Ladies and gentlemen, thank you for standing by, and welcome to the AirMedia Fourth Quarter and Fiscal Year 2012 financial results earnings conference call. [Operator Instructions]. I must advise you that this conference is being recorded today, Friday, the 15th of March, 2013. I would now like to hand the conference over to your speaker today, Mr. Raymond Huang, Senior Director of Investor Relations. Thank you, sir. Please go ahead.

Hello, everyone. Thank you for joining AirMedia's fourth quarter and fiscal year 2012 earnings conference call. Today Herman Man Guo, our Chairman and CEO, will present highlights for the fourth quarter of 2012, and Henry Ho, our CFO, will provide details on our financial results. Following their prepared remarks, the management team will be available to take your questions. Before management presentation, please allow me to read you our Safe Harbor statement. During this conference call, representatives of the company will make certain forward-looking statements. These statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements. AirMedia does not undertake any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Please refer to AirMedia's filings with the SEC including its Form 20-F for a discussion of important factors that could affect future results. A press release and this call includes discussion of unaudited GAAP financial information as well as some unaudited non-GAAP financial measures. A press release contains a reconciliation of unaudited non-GAAP measures to unaudited most directly comparable GAAP measures. The press release is available on the Investor Relations section of AirMedia's website at ir.airmedia.net.cn. I would now turn the call over to our Chairman and CEO, Herman Man Guo.

Thank you, Raymond. Good morning and good evening, everyone. Total revenues for the fourth quarter of 2012 reached US$84.2 million, representing a year-over-year decrease of 4.2% from US$87.8 million and quarter-over-quarter increase of 15.2% from US$73.1 million. The year-over-year decrease was primarily due to decreases in revenues from digital TV --

Ladies and gentlemen, your speaker has experienced some technical difficulties with their line. Please stand by while we address this situation. You'll be on a music hold until the conference resumes.

I would now like to hand the conference back to the speaker, Mr. Raymond Huang, Senior Director of Investor Relations. Please go ahead, sir.

Sorry, everyone, we got some technical problems just now, we got distracted. Now Herman will read his script from the beginning. Herman, you may begin.

Thank you, Raymond. Good morning and good evening, everyone. Total revenues for the fourth quarter of 2012 reached US$84.2 million, representing a year-over-year decrease of 4.2% from US$87.8 million and quarter-over-quarter increase of 15.2% from US$73.1 million. The year-over-year decrease was primarily due to decreases in revenues from digital TV screens in airports, traditional media in airports and gas station media network, as well as China’s replacement of regular business tax with the value-added tax in Beijing, one of AirMedia’s key regions of operations. In the fourth quarter of 2012 we saw more declines in advertising from Japanese brands, especially Japanese automobile manufacturers. But our diversified customer base enabled us to compensate for the adverse impacts from the anti-Japanese protests in China. The increase in advertising spending from other automobile brands and consumer growth from other advertising sectors more than offset the loss in Japanese brands. Automobile advertising, [our top one advertising industry], increased by 10% year over year and 21.6% quarter over quarter. Thanks to the strong growth in advertising from automobile manufacturers and sequential growth from most of our top ten advertising industries, we were able to raise our net revenue guidance of the fourth quarter of 2012 in January 2013 and meet our guidance at the high end. In the fourth quarter of 2012, we also achieved income from operations of US$6.5 million, a record-high quarterly number for us in the past four years. Our mega-size LED screens have become the biggest growth driver for our company in 2012, even though many of the mega-size LED screens currently in operation commenced operations in the second half of 2012. We currently operate mega-size LED screens in seven airports and are in the process of installing mega-size LED screens in another four airports. With the operations of our mega-size…

Thank you, Herman, and thanks to everyone for joining our fourth quarter and 2012 financial reviews. Let me start with two highlights. First, on revenue. With advertisers' tightened advertising budgets in 2012, we were still able to deliver 15.2% quarter-over-quarter increase in total revenues in the fourth quarter. Total revenues for the fourth quarter of 2012 reached US$84.2 million, representing a year-over-year decrease of 4.2% from US$87.8 million in the same period one year ago and a quarter-over-quarter increase of 15.2% from US$73.1 million in the previous quarter. The year-over-year decrease was partially due to China's replacement of regular business with VAT in Beijing, one of AirMedia's key regions of operations. As Herman mentioned, prior to September 1, 2012, revenues were recorded gross of business tax. Subsequent to this change, revenues are recorded net of VAT as from September 2012 onwards. Now, revenues from most of the company's product lines now are booked in total revenues. Given -- [in the above] fourth quarter 2012 breakdown, these revenues were already net revenue after deducting VAT. I repeat, after deducting VAT. Revenues in the fourth quarter of 2011, for the previous year, and most revenues in third quarter of 2012, they're all booked before deducting business tax. I repeat, before deducting business tax. So this tax change was partially the reason for the year-over-year decrease in revenue, and partially offset the quarter-over-quarter increase in revenue. As such, year-over-year and quarter-over-quarter revenue comparisons cannot be made easily when revenues are not booked on the same basis. My second highlight is one key financial indicator. Net revenues of fiscal year 2012 grew by 6% year over year while cost of revenues only increased by 2.5% year over year. Non-GAAP adjusted net income for fiscal year 2012 increased by 669% year over year from US$468,000…

Certainly. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions]. Your first question comes from the line of Jin Yoon of Nomura. Please go ahead. [Jiong] – Nomura: Hi. [Jiong] calling for Jin Yoon. Thank you for taking my questions. First of call, can you share with us the top five sectors in the quarter in terms of the revenue contribution? And also, given the strong performance of the auto sector in the fourth quarter, can we also get some more color on the outlook for the auto sector into 2013? Thanks.

Okay. Okay, let me answer the first question. In the fourth quarter, the top five categories are, the first one, auto, which accounted for 35%; and the second one is finance, accounting for 13.5%; and the third one, consumer electronics, accounted for 9.7%; the fourth, high-end food and beverage, accounted for 8.2%; the five is apparels, which accounts for 4.4%. And Herman will answer the second question about the 2013 auto outlook.

Okay. [Chinese language spoken]

We expect in 2013 the auto will continue to have increase in 2013. The Japanese brands, they were impacted due to the [inaudbile] Japan [first half] in 2012, so we expect in 2013 they will increase their advertising budgets. And for other auto brands, we expect some of them will be stable, some of them, after we have the discussion with them, we expect they will have certain increase. So overall, the advertising AirMedia we expect auto will -- to have certain increase in 2013, and continue to be over 30% of our total revenues. Does that answer your question? Thank you. [Jiong] – Nomura: Yes. Thanks very much.

Your next question comes from the line of Gillian Chung of Morgan Stanley. Please go ahead. Gillian Chung – Morgan Stanley: Hi. Thank you for taking my question. First of all, I would like to know about how many numbers of advertisers do you have for this quarter? And then, can you just add just some color about your pricing trends? For example, did you raise the price? And also, what percentage of your full-year sales has been secured by presales? I have another question, thank you.

Okay, let me answer the first question. In the fourth quarter we have accumulated 1,798 customers. We added 82 new customers. And I will give the question -- the second and third questions to Herman.

Okay. [Chinese language spoken]

As you know, we're installing and expanding our mega-size LED network, so in 2013 for those mega-size LED, we actually have certain price increase. And for the 108-inch standalone digital frame [inaudbile] areas in Beijing Capital International Airport, we also expect to increase the price. And overall for standalone digital frames and digital TV attached digital frames will maintain the same price as 2012. And for digital TV in airport, we expect to have certain promotion. We'll give certain discounts to advertisers. And Henry will answer the third question about the sales ratio.

And Gillian, as you know, most advertiser starts to look at their full-year budget in the first quarter of the year. And so far, very similar to last year, we look at their booking, presale, and that's around 30% of what we think the full year will come in. And if you look at the first quarter, based on our guidance, actually is based on what we have -- at least 90% of that is already based on what we've seen coming in. But we expect that all this forward one year booking presale will come in as we go on over the next one or two months. Thanks. Gillian Chung – Morgan Stanley: And I have another question on traditional media. In the press release, the upgrade is behind schedule. So when do we expect the upgrade will complete? And what would be the financial impact? Thank you.

[Chinese language spoken] Okay.

There were some sectors impacted we're upgrading. Herman mentioned that the Spring Festival period we could not upgrade the media format, so that impacted our progress. And after the Spring Festival, then there was the opening of the National People's Congress and Chinese People's Political Consultative Congress. So during that period we could also not upgrade some media formats. So the TV upgrading was also harder than our -- originally expected. So, Herman expected that the impact will be finished by the end of first quarter, we expect there will be minimum impact in the second quarter.

Let's -- it's Henry, and let me look at the financial impact. This actually is a new format, so we are just making some estimates on what it will [tax] for us, when it's implemented. So in the second quarter, we expect that our capacity for sales would be back to what we were targeting. The second thing is that we, roughly, we expect that our capacity, that utilization should go up because we think that this is a better format, and it could affect our quarterly income. Our rough estimate is a few million dollars. That's at the current estimate, and we'll find out more in the second quarter. Gillian Chung – Morgan Stanley: That's helpful. Thank you.

Thank you.

[Operator Instructions]. There appears to be no further questions at this time. I'd like to hand the conference back to today's presenters. Please continue.

Thank you for joining our call. Look forward to speaking with you next time. Bye.

Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.