JOYY (JOYY) Q2 2026 earnings call transcript

Thank you, operator. Hello, everyone. Welcome to JOY's second quarter 2026 earnings conference call. Joining us today are Ms. Qing Li, Chair President and CEO of JOY, and Mr. Alex Liu, Vice President of Finance. For today's call, management will provide a review of this quarter, followed by a Q&A session. The financial results and webcasts of this conference call are available on our IR website, ir. joey. com.

Please note that today's call contains forward-looking statements made under the CIF-HUPA provisions of the U. S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report on Form 20F and other documents filed with the SEC. Please also note that JOY's earnings press release and this conference call include disclosures of GAAP and non-GAAP financial matters. A reconciliation of these non-GAAP matters to GAAP matters is included in today's earnings press release. All figures referenced on today's call are in U. S. orders, unless otherwise noted. I will now turn the call over to our chairperson and CEO, Ms. Qing Li.

Please go ahead.

Hello everyone, I'm Li Keen. Thank you for joining us. Building on a strong first quarter, we delivered another solid result in Q2. Recording accelerated revenue growth and notably improvement in upgrading profit. Our social entertainment, bigger aid, and shop line business all advanced in tandem. While our globally diversified ecosystem continued to unlock growth momentum, propelling our long-term value to its next level.

In the second quarter, we generated total revenue of $591 million, up 16.3% year-year and 6.3% QQ. Social entertainment revenue was $423 million, up 7.4% year-year and 5.6% QQ. Bigger A, including both first-party and third-party businesses, generated $134 million in revenue, up 53.1% year-year. With our third party, Big Odom's network sustained strong growth of 74.1% year-year. Shopline revenue reached $34 million, with year-year growth further accelerating to 28.6%. Non-lifstreaming revenue supports 31.8% of total revenue for the quarter.

Nong-Gap operating profit reached 49 million, up 28.2% per year, and Nong-Gap EBITDA reached 57 million, up 18.1% per year. Operating cash flow for the quarter was 65 million. As of 2020-2026, we held 3.06 billion in net cash. Since the start of this year, we have accelerated our capital returns. Year to date, through August 21, 2026, We report your accumulative 215 million in share and paid 142 million in this. For total return of 359 million in shareholders, meaningful shareholders returns remain a key part of our strategy as we continue to execute our 1.5 billion shareholders return program. at this mid-year mark, I would like to take a few minutes to share our perspective on our overall strategy.

Today, JOY is steadily involving Inter a multi-engine global technology company. In the first half of this year, the call social entertainment business maintained a steady recovery, with all flagship products returning to solid growth and profitability continuing to improve. This further validates the effectiveness of the judgments we have made to our content ecosystem, user experience, and look-alike operations over the past several quarters. At the same time, our second growth curve comprising ad tech and smart commerce, such as a strong performance, making an increasingly greater contribution to the group.

Looking ahead, we remain committed to building a global technology ecosystem driven by AI. By leveraging the synergies of social entertainment, programmatic advertising, and omnichannel e-commerce, We are fueling our growth's fly view and building the call competitiveness that will define our future.

First, social entertainment remains an important strategic cornerstone for the group. We will continue to strengthen the growth momentum and profitability of our core products. While accelerating the build out of our social product portfolio, these initiatives are expected to further reinforce the recovery trend and growth resilience of our core business, providing a stable foundation for profitability cash flow generation. At the same time, we are calling our ad tech and smart commerce businesses to boost overall revenue expansion. We will prioritize enhancing the stand-alone competitiveness of each business, expanding our customer base and business footprint, and further depending on our data, technology, and product capabilities.

Looking ahead to 2028, as this business continues to scale, we currently expect non-live streaming segments to contribute close to half of the group's total revenue and operating profit. We see this as a testament to the strength of our monkey engine growth strategy and the validation of our long-term strategic approach.

AI is a critical foundational technology supporting our long-term strategy across all of our businesses. We continue to leverage AI to drive multiple products, enhancements, and efficiency gains across the range of scenarios, including our streamer ecosystem, content distribution, payment experience, advertising vertical models, and shopline merchant operations. We are also applying AI to enhance our data analysis, decision making, and execution capabilities. By turning proven experience and workflow into replicable AI capabilities, we can accelerate knowledge sharing and skill best practices, further improving overall of training efficiency.

In addition to our long term business development, shareholder returns remain a persistent strategic priority. Our strong cash position and robust operating cash flow provide a solid foundation for ongoing business investment and shareholder returns. We expect to continue actively advancing I will share reportage and the dividend programs as the company grows over the long term. We remain committed to validating the strategic pass-through solid operating results, driving great market recognition of our long-term value.

Next, I will walk through our Q2 results and share our outlook for the future. In Q2, social entertainment revenue grew 7.4% year-year and 5.6% QQ. Within this segment, live streaming The call live streaming paid users grew 3.9% year-year and 1.7% QOQ. On the traffic side, our global average mobile MAUs reached $277 million, up 5.5% year-year, supported by We have a strong user engagement and organic growth. Our instant messaging product increased its contribution towards total M. O. s to 82%. Legal Life, our flagship product, recorded stronger sequential growth in Q2. This momentum was driven by ongoing enhancements to our streamer incentive and the growth mechanism, a greater content ecosystem, and AI-powered improvements to content distribution and payment experiences.

Alongside localized of reading campaigns, together, these efforts effectively drove user engagement and greater willingness to pay. In Q2, Bigel Life average daily active streamers increased 4.4% Q2, while newly signed streamer-going lives increased 5.4% Q2. As we further enhance our streamer recruitment, incubation, and development, mechanisms, the supply of high-quality content on our platform should continue to expand. In content distribution, we continue to develop and refine our AI-driven content understanding capabilities. In particular, our focus is on improving onboarding content for a few users and depending users' consumption. By more specifically identifying and distribution high quality content across regions, we can better match content with users' interests and improve their consumption experiences. To improve payment experience, we have been expanding our AI-generated content and interactive virtual gifts.

In May, these gifts accorded for 34.3% of total virtual gift consumption. For the validating value of AI in reaching our content supply and enhancing users' interactive experience. At the same time, our new voice products continued to drive solid growth. In Q2, revenue from these new products increased more than 400% year-year and 39% QQ, gradually becoming a meaningful completement to our social entertainment growth. Our current Q3 guidance projects moderate single-digit year growth for social entertainment revenue. In the second half, we will continue to strengthen localized operations, enrich content supply, and further optimize user and payment experiences. As call live streaming paying users expand steadily and our new voice product portfolio contribute to further incremental growth, we expect stronger momentum for our social entertainment business.

Based on current trends, we are confident that our social entertainment business will achieve four-year revenue growth in 2026 and such a steady growth trajectory beyond. In Q2, Bigel A's generated $134 million in revenue, up 53.1% year-year and 7.1% QQ. Notably, our third-party business, the Big Audio Network, continued a strong momentum, delivering 74.1% year-year growth and 9.3% QQ growth, accelerating traffic expansion, a more diversified advertiser mix, omni-channel positioning, and the significant algorithm efficiency gains are all strengthening the fly-view effect.

On the supply side, Bigel 8's developer ecosystem and the global traffic coverage continued to expand. Our SDK traffic maintained a steady increase of 37.7% On the demand side, our strategy presents across multiple verticals combined with AI-driven algorithms, integration, zero-in traffic scale, and regional market expansion job strong advertiser demands. As a result performance advertising demand across multiple channels including web and IAA delivered standout result Web demand primarily from lead generation and e grew 91 year and 14 QQ In Q2 we continued to expand our advertiser base in several verticals such as base e Further in rating our advertiser mix as we approach the peak seasons in the second half we are making early preparations in Q3 and I remain optimistic about the growth, prospects of web-based demand.

Meanwhile, NIA spending recorded 70.3% year-year growth. On the algorithm side, continued investment in algorithm and engineering infrastructure, Light-form algorithm capability and cost efficiency and converting into positive circle that will drive the next stage of bigger investment. As we accumulate customer feedback data and refine our multi-channel attribution capabilities, Our user profiling and targeting capabilities are improving. Building on this, we continue to integrate our vertical specific models and strengthen our platform algorithm capabilities. We are focusing on traffic segmentation and budget matching, traffic bidding, and post-campaign organization. Together, these efforts are improving the matching efficiency between budget and traffic. We offer an overall monetization efficiency. At the same time, we are advancing upgrades to our algorithm and engineering system and continuously optimizing compute scheduling and several costs, which allow us to manage infrastructure costs more efficiently, even as required values, scaled repairs.

As we build our three layer system of vertical algorithm, platform algorithm capabilities, and engineering infrastructure, the data accumulated from growing customer and traffic base will feed back into model optimization, if ever. We expect this will drive value circle across delivery performance, advertiser budget, and traffic monetization efficiency, and provide stronger technological momentum for the next stage of skill growth in our advertising business.

Looking ahead, we will continue to depend our forecast on key verticals such as lead generation, e-commerce, and gaming. We aim to further bolster our different short-heat competitive advantage by expanding customer scale and density, We are continuing to scale. We expect a steady structure improvement in profitability, Good morning, and welcome to the JOY Inc. In 2021, business from cross-border merchants sustained strong growth of 73.5% a year, driving the acceleration in offshore revenue for the election. Last quarter, we reported shopline as a standalone segment for the first time and defined it as the AI native one-stop omnichannel commerce infrastructure. What we offer merchants is not simple as a top-route build, but a full, open, connectable, and extensible omnichannel retail operating system.

I would like to take this opportunity to share how AI is bringing new changes to the e-commerce industry and to shop lines. AI is fundamentally reshaping and the way consumers discover products, compare options, and complete purchase. A new traffic and transaction entry points emerged. Commercial scenarios were becoming more diverse and fermented. Against this backdrop, merchants need a unified, open, and connectable e-commerce infrastructure more than ever when that links products, transactions, and customer relationships across different channels. As commercial interpoints diverge and diversify, merchants demand for the unified operating system growth, making shoplines value as the omnichannel commerce infrastructure even more pronounced. In the first half for shop line, merchant page views from AI channels grew nearly 15 fold year-year, and the older items grew over 35 fold year-year.

It's gradually becoming a common e-commerce scenario for consumers to discover products through AI and entry. Point and complete transactions directly in merchant stores. ShopLine has expanded its integration with multiple leading AI agents, including Tri-GPT, Cloud, and Cursor. This enables merchants to capture the traffic and transaction from these new entry points. Well, converting orders, customer relationships, and operating data across channels into a lasting asset for merchants. Drawing on more complete operational data accumulated on shop line, AI can better process and interpret a merchant's actual operating conditions and use that understanding. to improve operations and decision-making efficiency. In addition, ShopLite's call palette, which allows merchants to manage their online dorms more efficiently using natural language, has entered internal testing.

Our goal is not only to leverage AI to unlock new traffic entry points for merchants, but also to grant We gradually integrate AI across the entire merchant operating journey, helping merchants connect with consumers, managers, operations, and drive growth more efficiency in an increasingly fermented business environment. Our revenue is powered by two engines. On one hand, high retention subscription services provide a stable revenue foundation. On the other, value-added services such as payment and marketing allow us to participate more deeply in merchant GMB growth. As merchants reach consumers through more channels, driving continued growth in outer volumes and GMV, short lines revenue will expand accordingly. In Q2, value-added services maintained rapid growth and continued to increase their share of revenue.

Because value-added services like payments technically carry lower cross-margin and subscription services, this revenue makes shift to the modest sequential pullback and grows margin from Q1. What matters more to us is that value-added services can scale our exciting merchants based on platform capabilities without a proportional increase in skill and ID investment. As a result, their ongoing growth is expected to deliver stronger operating leverage, driving steady improvement in shop-line operating profit at margin. As mortgage base and G&B continue to increase, we expect value-added services to make a great contribution to shopline revenue and profit expansion in the future for the alliance of long-term growth with mortgage supplies. Our current Q3 guidance implies shopline revenue growth rate in the middle 20th year-year, as revenue and growth profit continue to increase and updating efficiency further improves.

Shopline remains firmly on track along its established path in profitability. Moving on to the share buybacks, in Q2, we re-purchased a total of $108 million in shares through August 21 of this year. We have re-purchased a total of $216 million, maintaining an accelerated buyback pace. Given our strong operating momentum and long-term prospects, we believe our current share price does not yet fully reflect the company's intrinsic value. Going forward, we will continue to actively advance our share-back program while balancing business, investment, and long-term investment. As our social entertainment and advertising businesses grow in skill and profit contribution, we will continue to work with our board to further refine our shareholders' return-free work, Allowing shareholders to more fully benefit from the company's upgrading results.

In closing, our Q2 results will validate our mountain entry growth strategy. The value of our strategic positioning and ecosystem is only beginning to unlock. Looking ahead, as each of our three business segments become stronger and more competitive, we expect greater synergies across the group, driving our long-term value creation to its next phase.

With that, I will now hand the call over to S. Liu, our vice president and finance, to walk through our financial results in detail.

Thanks, Misty. Hello, everyone. In the second quarter of 2026, we recorded total net revenues of 591 million, securing a year-over-year growth of 16.3 million. We have a lot of questions about the Q&A, and the Q&A was 16.3%, and Q&A growth of 6.3%. Our non-GAAP EBITDA for the Q&A was 57 million, up 18.1% year over year, and 24.4% Q&A. Our operating cash flow was 65 million, and we ended the quarter with roughly 3.06 billion in net cash.

As previously communicated, we accelerated our share buybacks since the start of 2026. As of August 21, we have bought back 128 million worth of our shares under the up to 600 million share repurchase program authorized in May, bringing total share repurchase to 216 million year-to-day. I will now dive deeper into our detailed financial performance. Real entertainment revenues were 423 million for the second quarter, up 7.4% year over year, and 5.6% quarter over quarter. In particular, live streaming revenue growth accelerated to 7.3% year over year, and 5.9% quarter over quarter, Further confirming the recovery momentum of our call business. Call live streaming paying users increased by 3.9% year over year, while app retained to positive growth up 2.4% year over year.

Live streaming revenues from developed countries continued to deliver strong growth, increasing by 11.8% year-over-year. Beagle ads revenues increased by 53.1% year-over-year and 7.1% quarter-over-quarter to $174 million. In particular, our short-party advertising business, Vigo Audit Network, delivered another exceptional results, recording 74.1% year-over-year and 9.3% sequential growth.

On the traffic front, SDK Network and ad request increased by 37.7% year-over-year in the second quarter. We continued to optimize our organization to improve and contain performance and drive advertisers by new. Our multi-vertical strategy also helped us capture broader market opportunities. Web-based demand increased by 91.7% year-over-year, while mobile-based demand remained strong with RAA expanding up 70.6% year-over-year.

We remain firmly committed to our three strategic goal for big goal audience network of billion in revenue As the visit continues to scale we are confident in its ongoing profitability with room to further improve its economics over the medium term Supply generated revenue of $34 million, with growth accelerating to 28.6% year-over-year and 12.5% quarter-over-quarter. Revenue from cross-border merchants increased by 73.5% year-over-year, while its revenue contribution It was by 7.2 percentage points compared with Q2 last year, making it an increasingly important driver of supply's overall growth.

Growth's growth profit was 202 million in a quarter, at 8.8% year over year, and 6.5% quarter over quarter. This growth margin remaining increasingly flat at 34.1%. Social entertainment growth margin was up quarter over quarter as we continued to improve user engagement and monetization. Vigo ads growth margin was down quarter over quarter due to a shift in revenue mix, reflecting a higher contribution from lower margin supply advertising revenues. Supply's growth margin was also down quarter over quarter, primarily driven by a higher contribution from lower margin value added service, particularly payments and marketing. While the service carry lower growth margin than subscription revenues, they technically require less incremental sales and R&D investment to scale. We therefore believe this makes safety view of benefits, supply, operating leverage, and long-term profitability.

Our operating expenses for the quarter were 188 million, up 4.7% year over year, and 2.6% quarter over quarter. Shows and marketing expenses were higher year over year, consistent with the revenue increase. G&A expenses were also higher year over year, primarily due to increased share-based compensation expenses. R&D expenses were lower year over year as we remained prudent and disciplined in our total spending through enhanced resource sharing and operational synergy across different Business units, while strategically allocating incremental shares of our R&D resources towards bigger ads. Our non-GAAP of income for the quarter was $49 million, up 28.2% year over year, and 29.4% quarter over quarter. Non-GAAP net income, attributable to controlling interest of JOY In the quarter was 63 million, representing a non-GAAP net margin of 10.7%.

Our non-GAAP net income was lower year-over-year due to a higher FX loss of $40 million as the US dollar vacant. Excluding the impact of FX losses, our non-GAAP net income would have been 77 million, broadly in line with the prior year. For the second quarter of 2026, we booked net cash inflows from operating activities of 65 million. Our balance sheet remains healthy with a strong net cash position of 3.06 billion as of June 30, 2026.

Now, moving to capital allocation. Shareholder returns continued to be an important component of our capital allocation strategy. As of August 21, 2026, we have retained $359 million to our shareholders through debt-ins and share repurchase this year, already exceeding the total amount retained to shareholders for the full year of 2025. We believe we remain substantially unvalued and will continue to actively execute our share repurchase program. Turning now to our business outlook. Driving by continued growth momentum across our social entertainment, vehicle ads, and shopline business. We expect our total net revenues for the third quarter of 2026 to be between 602 million and 622 million, implying year-over-year revenue growth of 11.4% to 15.2%. For the full year of 2026, we remain confident in delivering solid revenue growth across the group.

On the profitability front, backed by a better than expected operational performance in the first half of the year, and enhanced operating leverage from improved efficiency across our business segments. We now expect the group's full year 2026 non-GAAP operating income to grow around 20% year over year, up from our previous expectations of teens level growth.

To summarize, we delivered a strong set of results in the second quarter, with all three The business segments delivering encouraging growth and operating profitability continue to improve. Looking ahead, we remain confident in our growth outlook and we will stay focused on improving operating efficiency, sustaining profitability growth, and creating long-term value for our shareholders. That concludes our prepared remarks. Up later, we would now like to open up the call to questions. Thank you.

and the other side of the show. From the previous data, we have seen the quality of the program. and in this basis, we will keep the growth of the growth of the team.

and AI-driven improvements across content distribution, user content consumption, and payment experience. These AI-driven enhancements to the user experience further drove sustained improvements in team conversion rates. Therefore, our core live streaming pain users grew through 3.9% year. From a regional perspective, this recovery continues to be driven by revenue growth in the developed market. The Middle East market also delivers solid sequential growth, driven by our new voice product portfolio. Our current third quarter guidance projects moderate single-digit yield growth for social entertainment revenue. As CoreLive streaming paying users continue to grow steadily, and the new voice product portfolio contributes further incremental gains, We expect the growth momentum of our social entertainment business to continue strengthening. Based on current trends, we are confident that our social entertainment business will achieve full-year revenue growth in 2026, while maintaining steady business momentum.

Thank you. In the video, we will continue to increase the overall coverage of the network. We will now turn the call over to management for the show. In the business of business, we will continue to keep the market and keep the market and keep the market.

Thank you, Daniel, for your question. I will take your question. In the second quarter, our third-party advertising business sustained a strong growth momentum, with revenue increasing 74.1% year-over-year and 9.3% quarter-over-quarter, exceeding our previous expectations.

Growth in traffic and advertiser budgets together with continued improvements in our advertising algorithms further strengthen our business flywheel. On the traffic side, we continue to deepen our partnerships with mediation platforms such as max and level play, further expanding our global reach while maintaining steady growth in SDK traffic. On the demand side, our strategic presence across multi verticals continue to drive strong advertiser demand. Leveraging our established capabilities across lead generation, web e-commerce, and in-app advertising, our second quarter web-based demand grew 91.7% year-over-year, while IA spending grew 70.6% year-over-year. At the same time, we continue to expand our advertiser base in sub-verticals across lead generation and other key verticals, further enriching our advertiser mix. On the platform side, as traffic and budgets expand rapidly, we are continuously iterating our algorithms and data capabilities, driving more vertical specific optimizations and enhancing our bidding and delivery strategies.

At the same time, we are advancing AI-driven upgrades to our algorithm and engineering systems, optimizing compute scheduling to manage infrastructure costs efficiently, even as request volumes grow rapidly. Based on current business trends, we are highly confident that our third-party advertising business will continue to deliver strong growth.

Turning to profitability, our third-party advertising business is still in a rapid expansion phase, requiring continued investment in research and development, sales capabilities, and infrastructure this year.

Hey Thomas, how are you? Thank you for your question. I'm Alex. I'll give you a question. From the revenue level, the second year of the year, the third year of the year, the third year of the year, the third year of the year, the third year of the year. That's what we expect to see. We will now turn the call over to management for a big-end. GOOSE Good morning, and welcome to the JOY Inc. We will now turn the call over to management for the next year. And you can see the data from the E&C. earnings conference call.

Good morning, Thomas. Thank you for your question. Looking ahead to the third quarter of 2026, our current guidance implies 11.4% to 15.2% EUV growth. For our total revenue, for business segment, for social entertainment, we expect the third quarter revenue to deliver moderate single digit year-over-year growth. EgoS will continue to deliver strong double-digit year-over-year growth in Q3. For Shopline, we expect it to remain more than 25% year-over-year growth. For the full year 2026, we expect social entertainment to deliver steady year-over-year growth. For BigOS, with continued traffic expansion, deepening multiple vertical advertiser base, and ongoing algorithm optimization, we expect strong mid-double-digit year-over-year growth for the full year. For shop line, supported by maturing product capabilities, accelerating cross-border merchant penetration, and new market expansion, we expect its year-over-year growth to further accelerate, exceeding 20% year-over-year growth for the full year 2026.

With all these three segments on an upward trajectory, we are confident in the solid revenue growth for 2026. Regarding operating profits, looking at the third quarter, we expect our non-DAAP operating profit to continue its year-over-year growth trend. While operating expenses are expected to rise slightly, quarter-over-quarter, due to the seasonality of certain cost items. For the full year 2026, regarding social entertainment, as live streaming returns to steady growth, overall live streaming operating profit will maintain modest year-over-year growth. As we mentioned earlier, with continued scale expansion, BigOS midterm profitability is also expected to steadily enhance. For shop line, with relatively fixed operating expenses, the growth of revenue and gross profit will continue to drive narrowing of its operating losses.

In summary, based on the better than expected overall operating performance in the first half of the year, as well as the operating leverage brought about by improved operating efficiency across businesses, We expect our full year net gap operating profit to achieve around 20% yield growth in 2026. We guided up our guidance. On net profit, I would like to add on a little bit regarding the foreign exchange loss items. Due to the continued weakening of the US dollar, we recorded significant unrealized foreign exchange losses in the first half, And we expect a similar trend in the third quarter. However, these are non-operational market-to-market fluctuations and are unrelated to our underlying operating performance. Conversely, a strengthening U. S. dollar would also result in unrealized foreign exchange gains.

Operator, next question, please.

Thank you, Brain. This question is to answer. As we mentioned earlier, AI is becoming a business industry and shopline. It will bring new opportunities to the market and market. With the new supply and market flow, the market will be more diverse and more diverse. The demand for the business industry will be more powerful. This is the趋势 of the market. Shopline as a business industry as a whole, we will be looking for the value of the business industry. We will be looking for the long-term development. Our business model and growth growth is highly similar. This is the second year of the company. Thank you Brian for your question. As we discussed earlier, AI is creating new growth opportunities for both the e-commerce industry and shopline.

As the new traffic and transaction entry points continue to emerge, The commerce landscape is becoming increasingly diverse and fragmented, driving stronger demand for a unified operating system from merchants. This trend will further underscore shopline's value as an omnichannel commerce infrastructure. We remain firmly confident in the long-term prospects of this market. Our business model is closely aligned with the success of the merchants. Subscription fees provide us with a stable and recurring revenue base. Value-added services such as payments and marketing services enable us to participate more directly in the growth of the merchant transactions and GMV. As merchants expand across more channels and scale their businesses on shop line, they tend to adopt more of our services, Making the platform increasingly valuable to them.

As a result, our growth is driven not only by new merchant acquisition, but also by the continued growth of existing merchants and the increasing penetration of our services. We have already seen this dynamic play out in our cross-border business. In the second quarter, revenue from cross-border merchants, mainly led by brand customers, The growth of the company's brand customers grew 73.5% year-over-year, helping drive a further acceleration in Shopline's overall revenue growth. On the roadmap to break even, our R&D expense, which has been our primary OPEX for Shopline, has largely stabilized. Continued growth in revenue and gross profit is driving operating leverage, resulting significant narrowing of shopline's losses. With gross profit continuing to grow and operating expenses remaining relatively stable, we are confident that shopline will further narrow its losses in 2026 and the rich operating break even by 2028.

We have already raised 1.28 million. So, the value of the investment and revenue revenue is still in the same way. The Good morning, and I will continue to continue to advance the trade.

Thank you, Sato, for your question. As I just mentioned, since the beginning of the year to August 21st, we have already bought back 216 million U. S. dollars of our shares in total. Even under the new share buyback program authorized this May, as of August 21st, we have bought back 128 million U. S. dollars of our shares. There is no inherent trade-off between investing for growth and returning capital to shareholders. We are backed by a strong net cash balance and robust cash generating capabilities. Firstly, we have a net cash position of 3.06 billion U. S. dollars on our balance sheet by the end of the second quarter. Secondly, all these three of our business segments have embarked on well-defined growth trajectory.

which will drive continuous improvement in underlying business fundamentals and cash flow contribution. Therefore, our shareholder return framework is built on an exceptionally solid and resilient foundation. We believe that the current share price still does not fully reflect the long-term growth potential of our three businesses. And our active share buybacks demonstrate the confidence from the senior management team in the company's longer-term value and prospects. Going forward, we will continue to actively return capital to shareholders. As our operating profit continues to grow, we believe shareholders can look forward to greater returns in the long run. Thank you.

Yeah, thank you for all of the questions. So we may conclude the call today. If you have any further questions, please feel free to reach out to the IR team. Thank you.