Good day, ladies and gentlemen, thank you for your patience. You’ve joined Xunlei’s Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will have a Q&A session after a few management remarks. I would now like to turn the call over to your host, Investor Relations Manager, Ms. Megnen Gau. Please go ahead.

Thank you, Operator. Good morning and good evening. Thank you all for joining us today. We welcome you to this conference call to discuss Xunlei’s third quarter 2020 earnings. Joining us today is our CFO, Mr. Eric Zhou. Eric will first deliver a prepared speech on behalf of our Chairman and CEO, Mr. Jinbo Li, and then he will go over some financial highlights for this quarter, wrapping up with our revenue guidance for the fourth quarter of 2020. We will be happy to take your questions after our management’s remarks. Please be limited to two questions at a time, so others can get their questions in as well. Today’s conference call is being recorded and a replay of the call will be available on our IR website afterwards. Our earnings press release was distributed earlier today and is now also available on our IR website. Before we get started, please note that discussions today will contain certain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations under current market conditions and are subject to risks and uncertainties that are difficult to predict, which may cause actual results to differ materially from those made in the forward-looking statements. Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results. We do not undertake any duty to update any forward-looking statements, except as required under applicable laws. During this call, we will refer to both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to comparable GAAP measures can be found in our earnings press release. Please note that all numbers are in U.S. dollars unless otherwise stated. And with that, I'd like to pass the call to our CFO, Eric for prepared remarks.

Thank you, Megnen. Good morning, and good evening, everyone. Thank you for joining us today for our third quarter of 2020 conference call. I am pleased with today's opening remarks on behalf of our Chairman and the CEO, Mr. Jinbo Li. We are delighted to report that the third quarter was a quarter of progress and achievement as we further optimized operating efficiency, launched new products, and explored new partnerships. In the third quarter we made progress in several financial and operating measures, in particular, we improved gross profits and significantly reduced net loss, and we are optimistic that we could carry the positive momentum into the fourth quarter of 2020. Now I'd like to give you a recap of the financial highlights of the third quarter of 2020 and share with you some of the recent developments of the company. For the third quarter, total revenues were up $43.7 million, a 1.4% decrease sequentially. Our cloud computing and other Internet Value Added Services grew 1.1% sequentially, and our online advertising business began to rebound with sequential improvement of 10.8%. The overall gross margin expanded to 51.9%, the highest one since the third quarter of 2018. Our total net loss was $1.5 million as compared with a net loss of $11.8 million in the second quarter of 2020. At the end of the third quarter, our cash, cash equivalents and short-term investments was approximately $246 million as compared with $257.1 million at the end of the second quarter of 2020. And the reduction included about $4.5 million we spent on buying back our stocks. Overall, I believe our business is sound and the financial position is solid. As we began to execute strategies to uncover Xunlei's value after the management's transition in the second quarter, we made significant progress in…

Certainly. [Operator Instructions] We have a question from Trista Yang of Venture Smart. Please go ahead.

Hi, this is Trista Yang from Venture Smart, Hong Kong. I'd like to ask that you will complete development plans for Blockchain business, will you continue to expand Blockchain business or what is the expected impact on the company's future earnings looks like? Thank you.

Thank you for the question. We think Blockchain is still at its nascent stage of an industry development cycle and we view our investment in Blockchain as part of our technology innovation and we are participating in the development of the Blockchain industry. In the coming days, we will continue to carry out our current projects and explore additional ones. As an emerging technology and one of our incubation business, so far, it has not yet generated significant amount of revenues. That being said, we view our investments in Blockchain is a real option and hope to realize its returns in the future. Thank you for your question.

Thank you. [Operator Instructions] We have no more questions from the phone line. May I hand the call back to management, please continue.

Okay, let's just conclude our today's call. Now, if you have any questions in future, please contact us. Thank you. Have a great day.

Ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may now disconnect your lines.