Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's 2023 Second 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, and good morning, everyone, and thank you for joining Xunlei's 2023 second quarter earnings conference call. On the call with me today are Eric Zhou, Chief Financial Officer; and [indiscernible] Vice President of Finance. Now our earnings press release is available on our IR website, which is intended to supplement our prepared remarks during today's call. For today's agenda, I will first read our prepared opening remarks on behalf of our Chairman and CEO, Mr. Jinbo Li on highlight of our second quarter operations. Then Mr. Eric Zhou, our CFO, will walk you through the details on the financial results and wrap up with our revenue guidance for the third quarter of 2023. After the management remarks, we'd like to welcome any questions from you in our Q&A session. Today's call is recorded, and you can replay the call from our Investor Relations website at ir.xunlei.com. Before we get started, I would 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 on the 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 full statements. Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results. Xunlei assumes no obligation 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 and prepared statements by Mr. Jinbo Li, Chairman and CEO of Xunlei Limited.

Good morning, everyone, and welcome to our 2023 second quarter earnings conference call, and thanks a lot for your ongoing support, despite the challenges to our domestic automation (ph) business, we delivered a strong second quarter with a total revenue of $104.3 million, up 33.3% compared to last year and $5 million in the net income. Our top line growth was well balanced across three base business segments, demonstrating our operational resilience amidst an ever evolving environment. We also achieved a year-over-year growth of 35.9% in gross profit and improved gross profit margin. This serves as evidence of our dedicated efforts to capitalize on the economies of scale and enhanced operations management. Now I would like to add some color to the performance to each of the three business segments. In the second quarter of 2023, our Subscription business generated $29.7 million in revenue, reflecting a 17% year-over-year increase. Throughout this period, we observed a consistent upward trend in premium subscriber conversion rate, which rose from 35.1% in the second quarter of last year to 59.2% this quarter among all paying subscribers. Additionally, the average revenue per subscriber increased from RMB37.8 to RMB42.9 compared to the same period in 2022. I'm glad that our unwavering focus on providing convenient, secure and quick access to our subscription business has yielded encouraging results. On top of that, through engaging initiatives carried out by the team we gained additional and valuable understanding of the users' needs and boosted retention rates accordingly. And I expect that the growth momentum will continue as we keep exploring and testing new ideas and innovating on existing products. Despite strong competition, our Cloud Computing business effectively utilized its competitive edge in shared cloud technology to deliver reliable, scalable and cost effective services to our clients. As a result,…

Thank you, Jinbo. (ph) Hello, everyone, and thank you, again for joining Xunlei's 2023 second quarter earnings conference call. I will walk you through the details of our financial results and wrap up with our revenue guidance for the third quarter of 2023. For the second quarter of 2023, total revenues were $104.3 million, representing a year-on-year increase of 33.3%. The increase in revenues primarily attributed to the enhanced performance of our Live Streaming, Subscription and Cloud Computing business. Revenues from cloud computing reached $30.7 million, representing an increase of 8.2% compared to the second quarter of last year. The increase in cloud computing revenues were mainly driven by higher sales of hardware devices for cloud computing during this quarter. Revenues from subscription were $29.7 million, representing a solid 17% increase year-over-year. This growth was attributed to both higher average revenue per subscriber and an increased number of subscribers when compared to the same period last year. As of June 30, 2023, we had a total of 4.72 million subscribers, up from $4.46 million on June 30, 2022. In the second quarter of 2023 alone, each subscriber growth in an average revenue of RMB42.9 million, which is significantly higher than RMB37.8 during the same period last year. This increase in average revenue per subscriber is primarily due to more users opted for premium membership. Revenues from cloud streaming and other Internet value-added services or IVAS were $43.9 million, an increase of 79.1% year-over-year. The increase of cloud streaming and other IVAS revenues was mainly driven by higher demand for our Live Streaming services. As we mentioned in our press release, we started to downsize our domestic audio live streaming services in the second quarter, and as a result, we expect revenues from this segment will experience a significant decline sequentially…

Thank you. [Operator Instructions] Our first question comes from Retail Investor, Jack Lu (ph). Please go ahead with your question.

[Foreign Language] [Interpreted] Thanks for the question. And the caller asked that he looks at the company is downsizing, its domestic audio, live streaming business and he'd like to know what's the percentage of revenue for the domestic audio live streaming business to the total revenues. And he also would like to know that the anticipated impact of the future overall revenue and whether Xunlei plans to continue downsizing its business in the future.

In the second quarter, we started to downsizing our relatively low gross margin domestic audio live streaming business. And this business accounted for approximately 12.4% of the total revenues in the first half of the year and going forward, we will continue to assess our live streaming and IVAS business and may continue to downsize our domestic live steaming business to improve operations. And we anticipate a declining of about 21.9% in total revenues for the third quarter as compared with the second quarter and that said, I'd like to mention that our Subscription and the Cloud Computing business remains unaffected. Thankyou.

[Foreign Language]

Thank you. There are no further questions at this time. So I'll hand the call back to Eric Zhou for closing remarks.

Well, thank you, again for your time and participation. And if you have any questions, please visit our website at ir.xunlei.com, or send e-mails to our investor relations. Have a good day. Operator, we conclude today's conference call. Thank you.

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