Ladies and gentlemen, thank you for standing by, and welcome to today's Phoenix New Media 2018 Fourth Quarter and Fiscal Year 2018 Earnings Call. At this time, all participants will be in a listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, you will need to press star and one on your telephone. I would now like to hand the conference over to your first speaker today, Qing Liu. Thank you. Please go ahead.
Thank you, operator. Thank you and welcome to Phoenix New Media fourth quarter 2018 earnings conference call. I am joined here by our Chief Executive Officer, Mr. Shuang Liu, and Chief Financial Officer, Ms. Betty Ho. For today's agenda, management will provide us with a review on the quarter and also include a Q&A session after the management's prepared remarks. The quarter 2018 financial results and webcast on this conference call are available at ir.ifeng.com. A replay of the call will be available on the website in a few hours. Before we continue, I refer you to our safe harbor statement in our earnings press release, which apply to this call as we will make forward-looking statements. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. With that, I would like to turn the call over to Mr. Shuang Liu, our CEO.
Thank you, Qing. Good morning and good evening, everyone. Our fourth quarter results were marked by resilience, recovery, and progress. First and foremost, our fourth quarter financial results hit high end of our previous guidance, despite the myriad of challenges we encountered throughout 2018. As you all are aware, regulations governing online content are becoming increasingly stringent. We believe that proper regulations help foster a healthy internet environment and promote a harmonious Chinese society. As a leading news media company, we have adapted to and continue to evolve with the new regulatory environment. We are happy to report that user activities across all of our platforms have recovered almost to the level prior to the temporary setback we experienced between late September and early October. Most notably, by the end of December, our iFeng news app's daily active user count has recovered to pre-suspension levels.
The velocity at which our user data has recovered once again demonstrates our high product stickiness and the loyalty shown to our brand from our user base. Our successful recovery and our resilience in the face of macro challenges is a testament to our unwavering commitment to high quality and differentiated content as well as our prudent diversification into lifestyle verticals. As for our content strategy, we continue to differentiate ourselves from our peers by focusing on enhancing our brand influence through nationwide events, producing proprietary video content based on our own IP, and refining our We-Media operations. Regarding our branding initiatives, we remain committed to our long-term efforts in poverty relief and charity. In the fourth quarter, we organized our annual ifeng Beautiful Childhood Charity Gala, which raised over RMB 33.6 million for our partnered foundations.
Others, such as the 40th Anniversary of Reform and Opening Up 2018 Financial Summit. Our coverage of the summit, especially the keynote addresses from many industry leaders, was very well received by our users. In addition, we also held our seventh annual China Auto Award ceremony. During the event, more than 250,000 users voted on favorite automobile manufacturers and models in over 20 categories. Going forward, we will continue to utilize offline events, including large-scale forums and industry awards, to enhance the credibility of Phoenix New Media among both our users and advertisers. On the development of our proprietary IP on video, we made a push into short-form videos in early 2018 and have been gaining steady traction since. In the fourth quarter, our original variety shows, "Endless Power," [Non-English content] , accumulated over 340 million views, doubling that of the previous quarter.
Endless Power is one of the many in-house productions that receive widespread viewer recognition, critical acclaim, and advertiser endorsements. Other examples include "A Journey Through Literature," [Non-English content] , which was viewed over 100 million times in November alone, and "Super Tongue," [Non-English content] , which was aired in January 2019. More importantly, we have an administrative system in place to constantly, precisely, and diligently control the ROI for all of our in-house productions during the fourth quarter. Going forward, we will continue to invest in video content through both short-form video productions and IP creations. We believe IP creation video content will be a vital growth driver for us moving forward. For We-Media, we have significantly improved its operational efficiency by strengthening its coordination with our vertical channels, leveraging the industry insights, network, and connections that we have established in various industries and vertical channels.
We are much more effective at identifying high-quality content on We-Media authors in each niche verticals. We have implemented attractive incentives for content creators based on the number of paid views and advertisement impressions to encourage higher quality content production. As for our coverage of hot topics, as we utilize our knowledge and network contacts in various verticals, we are more sensitive and perceptive of emerging events than ever before. We are also able to categorize the events based on their level of significance, so that our smart algorithm can maximize our distribution efficiency. Our editorial team is now playing a crucial role in the premium content collection and recommendation process. The distribution of premium content is key to maintaining our superior user experience. Recognizing its importance, we have implemented a complete set of guidelines and KPIs for our teams in various vertical channels.
We believe that humans are much more reliable and accurate than algorithm when it comes to determining the quality, credibility, and authenticity of premium content, especially when the review is conducted by our experienced editorial team. The combination of emerging events coverage and premium non-time sensitive events distribution has allowed us to ensure an optimal experience for our users and further solidify our unrivaled influence in the media sector. Now, I would like to give you an update on our content diversification into the lifestyle vertical channels. To strengthen our content production capabilities, we have brought on board a team of media veterans with over 10 years of experience to replicate our past success with key lifestyle verticals, including entertainment, food, and fashion.
We're pleased to announce that we have attracted top talents in this area and have attracted multiple top-class We-Media content creators and key opinion leaders in cosmetics, clothing, delicacies, vintage wines, and other related topics, and added them to our network. As a result, our capacity to produce more original high-quality content in these areas has expanded substantially. As for our food vertical, we are now producing food documentaries, mini variety shows, annual award ceremonies, billboard publications, daily short-form videos, daily new media publications, and frequent offline social gatherings. Above all, our lifestyle content is seamlessly integrated with a variety of e-commerce business, each of which is customized to match the industry style of online celebrities, thus enabling us to monetize our vast and growing user base. Now, let me give you an update on our recent strategic investment in the online reading segment.
In 2018, we focused on cultivating our online reading product, Fan Yue, as a vital part of a content strategy and an essential growth engine for iFeng. In late December, we announced that we made an investment in Tadu, which is one of the most popular online reading applications in China, with over 1 million daily active users. After we exercised our option in late December, we have started to consolidate Tadu into our financial statements, and its revenue will be accretive to us. Tadu and Fan Yue are highly complementary to each other. Tadu's strengths are its technology development and distribution capability, while Fan Yue's strengths are its content production and extensive content library. By integrating Fan Yue with Tadu, we offer users a full-fledged online reading experience.
More importantly, we have laid a solid foundation for building our own closed-loop IP ecosystem, a system encompassing writer-creator contracting, original content production, content distribution, and content monetization. We are cultivating these content into online series, comic books, and or audiobooks, et cetera. One of the very successful comic book, "Marriage and Love Junkie," [Non-English content ], being one of the eight comic books that we produced this quarter, achieved over 300 million views. In audiobooks, "Black Islands," [Non-English content ], was named the top new audiobook by one of the most popular online audio applications. Going forward, we expect that the synergy between Fan Yue and Tadu will further expand our user base and strengthen our capability in IP development. Finally, I will share an update on Yidian. As of January 31st, 2019, Yidian's daily active users reached 74 million.
For the full year of 2018, Yidian's revenue almost doubled from the prior year period. Yidian also actively expanded its partnership with leading Chinese handset manufacturers, including vivo and OPPO. In late February, we entered into binding letter of intent with the proposed buyer for the sale of 32% of the total outstanding share of Yidian. The agreements are currently scheduled to be completed before March 22. Although it is still subject to certain closing conditions, we expect the sale to result in a total of $448 million in cash. This means that we have generated a significant return on our previous investment in Yidian. Meanwhile, our remaining 5.63% interest in Yidian will allow us to continuously benefit from its future growth. Most importantly, the cash injection from the deal will help fuel our own growth engines, as well as expand our product and content offerings through potential strategic investment opportunities.
In summary, we have showcased our resilience to overcome the challenges in 2018 and executed strategic initiatives to benefit our long-term growth. We have achieved great success in company enhancements, business diversification, technology development, and strategic investments. Although the slowdown in China's economic growth inevitably impacted our advertising revenues, and although the industry-wide budget cuts that we saw last year may last for a few more quarters in 2019, we are meeting these challenges head-on by diversifying into more counter-cyclical lifestyle verticals. Also, as we consolidate Tadu, we believe it will become an important driver for our long-term growth going forward. We are confident that despite the macro headwinds, our strong brand equity, loyal user base, vast content repository, advanced technology capabilities, diversified business segments, and increasing monetization vetting will all enable us to weather through the challenging market conditions and deliver long-term value to our shareholders.
With that, I will turn the call over to our CFO, Betty Ho, for a financial update.
Thank you, Shuang. Thank you all for joining our conference call today. Before I update you on financial details, I would like to elaborate on the impact of the newly adopted accounting standard, ASC 606. Namely, revenues from contracts with customers, which took effect from January 1st, 2018. By applying the modified retrospective method under the new standard, sales tax and surcharges, which were previously presented as a component of cost of revenues, are now presented as a reduction items of revenues. Some advertising for advertising barter transactions, which were previously not recognized as revenues, are now recognized as revenues. For comparative purposes, herein we will provide our financial highlights under the prior accounting standard, ASC 605.
For the amounts and ratios under the new accounting standard, ASC 606, please refer to our earnings release where we have provided financial items under both the prior accounting standard and the new accounting standard. Let me take you through our financial highlights for the fourth quarter of 2018. The amounts mentioned here are all in RMB. Unless otherwise noted, the differences between GAAP and non-GAAP consist of share-based compensation and income or loss from equity method investments, net of impairment. iFeng's total revenue for the fourth quarter 2018 were RMB 434.1 million, representing a decrease of 6% from RMB 661.8 million in the same period last year. Non-GAAP net loss attributable to Phoenix New Media Limited for the fourth quarter of 2018 was RMB 36.2 million, as compared to non-GAAP net income attributable to Phoenix New Media of RMB 11.6 million in the same period last year.
Non-GAAP net loss per diluted ADS in the fourth quarter was RMB0.5, as compared to non-GAAP net income per diluted ADS of RMB0.16 in the same period last year. First, I will provide details on our revenues for the quarter. Net advertising revenue for the fourth quarter decreased 5.3% to RMB388.7 million from RMB410.5 million in the same period last year. The decrease was mainly due to the 14-day suspension starting from September 26th, which mainly affected Q4. In addition to that, we are also experiencing the cutting of advertisers' budget due to economic downturn. Paid service revenue for the fourth quarter of 2018 was RMB45.4 million compared to RMB51.2 million in the same period last year.
Revenues from digital entertainment were RMB31.6 million compared with RMB39.5 million in the same period last year, which was due to a 23.2% decrease in the MVAS revenues, mainly resulting from the decline in users' demand for services provided through telco operators in China. Revenues from digital reading decreased by 15.5% compared the same period last year, which mainly due to the tightening regulations in China regarding online digital reading content and the impact of the 14-day temporary service suspension. Revenues from games and others for the fourth quarter of 2018 were RMB 13.8 million, representing an increase of 17.2% from RMB 11.7 million in the same period last year. In late December, we have invested into Tadu, and we are able to consolidate its financial statements for the three-day period from December 29th- December 31st, 2018.
The revenue of Tadu for the three-day period was RMB 1.1 million, which was included in the consolidated paid service revenues. Non-GAAP gross profit for the fourth quarter of 2018 was RMB 219.3 million, compared with RMB 254.3 million in the same period last year. Non-GAAP gross margin for the fourth quarter of 2018 was 50.5%, compared with 55.1% in the same period last year. Non-GAAP content and operational cost as a percentage of total revenue was 34.9%, as compared to 30.8% in the same period last year. Revenue sharing fees as a percentage of total revenue was 3%, as compared to 2.7% in the same period last year. Bandwidth cost as a percentage of revenue was 3.3%, as compared to 2.8% in the same period last year.
Sales taxes and surcharges were RMB 35.8 million for the fourth quarter of 2018, as compared to RMB 39.9 million in the same period last year. Non-GAAP operating expenses for the fourth quarter of 2018 were RMB 252.3 million, as compared to RMB 255.1 million in the same period last year. Non-GAAP operating loss for the fourth quarter was RMB 33 million, as compared to a non-GAAP operating loss of RMB 1 million. Non-GAAP operating margin for the fourth quarter of 2018 was negative 7.6%, as compared to negative 0.2% in the same period last year. Net loss attributable to iFeng for the fourth quarter of 2018 was RMB 36.8 million, as compared to net income attributable to iFeng of RMB 11.8 million. Non-GAAP net loss attributable to iFeng for the fourth quarter of 2018 was RMB36.2 million, as compared to RMB 11.6 million in the same period last year.
Non-GAAP net loss per diluted ADS for the fourth quarter was RMB 0.50, as compared to RMB 0.16 in the same period last year. I will discuss our balance sheet. As of December 31, 2018, the company's cash and cash equivalents, term deposits, and short-term investments and restricted cash were RMB 1.36 billion, or approximately $197.3 million. Restricted cash represents deposits placed as security for banking facilities granted to company, which are restricted as to their withdrawal or usage. Let me briefly run through the key figures for fiscal year 2018. Total revenues for 2018 were RMB 1.5 billion, as compared to RMB 1.58 billion in 2017. Net advertising revenue decreased by 3.4% to RMB 1.31 billion from RMB 1.35 billion in fiscal year 2017, primarily due to the decrease in PC advertising revenues, which was partially offset by the 28.9% year-over-year growth in mobile application advertising revenue.
Total fiscal 2018 non-GAAP gross profit decreased by 8.5% to RMB 780.2 million, which represents a 52.2% non-GAAP gross margin, as compared to 54.1% in 2017. Non-GAAP operating loss for 2018 was RMB 111 million as compared to RMB 35.8 million in fiscal year 2017. Non-GAAP operating margin for 2018 was -7.4% as compared to +2.3% in 2017. Non-GAAP net margin for 2018 was -3.7%, as compared to +3.3% in 2017. Non-GAAP net loss attributable to iFeng for 2018 was RMB 54.6 million or RMB 0.75 non-GAAP net loss per diluted ADS. I'd like to provide our business outlook for the first quarter of 2019. We are forecasting total revenues to be between RMB 254.8 million and RMB 274.8 million, representing a decrease of 10.6%-3.5% year-over-year. For net advertising revenues, we are forecasting between RMB 193.8 million and RMB 208.8 million, representing a decrease of 20.4%-14.2% year-over-year.
For paid service revenues, we are forecasting between RMB 61 million and RMB 66 million, representing an increase of 47.1%-59.2%. We are experiencing a macroeconomic slowdown in China and it's expected to persist for some time, resulting in near-term headwinds. We are implementing measures and initiatives to actively combat these challenges by enhancing our revenue streams from online reading services, upgrading our original content production capabilities, and expanding the scope of our product offerings to a broader user base. As we continue to augment and diversify our content, we will further invest in our offerings, including We-Media content, while also creating more original culture and lifestyle-oriented talk shows. We will introduce more short video content along with paid products such as digital reading, audio novels, and et cetera.
We are confident that these initiatives will enable us to go back to growth cycle, that our total revenue is expected to be increased by over 20% in 2019. This concludes the prepared portion of our call. We are now ready for questions. Operator, please go ahead.
Thank you so much. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you wish to ask a question, you will need to press star and one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the pound or hash key. Once again, if you wish to ask a question, you will need to press star and one on your telephone. Our first question comes from the line of Frank Chen from Macquarie. Frank, the line is now open.
Good morning, Shuang Liu, Betty Ho, and Qing Liu. Congratulations on realizing the investment return on Yidian. I have a couple of questions now. The first one is on the proceeds. Could management share with us more color on your plan with the proceeds from disposing Yidian? The second one is for our core portal business. What's the strategy, especially on your iFeng mobile app, how should we think of the competition? Betty Ho mentioned that we are expecting a 20% year-over-year increase in revenue. Could management also share some outlook on the portal advertising revenue in 2019? The third one is for online reading. We noticed that there are several emerging players in this industry, like Meituan and Lianshang, who are growing very fast in 2018. They offer free online reading service and monetize through advertising.
China Literature is going to launch their free product in second quarter. I wonder if management could share some thought on our online reading business, on our strategy, business model going forward. The last question is on the lifestyle initiative. Could management share with us more color on the user base on these lifestyle verticals? How many DAUs or MAUs do we have on the entertainment or food verticals, the trend on the user growth? That's all my questions. Thank you for taking my question again.
Hi. Yeah, you did ask a lot of questions. Let me try to address your questions. First, regarding the use of the proceeds of the Yidian. Yes, as you said, we have entered into a letter of intent with the potential investors. Yidian has proven to be one of the most successful investments we have made in the past several years. We are especially proud of generating a handsome ROI within just three years. As for dividend policies, we believe that less than 10% of all Chinese internet companies have paid dividends in the past. Those who adopt a dividend policy are mostly engaged in the gaming business and are profitable. For us, we are still in a transitional period and expect to continue generating loss in the near future.
When we think about the use of proceeds and also dividends, on one hand, we want to share the return on investments with our investors and our shareholders. More importantly, we are thinking about the best ways that we can utilize the capital to strengthen our core competence. The key areas that we are focusing on include enhancing our AI capabilities, expanding our content library, accelerating our user base expansion, improving the monetization capabilities of our apps, strengthening our brand influence, and also exploring more investment opportunities in new markets in a similar fashion to our investment in Yidian, which are also complementary to our brand and existing business. In fact, we already have identified a few key targets, and we will definitely keep our investor updated on our progress on this. This is about Yidian's, the use of proceeds on Yidian investments.
Your second question is about our new media apps. Our goal is to make our app one of the leading news apps in China. I think the strength of this product lies in our deep understanding of user media consumption behavior and the collaboration between our editorial capability and our AI capabilities. On the We-Media front, our recent focus has been concentrated in the following areas. First, we expand our We-Media operations. We are focusing our efforts on the top-performing We-Media accounts, specifically on the improvement in viewership and interaction with their followers. Second, we are reassessing ratings to our top-performing We-Media accounts. We will also leverage the synergy between our expert editorial team and our smart algorithm to ensure the accuracy of our rating system.
In addition, we are implementing a new CPM-based incentive plan along with our current fixed revenue-sharing structure to further encourage high-quality creation from our content producers. Third, we are strengthening the synergy and coordination between our We-Media department and our vertical channels. The close collaboration will allow us to effectively identify and evaluate the premium resources in each vertical space so that we can maximize the efficiency of our We-Media connection. Also for the collaboration between our AI algorithm and our editorial teams, we are focusing on two key areas. First, on the coverage of hot topics. We now have much more detailed operating guidelines. We also improved the collaboration across different channels, we have established new strategies to enhance the depth of our coverage of hot topics, the distribution of content, and the synergy with our algorithm. We aim to expand our premium content.
We have introduced clear incentives and more specific KPIs for each of our channels to ensure that our editorial team can effectively identify premium content on a daily basis. We can utilize our algorithm to improve distribution efficiency. On the user base expansion front, we will pay particular attention to the ROI, as I said in our opening remarks. I mean the ROI of our user acquisition efforts. We will terminate channels with low ROIs and carefully monitor the cost of our user acquisition to improve the efficiency of our user base expansion. Also on the content reviewing and product development, we'll have new plans, but it's still in the process of formation. I will keep the investor updated. As to our efforts on lifestyle-related areas, right now, we don't have a plan to develop independent apps.
Basically, the effort is to beef up the content reserve on lifestyle-related areas. Like I said in my opening remarks, food, beverage, vintage wine, travel, luxury goods, stuff like that. That will address the main focus of middle class, because there's very high demand for high-quality content in lifestyle-related areas. We're going to come up with plans to fully address their demand in these areas through short-form video, offline activities, industry awards, exhibitions, and celebrity interviews. This will also mark the strategic shift from a focus on the transfer sphere, also to the lifestyle-related content. Betty, you might want to-
Yes. Hi, Frank, this is Betty. With regards to your question on online reading strategy, we understand that the online reading market is very competitive with the competitors that you mentioned earlier. Our strategy is not going to have a head-on competition with them. Our positioning is to operate as a closed-loop IP ecosystem. By combining Tadu and our own mobile application, FanYue, we believe that we will create synergies between two. Tadu, as mentioned earlier, their strength is at technology and distribution. Our own FanYue's product strength is on brand and content. By combining these two, we are confident that we can create a close loop of the IP operation, meaning that for FanYue, we are going to attract a lot of quality writers, and then through Tadu we can distribute to our users.
On the other hand, in terms of IP extension, we have already extended to providing film and TV series to audiobooks, to comics, et cetera. This will create a closed loop for our own ecosystem, which what we are positioning at the moment. In fact, our FanYue's applications has increased by two times in terms of revenue in 2018. Our IP operation's revenue has increased by three times in 2018. By combining Tadu's distribution and technology, we believe that in the coming years we are going to have a very strong growth period.
Thank you. Very clear.
Thank you so much.
Thank you.
Thank you, Frank.
Our next question comes from the line of Chuk Li from First Shanghai Securities. Chuk, your line is now open.
Hi, management. This is Carmen on behalf of Chuk. Thanks for taking my question. My question is regarding your original video. Could you elaborate the strategy and focuses on it, and how much are you going to invest, and how should we expect the revenue from it?
Hi, this is Shuang. Let me answer your question. The demand for video content from online users is enormous. The competition to produce the best for online original series and variety shows is obviously very intense. The hyper-competitive environment forced us to adopt a video strategy that differentiate us from the competition. In the past, we have accumulated extensive experience in producing history, culture, and interview shows. I think we will still leverage this experience to implement the format of variety shows into our culture-related shows and the celebrity interviews to create more online series based on our own IP. Also, we will engage in constant communication with our advertisement sponsor during every step of our content production process. We will not proceed with any capital-intensive production without first securing assured endorsements from advertisers.
In terms of capital spending, we take a relatively cautious approach, very sensitive to ROI. We believe the core competitiveness of our original video content production originates from our AD team. We boast industry leading talents, such as the former executive director from Phoenix SATV, Liu Chun, and the primary producer of award-winning live interview program, Lu Yu Yue, "A Date with Lu Yu." We also accumulated an extensive network of resources in the domestic television space and valuable insights into the development of live interviews and high-paying reality shows. I think we will strive to achieve breakthroughs in video content with our ability to create and present videos in innovative ways, which we believe will differentiate us from our peers and the competitions. From competitive point of view, at the present stage, we cannot quantify too much on this. Thank you.
Okay, thank you. It's very helpful.
Thank you so much. Once again, ladies and gentlemen, if you wish to ask a question, it's star and one on your telephone. All right. Our next question comes from the line of Justin Leo from Calyx Advisors. Justin, your line is now open.
Hi there. Can you hear me? Hello?
Hi, Justin. Yes, I can hear you. This is Betty.
Hi there. Just to clarify from what Shuang said before, did he say that you are definitely not planning on issuing any kind of one-time special dividend from the sale of Yidian?
No, we didn't say that. We did not say that. I said our primary focus will be on. In the next two years, we're going to still generate loss. We're going to expand our AI capability and content library, and we're still looking at some other investment opportunities. We definitely want to share our investment return with our investors, that's for sure.
You are considering a dividend?
We are considering it. Yeah.
Okay. I think the way I look at it, and I guess the way other shareholders probably look at it's your job as CEO and the board to be proper stewards of capital and make some proper capital allocation decisions. I'm sure you'd agree.
Yes.
As it stands right now, you have about $600 and something million after this deal closes. I don't think you need anywhere near that much capital to run your business and invest for growth. Even if you considered half or less than that in the form of a one-time dividend, it seems to me that it would make sense, especially given that the market doesn't seem to be giving you guys any benefit of the doubt or value for your current operations, right?
Okay. Thank you. Yeah. We definitely are considering issuing special dividends. We are also striking a balance between our future strategic investments and operating challenges. Also the need to share our investment return with our shareholders, that's for sure.
Thank you so much.
Okay.
Once again, it's a star and one if you wish to ask a question. All right, our next question comes from the line of Binbin Ding from JPMorgan. Please do ask your question.
Good morning. Thanks, Franklin, for taking my question. I have a question on your digital reading strategy. I am not sure if this question being asked or not. Generally, there is a lot of debate on the paid reading and free reading business models. We have seen a lot of the new players entering into this market. We recently increased our stake in Tadu, and I would like to share your thoughts on your strategies on how to monetize Tadu in the mid to long run. Thank you.
Thanks, Binbin. This is Betty. Actually, Fran just asked that. I have answered that. In short, be rest assured that we are not going to have a head-on competition with those big players in the market. Our positioning is to operate as a closed loop IP ecosystem, riding on the brand and content capabilities of iFeng itself and also Tadu's strength on distribution and technology. We believe we are able to attract a lot more quality writers. Based on their distribution technology, we are able to expand our original content to not only books, but also to film, TV series, audiobooks, and also comics. By diversifying into those products, we are going to operate as a closed loop IP ecosystem. In this way, we believe that will sustain our growth in the future.
In fact, our own mobile app from our FanYue application, the revenue has been increased by two times in 2018. Our IP operations has been increased by three times. We believe that it will continue.
Thanks for clarity. Thanks, Betty.
Thank you so much. There are no further questions at this time. Please continue. Thank you.
Thank you.
Thank you all