Financial Performance - Revenue for 2024 reached $1,507,767 thousand, representing a 43.0% increase compared to $1,054,092 thousand in 2023[11] - Gross profit for 2024 was $316,347 thousand, up 45.6% from $217,291 thousand in 2023[11] - Net income for 2024 was $13,811 thousand, a decrease of 25.7% from $18,588 thousand in 2023[11] - Adjusted EBITDA for 2024 was $138,254 thousand, reflecting a 31.3% increase from $105,270 thousand in 2023[11] - Adjusted net profit for 2024 was $49,342 thousand, a significant increase of 158.1% compared to $19,120 thousand in 2023[11] Assets and Liabilities - Current assets as of December 31, 2024, totaled $504,206 thousand, an increase from $400,204 thousand in 2023[9] - Current liabilities increased to $581,326 thousand in 2024 from $356,563 thousand in 2023[9] - As of December 31, 2024, the total assets of the company amounted to $814.7 million, an increase from $691.6 million as of December 31, 2023, representing a growth of 17.8%[148] - The total liabilities increased to $592.3 million as of December 31, 2024, compared to $432.4 million as of December 31, 2023, resulting in a debt-to-asset ratio of 72.7%, up from 62.5%[148] - Cash and cash equivalents reached $167.8 million as of December 31, 2024, compared to $146.3 million as of December 31, 2023, reflecting a growth of 14.1%[150] Market Trends and Projections - The company anticipates that the market for industry-specific AI will exceed the traditional software market by more than ten times[12] - The integration of industry intelligence and data is expected to significantly enhance organizational efficiency and reduce operational costs[12] - The overall economic benefits from reduced operational costs are projected to outweigh the increased IT spending[12] - The total addressable market (TAM) for advertising and marketing is expected to exceed 20% of the entire advertising industry scale once AI capabilities reach autopilot[13] - The global advertising market is projected to exceed $650 billion in 2024, with a 6% year-over-year increase in social media app usage time[20] Revenue Streams and Growth - Mobvista achieved a record revenue growth of 43% year-over-year, increasing from $1.054 billion to $1.508 billion[13] - In-app purchases and subscription revenues are expected to grow by 13% year-over-year, reaching $150 billion globally in 2024[20] - The Ad-tech segment, centered around Mintegral, accounts for over 90% of the company's total net income, while the Mar-tech segment is still in the early stages of product development[35] - The company has expanded its market presence by covering approximately 130 countries and regions, with significant revenue contributions from the Asia-Pacific region (48%) and other regions (43%) in 2024[30] - The company aims to drive high-quality growth by leveraging accumulated data and optimizing marketing strategies through its marketing technology[34] Advertising Technology and Platforms - The Mintegral platform has become one of the leading third-party programmatic advertising trading platforms globally, contributing significantly to the company's revenue and profit[23] - The company has implemented a SaaS tool matrix strategy since 2019, integrating Ad-tech and Mar-tech capabilities to cover various stages of developer growth and optimize marketing solutions[34] - The company’s advertising alliance platform, established in 2013, continues to maintain a leading position in the industry, focusing on serving Chinese apps going global[31] - The company has helped over 10,000 global top advertisers and over 100,000 leading applications acquire quality users on a large scale in global markets[33] - The smart bidding product has contributed over 70% of Mintegral's total revenue since its launch, reflecting its growing importance in the company's revenue stream[69] Operational Efficiency and Cost Management - The gross margin is influenced by server costs and platform algorithm efficiency, with expectations to reduce server costs as scale increases and improve gross margins through enhanced data throughput[41] - The company’s total bank loans and overdrafts amounted to $85.0 million as of December 31, 2024, compared to $81.5 million as of December 31, 2023[150] - The accounts receivable turnover days improved to 44 days in 2024, down from 51 days in 2023[135][136] - The accounts payable turnover days remained stable at 86 days for both 2024 and 2023[137][138] - The company’s floating rate borrowings had an effective interest rate ranging from 3.4% to 7.9% during the reporting period[149] Research and Development - Research and development expenses rose by 61.5% to $152.3 million, driven by increased model training costs for smart bidding systems[127] - The R&D team consists of experts from top universities and companies, enhancing Mintegral's technical capabilities and industry standing, particularly in the light gaming sector[52] - The company aims to establish itself as a "Growth Hub" for developers, focusing on Ad-tech and Mar-tech ecosystems to assist small and medium-sized developers in achieving growth[74] - The marketing technology segment saw a year-on-year revenue growth of 12.3%, indicating ongoing development and optimization efforts[70] - The Mar-tech product system is being upgraded to enhance service capabilities, with 97% of traffic currently coming from overseas markets, indicating a strong global presence[77] Employee and Corporate Governance - As of December 31, 2024, the group has 711 full-time employees, a decrease from 739 employees as of December 31, 2023[158] - 57.7% of the full-time employees, or 410 individuals, are engaged in research and development activities[158] - The board of directors includes executive directors and independent non-executive directors, with Mr. Duan Wei as the chairman and Mr. Cao Xiaohuan as the CEO[200] - The company has not disclosed any significant risks or uncertainties faced during the reporting period[190] - No arrangements were made for directors to gain benefits through the purchase of company shares or bonds during the fiscal year ending December 31, 2024[199]

Group 1 - The company, 汇量科技 (01860), reported an annual revenue of $1.508 billion for the year ending December 31, 2024, representing a year-on-year growth of 43.0% [1] - Net income reached $399 million, showing a year-on-year increase of 40.4% [1] - Gross profit was $316 million, with a year-on-year growth of 45.6% [1] Group 2 - The core business, Mintegral, generated $1.443 billion in revenue for 2024, marking a 47.2% increase and accounting for approximately 95.7% of total revenue [1] - The intelligent bidding system based on machine learning and AI, launched in 2021, has significantly improved advertising budget efficiency for developers, contributing over 70% of Mintegral's total revenue in 2024 [1] - The gaming category maintained stable growth with revenue of $1.04 billion, up 37.0%, while non-gaming revenue surged to $403 million, reflecting an 82.0% increase and accounting for 27.9% of total revenue [1] Group 3 - Mintegral has assisted over 10,000 top developers and 100,000 leading applications globally in acquiring quality users, with daily ad requests exceeding 300 billion [2]

Financial Performance - Mobvista's total revenue for the year 2024 reached $1,507.77 million, representing a 43% increase from $1,054.09 million in 2023[3]. - Net income for 2024 was $398.88 million, up from $284.20 million in 2023, indicating a significant growth in profitability[3]. - Adjusted net profit for 2024 was $49.34 million, compared to $19.12 million in 2023, reflecting a strong operational performance[3]. - Mobvista's adjusted EBITDA for 2024 was $138.25 million, an increase from $105.27 million in 2023, showcasing improved operational efficiency[3]. - The company recorded advertising technology revenue of $1,490.3 million for FY2024, a year-over-year increase of 43.5% from $1,038.5 million in FY2023, accounting for 98.8% of total revenue[97]. - The gross profit for the period was $316.3 million, reflecting a 45.6% year-over-year increase, with a gross margin of 21.0%[116]. - Operating profit for the period was $37.9 million, up from $29.6 million in the same period last year[127]. - The company recorded a goodwill impairment loss of $14.5 million related to its HotCloud SaaS business due to slower-than-expected revenue growth[126]. - The company recorded a net current liability of $77,120,000 as of December 31, 2024, with unutilized bank financing of $64,323,000 due within one year[174]. Market Trends and Strategy - The company anticipates that the total addressable market (TAM) for advertising and marketing AI will exceed 20% of the entire advertising industry[7]. - The advertising market is showing signs of recovery, with major platforms like Google and Meta demonstrating strong year-on-year growth[10]. - The implementation of the EU's Digital Markets Act (DMA) aims to enhance competition and transparency in the advertising market, impacting major tech companies[11]. - The shift towards AI in the advertising sector is expected to significantly enhance service capabilities and market scale, positioning Mobvista for future growth[6]. - The trend of hybrid monetization is becoming mainstream among top mobile game developers, requiring advanced advertising algorithms to optimize revenue streams[14]. - The strategic layout of Mintegral includes a comprehensive coverage of the advertising industry chain, enhancing client relationships and improving algorithm capabilities[18]. - The company has implemented a global strategy, enhancing its brand image in the Asia-Pacific region and localizing strategies in EMEA and the Americas to expand market share[74]. Client and Market Reach - Mobvista's focus on small and medium developers has resulted in a notable market impact, contributing to the record revenue growth[7]. - As of July 26, 2024, there are over 4.33 million applications available on iOS and Google Play, indicating a significant increase in supply and heightened competition in the mobile app market[13]. - The company has expanded its reach to over 3.5 billion active devices globally, covering approximately 130 countries and regions[22]. - Mintegral's client base spans approximately 130 countries, with 97% of devices reached being from overseas markets[34]. - The company has established a leading position in the industry with its advertising alliance platform, focusing on helping Chinese apps expand overseas since its inception in 2013[23]. Technological Advancements - The integration of AI and machine learning into advertising strategies has improved ad targeting and ROI optimization, with automated purchasing and real-time bidding capabilities[76]. - The introduction of large model technology in the cloud-native platform MaxCloud has streamlined DevOps processes, enhancing product delivery efficiency[78]. - The Heat Engine has undergone a comprehensive upgrade, focusing on mobile advertising performance monitoring and data analysis, optimizing customer marketing activities[57]. - The company has a top-tier R&D team with members from prestigious universities and experience in leading tech companies, enhancing its technical capabilities and industry position[43]. Revenue Breakdown - In 2024, the revenue contribution from gaming clients on the Mintegral platform is 72%, while non-gaming clients account for 28%[22]. - Game category revenue reached $1,039.8 million, up 37.0% year-on-year, contributing 72.1% of total revenue[68]. - Non-game category revenue surged to $403.3 million, reflecting an 82.0% year-on-year growth[68]. - The marketing technology segment saw a 12.3% year-on-year revenue growth, reflecting ongoing product development efforts[64]. - Non-programmatic advertising revenue decreased by 18.8% to $47.2 million from $58.1 million, primarily due to advertisers shifting budgets to more certain programmatic options[103]. Operational Efficiency - Continuous growth in customer retention and net expansion rates has led to sustainable revenue growth, with an increase in the number of new clients and advertising budgets[47]. - The company aims to continuously reduce server costs as a percentage of revenue through optimization and scaling[33]. - The platform's scale effect and algorithm efficiency are driving growth in gross profit margins[48]. - The company has emphasized the importance of long-term investment and customer trust in navigating the complexities of the regulatory environment[7]. Financial Position and Investments - The total assets increased to $814.7 million from $691.6 million in 2023, while total liabilities rose to $592.3 million from $432.4 million, resulting in a debt-to-asset ratio of 72.7%[144]. - The company has completed approximately 66% of the acquisition of HotCloud, with a total settlement payment of $44.5 million made to the remaining sellers[148]. - The company has no significant investments or specific plans for major investments as of December 31, 2024[151]. - The company repurchased a total of 16,703,000 shares at a total cost of approximately $48.69 million HKD during the reporting period[156]. Regulatory and Compliance - The company is currently assessing regulatory risks related to the PADFAA legislation and its implications for data flow and business operations[163]. - The company emphasizes data and privacy protection, achieving several industry-standard privacy certifications including SOC2 Type1, Type2, SOC3, and ISO27001[75]. - The company has complied with the corporate governance code and adopted best practices, including quarterly financial performance announcements[158].

Core Viewpoint - The company, HuiLiang Technology (01860), is in discussions regarding the potential sale of its Mintegral business and marketing technology services, but no binding agreements have been made yet [1] Group 1 - The company has informed shareholders and potential investors about media reports concerning the potential sale of the Mintegral business [1] - The stock price of the company experienced a significant decline, dropping by 41% at one point [1] - Mintegral is described as a carrier for the company's AI+ advertising integration [1]

Group 1 - The top-performing stock in the Hong Kong Stock Connect is Huilyang Technology, with a gain of 14.27% [1] - Following Huilyang Technology, the stocks of Zai Ding Pharmaceutical and Kedi-B increased by 8.77% and 7.86% respectively [1] - Other notable gainers include Alibaba Health and Kuaishou-W, which rose by 7.73% and 6.42% respectively [1] Group 2 - Additional companies with significant gains include Gushengtang and MGM China, with increases of 6.52% and 6.28% respectively [1] - Bilibili-W also saw a rise of 6.14% [1] - A number of companies, including AIA Group and Weimeng Group, experienced gains of 5.42% and 5.13% respectively [1] Group 3 - Companies such as Yihai International, New Macau Development, and Laopu Gold saw gains exceeding 4% [1] - Other firms, including China Biopharmaceutical, Aubo Holdings, and Youran Livestock, had increases over 3% [1]

不过，最新消息显示，美国候任总统特朗普正在考虑在上任后发布一项行政命令，拟暂停执行TikTok销 售或禁止法案60至90天，并且希望能在这场"TikTok保卫战"中取得胜利。 据相关报道，截至1月13日，小红书成功登顶苹果应用商店下载榜，而TikTok旗下的照片共享应用 Lemon8以及OpenAI的ChatGPT则紧随其后。 小红书此次爆火与海外版抖音"TikTok"在美国面临的禁令危机密切相关。当下，众多TikTok创作者正急 于寻觅能够继续发布视频的替代方案，同时密切关注着TikTok禁令是否会如期生效。此前，美国政府以 所谓的"国家安全"为由，要求TikTok母公司字节跳动在1月19日之前剥离TikTok，否则将对其实施禁 令。 财联社1月16日讯(编辑 胡家荣) 受益小红书这一热点持续火热，港股SaaS概念股持续走强。 截至发稿，汇量科技(01860.HK)、兑吧(01753.HK)、有赞(08083.HK)分别上涨3.68%、2.54%、1.83%。 小红书热点提振港股SaaS概念股 值得注意的是，小红书爆火所带来的热度在一定程度上提振港股SaaS概念股的表现。比如今日盘中一度 涨超6%的汇量科技 ...

Investment Rating - The report maintains a "Buy" rating for Mobvista (1860 HK) with a 6-month target price of HKD 12 8 [1][4] Core Views - Mobvista's Q3 2024 revenue reached $416 million, a 54 6% YoY increase, with adjusted net profit of $11 million, up 162 4% YoY [1] - The company's programmatic advertising platform, Mintegral, contributed $402 million in revenue, a 57 6% YoY increase, driven by its smart bidding capabilities and expansion into new verticals [2] - Mintegral's game category revenue grew 46 5% YoY to $295 million, accounting for 73 2% of its total revenue, while non-game categories surged 98 5% YoY to $108 million, with e-commerce being a key driver [2] - The company's gross margin improved by 0 5pp YoY to 21 1%, supported by a 0 9pp increase in ad tech gross margin to 20 6% [2] - Mobvista has achieved consecutive quarters of profitability since Q4 2022, demonstrating strong scale effects [2] Financial and Valuation Summary - Revenue is expected to grow from $894 4 million in 2024E to $2,084 9 million in 2026E, with a CAGR of 23 9% [3] - Adjusted net profit is projected to increase from $9 7 million in 2024E to $82 9 million in 2026E, with a CAGR of 71 4% [3] - EPS is forecasted to rise from $0 02 in 2024E to $0 05 in 2026E [3] - The company's P/E ratio is expected to decline from 49 3x in 2024E to 22 2x in 2026E, reflecting strong earnings growth [3] Business Performance and Strategy - Mintegral's smart bidding system has gained market validation, with ROAS (Return on Ad Spend) becoming a mainstream choice for developers [2] - The platform has expanded into mid-to-hardcore games and non-game verticals such as e-commerce and social, driving diversification [2] - Non-programmatic ad revenue declined slightly by 0 5% YoY to $9 94 million, while marketing tech revenue grew 1% YoY to $4 million, supported by overseas expansion and cost optimization [2] Financial Metrics - Gross margin for ad tech improved to 20 6%, while marketing tech gross margin declined by 13 5pp to 68 9% [2] - Sales expenses increased by 32 7% YoY due to rising bidding costs, and R&D expenses surged 59 7% YoY due to investments in the smart bidding system [2] - The company's ROE is expected to rise from 7 6% in 2024E to 13 0% in 2026E, reflecting improved profitability [10]

Investment Rating - The report does not provide a specific investment rating for Mobvista (1860 HK) [2] Core Business - Mobvista is a global leader in mobile advertising and marketing technology, primarily serving mobile app developers and helping Chinese developers expand overseas [2] - The company focuses on programmatic advertising and data-driven marketing, with its core business relying on the Mintegral platform [2] - Key business segments include: (i) programmatic advertising solutions, (ii) data analytics and operations services, (iii) SaaS tool matrix development and sales, and (iv) multi-scenario traffic monetization services [2] - Advertising technology accounts for 98 6% of revenue, with programmatic advertising being the major contributor, while marketing technology currently represents 1 4% of revenue but is in a rapid expansion phase [2] Market Outlook - The global mobile advertising and marketing technology market is expected to exceed $500 billion by 2025, with programmatic advertising growing at a 16 2% CAGR [2] - Mid-tail and long-tail traffic are becoming increasingly important due to privacy protection and antitrust policies, presenting significant growth opportunities [2] Competitive Landscape - The global ad tech platform market is dominated by Google AdMob and Meta Audience Network in the head traffic segment, while mid-tail and long-tail traffic are controlled by programmatic advertising platforms including AppLovin, Unity Ads, and Mintegral [2] - Mobvista has strengthened its competitiveness in ROI improvement for advertisers, global traffic coverage, and data analytics efficiency through continuous algorithm optimization and service enhancement [2] Future Prospects - The company plans to focus on advertising services for mid-core games, utility apps, and e-commerce sectors, which are experiencing rapid growth [2] - The mid-core game sector, in particular, is expected to reach a market potential of hundreds of billions of dollars by 2025 due to the popularity of hybrid monetization models [2] - Mintegral platform currently handles trillions of ad requests annually, with revenue and profit steadily increasing alongside global business expansion [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has experienced rapid revenue and profit growth in Q3 2024, driven by technological innovation and customer acquisition, leading to a maintained "Buy" rating [2] - The revenue for the first three quarters of 2024 reached $1.055 billion, a year-on-year increase of 36.0%, with adjusted net profit of $19.164 million, up 37.4% year-on-year [2] - In Q3 2024, the company achieved revenue of $416 million, a year-on-year increase of 54.6% and a quarter-on-quarter increase of 23.6%, with adjusted net profit of $10.668 million, up 162.4% year-on-year [2] Revenue and Profitability Summary - The programmatic advertising platform Mintegral saw accelerated revenue growth, achieving $403 million in Q3 2024, a year-on-year increase of 57.6% and a quarter-on-quarter increase of 25.7% [3] - The gaming category generated $295 million in revenue in Q3 2024, a year-on-year increase of 46.5%, while non-gaming categories reached $108 million, up 98.5% year-on-year [3] - The gross margin for Q3 2024 was 21.1%, an increase of 0.5 percentage points year-on-year, and the net profit margin was 2.4%, up 1 percentage point year-on-year [3] Future Growth Drivers - The company is leveraging AI to enhance the Mintegral platform, with the D7 Target ROAS feature launched in October 2024 to improve marketing ROI for clients [4] - The ongoing iteration of ROAS technology is expected to drive long-term growth by accumulating rich marketing data [4] - The company has expanded its client base in non-gaming categories, indicating the effectiveness of its multi-vertical strategy [3][4] Financial Projections - The company forecasts net profits of $40 million, $72 million, and $88 million for 2024, 2025, and 2026 respectively, with corresponding EPS of $0.03, $0.05, and $0.06 [2][5] - The current price-to-earnings (P/E) ratios are projected at 25.2, 14.0, and 11.4 for 2024, 2025, and 2026 respectively [2][5]

Revenue Performance - Revenue for Q3 2024 reached $416.457 million, a year-on-year increase of 54.6% and a quarter-on-quarter increase of 23.6%[1] - Mintegral, the programmatic advertising platform, recorded revenue of $402.5 million in Q3 2024, a year-on-year increase of 57.6% and a quarter-on-quarter increase of 25.7%[4] - Mintegral platform revenue in Q3 2024 reached $402.5 million, a 57.6% YoY increase[9] - Revenue for the three months ended September 30, 2024, was $416.457 million, a 54.6% increase compared to $269.370 million in the same period in 2023[26] - Revenue for the nine months ended September 30, 2024, was $1.054744 billion, a 36.0% increase compared to $775.503 million in the same period in 2023[26] Profitability Metrics - Net income for Q3 2024 was $109.386 million, up 49.2% year-on-year and 29.6% quarter-on-quarter[1] - Gross profit for Q3 2024 stood at $87.845 million, a year-on-year increase of 58.3% and a quarter-on-quarter increase of 26.6%[1] - Net profit for Q3 2024 was $8.843 million, a significant year-on-year increase of 171.2% and a quarter-on-quarter increase of 4,732.2%[1] - Adjusted EBITDA for Q3 2024 was $34.269 million, a year-on-year increase of 45.3% and a quarter-on-quarter increase of 6.5%[1] - Gross profit rose 58.3% YoY to $87.8 million in Q3 2024, with advertising technology business gross margin improving to 20.6%[14][15] - Net profit in Q3 2024 was $8.8 million, a 171.2% YoY increase[20] - Adjusted EBITDA grew 45.3% YoY to $34.3 million in Q3 2024[20][21] - Gross profit for the three months ended September 30, 2024, was $87.845 million, representing a 58.3% increase from $55.502 million in the same period in 2023[26] - Operating profit for the three months ended September 30, 2024, was $12.125 million, a 132.2% increase compared to $5.221 million in the same period in 2023[26] - Adjusted EBITDA for the three months ended September 30, 2024, was $34.269 million, a 45.3% increase from $23.577 million in the same period in 2023[23] - Net profit for the three months ended September 30, 2024, was $8.843 million, a 171.2% increase compared to $3.261 million in the same period in 2023[26] - Adjusted net profit for the three months ended September 30, 2024, was $10.668 million, a 162.4% increase from $4.065 million in the same period in 2023[23] - Gross profit for the nine months ended September 30, 2024, was $219.046 million, representing a 38.2% increase from $158.462 million in the same period in 2023[26] - Operating profit for the nine months ended September 30, 2024, was $25.368 million, a 41.8% increase compared to $17.892 million in the same period in 2023[26] - Net profit for the nine months ended September 30, 2024, was $16.180 million, a 37.3% increase compared to $11.783 million in the same period in 2023[26] Mintegral Platform Performance - Mintegral's gaming category revenue reached $294.5 million in Q3 2024, up 46.5% year-on-year and 26.2% quarter-on-quarter[4] - Mintegral's non-gaming category revenue was $108.0 million in Q3 2024, a year-on-year increase of 98.5% and a quarter-on-quarter increase of 24.6%[4] - Gaming category accounted for 73.2% of Mintegral's total revenue in Q3 2024, generating $294.5 million, a 46.5% YoY growth[10][11] - Non-gaming category revenue grew 98.5% YoY to $108.0 million, representing 26.8% of Mintegral's total revenue in Q3 2024[10][11] Expenses and Costs - Cost of sales increased 53.7% YoY to $328.6 million in Q3 2024, primarily driven by advertising technology business costs[12][13] - Sales and marketing expenses increased 32.7% YoY to $16.7 million in Q3 2024, mainly due to higher bidding fees[16] - R&D expenses surged 59.7% YoY to $45.9 million in Q3 2024, driven by increased model training costs for the intelligent bidding system[17] Financial Position - Total assets decreased to $239.2 million as of September 30, 2024, compared to $334.988 million as of December 31, 2023[28] - Current assets decreased to $398.271 million as of September 30, 2024, from $400.204 million as of December 31, 2023[28] - Current liabilities increased to $484.952 million as of September 30, 2024, from $356.563 million as of December 31, 2023[28] - Net current liabilities stood at $86.681 million as of September 30, 2024, compared to net current assets of $43.641 million as of December 31, 2023[28] - Non-current assets increased to $325.881 million as of September 30, 2024, from $291.347 million as of December 31, 2023[28] - Non-current liabilities decreased to $15.076 million as of September 30, 2024, from $75.878 million as of December 31, 2023[29] - Equity attributable to shareholders decreased to $218.103 million as of September 30, 2024, from $250.092 million as of December 31, 2023[29] - Total equity decreased to $224.124 million as of September 30, 2024, from $259.11 million as of December 31, 2023[29] - Cash and cash equivalents decreased to $104.278 million as of September 30, 2024, from $146.348 million as of December 31, 2023[28] - Trade and other receivables increased to $226.176 million as of September 30, 2024, from $164.294 million as of December 31, 2023[28] Other Revenue Streams - Non-programmatic advertising revenue in Q3 2024 was $9.9 million, a year-on-year decrease of 0.5% and a quarter-on-quarter decrease of 18.7%[4] - Marketing technology revenue in Q3 2024 was $4.0 million, a year-on-year increase of 1.0% and a quarter-on-quarter decrease of 10.7%[4]