 Hello, everyone. It's great to meet you guys here. I want to introduce myself. My name is Andy Zhong. I'm the CEO and founder of FunPlus, a global gaming company, and also a new entertainment startup called Next Entertainment. Before I start, I want to ask a question. If you guys are the first time to attend Slush, please raise your hand. Great. All Slush colleagues asked me, what is my first impression in Slush Tokyo? My answer is young and disruptive. That's the same feeling I got from a young startup as well. That's Slush Japan. So every startup started with really a little secret story of founders. So I started the company seven years ago. Before that, I spent a few years in Silicon Valley making games. The reason to start the company is really, it's a typical story. We don't get satisfied from the work. We always talk how to do the gains by the people who don't understand gains. Then me and my partner just say, how about we create a gaming company by ourself? At least we can create gains by ourself. That's how we started the company. We started the company to create gains globally, majorly focused on US and Europe market. So I think that's might be a really interesting story for some of you to share, because I original from China, I spent a few years in Silicon Valley making startups. So when I was thinking about doing a startup, I didn't start from Chinese market. Because I don't know Chinese market enough, honestly. And also when we start a company, we kind of feel global company is cool. We want people all over the world to play the game we are making. So that's the idea when we started. So we started this little startup by doing the first title called Family Farm. It's a family simulation title. In 2010, we started this game in Facebook initially. The game has gone really good success initially. It went to top 10 in Facebook in 2011 and 2012. We got around 20 million users in first 12 months without too much marketing. So I think we're really lucky as a startup. And we constantly spend a lot of time to build a community. The community is really strong. So we have 50 million fans for this game in Facebook. So in 2014, we sold one of our company to a Chinese listed company. That's my first exit for my startup life. I want to share a little bit about this experience. So I think in 2014, we released the first game in 2011. And then we made another two or three games between 2011 and 2014. We never make the second game more successful than our first game. The games we're making are really, really successful, but not as successful as the first title. So we suffer a little bit as a game designer and also as a founder. We always want to make another game which is more successful than the first game. Until in 2014, we saw the company Supercell coming out. We played against Hay Day. I still remember Hay Day and the Clash of Clans. All our founders, we are doing games in Silicon Valley for many years. So we just started to say, wow, where this company from? Why the game is so good? Especially Hay Day is in the simulation category, which is the category we built the first game in 2010. So we started to learn about the company. We started to dig a little bit more into how they struck the company, how they do games. Then we got into a conclusion, says, OK, this company is really great. We need to learn from them. We need to focus much more in mobile. We need to focus a lot of resources in mobile. We need to build really small teams and really, really talented teams to make games. So I think that 2014, when we are forming the strategy to really, really invest in small teams, in innovation, a bunch of investors introduced this company in China. They come in to talk to us. They say, how about I invest you guys and just give you more financial support to be more innovative and go global, more aggressively. So eventually, we accepted the offer to sell part of the company. The main reason is because we feel we need more money. And at that time, we feel unsafe. We kind of feel that the company is so good, better than we are. We feel unsafe. So we did a transaction. We want to make a better games. Really, luckily, after the sale of the company, we started making more studios, more games, and also invest other studios. Because we're really eager to learn how do you be more innovative? How do you make great games, great products? So I think that's another game from us half a year ago. We worked on this game for the last three years. We started this game in 2013. We never shipped this game until last year. We always feel, wow, that's not enough. So this game got a really good success. We ranked number one in US for one week. Right now, it's averagely 25, top 25 globally by revenue. So for this story, what I want to really share is, never give up what you believe. But also, you need to learn and adapt fast if something is changing. And if other people, other companies are doing better, you need to change fast. So we insist on doing games by really small studios. We waited for many years. This title passed the first title made in 2010. It's six years. We waited for six years until we made another hit, which is bigger than the first one. So during from 2014, when we sell one of our subsidiaries, we tried to be innovative. One of the innovations is we just tried to thinking about what is really important, right? The answer is talents. How you organize your structure, how you recruit the talents are most important. Then we ask ourselves, if we want to recruit a key employee, if someone joined FunPlus, how we can convince them? How we tell the story, say, come on, guys, join us. So I think the answer we get is, let's make the company a small. Every company is independent, has a unique mission. This mission is really, really easy to tell people, and this is what we do. If you want to join us, join us for this mission. So that's what we learned. We start to break the company into different independent business. And also we start to invest the company as well. So on the left, that's the company we founded, Next Entertainment, the label is like an HBO model for premium games. Those are the company on the right, on the left, are the company we invested. Inco, I want to introduce a little bit. Cloud9, which is number one in sports company US, there's a few other companies as well. Every company we invest, they have a mission which is really, really impressive. The mission is almost making me feel I want to join this company. So that's why I invest. So I'm going to introduce a little bit about Inco. We call it Inki in English. Inki, the company is founded in 2015, around two years ago. It's growing really, really rapidly. I want to show a chart, maybe this one at first. This is the data for MAU for Inki. So you guys can look at the orange line. From 2015, October, and you can see the MAU is rapidly growing, and it's passed YY in 2016 May, roughly at 25 million MAU. So I think it grows really, really fast. What's the reason for growth? For growth, right? Because live streaming is nothing new. It has a long history in China, has long history in Japan, long history in the US. Inki, the secret for Inki is innovation and the founders. That's the conclusion I get after spending roughly one and a half year with them. Initially, I don't know. I kind of feel, wow, why this company grow, right? It's because of the beautify features. It's because of the mobile experience, because they have more beautiful streamers. The answer I get after one and a half year is no. It's because the founder and the innovation the company has. So I can share a little bit about the revenue. It's really amazing, the company. In 2016, April, it's number seven globally, number six just by iOS. So really amazing numbers. If you guys look at the chart on the top, it's mostly like Netflix, HBO, and all those apps from US. So what is next entertainment? After spending more time with Inki, I really impressed by the founder and the team and also the innovation ability. Just the way I actually supercell came out, I really amazed just by how good the product it is. So we brought out a suggestion, say how about we create a company to bring Inki overseas on China. Six months ago, we founded this company. We started brainstorming how we can bring live streaming innovation outside of China. As I start to always mention, innovation is important. What is the innovation in Inki? Why innovation matters, right? I think two years ago, Inki bought a really unique idea about a mobile streaming platform without agency. Because in the old days, all the live streaming channels are dominated by agencies. You always see the same kind of different kind of big agency content. And they kind of manipulate the content. Even some of the algorithms, some of the rankings are manipulated. So I think when mobile age coming, people want to understand more. If I'm a streamer, I want to understand why I can make money while ranking in top 10, while ranking top 20, but not top five. How I can make it myself the top five. So I think that's back two years ago, the innovation is really, really strong. It gives streamer with a mobile phone a great opportunity. They want to try. They're going to feel, wow, that's cool. Of course, they also have a really good user experience, beautify features, blah, blah, blah, two years ago. But six months ago, everyone in China want to copy Inki. So there's a more than 100 live streaming platform coming out. Inki's DAU kind of fled for quite a while for a few months. But for ourself, we know from inside, we are innovating. We know the innovation in the past don't support the growth for many years. You always need to keep innovation, because people copy you and you need to innovate them all. So one month ago, we released live streaming feature for games, which is streamer can use two phones. One is for the streamer, one is for the mobile game. One screen will automatically overlap on another one. You can switch between this one and another one. So we see a really, really amazing growth this month, really, really amazing. Because before, mobile live streaming for games, it's just one phone. You can't do too much. Either you just focus on the streamer, or either you just focus on the game screen. So I think they use a really, really innovative approach. So that's the one example I want to mention is founders and the company's DNA matters not just the numbers. So we all know content, entertainment are global. We all want to distribute content globally. We want to distribute content in China, Southeast Asia, US. But from my experience, innovation are the key for distribution. Because if you are unique, when you get into any market, you have a advantage. So innovation, including technology, including content itself, including how you run the community, including how you market yourself. That's not innovation in different perspective. But innovation plays a big role in global distribution. And also I keep saying the most important thing is the team. What is the great team? Just like I mentioned was my first impression about slush, Japan, young and disruptive. The team needed young and disruptive. It doesn't mean they need to be young in age, but their ideas, their philosophy, and also their understanding of the new things need to be really young. And they need to think really disruptively. They need to do things really disruptively. I think that's really important. Then why those people will join your team? Why not other people? Why not other team? So I think, as I mentioned in the past, we learned that a strong vision and a really clear mission are equally important. So you need a company has really, really visionary founders. But also you need to have a plan really, really clear. What do you will do here? Why are you coming here? What do you achieve? So the mission needs to be clear. So if you have these two teams, I think you will have a great team. So we didn't have the best team at the beginning. We never have the best team. But in my experience of doing startup, I always try to learn more, especially the recent three years, since 2014. I always ask myself a question, do we have a really, really good vision for this business? Do we have a really clear mission for the people who join us? So if we can answer these two questions clearly, I think it will be really good. So another thing is about the evaluation of the evaluated innovation. We learn a lot in the process of making gains. It's making gains is never easy. It takes us six years to pass the record of the first game. And during this process, we made it more than 10 gains. And how to evaluate the gains? It's not like say, OK, this game is good. This is not good. This game looks beautiful. I love this game. No. I think I need to have a great way to evaluate the innovation. Sometimes it doesn't look beautiful. It doesn't look amazing at the beginning. But you need to have a way to understand it and why people create this, why they are like this, not like that. So I have a picture which is from an old Disney animation. So I think also about define the right matrix. It's really important. Fund and engagement are really important, not just statistics, not just about first day retention, 30 days retention. Those numbers are usually just for reporting. You need to really feel fun. You need to feel engaging. And also find your core audience. It's really important. I always hear people say, what is your addressable market? She says, everyone, not good. Because if everyone is your addressable market, no one will be your addressable market. So you need to find your core audience. And also you need to take care of your core audience. This metaphor says, that's a metaphor we used for operation gains. Say if you run a coffee shop, your coffee shop has 1,000 customers. Then how we can expand to 10,000 customers? One way is let's take care of this 1,000 core users and make them feel really, really happy, so excited. Then they will tell their friends. Another way is, OK, let's put some water into the coffee and split it to 10,000 people. Let's sell to 10,000 people. Let's try to promote to 10,000 people. That's two ways, but the result will be really different. We usually take the first route, take care of those 1,000 people really, really seriously, and make them self to speak for your product. And let them to promote your product. So execution, iteration, I want to spend too much time. I think my session, the time is limited. I want to give the time to the next wonderful speakers. Thanks a lot for the attending and the really great media guys. Thanks.