Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Here's Earnings Conference Call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note that today's event is being recorded. I would now like to turn the conference over to Ms. Tina Tang, the Company's Manager of Investor Relations. Please go ahead, ma'am. Thank you. Hello, everyone, and welcome to HERE's earnings call for the fourth quarter and the full fiscal year 2026. With us today are Mr. Peng Li, our founder, chairman, and CEO, and Mr. Ting Xie, our CFO. Mr. Lee will provide a business overview for the quarter, then Tim will discuss the financials in more detail. Following their prepared remarks, Mr. Li and Tim will be available for the Q&A session. I will translate for Mr.Li. You can refer to our quality financial results on our IR website at ir.heargood.com. You can also access a replay of this call on our IA website when it becomes available a few hours after its conclusion. Before we continue, I would like to refer you to our Safe Harbor Statement in our earnings press release, which also applies to this call. As we will be making forward-looking statements, please note that all numbers stated in following management prepared remarks are in RMB terms and we will discuss non-GAAP measures today which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filing with the SEC. I will now turn the call over to the CEO and founder of here. Mr. Li. Yeah, okay. Good morning, everyone, and thank you for joining us today. We closed out our fiscal year 2026 with false quarter revenues of RMB 127.7 million, representing a robust year over year increase of 94.1% and bring out our full year revenue to RMB 596.8 million. Fiscal year 2026 marks our first full fiscal year dedicated to the pop toy business. Most importantly, this year has provided us with complete clarity about our corporation identity, our long-term strategic positioning, and the path we must take to build lasting shareholder value. Before diving into our operational updates, I want to share the core strategic insights that are reshaping here. We firmly believe that enduring high premium IP company must anchor itself on distinctive products and constant creativity, not third-party distribution channels alone. Distribution expands market reach, but it cannot answer the fundamental question of user loyalty. Why will customers remember you and consistently choose your brand? Historically, our product pipeline and release cadence were tightly coupled with wholesale channel demand to protect our brand from external volatility, we are shifting our business model into a strategic closed loop. This model integrates proprietary IPs, adaptive product design, and direct-to-customer channels. This closed loop grants us autonomy over our go-to-market cadence, product presentation, and the customer experience. Our self-operated D2C channels serve as the premier theater to showcase these high-value portfolio extensions. An industry-leading IP house cannot merely train out what the mass market passively accepts today. This is why our D2C retail network is far more than a point of sale. It is an IP incubator and a hub to test new ideas. As a result, our capital allocation and operational priorities are focused on perfecting this D2C closed loop and optimizing our structural unit economics rather than maximizing short-term volume at the expense of brand health. This philosophy brings us to our core thesis on brand momentum. True brand momentum does not stem from chasing fleeting market trends or mindlessly copying customer performance. Real long-term brand momentum is forged through design conviction and artistic leadership. Furthermore, the long-time asset value of an IP is intrinsically linked into its perceived scarcity. Once market supply outpaces consumer interest, that scarcity dissolves and triggers structural evaluation of the IP. While we remain pragmatic about macro conditions, we maintain absolute control over our own operational cadence. We have made a deliberate strategic choice to prioritize long-term IP assets value over short-term wholesale sales volume. This choice is heavily driven by who we are. Within the global proprietary landscape, two independent pure-play IP companies are exceedingly rare. Hero Group stands as one of the very few enterprises that rigorously adheres to the path of proprietary IP incubation and self-operated execution. Over the past fiscal year, we have proven the scalability of this model. Navigating the current headwinds requires resilience, disciplined efforts, and the refusal to compromise our core strategy for short-term convenience. we will strictly adhere to the IP-first principle. Our mission is not to generate fleeting retail transactions, but to deliver long-term emotional companionship and lasting narrative value to our users. To fully realize this vision, we focused our execution across four strategic pillar during the fourth quarter. First, IP portfolio diversification and ecosystem monetization. We continue to curate our IP metrics across the entire asset life circle, boosting product innovation and brand collaborations. Our ecosystem is structurally engineered to mitigate a single IP dependency. As of June 30, 2026, our total portfolio expanded to 22 IPs, compromising 13 IPs. proprietary IPs and nine exclusively licensed IPs. Our flagship IP, Bakuku, generated RMB 47.7 million in the fourth quarter and RMB 369.3 million for the full year. This accounted for 61.9% of our annual revenue. Meanwhile, our next-generation powerhouse, Synono, has delivered a phenomenal trajectory. Launched only in the second half of 2025, Sentinel generated RMB 27.3 million in Q4 fiscal year 26 long, rapidly growing to represent 21.4% of our total quarterly revenue. For its first full fiscal year, Senono generated RMB 92.7 million, contributing 15.5% to our annual top-line. The meteoric rise of Sentinel from zero to a near RMB 100 million annualized scale in under 12 months confirms that we can systematically build and scale new proprietary APIs. We have also built out a diversified long-tail flywheel revenue from our others IP category, which includes emerging proprietary stars like Xiao, Mamimo, Funini, Fila, ImprovoPix, more, surged by an extraordinary 661% year-over-year to RMB 39.8 million in the fourth quarter. This is up from just RMB 5.2 million in that same period last year. And with the solid contribution of RMB 12.8 billion in the first quarter, this portfolio of IPs now collectively amounts from over 41% of our quarterly revenue. On the product expansion and lifestyle integration front, we recently accelerated several high-impact initiatives. Recently we aggressively expanded our IPs into premium daily consumer scenarios. Zenono launched a limited-edition co-brand sparkling water with Dinky Forest and partnered with the French fashion house, Hero Paris, on an exclusive plush pendant collection. Meanwhile, we evaluated our cultural positioning while an exclusive partnership with the Museum of Fine Arts Boston, co-developing five premium artistic works across three core IPs. Furthermore, we have formalized our partnership with 2026 China Open, establishing Senono as the headline IP for this year's tourism. New IP pipelines were another part of our strategy. We officially introduced Yuna, a noble IP, alongside with seasonal collection for Impala Pigs and Falafelili. Notably, Falafellili captured strong youth engagements during the Qixi Festival, their collaboration with Kiss Bomb, and and served as an official event planner for the prestigious 38th Husband Flowers Awards. Finally, in Hong Kong, our landmark cruise project at the Central Pier is undergoing final decoration. We have transformed the ship into a multi-layered vertical experiential space on Victoria Harbor. Ticket sales officially launched on sea trip on September 21 ahead of the maiden voyage on October 1 this will allow us to capture the peak tourist flows of the upcoming National Day Second, discipline D2C network expansion and scenario optimization. Our offline direct-to-customer footprint remains the primary avenue for depending user intimacy and validating product-market fit. At this stage, our network strategy prioritizes high ROI unit economics and qualitative location premium over share store count. We continue to manage our permanent food points with strict capital discipline to optimize our asset portfolio. As of today, we operated seven D2C stores across four core metropolitan areas. During the quarter, we successfully inaugurated our new store at Beijing Daxing International Airport. This marks our strategic entry into high-traffic premium transit hub retail scenarios. We leverage agile pop-up storefronts as a dual-purpose specific vehicle. Beyond the de-risking a permanent site selection, these pop-ups function as IP centers for IP and immersive user integration interaction prime example is our successful activations in September at Prisma Xinjia Center in Shanghai and Hangzhou tower in addition our automated retail network is expanded to 25 robot shops across six cities having completed our initial structural layout. We shifted our operational mandate from aggressive deployment to maximizing same mission machine efficiency and data extraction third operational refinement and that code integration on the supply chain we We are optimizing our procurement warehousing and logistics frameworks by strengthening our batching leverage with manufacturers and suppliers. We have shortened our supply chain response times. This enables faster, higher quality replenishment and boosts our supply chain resilience. We are also consolidating data streams across our physical stores, robot shops, and online commerce to build only channel data infrastructure. upgraded membership ecosystem tracks customer behavior. Allocating predictive insights which help us optimize our inventory. On partner channels, our operational metrics is evolving towards deeper integration. We We are transitioning channel partner relationships with traditional transaction lead distribution into high-value customized strategic elements and working closely with partners to ensure our premium IP products are placed in environments that respect our brand integrity and pricing. On the digital front, our cumulative social footprint continues to scale in positive level, And we shifted our KPIs from vanity followers metrics to deep engagement quality. Our online platforms function as a strategic bridge, converting data to community engagement into physical D2C foot traffic and reinforcing offline experience with online knowledge. Fourth and finally, talent acquisition and organizational capability building. To To execute our closed-loop strategy, we continue to build our team, onboarding top-tier industrial experts across premium store operations, product design, and core brand operations. Before I hand the call over to our CFO for a granular financial review, I want to address our bottom line results directly. Our financial loss this quarter was heavily impacted by a one-time non-operating income statement itself, an item driven entirely by market valuation adjustments. This historical accounting evaluation is non-cash in nature, separated from our ongoing core operations. Operationally, our performance reflects our necessary upfront investment in design capability, next generation product innovation, and targeted brick-and-mortar storefront and pop-up expansions. Currently, as we proactively optimized our business model and navigated challenging retail sales environment, our revenue scale was affected by lower sales through traditional channels. channels, cost and expense optimization is underway across all operational segments. While revenue and cost trends are not yet fully aligned, we expect that gap to close over time as our revenue stability and our cost structures are optimized. Looking forward, we are committed to balancing capital stability with operational momentum with a near-term mandate to drive towards sustainable profitability at an early date. At the same time, we will maintain a steady uncompromising cadence in operating and incubating the proprietary IPs our users allow. I will now turn the call over to Tim for the detailed financials. Thank you. Thank you Before I go into the details of our financial results please note that all amounts are in RMB terms unless otherwise stated. The reporting period is the fourth quarter of fiscal year 2026 ended on June 30, 2026. And in addition to gap measures, we will also be discussing non-gap measures to provide greater clarity on the trends in our actual operations. In the fourth quarter, our total revenue was $127.7 million, up 94.1% year-over-year, but down sequentially. The year-ever-year growth was primarily driven by higher sales of both existing and newly launched IT product lines in our pop-toy business. On a sequential basis, the decrease was mainly due to a challenging market environment and the lower channel sales. Cost of revenue was $94.7 million compared to $43 million a year ago and $107.9 million in the third quarter. The year-over-year change was mainly dû to higher IP product costs in line with revenue growth, as well as increase in logistics, labor, and IP licensing expenses. Secretually, the change was primarily due to lower channel sales. Our growth margin was 25.8% this quarter, compared to 34.7% a year ago and 34.5% in the third quarter. Total operating expenses were $216.1 million for the quarter. To break this down, sales and marketing expenses were $56.2 million this quarter, broadly in line with $57.7 million in the third quarter, compared to $19.1 million a year ago. The year-over-year change mainly reflected higher advertising and promotional expenditures and increased employee compensation. This investment supported targeted marketing for our brands and IP products. They also supported the continued expansion of our multi-channel sales capabilities. As a percentage of total revenue, non-GAAP sales and marketing expenses, which exclude share-based competition, were 43.9% this quarter, compared to 29% a year ago and 35% in the third quarter. Moving to research and development R&D expenses, were 9.9 million this quarter. compared to $9 million a year ago and $9.5 million in the third quarter. The year-over-year change was mainly due to higher product design-related expenses as we continued to invest in our design team. Meanwhile, employee compensation and other service fees remained broadly stable during the quarter. As a percentage of total revenue, non-GAAP research and development expenses, which exclude share-based compensation was 7.7% this quarter compared to 13.5% a year ago and 5.7 in the third quarter. General and administrative expenses were 25.8 million compared to 19.7 million a year go and 33.6 million in the 3rd quarter. The year-over-year change was mainly due to higher share-based compensation expense. Sequentially, the decrease was driven by lower salary expenses and a lower share-base compensation expense, as percentage of total revenue, non-GAAP general and administrative expenses, which exclude share-based compensation, were 14.4% this quarter, compared to 26.3% a year ago and 13.8% in the third quarter. As a result, our net loss from continuing operations was $169.6 million compared to $21.8 million a year ago and $34.1 million in the third quarter. Our adjusted net loss for continuing operations were $37.7 million compared with $19.3 million ayear ago and a $22.9 million in third quarter Basic and diluted net loss from continued operations per auditor share were both 1.07 during the quarter compared to 0.12 a year ago and 0.21 in the third quarter. Basic and Diluted Adjusted Net Loss from Continued Operations per Auditor Share were both 0.24 during the third and compared to 1.10 a year and 0,14 in the fourth quarter. Separately, we recorded a goodwill impairment charge of $124.1 million this quarter related to our acquisition of Fast Fund. This was mainly due to lower-than-expected financial performance amid macro-advance. The original goodwill from this acquisition was $187.6 million, And after the impairment, our remaining good balance was $63.5 million as of June 30, 2026. Now moving to capital allocation, our board approved a $20 million U.S. dollar ADS repurchase program in June. As of September 16, 2026, we had repurchased approximately 0.4 million ADS for approximately 0,7 million U.S. dollars under the program. We will continue to assess share repurchases and other capital return opportunities alongside our investment needs with the goal of maximizing long-term shareholder value. Looking ahead, as we continue to invest in our self-operated system, we will remain disciplined in allocating capital across our different formats, closely evaluating the unit economies of each one and prioritizing investment towards those with the strongest long-term potential. We remain committed to strengthening our IP and product capabilities while improving operating efficiency over time. That concludes my prepared remarks. Operator, let's open up the call for questions. Thank you. Thank You. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. When asking a question in Chinese, please translate your question in English for the convenience of everyone on the call. Please ask one question at a time. And today's first question comes from Liping Zhao with CICC. Please go ahead. Good evening Mr. Li and team. Thanks for taking my questions. My question is about the new IP. What plans do you have for the exploration, incubation, and commercialization of new IPs? Thank you. Okay, let me answer this question, and then my colleague will help me translate it. We already have a set of 0-1 system打法 for the new IP, because I just mentioned that we have more than 20 IPs, and then we build this ability around the life cycle of this IP, and then from digging and hatching to commercialization, we have already formed a method and a team for each link. In terms of new IP discovery, incubation, and commercialization, we have developed a systematic approach that takes our IPs from zero to one with, as we mentioned, 22 properties. We build our capabilities around a full lifecycle of IPs, from discovery to incubation to commercialization. Every stage has its own approach and a dedicated team. At the same time, we selectively bring in international IP collaborations. These partnerships allowed us to gain valuable experience in product development and market operations, which we then feed back into our own original IPs, creating a positive cycle that strengthens our core over time. let me make you more details on the discovery side we maintain both original in-house creation and collaborations with artists. Our IP portfolio has now expanded to 22 properties, spanning a wide range of styles from cool-cut to adorable to fashion-forward. We continue to bring in talented emergent designers and artists to keep our creative pipeline fresh and diverse. 比如CNN主打的是不完美又可爱 巴库库代表的是自由勇敢的一个小野孩 然后CNNO是去年下半年我们才推出的新IP 那么跨IP的用户重合度还在持续的上升 这个就说明我们这套0到1的孵化机制已经走通了 接下来我们会把同样的方法论复制到 就比如R1L1POPO这些新的IP上面 来逐渐形成就是这种可复製的孤化能力 On the incubation side, we use both data and emotional connection to guide our work. We look at the real-time cells and user feedback from our DTC stores and roboshops to shape our IP designs. At the same time, we give each IP its own personality and emotional appear. Sinono is about imperfect but adorable. Wakuku is afraid and breathes little wild child. Sinono launched in the second half of last year, and the cross-IP user overlap is still growing. This tells us our zero-to-one incubation model works. We will bring the same approach to in-purpose pigs, building a building a repeatable process as we go We also launched a limited version of the white peach bubble water with YuanQi Forest. We also made a joint product with the Boston Museum of Art. We also cooperated with a fashion brand in France, called Eero, to launch a joint call card. We will soon be using the official cooperation IP of this year's China Online Tennis Open Championship. Okay. On the commercialization side, we are advancing both our core IPs and our newer ones. For our flagship IPs, we keep rolling out new products to strengthen our base. For our newer IPs we are jogging across industry collaborations and expanding into more scenarios. For example, Sinono has been very active on a partnership this year. We teamed up with Janky Forest on a limited edition white peach sparkling water, collaborated with the Museum of Fine Arts Boston on the co-branded products, and partnered with the French fashion brand IRO Paris on an exclusive plush candle series. Sinono will also take a part as an official partner IP at 2026 China Open. On the new IP front, Fluffy Lily rolled out a themed campaign during Qixi Festival and also teamed up with a phone case brand, Case Band. Splashy Lily also serves as an official event partner for the 38th 100 Flowers Awards. New large-scale figures are also being released on a regular basis. Across all these initiatives, from the beverages to fashion, from arts and culture to sports events, and from seasonal campaigns to lifestyle merchandise, Our IPs are steadily making their way into a broader range of consumer and everyday life scenarios. So we believe the pop toy industry is shifting. It is no longer about single product hits. It is about who can consistently incubate IPs with real character and stories and operate them well. That takes time and discipline. This is a concrete reflection of what we mean by putting long-term health first. Thank you. Okay, thank you. That's all for the question. Thank you, Ms. Li. That was very clear. Thank you. And our next question comes from Yikun Zheng with CITICS. Please go ahead. Thank you for taking my question. And my question is about our offline channels. Can we have some update on the current situation of our offline channels? and what is our expansion plans on offline channels given the recent fluctuations in industry sentiment? Thank you. Okay, thank you. I will answer your question directly in English. Currently, we have opened seven D2T brand stores across four core cities in China since the end of last year. This quarter, we opened a new store at Beijing Daxing International Airport, making an important step into transportation hub scenarios and effectively reaching high-value business and travel consumers. Each D2C store is integrated into our self-operated brand system with a unified IT expression, serving not only as a sales channel but also as a call space for user interaction. Regarding our store opening cadence, we are firmly committed to a quality over quantity approach. We prioritize the operational quality of each store over the number of stores we opened. For us, D2C stores are the foundation of our relationship with users. Regarding the robot shops, the initial rollout phase is largely completed. Our focus has shifted from deployment scale to operational efficiency and the refund operations. These machines extend our offline presence and generated real-time consumer insights, helping us better understand and product preferences, and purchasing behaviors, and informing our assortment and placement decisions. In terms of expansion strategy, we remain disciplined in site selection and focused on refined operations. The Daqing Airport store validates our transportation hub approach, and the Hong Kong Central Pier IP-themed boat experience expected to launch early next month represents another new scenario exploration. We will not open stores for the sake of opening stores. Every new store plan goes through a strict ROI review and site evaluation before we move forward, especially under this challenging market environment. We only consider replication after confirming the unit economies are found. Yeah, that is our approach. Thank you, Tim. It's very clear. Thank you. And our next question comes from DC with Hightower Securities. Please go ahead. Thank you, Benjamin, for taking my question. My question is about our inventory. So what is the performance of our sell-in and sell-through in the most recent season? And how do we expect to manage our inventory in the future? Thank you. Thank you for your question. Regarding our revenue composition and inventory dynamics, the channel inventory did run higher than our normal operating range this quarter. The underlying cause is not attributable to any single product line. Instead, it reflects structural mismatch between a cooling macro environment and our historical operating pace. Historically, we relied heavily on our distributor network to gauge end-market demand cycles. As the consumer market cooled, the limitations of this traditional wholesale model became apparent. Our direct visibility into real-time end-customer demand was not precessed enough, creating a temporary gap between our selling pace and the actual end-market sell-through. Additionally, when evaluating our inventory balance, it is important to consider the unique operational characteristics of the pop toy and the IP industry to prepare for our packed pipeline of upcoming product launches and to support the incubation of new IP products. A substantial amount of strategic, front-loaded manufacturing and advanced stockpiling is structurally necessary. These forward-looking buffers designed to secure our upcoming release calendar represent a deliberate and healthy component of our current inventory composition. This friction is precisely why we remain firmly committed to our transition towards a self-operated closed loop. We have already initiated a series of proactive, disciplined measures to optimize our inventory structure. The first one is leveraging omni-channel synergy to accelerate self-through. We are significantly increasing product exposure and localized touchpoints through our scaling D2C online channels, premium D2Cs stores, and robot shop network. Concurrently selected assortments have been strategically integrated into promotional pipelines pipelines for our high-engagement pop-up events and experiential or offline initiatives to accelerate organic consumer sell-through, and secondly, international sell-in moderation for scarcity control. Intentionally, sell-in moderation for scarcity control. We have deliberately moderated our shipping pace to wholesale distributors. We prefer to absorb a short-term compression in wholesale revenue to give the channel sufficient room to clear existing stock in a healthy way, rather than overcrowding the channel for short-term gain. And thirdly, targeted channel clearing programs. Across select partner channels, we have introduced high-value bundle offers and tailored purchase incentives. This drives faster inventory turnover while preserving our core brand equity and pricing integrity. We view the current inventory pressure as temporary and fully manageable, but working it down structurally will take time, and the exact trajectory will depend on macro retail conditions. We do not anticipate a rapid market recovery in the near term, and we will not resort to aggressive clearing measures that undermine our brand premium. I think the most important thing is that backed by our interest-bearing, debt-free balance sheet and highly resilient liquidity profile, we possess the financial durability and strategic patience required. This inventory episode has only reinforced our determination to minimize channel reliance and strengthen our self-operated capabilities. Going forward, we will fully leverage live data from our D2C store friends and robot shops to build more accurate demand forecasting models, optimizing our production and shipping pace from the source to prevent similar mismatches in the future. Thank you. Thank you As there are no further questions, I'd like to hand the conference back to management for closing remarks. Thank you again for joining our call today. If you have any further questions, please feel free to contact us or submit a request through our IR website. We look forward to speaking with everyone in our next call. Have a nice day. Thank you. That concludes today's presentation. You may now disconnect your lines and have a wonderful day.