Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's 2022 Fourth Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to turn the call over to the host, Investor Relations Manager, Ms. Luhan Tang.

Thank you. Thank you, and good day, everyone. Thank you for joining Xunlei's fourth quarter and fiscal year 2022 earnings conference call. As of now, our earnings release is available on our IR website, which is intended to supplement our prepared remarks during today's call. On the call with me today are Eric Zhou, Chief Financial Officer; and Lee Hu [ph 0:00:50], Senior Vice President of Finance. For today's agenda, I will first read our prepared remarks by our Chairman and CEO, Mr. Jinbo Li, on highlights of our fourth quarter operations and strategies for 2023. Then Mr. Eric Zhou, our CFO, will walk you through the details on the financial results and wrap up with our guidance for the first quarter of 2023. We'd like to welcome any questions from you after the management's remarks. Before we get started, I'd like to take this opportunity to remind you that the discussion 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 that 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. Xunlei assumes no obligations to update any forward-looking statements, except as required under applicable laws. On this call, we will be using 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. Now the following is prepared statements by Mr. Jinbo Li, Chairman and CEO of Xunlei Limited.

Good morning, everyone. Thanks for joining us today. Fiscal year 2022 was a landmark year for Xunlei and we are thrilled to end the year with record setting revenues of $97 million, up 9.8% sequentially in the fourth quarter as compared with the previous quarter. Total revenues for 2022 were $342.6 million, up 43% year-over-year. Furthermore, we announced last quarter that we expected full year profitability in 2022, and we're proudly to say that we did it. For 2022, we achieved net profit of $21.3 million an increase of 1,825.3% as compared with the 2021. Both the quarterly and annual revenues were the highest in the company's 20-year history. We're pleased with our accomplishments last year, which reflects the resilience of our multi-tested business model, robust R&D capability and unmatched customer value proposition. Now I'd like to provide some details on operating results. I will start with our live streaming and IVAS business. In the fourth quarter, the revenue generated from live streaming and IVAS businesses reached $40.2 million, which accounted for 41.4% of total revenues representing 17.3% quarter-over-quarter growth and 108.6% year-over-year growth. In fiscal year 2022, the revenue reached to $122.4 million up 128.2% compared to fiscal year 2021. The growth is driven by not only our efforts to deepen our penetration into existing markets and continuously tap in to our users' needs to enlarge user acquisition, but also by increasing users demand and improving brand recognition and monetization capability. Now, moving to our cloud computing business. In the fourth quarter, revenue generated from cloud computing business reached to $31.9 million, which accounted for 32.9% of total revenues, up 9.7% sequentially and 13.1% year-over-year. In fiscal year 2022, the total revenue was $119.6 million, up 26.2% as compared with that of fiscal year 2021, accounted for 34.9% of…

Thank you, Luhan. Hello, everyone, and thank you, for joining Xunlei's fourth quarter and fiscal year 2022 earnings conference call. I will now go through the details of our financial results and report with our revenue guidance for the first quarter of 2023. Total revenues were $97 million or 19% increase of 9.8% from the previous quarter. The increase in total revenues was mainly attributable to increased revenues from our live streaming and cloud computing businesses. Revenues from plus computing were $31.9 million an increase of 9.7% from the previous quarter. The increase of cloud computing revenues was mainly due to the increased demand from major customers of our cloud computing services. Revenues from subscriptions were $24.9 million, representing a decrease of 0.2% from the previous quarter. The decrease in subscription revenues was mainly due to lower average revenue per subscriber for the fourth previous quarter and depreciation of R&D against U.S. dollar. The number of subscribers was 4.9 million as of December 31, 2022, compared with $4.37 million as of September 30, 2022. The average revenue per subscriber for the fourth quarter was RMB35.4 compared with RMB39.1 million in the previous quarter. The lower average revenue per subscriber was due to more promotional activities carried out for our subscription business during the fourth quarter. Revenues from live streaming and other IVAS were $40.2 million, representing an increase of 17.3% from the previous quarter. The increase of live streaming and other IVAS revenues was mainly driven by the increased demand for our live streaming products and by our enhanced monetization capability. Cost of revenues were $59 million, representing 60.9% of our total revenues compared with $52.8 million or 59.9% of the total revenues in the previous quarter. The increased cost of revenues was mainly attributable to the increased sales of…

[Operator Instructions] Your first question comes from the line of [indiscernible]. Please go ahead. Your line is open. [Indiscernible] your line is open. Please repeat your question.

I'm sorry. So I need to repeat my question, right? Okay. [Foreign Language].

And your question is, I noticed that your live streaming business has been growing very fast. And [indiscernible] which countries we are mainly operating and whether we are going to expand into other countries? We are now mainly operate in the Middle East, North and Southeast Asian region and in a number of countries such as Indonesia, and Philippines, and some other countries as well. We intend to cost based in existing markets and improve brand awareness and user loyalty through localized operations. So we have no plans at this time to drastically expand into other countries in the near future.

[Foreign Language]

In addition to the live streaming products we intend to explore other potentially significant and breakthrough opportunities overseas. But I intend to not disclose any details at this time, and we'll be happy to share with you our progress when its appropriate. Thank you.

[Foreign Language]

[Operator Instructions] We will take our next question. Your next question comes from the line of [indiscernible]. Please go ahead. Your line is open.

[Foreign Language]

Thank you. [indiscernible]. The question is if Xunlei has any deposit at SVB Silicon Valley Bank. And also he wants to know if we are affected by the collapse of the SVB Bank? And also the second question is, Xunlei has started to make money, and he wants to know if Xunlei is going to pay any dividend? That's a good question. First, we don't have any deposits at SVB and are not affected by the incident. And the second question and for the time being, we don't have any plan to pay dividend. We intend to use the cash for potential growth opportunities for the company. Thanks very much for the questions.

[Foreign Language]

There seems to be no further questions. So I would like to turn the conference back to management for closing remarks.

Well, thanks again for your time and participation. If you have any questions, please visit us at ir.xunlei.com or send e-mails to our Investor Relations. Have a good day. We conclude today's conference call. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect.