Jay Lee

Jay Lee with Guojin Securities inquired about the drivers behind the improved ARPDAU this quarter, specifically asking about the split between product mix changes and operational optimizations. He also questioned the sustainability of the current ARPDAU level if user acquisition efforts were to increase. Additionally, Lee asked for management's perspective on the company's recent stock volatility and the ongoing share repurchase program, seeking insights into the future pace of buybacks and capital allocation priorities.

Answer

Chairman Brian Xie Feng explained that the ARPDAU increase was primarily due to live operations optimization, including user-favored events, high-value user maintenance, and targeted package pushes, with the new RPG title Jira also contributing to a higher monetization product mix. He affirmed the sustainability of the ARPDAU level with continued live ops focus and upcoming RPG releases. Shawn Zhang, Head of Capital Markets and Investor Relations, addressed the share price, stating management believes it's undervalued, hence the $5 million repurchase program. He noted that daily repurchases are near the SEC's 25% ADTV limit and committed to disciplined execution while exploring ways to improve stock liquidity and other shareholder return mechanisms.

Jay Lee with Guojin Securities inquired about the drivers behind the ARPDAU improvement this quarter, specifically asking about the split between product mix changes and operational optimizations. He also questioned the sustainability of the current ARPDAU level if user acquisition efforts were to increase in the future. Additionally, Jay Lee asked for management's perspective on recent stock volatility, the pace of the share repurchase program, and future capital allocation priorities.

Answer

Chairman Brian Xie Feng explained that the ARPDAU increase was primarily due to live operations optimization, including user-favored events and targeted pushes, with new RPG game launches also contributing. He affirmed the sustainability of ARPDAU even with increased user acquisition. Head of Capital Markets and Investor Relations Shawn Zhang addressed the stock performance, stating management believes the company is undervalued, leading to the $5 million share repurchase program. He detailed the program's execution, noting compliance with SEC 10B-18 rules, and mentioned plans to continue disciplined buybacks while exploring ways to improve stock liquidity and other shareholder return mechanisms.