1. What will be the next plan, revenue and profit in case Yeah1 is allowed to renew the Content Storage Agreement (CHSA for short) with YouTube? And if Yeah1 is withdrawn from the CHSA license, will the Board think of developing another business to replace it? If yes, what is the business and its potential? What is the plan for Yeah1 to expand to the world when business with YouTube MCN to manage 3rd party channel is no longer available?

“In the event that the Content Storage Agreement is terminated, it is very clear that losing YouTube MCN for 3rd party Channel Management does not prevent us from building other businesses on YouTube. When the incident occurred, the Board of Directors has focused on adjusting the resources to channel building owned and operated by Yeah1. Up to now, Yeah1 has built Nickelodeon channel (Nickelodeon Vietnam, Nickelodeon Thailand) and film channels in collaboration with TVB.

In case of being granted the CHSA license, of course, we will continue to build and develop the YouTube MCN business for third-party channel management. Yeah1 will continue to do the selection work for our channels partners because we have a team of experienced personnel, solid relationships with a lot of global content channels and creators. These resources will help our channel partners develop. ”- Mr. Niraan De Silva, Deputy General Director of Strategy, Yeah1 Group shared with shareholders at the Annual General Meeting of Shareholders 2019.

Mr. Niraan De Silva, Deputy General Director of Strategy Yeah1 Group answered questions from shareholders

2. What is the specific cause of the recent incident with YouTube? How did this affect the company's business situation? Through this incident, does the management board has any control measures so that similar risks do not happen in the future?

Mr. Nguyen Anh Nhuong Tong, Chairman of Yeah1 Group shared: “About the incident with YouTube, 3rd party channel management is a business belonging to a subsidiary of Yeah1. As previously announced, YouTube claimed that SpringMe Pte. Ltd. (Thailand-based Company, indirectly owned by Yeah1 Group 16.93%) has channel management activities that are not in line with YouTube's policy. This led to YouTube applying the same policy to all other companies related to YouTube Adsense under the Group.

Although this segment has achieved certain success, but besides, in one day, the amount of content that Yeah1's YouTube system posted about 400 hours of new content. When it grows too fast, the operation and management system will have many potential risks and face with problems that we have not anticipated. Therefore, at the General Meeting of Shareholders, the Board is asking for an increase in budget in order to build our own risk management, internal audit and risk control departments (budget increases from 1.5% to 3 % is for that reason) to meet management needs.

Yeah1's YouTube segment has grown fast and strong because of the MCN tool (the segment that recently have operating problems with YouTube). In fact, this tool allows more external content creators to join the Yeah1's network, while other companies in the market are producing their own content. Yeah1 has more tools to add more creative partners so it has created a motivation for Yeah1’s YouTube segment to grow quickly, as the same time, there is more potential for risk. When the problem occurs, I think it is a good lesson if we want this section to continue to grow further, we have to see all of the potential risk factors of this industry. When we learned our lessons, Yeah1 will certainly grow sustainably and much further. In order to grow to the world, only MCN is not enough, but also channels that we own need to create content that appeals the world market. For example, Yeah1 can still rely on experiences, people, and platforms that Yeah1 has to develop. Right now, Yeah1 is still very active in negotiating with YouTube to get the best results for the company. Thus, we must also focus on developing other areas to ensure the development speed of Yeah1, exploiting all the values ​​in the ecosystem that Yeah1 has to achieve the development speed in the near future. ”

3. About buying treasury shares, if approved, when will they be executed and follow what principle?

 Mr. Nguyen Anh Nhuong Tong, Chairman of Yeah1 Group Board of Directors shared:

"Yeah1 has announced the purchase of treasury shares. When writing to the State Securities Commission ("UBCK "), the UBCK noticed that Yeah1 lacks a content that is a source of purchase. After that, Yeah1 used the text from the extraordinary General Meeting of Shareholders recently and still did not meet the requirements of the UBCK (need to specify "use of resources to buy treasury stocks"). Because of the lack of the words "treasury stocks", the UBCK did not approve. Therefore, at this meeting, the contents of "buying treasury stocks" is clearly indicated that the UBCK will approve. The time to purchase treasury shares must comply with the State's regulations. Today after approving the documents, Yeah1 will submit to the UBCK. When the UBCK approves us to buy treasury shares, we will proceed to buy treasury shares. ”

4. This year Yeah1 has dividends? If yes, what is the plan to divide? 

Mr. Nguyen Anh Nhuong Tong, Chairman of Yeah1 Group Board of Directors: “Right now Yeah1 has to make a decision to buy treasury shares. In recent years, there have been many opinions of shareholders to buy back treasury shares in case the share of Yeah1 is going down. In order to balance resources, we use profits and a surplus from the last issuance. Dividends will fall within this range. If later on we have strategic partners or investors, treasury stocks are also a part of reselling to strategic investors. If the price is better, the company will also get a surplus from this treasury stocks and shareholders will also benefit in the long term. "

5. In 2018, why did the amount deducted for the Board increase more than the approved amount? Why did the remuneration proposed to the Board of Directors in 2019 increase from 1.5% to 3% compared to 2018?

 Mr. Dao Phuc Tri, CEO Yeah1 Group replied: There are 2 reasons. The first reason is because when the IPO, the workload is more than before. In the past, there were only 4 members of the Board, currently 8 people to meet the work needs. Reason 2: Previously, the proposal was based on the reality of 2017.

Mr. Dao Phuc Tri, CEO of Yeah1 Group

 Mr. Nguyen Anh Nhuong Tong, Chairman of the Board of Yeah1 Group added: New departments of the Board were established, for example, the Internal Control, the personnel subcommittee, the financial subcommittee. During this time, the Board of Directors will be an independent apparatus to monitor and support the executive apparatus. Because the company is growing fast, the risk is also increase, the bigger the business scale the bigger Board of Directors has to expand to monitor more efficient activities, which increase the costs. The cost for the Board is the cost for the whole machine.

6. Regarding the results of the first quarter, there is a concern in the report that the withdrawal of the CHSA license of YouTube has a negative impact on other channels, not just the YouTube channel. That is one of the reasons for the loss of the traditional channel in the first quarter due to the impact of YouTube's withdrawal of Yeah1's CHSA license. Management expects the impact of this to last in the short or long term? In the second quarter, do traditional channels also record losses?

Mr. Nguyen Anh Nhuong Tong, Chairman of the Board of Yeah1 Group responded: “Straightforwardly acknowledges that the termination of a Content Storage Agreement partly affects other areas of Yeah1. YouTube MCN segment Third party channel management is just a part of Yeah1's business system. And Yeah1 can and is creating so many similar subsidiaries. The problem is why must we depend on the MCN and when it depends, what is the solution? To solve this problem, is the story of at least 6 months. This year's growth plan will slow down to make sure and the following years have the motivation to grow better. The immediate target is that, if the problem is overcome faster, the target of this year will also be adjusted to increase. "

7. Regarding ScaleLab, if Yeah1 has handed it over to the American company, has it received the money from that party? Because of the capital allocation plan, if in fact 2018 only spent about 300 billion, that is more than 800 billion from the private issuance for operation in 2019. But the report only shows 500 billion, is that because of the Board of directors is concerned about the amount of 288 billion cannot be receive this year?

Mr. Nguyen Anh Nhuong Tong, Chairman of the Yeah1 Group responded: "About ScaleLab, currently paid 12 million USD out of a total of 20 million USD. The Board must provide this plan because of YouTube’s policy, including companies that have just been bought, have not taken over, have not signed a contract, there are also handling measures in place. Therefore ScaleLab MCN was also terminated, so the Board of Directors must ensure capital safety and be forced to resell. Currently ScaleLab has received the MCN license, which means it has preserved the company. The second step is negotiating to recover capital, and that is the solution of the Board. It is being negotiated and signed with the founding shareholders of the Company that buys ScaleLab to preserve capital. ”

8. According to the first quarter business report, there are $ 300,000 to buy content from Nickelodeon and Ladbible. This payment is $ 300,000 per quarter or how? How does the company perceive the potential for commercialization when buying these content? Businesses outside of YouTube that have activities from Webface are very profitable. What is the difference between Webface and Netlink that can bring such high profits? The potential of this subsidiary? 

 Mr. Dao Phuc Tri, CEO of Yeah1 Group answered: 

Nickelodeon's content usage period is 3 years. The cost is "minimum guarantee," the minimum guarantee cost to use the content. If in the process of exploiting this content the amount of money collected more than the above figure we will have revenue sharing with our partners. The potential is very well noticed. Typically, the content has been posted in less than 1 month but has reached 6 million views / day and brought in revenue of $ 25,000 in the first month. We expect revenue to increase by 30% in the following month. This is a specific example showing that the channels own and operate by Yeah1 have great potential with higher profit margin than the MCN model.

 Mr. Dao Phuc Tri, CEO of Yeah1 added:

About Webface is mainly focus on the revenue on Facebook. The most active segment is Instant Articles. Facebook will sell ads, Yeah1 will link to websites and put those ads on the website. The format is similar to Netlink, but the ad storage is operated by Facebook, and the Netlink exploits Google. Currently revenue and profitability are very good.

9. Currently Yeah1 has negotiated any other platform besides the old platform? Does the company have any plans before competitors? 

 Mr. Nguyen Anh Nhuong Tong, Chairman of Yeah1 Group answered: 

Multi-platform is what Yeah1 is building on international platforms. Yeah1 itself has its own platform-building activities, for example, specialized digital content platforms will be released in the near future. Yeah1 just invested in a company that builds systems on the app, can also be called a social network on the app or multi-platform on the app. When Yeah1 invests, Yeah1 has all the support tools like Website, Facebook, and YouTube for the app. This demonstrates the value of Yeah1, which is different from the outside start-ups, if they develop independently they cannot grow fast and go far, but if supported by the platforms that Yeah1 is having, those business models will become very good businesses in the future. Regarding competitors, Yeah1 also recognizes that there will be other companies in the same industry. However, Yeah1's market still is a huge and potential market that can be shared, and many companies can co-living together. Playground in this area is enough for everyone.