Gamehaus Holdings Q1 2026 Earnings Call - Gradual Margin Improvement Amid Stable Revenue and Strategic DTC Expansion

Conference Operator: Good day and welcome to the Gamehaus Holdings First Quarter of Fiscal 2026 Earnings Conference Call. All participants will be in listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today’s call. If you have any objections, you may disconnect at this time. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. I will now turn the call over to today’s speaker host, Mr. Jack Wang. Jack, please proceed.

Jack Wang, Speaker Host, Gamehaus Holdings: All right. Thank you, Operator. Hello, everyone. Thank you all for joining us on today’s conference call to discuss the financial results of Gamehaus Holdings for the first quarter of fiscal year 2026. We released our earnings results earlier today. The press release is now available on the company’s website as well as from NewsWire Services. On the call with me today are Mr. Brian Xie Feng, Chairman of the Board, Mr. Carl Cai Yimin, Chief Executive Officer, and Mr. Shawn Zhang, Head of Capital Markets and Investor Relations. Brian will review business operations and company highlights, followed by Shawn, who will discuss detailed financial results. They will all be available to answer questions during the Q&A session.

Before we proceed, I would like to remind you that this call may contain forward-looking statements, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations. For detailed discussions of the risks and uncertainties, please refer to our filings with the SEC. Also, please note that, unless otherwise stated, all figures mentioned during the conference call today are in US dollars. With that, I would like to introduce our Chairman, Brian. Brian will deliver his remarks in Chinese, and I will follow up with corresponding English translations. Please go ahead, Brian.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 各位投资人以及关注公司的朋友们，大家好。感谢大家收听 Gamehaus 2026 财年第一季度的业绩电话会。

Jack Wang, Speaker Host, Gamehaus Holdings: Good day, everyone. Thank you for joining Gamehaus’s earnings call for the first quarter of fiscal year 2026.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 这一季度，我们在业务整体继续保持稳健运行的同时，也在持续努力改善盈利能力。本季度，我们总体营收水平达到了约 $27.7 million，达到了上季度我们所给出的业绩指引目标。更重要的是，我们的净利润水平正在持续改善。这个季度的净利润同比增长约为 18%，而净利润率约为 6.7%，相较上个季度的约 5%，也环比有了进一步的提升。过去几个季度，我们在产品组合、投放节奏、成本结构等方面都做了大量的调整，目的是让公司全面转向以效率和确定性为核心的长期可持续发展模式。

Jack Wang, Speaker Host, Gamehaus Holdings: This quarter, our business remained stable while we continued to make meaningful progress in enhancing our profitability. Revenue came in at approximately $27.7 million, in line with the guidance we provided last quarter. More importantly, net income continued to improve, growing about 18% year over year. Our net margin was approximately 6.7%, reflecting a sequential improvement from about 5% in the prior quarter. Over the past several quarters, we have taken deliberate actions across our product portfolio, user acquisition strategy, and cost structure to transition the company towards a more efficient, predictable, and sustainable long-term operating model.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 在新财年的第一季度，我们持续针对买量投入和营销支出的优化措施，更加注重投资回报。具体来说，我们在用户获取上的广告投入有所减少，对成熟产品的营销策略进行了调整，从而降低了市场推广费用。我们的整体费用结构更加精简高效，这些举措直接促进了利润率的提高。在保证核心业务稳定运营的同时，成本效率的提升也为公司盈利能力打下了坚实基础。

Jack Wang, Speaker Host, Gamehaus Holdings: In the first quarter of the new fiscal year, we continued to optimize user acquisition and marketing spend with a sharper focus on return on investment. Specifically, we reduced advertising spend in user acquisition and refined our marketing strategy for mature titles, which helped lower overall promotional costs. As a result, our operating expenses came in leaner and more efficient, directly contributing to higher margins. These improvements, combined with the continued stability of our core business, have strengthened the foundation for long-term profitability.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 在新产品方面，我们正在持续稳健推出新品的上线节奏和新品储备。本季度末，我们上线了一款新的 RPG 游戏，目前还处于早期运营阶段。我们将根据数据反馈持续打磨优化。这款产品推出也进一步为我们发行 RPG 品类积累了宝贵的经验。

Jack Wang, Speaker Host, Gamehaus Holdings: On the product front, we continue to advance our development and launch pipeline in a steady and disciplined manner. Towards the end of the quarter, we released a new RPG title that is still in early stages of operation. We will continue refining the game as we gather more data and player feedback. Importantly, this launch has also expanded our experience in the RPG category and strengthened our capability for future releases.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: budgets for these future new products, striving to achieve excellent results when the new products are commercialized and launched.

Jack Wang, Speaker Host, Gamehaus Holdings: Looking ahead, we are laying the groundwork for a robust mid to long-term pipeline. Among our upcoming titles, we expect to launch a new RPG before March 2026. The project is backed by a highly experienced development team, and early testing results have been very encouraging. It represents one of our most significant and thoroughly validated investments in recent years. In parallel, we are evaluating several teams with promising but not yet fully commercialized games, where we believe our GBS capabilities can meaningfully improve their probability of success. Over the past several months, we have focused on identifying projects with clear product-market fit, verifiable traction, and a high likelihood of success. We currently have multiple titles in development or testing across both puzzle and RPG genres. We have set aside sufficient marketing budgets to ensure that these products are well supported at launch and positioned for strong commercial performance.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: will also significantly improve our profit structure.

Jack Wang, Speaker Host, Gamehaus Holdings: We are also closely monitoring regulatory developments and the growing industry shift towards direct-to-consumer or DTC contribution. Google’s recent policy changes in the U.S. significantly expand the flexibility for third-party payments, and we view this as a major positive catalyst for the mobile gaming ecosystem. We believe DTC adoption will become an industry-wide trend and an important driver of margin improvement over time.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 目前我们正在能力所及的范围内尽快推出 DTC 比例的上升。在 ROS 端，我们的一款旗舰产品的 DTC 流水贡献在 8 月份还只有 10%左右，而在这个季度末，我们已经达到了约16%。预计在下一个季度能够超过30%。这使我们能够更好地服务玩家并节省平台分成。整体来看，公司当前通过 DTC 取得的收入占比仍然在个位数，但随着更多游戏加入 DTC 的行列，尤其谷歌开放更多的国家或地区市场的 DTC 渠道后，我们预期这一比例将在未来几个季度稳步提升。到2026年上半年，我们预计公司整体 DTC 占比有望达到并超过15%。这将有助于我们进一步提升利润率。DTC模式的推进意味着我们可以与玩家建立更直接的联系，提高用户粘性，同时减少商店抽成，从而显著地改善利润率。从行业中长期影响来看，我们认为 DTC 的兴起将重塑移动游戏的发行格局，让发行商拥有更大的自主空间和盈利空间。

Jack Wang, Speaker Host, Gamehaus Holdings: Within our own portfolio, we are accelerating DTC integration wherever possible. On iOS, the DTC revenue contribution from one of our flagship titles increased from roughly 10% in August to about 16% at the end of this quarter, and we expect this number to exceed 30% in the next fiscal quarter. This gives us a more direct relationship with players and reduces platform fees. At the company level, DTC still accounts for a single-digit percentage of total revenue, but we expect this mix to rise steadily in the upcoming quarters as more titles transition into DTC channels and as Google opens DTC access in additional markets. By the first half of calendar 2026, we anticipate our overall DTC contribution to reach or potentially exceed 15%, which should provide an incremental lift to our profitability.

The adoption of DTC strengthens direct engagement with players, enhances retention, and meaningfully improves margin structure by reducing store commissions. Over the mid to long term, we believe that the rise of DTC will reshape mobile publishing models by giving publishers greater control and economic upside.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 在区域策略上，北美与欧洲依然是公司的主要收入来源，但随着多个 RPG 项目的推进，我们未来会在日本、韩国、港澳台以及东南亚等亚洲高 Up 市场投入更多资源。相较于欧美用户偏向休闲化、碎片化的玩法结构，亚洲玩家对 RPG 的接受度与付费意愿都更高，而这与我们即将推出的机关产品非常匹配。AI 与 GBS 的融合让我们具备跨区域复制能力，这是公司未来多元化增长的重要支点。

Jack Wang, Speaker Host, Gamehaus Holdings: From a regional perspective, North America and Europe remain our largest revenue markets. However, as we advance multiple RPG projects, we plan to increase our investment in high RPU Asian markets, such as Japan, Korea, Hong Kong, Macau, Taiwan, and Southeast Asia. Compared with Western markets, where gameplay preferences tend to favor casual and shorter session formats, players in Asia show stronger engagement and monetization behavior in RPG genres. This aligns naturally with the new titles in our pipeline. The combination of AI and our GBS infrastructure gives us the ability to replicate and scale our publishing and operating capabilities across multiple regions, and we believe this will become a key driver of our long-term diversified growth.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 在技术能力方面，我们将 AI 视为中长期平台化能力建设的核心战略。Gamehaus 作为一家以游戏发行起家的公司，天然具备将 AI 应用于内容生产和发行的土壤。目前我们正积极探索将 AI 技术运用到游戏研发和运营的各个环节。本季度，我们进一步推动了企业级知识库与 AI 军事系统的建设，把多年在研发、运营、商业化等方面沉淀的经验结构化。通过 IAG 技术，让团队可以随时调用，用自然语言就能获得跨项目、跨区域的解决方案。它正在实质性地降低试错成本，缩短学习周期，也为合作伙伴提供了更成熟的发行能力。下个季度，我们会推出升级版的 AI Chat 引擎，进一步增强分析能力与跨部门协作的能力。

Jack Wang, Speaker Host, Gamehaus Holdings: From a technology standpoint, we view AI as a core pillar of our mid to long-term platform strategy. As a publisher with deep experience in game operations and content distribution, Gamehaus is naturally positioned to apply AI across the full lifecycle of game development and publishing. We are actively exploring ways to embed AI into every critical stage of game production and operations. This quarter, we made further progress on our enterprise knowledge engine and our AI-driven assistant system. By structuring years of accumulated insights from development, live ops, and monetization, and enabling retrieval through RAG-based natural language queries, our teams can now access cross-project, cross-regional solutions with much greater efficiency. These tools are already reducing the trial and error costs, shortening learning cycles, and enhancing the support we provide to our development partners.

In the coming quarter, we expect to roll out an upgraded version of our AI Chat Engine, which will deliver stronger analytical capabilities and better enable collaboration across teams.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 与此同时，我们也在构建美术资产的智能管理体系，通过 AI 视觉识别与元数据管理来提升素材制作、实验和协作效率。对于一家依赖持续创意输出与跨区域 A/B 测试的全球发行公司而言，这类基础设施将是未来差异化竞争的重要组成部分。其他像自动化客服、分群定价、个性化内容推送等能力也仍在持续推进。虽然这些探索尚处于早期，短期内对财务贡献有限，但对内部效率与产品迭代速度的影响已经非常深刻，并且势必将成为 Gamehaus 长期增长奠定坚实的基础。

Jack Wang, Speaker Host, Gamehaus Holdings: In parallel, we are building an intelligent art asset management system that uses computer vision and metadata tagging to improve asset production, experimentation, and team collaboration efficiency. For a global publisher that relies heavily on continuous creative output and cross-region A/B testing, this type of infrastructure will be a meaningful differentiator over time. We are also advancing additional AI-enabled functions, including automated customer support, segmented pricing, and personalized content delivery. While many of these initiatives are still in the early stages and will take time to translate into financial results, they are already having a tangible impact on internal efficiency and product iteration speed. We believe these capabilities will form a critical foundation for our long-term growth.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: prudent operations and the principle of consistently rewarding shareholders, placing long-term shareholder value in an important position.

Jack Wang, Speaker Host, Gamehaus Holdings: On shareholder returns, our board of directors approved a share repurchase program at the end of August, authorizing us to repurchase up to $5 million worth of Class A ordinary shares over a one-year period. As of October 31, we had repurchased approximately 200,000 Class A shares. Going forward, we will continue to execute this program with discipline and remain committed to maintaining a solid operating foundation while delivering long-term value to our shareholders.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: quarter of fiscal year 2026, ending December 31, 2025, at $24 million-$27 million.

Jack Wang, Speaker Host, Gamehaus Holdings: Looking ahead to the next quarter and taking into account the seasonal dynamics of our major markets during the holiday period, we are setting our revenue guidance for the second quarter of fiscal year 2026, ending December 31, 2025, at a range of $24 million-$27 million.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: 接下来请向继续详细介绍我们的财务表现。

Jack Wang, Speaker Host, Gamehaus Holdings: With that, I will now turn the call over to Shawn, who will walk you through our financial results in more detail.

Shawn Zhang, Head of Capital Markets and Investor Relations, Gamehaus Holdings: Thank you, Brian, and hello everyone. I will now provide a detailed overview of our financial performance for the first quarter of fiscal year 2026, which ended September 30, 2025. Please note that all figures are in US dollars and all comparisons are made on a year-over-year basis unless otherwise stated. In the first quarter of fiscal year 2026, our revenue reached $27.7 million as we continue to scale back user acquisition spending, with our advertising costs decreased by 13.5% year over year. We intentionally redirected resources toward developing new game categories, advancing upcoming projects, and preparing for their launch and promotion. We view this as a healthy rebalancing towards sustainable long-term growth. As a result, the reduction in marketing spend led to lower traffic and new user acquisition, which in turn impacted our top-line performance.

Breaking down our revenue by segment, in-app purchase revenue was $25.3 million, compared with $26.9 million a year ago. Advertising revenue was $2.4 million, down from $3.0 million in the same period last year. Importantly, we continue to strengthen player engagement and monetization through enhanced in-game content and live ops features. This progress is reflected in the 24.4% increase in average revenue per daily active user during the quarter. Moving on to expenses, in the first quarter, total operating costs and expenses were $26.7 million, down 6.2% from $28.5 million in the same period last year. More specifically, cost of revenue declined 5.4% to $13.3 million, primarily driven by lower platform fees and reduced profit-sharing payments to game developers.

R&D expenses increased 18.3% to $1.2 million as we continue to strengthen our platform’s AI technology and advance collaborations throughout the development and testing phases with multiple developers to build out our future game pipeline. Selling and marketing expenses were $10.8 million, 13.6% lower than $12.5 million in the same period last year, consistent with our strategy to scale back AD spending and optimize efficiency for mature titles. G&A expenses were $1.4 million, compared to $0.9 million a year ago, mainly due to higher salary expenses and professional service fees associated with being a public company and related governance enhancements. Now, moving to profitability, in the first quarter, operating income was $1.0 million, down from $1.5 million a year ago. Operating margin was 3.6% versus 5.0% in the same period last year.

Net income for the first quarter was $1.8 million, up 18% from $1.6 million in the same period last year. Earnings per ordinary share were $0.04, compared with $0.03 a year ago. We ended the first quarter of fiscal year 2026 with $15.3 million in cash and cash equivalents, slightly higher than $18.2 million as of June 30, 2025. We believe this is sufficient to meet our liquidity and working capital needs for the next 12 months. Before we conclude, I would like to briefly reiterate our outlook and capital allocation priorities. For the second quarter and fiscal year 2026, ending December 31, 2025, we expect the revenue to be in the range of $24 million-$27 million. This expectation is met in line with our disciplined approach during the calendar fourth quarter, when industry-wide user acquisition costs typically rise and overall retention trends to soften.

I would also like to remind everyone that our board authorized a $5 million share repurchase program in August this year. As of October 31, we had repurchased approximately $285,000 worth of Class A ordinary shares. Looking ahead, we will remain focused on strengthening our platform capabilities to enhance competitiveness across our publishing ecosystem, taking a prudent and selective approach to investments in games where we see clear potential and maintaining a balanced framework across growth, profitability, and returns to shareholders. With that, we can now open our call for questions. Our CEO, Carl, and I will answer your questions. Operator, please proceed.

Conference Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Additionally, when asking a question, please state your questions in Chinese first, then immediately translate them into English for the convenience of everyone on the call. There are no additional questions. Oh, excuse me. Our first question comes from Jay Lee with Guojin Securities. Please go ahead.

Jay Lee, Analyst, Guojin Securities: Thank you for taking my questions and congratulations on your strong results. I have two questions. First, we noticed an improvement in ARPDAU this quarter. How much of that increase was driven by the changes in product mix versus operational optimizations within the games? If you decide to ramp up your user acquisition again in the future, do you believe the current ARPDAU level is sustainable? My second question is regarding the capital market. The stock has shown some volatility recently, but we noticed the company has been actively executing its authorized $5 million share repurchase program with part of the buybacks already completed by the end of October. How does the management view the current share price performance? Going forward, what should we expect regarding the pace of the repurchase or your capital allocation priorities over the next few quarters? Thank you.

Brian Xie Feng, Chairman of the Board, Gamehaus Holdings: growth and efficiency. Now I will translate my answer to English. Thank you for your question. The increase in UPDAU this quarter is primarily driven by our ongoing optimization of live ops and monetization efforts, which include adding user-favored operational events, exclusive maintenance for high-value users, and targeted package pushes based on user segmentation. Meanwhile, the launch of new RPG game Jira has increased the revenue share of RPG products with higher monetization capabilities, further boosting UPDAU. Overall, the improvement is largely attributable to game operation optimization, while product structure change has also contributed to a certain portion. Regarding sustainability, with our continued focus on live ops optimization and the upcoming release of new RPG games, we believe that the current UPDAU level can be maintained at a high level, even if we ramp up user acquisition efforts in the future.

This is supported by our long-term product and operational strategies, which balance user growth with monetization efficiency. Thank you.

Shawn Zhang, Head of Capital Markets and Investor Relations, Gamehaus Holdings: can share in the results of our business development. I will translate for myself. Thank you for your second question. As we mentioned on the previous earnings call, our management believes that the company’s share price does not adequately reflect either our business fundamentals or the long-term growth potential of the global mobile gaming industry. This is why at the end of August this year, we launched our first share repurchase program, and the board has authorized us to repurchase up to $5 million of our Class A ordinary shares over a one-year period. As of the end of October, we have already repurchased approximately 200,000 Class A shares. By initiating and consistently executing this program, we aim to demonstrate our view that the company is undervalued at current levels. As you probably know, the SEC’s rules, 10B-18 Safe Harbor, impose certain constraints on issuers during buybacks.

For example, our daily repurchase cannot exceed 25% of the stock’s average daily trading volume, which is also called ADTV, over the prior four weeks. Given the current liquidity profile of our stock, you probably noticed that our repurchase activity through the end of October has actually been running near the upper bound of what these rules allow. Looking ahead, we plan to continue executing the repurchase program in a disciplined manner, taking into account our operating capital needs, while maintaining compliance with applicable limits. At the same time, we are actively exploring various ways to improve the liquidity of our stock. In addition to buybacks, we will continue to evaluate other potential shareholder return mechanisms so that long-term investors who believe in the company can benefit from the value created as our business grows. 谢谢，李洁。这是我的回答。 Thank you. That will be my answer.

Okay, operator, we can take next question. Thank you.

Conference Operator: Our next question comes from Zheng Wei Chen with Heji Capital. Please go ahead.

Shawn Zhang, Head of Capital Markets and Investor Relations, Gamehaus Holdings: 你好，管理层。喂，你好，听得到吗？你好，可以的，可以的。感谢管理层的提问。我是苏州合计投资的陈正辉。管理层，我这边有两个问题想问一下。第一个问题是，之前您有提到目前计划将旗舰产品的D2C占比从8月份的10%到今年年底提升至约30%。请问这段时间D2C占比提升对产品的用户数量、upput、利润率等核心指标带来了哪些具体的影响？第二个问题是，关注到本季度公司的净利润率有明显提升，但是下一季度的收入指引看起来仍维持在比较平的区间，甚至还有一些下滑。请问这种净利润率的改善是否有可持续性？在收入水平相对稳定的情况下，公司还能依靠哪些结构性因素推动利润持续提升？谢谢。我把两个问题翻译一下。第一个是 management mentioned a plan to increase the D2C plan mix for your flagship title from around 10% in August to approximately 30% by year-end. During this transition, what specific impact has the higher D2C mix had on key metrics such as user volume, upput, and profitability? The second question is, we saw a meaningful improvement in your net margin this quarter, yet the revenue guidance for next quarter remains relatively flat at $24-27 million and even slightly lower at the midpoint. How sustainable is this margin extension? With revenue expected to stay stable, what structural driver can continue to support further profitability improvements? Thank you.

Carl Cai Yimin, Chief Executive Officer, Gamehaus Holdings: English. Thank you for your question regarding the impact of the increased DTC share for the game on our, current, on our core metrics. We can break it down as follows: first and foremost, the most direct and significant impact is on our profit margin. The promotion of the direct-to-customer payment method effectively reduces the stock commissions paid to the platforms, which directly boosts the product’s overall profit margin. This is a primary financial benefit derived from the increased DTC share. Secondly, concerning user base and upput, it’s important to distinguish the effects. The DTC model itself as a payment method does not directly attract new users or instantly alter users’ paying habit. However, the operational measures accompanying our DTC promotion, such as guiding users to register official website accounts, offering exclusive DTC payment incentives, and establishing more direct customer service communication, have significantly strengthened our connection with players.

This helps enhance player loyalty and activity, indirectly boosting their willingness to pay, which in turn provides positive support for the long-term stability and the potential improvement of output. Looking ahead, with Google in the U.S. market now fully opening up to DTC payments, we are in a more favorable position. We plan to systematically replicate the successful DTC strategy and operational model already validated with our current games across our other product lines. We expect this initiative to further drive the overall DTC penetration rate company-wide, and ultimately optimize our consolidated profit structure. 嗯，下一个问题会由上来回答。 哎，好的，谢谢那个正辉，你的问题。啊，那第二个问题关于我们这个，净利润率和，未来的这个，收入的水平呢，是我觉得是这样，就是，自从我们这个上市完成以来，就是公司的管理层其实一直努力致力于，提升我们这个盈利能力，并且呢，努力去扩大营收的这个规模。那正如我们刚才一开始这个Brian有提到的，就是说这个季度呢，我们，公司的净利润率是进一步提升，达到了大概6.7%左右的水平，同比呢，是增长了大概18%。而且跟上一个季度，也就是，截止今年630的三个月来看呢，也是可以看到这个趋势上了，是在明显的改善的。那么本本季度这个净利润率的提升确实是我们，整体运营质量持续改善的一个直接结果。这个季度呢，我们在买量和营销上的投入呢，是变得更加高效了。这个R以这个ROI中心化的这个策略呢，也是，正在发挥作用。那即使在我们收入相对平稳的这个环境下，只要说，我们这个投放的结构更健康，这个效率更高，那我们的利润率呢，也是能够看到改善的。而除此以外呢，就是，正如刚才那个Carl在关于，DTC的问题当中有提到的，就是我们其实目前非常重视，提升这个DTC的占比。虽然目前主要的成绩呢，可能还是来自于我们旗舰产品在那个苹果的App Store的表现上，而且暂时呢，我理解这个DTC对于我们目前利润率的贡献还没有那么显著。但是呢，我们对接下来一直到明年630之前，这个全面提升DTC占比已经设置了非常明确的目标。那我们也相信在这个过程当中呢，DTC为改善利润率所带来的影响也会逐步的显现。那我们对下一个季度的收入指引呢，继续采取了一个比较平的预估。那我觉得大概有两方面的原因，一个呢，是，刚才其实有提到，就说全球的这个移动游戏行业，在11、12月份这个节日季当中普遍会出现流量成本比较高的这个情况。那所以我们其实战略上是不会为了短期去拉收入而去做这个不符合ROI的，冲量行为的。其次，刚刚Brian在前面讲话也有提到，就是我们在Pipeline当中实际上积累了比较多，目前处于各个阶段的新游戏。那未来我们这个收入端比较明显的增长趋势呢，我想主要是会伴随着这些新游戏逐步上市而显现出来的。 I will give the translation for myself. Since completing our public listing, the management has been consistently focused on improving profitability while gradually expanding our revenue base. As Brian mentioned earlier, our net margin continued to improve this quarter, reaching approximately 6.7%, which represents about 18% year-over-year growth.

Compared with the previous quarter, the three months ended June 30th, you can also see a clear and consistent upward trend. The margin improvement this quarter is indeed the direct result of our ongoing enhancement in overall operational quality. Our user acquisition and marketing expanding become more efficient, and our ROI-driven approach is working. Even in an environment where revenue remains relatively stable, healthier spending structure and higher efficiency naturally translate into better margins. In addition, as Carl just mentioned in response to the earlier question on DTC, increasing our DTC mix remains a strategic priority for us.

While most of the progress so far is still driven by our flagship title on the Apple App Store, and while DTC has not yet made a significant contribution to our company-wide profitability at this stage, we have already set clear internal objectives to steadily increase the DTC ratio from now until June 30th next year. We believe that during this process, the margin benefits brought by DTC will gradually become more visible. Regarding our revenue guidance for the next quarter, we continue to take a relatively flat view. There are two main reasons for this. First, during the global holiday season in November and December, the mobile gaming industry typically experiences higher traffic acquisition costs, and strategically, we will not pursue short-term revenue spikes at the expense of ROI discipline.

As Brian also mentioned earlier, our pipeline currently includes multiple new titles at different stages of development and testing. The more noticeable revenue growth trend will emerge progressively as these new games come to the market over the coming quarters. That will be my answer to your question, Zheng Hui. 谢谢正辉，这是我的，回答。 好，谢谢管理层。

Conference Operator: There are no additional questions at this time. I will now hand back to Shawn Zhang for any closing remarks.

Okay, thank you, operator, and thank you all for participating on today’s call, and thank you for your support. We appreciate your interest and look forward to reporting to you again next quarter on our progress.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.