Q2 2024 Zhihu Inc Earnings Call

Operator: Ladies and gentlemen, thank you for standing by and welcome to the Zhu Hu Inc. 2nd quarter, 2024 financial results conference call. At this time, all participants are in a listen-only mode.

Ladies and gentlemen, thank you for standing by and welcome to goes Yahoo, Inc. Second quarter 2024 financial results Conference call.

Speaker Change: At this time all participants are in a listen only mode.

Operator: After the speaker's presentation, there will be a Q and A session. Today's conference is being recorded.

Speaker Change: After the Speakers' presentation there'll be a Q&A session.

Speaker Change: Today's conference is being recorded.

Yolanda Liu: At this time, I would like to turn the conference over to Yolanda Liu, Director of Investor Relations. Please go ahead, ma'am.

Speaker Change: At this time I would like to turn the conference over to Yolanda Liu Director of Investor Relations. Please go ahead ma'am.

Yolanda Liu: Thank you, operator.

Yolanda Liu: Thank you operator, Hello, everyone welcome to chemicals second quarter, 'twenty 'twenty four financial results conference call.

Yolanda Liu: Hello, everyone. Welcome to Zhu Hu's 2nd quarter, 2024 financial results conference call. Senior management joining me today are Mr. Zhou Yuan, our Founder, Chairman and Chief Executive Officer, and Mr. Wang Han, our Chief Financial Officer.

Senior management joining me today are Mr. Joe, Yes, our founder Chairman and Chief Executive Officer, and let me start Longhorn our Chief Financial Officer.

Yolanda Liu: Before we get started, I'd like to remind you that today's discussion will include four looking statements made under the safe harbor provisions of the U.S. Private Security's Relicitation Reform Act of 1995. These statements involve inherent risks and uncertainties. As such, actual results may be materially different from the views expressed today. Other information regarding these and other risks and uncertainties is included in our public lighting with the U.S. Security and Exchange Commission and Hong Kong's Stock Exchange. The company does not assume any obligation to update any forward-looking statements, except as required under Act of the law.

Speaker Change: Before we get started.

To remind you that today's discussion will include forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.

Speaker Change: These statements involve inherent risks and uncertainties.

Speaker Change: As such actual results may be materially different from the views expressed today.

Speaker Change: Well the information regarding these and other risks and uncertainties is included in our public filings with the U S Securities and Exchange Commission and the Hong Kong stock exchange.

Speaker Change: The company does not assume any obligations to update any forward looking statements, except as required under applicable law.

Yolanda Liu: Additionally, the matter we will discuss today will include both gap and non-gap financial measures for confirmation purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today.

Speaker Change: Additionally, the matter we will discuss today will include both GAAP and non-GAAP financial measures for comparable ratio purposes only.

Speaker Change: For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. Please see the earnings release issued earlier today.

Yolanda Liu: Innovation, a webcast replay of this conference call will be available on our website at irdotrufoo.com.

Speaker Change: A webcast replay of this conference call will be available on our website at IR Docs Yahoo Dot com.

Wang Han: I will now turn the call over to Mr. Wang Han, our CFO, has placed go hat. Thank you, Elena. Hello, everyone. Thank you for joining Chu Hu's second quarter 2024 earnings call. I'm pleased to deliver today's opening remarks on behalf of Mr. Zhou Yuan, Founder, Chairman, and CEO of Chu Hu. We're pleased to report another strong quarter. In the second quarter, we have achieved robust improvements in operating efficiency, which is of course larger and raised by 5.8% at percentage points year-over to 59.6%. We're total operating expenses decreased by more R&B 140 million compared to same period last year, including a reduction of R&B 120 million in marketing expenses.

Speaker Change: I will now turn the call over to Mr. Wolohan Albert C. F. O have please go ahead.

Speaker Change: Thank you Linda Hello, everyone. Thank you for joining Joe Who's second quarter earnings call.

Albert C.: Pleased to deliver today's opening remarks on behalf of Mr. Joel Gay founder Chairman and CEO of <unk>.

Speaker Change: We're pleased to report another strong quarter.

Speaker Change: Second quarter, we achieved robust implementing operating efficiency.

Speaker Change: Gross margin rates by five 8% percentage points year over year to 59, 6%.

Total operating expenses decreased by more than RMB 140 million compared to the same period last year, including a reduction of or be 100 and Tony.

Speaker Change: Marketing expenses.

Wang Han: Or a just-in-now laws declined by 79.9% year-over-year to R&B 44.6 million, marking our lowest quarterly laws since our U.S. ideal. In the second quarter, we made significant strides in enhancing the Chu Hu's community trustworthiness and strengthening our court user experience. In addition to introducing an array of AI-Power products and engrossing common initiatives, we proactively refined commercial common distribution and meticulously tailored our services to meet the diverse needs of various users. Zhang, as a result, our community remains vibrant and continues to grow, exhibiting positive trends across key user metrics, such as core user retention rates and daily user time spent.

Speaker Change: Our adjusted net loss declined by 79, 9% year over year to RMB $44 six minute walking our lowest quarterly loss. It seems though you are ideal.

Speaker Change: In the second quarter, we made significant strides in housing that drew who's communities trustworthy news and strengthening our core user experience.

Speaker Change: In addition to introducing an array of AI powered products and grocery and E. Commerce initiatives are actually refine commercial content distribution and meticulously tailored our services.

Speaker Change: Services to meet the diverse needs of various user groups.

Speaker Change: As a result, our community remains vibrant and continuously grow exhibiting positive trends across key user metrics such as core user retention rates in theory I just.

Speaker Change: Use your timeshare.

Wang Han: We expanded AI applications across our products and services during its quarter, aiming to provide users and clients within a has experience. In the late June, we officially launched Truple Jada, marking a significant milestone in our AI search initiatives. Since it's debuted on the PC platform, we have observed a promise increase in user engagement and market reputation, highlighting new growth opportunities for us. Throughout the second quarter, our laser focus on cornerstone verticals coupled with enhanced support for content creators has led to significant improvements in the experiences of those users and content creators within our community. As of the end of June, the cumulative is as of content on Truple Rage 830.9 million, a 16.8% year-year increase.

We expanded AI applications across our products and services during this quarter aiming to provide users and clients. We've done he has experience.

Speaker Change: In late June.

Fish meal lunch shuffle, Judah, marking a significant milestone.

Speaker Change: Sure she initiatives.

Speaker Change: Since its debut on the PC platform, we have observed a promise increase user engagement and market reputation.

Speaker Change: A lot of new growth opportunities for us.

Speaker Change: Throughout the second quarter, our laser focus on cornerstone verticals, coupled with getting have support for Kona Quakers has led to significant improvements in our experiences opposed to users and content creators within our community.

Speaker Change: As of the end of June it came a little pieces of content on Triple reached $830 9 million or 16, 8% year over year increase.

Wang Han: The cumulative number of content creators within that Truple Community grew by 12.5% to some before 0.9 million during the quarter. We continue to rise in a proportion of highly active user engagement content creation. To further bolster user engagement, Truple continued to foster rational, optimistic, in-depth discussions around prominent social issues and world events this quarter. For example, during the annual call call period, we strategically enhanced the community's support for call users by elevating the first-hand experiences shared by previous examines, optimizing search functionalities and refining recommendation algorithms. Accordingly, the volume of quality of the call call related answers was marked with three day and seven day classroom response rate experiencing double digit growth.

Cumulative number of content creators within digital community grew by 12, 5% just before 9 million during the quarter as continued rise in a proportion of highly active user engaged in conversation.

Speaker Change: The photo bolster user engagement, Xu who continue to foster and rational optimistic in depth discussions around prominent social issues and word events this quarter.

Speaker Change: For example, during the annual call call period, we should restrict strategically you have the community support for all users by elevating the firsthand experiences shared by previous peaks in knees, optimizing search functionality and refining our recommendation algorithms.

Speaker Change: Accordingly, the volume of calls and quality of alcohol related to all sorts of Rosemary Martin roast Mark sleep with three day seven day classroom response rate.

Speaker Change: Have you seen double digit growth.

Wang Han: The search and user engagement and community interactions further solidified June's position as the most trusted platform for young people seeking guidance on pivotal live decisions, better in the lead-up to university or as they prepare to enter the workforce. We also implemented effective initiatives to dual users to our coverage of the Paris Olympics. Within a week of the Olympic opening on July 26, quantum views related to the event short to over 600 million, with over 500 thousand discussions spanning topics such as science and technology, sociology, psychology, and cultural arts. Thanks to this effort, positive feedback from dual users on our high-quality contents continues to rise, accompanied by a significant increase in user interactions.

Speaker Change: The surge in user engagement in our community interactions further solidified its position as the most trust trusted platform for young people seeking guidance on pivotal lot positions veteran to lead up to universe worthy or as they prepare to enter the workforce.

Speaker Change: We also implemented a if activity initiatives to draw users to our car ratio off the Paris Olympics Theres no.

Speaker Change: Wheat cost Olympic opening on July 26.

Speaker Change: I don't view as related to the events sure to over 600 million with over 500000 discussions spanning topics such as science and technology sociology psychology in a courtyard.

Speaker Change: Thanks to this Atlas positive feedback from Zhu who users are high quality content continue to rise accompanied by a significant increase in user interactions.

Wang Han: I wish daily engagements for VAU grew by nearly 40 percent year over year, with the monthly average of upwards increasing by over 47 percent year over year and more than 13 percent coral fluid. As we progress in our development of the cutting edge technology, we consistently strive to push boundaries and expand application scenarios. Official launch of dual food Jedi in the late June marks a significant step in our exploration of AI power search functionality. dual food Jedi's deep integration with the Conquerators says it's a part from other AI Zhang. The majority of the con and powering Juhu Juddai's derived from Juhu's proprietary high-quality con and library, which allows users to trace counselors back to the origin of sources, explore more premium Q&A's within the community, and directly connect with con and graders.

Speaker Change: Average daily engagements per year, you grew by nearly 40% year over year, whereas the mostly average uploads increasing by over 47% year over year and more than 13% quarter over quarter.

Speaker Change: As we progress in our development of cutting edge technology consistently strive to push boundaries and extended application scenarios.

Speaker Change: The official launch I've joked with you die and later on marks a significant step in our exploration of AI powered search functionality.

Speaker Change: The Orchard House integration was a calling quitters sets us apart from other adjuvant search products.

Speaker Change: The majority of the court empowering 200 is derived from Jewish proprietary high quality content library, which allows users to track how serious back to the old original sources explore more premium Q&A as it was in a community and directly connect Wisconsin Quitters.

Wang Han: We believe Juhu Juddai's unique ability to prioritize human elements and emphasize professional and authentic content that embodies collective humanism is especially valuable in an area increasingly dominated by AI-generated content. In July, Juhu Juddai's total visit increased by 430%, compared with June as we continue to leverage Juhu's self-developed LOM to refine Juhu Juddai's performance and user experience. By the end of July, 7-day user retention doubled compared with early July. Juhu Juddai's morey around responsibility also all performed in market peers, earning high praise from professionals. Moving into the second half of the year, we will continue to enhance our user experience on Juhu Juddai's PC platform throughout ongoing improvements in product features, algorithms, and performance.

Speaker Change: We believe <unk> unique ability to prioritize human elements and emphasize professional and an authentic content in bodies collective human vision is especially valuable you know area increasingly dominated by AI generated content.

Speaker Change: In July so who did ask total visit increased by 430 per share compared with June as we continue to leverage it would sell through what I looked at what happens when we find the true performance and user experience.

Speaker Change: By the end of July seven date user retention doubled compare with fairly July.

Speaker Change: Judas more Iran response capability also outperformed the market peers pretty high praise from professionals.

Speaker Change: Moving into the second half of the year, we will continue to enhance the user experience on your Das P. C platform through ongoing improvements in product features algorithms and performance.

Wang Han: To maintain it, we were sent officially to launch an upgrade Juhu Juddai tab on the Juhu app, which will effectively complement the desktop version. Juhu Juddai not only provides professional with effective two-based scenarios, but also with vast potential for exploration, user interaction, and content creation through the power of the Juhu community. Over, we aim to reach a broader audience with regard to relying on its performance and reputation burden, extensive advertising and promotion. For effective strategic planning and execution, it is reflected not only by our growing user engagement and flourishing community, but also by our significantly improved operating efficiency.

Speaker Change: So you were saying officially launch an awkward truth type honest you called out which we're exactly to complement the desktop version.

Speaker Change: Does that not only provides a professional was effective two based scenarios, but also with vast potential for exploration you user interaction and concentration through the power of the true who community.

Speaker Change: All work, we aim to reach a broader audience with straight up relying on its performance and reputation deserved an extensive advertising and promotion.

Speaker Change: Our effective strategy strategic planning and execution is reflected not only by our growing user engagement are flourishing community, but also by our significantly improved operating efficiency.

Wang Han: In the second quarter, the further optimized operating efficiency across our business lines by leveraging AI technologies, propelling us towards our operational targets for this year.

Speaker Change: The second quarter, the Florida optimized operating efficiency across all business lines by leveraging AI technologies propelling us towards our operator operational targets for this year.

Wang Han: Now, we'll love to delve into more details about the progress we achieved across our multiple business lines for the second quarter. First, our marketing services, free man and a pressure in the second quarter, was Raminu tolling R&B 304.4 million, decreasing by 16.7% year over year. However, I want to highlight that we've seen our marketing services, although our success is currently easterizing our defying during its adjustment period. Both bread advertising and performance-based advertising exhibited robustly gross, increasing by 17% and 28% for 1% year over year, respectively. This performance under course already affected my audition capabilities and substantial commercial potential of our high-value user base within the community.

Speaker Change: No I love to delve into more details about the progress we have achieved across our multiple business lines for the second quarter.

Speaker Change: First our marketing services remain under pressure in the second quarter. It was revenue totaling RMB 344 million decreasing by 16, 7% year over year.

Speaker Change: However, I want to highlight that within our marketing services. Although our success is currently experiencing a decline during this adjustment period, both brand advertising and performance based advertising exhibit robust growth, increasing by 17% and 20 April 4% year over year, respectively.

Speaker Change: This performance underscores our effective monetization capabilities and a substantial commercial potential for a high value user base was in a community.

Wang Han: Across all the industries we cover, the IDN3C categories continue to lead in growth. Additionally, fluid and beverage, beauty, skincare, spores, and outdoor industries experience notable increases in the average water volume during the 6-1A shopping festival, by 17.4%, 14.1%, and 13.1% respectively, compared with the same period of the last year. We were man-committed to delivering high-quality content that empowers our clients to drive their business growth, while also supporting meets your content creators with substantial commercial potential in achieving their financial growth. In this year's 6-1A is having a festival, the number of commercial content creators on a juicier platform increase more in 6-fold compared with the same peer-release year.

Speaker Change: Across all the industries recover the IV and <unk> categories continue to lead in gross.

Additionally, our food and beverage beauty skincare sports and outdoor industries experienced notable increases in the average order volume during this six one day shopping festival.

Speaker Change: 17.

Speaker Change: 4% 14, 1% of searching for 1%, respectively compared with the same period of last year.

Speaker Change: We remain committed to delivering high quality content that empowers our clients to drive their business grows while also supporting meet your content creators with substantial commercial potential in achieving their financial goals.

This euro six one day shopping festival the number of commercial Kannan Greeters just your platform increased more than six fold compared with the same period last year.

Wang Han: As we move into the second half of the year, we'll continue to enhance our marketing services grounded in the trans-worsiness of our community. Our efforts will focus on the following key areas. First, by leveraging our AI and AI capabilities, and we have data infrastructure, we aim to further boost a commercial efficiency for brands and merchants, but also enhancing all own products and operational efficiency. Second, we'll capitalize our community's professional discussion environment and a trans-worsiness among high-value users to assist more emerging verticals, particularly those facing technological barriers to build stronger market awareness and commercial credibility. Third, we will foster closer connections with a great number of content creators to enhance their ability to earn financial rewards in line with their capabilities.

Speaker Change: As we move into the second half of the year will continue to enhance our marketing services rather than in a trustworthy and except for a community.

Speaker Change: Or efforts will focus on a foreign key areas.

By leveraging our AI, all Ami capabilities and he has data infrastructure. We aim to further boost our comfort conversion efficiency for brands and merchants, but also enhancing all one product and operational efficiency.

Speaker Change: Second we will capitalize our communities professionally it's crushing environment and a trustworthy news and more high value users to assist more emerging verticals, particularly those facing technological barriers to butte stronger marketing awareness and commercial credibility.

Speaker Change: Sure, we will foster closer connections with Green number I'll kind of greater seeing hamster ability to earn financial rewards in line with your capabilities.

Wang Han: Starting to our pay membership business, our premium content has continued to distinguish itself with the unique market positioning and compelling stories attracting many new users in a second quarter. The number of subscribing members grew by 4.7% year over year to 14.7 million, well around the contribution grew to 46%, reaching R&B for 432.7 million. In addition to proudening our premium content offerings, we actually explored various new growth channels in a second quarter, including co-branding memberships and distribution channel expansion. Our content creators, through whose premium content, a discovery mechanism not only provides content creators with opportunities for growth, creative perfumes, and revenue generation, but also foster an entirely new creation ecosystem within the industry.

Speaker Change: Turning to our paid membership business.

Speaker Change: Our premium content has continued at a screen distinguish yourself with a unique market positioning and compelling stories are trucking many new users in the second quarter.

Speaker Change: The number of subscribing members grew by four 7% year over year to 14.7 million, while revenue contribution grew 46%, reaching RMB for 430 40 432.7 minutes.

Speaker Change: In addition to broadening our premium content offerings, we add.

Speaker Change: Actually explored various new growth channels in the second quarter, including co branded memberships and distribution channel expansion.

Operator: Ladies and gentlemen, thank you for standing by and welcome to the Zhu Hu Inc.

Operator: Ladies and gentlemen, thank you for standing by and welcome to the Zhu Hu Inc. 2nd quarter, 2024 financial results conference call. At this time all participants are in a listen only mode.

Operator: 2nd quarter, 2024 financial results conference call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a Q and A session. Today's conference is being recorded.

What kind of quitters sure who's premium content discovery mechanics them, not only provides content creators with opportunities for girls creative fulfillment and revenue generation, but also foster an entirely new creation ecosystem was an industry.

Operator: After the speaker's presentation there will be a Q and A session. Today's conference is being recorded.

Wang Han: In a second quarter, the number of true premium content creators earning income increased by 77.4% year over year. We also continue to unlock our high-quality, strong-story IPs' monetization potential. On July 9th, the short-drama, Love in a Dream, premium-ponged test and video. This marks another successful adaptation from Drew Hool-Yan-Yan's story of love, following the acclaim of True B. Next, our review of our location and training business to strategically optimize our business structure in a second quarter with a focus on efficiency enhancements, concentrating on self-operated offerings and align closely with our community to provide greater certainty and profitability.

Yolanda Liu: At this time I would like to turn the conference over to Yolanda Liu, Director of Investor Relations.

Yolanda Liu: At this time I would like to turn the conference over to Yolanda Liu, Director of Investor Relations. Please go ahead, ma'am. Thank you, operator. Hello, everyone.

Speaker Change: In the second quarter, the number of true premium content creators, earning income increased by 77, 4% year over year.

Yolanda Liu: Please go ahead, ma'am.

Speaker Change: We also continue to unlock our high quality straw story ip's monetization potential.

Yolanda Liu: Thank you, operator.

Yolanda Liu: Welcome to Zhu Hu's 2nd quarter, 2024 financial results conference call. Senior management joining me today are Mr. Zhou Yuan, our founder, Chairman and Chief Executive Officer and Mr. Wang Han, our Chief Financial Officer. Before we get started, I'd like to remind you that today's discussion will include four looking statements made under the same harbor provisions of the U.S. Private Security's Relicitation Reform Act of 1995. These statements involve inherent risks and uncertainties.

Speaker Change: On July 9th the short drummer Lobbing, a dream premium politician view.

Yolanda Liu: Hello, everyone.

Speaker Change: This marks another successful adaptational from drew who yeah, yes, sorry, the luxury falling a claim up truby.

Speaker Change: Next I'll review, our vocational training business.

Yolanda Liu: As such, actual results may be materially different from the views expressed today. Other information regarding these and other risks and uncertainties is included in our public lighting with the U.S. Security and Exchange Commission and Hong Kong's stock exchange. The company does not assume any obligation to update any forward-looking statements, except as required under Act of the Law. Additionally, the matter we will discuss today will include both gap and non-gap financial measures for confirmation purpose only. For a definition of non-gap financial measures and a reconciliation of gap to non-gap financial results, please see the earnings release issued earlier today.

Speaker Change: Strategically optimize our business structure in the second quarter is a focus on efficiency has been concentrating our self operated offerings and align closely with our community to provide greater certainty in profitability.

Wang Han: We also recorded gains on certain adjustments to our acquired business in Discord, achieving high margins. As a result of this effective measures, operating efficiency was in the vocational training segment in purpose. We make currently despite a slightly decrease in total revenue, which amounted to RMB 133.6 million per quarter. GMB for our vocational skills and interests programs that shape over 50% year-over-year growth disorder, whose AI and AGI-related programs continue to receive positive user feedback. Additionally, in response to students we boldly need during the graduation season, we expand in our offerings to include career planning and overseas study advisor programs. Zhang.

Speaker Change: We also recorded gains on certain adjustments or acquire businesses in this quarter, but should be high margins.

Speaker Change: As a result of this effective measures operating efficiency wasn't a vocational training segment improved significantly despite a slightly decrease in the total revenue.

Speaker Change: Which amounted to RMB $133 6 million per quarter.

Jim: Jim before all vocational skills and interests programs that shape over 50% year over year growth this quarter with AI and hei related programs and should continue to receive positive user feedback.

Speaker Change: Additionally, in response to students Ebola need during the graduation season, we expanded our offerings to include Korea plenty in overseas study advisor programs in <unk>.

Wang Han: In turn, this expansion encourages valuable user contributions, with beneficiaries in erasing the community with high quality content and innovative operations as they share their insights and experiences. Moving forward, we will continue to strengthen our absolute advantage in specialized subject offerings. We will also utilize AI technology to enhance operating efficiency and accelerate our progress towards profitability.

Turn this expansion encourage available user contributions these beneficiaries and duration at community with high quality content, and you know, which I appreciate is as they share their insights and experiences.

Yolanda Liu: Innovation, a webcast replay of this conference call will be available on our website at irdotrufoo.com.

Moving forward, we will continue to strengthen our absolute advantages.

Speaker Change: Vantage in specialized subject offerings. We will also utilize the AI technology. So he has operating efficiency and accelerate our progress towards profitability.

Wang Han: I will now turn the call over to Mr. Wang Han, our CFO, has placed go hat. Thank you, Elena. Hello, everyone.

Wang Han: In summary, our strong second-quarter performance showcases our understanding strategic planning and execution capabilities. As we move into the second half of the tournament four, we will remain confident in and committed to achieving quarterly profitability target. Meanwhile, we will continue improving our segments at engaging user experience and enhancing the global community's trust towards the needs to grow and nurture our user base. We will also show the ones who are AI-development initiatives in arranging all product capabilities and facilitating operating efficiency improvements across the broad. By fully leveraging our unique value proposition, we will further unlock to whose growth and commercialization potential of driving the company's long-term sustainable development.

In summary, our strong second quarter performance showcases our understanding of strategic planning and execution capabilities.

Yolanda Liu: Welcome to Zhu Hu's 2nd quarter, 2024 financial results conference call.

Wang Han: Thank you for joining Chu Hu's second quarter, 2024 earnings call. I'm pleased to deliver today's opening remarks on behalf of Mr. Zhou Yuan, founder of Chairman and CEO of Chu Hu. We're pleased to report another strong quarter. In the second quarter, we have achieved robust improvements in operating efficiency, which is of course larger and raised by 5.8% at percentage points year-over to 59.6%. We're total operating expenses decreased by more R&B 140 million compared to same period last year, including a reduction of R&B 120 million in marketing expenses.

Yolanda Liu: Senior management joining me today are Mr. Zhou Yuan, our founder, Chairman and Chief Executive Officer and Mr. Wang Han, our Chief Financial Officer.

Speaker Change: We are moving into the second half of a tornado before we remain confident in and committed to achieving quarterly profitability target.

Yolanda Liu: Before we get started, I'd like to remind you that today's discussion will include four looking statements made under the same harbor provisions of the U.S.

Yolanda Liu: Private Security's Relicitation Reform Act of 1995.

Speaker Change: Meanwhile, we will continue improving our sackman, Chad engaging user experience and enhancing that you who communities trustworthy news to grow and nurture our user base.

Yolanda Liu: These statements involve inherent risks and uncertainties. As such, actual results may be materially different from the views expressed today.

Speaker Change: We're also the walls are developed many initiatives leveraging our product capabilities and facilitating operating efficiency improvements across the broad.

Yolanda Liu: Other information regarding these and other risks and uncertainties is included in our public lighting with the U.S.

Wang Han: Or a just-in-now laws declined by 79.9% year-over-year to R&B 44.6 million, marking our lowest quarterly laws since our U.S, ideal. In the second quarter, we made significant strides in enhancing the Chu Hu's community trust worthiness and strengthening our court user experience. In addition to introducing an array of AI-Power products and engrossing common initiatives, we proactively refined commercial common distribution and meticulously tailored our services to meet the diverse needs of various users.

Mr. Julien: By fully leveraging our unique value proposition, we will love to whose roles and commercialization potential of driving a communist longterm sustainable development does concludes Mr. Julien remarks.

Wang Han: This concludes Mr. Zhou's remarks.

Yolanda Liu: Security and Exchange Commission and Hong Kong's stock exchange.

Yolanda Liu: The company does not assume any obligation to update any forward-looking statements, except as required under Act of the Law.

Wang Han: Now I will review the details of our second quarter financials.

Speaker Change: Now I'll review the details of our second quarter financials for a complete overview over second quarter turnaround for result, let's refer to our press release issued earlier today.

Wang Han: For a complete overview over second quarter tunnel and four results, let us refer to our crash release issued earlier today. Throughout the second quarter, we make significant strides in defining our core structure and optimizing operating efficiency. While maintaining disciplines, many and proactively pursuing high ROI across our business lines. We have tolerated our exploration of AI power technologies, substantially enhancing our product's services. As a result, we have achieved a lot of improvements in both close margin and now loss. Remarkably, this quarter's represents our lowest quarterly loss since our UISIQ. Our market services revenue for quarter was RMB 300 for four million compared with RMB 400 and 12.7 million in the same period up to 93.

Speaker Change: Throughout the second quarter, we made significant strides in your refining our cost structure and optimizing operating efficiency.

Speaker Change: While maintaining discipline in spending and proactively pursuing high our io across our business lines.

Wang Han: Zhang, as a result, our community remains vibrant and continues to grow, exhibiting positive trends across key user metrics, such as core user retention rates and daily user time spent. We expanded AI applications across our products and services during its quarter, aiming to provide users and clients within a has experience. In the late June, we officially launched Truple Jada, marking a significant milestone in our AI search initiatives. Since it's debuted on the PC platform, we have observed a promise increase in user engagement and market reputation, highlighting new growth opportunities for us.

Speaker Change: Accelerated our exploration of AI power technologies substantially enhancing our products and services.

Speaker Change: As a result, we achieved a notable improvement in both gross margin and adjusted net loss.

Speaker Change: Remarkably this quarters represents our lowest quarterly loss since our U S IPO.

Speaker Change: Our marketing services revenue for the quarter was RMB 304, 4 million compared with RMB $412 7 million in the same period of turnaround of free.

Wang Han: 50 client primarily reflects our deliberate ongoing requirements of service offerings to such a strategically focused on margin improvements. Pay membership brand new for the second quarter decreased widely by 3.7% over here to on B4132.7 million. We know that due to a margin of decline in our average brand new per subscribing members. However, our average number of monthly subscribing members grew by 4.7% over year this quarter, demonstrating the effectiveness of our user growth strategies and promotions. Location on training brand new for quarter was RMB 133.6 million compared with RMB 144.5 million in the same period up to 93.

Speaker Change: This decline primarily reflects our deliberate ongoing requirement of service offerings to such a strategically focus on margin improvement.

Wang Han: Throughout the second quarter, our laser focus on cornerstone verticals couple with enhanced support for content creators has led to significant improvements in the experiences of those users and content creators within our community. As of the end of June, the cumulative is as of content on Truple Rage 830.9 million, a 16.8% year-year increase. The cumulative number of content creators within that Truple Community grew by 12.5% to some before 0.9 million during the quarter.

Paid membership revenue for the second quarter decreased slightly by three 7% year over year to RMB $432 7 million.

Speaker Change: Due to a margin decline in our average.

Revenue per subscribing members.

Speaker Change: Our average number of modestly subscribing members grew by four 7% year over year this quarter, demonstrating the effectiveness of our user growth strategies and promotions.

Speaker Change: Vocational training around new for the quarter. It was RMB $133 6 million compared with RMB $144 5 million the same period of the 20th Street.

Wang Han: We continue to rise in a proportion of highly active user engagement content creation. To further bolster user engagement, Truple continued to foster rational, optimistic, in-depth discussions around prominent social issues and word events this quarter. For example, during the annual call call period, we strategically enhanced the community's support for call users by elevating the first-hand experiences shared by previous examines, optimizing search functionalities and refining recommendation algorithms. Accordingly, the volume of quality of the call call related answers was marked with three day and seven day classroom response rate experiencing double digit growth.

Wang Han: This decrease was mainly due to our strategic refining of our core business. Prioritizing self-operated programs that offers high margins and greater profitability. Our close profit was second quarter was RMB 556.5 million compared with RMB 562.1 million in the same period up to 93. Thanks to our enhanced operating efficiency, the gross margin has improved year-over-year for 7 consecutive quarters, reaching 59.6% at highest level since our U.S.

This decrease was mainly due to our strategic refining of acquired business prioritizing self operated programs and offers high margins and greater greater profitability.

Speaker Change: Gross profit for the second quarter was RMB $556 5 million compared with RMB $562 1 million in the superior opinion of three.

Speaker Change: That's true all where he has operating efficiency gross margin has improved year over here for seven consecutive quarters, reaching 59, 6% the highest level since our U S. IPO.

Speaker Change: Our total operating expenses for the quarter was RMB $740 4 million or $16 seven a decrease from RMB 889 point for a minute in the same period last year.

Wang Han: The search and user engagement and community interactions further solidified June's position as the most trusted platform for young people seeking guidance on pivotal live decisions, better in the lead-up to university or as they prepare to enter the workforce. We also implemented effective initiatives to dual users to our coverage of the Paris Olympics. Within a week of the Olympic opening on July 26, quantum views related to the event short to over 600 million with over 500 thousand discussions spanning topics such as science and technology, sociology, psychology and cultural arts.

Speaker Change: Selling and marketing expenses decreased by 20 point, 22.9% to RMB $417 million down from RMB, $540 6 million Imperial China industry.

Wang Han: Zhang, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Thank you.

Speaker Change: Reduction was primarily driven by more disciplined promotional spending and a decrease in personnel related expenses.

Speaker Change: Our research and development expenses for the quarter decreased by 11, 4% to RMB $209 3 million down from RMB 236 point accumulate in the same period also nicely.

Wang Han: Thanks to this effort, positive feedback from dual users on our high-quality contents continue to rise accompanied by a significant increase in user interactions. I wish daily engagements for VAU grew by nearly 40 percent year over year with the monthly average of upwards increasing by over 47 percent year over year and more than 13 percent coral fluid. As we progress in our development of the cutting edge technology, we consistently strive to push boundaries and expand applications scenarios.

Speaker Change: This reduction was primarily attributable to more efficient spending on technology called innovation.

Speaker Change: General and administrative expenses.

Speaker Change: RMB $114 1 million compared with RMB are hindered in 12 five minutes in the same period of time.

Speaker Change: Consol queued up.

Speaker Change: R R.

Speaker Change: GAAP net loss and non-GAAP net loss for the second quarter has bowl has narrowed substantially.

Speaker Change: Lazy imply 71, 1% and 79, 9% year over year, respectively.

Wang Han: Official launch of dual food Jedi in the late June marks a significant step in our exploration of AI power search functionality, dual food Jedi's deep integration with the Conquerators says it's a part from other AI Zhang. The majority of the con and powering Juhu Juddai's derived from Juhu's proprietary high-quality con and library, which allows users to trace counselors back to the origin of sources, explore more premium Q&A's within the community and directly connect with con and graders.

Speaker Change: As of June 30 ton on four of the company has cash and cash equivalents term deposits restricted cash and short term investment of RMB, five 1 billion compared with RMB five 5 billion, that's up to December 21st one I'm afraid.

Speaker Change: As we walk into our second half of 204, we will persist in our commitment to rigorously strategic execution driving closer to profitability.

Speaker Change: Same time, we work diligently explore innovative avenues to deliver enduring value to our shareholders.

Wang Han: We believe Juhu Juddai's unique ability to prioritize human elements and emphasize professional and authentic content that embodies collective humanism is especially valuable in an area increasingly dominated by AI-generated content. In July, Juhu Juddai's total visit increased by 430%, compared with June as we continue to leverage Juhu's self-developed LOM to refine Juhu Juddai's performance and user experience. By the end of July, 7-day user retention doubled compared with early July. Juhu Juddai's morey around responsibility also all performed in market peers, earning high praise from professionals.

Speaker Change: This concludes my prepared remarks, all of our financial performance for this quarter last turn the call over to the operator for the Q&A session.

Speaker Change: Thank you.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. In the interest of time, please ask one question for each time. If you have any follow-up questions, please go back into the queue.

Speaker Change: We will now begin the question and answer session.

Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: Is there any kind of your question has been addressed and you would like to withdraw your question. Please press Star then two.

In the interest of time. Please ask one question for each time.

Speaker Change: If you have any follow up questions. Please go back into the queue.

Wang Han: Moving into the second half of the year, we will continue to enhance our user experience on Juhu Juddai's PC platform throughout ongoing improvements in product features, algorithms and performance. To maintain it, we were sent officially to launch an upgrade Juhu Juddai tab on the Juhu app, which will effectively complement the desktop version. Juhu Juddai not only provides professional with effective two-based scenarios, but also with vast potential for exploration, user interaction and content creation through the power of the Juhu community.

Operator: At this time, we will pause momentarily to assemble our roster.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Vicky Wei: The first question today comes from Vicky Wei with City. Please go ahead. Thank you.

Speaker Change: The first question today comes from Vicky Wei with Citi. Please go ahead.

Speaker Change: CEO Glenn anytime there's a lot of people that are.

Speaker Change: Consequently, your gut telling you today, yes.

Wang Han: Over, we aim to reach a broader audience with regard to relying on its performance and reputation burden, extensive advertising and promotion. For effective strategic planning and execution, it is reflected not only by our growing user engagement and flourishing community, but also by our significant improved operating efficiency. In the second quarter, the further optimized operating efficiency across our business lines by leveraging AI technologies, propelling us towards our operational targets for this year.

Speaker Change: So Glenn you amazing quite pay a whole lot more about that no one knows which I'm going to go in Memphis.

Well remember that moved out of the team what did you say need yeah. Thanks management for taking my question I'm with management share some color about that so class achieving break even target. Thank you.

Wang Han: Dachuan Sha, Dachuan Sha, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, and then this is from Wang Han, Seppo of Chifu. Our profitability goes remain unchanged and resolute. We still plan to achieve a quarterly non-GAAP net profit on this fourth quarter, and our second quarter financial results fully validate our strong strategically planning and execution capabilities. After a single quarter of adjustments, we not only reduced our losses by streaming costs and expenses, but also recorded our lowest absolute quarterly loss thanks to our IPO. And from the current progress of the third quarter, our loss reduction work should also be more pressing.

Speaker Change:

Speaker Change: Uh huh.

Speaker Change: Oh, what happened I think Wendy.

Speaker Change: Well the union.

Speaker Change: Orient you watching them closely you need a hard to do with US how would you want to put in the Jo mill the traditions of what Youre seeing on each side.

Wang Han: Now, we'll love to delve into more details about the progress we achieved across our multiple business lines for the second quarter. First, our marketing services, free man and a pressure in the second quarter, was Raminu tolling R&B 304.4 million, decreasing by 16.7% year over year. However, I want to highlight that we've seen our marketing services, although our success is currently easterizing our defying during its adjustment period, both bread advertising and performance-based advertising exhibited robustly gross, increasing by 17% and 28% for 1% year over year, respectively.

Speaker Change: You basically put on hold them up with that she was in a place where they can create.

Speaker Change: Don't you do quizzing, a judiciary shall not shocking that the judiciary.

Thank you for your question. This is a one hand CFO of triple.

Speaker Change: Very profitability goals remain unchanged and the rest of it.

You plan to achieve our quarterly non-GAAP net profit on this.

Speaker Change: Fourth quarter.

Speaker Change: And our second quarter financial results fully validates our strong strategically our planning and execution capabilities.

Wang Han: This performance under course already affected my audition capabilities and substantial commercial potential of our high-value user base within the community. Across all the industries we cover, the IDN3C categories continue to lead in growth. Additionally, fluid and beverage, beauty, skincare, spores, and outdoor industries experience notable increases in the average water volume during the 6-1A shopping festival, by 17.4%, 14.1% and 13.1% respectively, compared with the same period of the last year. We were man-committed to delivering high-quality content that empowers our clients to drive their business growth, while also supporting meets your content creators with substantial commercial potential in achieving their financial growth.

Speaker Change: After a single quarter of adjustments, we not only reduced our.

Speaker Change: Lots of spy streaming costs and expenses, but also recorded our lowest absolute quarterly loss since ever I T O.

Speaker Change: I will send you do almost anything that I'd kind of mixing people enjoying I guess you'd be just you end up so you can see that.

Speaker Change: And from the car in person progressed, our best third quarter ever and loss reduction work should also be more pricing got places stay tuned.

Wang Han: So please stay tuned. Thank you, Vicky.

Speaker Change: Thank you Vicky.

Wei Qianxiang: The next question comes from Wei Qianxiang with CIC. Please go ahead.

Speaker Change: The next question comes from Wei Cheng Cheng with B I D. C. Please go ahead.

Wang Han: Zhang, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dahai Li, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Sha, Dachuan Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Zhang. In turn, this expansion encourages valuable user contributions with beneficiaries in erasing the community with high quality content and innovative operations as they share their insights and experiences. Moving forward, we will continue to strengthen our absolute advantage in specialized subject offerings. We will also utilize AI technology to enhance operating efficiency and accelerate our progress towards profitability.

Hey, Bonnie.

Speaker Change: Do you feel like you know in the nineties she is Glenn <unk>.

Speaker Change: Oh, Okay, Gotcha, who was that.

Speaker Change: In Changsha Chenzhou for I'll say on that.

Speaker Change: She thought she would be my hope would be true I used that philosophy chocolate and you and I also don't want Magic G by Sean Oh, that's cool.

Speaker Change: At this time I'll call you back.

Speaker Change: Oh got it kind of holds you guys show you'll have all ships in talent.

Speaker Change: Since management for taking my question My question Okay.

Speaker Change: The base how has she who manages to maintain a stable user base, that's gathering them come into a machine.

Speaker Change: And last question on Yahoo has such a calm management share the progress on that.

Speaker Change: Let's say you that matrix after that not chopped Yahoo, Japan, Hotbox management feel the potential come in Tri Nations. Thank you.

Yuan Zhou: The mattress after the launch of Chifu之打, how does the management feel the potential coming to our nation? Thank you. I want to answer this question. The first question.

Speaker Change: Okay.

Speaker Change: So while we've got icons of adventure Huh.

Speaker Change: Oh, well, that's what do you do.

Speaker Change: So it tells you that listen to us.

Speaker Change: Uh huh.

Speaker Change: As you know for the tier.

Speaker Change: Okay.

Yuan Zhou: This is from Chifu CEO Zhou Yuan. The proactive user strategy adjustments we have made over the past two quarters were all quality-oriented for archiving our core user experience. Qiong Liu, Gao Zhirang, Mingyong, Ji Sheng, He Xin, Khao, Shengge, Yuenin, Chaolue. As you mentioned, for our user base, the core is user retention improvement for us. And the user retention improvement is from the improvement of high quality content. And the core of the improvement of high quality content is to rely on in-depth content cultivation approach. I will explain a little bit more here. This in-depth cultivation approach has two meanings.

Speaker Change: Hum.

Joanne: Oh from cheerfully C O Joanne the proactive use their strategy adjustments, we have made over the past two quarters were all quality oriented.

Joanne: Prioritizing other core user experience.

And she's always say, well, you know who to call out, especially not just in the.

Joanne: Who knows what the T cells.

Joanne: You don't want to alternate season.

Joanne: So you got to know Neil.

Speaker Change: Do you want that show a concert I mean, once yourself, but it seems there's some good news on it.

Speaker Change: As you mentioned for average user base.

Speaker Change: Or is he was a retention improvement for us and the user retention improvement is from the improvement up high quality content.

Speaker Change: And the court all the increment up high quality content is to rely on in depth content cultivation operation approach.

Speaker Change: I'm sorry, what's the it seems that there's a something that's just hold out Tony I'm going to ask.

Speaker Change: Suddenly he leaves.

Speaker Change: The message is central to Neil.

Speaker Change: Well if this is helpful.

And when they go home.

Speaker Change: Thank you.

Speaker Change: I will explain a little bit more here.

Speaker Change: That's aimed at cultivation approach has too many one is in GAAP operation and the other is in depth content and so far is seem to be working well our user base is quite stable. Thank you for your.

Yuan Zhou: One is in-depth operation. And the other is in-depth cultivation. In-depth content. And so far, is saying to be working well; our user base is quite stable.

Yuan Zhou: Thank you for your question. I will continue to answer for your second question.

Speaker Change: Question.

Speaker Change: When I put that aside.

Speaker Change: Ireland.

Speaker Change:

Speaker Change: When I was playing on the job.

The key thing Pablo.

Speaker Change: Of course, you got no comments on that.

You gave us a little more licensing Uruguay, blah blah blah blah blah, so it all blood.

Speaker Change: Okay.

I will continue to answer for your second question are we successfully launched you put you down keep the platform at the end of June.

Yuan Zhou: We successfully launched Zhifu Zhida on PC platform as the end of June. And over the past period, our work has focused on zooming areas. The first, optimizing the model, and the second, upgrading and optimizing the end. The optimization of model has led to significant improvements in user retention, with significant increase in the number of high frequency users, or what we call heavy users.

Speaker Change: And over the past periods, where it has focused on two main areas.

Speaker Change: First optimizing the model and the second upgrading and optimizing the end.

Speaker Change: Hey, good morning, Joe.

Joe Who: Uh huh.

Joe Who: Hello, Joe.

Wang Han: In summary, our strong second-quarter performance showcases or understanding strategic planning and execution capabilities. As we move into the second half of the tournament four, we will remain confident in and committed to achieving quarterly profitability target. Meanwhile, we will continue improving our segments at engaging user experience and enhancing the global community's trust towards the needs to grow and nurture our user base. We will also show the ones who are AI-development initiatives in arranging all product capabilities and facilitating operating efficiency improvements across the broad. By fully leveraging our unique value proposition, we will further unlock to whose growth and commercialization potential of driving the company's long-term sustainable development.

Joe Who: Hum.

Chip: Chip with Hong Kong.

Speaker Change: It's almost all of them.

Speaker Change: It seems though that some of them.

Speaker Change: The optimization of model has led to a significant improvement.

Speaker Change: The retention a with a significant increase in the number of high frequency users or what we call. It heavy users.

Speaker Change: I think with Butler Yokohama.

That's a big piece of it.

Speaker Change: No you go ahead I'm throwing out the E. Two.

Speaker Change: Two quick ones one of them.

Speaker Change: Sedan population, that's supposed to know what I mean, that's just me.

Speaker Change: Are you talking about the subject of genius.

Wang Han: This concludes Mr. Zhou's remarks. Now I will review the details of our second quarter financials. For a complete overview over second quarter tunnel and four results, let us refer to our crash release issued earlier today. Throughout the second quarter, we make a significant strides in defining our core structure and optimizing operating efficiency. While maintaining disciplines, many and proactively pursuing high ROI across our business lines. We have tolerated our exploration of AI power technologies, substantially enhancing our product's services.

Hold on.

Yuan Zhou: This is the last question. As for the end optimization, we started by enhancing the functionality of our PC end, which is an important productivity scenario. And this work will continue for some time. Meanwhile, we are preparing to launch Zhigu Zhida, another mobile, and features of which are still in plans. The goal of this and enhancements is to reach for us to reach more users. The combination of model and optimization is translating into our user growth. Overall, we were seeing positive changes in terms of product usage, user time spent, and both next day and seven day user retention.

Speaker Change: So I've done a bunch of what some of the outcomes.

Yolanda Liu: Additionally, the matter we will discuss today will include both gap and non-gap financial measures for confirmation purpose only. For a definition of non-gap financial measures and a reconciliation of gap to non-gap financial results, please see the earnings release issued earlier today.

Speaker Change: Okay.

Speaker Change: As for the an optimization, we've started by enhancing the functionality of our P. C.

Yolanda Liu: Innovation, a webcast replay of this conference call will be available on our website at irdotrufoo.com.

And when she is an important productivity scenario and this work will continue for some time.

Wang Han: I will now turn the call over to Mr. Wang Han, our CFO, has placed go hat.

Speaker Change: Meanwhile, we are preparing to launch chip would you tie all of our mobile and feed herself, which are do implants.

Wang Han: Thank you, Elena.

Wang Han: Hello, everyone.

Wang Han: As a result, we have achieved a lot of improvements in both close margin and now loss. Remarkably, this quarter's represents our lowest quarterly loss since our UISIQ. Our market services revenue for quarter was RMB 300 for four million compared with RMB 400 and 12.7 million in the same period up to 93. 50 client primarily reflects our deliberate ongoing requirements of service offerings to such a strategically focused on margin improvements. Pay membership brand new for the second quarter decreased widely by 3.7% over here to on B4132.7 million.

So all of this and enhancements is to reach its for them for us to reach more users.

Wang Han: Thank you for joining Chu Hu's second quarter, 2024 earnings call.

Speaker Change: Most of them done.

Wang Han: I'm pleased to deliver today's opening remarks on behalf of Mr. Zhou Yuan, founder of Chairman and CEO of Chu Hu.

Joe Dahan: Some centralized Joe Dahan, yeah. When it comes out that's also I saw that one of those polishing.

Speaker Change: I'll, let someone else who does this home Uh huh.

Wang Han: We're pleased to report another strong quarter.

Speaker Change: I don't know when they'll come closer together okay.

Speaker Change: Okay.

Speaker Change: The combination of model N and <unk> optimization.

Speaker Change: Optimization is translating into argue that with.

Wang Han: We know that due to a margin of decline in our average brand new per subscribing members. However, our average number of monthly subscribing members grew by 4.7% over year this quarter, demonstrating the effectiveness of our user growth strategies and promotions. Location on training brand new for quarter was RMB 133.6 million compared with RMB 144.5 million in the same period up to 93. This decrease was mainly due to our strategic refining of our core business.

Speaker Change: Overall, what we're seeing positive changes in terms of that predict usage user time spent and that both next day and seven day user retention.

Yes.

Yuan Zhou: Of course, we are the most concerned about the combination of model and optimization. The other work is not important. For sure, right now our primary focus is on improving the experience for heavy users. The commercialization is not the priority at this moment. Thanks for your question.

Speaker Change: Oh I'm sorry.

Speaker Change: So going to the ICU.

Speaker Change: But he probably wont go to a T M.

Speaker Change: So how can we get something accomplished handlebars they don't yet.

Yes.

Speaker Change: And Ah for sure right now our primary focus is on improving the experience for a heavy users.

Wang Han: Prioritizing self-operated programs that offers high margins and greater profitability. Our close profit was second quarter was RMB 556.5 million compared with RMB 562.1 million in the same period up to 93. Thanks to our enhanced operating efficiency, the gross margin has improved year-over-year for 7 consecutive quarters, reaching 59.6% at highest level since our U.S. [inaudible] Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Thank you.

Speaker Change: And the commercialization if not their priority at this moment thank.

Speaker Change: Thank you Sachin Thanks for your question.

Thomas Chong: The next question comes from Thomas Chong with Jeffrey. Please go ahead. I will answer myself.

Speaker Change: The next question comes from Thomas Chong with Jefferies. Please go ahead.

Wang Han: In the second quarter, we have achieved robust improvements in operating efficiency, which is of course larger and raised by 5.8% at percentage points year-over to 59.6%.

Speaker Change: Thanks, a lot and congrats on all of its new Oh, well. So when does the playbook on how is that being done so.

Speaker Change: Hello, Mcnealy I'd pass it down when the rest of them I got some help on catching up with.

Speaker Change: So all of these elements they sometimes that's not you don't need to understand.

Speaker Change: Danielle This is Jason Mann of my Channel myself My question is about advertising.

Thomas Chong: My question is about a piloting. So our performance at and brand that had good performance during 6-1-8. So what's the driver's behind and what are our advantages? Thanks.

Speaker Change: All of that and Brent.

Speaker Change: Six one so what's the drivers behind what advantages.

Wang Han: I have a question for you. I will answer this question. Thank you for your question.

Speaker Change: Continuing to Oh, what else would actually win.

Speaker Change: Sure Who's showing yourself, you're not getting it.

Speaker Change: Shifting to Europe, our santal, so have your own groups and pipe. It goes out you're going to go with Jeff How are you doing.

Speaker Change: Thank you for your question that says outbound pupils CFO warhead, a twofold is becoming increasingly clear about it's commercial strength and expertise.

Wang Han: This is from Zhigu CFO Wang Han. Zhigu is becoming increasingly clear about its commercial strength and expertise. Specifically, in helping brands to build premium value with high-quality audience, I would like to share two practical cases. The first one is Zhigu Wang Zhu Mei, the first 6,000 yuan. The first 6,000 yuan has been provided with a full collaboration with media to achieve both positive word of mouth and a self-work refrigerator price over 60,000 yuan. Yuan Zhou. During this 618 shopping festival, Toshiba Premium flagship star-rated Ray Freight Raider achieved positive ROI through Zhuhu's first stop for new product purchases solution.

But typically in helping brands to build a premium value with high quality audience I like to share two practical cases.

Speaker Change: Do you believe you're not sure. If you will found who may be new alongside with other things yeah sure sounded like Kobe showdown shrunk control them some money.

Speaker Change:

Speaker Change: The first example of these two cases is our successful collaboration with media to achieve both positive word of mouth and self worth refrigerator priced the over 60000 yet.

Injured Das shouldn't Mcdonald's I do whereabouts agenda, and doing true Washington D. C and you get what she sounded that jumps out at you call them the gold gotcha.

Speaker Change: Joe you Couldnt jot down there and you know I feel like you've always seen him since he got tremendous all much higher partisan Jean Paul and Tom you can go to Colby wholesale down this whole model.

Speaker Change: During this 61 eight shopping festival Toshiba premium flagship.

Speaker Change: Slack shaped scar radius refrigerator achieved positive ROI.

Speaker Change: Through June 1st stop right, new product purchases solution by leveraging our high valued community and the users we focused on human centered design and advanced technology for high end home appliance.

Wang Han: By leveraging our high-value community and users, we focused on human-centered design and advanced technology for high-end home appliance. Successfully creating a differentiated discussion space for new products, achieving both positive for the mouth and the strong self.

Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speaker phone, please pick up your handset before pressing the keys.

Speaker Change: Separately, creating a differentiate eight it just got they've got shelf space for our new <unk>, achieving both positive word of mouth and it's dropped out.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. In the interest of time, please ask one question for each time. If you have any follow-up question, please go back into the queue.

Speaker Change: Lisa.

Initial since you don't they don't Pat do you want to be close to what you feel she doesn't want solidly on the bundle maybe vivo pucci.

Got it.

Operator: At this time, we will pause momentarily to assemble our roster.

Speaker Change: No change you should always hydrogen going what do I mean it.

That's helpful.

Wang Han: The second example is our Lighthouse project, IT collaboration, with the same; the Lighthouse of the community illuminates the warmth of the products. We help people promote the blue hearts AI accessibility features. This initiative combines social value with strong marketing results. The impact form topic gained over 1.3 million hundred thousand and over 40,000 shares. The video even received praise and a share from people's cheap marketing officer, generating significant buzz and positive feedback for both Brent and our community. These successful cases categorized by high value and strong word of mouth demonstrate that Zhuhu's strengths in professional discussion forum unlock the commercial potential of high-value users by becoming the center of trust for these audiences.

Speaker Change: The second example is a very and lighthouse projects I T collaboration with the same the lighthouse the community eliminate the warmth of the products. We help vivo promote that blue Hearts eight I am accessibility feature that's in Asia.

Vicky Wei: The first question today comes from Vicky Wei with city. Please go ahead. Thank you. Dachuan Sha, Dachuan Sha, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, and then this is from Wang Han, Seppo of Chifu. Our profitability goes remain unchanged and resolute. We still plan to achieve a quarterly non-gap net profit on this fourth quarter, and our second quarter financial results fully validates our strong strategically planning and execution capabilities. After a single quarter of adjustments, we not only reduced our losses by streaming costs and expenses, but also recorded our lowest absolute quarterly loss thanks to our IPO. And from the current progress of the third quarter, our loss reduction work should also be more pressing. So please stay tuned. Thank you, Vicky.

Speaker Change: It is combined social value with strong marketing itself.

Suddenly I thought he was went out to Hawaii by Central that Shaw, who they're shooting holding up when do.

Speaker Change: You actually push a bunch up ourselves to that.

Speaker Change: Shaking out for the other vivo industrial haynesville when it gets out of that.

Speaker Change: They came back looking back that others can't do without it.

Speaker Change: Okay.

Speaker Change: The APAC one hobby gains over a 1.3 million are great.

Speaker Change: Entre with video channels that are all time high record of.

Speaker Change: Our interaction with like and their favorite surpassing 100000 and over 40000 shares.

Speaker Change #100: The video even received praise and a share from vivo chief marketing officer, generating significant buzz and positive feedback for both breadth and depth of our community.

Wang Han: We're total operating expenses decreased by more R&B 140 million compared to same period last year, including a reduction of R&B 120 million in marketing expenses.

Is it cold they'll hold down $2, one neat Joe mutual who can get to this enjoying it all I'm telling you. We're sure got you Oh God Dream would definitely be I'm glad you told me that considering the huge room for sure people showing up at too sure sure way to find out about it.

Speaker Change #100: These successful cases categorized by high value and a strong word of mouth demonstrated that cheerful stress in professional discussion forum unlock the commercial potential up high value users.

Wang Han: Or a just-in-now laws declined by 79.9% year-over-year to R&B 44.6 million, marking our lowest quarterly laws since our U.S, ideal.

Speaker Change #100: By becoming the center of Trust for these audience. This is a mouse that natural path for commercialization.

Wang Han: This is the most natural path for Zhuhu's commercialization. Thank you for a question.

Thank you for question.

Chen Jun: The next question comes from Chen Jun with Guanghua Security. Please go ahead. What are the main drivers behind the growth of Zhuhu's AI user base? And how can we advise the outlook of this segment? Thank you.

Speaker Change #100: The next question comes from <unk>, Chen Zhou with Guang Clos Securities. Please go ahead.

Speaker Change #101: Hey, Glenn is in stock on hot judicial and achieve that Oh, we're doing tissue quite a useful thing who adopt Kathleen God awful thing neutral turns out well it should only official might move up shingles, Jay Poole for when I can see Oh, it's just the same kind of willing to you what are the main driver behind.

Wei Qianxiang: The next question comes from Wei Qianxiang with CIC. Please go ahead.

Speaker Change #100: Our crews offshore.

Speaker Change #101: You can base it on.

Speaker Change #101: How kind of way I cite the outlook of this segment. Thank you.

Speaker Change #102: Okay. If you will.

Speaker Change #102: Uh huh.

Wang Han: Huo Yuan Yi, Huo Yuan Gui Mo, Zhang Zhang, Huo Yuan Gui Mo, Zhang Zhang, Huo Yuan Gui Mo, Zhang Zhang. In terms of the user scale of Aberte members, as we mentioned previously, with the massive market beyond your pool community, we will continue to explore multiple channels to expand our user base. Firstly, the MAU of Yan Yan Stories app in July saw a year-over-year increase of more than 36 percent. Q2, we are in Lin Ming Hui Yuan. In the second quarter, our exploration of co-brand memberships and distribution channels further demonstrated the spillover effects of the Jufu Indian star's spread, with pay member growing year-of-year in this quarter.

Speaker Change #103: It wasn't done until I don't know who's going to usually you should probably grew more than doubling our presenter.

Speaker Change #104: Thank you for question that there's a problem with <unk>, who is CFO Uh huh.

Speaker Change #105: However, two drivers remain the gross AR art subscribing members and the increase in <unk>.

Speaker Change #106: Cleveland Green wash out and you don't want mature the shipyard division of truth, the toilet woman Jones with Deutsche Rudolph maintain some telling you who choose yeah, yeah sure sure sure. After I mean, you'll be treating them John talked a lot about this.

Wang Han: The mattress after the launch of Chifu之打, how does the management feel the potential coming to our nation? Thank you. I want to answer this question.

Speaker Change #106: I don't know.

Speaker Change #106: In terms of that that they use.

Wang Han: The first question.

Speaker Change #106: We're scouring all our team members.

Speaker Change #107: As we mentioned previously with a massive market be untruthful community will continue to explore multiple channels to expand our user base.

Yuan Zhou: This is from Chifu CEO Zhou Yuan. The proactive user strategy adjustments we have made over the past two quarters were all quality-oriented for archiving our core user experience. Qiong Liu, Gao Zhirang, Mingyong, Ji Sheng, He Xin, Khao, Shengge, Yuenin, Chaolue.

Firstly I'm are you outside of Union Saris App in July saw a year over year increase of more than 36%.

Wang Han: In the second quarter, we made significant strides in enhancing the Chu Hu's community trust worthiness and strengthening our court user experience.

Speaker Change #107: A few items are less meaningful you Oh, two dogs don't find someone that Huntsville, Eugene before me Julian angles your dog.

Speaker Change #107: Are you selling to our duffel Brooklyn grew more shallow than.

Speaker Change #107: Unions.

Speaker Change #107: In the second quarter, our exploration of a co brand memberships and the distribution channels fault or demonstrate at the spillover effects of virtue Fujian against our express with.

Speaker Change #107: With pay remember growing year in this quarter.

Wang Han: In addition to introducing an array of AI-Power products and engrossing common initiatives, we proactively refined commercial common distribution and meticulously tailored our services to meet the diverse needs of various users.

Yuan Zhou: As you mentioned, for our user base, the core is user retention improvement for us. And the user retention improvement is from the improvement of high quality content. And the core of the improvement of high quality content is to rely on in-depth content cultivation approach. I will explain a little bit more here. This in-depth cultivation approach has two meanings. One is in-depth operation. And the other is in-depth cultivation. In-depth content. And so far is saying to be working well, our user base is quite stable.

Speaker Change #107: And so also going down so it wasn't just your phone for were unchanged.

Speaker Change #107: Regarding our pool growth. The key is are embracing membership benefits when.

Daisy Chen: Q2, we have launched a premium membership that included privileges, such as audio books and redo dramas, with different Asia's pricing. Ordering this category has been steadily increasing. As the reputation and influence of a Jufu Indian story continue to spread, we have more product formats and member benefits based on this advantage, currently in development. So please stay tuned. Thank you for a question. As a reminder, if you would like to ask a question, please press star and one to answer the question to you.

Speaker Change #107: Well be doing twitched about Honeywell from school, one bogey changed in there they're trying to do when they're talking about these young people, who think that usually doesn't go.

Speaker Change #107: We have lunch our premium membership and that included our privileges such as <unk>.

Speaker Change #108: All your books and redo dramas with differentiation.

Speaker Change #108: Furniture Asia pricing.

Speaker Change #108: Otter in this category has been skylake increasing.

Speaker Change #109: And was it a covalent inhibitor naive them help them would you see all sorts of many things that hopefully I'm, saying, you're going to pay my illusion excuse me to that.

As the reputation and influence aperture for gas storage continue to express we have more product formats and a member benefit space on this advantage currently in development.

Speaker Change #109: Stay tuned.

Speaker Change #109: Thank you for your question.

As a reminder, if you would like to ask a question. Please press star one to enter the question queue.

Daisy Chen: The next question comes from Daisy Chen, with High-Tone International. Please go ahead. Q2, thank you for your question.

Speaker Change #109: The next question comes from Daisy Chen with Tyco International. Please go ahead.

Speaker Change #110: Oh, Hi, this is Mike.

Speaker Change #111: So oh, what's not long body cameras and declines at war, so Glenn anytime soon.

Daisy Chen: I would like to ask you a question. If you would like to ask a question, please press star and one to answer the question. My question is about the practitioner tree, and how do you think of the future of your self-operated part of this kind of disease?

So that's about a year with a clean when the hot weather.

Speaker Change #112: Now Uh huh.

Yuan Zhou: Thank you for your question. I will continue to answer for your second question. We successfully launched Zhifu Zhida on PC platform as the end of June. And over the past period, our work has focused on zooming areas. The first, optimizing the model and the second, upgrading and optimizing the end. The optimization of model has led to significant improvements in user retention with significant increase in the number of high frequency users or what we call heavy users.

Speaker Change #112: Absolutely.

Speaker Change #112: The acquirer.

Speaker Change #112: I see.

Speaker Change #112: It hasn't been that Nigel.

Speaker Change #112: Quite high school are cheaper.

That's nothing to break with my question. My question was about two Biomarkers you might see.

Speaker Change #113: How do you think all the two trials you are well.

Speaker Change #113: You could probably come up with me.

Daisy Chen: And to cancel it, we noted that the economy and the concept is relatively weak.

Speaker Change #115: Constantly Oh, we noted that the economy, you're absolutely right.

Wang Han: As you can see, is there an opportunity or a challenge before it goes? Dahai Li, Yolanda Liu, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, and favorable regulatory policies in the education industry have sustainably improved and performance and the market value of the companies in this sector, which positively influences our evaluation benchmarks.

Speaker Change #116: Hmm is now majority or a channel before you bought it.

Speaker Change #116: Okay.

Verbal plenty to do them, if they didn't come here to be that the ideal choice to them yet.

Speaker Change #116: So it's really it wasn't a yati ship should allow to Jade you know that should lead to no need to teach them. She wasn't it wasn't it.

Busy O: Thank you for your question busy Oh. This is the problem that you foresee F L y N.

Speaker Change #118: The external environment is certainly a significant part there are positive for our self operated vocational training business firstly from a fundamental perspective, the pressure on the employment environment has rapidly increased the demand for our professional or.

Yuan Zhou: This is the last question. As for the end optimization, we started by enhancing the functionality of our PC end, which is an important productivity scenario. And this work will continue for some time. Meanwhile, we are preparing to launch Zhigu Zhida another mobile and features of which are still in plans. The goal of this and enhancements is to reach for us to reach more users. The combination of model and optimization is translating into our user growth.

Speaker Change #118: Stopped skus and a comprehensive abilities.

Jim: You bet Jim.

Speaker Change #119: Jim Jones, who doesn't who you'll haul should do it sounded like it was I'm going to sort of get your 15 clusters, just you can't build it out to show to them.

Speaker Change #120: In fact, what did you guys aren't doing it yourself.

Speaker Change #121: Additionally, the stable and a favorable regulator a policies in the education industry has as.

Speaker Change #122: Sustainable improved and our performance and the market value of the companies in this sector are.

Speaker Change #122: Which positively influences our valuation basketball that benchmark.

Speaker Change #123: Yeah sure Jay patient definitely I'm Gonna go has showed infusion quite challenging.

Wang Han: This year, the primary goal for our vocational training business is to improve efficiency and accelerate loss reduction. We have swiftly addressed some underperforming courses and acquire subsidiaries, reallocating more resources to strengthen our core programs and expand into new disciplines. In short term, this might mean sacrificing some low quality revenue, but we have simultaneously benefited from realized gains and profit improvements. In terms of acquisition sites, we will continue to actively state suitable targets with high standards. Like the company can integrate it well with our community and have good operational and profitability levels. In long term, we believe that the synergy between vocational training business and our community will significantly empower this business segment.

Speaker Change #124: This year the primary goal for Alberta vocational training business is to improve efficiency and accelerate loss reduction.

Speaker Change #125: We gotta catch on Pingo, <unk>, plus with all of them are going to let's say.

Speaker Change #125: In June the usual question, what's easiest most pedestrian.

Speaker Change #126: She told me she genome voters, who sell them. Okay. So I'm sure the Swedish yourself when you go to teach them.

Speaker Change #126: We have swiftly adjust some underperforming cortez and acquire subsidiary.

Wang Han: Zhang, as a result, our community remains vibrant and continues to grow, exhibiting positive trends across key user metrics, such as core user retention rates and daily user time spent.

Yuan Zhou: Overall, we were seeing positive changes in terms of product usage, user time spent, and both next day and seven day user retention. Of course, we are the most concerned about the combination of model and optimization. The other work is not important. For sure, right now our primary focus is on improving the experience for heavy users. The commercialization is not the priority at this moment.

Speaker Change #126: Re allocating more resources to strengthen our core program and expand into new disciplines.

Wang Han: We expanded AI applications across our products and services during its quarter, aiming to provide users and clients within a has experience.

Yuan Zhou: Thanks for your question.

In short term this might not mean sacrificing some low quality properties, but we have seen a few of them.

Speaker Change #126: Penni asleep benefited from realized gains and a profit improvement.

Speaker Change #127: Single family home, hopefully it won't be a goddaughter 19 chips into a wholesale guilty.

Speaker Change #126:

Speaker Change #128: Well Jeanne Shaheen, it'll get hung in for Matt What would you have.

In terms of acquisition side, we will continue to actively stake a suitable targets with high standards.

Thomas Chong: The next question comes from Thomas Chong with Jeffrey. Please go ahead. I will answer myself.

Speaker Change #129: I like the company can integrate as well with our community and have a good operational and profitability levels.

Sometimes you know what I'm sensing a triple.

So yeah. So it's really I don't know Joe Yeah with that supposedly endorsed usual children. The Cook Covid Oswald I'll tell them you have done a fish on things in the funnel in Suzhou into households, Elysian are you sure.

Thomas Chong: My question is about a piloting. So our performance at and brand that had good performance during 6-1-8. So what's the driver's behind and what are our advantages? Thanks.

Speaker Change #130: And long term, we believe that yes, the synergy between vocational training business.

Wang Han: In the late June, we officially launched Truple Jada, marking a significant milestone in our AI search initiatives. Since it's debuted on the PC platform, we have observed a promise increase in user engagement and market reputation, highlighting new growth opportunities for us.

Speaker Change #130: And then our community well significantly empower this business segment in rapidly validating news in mind.

Wang Han: I have a question for you. I will answer this question. Thank you for your question.

Wang Han: In rapidly satisfying new demands, acquiring customer process and building strong reputation, ultimately translating into a competitive advantage in our unit economics model.

Speaker Change #131: Acquiring kasmer precisely and are building a strong reputation often mightily translating into a competitive advantage in our unit economics model.

Wang Han: This is from Zhigu CFO Wang Han. Zhigu is becoming increasingly clear about its commercial strength and expertise. Specifically, in helping brand to build premium value with high quality audience, I would like to share two practical cases.

Wang Han: Throughout the second quarter, our laser focus on cornerstone verticals couple with enhanced support for content creators has led to significant improvements in the experiences of those users and content creators within our community.

Wang Han: Thank you. Thank you for a question.

Speaker Change #131: Thank you. Thank you for your question.

Operator: That concludes today's Q&A session.

Speaker Change #132: That concludes today's Q&A session.

Wang Han: As of the end of June, the cumulative is as of content on Truple Rage 830.9 million, a 16.8% year-year increase.

Yolanda Liu: At this time, I will turn the conference back over to Yolanda for any additional or closing remarks. Thank you, operator. And thank you all once again for joining us today. Thank you all.

Speaker Change #132: At this time I will turn the conference back over to you Yolanda for any additional or closing remarks.

Speaker Change #133: Thank you operator, and thank you all once again for joining US today. If you have any further questions. Please don't hesitate to contact our IR team directly or T S and financial communications. Thank you all.

Wang Han: The cumulative number of content creators within that Truple Community grew by 12.5% to some before 0.9 million during the quarter. We continue to rise in a proportion of highly active user engagement content creation.

Wang Han: The first one is Zhigu Wang Zhu Mei, the first 6,000 yuan. The first 6,000 yuan has been provided with a full collaboration with media to achieve both positive word of mouth and a self-work refrigerator price over 60,000 yuan. Yuan Zhou.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Wang Han: To further bolster user engagement, Truple continued to foster rational, optimistic, in-depth discussions around prominent social issues and word events this quarter.

Speaker Change #133: Yeah.

Speaker Change #133: [music].

Wang Han: During this 618 shopping festival, Toshiba Premium flagship star-rated Ray Freight Raider, achieved positive ROI through Zhuhu's first stop for new product purchases solution. By leveraging our high-value community and users, we focused on human-centered design and advanced technology for high-end home appliance. Successfully creating a differentiated discussion space for new products, achieving both positive for the mouth and the strong self.

Wang Han: For example, during the annual call call period, we strategically enhanced the community's support for call users by elevating the first-hand experiences shared by previous examines, optimizing search functionalities and refining recommendation algorithms.

Wang Han: Accordingly, the volume of quality of the call call related answers was marked with three day and seven day classroom response rate experiencing double digit growth.

Wang Han: The search and user engagement and community interactions further solidified June's position as the most trusted platform for young people seeking guidance on pivotal live decisions, better in the lead-up to university or as they prepare to enter the workforce.

Wang Han: The second example is our Lighthouse project, IT collaboration, with the same, the Lighthouse of the community illuminates the warmth of the products. We help people promote the blue hearts AI accessibility features. This initiative combines social value with strong marketing results. The impact form topic gained over 1.3 million hundred thousand and over 40,000 shares. The video even received praise and a share from people's cheap marketing officer generating significant buzz and a positive feedback for both Brent and our community.

Wang Han: These successful cases categorized by high value and strong word of mouth demonstrate that Zhuhu's strengths in professional discussion forum unlock the commercial potential of high-value users by becoming the center of trust for these audience. This is the most natural path for Zhuhu's commercialization.

Wang Han: Thank you for a question.

Chen Jun: The next question comes from Chen Jun with Guanghua Security. Please go ahead. What are the main drivers behind the growth of Zhuhu's AI user base? And how can we advise the outlook of this segment? Thank you. [inaudible] In terms of the user scale of Aberte members, as we mentioned previously, with the massive market beyond your pool community, we will continue to explore multiple channels to expand our user base. Firstly, the MAU of Yan Yan Stories app in July saw a year-over-year increase of more than 36 percent.

Wang Han: We also implemented effective initiatives to dual users to our coverage of the Paris Olympics.

Wang Han: Within a week of the Olympic opening on July 26, quantum views related to the event short to over 600 million with over 500 thousand discussions spanning topics such as science and technology, sociology, psychology and cultural arts.

Wang Han: Thanks to this effort, positive feedback from dual users on our high-quality contents continue to rise accompanied by a significant increase in user interactions.

Wang Han: I wish daily engagements for VAU grew by nearly 40 percent year over year with the monthly average of upwards increasing by over 47 percent year over year and more than 13 percent coral fluid.

Chen Jun: Q2, we are in Lin Ming Hui Yuan. In the second quarter, our exploration of co-brand memberships and distribution channels further demonstrated the spellover effects of the Jufu Indian star's spread, with pay member growing year-of-year in this quarter. Q2, we have launched a premium membership that included privileges, such as audio books and redo dramas, with different Asia's pricing. Ordering this category has been steadily increasing. As the reputation and influence of a Jufu Indian story continue to spread, we have more product formats and member benefits based on this advantage, currently in development.

Wang Han: As we progress in our development of the cutting edge technology, we consistently strive to push boundaries and expand applications scenarios.

Wang Han: Official launch of dual food Jedi in the late June marks a significant step in our exploration of AI power search functionality, dual food Jedi's deep integration with the Conquerators says it's a part from other AI Zhang.

Wang Han: The majority of the con and powering Juhu Juddai's derived from Juhu's proprietary high-quality con and library, which allows users to trace counselors back to the origin of sources, explore more premium Q&A's within the community and directly connect with con and graders.

Wang Han: We believe Juhu Juddai's unique ability to prioritize human elements and emphasize professional and authentic content that embodies collective humanism is especially valuable in an area increasingly dominated by AI-generated content.

Operator: So please stay tuned. Thank you for a question. As a reminder, if you would like to ask a question, please press star and one to answer the question to you.

Wang Han: In July, Juhu Juddai's total visit increased by 430%, compared with June as we continue to leverage Juhu's self-developed LOM to refine Juhu Juddai's performance and user experience.

Wang Han: By the end of July, 7-day user retention doubled compared with early July.

Wang Han: Juhu Juddai's morey around responsibility also all performed in market peers, earning high praise from professionals.

Daisy Chen: The next question comes from Daisy Chen, with high-tone international. Please go ahead. Q2, thank you for your question.

Wang Han: Moving into the second half of the year, we will continue to enhance our user experience on Juhu Juddai's PC platform throughout ongoing improvements in product features, algorithms and performance.

Wang Han: To maintain it, we were sent officially to launch an upgrade Juhu Juddai tab on the Juhu app, which will effectively complement the desktop version.

Dahai Li: I would like to ask you a question. If you would like to ask a question, please press star and one to answer the question. My question is about the practitioner tree, and how do you think of the future of your self-operated part of this kind of disease? And to cancel it, we noted that the economy and the concept is relatively weak. As you can see, is there an opportunity or a challenge before it goes?

Wang Han: Juhu Juddai not only provides professional with effective two-based scenarios, but also with vast potential for exploration, user interaction and content creation through the power of the Juhu community.

Wang Han: Over, we aim to reach a broader audience with regard to relying on its performance and reputation burden, extensive advertising and promotion.

Dahai Li: Dahai Li, Yolanda Liu, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, and favorable regulatory policies in the education industry have sustainable improved and performance and the market value of the companies in this sector, which positively influences our evaluation benchmarks.

Wang Han: For effective strategic planning and execution, it is reflected not only by our growing user engagement and flourishing community, but also by our significant improved operating efficiency.

Dahai Li: This year, the primary goal for our vocational training business is to improve efficiency and accelerate loss reduction. We have swiftly addressed some underperforming courses and acquire subsidiaries, reallocating more resources to strengthen our core programs and expand into new disciplines. In short term, this might mean sacrificing some low quality revenue, but we have simultaneously benefited from realized gains and profit improvements. In terms of acquisition sites, we will continue to actively state suitable targets with high standards.

Wang Han: In the second quarter, the further optimized operating efficiency across our business lines by leveraging AI technologies, propelling us towards our operational targets for this year.

Wang Han: Now, we'll love to delve into more details about the progress we achieved across our multiple business lines for the second quarter.

Wang Han: First, our marketing services, free man and a pressure in the second quarter, was Raminu tolling R&B 304.4 million, decreasing by 16.7% year over year.

Wang Han: However, I want to highlight that we've seen our marketing services, although our success is currently easterizing our defying during its adjustment period, both bread advertising and performance-based advertising exhibited robustly gross, increasing by 17% and 28% for 1% year over year, respectively.

Dahai Li: Like the company can integrate it well with our community and have good operational and profitability levels. In long term, we believe that the synergy between vocational training business and our community will significantly empower this business segment. In rapidly satisfiating new demands, acquiring customer process and building strong reputation, ultimately translating into a competitive advantage in our unit economics model.

Wang Han: This performance under course already affected my audition capabilities and substantial commercial potential of our high-value user base within the community.

Wang Han: Across all the industries we cover, the IDN3C categories continue to lead in growth.

Dahai Li: Thank you. Thank you for a question.

Wang Han: Additionally, fluid and beverage, beauty, skincare, spores, and outdoor industries experience notable increases in the average water volume during the 6-1A shopping festival, by 17.4%, 14.1% and 13.1% respectively, compared with the same period of the last year.

Wang Han: We were man-committed to delivering high-quality content that empowers our clients to drive their business growth, while also supporting meets your content creators with substantial commercial potential in achieving their financial growth.

Wang Han: Zhang, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dahai Li, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Sha, Dachuan Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Zhang.

Operator: That concludes today's Q&A session.

Wang Han: In turn, this expansion encourages valuable user contributions with beneficiaries in erasing the community with high quality content and innovative operations as they share their insights and experiences.

Yolanda Liu: At this time, I will turn the conference back over to Yolanda for any additional or closing remarks. Thank you, operator. And thank you all once again for joining us today. Thank you all.

Wang Han: Moving forward, we will continue to strengthen our absolute advantage in specialized subject offerings.

Wang Han: We will also utilize AI technology to enhance operating efficiency and accelerate our progress towards profitability.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Wang Han: In summary, our strong second-quarter performance showcases or understanding strategic planning and execution capabilities.

Wang Han: As we move into the second half of the tournament four, we will remain confident in and committed to achieving quarterly profitability target.

Wang Han: Meanwhile, we will continue improving our segments at engaging user experience and enhancing the global community's trust towards the needs to grow and nurture our user base.

Wang Han: We will also show the ones who are AI-development initiatives in arranging all product capabilities and facilitating operating efficiency improvements across the broad.

Wang Han: By fully leveraging our unique value proposition, we will further unlock to whose growth and commercialization potential of driving the company's long-term sustainable development.

Wang Han: This concludes Mr. Zhou's remarks.

Wang Han: Now I will review the details of our second quarter financials.

Wang Han: For a complete overview over second quarter tunnel and four results, let us refer to our crash release issued earlier today.

Wang Han: Throughout the second quarter, we make a significant strides in defining our core structure and optimizing operating efficiency.

Wang Han: While maintaining disciplines, many and proactively pursuing high ROI across our business lines.

Wang Han: We have tolerated our exploration of AI power technologies, substantially enhancing our product's services.

Wang Han: As a result, we have achieved a lot of improvements in both close margin and now loss.

Wang Han: Remarkably, this quarter's represents our lowest quarterly loss since our UISIQ.

Wang Han: Our market services revenue for quarter was RMB 300 for four million compared with RMB 400 and 12.7 million in the same period up to 93.

Wang Han: 50 client primarily reflects our deliberate ongoing requirements of service offerings to such a strategically focused on margin improvements.

Wang Han: Pay membership brand new for the second quarter decreased widely by 3.7% over here to on B4132.7 million.

Wang Han: We know that due to a margin of decline in our average brand new per subscribing members. However, our average number of monthly subscribing members grew by 4.7% over year this quarter, demonstrating the effectiveness of our user growth strategies and promotions.

Wang Han: Location on training brand new for quarter was RMB 133.6 million compared with RMB 144.5 million in the same period up to 93.

Wang Han: This decrease was mainly due to our strategic refining of our core business. Prioritizing self-operated programs that offers high margins and greater profitability.

Wang Han: Our close profit was second quarter was RMB 556.5 million compared with RMB 562.1 million in the same period up to 93.

Wang Han: Thanks to our enhanced operating efficiency, the gross margin has improved year-over-year for 7 consecutive quarters, reaching 59.6% at highest level since our U.S.

Wang Han: [inaudible] Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha, Dachuan Sha Dachuan Sha, Dachuan Thank you.

Wang Han: We will now begin the question and answer session.

Operator: To ask a question, you may press star then one on your touchtone phone. If you are using a speaker phone, please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Operator: In the interest of time, please ask one question for each time. If you have any follow-up question, please go back into the queue.

Operator: At this time, we will pause momentarily to assemble our roster.

Vicky Wei: The first question today comes from Vicky Wei with city.

Vicky Wei: Please go ahead.

Vicky Wei: Thank you.

Wang Han: Dachuan Sha, Dachuan Sha, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, and then this is from Wang Han, Seppo of Chifu.

Wang Han: Our profitability goes remain unchanged and resolute.

Wang Han: We still plan to achieve a quarterly non-gap net profit on this fourth quarter, and our second quarter financial results fully validates our strong strategically planning and execution capabilities.

Wang Han: After a single quarter of adjustments, we not only reduced our losses by streaming costs and expenses, but also recorded our lowest absolute quarterly loss thanks to our IPO.

Wang Han: And from the current progress of the third quarter, our loss reduction work should also be more pressing.

Wang Han: So please stay tuned.

Wang Han: Thank you, Vicky.

Wei Qianxiang: The next question comes from Wei Qianxiang with CIC.

Wei Qianxiang: Please go ahead.

Wei Qianxiang: The mattress after the launch of Chifu之打, how does the management feel the potential coming to our nation?

Wang Han: Thank you.

Wang Han: I want to answer this question.

Wang Han: The first question.

Yuan Zhou: This is from Chifu CEO Zhou Yuan.

Wang Han: The proactive user strategy adjustments we have made over the past two quarters were all quality-oriented for archiving our core user experience.

Wang Han: Qiong Liu, Gao Zhirang, Mingyong, Ji Sheng, He Xin, Khao, Shengge, Yuenin, Chaolue.

Wang Han: As you mentioned, for our user base, the core is user retention improvement for us. And the user retention improvement is from the improvement of high quality content. And the core of the improvement of high quality content is to rely on in-depth content cultivation approach. I will explain a little bit more here.

Wang Han: This in-depth cultivation approach has two meanings.

Wang Han: One is in-depth operation.

Wang Han: And the other is in-depth cultivation.

Wang Han: In-depth content.

Wang Han: And so far is saying to be working well, our user base is quite stable.

Wang Han: Thank you for your question.

Wang Han: I will continue to answer for your second question.

Wang Han: We successfully launched Zhifu Zhida on PC platform as the end of June.

Wang Han: And over the past period, our work has focused on zooming areas.

Wang Han: The first, optimizing the model and the second, upgrading and optimizing the end. The optimization of model has led to significant improvements in user retention with significant increase in the number of high frequency users or what we call heavy users.

Wang Han: This is the last question.

Wang Han: As for the end optimization, we started by enhancing the functionality of our PC end, which is an important productivity scenario. And this work will continue for some time.

Wang Han: Meanwhile, we are preparing to launch Zhigu Zhida another mobile and features of which are still in plans.

Wang Han: The goal of this and enhancements is to reach for us to reach more users.

Wang Han: The combination of model and optimization is translating into our user growth. Overall, we were seeing positive changes in terms of product usage, user time spent, and both next day and seven day user retention.

Wang Han: Of course, we are the most concerned about the combination of model and optimization.

Wang Han: The other work is not important.

Wang Han: For sure, right now our primary focus is on improving the experience for heavy users.

Wang Han: The commercialization is not the priority at this moment.

Wang Han: Thanks for your question.

Thomas Chong: The next question comes from Thomas Chong with Jeffrey.

Thomas Chong: Please go ahead.

Thomas Chong: I will answer myself.

Thomas Chong: My question is about a piloting.

Wang Han: So our performance at and brand that had good performance during 6-1-8.

Wang Han: So what's the driver's behind and what are our advantages?

Wang Han: Thanks.

Wang Han: I have a question for you.

Wang Han: I will answer this question.

Wang Han: Thank you for your question.

Wang Han: This is from Zhigu CFO Wang Han.

Wang Han: Zhigu is becoming increasingly clear about its commercial strength and expertise. Specifically, in helping brand to build premium value with high quality audience, I would like to share two practical cases.

Wang Han: The first one is Zhigu Wang Zhu Mei, the first 6,000 yuan.

Wang Han: The first 6,000 yuan has been provided with a full collaboration with media to achieve both positive word of mouth and a self-work refrigerator price over 60,000 yuan.

Wang Han: Yuan Zhou.

Wang Han: During this 618 shopping festival, Toshiba Premium flagship star-rated Ray Freight Raider, achieved positive ROI through Zhuhu's first stop for new product purchases solution.

Wang Han: By leveraging our high-value community and users, we focused on human-centered design and advanced technology for high-end home appliance.

Wang Han: Successfully creating a differentiated discussion space for new products, achieving both positive for the mouth and the strong self.

Wang Han: The second example is our Lighthouse project, IT collaboration, with the same, the Lighthouse of the community illuminates the warmth of the products.

Wang Han: We help people promote the blue hearts AI accessibility features.

Wang Han: This initiative combines social value with strong marketing results.

Wang Han: The impact form topic gained over 1.3 million hundred thousand and over 40,000 shares.

Wang Han: The video even received praise and a share from people's cheap marketing officer generating significant buzz and a positive feedback for both Brent and our community.

Wang Han: These successful cases categorized by high value and strong word of mouth demonstrate that Zhuhu's strengths in professional discussion forum unlock the commercial potential of high-value users by becoming the center of trust for these audience.

Wang Han: This is the most natural path for Zhuhu's commercialization.

Wang Han: Thank you for a question.

Chen Jun: The next question comes from Chen Jun with Guanghua Security.

Chen Jun: Please go ahead.

Chen Jun: What are the main drivers behind the growth of Zhuhu's AI user base?

Chen Jun: And how can we advise the outlook of this segment?

Wang Han: Thank you.

Wang Han: [inaudible] In terms of the user scale of Aberte members, as we mentioned previously, with the massive market beyond your pool community, we will continue to explore multiple channels to expand our user base.

Wang Han: Firstly, the MAU of Yan Yan Stories app in July saw a year-over-year increase of more than 36 percent.

Wang Han: Q2, we are in Lin Ming Hui Yuan.

Wang Han: In the second quarter, our exploration of co-brand memberships and distribution channels further demonstrated the spellover effects of the Jufu Indian star's spread, with pay member growing year-of-year in this quarter. Q2, we have launched a premium membership that included privileges, such as audio books and redo dramas, with different Asia's pricing.

Wang Han: Ordering this category has been steadily increasing.

Wang Han: As the reputation and influence of a Jufu Indian story continue to spread, we have more product formats and member benefits based on this advantage, currently in development.

Wang Han: So please stay tuned.

Wang Han: Thank you for a question.

Operator: As a reminder, if you would like to ask a question, please press star and one to answer the question to you.

Daisy Chen: The next question comes from Daisy Chen, with high-tone international.

Daisy Chen: Please go ahead.

Daisy Chen: Q2, thank you for your question.

Daisy Chen: I would like to ask you a question.

Daisy Chen: If you would like to ask a question, please press star and one to answer the question.

Daisy Chen: My question is about the practitioner tree, and how do you think of the future of your self-operated part of this kind of disease?

Daisy Chen: And to cancel it, we noted that the economy and the concept is relatively weak.

Daisy Chen: As you can see, is there an opportunity or a challenge before it goes?

Dahai Li: Dahai Li, Yolanda Liu, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, Dachuan Sha, Dahai Li, Yuan Zhou, Kewei Chen, and favorable regulatory policies in the education industry have sustainable improved and performance and the market value of the companies in this sector, which positively influences our evaluation benchmarks.

Dahai Li: This year, the primary goal for our vocational training business is to improve efficiency and accelerate loss reduction. We have swiftly addressed some underperforming courses and acquire subsidiaries, reallocating more resources to strengthen our core programs and expand into new disciplines. In short term, this might mean sacrificing some low quality revenue, but we have simultaneously benefited from realized gains and profit improvements.

Dahai Li: In terms of acquisition sites, we will continue to actively state suitable targets with high standards.

Dahai Li: Like the company can integrate it well with our community and have good operational and profitability levels.

Dahai Li: In long term, we believe that the synergy between vocational training business and our community will significantly empower this business segment.

Dahai Li: In rapidly satisfiating new demands, acquiring customer process and building strong reputation, ultimately translating into a competitive advantage in our unit economics model.

Dahai Li: Thank you.

Dahai Li: Thank you for a question.

Yolanda Liu: That concludes today's Q&A session.

Yolanda Liu: At this time, I will turn the conference back over to Yolanda for any additional or closing remarks.

Yolanda Liu: Thank you, operator.

Yolanda Liu: And thank you all once again for joining us today.

Yolanda Liu: Thank you all.

Operator: The conference is now concluded.

Operator: Thank you for attending today's presentation.

Operator: You may now disconnect.