Good day, everyone and welcome to the Cheetah Mobile's Second Quarter 2020 Conference Call. After today’s presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. At this time, I would like to turn the conference call over to Helen Zhu, Investor Relations Director of Cheetah Mobile. Please go ahead, ma’am.

Thank you, operator. Welcome to Cheetah Mobile's second quarter 2020 earnings conference call. With us today are our company's Chairman and CEO, Mr. Fu Sheng; and our company's CFO, Mr. Thomas Ren. Following management's prepared remarks, we will conduct a Q&A session. Before we begin, I refer you to the Safe Harbor statement in our earnings release, which also applies to our conference call today as we will make forward-looking statements. At this time, I would now like to turn the conference call over to our Chairman and CEO, Mr. Fu. Please go ahead, Fu Sheng.

Thank you, Helen, and hello, everyone. We delivered overall better than expected results in the second quarter of 2020. Today our total revenue came in at RMB 394 million exceeding the high end of our revenue guidance. Non-cash net income grew to RMB 244 million. However, with the facing challenges in operating our business in the overseas markets we are unable to resume our cooperation with Facebook and Google. As a result, we have difficulty in acquiring new users and monetizing our traffic and our overseas revenue continued to decline. Given today's environment, we are not confident in resuming our cooperation with Facebook and Google. In the domestic markets, the only advertizing impact share has been actively impacted by the pandemic since the beginning of this year, leading to the decline of eCPM. The group [ph] of this headwind we chose to strategically shift our focus from over this market to the domestic market and introduced the users subscription model. Financially, we have reduced costs and expense and the focus on our AI investments in the shopping mall. In today's call, I would like to highlight following. First, we've significantly reduced our costs and expense during the quarter. As a result, the non-cash operating loss narrowed by RMB 8 million quarter-over-quarter in Q2 despite that our total revenue is created [ph] by RMB 130 million from the previous quarter. The revenue decrease was primarily due to the suspension of our collaboration with Google since February 2020, as well as the outbreak of COVID-19, which continued to impact our online advertizing business in China. During the quarter, we cut back our costs and expense for overseas market leading to 61% year-over-year and 31% quarter-over-quarter decrease in costs and the expense for our mobile internet business, namely the utility products and the…

Thank you, Fu Sheng. A good day everyone. Thank you all for joining us today. Now, I will walk you through our financial results. Please note that, unless stated otherwise, all money amounts are in RMB terms and all comparisons are made on a year-over-year basis. As we stated in previous quarters, LiveMe amended its share incentive plan on September 30th, 2019. As a result, we no longer hold the majority voting power in LiveMe and have started to deconsolidate LiveMe's financial results, since the fourth quarter of 2019. To better present our financial results we will also provide year-over-year comparisons excluding the impact of the deconsolidation of LiveMe. Total revenue were RMB 394 million in the quarter exceeding the high end of our revenue guidance for the second quarter of 2020 and represent in the decrease of 59%. Excluding the impact of the deconsolidation of LiveMe, total revenues decreased by 48% in the quarter. This decrease was primarily due to the suspension of our collaboration with Google since February 2020 as well as the outbreak of the COVID-19 which continued to impact our online advertizing business in China during the quarter. By business segment, revenues from utility products and related services were RMB 195 million in the quarter representing 50% of our total revenue in the quarter. Revenues from our mobile games business were RMB 179 million, representing 46% of our total revenue in the quarter. By region, revenue from China accounted for 41% of our total revenue in the quarter, while revenues from overseas markets accounted for 59% of our total revenues in the quarter. By platform PC revenues improved slightly quarter-over-quarter to RMB 118 million and represented 30% of our total revenue in the quarter, while mobile revenue accounted for 70% of our total revenues in the…

[Operator Instructions] And our first question today comes from Vicky Wei from Citi. Please go ahead with your question.

[Foreign Language] Thanks for taking my questions. I have two small questions. The first is about advertising market update. So will management provide some color about the category performance of the advertising market in the second quarter and the third quarter? And my second question is about the U.S. China tension. So lots of Chinese ideas are coming back to China to list or they privatize. So what does management think of this and what is the plan of the company? Thank you.

[Foreign Language] Okay, so I will answer your two questions, so first one is about the industry with good performance for our advertising business. So I think our situation is similar with other players in the advertising industry, as most of our advertising revenue is coming from major domestic platforms. We can see greater contribution from e-commerce and online education and the increased investment for their June 18 promotional content or for summer holiday courses. And in the categories such as automobile and consumer electronics, they marketed more aggressively with that as consumption recovered. Hope, this answers your first question. For your second question is about the, how what's the management view about the delisting from U.S. market or they were listing in Hong Kong capital markets? So yes, we did know that recently many Chinese companies, they have either chosen to delist from the U.S. stock markets or completed new listing in the Hong Kong Stock Market. Meanwhile, we also noticed that many Chinese companies have completed their successful U.S. IPOs in the past couple of months. So, I believe that the different capital markets provide a variety of options for different companies at different growth stage. So for us, that Cheetah Mobile’s Management, our top priority is definitely the company's business development and growth. At the same time, we also pay attention to various options available in different capital markets. So yes, for sure if we have any plan we will disclose to the public as soon as possible.

Thank you.

[Operator Instructions] And ladies and gentlemen, at this time and showing no additional questions, I'd like to turn the conference call back over to management for any closing remarks.

Thank you all for joining us today. If you have any further questions, please do not hesitate to contact us. Thank you so much. Bye.

Ladies and gentlemen with that, we will conclude today's conference call with you. Thank you for attending. You may now disconnect your lines.