Maintain the "reduction" rating of everyone's stock

The following is a summary of the contents of the report:

Everyone's first quarter revenue of 25 million U.S. dollars, the chain fell 19%, down 47% Year-on-year, with the company's guidance expected, less than Wall Street expected. Because of fierce competition in the market, as well as the encroachment of mobile business, advertising revenue fell 24%, down 20% year-on-year. Game revenue fell 19%, down 53% year-on-year, mainly because the old game has entered a mature stage, and the new game release has been postponed.

The number of active users for the month 51 million, the chain growth of 13%, the year-on-year decline of 11%. The cumulative number of active users is 210 million, the chain growth of 2%, the year-on-year increase of 14%. The increase in the number of users mainly benefited from the realignment of strategic focus to college students and the younger generation.

Operating losses narrowed: the first quarter operating losses of 29 million U.S. dollars, and the fourth quarter last year operating losses of 43 million U.S. dollars, but still higher than the previous year's operating loss of 27 million U.S. dollars. The net loss from continuing operations was $25 million trillion, compared with a net loss of $28 million in the fourth quarter last year, with a net loss of $3 million a year earlier. Based on the United States General accounting standards, diluted earnings per share of 0.09 U.S. dollars, the chain fell 67%, and a year earlier a share of the loss of 0.01 U.S. dollars, mainly due to deal with the glutinous rice net equity income.

Mobile business continues to grow: mobile advertising contributes 11% of overall brand advertising revenue, compared to 8% in the fourth quarter last year. Everyone management said that advertisers have shown a strong interest in the company's mobile advertising solutions, the second half of the expected revenue contribution is more obvious.

Second-quarter results are expected to be depressed: everyone expects the second-quarter revenue will reach 21 million U.S. dollars to 23 million U.S. dollars, the chain fell 8% to 16%, down 54% to 58%, lower than Wall Street expected 30 million dollars. Everyone expects advertising revenues to reach $10 million trillion, game revenues will reach $9 million trillion, and Internet value-added services will reach $4 million trillion.

Valuation: We continue to maintain a "reduction" rating for all stocks.