higher maybe to 15% to 25%, or even higher. That's for growth rate, I think enterprise value-added services, which include the platform, as well as our subscription business, which includes a lot of training programs and courses that will benefit in terms of growth rates, -- growth rate will be greater that will be even greater than the growth rate of advertising business. But in terms of volume that will be smaller than advertising. That's overall, the answer for your first question. I think, now Mr. Feng will answer your second question. Thank you.

So after overcoming many challenges. This year, so we successfully hosted our WISE conference. We have prepare, like Plan B to Plan C, Plan D, Plan F to prepare this conference. So we adopted model and offline format, in Beijing and offline format in Hangzhou. And we're also invited up to 100 distinguished guests, including famous entrepreneur , like the famous investor, , and also economist and some of the government's agencies for this conference. So our conference, attract close of over 4.5 billion across offline, online audiences, and having collaboration with over 50 mainstream media. So from the commercialization prospect, although the primary parts of the conference will have in Beijing and combine these, the offline, in Hangzhou. We have little impact on our revenue of the offline activities due to the impact of the COVID-19 resurgences. So we are much more satisfied with the commercialization this year. So anytime or the web conference is our focus conference. And we will also have a few customized offline events focusing on local clients’ needs like enterprises and commerce. And also, we will have some of the events that will like a small site. So regarding the next year as the COVID-19 restrictions are lifted, we will increase the frequency of growth of major industries and customized events. Also, we will have issued more our own IP events for the next year. So as the reopen of the restriction, we will have more offline events and also it will generate more revenue in 2023 over 2022.

The next question comes from Jing Chen of CICC. Please go ahead.

I will translate myself. My question is about short video business. Can you give more color on the future plan for development and commercialization of your video? Thank you.

So, our short video business is a very important strategy for the end. And so, we used to service more to be customers and so, the short video will service more the end customers and will also help us to obtain more collaboration toward the end brands but also products more attention from the words by user growth. Okay. From the perspective of the end users short video business have generated frequent recognition from the industry in the past year. So for example, 36Kr recently received two gold medals and one copper medal at the China content marking award is the one of the most recognizable award in the industry. So CCMA highly praised 36Kr's excellence in original content production, and content marketing capabilities. In addition, you should remember our followers on Bilibili surpassed 1.5 million at the end of October. Many of our original videos have also amassed a high number of streams. Among them, our original content of topics, released at the end of November has racked up more than 4 million reviews on Bilibili. So the most important thing is that our rank in the institutional medium is so much high. Some of them are like government, or the individual medium that was just beyond us. But as for the institutional media, we are like the first one in the Bilibili. In terms of commercialization short video revenue doesn't force our economy, 15% of our total advertising revenue, an increase compared to the same period last year. The short video formats only effectively increase our average revenue for advertising customer. And it also enhanced the comprehensive of our service to a certain extent, enabling us to provide services to a broader array of advertisers. Thank you.

And there are no further questions. And I'd like now to turn the conference 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 with the contact information provided on our website.

This concludes this conference call. You may now disconnect your line. Thank you.