Good evening, ladies and gentlemen. Welcome to Weimob Inc.'s 2022 interim results conference call. A copy of the interim results announcement can be found and downloaded from the company's investor relations website. At this time, all lines have been placed on listen-only mode, and the floor will be open for questions following today's presentation. This call will be conducted in Mandarin, and English simultaneous interpretation will be provided. Participants may flip the PPT on the streaming platform. Please note that this conference call may cover non-IFRS. Joining us today on the call are Chairman of the Board and CEO, Mr. Sun Taoyong; CFO, Mr. Cao Yi; Chief Operating Officer, Yin Shiming. May I now turn the call over to Mr. Sun. Honorable investors and friends, going to introduce to you for joining Weimob's interim results presentation. Now I'm going to our 2022 first half results. The year was full of challenges. In the first half of 2022, as we all know, closed or locked down for two plus months. There was still COVID-19 outbreak, especially in Shanghai. Shanghai was plus months. SMEs business development were particularly affected. In the first half of the year to Weimob, business development remains resilient. Our total revenue was CNY 900 million. There was a slight decline. Now I would like to emphasize that this year, our revenue benchmark was slightly changed. In the past, within revenue, we talked about digital media and corporate. For digital media, the overall revenue and gross profit is not our main direction. In 2022, for the digital media business, well, we stopped developing it, and t hat's why the overall benchmark was changed. In the first half of this year, for our income, it was up 5.7%. This is revenue from subscription solution. Number of paying merchants was up 1.7%. Per user, up 4%. Average revenue under the pandemic this year, in the first half of the year, we're still able to maintain year-on-year growth in revenue. We believe that this is really not easy to achieve. I think there was really some pressure on our results. Regarding precision marketing or precise marketing, because there is a decline in the overall environment then for the precise marketing growth revenue down 20.4%. For number of paying merchants, there is a slight decline, 26,700. That is about merchant solutions. Because there is a change in macro environment and advertisers' budget, there is a decline by 20% of revenue per customer. As a result, there is a decline. In the first half of the year, there are some quite satisfactory highlights. Our moving upmarket is being implemented in a stable manner. When it comes to smart marketing, revenue was up around 30%. If we exclude Haiding because of incorporation impacting into the balance sheet, the organic increase is 60%. Last year, it's 33%. For number of Smart Retail merchants, it's up 48.6% in number. In the first half of 2022, R&D expenses accounted for a rising share of the total, almost 50% in the first half 2020. R&D investment issue is rising constantly. In 2022, we introduced three major strategies. They are the moving upmarket, ecosystem buildup, and globalization strategies. Let me comment on the execution of these strategies. First, moving upmarket. At present, if you look at this strategy, it is very effective. Looking at our revenue of the total of this strategy for Smart Retail year-on-year growth under the pandemic, it is still satisfactory. This year, because many enterprises were suspended, there was a suspension of settlement of contract. This year, for old customers, renewal of payment, they accounted for a rise in revenue. When it comes to moving upmarket strategy, it is very resilient in terms of revenue growth. Now, we are at 44% in terms of top 100 fashion retail, 45% of top 100 commercial real estate, 35% of top 100 convenience store chains, 43% of top 100 restaurants. For our coverage of top customers, Weimob has very big percentage, and the trend is rising. In 2021 or 2022, realization strategy. Third, internally, we made some adjustments. We called that industrial. Originally, we have the SaaS segment. Now it is divided into three subsectors, GBU, IBU, and CBU. For IBU, it is responsible for the whole industrialization. For GBU, the smaller SMB customer groups and CBU responsible for channels. For IBUs, now we have six main industries. We believe that clothing and home. Apparel and footwear, digital, these are the highlighted sectors. Starting from last year till now, there are two main new industries which have achieved breakthrough achievements or progress, and that is construction materials, FMCG, food, and home furnishing. Actually, we have signed contract with all the customers, for example, Nippon, Kohler, Dulux, Toppla, American Standard, and so on. These are very renowned home furnishing brands. They are already our customer. When we sign contracts with these top customers, more and more brands are approaching us. For home furnishing material industry, their budget is much bigger than our expectation. Originally, we had when it comes to home furnishing material industry overlooked the importance of this industry. However, we no matter whether we look at their investment into digitalization and marketing and market and advertising and also private domain, it is big. We believe that this industry has become one of our focal industries. For food and FMCG, we have also signed contract with some top customers like Nongfu, Shanghaojia, Liuhua, and so on. These are some brands that we have signed, and they have become our customers. With our TSO strategy, operation and also services, well, we are providing complete solutions to them. This year, these are the two breakthrough industries, and that is home furnishing material, food, and FMCG. Can you hear me? On the original and also maternal and infant, clothing and home, outdoor sport, food, FMCG, digital beauty and personal care, these are the original sectors. Now Weimob is already the first choice working partner. For example, Goldlion, Heilan Home, Jianglang, and so on. These groups are in the area of fashion and footwear and also sports, for example, Xtep and so on. We have fashion companies, Mushan and so on, Mark Fairwhale. Basically, we have all these top customers who are using Weimob services. Qipai, Chipilon, Jumor, and so on, they are using Weimob services. 361 Degrees, Xtep, 361 Degrees, they are our customers. Fashion, apparel, and footwear, we maintain very strong strength, and this strength and competitive advantage is widening. When it comes to home furnishing, materials, food and FMCG, beauty, we are implementing this industrialization strategy. Now let's take a look at some figures. About moving upmarket, if you talk about our Smart Retail system, well, there is growth. In the first half of 2022, comparing with 2021, number of cloud stores was up 107%. Number of cloud shopping guides up 49%. Cloud store performance up 12%. Digital performance up 35%. Cloud warehouse performance up 90%. In the first half this year, GMV with more than CNY 100 million, up 20%. CNY 50 million-CNY 100 million, up 33%. CNY 30 million-CNY 50 million, up 125%. CNY 10 million-CNY 30 million, up 50%. From all these figures, in the first half this year, even though there was impact from the pandemic, our merchants' operating data are still showing good signs. About video. We are maintaining our leading competitive advantage. Now, we have obtained four types of service provider qualifications of video number operation plus investment plus training plus supply. On 618, we are number one in terms of precise, in terms of, video number e-commerce service provider, new anchor record ranking number one, and number two in relation to 618 video number e-commerce training guidance service provider record ranking. There is an increase by 177 times in video number merchant year-on-year growth in order amount, and 35 times number of orders from video number merchants year-on-year growth. You can see that growth is fast. In March this year, there was already public test on our WOS, and up till now, 80%+ of customers are already using our WOS. Now, WOS is a foundation layer brand. Actually, the original system can still be used, but overall speaking, we are promoting WOS. Right now, 80%+ of customers are using WOS. At the end of this month, we believe that we will reach 95% or above. If we compare WOS performance and also user experience, WOS app page opening speed is faster than New Cloud by 38%+. WOS traffic bearing capacity is improved compared with the New Cloud by two to eight times. WOS merchant report usage is higher than that of the New Cloud, so an increase by 130%. We have laid down a PaaS platform for WOS. For the front end of users and also merchants, they have a standardized brand-new design. If you look at the visual design, the interface, and also the back office, there is brand-new design. Right now, no matter whether foundation layer, technology and also dimensions, we are leading other service providers by large margin. Because of the launch of WOS, our ecological layer in the first half this year continues to accelerate. There are 60 new ecological partners and 500-odd new application service quantity. We already exceed the total revenue of last year in the first half of this year. Year-on-year growth attributable to Weimob Cloud ecological business revenue, 129.8%, and we have 100% ecological partners migrating to WOS already. There are many personalized services available. For example, Dyson. Dyson uses our WOS. Our developers have created a lot of personalized features for them to satisfy their needs. Lenovo is also served by us as well. More and more enterprises and merchants in the future will be on our cloud platform, using personalized services. At the same time, we are enriching our cloud ecology. There are content, flow, service, application and overseas ecologies, and they are all based on our WOS technological platform. Now let me comment on our globalization strategy. Overall speaking, we are implementing it steadily. Apart from our ShopExpress products, we also offer overseas traffic in terms of Google, Facebook, TikTok. These are some overseas marketing work that we are doing. Such traffic is rising, but right now it is not of a big volume yet. Perhaps $1 million per month, roughly. We are still in the growing stage in this regard. Let me comment on our business outlook. I believe you are more interested in the second half of the year, and also our overall business development. First of all, I would like to share with you our outlook for the second half. There was the impact of the pandemic and the macroeconomy as well. Our financial results have been affected. However, my peers cannot come to a judgment on the overall Chinese macroeconomy. I believe we have already passed the most difficult moment. No judgment is, of course, on the economy. Since the start of the pandemic all the way to the relaxation of lockdown, I think our advertising business has already seen the trough, and it has rebounded. Starting from like May, June and July, well, it kept on the second half of the year, I believe June, there is a 50-odd% increase quarter-on-quarter and in July up 20-odd% year-on-year. That the situation will not be worse than now and the pandemic will be normalized. We believe that we should have more confidence and there should be greater guarantee for good business. Our macro environment is not particularly good. In the second half of the year, of course, so in the second half of the year will be around 30%. If you look at July and August, it shows more or less the same at the figures in July, more or less this trend. If we do a breakdown of the revenue, it may not be as high because for us there is the need for amortization. For the whole year, it may not show this number. For advertising business, again, it has already seen the trough. It is rebounding. In Q4 last year, there was regulation of the industry and also macroeconomic factor and the pandemic. From Q4 last year to Q1 this year, overall advertising revenue showed decline. However, from May we can see that the advertising revenue is rising. As of August, the per day consumption has already risen 50%-60% quarter-on-quarter, comparing with the lowest point. This year, starting April, there is an uptrend. If we look at these trends this month, the scissor shape is just formed. This year, August is more or less the same as last year September. This year surpassed last year September toward the end of this year for advertising comparing with last year. I think there would be a 20% growth in the second half this year. Concerning the future economy, there is still much uncertainty. If you look at data at the present moment in the past two to three months, I believe that the situation is clearer. In the coming half year and next year, we are optimistic. Basically, this is our result outlook. Of course, there are some concrete measures that we will put in place. Number one, increase the number of big customers and enhance the value of single customers by increasing revenue from moving upmarket. Well, next year, we hope that it will go up 50% and then, after that, up to 70% we hope. Then, in the future we will be better in withstanding risk and we won't be affected that much by SMEs. In the future, we will do more moving upmarket and industrialization. We will develop more industries. At the same time, we are identifying unified business system for retail companies. In the future, we hope to offer a smart system for the retail industry. No matter whether we're talking about private domain or smart shopping guides or Smart Retail outlet and also full private domain operation, we hope to offer a complete solution. Including CDP+MA and also a WeCom Assistant. In the first half this year, we are working with Centripetal Cloud in order to build a digital retail business. In the retail scenarios, we believe that shopping guide is very important. Well, we have super shopping guide. We hope that we can continue to do more training and also user management. On the marketing end and also on the retail end, transaction system, we can capitalize on our strengths and then build a new smart super shopping guide solution. For digital retail, after we build this solution for customers, then with the shopping guide, we can set standards and also train the system. It will be a full link. It will be a closed loop, helping companies to enhance their business efficiency and execution capability. Now, many customers are using our new integrated shopping guide solution, for example, Xtep and so on. For this solution, I think customers are quite satisfied. For those using our shopping guide app, their use frequency is very high. In the future, this app will become a smart system. From knowledge training all the way to task completion and also marketing conversion, customer accumulation, a closed loop can be formed. In the market, there is no other competitor of this system. In the area of Smart Retail solutions, Weimob is going very deep. In the future, there will be payment based on account, so we can do that as well in the future. Customers will be charged in this way for WOS. We will make use of the technology platform of WOS to offer seven core products. There will be retail, dining retail, Smart Retail, smart fresh, cross-border to the sea, and so on. These are some solutions available. All these will be provided through SaaS. We will also improve our ecology. We will deepen it and broaden our customer service and scale. Concerning interconnectivity, by means of our private domain three-piece set, WeCom Assistant, OneCRM, CDP+MA, we can offer solutions. For OneCRM, it is already launched. Next month, we can offer a very complete private domain solution to customers. For TSO, we are serving 50 top customers already in the first half. Revenue is CNY 50 million. This is incorporated under merchant solution. For merchants, to show an annual growth rate of 50%, they have strong need for flow and also integrated solution. We focus a lot on integrated solution and also traffic. Patience. For the future, it is still quite steady in terms of organizing. We have much expectation. After that, we will have Q&A session. Okay. Thank you, Mr. Sun. Investors, good evening. Now I'm going to report to you our 2022 first half. Of course, we are affected by the external environment. Since first half 2022, external economic environment has changed significantly. This morning, I read some figures. From January to July, for consumer products, is down 0.2% overall speaking. Since the consumption segment is rather weak, there are then a lot of challenges for Weimob. Lowering cost and improving efficiency. We insisted on our strategies. Our strategies are not changed, so we aimed at. In first half 2022, our total revenue was down 6.2% after adjustment, year-on-year after adjustment. Of course, in the second half of the year, we will be more focused on the strategy. We will try to lower our cost and improve efficiency. Last year, there is CNY 423 million of revenue based on total dimension, so it is a growth income. This part is being excluded, so now there is a decline by 6.2% year on year. Subscription revenue increased 5.7% year on year, so it is very resilient merchant solutions. Because of impact of the advertising, I'm going to talk about number of paying merchants and up cycle. The revenue was down 22.3%. Now, in the first half this year, for the two business segments, in first half 2021, subscription accounted for 60.4% of total revenue. In the first 24.6%, so it's higher. For this year, subscription had a share of 60% of a number of merchants with subscription solution. Last year is 64% in share. This year, 80% almost. That is distribution of number of paying merchants. I think, this is because of the sensitivity to business cycle of the two segments. Well, for SaaS contracts, whereas you know the contract value will be split on the contract term, according to the contract term and for SaaS income, it is not only relying on new account opening. There is also existing customers income. So relatively speaking, it is more resilient. For merchant solution, advertising, commission accounted for a big share. So advertising sector is very sensitive to business cycles. For merchant solution in the first half this year, given all the headwinds, it has declined. For these two segments, well, they are slightly different in terms of their sensitivity. We will continue to lower our costs and improve efficiency. In Q2 this year, we improved efficiency and in terms of personnel costs, well, it is being optimized. As a result, we have personnel cost to CNY 300 million per year. In the second half of this year, we optimized and the economy recovers, then future growth rate of revenue will go back to a more reasonable range, and cost will continue to be controlled and optimized to promote the breakeven of second half of 2023. In first half this year, we have sufficient capital. Total assets was CNY 9.358 billion monetary funds, and equivalents of RMB 3.68 billion. Our overall financial structure is healthy. Now, let me give more details about our revenues. Under the pandemic, different segments showed different change. In the first half this year, subscription solution revenue last year was CNY 581 million and CNY 49 million. There is slight increase to merchants. Last year was CNY 101,867. It rose to CNY 103,616. Regarding churn rates, it only rose by 1 percentage point, 11%- 12.1%. This is within acceptable because of the economy and the from 11 point controllable range. Improve our efficiency and add value. We continue to by offering more support to merchants, we hope to enhance merchant stickiness. In the first half of the year, ARPU of subscription solution increased. Last year, it's CNY 5,395, and now it's CNY 5,608 per merchant, so up 4%. In the first half, it's mainly affected by COVID-19 in April and this year for subscription revenue, orders were lower than expectation by 30%. If we look at merchant solution as such as now, the year-on-year revenue was down 22.3%. If we look at the details, paying merchants more or less flat, so it is quite resilient. In the first half this year, the number of paying merchants was 26,770. Last year, it's 27,484. We continue to open some new media channels, for example, Kuaishou and through these means. For Tencent advertising, we have got quite good progress in some e-commerce customers. Given the headwinds, revenue was down. ARPU last year was CNY 14,909 of merchant advertising budget revenue. This year in the first half, it came down to CNY 10,899, down 20%. This is the main reason why merchant solution revenue came down. Revenue came down. This also reflects the economic and business cycle. Merchants' advertising budgets are very sensitive to the economy. When the economy recovers, then in the second half, there should be quite a good recovery. As of now, COVID-19 caused impact on subscription orders. We have done analysis. We want to understand the gap in orders to see how big the impact was in the first half. What about the second half? How big will be the impact? On this slide, which I won't go through the details, our model, our methodology is that we categorized our business lines. E-commerce, logistics and delivery will not change. Relatively speaking, the impact of the pandemic was smaller. Of course, in April and May, there was lockdown. Greater share in Shanghai of e-commerce, dining and tourism. Shanghai has a lower share. We have to look at the regional breakdown, whether or not a certain region is affected by the pandemic. First half this year, for Q1 and Q2, orders were down by 7% and 32% as compared to the year. The gap caused by the pandemic does not only affect the first half, it will also affect the second half. In the first half, we said that this year, subscription revenue in the 10%-20% for the whole year, 20%-30%. First half will grow. However, if we benchmark this, then in the first half of the year completion, apart from the one-off impact from the pandemic. If that was excluded, then in the first half, subscription revenue showed a normal growth. The second half, in the second half of the year, it is expected that year-on-year growth in order will be around 30%. At the same time, because in the first half, there is the order gap affecting the second half as well. Subscription revenues growth will be 10%-20% in the second half. If we exclude the impact within 3%, 18%, 9%, and 7%. 9%, 7% impact of the second half. If it is reversed, in the second half of the year. This year, overall speaking, our basic business is quite normal. Basically, in the first half of the year, there is an order gap because of the pandemic exerting impact through change in gross margin. In the past two years and also first half this year, we take half yearly look at the gross margin. You can see here that gross margin is coming down. The reasons are different for different business segments. Overall gross margin was affected by the gross margin of subscription and merchant segment. However, for subscription and merchants, revenue mix. Well, gross margin of subscription is lower than that of merchants. This year, subscription accounts for a bigger share, so overall gross margin came down. For merchants, gross margin impact, the net came down. Advertising client commission for TSO and also service type revenue, it showed good growth. TSO and service income might require more staff costs, and its gross margin is lower. If its share rise, merchant's gross margin will be stimulated. Merchant solution gross margin in the first half this year declined. That's the main reason. For subscription, we did a detailed analysis. R&D capitalization, and starting last year, for subscription cost, was incorporated. For subscription solution, gross margin, it was then affected. If these two factors were excluded, in the past two years, maintained because of the accounting arrangement leading to change in gross 90%. I think this is mainly because margin. In the past few years, we increased investment in R&D that was offset by the impact of the economy and pandemic to achieve the target. Second half of the year, revenue growth did not. We tried to lower cost in May and June, so it could not be realized in the first half of the year. Adjusted net loss CNY 567 million from Haiding, which had CNY 567 million. That includes the incorporated business to a loss of CNY 101 million starting second half million. We believe that investors are also concerned about half of last year and first half this year, we experienced quite a big loss. Will this loss continue? Will it be reversed, a turnaround? We have done an analysis. In the future, how are we going to achieve. In the past two years, starting first half of 2020, so five half-yearly periods in the past. 2020 to 2023, three half-year periods. Yes. Starting 2020. You can see from this slide an analysis. So if you look at the blue bars, they mean positive contribution to profit. In 2020 to first half, 2022. So here you can see RMB in millions, starting this year, first half, it is a forecast. They are negative contribution to profits. Those. So below the dotted line, that means those are expenses and costs. So for companies like. For these expenses, also R&D investment and R&D salaries and other expenses. Well, there's staff costs, other people's staff costs, other staff costs, and so on. So it is listed as the percentage of that particular period. Below the dotted line, if the percentage exceeds 100%, then that means there is a loss. This slide gives a detailed analysis of the past few years. What has changed in the past years, and how are we going to achieve turnaround? Before 2020, including 2020 as well, we were able to achieve break even. The turning point is in 2021. In early 2021, external environment and the external economy was good. Our projection of the industry was optimistic. At that time, we introduced strategic upgrading of our three strategies. We increased investment into R&D, and also we introduced the WOS and during moving up market, we enhanced our operating capability. We actively increased investment and we increased the short-term financial loss in order to achieve growth in the future. Those losses were within our plan. Starting second half of 2021, the external environment experienced radical change in the economy, politics, and also the pandemic. Business development was difficult. Overall, external environment changed significantly. We believe that this is just a small cycle, a small episode in the overall history. Our fundamentals have not changed. We are trying to enhance efficiency of customer acquisition. We are integrating online, offline. All these have not changed. In the future, when policies are relaxed, when the economy recovers, when the consumption market becomes warm, then we believe that in the future, 20%-30% revenue growth is reasonable and normal. As Mr. Sun said at the beginning, our view is that the worst time is over. In terms of cost and expenses, we're focused on our strategy. We will lower costs and increase efficiency. In the first half this year, we optimized our structure, and we're able to save annualized cost by CNY 300 million. In the future, we'll continue to control cost, hoping to deliver CNY 170 million optimization in cost. All these will be realized in cost and expenses in the coming years. If our revenue growth goes back to 20%-30%, and if costs and expenses are better controlled, then we will continue to execute our strategies. We can achieve healthy growth, and then we will go back to a break-even in the second half of 2023. This is my analysis of our financials, and I hope that we can give investors more confidence so that you know what had happened with our company. That's about financial. Now we will proceed to Q&A. Okay, thank you, management. We will start Q&A now. If you want to ask question, please press star one. If you want to cancel a question, please press star two. First question is from CICC, Jia Liping, please. Mr. Sun, Mr. Cao, greetings. I have three questions. First question, for subscription service in the first half this year, you achieved positive growth. In July and August, if you look at the figures on a quarter-over-quarter basis, there is increase, which is the biggest driving force from which particular industry for the second half for 30% growth in cash collection, which will be the biggest industry in this regard. The second question is about margin. You said that you are doing optimization and your counterparts, your peers, are also working on optimization of personnel. They have also seen some effectiveness. Concerning personnel optimization, will you continue that in the second half? When will you see the results of such optimization? Do you think you will achieve a break-even or a turnaround, and when? The third question is about video number. Mr. Sun said that growth has been quite good for video number. For the video number, what will be its future development direction? Thank you. Thank you. First question first. Pandemic and also, like we said that in April and May, because of the lockdown, some delivery of contract and payments have not been. Saw a new high in July. Compared with June, there is some decline, but still there is 27% year-on-year growth in August. Our contract cash collection, concerning cash collection or contract, is more or less the same. In the second half of the year, there may be a 30% growth. Mr. Cao already presented the financials in a detailed way. If you talk about cash recovery, home furnishing, building materials, fashion, footwear and apparel, FMCG, these are more important industries. GBU are also recovering quite well. For SMEs, we want to service the customers with better potential. Looking at all the data right now in the second half, there should be some certainty that for subscription revenue growth. Regarding margin and also personnel, on the redundant staff and also the margin staff, peripheral staff, optimizing as of 31st December last year. Now there are 6,909 people, so there is quite big reduction, 24%, but then around 12% or 13% of people left because of natural wastage and optimization around 12%, 13%. Because of the pandemic in Shanghai in May, it happened in May and June, mainly, actually was accentuated. In the second half of the year, we will still do some personnel optimization, but the percentage optimization is completed. There won't be similar optimization of the year. Optimization will happen to the peripheral staff and non-core businesses. Core businesses like Smart Retail, our head count has increased this year. For R&D, because WOS in March this year did public test, and most merchants have migrated to WOS. For R&D team, the number of R&D people will come down slightly. In the second half, there will still be some optimization where overall speaking, our optimization is reasonable and rational. We are not going for very radical optimization. We are significantly year-on-year growth in June in a reasonable way, and now efficiency and productivity has improved, and July is quite good. After optimization of personnel, productivity per person is now better. They are all more motivated now, so I think optimization is done within reasonable range. The impact on our core business will not be that big. On the cost side, we believe that in the second half of the year and next year, the effects will gradually be seen. Again, based on 20%-30% revenue growth in the second half of next year, we should be able to achieve quite good results just to break even. Concerning video number this year. Now, I gave you a brief intro to merchants, live streaming or production. There are two sides, merchants broadcast. We help them do broadcast. Then another thing is talent products, supply chain. These are things that we're working on. We achieve good results on both sides. I will ask our COO to supplement. Thank you for the question. Let me explain the situation about video number. Future development direction. I think we are very positive about future development of video number. In the e-commerce area, there may be some worry about the drive from traffic in the private domain. Of course, it provides a lot of traffic and clusters. Video Number is very perfect as a scenario for the connectivity. During live streaming, people will scan a code to become members. I think these two together will actually capitalize on the merchants on WeChat. If you refer to the date right now for merchants which have already opened the video accounts, the transaction rates and also the ASP are higher than those without video accounts. A monthly GMV conversion is very high, more than 10%. I think if you talk about development of video number or video accounts, we are positive it will give very good macro boost to our overall development. Concerning monetization, there are a few things. First, software, SaaS. Second, advertising. Third, operation service. For software, we have seen some very positive change. Renewal of fees and increase in purchase. Because performance is good, renewal rate is much higher. That's the first thing. Number two. For video number in a significant growth, and it is closely related to video number. For enterprise, WeChat, that is, WeCom Assistant, and also WeMall. On this point, I think it is very good. When people want to open a video account, they will buy WeMall as well as WeCom Assistant. If a customer wants to do advertising, then with advertising, they will also do video accounts because both will drive growth of one another. CDV, NIV, and so on, these will become useful. I think it will be a very good monetization channel, TSO, advertising, and so on. On operation level, as Mr. Sun said, there is live streaming or talent broadcast or merchant broadcast. We offer service in these areas, but we have to be prudent. The development opportunities. That's all from me. Thank you, management, for the answer. TF Securities, Yang Lingling, please go ahead. Mr. Sun, Mr. Cao, greetings. You said that in the second half of the year, subscription would be good, advertising as well. You talked about WOS. In the future, you will do more about Smart Retail, Dining, Smart Retail- related businesses. A lot are mentioned. Can you tell us what is the main focus of your strategy? Last, there were some M&A projects, and right now, how is the integration situation of those projects? Do you think there are opportunities for M&A, and what is your plan? Third question about video number. Well, increase in business in relation to, for example, advertising and SaaS. Turning the strategic focus to WeMall, we think that our strategies are very clear. You asked for our main focus. I think we have three strategies, moving up market, ecosystem build-up, and globalization. Just now I talked a lot about different systems based on different business scenarios. All these systems are built on WOS. Also operating system. With WOS, when we work on industry solutions and products, integration with Chadao and Haiding and various integrations, WOS is the bottom layer infrastructure. All our ecosystem companies and also our products are built on WOS. WOS is the bottom layer infrastructure. Constant for our merged and acquired companies, efficiency will also improve significantly. We together with Haiding developed the smart. With WOS, the efficiency is greatly enhanced. Then through We... Originally, our platform is not adequate, so that's why we built WOS. With WOS, we can better serve our big customers. Big customers have more needs for products, complement one another. We want to work on industrialization, and we want to sign contract with top brands and customers, and with our plus, one system, so they help our companies. In the past, it's an online mall. Now it is online plus offline integrated system. Let me give an example. A company may have seven to eight internal systems. In the future, they can use things. The working partners. With WOS, in the future, integration and connectivity will be better, data will be well connected, and then they can do. The value is going to be limitless. That's our product strategy and also our overall business strategy. Regarding M&A projects and the progress of integration. When it comes to integration of Haiding and also Centripetal Cloud, and then for dining are important moves, and the biggest one is Haiding. The impact was bigger, especially with the pandemic. When it comes to integration with Yazuo, I think it is not as expected. It has not brought as much revenue growth as expected because of the pandemic, especially this year. Revenue has come down. If we talk about our M&A strategy, dining and our core retail scenarios may be a bit too far away from each other. Unlike Haiding, the sector without going to the outlet, but then it was more affected by the pandemic than retail, where people can still complete dining. If people don't go to the restaurants, then they have to order food delivery. We don't think that this is a problem with our M&A strategy. I think it is because of the impact of the external environment. When it comes to integration with Haiding, well, we have a smart super store and smart fresh and so on. These are some solutions that are being implemented steadily. I think our integration with Haiding is very successful, and the team's integration is also good. They are working well together. They are quite good, quite well motivated. In the first half this year, Haiding was quite affected because of customer payment problem, but in the second half by the pandemic of the year, Haiding was able to achieve a breakeven. In the past one year, Haiding put in a lot of R&D resources in the integration with us. Now I think, in the second half, we should be able to see a break even. This is quite good. For Centripetal Cloud, we are still integrating. We think that shopping guide is a very important product. In the future, when it comes to merchants, I think they are an important end for shopping guides. When it comes to smart shopping guides, smart store, smart shop manager, online/offline integration, well, shopping guides will be a very important hub. I think it is going to do a lot more. If enterprises use all our smart operation tools, then the subscription revenue per year should exceed CNY 1 million. For this particular product, there is no competitor at the moment. I think, customers' use experience is very good, so that's about all the integration. For video number, such as now in the future, for existing SaaS customers, well, for fee renewal and retention, I think video number is going to be very helpful. For future TSO operation, revenue growth, there will be some help. I think in the future, our ranking will be enhanced. We are positive about prospect of video number. If you look at the live streaming platforms, the monetization and income arising from small to medium-sized live streaming is not big, but if streaming customers is good. Besides, we have got talent broadcast as well. In the future, we will see some income from there. I think video number will contribute quite a lot to advertising revenue. Well, I have a number to share, but not an official. CNY 2O billion in that case, that would be a CNY 2 billion increment. Right now, we may be one-third of the second year. I think in the future, we see CNY 20 billion next year. This is going to contribute a lot to the advertising business. Right. Understood. Your answer is very clear. Thank you, Mr. Sun. Brian Gong, please. Thank you, Mr. Sun, for allowing me to ask questions. I have two questions. First, can you tell us the recovery of your customers? For example, Smart Retail and also WeMall. You just said that you are working months. How is the recovery? Which one is lower? In the second half, what will be the overall operating strategy for advertising? How are you going to increase gross income? Will there be some room for upside so that you can have better profit? Thank you. Okay. Well, there are quite a lot of SaaS products. Well, let me comment on pipeline businesses first or advertising businesses. Well, advertising business outlook, well, starting Q4 last year to Q1, there was an overall decline. There was an increase by 60% from the trough. Right now it's more or less. In September, we will reach CNY 36 million from Q4. If the economy recovers in the last year, we believe anyway that this value will even be bigger. In the second half of the year, for advertising, I think it has already bottomed out. It is recovering. If you ask for the specific industries, first e-commerce, brand e-commerce and retail chains, adult education, and then, internet platforms are also making investments. The fourth one is SMB. Their growth is good this year. In the second half of this year and next year, relies on the growth of, I think, particular or individual industries. Regarding video number. Well, they will be with Tencent advertising. We're talking about commercialization of video number. It is going to be big customers may be subject to bigger impact. For regional SMEs, I think there is still some room for growth, 10%. For big customers, the budget is reduced more. Some industries are recovered. We are developing them. Recently, we have seen fast growth in FMCG in Kuaishou this year. They are all growing. At present, Kuaishou may be doing well, like Little Red Book and so on. They are. This month, more specifically, we are in an upward trend. That's the same as last year. Overall. In the second half, comparing with last year, I think the growth in advertising will be more certain. For Q3, the base is not big, so in the second half, growth will be rather certain. Regarding SaaS and also breakdown by industry, we have WeMall, Smart Retail, WeCom Assistant, Smart Dining, Haiding's products. If you talk about overall recovery, WeMall and Smart Retail are recovering. Dining is still affected by the overall market. The industries are wider. Mr. Cao, do you have anything to add concerning GBU? There are two main factors. First, with the pandemic and lockdown, we could not see customers. Sales during the pandemic for big customers was greatly affected. Customers in Beijing, Shanghai, Guangzhou were affected more. There are more bigger customers. Big customers then, remote communication cannot replace face-to-face tendering and activities and events. During the pandemic, this is the main reason why we were affected. With the good recovery, as said by Mr. Sun, waning of the pandemic in June and July, first of all, in Shanghai, that was quite soon. E-commerce, retail in GBU, and also for big customers. Big customers' decision-making duration is long. We can sell. We can make sales longer, but then in June, we saw quite good recovery. Comparing with SMEs, the trend is lower with large customers. However, they continue to recover. GBU represents SMB customers. Their recovery is stronger. In June and July, on a year-on-year basis, we're at 20%-30% growth in order recovery. When it comes to restaurants and tourism, there are more customers in other places and other than Shanghai. They achieved quite good results because that was the peak season for tourism and holiday sightseeing. This is the information that I can supplement. Thank you. Okay, next question is from Yuan Liao from CITIC Securities, please. Thank you, Mr. Sun and Mr. Cao. I have one question. Looking at the direction of internet development, cross the border to the sea is a very blue ocean direction. Among the industries, there is quite a lot of help from these cross-border merchants, and there are logistics service providers and payments and also overseas giant providers. Now, Mr. Sun, how do you see this cross-border e-commerce service providers competition layout. In the future, what kind of competitive advantages can you create? Thank you, Mr. Sun. Thank you for your question. First of all, globalization is one of our three main strategies. Cross-border is also an important step to the sea, step of globalization. This year, given the overall macroeconomy and external environment, regarding cross-border to the sea, we did not invest as much as expected. The main reason is that regarding the macroeconomy and political situation, there is still much uncertainty. Cross-border to the sea faces very deep ecological barriers. If we use the SaaS products now, perhaps we need to invest ten times of the current R&D expenses. Given all the uncertainty, we did not invest as much as expected. Our current strategy, in terms of globalization, is that in the long run, globalization is a very important strategy. At present, we hope to rely on enterprises as we aim to increase that number of customers too much. Overseas SaaS customers, we do not. Through advertising, we hope to earn more profit, and at the same time, we can satisfy our ShopExpress R&D investment needs. Regarding globalization, the rhythm may be slower than in the past. Overall speaking, we think that we need to be more reasonable and rational. Given the current environment, if we invest a lot of capital, then there would be heavy burden on R&D and our loss as well. Right now, we adopt a domestic TSO strategy. We provide traffic and flow and SaaS and operation, and we offer these services to customers. Then customers will find it easier later. During this stage, we hope to be a bit more conservative. In the future, when customers use more of our various products, and then in terms of the traffic and flow operation, they are doing a good job, then we will gradually invest more. Globalization is our long-term strategy, but for the short run, we will tend to be more conservative. Okay. Thank you, Mr. Sun. Today's meeting here. Thank you. Because of time constraints, we will conclude today's meeting. Thank you very much for joining this conference call. If you have further questions about Weimob, please feel free to contact the IR team. Thank you and good night.