Dagang Feng
Thank you. Hello, everyone. Thank you for participating in our 2021 second quarter results conference call. In the second quarter of 2021, we continue to enhance content quality and influence while strategically focusing on enterprise services as our growth driver. These efforts broadened our new economy-focused content offerings and value-added services further developing our core competencies and spearheading business innovation. We have made robust progress in content arrangements with diversified presentation from us to meet the needs of varied user groups. We are also exploring possibilities for innovative services. Moreover, our progress in products and technologies is paving the way for us to empower the growth of new economic participants as well as the digitalization of traditional industries creating a compelling value proposition for more customers, users and investors in this new area of fresh opportunities and challenges. Our second quarter user traffic volume reached a new high of average monthly page views of 846.3 million, up 17% year-over-year. The second quarter of 2021 marks our 17th consecutive quarter of PV growth, reaffirming our strong user resonance and our growing brand awareness. The rising popularity and recognition of 36Kr’s content and platforms largely stems from our continuing innovation in flexible content formats, omni-channel content distribution and our ingenuity in broadening our horizons. Let me walk you through our progress and our strategy in each of these areas. First, with respect to content strategy, we present content in various formats across a wide range of business sectors to address the full spectrum of user demand. Our proprietary platform delivers comprehensive reports and insights across those professional and user-generated content or PGC and UGC. In addition to traditional tax and image format, we have expanded our offerings to audio, short video and live running, etcetera covering that users for – users feedback regarding each of these information dissemination channels has been quite positive. We continue to make progress with those traditional and innovative content formats during the second quarter. Notably, the number of articles published on our primary retail accounts with leadership of over 100,000 grew to 180,000, a new record. Other exciting common initiatives include our audio program, Kr Walkman, which provide user with the latest business highlights, insured segments that just take – just a few minutes to digest. Meanwhile, our short form video covering various topics, including PAM business, current public affairs, economics and finance and personnel growth, also gained popularity among various groups of consumers and users. In terms of content general diversify 36Kr main accounts we also have a full scale of content metrics that covers different topics. For example, of Kr Pro column targets professional groups with in-depth industrial insights and also targets the younger audience and covers lighter business and more pod-like topics is rapidly becoming popular and gaining growth momentum among younger generations. Second, we continue to execute our omni-channel distribution strategy in addition to becoming a top content provider in the finance and economics vertical on WeChat, we bought , an audio comprehensive traffic platform, 36Kr has also been building business co-operations with top tier short video platforms such as Douyin, Bilibili, , Xiaohongshu and regional channels. Leveraging our progress in short from video content, this collaboration enable us to reach more diversified individual user communities and provide them with a variety of business insights and analytics content. Our initiatives to promote short video and live streaming content are crucial for us to diversify our CN user base to further tap into B2C service offerings. Now, I would like to talk more specifically about our short-form video content. It has been exactly a year since we embarked on our short-form video initiatives and the business is rapidly growing popularity across diverse demographics. We are very pleased to see that we have attracted more than 4 million followers in Douyin and more than 800,000 followers on Bilibili among other platforms. Based on multiple criteria, including follower base, content depth, virtual performance, insurance tracking, 36Kr has been recognized as one of the top tier short-form video business verticals across all major social media platforms. We had a notable success in the second quarter with our blockbuster video, the meaning they haven’t changed yourself, which we published on Bilibili and several other platforms. This current affairs content attracts a record sizing viewership of over 30 million total views for 3 consecutive days. We are also excited to share that our recent video clips on interpretation of the Olympic Games economy set new highs, receiving more than 100 million total views and 1.42 million likes and adding 22,000 new followers. By the middle of the August 2021, 36Kr’s short form video has already achieved its annual target of gaining 2 million new followers. This accounting number further validates that increasingly throughout individual user community is enjoying and consuming our content, which in turn drives B2C business marketing spend – spending on our platform. Looking forward, we believe our short video content initiatives will continue to attract a wider range of user communities and boost our commercialization capabilities. Third, we continue upgrading our product offerings for public equity markets. Our secondary market products are a natural extension of our rich experience and expertise in serving startup companies over the past 10 years and are quickly gaining traction. For instance, in July, we joined forces with industrial securities to hold an investor forum covering topics around both the private and secondary markets. We are also collaborating with CICC to cooperate 36Kr Capital client, a new program focusing on individual investor education, which greatly enhance our influence and recognition in both institutional and individual investor circles, diversified our customer base and laid a solid formation for customer expansion in the secondary market. First, we celebrated the grand opening of our new dual headquarters in Shenzhen, a move to capitalize on the opportunities in the Greater Bay area. The Greater Bay area is drawing attention as a fast developing innovation and technology hub that offers exciting opportunities to startup from around the world. We noticed that a multitude of unneglectable hard and core technology startups have emerged in Guangdong province at a considerable number of investment institutions have setup branches in Shenzhen, given that industrial internet and hub technology are extremely popular and available to us, supported by both the clients and the investment community. Strategically, selected for its central location, Shenzhen will serve as our hub on which we can gain access to surrounding startups and investment institutions in South China’s Greater Bay area. The establishment of our 36Kr’s South China headquarters will enable us to better meet the needs of local customers and respond to them more efficiently, further contributing to our commercialization capabilities. With , we are actively building 36Kr’s international presence. We are excited to report that Bloomberg journal will be including 36Kr’s article in its news page during the second quarter, making our latest coverage available to global readers. At the same time, our overseas business is making steady progress and gradually become profitable. We have seen a significant increase in revenue during 2021 and our presence in Japan and Singapore has continued growing. We are pleased that 36Kr’s brand influence is gaining traction worldwide. Now, let’s take a look at our commercialization progress, thanks to our cultivation in content and products. In the second quarter, all of our three business segments achieved strong year-over-year growth on a comparable basis. Let me walk you through each of them. Our advertising revenue increased by 65% year-over-year this quarter with growth in both the number of advertising customers and average revenue per advertising customer. We continue to harness our capability in video content creation to provide customized and innovative short form video marketing solutions for traditional enterprises, improving their brand image and operating their marketing take the automobile industry, for example, Volkswagen China join hands with 36Kr and launched a short video title, what will the future looks like to describe future automobiles from a brand new perspective. This marketing campaign helped Volkswagen successfully reach more potential customers. It was also importing branding and publicity platform for Volkswagen to position itself from a traditional carmaker to a mobility service provider, further validating our efforts to broaden and surpass the boundaries of conventional marketing through seamless content integration. Short form video is also enabling us to develop new marketing solutions and penetrate more into the CN brands and advertising clients. For example, we help promote its new products, A-MAX with a short form video that was well received by younger generations. took this opportunity to book away from the stereotype of direct marketing and was very satisfied with its publicity collaboration with 36Kr. We believe that by creatively reshaping marketing programs for the future, we can empower more brands with effective B2C solutions. Our secondary market product has also started initial commercialization this quarter. We have entered into collaboration with Alibaba, Trip.com Group, . We will provide in-depth analysis from 36Kr’s unique perspective, showing case a holistic corroborate image for our customers. Next, I would like to share with you some updates in the enterprise service business space, supported by our high-quality content, brand influence as well as expansion of innovation verticals. Brand transaction value for our enterprise value-added services grew by 66% in the second quarter year-over-year. But first, we continue to explore various new application scenarios and distribution channels for our financial content. For example, on the audio content front, we collaborated with NIO to broadcast our podcast program, Care Intelligence on the new radio playlist. We also cooperated with several financial institutions, including China Merchants Bank, selling as an agent to help them operate their apps content, covering a range of topics such as finance, financial planning and career related issues. Through this new partnership, we effectively expand our content distribution and commercialization opportunities. In addition, organizations online and offline submission forum is also important component of our enterprise value-added services. This quarter, we partnered with Google to create google.36kr.com website helping Google host multiple online forum on gaming, brand marketing and brand transformation of cross-border e-commerce. This will in fact also demonstrate the deep bond between Google and the 36Kr, allowing each company’s users to better interact with each other and providing a trendy approach for both companies to attract new users and increase user loyalty. Google’s global online activities broke geographical barriers and surpassed time differences leading participants access leading industry pioneers experience and insights at any time from anywhere. On offline even front, we co-hosted an unknown city of tomorrow event with leading real estate enterprises to building a visionary and imaginative world. The event showcased our capabilities to interact with its user in creative and interesting ways and further strengthened our brand image among the worst audience from younger generations to middle-aged group as well as other user demographics. Moreover, the continuous progress of our enterprise value-added service has laid a solid foundation for 36Kr’s regional expansion. We have been working proactively to expand our cooperation with local governments to serve the municipalities and regional business. During the second quarter, we opened business branches into new provinces, bringing our total regional offices to 12. Building on 36Kr’s spread influence and local business presence. We help enterprises and governments build big relationships, connecting both parties needs and solutions. In June, we hosted the Science and Technology Innovation Conference for the government of Jinshui district in Zhengzhou Hanan Province. The event attracts coverage from more than 100 leading media houses, including CCTV and greatly improved visibility of the Jinshui districts innovative trends and technology sectors as well as 36Kr’s capabilities in the enterprise and government service area. We also recently started commercialization of our 36Kr’s Enterprise account service, a self-service product. 36Kr Enterprise account is an efficient introductory window for enterprise to increase brand awareness, exhibit products, share its business progress with a wider audience and appeal to economy sectors. 36Kr has gone with generations of entrepreneur and enterprises. We are now leveraging our brand to build a platform where a wider range of companies can exhibit their skills, services and accomplishments. In the new economy era, we hope to empower more high-quality enterprises and help them gain market recognition and acquire customers. We were very pleased to see the 36Kr Enterprise account service begin to generate revenue in August. And we believe that with our brand influence, this new service has a promising future. Now I’d like to particularly introduce our progress in the enterprise service review business. In recent years, the government has been actively advocating for the integration of the economy and Internet as well as digital transformation in various industries. At the same time, the investment community is leading a slowdown industry end market and declining margin return on customer acquisition. Therefore, we believe the industrial Internet economy enterprise service – are its core will soon offer huge development opportunities as new economy enterprises and traditional enterprises have intrinsic for digital upgrades and digital transformation, respectively. With this background, in October 2020, 36Kr launched an enterprise service review portal, the first comprehensive enterprise service procedure decision-making platform in China. It’s a one-stop platform solution aiming to facilitate service providers to acquire customers and demand side to make informed decision. The platform delivers information emerging from the three layers: service, interaction and data. On the service layer, we provide customers with one-on-one consolidation, self-helping learning tools and social community functions. On the interaction layer, we help customers search for a future information in multiple dimensions with content comparison services and key decision-making reports. At the data layer, we provide customers with industry data and category information, process, features, real name reviews and commentaries as well as successful case studies and supplier private information, etcetera. Over the past 3 years, 36Kr has accumulated in-depth expertise and unique advantages in providing enterprise services. For example, supported by proven content capabilities, we have built a database of over 800,000 new economy enterprises and accumulating numerous top experts and key opinion leaders, KOLs. We can also help users gain access to relevant industry associations resources and enhance their understanding of the industry. 36Kr Enterprise Service Review portal is the first domestic enterprise service platform providing real name comments and is widely recognized as the of the 2B market. Our professional graph of enterprise service software is far more sophisticated than that of our peer – our peer providing similar service. Our detailed classification of the SaaS industry is worked into a main category and subcategories, which has become the industry benchmark in standards. As the first enterprise service review platform in China, 36Kr Enterprise Service Review portal has become the most comprehensive and about enterprise decision-making platform. By the end of the second quarter, the review portal had showcased over 4,000 enterprise service applications covering software across 15 industries and 200 categories. Meanwhile, we have received thousands of real user comments in with dozens of industry experts to join the platform offer their opinions to help the demand side make better experience. Moreover, building on our own in-depth understanding of the industry, we are able to further enhance our enterprise service with rich content support. Recently, we started initial commercialization of the renewed portal service. In May by introducing its products in a more expressive and logical way and improving user interaction, we successfully help a SaaS service provider, obtain more sales lease. This lease have estimated conversion rate as high as 20%, while the cost of conversion was greatly reduced. We believe that as we continuously refine our products and retail commercialization, we believe our enterprise service review portal will become a new driver of the company’s future growth. We will unlock tremendous value on our way to expand the boundary of medium and tap into more enterprise services. Lastly, turning to our subscription service. In the second quarter, we revamped our subscription service model, a witnessed a revenue growth of 124% year-over-year. Our subscription membership service are available through both online and offline channels. Online subscription will focus on the care column within our 36Kr app, prepaid knowledge products and audit clear training program, helping college students and new recruits to improve their professional skills. For off-line subscription service, we offer membership programs such as Entrepreneur Star and Speedway Stock Classes bringing opportunities for practitioners and various views to engage in deep communication and interaction with industry leaders and experts face to face. In the second half of this year, will continue to expand the broad and depth of our subscription offerings for our users to better satisfy their needs and further improve user stickiness. In summary, in the second quarter of 2021, 36Kr continued to enhance its influence on new economy-centered content offerings, due by achieving growth in both user track value and the number of total followers on all platforms. We are pleased to have delivered strong financial results in the second quarter, exceeding analysts’ expectations on all key financial measures, led by our words set the motion and investment in our enterprise service review business. The company has delivered several initial results by innovating and exploring the commercialization opportunities of our new business initiatives. Looking ahead, we believe that 36Kr is all poised to capitalize on the readiness of real economy, industrial Internet and hard and core technology to create brand new development opportunities. With that I’ll now turn the call over to our VP of Finance and Capital Markets, Mr. Wei, who will discuss our key financial results. Please go ahead, Wei.
