Good evening, ladies and gentlemen, and welcome to the Quarter Three 2005 The9 Limited Earnings Conference Call. My name is Amanda and I will be your coordinator for today. At this time all participants are in a listen-only mode. We will be facilitating a Question and Answer session towards the end of the conference. If at any time you do require assistance, you may key “*” followed by “0”. And coordinator will be happy to assist you. As a reminder, this conference call is being recorded for replay purposes. I would now like to hand the conference over to your host for today, Mr. James Rhee, Senior Director of Investor Relations. Please proceed sir.

Thank you operator. Hello everyone and thank you for joining us today for The9's Third Quarter 2005 Financial Results Conference Call. Management with me today are Mr. Jun Zhu, Chairman and Chief Executive Officer; as well as Ms. Hannah Lee, Vice President and Chief Financial Officer. We also have translator Christine Chen, for today's call. Before we start, I would like to review the Safe Harbor statement. During the course of today's call certain projections or forward-looking statements may be made regarding The9's future financial performance or future events. We wish to caution you that such statements or predictions are based upon current information and expectations and actual results may differ materially from those projected in the forward-looking statements. We would also like to refer you to documents that the company filed with the US Securities and Exchange Commission. Those documents contain additional information concerning factors that could cause actual results to differ materially from those contained in the management's projections or forward-looking statements. Let me now turn the call over to Mr. Zhu, our CEO, who will provide you with an overview of our business for the quarter.

Good morning, ladies and gentlemen. I'd like to thank you for participating in our discussion of The9 Limited., Q3 2005 earnings. First, I would like to present a quick overview of key financial and operating highlights before moving on to a discussion of our strategy and recent developments. The revenue and earnings generating potential of the World of Warcraft, in China markets is now starting to be evident. Net revenue for Q3 2005 was US$22.8 million, representing 232% quarter-on-quarter growth. World of Warcraft operation accounted for 98% of total revenue for this quarter. Net income was US$4.7 million or earning of US$0.19 per ADS compared with a net loss of US$2.8 million in the second quarter. I'd like to note that we had a foreign exchange loss associated of US$1 million related to the RMB appreciation in this quarter, all representing an impact of about $0.04 per share. For Q3 we attained a WoW Peak Concurrent User of 467,000 and ACU of about 240,000. Notably, after our normalization of our customer usage patterns in the month of July, we have witnessed a steady upward trend in ACU during Q3. Most recently our October metrics are very impressive. For October the PCU is over 500,000 and ACU exceeds that of September and new accounts activation continues every day. As of October 31, 2005, over 2.5 million paid accounts have been activated since the commercialization of WoW. We believe that The9's operational know-how and focus on customer needs have led to WoW, a strong start in China. The marketing efforts highlighted by our co-marketing campaign with Coca-Cola, The9's and WoW now command The9 share of the local gaming population. This will help for margin user growth and to sustain the popularity of WoW over the long-run, as we begin implementing a targeted…

Thank you, Zhu and Christine, and hi everyone. I will now take you through a review of our third quarter financial results. Rather than run piece meal over each line item, I will focus on the key points. For the third quarter of 2005, The9 Limited reported net revenues of US$22.8 million, an increase of 232% from the second quarter of 2005 or 2,096% from the corresponding period in 2004. The increase was mainly due to a significant growth in revenues from our online game services, as a result of The9's operations of World of Warcraft for our full calendar quarter. World of Warcraft's revenue accounted for US$22.3 million of third quarter's US$22.8 million total net revenue, or 98%. With PCCU and ACCU of 467,000 and 240,000 respectively in the third quarter average revenue per user-hour, ARPU, was 0.36 in RMB. Note that prior to the launch of World of Warcraft, our revenues were quite small due to the fact that sales of MU, which is jointly operated through 9Webzen, are accounted for using an equity method instead of consolidation. We do receive revenues from MU in the form of game operating support, but such are insignificant vis-à-vis with WoW. Gross profits grow by 207% sequentially to US$11.4 million, with gross margins declining to 50.1% for the third quarter from 54.1% in the second quarter of 2005. The decline in gross margin was primarily due to two factors. First, we recorded approximately one-month amortization of intangible assets of US$0.9 million relating to assets acquired in connection with The9's acquisition of the remaining 31.1% interest in C9I, the entity that operates the World of Warcraft game in China. And second, costs such as internet data center rental, server depreciation and certain costs, certain staff costs incurred prior to the commercial launch…