Q4 2024 Cheetah Mobile Inc Earnings Call
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I would now like to turn the conference over to Helen Xu Investor Relations for Cheetah Mobile. Please go ahead.
Speaker Change: Thank you operator.
Welcome to Cheetah mobile fourth quarter 'twenty 'twenty four.
Speaker Change: The call today.
Fu Sheng: Chairman and CEO, Mr Fu Sheng.
Speaker Change: Company Directory CFO, Mr. Thomas Chong fully imagine remark will conduct the Q&A session. Please note that this deal creates what is presented by an AI engine before we begin I refer you to the safe Harbor statements in our earnings release.
Speaker Change: Also applies to our earnings conference call today, as we will make forward looking statements at this time I would like to turn the conference over to our CEO and chairman Mr. Fu Sheng. Please go ahead.
Fu Sheng: Hello, everyone. Thank.
Operator: Good day and welcome to the Cheetah Mobile 4th Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then. Please note, today's event is being recorded.
Good day and welcome to the Cheetah.
Speaker Change: Thank you for joining us today.
Fu Sheng: In Q4.
You don't know about fourth quarter 'twenty 'twenty four earnings conference call.
Fu Sheng: Our total revenue accelerated robustly growing 42% year over year, and 23% quarter over quarter.
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Fu Sheng: We continue to make progress by consistently reducing non-GAAP operating losses quarter over quarter and.
After todays presentation, there will be an opportunity to ask questions.
Fu Sheng: And we expect our first quarter's non-GAAP operating losses to further decreased both year over year and quarter over quarter for the full year 2024, total revenue increased by 21% to RMB $807 million.
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Helen Jing Zhu: I would now like to turn the conference over to Helen Jing Zhu, Investor Relations for Cheetah Mobile. Please go ahead. Thank you, operator. Welcome to Cheetah Mobile's fourth quarter 2024 earnings conference call.
Speaker Change: I would now like to turn the conference over to Helen Jing, Zhu Investor Relations for Cheetah Mobile. Please go ahead.
Fu Sheng: And our non-GAAP net loss attributable to shareholders narrowed the year over year.
Speaker Change: Thank you operator, welcome to Cheetah mobile fourth quarter 'twenty 'twenty four.
Fu Sheng: Performance highlights our commitment to high quality growth and positions us strongly for a continued business turn it out in 2025.
Helen Jing Zhu: With us today are our company's chairman and CEO, Mr. Fu Sheng, and our company's director and CFO, Mr. Thomas Zheng.
Speaker Change: Call wait yesterday, our company's chairman and CEO, Mr Fu Sheng.
Fu Sheng: Our growth is driven not only by our enterprise facing AI and robotics businesses, but also by our legacy Internet business.
Thomas: The company's directory CFO, Mr. Thomas held for.
Unknown Executive: Fully in management's prepared remarks, we'll conduct a Q&A section.
Speaker Change: <unk>.
Fu Sheng: Which continues to deliver strong year over year revenue growth and margin expansion.
Speaker Change: Her remarks, well conduct a Q&A session.
Unknown Executive: Please note that the CEO's script will be presented by an AIA. Before we begin, I refer you to the State Power Statement in our earnings release, which also applies to our earnings conference call today, as we will make forward the Blue Team Statement.
Speaker Change: Note that the CEO, Craig what he presented by an AI.
Fu Sheng: Apps for PC and mobile users continue to address pain points effectively.
Speaker Change: Before we begin I refer you to the Safe Harbor statement before urban City also applies to our earnings conference call today I will make forward looking statements at this time I would like to turn the conference all of our team our CEO and chairman Mr. Chang. Please go ahead.
Fu Sheng: Flavoring excellent products experienced even in a mature market. We believe that this positive trajectory will continue into 2025.
Sheng Fu: At this time, I would like to turn the conference call over to our CEO and Chairman, Mr. Fu Sheng. Please go ahead, Mr. Fu. Hello, everyone. Thank you for joining us today. in Q4. Our total revenue accelerated, robustly growing 42% year-over-year and 23% quarter-over-quarter. We continue to make progress by consistently reducing non-GAFE operating losses quarter-over-quarter, and we expect our first quarter's non-GAFE operating losses to further decrease both year-over-year and quarter-over-quarter. For the full year 2024, total revenue increased by 21% to RMB807 million, and our non-GAFE net loss attributable to shareholders narrowed year-over-year.
Switching from the momentum of L. M S.
Fu Sheng: Entering 2025 with tremendous opportunities for.
Speaker Change: No.
Fu Sheng: Our robotics business L. M. S are playing a key role in transforming our service robotics industry spanning its total addressable market and laying the groundwork for service robots to evolve into general purpose physical AI a.
Speaker Change: Hello, everyone.
Speaker Change: Thank you for joining us today.
Speaker Change: In Q4.
Speaker Change: Our total revenue accelerated robustly growing 42% year over year, and 23% quarter over quarter.
Fu Sheng: A J curve, we are taking a measured strategic approach to growing our robotics business.
Speaker Change: We continue to make progress by consistently reducing non game operating losses quarter over quarter.
Fu Sheng: Accusing on product types that can generate sustainable revenue and profit aiming to become a top three service robot provider globally within three years.
Speaker Change: We expect our first quarter's non-GAAP operating losses to further decreased both year over year and quarter over quarter.
Speaker Change: For the full year 2024, total revenue increased by 21% to RMB 807 million.
Fu Sheng: Base robots are designed to solve real world the business environment.
Fu Sheng: Enabling data flywheel that will further drive product innovation and the L. L M advancement.
Speaker Change: And our non-GAAP net loss attributable to shareholders narrowed year over year.
Sheng Fu: This performance highlights our commitment to high-quality growth and positions us strongly for a continued business turnaround in 2025. Our growth is driven not only by our enterprise facing AI and robotic businesses, but also by our legacy internet business. which continues to deliver strong year-over-year revenue growth and margin expansion. Our apps for PC and mobile users continue to address pain points effectively, delivering excellent product experience even in a mature market. We believe that this positive trajectory will continue into 2025. The messaging from the momentum of LMS, Cheetah entered 2025 with tremendous opportunities for our robotic business.
Fu Sheng: At the same time, we continue to enhance our general purpose robotic capabilities by leveraging the most advanced I O L. M available in the market such as deep seek chat GPT and et cetera loan side, our self developed the L. M S happened.
Speaker Change: Performance highlights all commitment to high quality growth positions us strongly for a continued business turn around 2025.
Speaker Change: Our growth is driven not only by our enterprise facing AI and robotics businesses, but also by our legacy Internet business.
Fu Sheng: <unk> ability such as voice interaction capability and indoor autonomous our pension nations to the integration of physical AI over the long term.
Speaker Change: It continues to deliver strong year over year revenue growth and margin expansion.
Speaker Change: Our app for PC and mobile users continue to address pain points effectively.
Fu Sheng: Speaking of voice interaction capability building upon our success in voice enabled robots.
Speaker Change: Delivering excellent product experience.
Fu Sheng: We will be launching agents with in the coming days being the first to make our robots H M D.
Speaker Change: In a mature market.
Speaker Change: We believe that this positive trajectory will continue into 2025.
Fu Sheng: <unk> is our next generation voice interaction system for service robots Robotics Act.
Speaker Change: Switching from the momentum of a L. M S G.
Speaker Change: <unk> entered 2025 with tremendous opportunities for us.
Fu Sheng: Backed by our self developed AI agent technology.
Speaker Change: Body business L. M. S are playing a key role in transforming our service robotics industry.
Sheng Fu: LMS are playing a key role in transforming the service robotics industry. planning its total addressable market and laying the groundwork for service robots to evolve into general purpose physical AI.
Fu Sheng: <unk> robust two reason peloton.
Mostly verify information and call additional tools to complete tasks.
Speaker Change: I think its total addressable market and laying the groundwork for service robots to evolve into a general purpose physical AI.
Ancient OS will expand our total addressable market.
Sheng Fu: At J-Curve, we are taking a measured strategic approach to growing our robotics business. Focusing on product types that can generate sustainable revenue and profits, aiming to become a top three service robot provider globally within three years. Our wheel-based robots are designed to serve real-world business environments. enabling a data flywheel that will further drive product innovation and the LLM advancement. At the same time, we continue to enhance our general purpose robotic capabilities by leveraging the most advanced ILLMs available in the market, such as DeepSeq, CHAT-GPT, and etc. alongside our self-developed LLMS. capabilities such as voice interaction capability and indoor autonomous are functionation to the integration of physical AI over the long term.
Fu Sheng: Bill Taylor made AI agents to help ourselves our distributors sell robots.
Speaker Change: We are taking a measured strategic approach to growing our robotics business.
Fu Sheng: And to assist restaurant in supermarket owners ingredient customer and introduced promotions.
Speaker Change: Using all product types that can generate more revenue and profits aiming to become a top three service robot providers globally within three years.
Fu Sheng: You can also easily customize your robot.
Fu Sheng: Hi, Ah promoting your company's data.
Speaker Change: A real base robots I'd be Dion, just real world business environment.
Fu Sheng: The Cheetah robot, especially adaptable to your needs.
Fu Sheng: Example, a reception robot can Greek visitors.
Speaker Change: Enabling a data flywheel that were part of the joy of product innovation and the L. L M advancement.
Fu Sheng: And even help visitors find nearby coffee shops.
Fu Sheng: All by using voice commands.
Speaker Change: At the same time, we continue to enhance our general purpose with body capabilities by leveraging the most advanced I O L. M available in the market such as deep sea chats, GPT and et cetera.
Speaker Change: One of our distributors in China has already used to Asia or to sell Chita robots.
Fu Sheng: They uploaded product details images and videos into the system.
Speaker Change: Our self developed the O L M S happened.
Fu Sheng: And now the robots act as smart sales representatives, giving clear and detailed answers that sometimes surpass those of human sales staff.
Speaker Change: GAAP ability such as voice interaction capability and indoor autonomous our pension nation to the integration of physical AI over the long term.
Fu Sheng: It's easy to customize solution has led to higher sales and improved efficiency. We believe agent OS will strengthen our lead in voice enabled robots.
Sheng Fu: Speaking of voice interaction capability, building upon our success in voice enabled robots, we will be launching AgentOS in the coming days, being the first to make our robots agent. AgentOS is our next generation voice interaction system for service robots robots backed by our self-developed AI agent technology. It powers robots to reason, autonomously verify information and call additional tools to complete tasks. Agent OS will expand our total addressable market. We build tailor-made AI agents to help ourselves or our distributors sell robots. and to assist restaurants and supermarket owners in greeting customers and introduce promotions. You can also easily customize your robot by uploading your company's data, making the Cheetah robot especially adaptable to your needs.
Speaker Change: Thinking of voice interaction capability building upon our success in voice enabled robots we.
Speaker Change: We will be launching agents are worse in the coming days being the first to make a robot the agenda.
Fu Sheng: This improved product experience not only positions us to attract new customers.
Fu Sheng: I should also drive repeat purchases from our existing customer base.
Speaker Change: Oh it is.
Speaker Change: Our next generation voice interaction system for service robots robot backed by our self developed AI agent technology empowers robust tourism, how part mostly verified inflammation and call additional tools to complete tasks ancient O S will expand our total.
Speaker Change: Particularly in corporate so receptions exhibition centers public sector departments schools and universities.
Fu Sheng: Regarding our indoor autonomous driving capability.
Fu Sheng: As I stated in the past.
Fu Sheng: Gradually transitioning to lesion based solutions for our service robots vision.
Speaker Change: All addressable market, we'd be able to pay their made AI agents to help ourselves our distributors sell robots.
Fu Sheng: Vision, we help irobot better understand and navigate real world environments.
Speaker Change: And to assist restaurants supermarket owners ingredient customer and introduced promotions you can also easily custom.
Fu Sheng: Further in placing the data flying wheel for further product innovation and L. L M advancement.
Speaker Change: Customized there are a lot higher.
Speaker Change: Uploading your company's data.
Fu Sheng: In addition.
Fu Sheng: We are continuing to leverage <unk> AI to enable smoother collaboration between robots as well as between robots and humans.
Speaker Change: Making that she's a robot, especially adaptable to your needs.
Sheng Fu: For example, a reception robot can greet visitors and even help visitors find nearby coffee shops or by using voice commands. One of our distributors in China has already used AgentOS to sell Cheetah robots. They uploaded product details, images, and videos into the system. And now the robots act as smart sales representatives, giving clear and detailed answers that sometimes surpass those of human sales staff. This easy-to-customize solution has led to higher sales and improved efficiency. We believe AgentOS will strengthen our lead in voice-enabled robots. This improved product experience not only positions us to attract new customers, but should also drive repeat purchases from our existing customer base, particularly in corporate receptions, exhibition centers, public sector departments, schools, and universities regarding our indoor autonomous driving capability.
Speaker Change: For example, our reception robot can't grades visitors and even help visitors find nearby coffee shops, all by using voice commands.
Fu Sheng: Specifically, we use multimodal models to allow robots to follow users.
Speaker Change: One of our distributors in China has already used agent O S T cell Chita robots.
Fu Sheng: Even in crowded spaces.
Fu Sheng: And we're using enhanced AI algorithms for route planning.
Fu Sheng: It's ensuring that multiple robots can work seamlessly together in a factory.
Speaker Change: The uploaded product details images and videos into the system.
Speaker Change: And now the robots.
Fu Sheng: Our ongoing product innovations and enhancements.
Speaker Change: <unk> sales representatives, giving clear and detailed answers that sometimes surpass those of humans sales staff.
Fu Sheng: And with a strong focus on high quality after sale service and Cheetos established brand recognition have.
Speaker Change: It's easy to customize solution has led to higher sales and improved efficiency, we believe the agent O S wheel.
Fu Sheng: Consistently helped us capture market share from peers and drive sustained sales growth.
Speaker Change: And our lead in voice enabled robots.
Fu Sheng: Going forward, we will continue expanding globally by building local sales teams and distribution channels.
Speaker Change: This improved product experience not only positions us to attract new customers.
Fu Sheng: <unk> cheese Praveen experience operating outside China, following our success in South Korea and Japan.
Speaker Change: I should also drive repeat purchases from our existing customer base.
Speaker Change: Particularly in corporates, so receptions exhibition centers public sector departments schools and universities.
Fu Sheng: We have made solid progress in Europe.
Fu Sheng: After about 12 months in Italy.
Fu Sheng: He became the country's largest service robot provider.
Speaker Change: Riding our indoor autonomous driving capability.
Fu Sheng: Planning to open our European headquarters in Germany.
Sheng Fu: As I stated in the past, We are gradually transitioning to vision-based solutions for our service robots. Vision. We help our robots better understand and navigate real-world environments. further influencing the data flying real for further product innovation and LLM advancement. In addition, we are continuing to leverage AI to enable smoother collaboration between robots, as well as between robots and humans. Specifically, we use multimodal models to allow robots to follow users, even in crowded spaces. And we use enhanced AI algorithms for route planning, ensuring that multiple robots can work seamlessly together in a factory. Our ongoing product innovations and enhancements, combined with a strong focus on high-quality after-sales service and Cheetah's established brand recognition, have consistently helped us capture market share from peers and drive sustained sales growth.
Speaker Change: As I stated in the past.
Fu Sheng: Aiming to solidify our presence in the region.
Speaker Change: We are gradually transitioning to vision based solutions for our service robots.
Fu Sheng: It's important to note that the adoption of service robots in developed markets significantly lags behind China, presenting substantial opportunities, particularly in restaurants and fulfillment centers moving.
Speaker Change: Vision, we help irobot better understand and navigate real world environments.
Speaker Change: Fourth or in placing that they're not flying wheel for further product innovation and L. L M advancement.
Fu Sheng: Moving our AI application initiatives AI.
Fu Sheng: The ideas are AD based data service platform has been well received by enterprises, including some well known companies.
Speaker Change: In addition.
Speaker Change: We are continuing to leverage AI to enable smoother collaboration between robots as well as between robots and humans.
Fu Sheng: So continue to leverage the most advanced L. M S too rapidly find product market fit while in building applications with a small focus team for example, since deep seek became available our team quickly used it to transform my wechat official accounts into an AI agents.
Speaker Change: Specifically, we use multimodal models to allow robots to follow users.
Speaker Change: In crowded spaces.
Speaker Change: And we're using enhanced AI algorithms for route planning.
Speaker Change: It's ensuring that multiple robots can work seamlessly together in a factory.
Speaker Change: Our ongoing product innovations and enhancements.
Fu Sheng: A virtual <unk> to enter users inquiries.
Speaker Change: Combined with a strong focus on high quality after sale service and Cheetos established brand recognition.
Fu Sheng: <unk> seen a significant increase in user engagement and new followers as a result.
Speaker Change: Consistently helped us capture market share from peers and drive sustained sales growth.
Fu Sheng: <unk>, we have integrated deep seek to support our voice enabled robots.
Sheng Fu: Going forward, we will continue expanding globally by building local sales teams and distribution channels. Leaders in Chiefs Proving Experience Operating Outside China Following our success in South Korea and Japan, we have made solid progress in Europe. After about 12 months in Italy, we became the country's largest service robot provider. We are planning to open our European headquarters in Germany, aiming to solidify our presence in the region.
Fu Sheng: Allowing businesses to easily upgrade their robots and gain access to the deep seek model throw out devices a.
Speaker Change: Going forward, we will continue expanding globally by building local sales teams and distribution channels.
Fu Sheng: Our strategy for the AI application business is to build a product portfolio, while focusing on building killer apps in selected areas.
Speaker Change: Jeez Praveen expands operating outside China.
Speaker Change: Our success in South Korea, and Japan.
Speaker Change: We have made solid progress in Europe.
Fu Sheng: <unk> the most advanced L M S and our experience in developing apps.
Speaker Change: After about 12 months in Italy.
Speaker Change: Came the country's largest service robot provider yep.
Fu Sheng: We are making limited investments with a smaller team to drive innovations overall.
Speaker Change: We are planning to open our European headquarters in Germany Amy.
Fu Sheng: Overall, we achieved solid growth in 2024, but it is just the beginning of cheetos <unk> with.
Speaker Change: We need to solidify our presence in the region.
Sheng Fu: It's important to note that the adoption of service robots in developed markets significantly lags behind China, presenting substantial opportunities, particularly in restaurants and fulfillment centers. Moving our AI application initiatives, AIDS, our AI-based data service platform, has been well-received by enterprises, including some well-known companies. We also continue to leverage the most advanced LMS to rapidly find product market fit, while building applications with a small focus team. For example, since DeepSeek became available, our team quickly used it to transform my WeChat official account into an AI agent, a virtual fusion to answer users' inquiries. We have seen a significant increase in user engagement and new followers as a result.
Speaker Change: It's important to note that the adoption of service robots with you about our markets significantly lags behind China.
Fu Sheng: With animal spirit and the valuable lessons from operating as a public listed company, serving users and business globally.
Speaker Change: Presenting substantial opportunities, particularly in restaurants and fulfillment centers moving.
Fu Sheng: Am confidence in our team's ability to bring cheetah to even greater success.
Speaker Change: Moving our AI application initiatives.
Speaker Change: D S. Our AD based data service platform has been well received by enterprises, including some well known companies.
Fu Sheng: Thank you <unk> Hello, everyone on the call. Please note that unless stated otherwise.
Speaker Change: We also continue to leverage the most advanced L. M S too rapidly find product market fit.
Speaker Change: My remarks are in RMB terms.
Fu Sheng: In Q4, Veeva, so again accelerated year over year revenue growth.
Speaker Change: In building applications with a small focus team for example, since deep seek became available our team quickly used it to transform my wechat official accounts into an AI agents and virtual fushun.
Fu Sheng: Cheap quarter over quarter reduction in non-GAAP operating losses.
Fu Sheng: So.
Fu Sheng: <unk> the first quarter that we deal with our non-GAAP operating losses.
Speaker Change: To answer yes, there's inquiries.
Fu Sheng: Our year over year basis since Q4 2022.
Speaker Change: We have seen a significant increase in user engagement and new followers as a result.
Fu Sheng: Our strong performance in both topline and bottom line.
Sheng Fu: Additionally, we have integrated DeepSeek to support our voice-enabled robots, allowing businesses to easily upgrade their robots and gain access to the DeepSeek model through our devices. Our strategy for the AI application business is to build a product portfolio while focusing on building killer apps in selected areas by leveraging the most advanced LMS and our experience in developing apps. We are making limited investments with a smaller team to drive innovations.
Speaker Change: We have integrated deep seek to support our voice enabled robots, allowing.
Fu Sheng: Concentrate cheetah continuous improvement since Q1 2024.
Speaker Change: Allowing businesses to easily upgrade their robots and gain access to the E Cig model throw otherwise there's a.
Fu Sheng: In Q4 total revenue increased alright.
Speaker Change: Our strategy for the AI application business is to build a product portfolio, while focusing on building killer apps in selected areas I never hinge most advance L. M S and all experienced in developing apps.
Fu Sheng: 42% year over year.
Fu Sheng: 3% quarter over quarter.
Fu Sheng: $237 million.
Fu Sheng: Revenue from our Internet business increased by 49% year over year, a 19% call it.
Speaker Change: We are making limited investments with a smaller team to drive innovation.
Fu Sheng: <unk> over quarter accounting for.
Sheng Fu: Overall, we achieved solid growth in 2024, but it is just the beginning of Cheetah's true now with animal spirit and the valuable lessons from operating as a public listed company serving users and business globally. I am confident in our team's ability to bring Cheetah to even greater success.
Speaker Change: Overall, we achieved solid growth in 2024.
Fu Sheng: 68% of total revenue.
Speaker Change: It is just the beginning of cheetahs turn out with animal spirit and the valuable lessons from operating as a public listed company, serving users and business globally.
Fu Sheng: This segment remains strong.
Fu Sheng: <unk> cash costs supporting our initiative.
Fu Sheng: In robotics.
Fu Sheng: Revenue from <unk>.
Fu Sheng: Others.
Fu Sheng: Increased by 29% year over year and 30.
Speaker Change: I am confident in our team's ability to bring cheetah to even greater success.
Fu Sheng: 33% quarter over quarter.
Fu Sheng: If you didn't this segment our robotics business contributed about one third.
Unknown Executive: Thank you, Fusheng.
Speaker Change: Thank you <unk> Hello, everyone on the call. Please note that unless stated otherwise all.
Thomas Chong: Hello, everyone on the call. Please note that unless stated otherwise, all money amounts are in RMB2. In Q4, we once again accelerated year-over-year revenue growth and achieved quarter-over-quarter reduction in non-GAAP operating losses. Also, it represented the first quarter that we reduced our non-GAP operating losses on a year-over-year basis since Q4 2021. Our strong performance in both top-line and bottom-line demonstrates Cheetah's continued business improvement since Q1 2024. In Q4, total revenue increased by 42% year over year and 23% quarter over quarter. 237 million. revenues from our internet business increased by 49% year over year and 19%.
Other revenue.
Fu Sheng: Or about 10% of total revenue.
Speaker Change: Money amounts are in RMB terms.
Fu Sheng: Particularly in the quarter revenue from our robotics business outgrew other feed theme.
Speaker Change: In Q4 event, so again accelerated year over year revenue growth and achieved quarter over quarter reduction in non-GAAP operating losses.
Fu Sheng: <unk>.
Fu Sheng: Including all of our the Reprising agency, <unk> and multi cloud management services.
Speaker Change: Hey.
Fu Sheng: On a perfect ability side, we continue to manage our costs and expenses.
Speaker Change: We presented the first quarter that we reduced our non-GAAP operating losses on a year.
Speaker Change: Year over year basis.
Fu Sheng: Strategically investing in R&D payments and the leading sales professionals.
Speaker Change: Q4 2022.
Speaker Change: Our strong performance in both topline and Bottomline demonstrate she had her continuous improvement since Q1 2024.
Fu Sheng: Drive our robotics business forward.
Fu Sheng: That's all December 13th floor at 2024, we had nine.
Fu Sheng: 935.
Speaker Change: Q4, total revenue increased by 42% year over year, and 23% quarter over quarter to 237 million.
Fu Sheng: I am pleased.
Fu Sheng: An increase from 845 in 2023.
Fu Sheng: About 40% of our employees.
Speaker Change: Revenues from our Internet business increased by 49% year over year, and 19% quarter over quarter accounting for <unk>.
Fu Sheng: RMP tailored.
Fu Sheng: About 30% our used sales.
Fu Sheng: From a business perspective, we continue to optimize our costs and expenses and the focus our resources.
Thomas Chong: quarter over quarter, accounting for 68% of total revenue. This segment remains a strong cash cow supporting our initiative in AI and robots. Revenues from AI and others increased by 29% year over year and 33% quarter over quarter. Within this segment, our robotics business contributed about one third of AI and other revenues, or about 10% of total revenue. Notably, in the quarter, revenue from our robotics business outgrew other businesses in this sector. including our advertising agency business and multi-cloud management. On the profitability side, we continue to manage our costs and expenses while strategically investing in top R&D talent and leading sales professionals.
Speaker Change: 68% of total revenue.
Fu Sheng: On the robotics.
Speaker Change: This segment remains a strong cash call supporting our initiatives AI and robotics.
Fu Sheng: On a corporate level, our non-GAAP gross profit you can create.
Fu Sheng: 74% year over year at 32% quarter over quarter from 172 million in Q4.
Speaker Change: Revenues from others.
Speaker Change: <unk> by 29% year over year, and 33% quarter over quarter.
Fu Sheng: non-GAAP gross margin inquiry.
Speaker Change: In this segment, our robotics business contributed about one third.
Fu Sheng: 73% in the quarter.
Speaker Change: Other revenues or about 10% of total revenues.
Fu Sheng: 59% in the same period last year.
Speaker Change: Notably in the quarter revenue from our robotics business outgrew our therapies in this segment.
Fu Sheng: 68% in the previous quarter.
Fu Sheng: non-GAAP operating loss reduced by about.
Fu Sheng: 80 million quarter over quarter, and Nabokov 7 million year over year.
Speaker Change: Clothing, or there's a tightening agency business and multi cloud management services.
Fu Sheng: $42 million.
Speaker Change: Although a perfect ability side, we continue to manage our cost and expenses, while strategically investing in R&D talent.
Fu Sheng: That's the third anniversary of consolidating bijan, R&R and our investments in AI and robotics.
Fu Sheng: These.
Speaker Change: Leading sales professionals will drive our robotics business forward.
Fu Sheng: Our operating losses to continue reducing on both year over year and quarter over quarter basis.
Thomas Chong: to drive our robotic business forward. As of December 34, 2024, we had 935 employees, an increase from 845 in 2023. About 40% of our employees are R&D talent, and about 30% are in sales. From a business perspective, we continue to optimize our costs and expenses and focus our resources on AI and robotics. On a corporate level, our non-gap gross profit increased by 74% year over year and 32% quarter over quarter to 172 million in Q4. Nongkap Grok Martin, Inquisit 73% in the quarter. from 59% in the same period last and 68% in the previous quarter.
Speaker Change: That's all December 31st 2024, we had 935.
Fu Sheng: Our segment operating margin for our Internet business increased 15% in Q4.
Speaker Change: I am pleased.
Speaker Change: An increase from 845 in 2023.
Fu Sheng: From 9% in the year ago quarter.
Fu Sheng: <unk> percent in the previous quarter.
Speaker Change: About 40% of our employees.
Fu Sheng: Another highlight of the quarter is our strong cash flow generation.
Speaker Change: R&D talent and about 30% argued itself.
Fu Sheng: You generated about U S dollar.
Speaker Change: From a business perspective, we continue to optimize our costs and expenses and the focus our resources on pay.
Fu Sheng: <unk> 9 million in operating cash flow.
Fu Sheng: Growth in Q4, with a net cash position of <unk>.
Fu Sheng: The other $250 million. Additionally, we hold about U S dollar $100 million in long term investments on our balance sheet.
Speaker Change: Undergo orthotics.
Speaker Change: On a corporate level, our non-GAAP gross profit increased.
Speaker Change: 74% year over year at 32% quarter over quarter to 172 million in Q4.
Fu Sheng: We are confident in keeping our balance sheet is strong in particular, maintaining our strong net cash position going forward.
Speaker Change: non-GAAP gross margin increased.
Fu Sheng: Before opening the call for questions I want to emphasize our clear objective to drive growth.
Speaker Change: 73% in the quarter.
Speaker Change: 59% in the same period last year.
New growth by achieving breakeven and generating operating profit as soon as possible.
Speaker Change: 68% in the previous quarter.
Thomas Chong: Nangai Operating Law, Reviewed by About. 18 million quarter over quarter and about 7 million year over year.
Fu Sheng: Furthermore, we continue to carefully manage our net cash position as we have recognized in net earnings and cash position are the two key metrics that we measure on a program.
Speaker Change: non-GAAP operating loss reduced by about.
Speaker Change: 80 million quarter over quarter, and about 7 million year over year to $42 million.
Thomas Chong: In three years, mayoress will become a great senses. As we enter the anniversary of consolidating Beijing Aureus Star and our investment in AI and robotic business, We expect our operating losses to continue reducing on both year-over-year and quarter-over-quarter basis. A segment operating margin for our internet business increased to 16% in China. up from 9% in the year ago quarter and 10% in the previous. Another highlight of the quarter is our strong cash flow generation. generated about US dollar 39 million in operating cash. closing Q4 with a net cash position of about U.S. $250 million. Additionally, we hold about U.S.
Speaker Change: That's the under the anniversary of consolidating BG R&R and our investments in AI and robotics business, we expect our operating losses to continue reducing on both year over year and quarter over quarter basis.
Fu Sheng: Both operationally and financially.
Speaker Change: Hi, everyone.
Fu Sheng: Today's conference call.
Fu Sheng: During the Q&A session.
Fu Sheng: For today's call management will answer the question in Chinese.
Speaker Change: On the line to answer the question in Chinese I will.
Speaker Change: Our segment operating margin for our Internet business increased to 16% in Q4.
Speaker Change: With AI agent will translate the.
Speaker Change: Question. That's also a management comments into English in another line. Please note the translation for convenience purpose in the case of any discrepancy or match in Spain and in Chinese lift the well if you are unable to hear the Chinese translation.
Speaker Change: From 9% in the year ago quarter, and 10% in the previous quarter.
Speaker Change: Another highlight of the quarter is our strong cash flow generation you generated about U S dollar.
Speaker Change: 39 million in operating cash flow clothing, cool pool with a net cash position of about U S. Dollar $250 million. Additionally, we hold about U S. Dollar 100 million in long term investments on our balance sheet.
Speaker Change: <unk> Crazy English will be available on our IR bioscience with things that aren't working day.
Speaker Change: And now we are ready to take questions. Thank you so much.
Thomas Chong: $100 million in long-term investments on our balance. We are confident in keeping our balance sheet strong, in particular, maintaining our strong net cash position going forward.
Speaker Change: Thank you we will now begin the question and answer session to ask a question. Please press Star then one on your telephone keypad.
Speaker Change: We are confident in keeping our balance sheet is strong in particular, maintaining our strong net cash position going forward.
Speaker Change: We're using the speaker phone we'd ask you. Please please open your handset before pressing the keys.
Thomas Chong: Before opening the call for questions, I want to emphasize our clear objective to drive revenue growth by achieving breakeven and generating operating profit as soon as possible. Furthermore, we continue to carefully manage our net cash position, as we have recognized that earnings and cash are the two key metrics that we measure our progress, both operationally.
Speaker Change: Before opening the call for questions I want to emphasize our clear objective to drive revenue growth by achieving breakeven and generating operating profit as soon as possible.
Speaker Change: If at any time to the question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Furthermore, we continue to carefully manage our net cash position as we have recognized in net earnings and cash position are the two key metrics that we measure on a program.
Speaker Change: And today's first question comes from Thomas Chong of Jefferies. Please go ahead.
Speaker Change: Both operationally and financially.
Speaker Change: Okay.
Unknown Executive: Everyone, for today's conference call, now we'll start the Q&A section. Everyone, for today's call, management will answer the question in Chinese. I think all the analysts on the line will answer the question in Chinese. And we'll have an AI agent who will translate the analyst's questions and also management's comments into English in another line. Please note the translation is for convenience purposes only. In the case of any discrepancy, our management will say them in Chinese as well. If you are unable to hear the Chinese translation, I think a transcript in English will be available on our IRF website within seven working days.
Speaker Change: Please go ahead.
Speaker Change: Hi, everyone.
Speaker Change: Right.
Speaker Change: Please.
Speaker Change: Today's conference call novel and start the Q&A section I read length of todays call management will answer the question in Chinese I think all of that.
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Speaker Change: Hi.
Speaker Change: Thank you Sir.
Speaker Change: On the line.
Speaker Change: Bill.
Speaker Change: Sure.
Speaker Change: Question in Chinese I will have with AI agent will translate them that alan's questions. After management's comments into English in another line. Please note the translation he's worked for me in.
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Speaker Change: <unk> Crazy English will be available on our IR my side of the things that we're working day offering and now we are ready to take questions. Thank you so much.
Speaker Change: <unk> on CCAR.
Unknown Executive: Operator, now we are ready to take questions. Thank you. We will now begin the question and answer session. To ask a question, please press star then one on your telephone keypad. If you are using a speakerphone, we ask that you 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 2.
Speaker Change: So you got a woman.
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Speaker Change: Thank you we will now begin the question and answer session.
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Speaker Change: To ask a question. Please press Star then one on your telephone keypad.
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Speaker Change: If you were using a speaker phone we ask you. Please pick up your handset before pressing the keys.
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Speaker Change: The AI to the tissue agent.
Speaker Change: If at any time and the question has been addressed and you would like to withdraw your question. Please press Star then two.
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Speaker Change: It is this year Schinder Mushing IL 18 is it useful to them and you can either put it on those.
Unknown Executive: At this time, we will pause momentarily to assemble our roster. Ladies and gentlemen, please stand by for the English translation of the question and answer session. Please note that there may be a delay before the translation begins. There may also be a delay in between questions. Please do not disconnect.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
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Speaker Change: Ladies and gentlemen, please standby for the English translation of the question and answer session.
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Speaker Change: Please note that there may be a delay before the translation begins.
Speaker Change: Operator, please move to the next question. Thank you.
Speaker Change: There may also be a delay between questions. Please do not disconnect.
Speaker Change: Our next question comes from his opinions out ICB International. Please go ahead.
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Speaker Change: And to me the total Shanghai.
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Speaker Change: Ask the question. Thank you.
Zhang: Thank you. Our next question comes from <unk>, Zhang with GF Securities. Please go ahead.
Zhang: Thank you ladies and gentlemen, thank you went a little anti soon Joseph keeps inconvenience.
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Sheng Fu: And can these products achieve coordinated development with Cheetah's robot business? Well, the term ag is quite popular. We also believe that AI is on the verge of a breakout in various fields, which is our judgment. AI agents within enterprises will surely emerge in large numbers and become a mainstream way of applying AI within enterprises. we can better improve the efficiency of enterprises. Our company has also taken a lot of actions in this regard internally, and we also have some external products. Recently, we mentioned our so-called AI tutoring product, which can actually realize internal enterprise training completely through AI.
Speaker Change: <unk> excuse me one more finding the talent team had you saw amazing Chardonnay Super and then as you go into Saudi you can point to.
Speaker Change: And can these products achieved coordinated development with cheetahs robot business.
Speaker Change: No one have you finalized how about my question is about the D. C has given the demand of global last modeling.
Speaker Change: We can do.
Speaker Change: Do you think a random process as a condition to keep the scalability and lower costs onto Wednesday, I'll need to wait for some critical turning point. Thank you.
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Speaker Change: Well the term AB is quite popular yes.
Speaker Change: Yeah, Yeah, we will ensure that Guinea or Harrington Guinea on both our data when.
Speaker Change: Also believe that AI is on the verge of a breakout in various fields, which is our judgments AI agents within enterprises will surely emerge in large numbers and become a mainstream way of applying AI within enterprises.
Speaker Change: When the lesion Blue Mohammed Kalpana or Anthony I shall yesterday, Kanzius gencon bullish GT the shoe Hogan's Houma shipyard pushing tissue changes how is he understands is that say dashon women's city has.
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Speaker Change: We can better improve the efficiency of enterprises.
Speaker Change: Our company has also taken a lot of actions in this regard internally and we also have some external products.
Speaker Change: Today agency called down to either tissue to share much in China that you saw as yet.
Speaker Change: Recently, we mentioned, our so called AI teacher and products, which can actually realize internal enterprise training completely through AI. We also have some large partners or rather some of them have become our customers rigs.
Speaker Change: Please proceed.
Speaker Change: I'll say that for the next question. Thank you.
Sheng Fu: We also have some large partners, or rather, some of them have become our customers.
Speaker Change: Thank you. Our next question comes from <unk> Xu with founder Securities. Please go ahead.
Sheng Fu: Regarding the coordinated development with the robot business you just asked about, I think the robot business ultimately depends on the software's intelligent capability to determine whether the robot business can truly meet user expectations and reach the stage of commercialization or large-scale commercial application. I think that in the past year or so, Cheetah's efforts in the AI and large-language models can be well applied to the robot field, because ultimately their architectures are very similar. For example, as stated in our speech, we will release an agent OS, a robot operating system. It is actually based entirely on the current large-language models and the agent system, raising the intelligent level of robots to a new height.
Speaker Change: Regarding the coordinated development with a robot business you just asked about I think the robot business ultimately depends on the software intelligence capability to determine whether the robot bakers can truly meet user expectations and reached a stage of commercialization or large scale commercial.
Speaker Change: And how about guys like why intend to hold on to them.
Speaker Change: No I'm sure you'll come out there.
Speaker Change: Thank you for the questions I got no shortage here in Michigan.
Speaker Change: Sure.
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Speaker Change: Patient.
Speaker Change: Seeing that in the past year or so cheetos efforts in AI enlarge language model can be well apply to the roll off yield.
Speaker Change: That indenture yourself, but you know I came from Colombia, and Chile, she too.
Speaker Change: Not that you are baking in some items really leopoldo, Chile shipping of glaucoma promotional push them.
Speaker Change: Cause ultimately their architectures are very similar for example, as data in our speech, we will release an agent Alas a robot operating system. It is actually based entirely on the current large language models and the agent system raising intelligent level of robot.
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Speaker Change: One, which had only I'll say you'd glass Shandong financial journey.
Speaker Change: To our new heights with our previous experience in applying agents within the enterprise, including helping our customers with AI related work as well as our understanding of various model capabilities and even training models ourselves and will now be mutually dialogue and perfect that system.
Sheng Fu: Without our previous experience in applying agents within the enterprise, including helping our customers with AI-related work, as well as our understanding of various model capabilities and even training models ourselves, it would not be easy to develop and perfect this system. Although everyone is talking about DeepSeek these days, to actually make it useful, there are still quite a few detailed technical points to be achieved.
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Speaker Change: Although everyone is talking about these safety data to actually make a useful there are still quite a few detailed technical points to be achieved.
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Sheng Fu: I think this is an embodiment of the combination of our efforts in software agents and the robot business, that is, the OSD robot operating platform we are going to release.
Speaker Change: I think this is an embodiment of the combination of our efforts in software agents and the robot business, adding the OSB robot operating platform, we are going to release and shield.
Speaker Change: Okay.
Speaker Change: Yes, it absolutely goes Hunkele Chi Chinese food up elements I would say the Chi Tsang <unk> co Gen suited to the NIH will bring even more is achievable again pleasingly quote unquote leaching, hence you should see the see the.
Speaker Change: Okay.
Speaker Change: Just as a joke hibernia, how goods on tuition CFO he tissue Continentally could you put some color.
Sheng Fu: The third question, DeepSeek has promoted the development of the global large language model industry this year. Do you think AI already has the conditions to achieve large scale implementation at a lower cost? Or do we still need to wait for some key turning points? Well, okay. I think the emergence of DPC is indeed of great significance to the popularization of the entire AI industry. However, what I want to say is that the most crucial aspect of DPC is not just its low cost, but its top tier performance in the inference model within the industry. And this top tier performance is completely open, source and free, which enables every manufacturer to have a large language model with independent intellectual property rights.
Speaker Change: The third question.
Speaker Change: <unk> has promoted the development of the global large language model industry. This year.
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Speaker Change: Do you think a I already have the conditions to achieve large scale implementation at a lower cost or do we still need to wait for some key turning points.
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Speaker Change: I think the margins in PPE is in need of great significance to the popularization of the entire <unk> industry.
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Speaker Change: However, what I want to say is that the most crucial aspect of the disease is not just a low cost at a top tier performance in the inference model within the industry.
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Speaker Change: In these top tier performance is completely open source and free which enables every manufacturer to have a large languish model with independent intellectual property rights.
Speaker Change: So I'll take a CGI appreciated ponca I'd say, a number of Ngos shielding them again, the Sunday syndrome, Shashank Cook houses with a snake should need it about how budgets are demanded just again should be young.
Sheng Fu: So I have an opinion. I also mentioned this in an interview not long ago.
Speaker Change: So I have an opinion I also mentioned Bacon and injury, you know long ago, I said that perhaps in the future. There may be no don't call large language model company or there will be very few of them and all companies will become application companies adding.
Sheng Fu: I said that perhaps in the future, there may be no so-called large language model companies, or there will be very few of them, and all companies will become application companies. That is, how to enable users to truly solve their very practical problems will become a very crucial point this year. Due to the improvement in the logical capabilities of the inference model, we believe that the right time has arrived. So we think that for the entire AI industry, whether it's software applications or hardware applications, the conditions for achieving large scale implementation, as you asked, have been met.
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Speaker Change: How to enable users to truly solve a very practical problems will become a very crucial point this year.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: I'll tell you. Please move to the next question. Thank you.
Speaker Change: Due to the improvement in our logical capabilities of the insurance model, we believe that the right time has arrived.
Speaker Change: And as a reminder, the stars and wanted to ask a question. Our next question comes from Joanna <unk> with <unk>. Please go ahead.
Speaker Change: So we think that for the entire AI industry, whether it's software applications or Harley applications. The conditions for achieving large scale implementation. Thank you asked have been met.
Speaker Change: Oh, okay.
Speaker Change: Well she knows that.
Speaker Change: No.
Speaker Change: So doesn't that.
Speaker Change: Got it.
Sheng Fu: Of course, it will still take some time. This time is more about specific requirements and engineering implementation rather than the time for technical preconditions. So in this regard, we are very optimistic and confident. Therefore, both our robot products and internet products will focus on this technological mainline of AI and make every effort.
Speaker Change: Okay.
Speaker Change: Each one of them and you should go to.
Speaker Change: Of course, it will still take some time. This time is more about specific requirements and engineering implementation rather than the time for technical pre conditions. So in this regard we are very optimistic and confident.
Speaker Change: Okay.
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Speaker Change: Thank you Tricia.
Speaker Change: Yeah.
Speaker Change: Therefore, both our robot products and Internet products will focus on this technological mainline of AI and make every effort. Thank you.
Speaker Change: Yeah.
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Sheng Fu: The next question. With the rapid development of large-language model technology, the market space for wheeled robots is expanding rapidly. Which types of major companies do you think are likely to enter this track? Especially companies like EV manufacturers. Is it possible for them to enter the field of wheeled robots by leveraging their accumulation in hardware, manufacturing and intelligent technology? Do you think Cheetah's accumulation and advantages are sufficient to build a deep enough mold to resist potential competition from major companies? How do you view the changes in the future market competition pattern?
Speaker Change: Financially dining channel with Buckingham Ism gambler, who is not much of an issue now you guys are dotcom how position Nancy I'm wishing you mean, Pavel clearly may let's say non machine cannot joku meal, cigar and churn India demand to the.
Speaker Change: The next question.
Speaker Change: With the rapid development of large language model technology and market stage four wheeled robot is expanding rapidly.
Speaker Change: Which types of major company do you think are likely to enter this track.
Speaker Change: But it could be in a couple of things. This is a higher margin how should we should see the Shanghai was here. He is our <unk> carrier Moshi Moshi Moshi <unk> music.
Speaker Change: Especially companies like EV manufacturers is it possible for them to enter the field of wheeled robots by leveraging their accumulation in hardware manufacturing and intelligent technology.
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Speaker Change: How do you view that changes in the future market competition pattern.
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Sheng Fu: Well, currently, I think that for a rather long period, perhaps in the next two or three years, in my opinion, these major companies may not enter this field. For example, compared with the electric vehicle field, although wheeled robots have a promising future today, the market is still too small compared to that of electric vehicles. And the competition in the electric vehicle market itself is also extremely fierce. So I think that within the foreseeable two or three years, not many major companies should enter this market because this market is still in the early stage with a lot of investment.
Speaker Change: Well apparently.
Speaker Change: I think that for a rather long period, perhaps in the next two or three years in my opinion.
Speaker Change: Seeger tissue, just really I didn't see the two lead they say its on the Rsi Haynesville shale validation engine and having them go hybrid cube and countless either when communication Andy.
Speaker Change: These major companies may not enter this field for example, compared to weight them latching NATO field, although wheeled robots have a promising future today. The market is still too small compared to that of electric vehicles and the competition in the lateral Mako marketing southeast.
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Speaker Change: Also extremely fierce so I think that within the foreseeable two or three years not many major companies should enter this market because this market is still in the early stage with a lot of investments in fact last year, our major investment was in AI and robotics.
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Sheng Fu: In fact, last year, our major investment was in AI and robots. Perhaps in the long term development, major companies may enter. I think it comes down to That is, we need to seize this window period and go all out to build our own iterative system in the wheeled robot market, especially in this area. I don't think a single technical point can become a moat because with the open source of technology and the availability of various information today, it's difficult for technology to be a complete moat. Instead, it's about truly obtaining user recognition through your product and then having the ability to rapidly iterate according to user needs based on this recognition.
Speaker Change: Perhaps in the long term development major companies may enter I think it comes down to a focused study we need to seize this window period and go all out to build our own E series of system in the world the robot market, especially in these area.
Speaker Change: And figure out how to take that.
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Speaker Change: Don't think a single technical point can become a moat because with the old page source of technology and the availability of their information today is difficult for technology to be a complete mode.
Speaker Change: Oh, okay.
Speaker Change: Okay.
Speaker Change: Hmm.
Speaker Change: Operator please.
Speaker Change: Thank you.
Speaker Change: Thank you. Our next question comes from Amazon.
Speaker Change: Please go ahead.
Speaker Change: That is about truly obtaining user recognition through your potash and then having the ability to rapidly iterate. According to use a needs based on this resolution I think if we can see states opportunity window in the next two or three years and establish a concrete and rapid product.
Speaker Change: Oh go ahead, Glen <unk> with Humana equally I'll, let hilla.
Speaker Change: So we're glad he did.
Speaker Change: Well I don't know yet.
Sheng Fu: I think if we can seize this opportunity window in the next two or three years and establish a complete and rapid product iterative system from sales to R&D, that will be our real moat. And even when major companies enter at that time, there are still many detailed points that are difficult to replicate all at once.
Speaker Change: What he Nicky Zheng, England, all kind of digesting the.
Speaker Change: Susan.
Speaker Change: So he bought that way that he got Keith would tell you don't take that you shouldn't treat uncles today can you teach here Archie got champions <unk> system.
Speaker Change: At a range of systems from sales to R&D and it'll be a real node and even when major companies enter at that time. There are still many detailed points that are difficult to replicate all at once.
Speaker Change: She said when he didn't have a door hot rod absolutely dominate so Tim I would change anything that you can see the oceans you'd had to resign that Mega Panther.
Speaker Change: Let me give you an example.
Speaker Change: Some people ask me that each electric vehicle manufacturers already have self driving technologies volume equate for them to enter the robot field in fact, I'd say the problems are different.
Speaker Change: Mr <unk>.
Speaker Change: Infill quality it has that the amount of <unk> that engender cloudy the see the PMI Nungesser tablet order Yahoo.
Speaker Change: It <unk> take a P and us as a sofa demolition doses, how 'bout order. So it does take a kingdom virtually encounter ship set could hinder it actually can.
Speaker Change: Why because the chips are installed in the car may cause tens of thousands of yuan or the selling price of an entire role bodies just over 10000 Yuan.
Sheng Fu: I need to achieve indoor self-driving on a ship with much less computing power compared to them. In fact, the technical difficulty here does not lie in the visual framework, but rather in whether you can use such limited computing power to truly achieve reliable and autonomous indoor navigation. Right? In fact, the technical points are different.
Speaker Change: You will see that as hunting <unk> shoot downhole quit decently some goods that are marching shimon letting some kitchen, who kind of Idaho hartshorn in accomplishing that figure so Julien Shiga Chi Tung Jamba etcetera, its 18th zone now <unk> pseudo-code sanction hanging yonder to the fact that our hydrogen.
Speaker Change: Need to achieve indoor self driving them and ship with much less computing power compared to them.
Speaker Change: In fact, the technical difficulties here does non line of visual frameworks, but rather whether you can use such limited computing power to truly achieve reliable and autonomous indoor navigation.
Speaker Change: What you should see the deep secret the secrets onboard.
Speaker Change: Right in fact, the technical points are different.
Speaker Change: AI aging as it's hung at the assembly issues the phase out on how to take the.
Sheng Fu: An inappropriate example is that just because a PC manufacturer makes a small mobile phone doesn't necessarily mean it can do a good job. So I think in this era of rapid technological development, it still depends on your iteration speed and your focus in this field.
Speaker Change: And inappropriate example is that just because of PC manufacturer makes a small mobile phone doesn't necessarily mean, you can do a good job. So I think in this era of rapid technological development. It still depends on your iteration speed angle focusing this field. Thank you.
Speaker Change: Also <unk> image handling <unk> you wouldn't see me so you'll need among leisure.
Speaker Change: We are initiating two mushy I can't tell you when people see particular motion <unk> into motion capital. So what you typically see boards onwards, either ai's hung a ohio.
Sheng Fu: Thank you. With the increasing the number of high-quality models with reasonable cost, have you noticed that small and medium-sized companies are shifting from model training to model inference in terms of computing power usage? At the same time, which enterprises do you think are still continuously training their own large language models and maintaining a high investment in computing power?
Speaker Change: Consume in the <unk>. So we like that you do lose a deal to the tissue. If you don't want Savannah in contact with Jean <unk>, Paula <unk>, Paula hunting industry General Mcchrystal Yacoobi assumptions Yahoo did I get that.
Speaker Change: Are you in Calhoun tissue Napoca shooting the <unk> engine shipments or I should pass anyhow muscle Shoals, Shanghai Chang honea that she should that come out of that so it will mean in telco chia hung onto adopt Chinese wound that power to either the bullet note 19, Schatzel adult young at Germany, Sanofi I should probably be a sweeter than it use it on the easier one.
Speaker Change: With the increasing the number of high quality model.
Speaker Change: <unk> was reasonable cost have you noticed that small and medium sized companies are shifting from model training to modeling trends in terms of computing power usage.
Speaker Change: At the same time, which enterprises, Jay zinc, our skill continuously training their own launch language model and maintaining our high investment in computing power what impacting these trends have on sheet as future business development.
Speaker Change: Xiaomi, so wish I can shed anything Chang is that many of you in developments you've only issue.
Speaker Change: Certainly on the you go through your own findings Youll.
Sheng Fu: What impact do these trends have on Cheetah's future business development? Yes, regarding the question you just asked, I've always thought that small and medium sized companies don't need to do model training. In fact, large language models will ultimately become an infrastructure. This infrastructure capability will be accessible to everyone in the future. My view, which hasn't changed much from two years ago until now, is that in the future, large companies will train their own models because they think that without their own large language models, they may not have a secure boundary, right? Otherwise, they might be held back by others.
Speaker Change: <unk> also domain.
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Speaker Change: Page 18, Finjan lets say thats junkholders unpack kind of Shola <unk> syndrome, and Angola chip often door does either.
Speaker Change: Yes regarding the question you just asked I've always thought that small and medium.
Speaker Change: Don't wouldn't cheat.
Speaker Change: Sized companies don't need to do model training in fact large language models will ultimately be common infrastructure. This infrastructure capability will be accessible to everyone in the future.
Speaker Change: The hydrogel <unk> tell me your question or do you want <unk> change and your pushout Hamid needs out of what <unk> Hydro hydro and uncle, which you can use two hummus Yahoo.
Speaker Change: Susan Lucci N type to Shanda congratulate <unk> syndrome, Hudson tissue shall be shall push mail quota.
Speaker Change: My view, which hasn't changed much from two years ago until now is adding the future large companies will train their own models, because they seemed averaged out their own large language models. They may not have a secure boundaries right.
Speaker Change: Nick.
Speaker Change: <unk> between city of Archie I should we should see later <unk> syndrome patients accurate <unk>.
Speaker Change: And AI to alternative routes and he has an Oklahoma Leon Cushy younger.
Speaker Change: Otherwise they 90 held back by others.
Speaker Change: It's a channel mobility.
Sheng Fu: Besides, open source models will continue to rise. And as it seems now, right? I've always believed that the performance of open source models won't be inferior to so-called closed models. And this trend, I think, will become more and more obvious, because when computing power is not abundant, it will instead lead to resource-constrained innovation with more attempts and algorithms and other aspects. So ultimately, a kind of balance will be achieved. I think it's correct that many enterprises are now shifting from model training to inference, because in the future, the computing power of each enterprise will become a standard feature, just like human resources.
Speaker Change: <unk> open source models will continue to rise and as it seems now right.
Speaker Change: No shipyard definition window by pad.
Speaker Change: And that she wishes.
Speaker Change: She just shades either in the nuc and how does <unk> junior Winches Kelkoo. She ensures difficult in China that you can take that.
Speaker Change: I've always believed that the performance of open source models won't be inferior to so called closed models and this trend I've seen will become more and more obvious.
Speaker Change: Is it accomplishing.
Speaker Change: Should the Apache jail. So you should that ownership selling shows was mature in parallel a tailwind in shadow solar congratulations Johnny it'll be a hot a chance it wasn't should or shouldn't angle Pseudotsuga chart. GSL later calculate attrition within some either close to 500 somebody to say, though.
Speaker Change: Because when computing power is not abundant new items that need to resource constrained innovation with more attempts in algorithms and other aspects.
Speaker Change: So automatically a kind of balance will be achieved opinions correct that many enterprises are now shifting from model training to entrench because in the future. The computing power of each enterprise will become a standard features just like human resources.
Speaker Change: <unk> got high talent, just as say 10 homeland Jamestown Womanly AIA. So the agents have been telling you how to do that.
Speaker Change: G suite, that's useful go attack should've has actually human food and traditional elements Wuxi, who contraction.
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Sheng Fu: There will be a lot of work completed with computing power instead of relying solely on human labor.
Speaker Change: There will be a lot of work completed waste computing power instead of relying solely on human labor.
Sheng Fu: As for the impact on Cheetah's business, first, it's definitely changing our R&D model. We're already making extensive use of AI in aspects such as programming and design rather than the completely manual methods we used before. So our entire reliance on so-called professional and highly skilled personnel is decreasing. At the end of last year, we also established a R&D center in Shenzhen with the help of AI young people recruited in second and third tier cities like this can quickly develop strong problem solving abilities.
Speaker Change: As for the impact on Cheetos business.
Abbie: I'll say our maintenance to the next question. Thank you Abbie.
Speaker Change: <unk> is definitely changing our R&D model.
Speaker Change: Absolutely. Our next question comes from Ben Kai Hsiao with CIC see please.
Speaker Change: We're already making extensive use of AI in aspects such as programming and designs rather than a completely manual methods we use before.
Abbie: Go ahead.
Speaker Change: And when you kind of what does it mean since a majority cannot yeah, yeah, there's quite a surprise to me at least boats.
Speaker Change: We are like with your thoughts on routine course, you'll hear more sure that she has seen.
Speaker Change: So our entire reliance our so called the professional and highly skilled personnel is decreasing at.
Speaker Change: The whole notion that keeping shouldn't be confused triple T shirt.
Speaker Change: At the end of last year, we also established a R&D center in Shanghai.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Hum.
Speaker Change: With the help of AI young people recruiting in second and third tier cities like this can quickly develop strong problem solving abilities.
Speaker Change: I Wonder what your July reaching to the.
Speaker Change: Sort of BR Changeful about Yorkshire.
Speaker Change: No no no no what so somehow socially habitual Shan Shan dieticians or higher home, Colorado attached Hasan.
Sheng Fu: As for the impact on ourselves, I think there are several aspects, as I mentioned in the robot field will make AI agents are core focus. In fact, robots today are a very broad concept, right? There are humanoid robots, cleaning robots, heavy load robots, robot arms, etc. But our advantage lies in truly interacting with users and intelligently completing tasks. This is reflected in the AI-based OS we released. Second, essentially, all these internet applications will become AI-enabled and intelligent. We're now intensively transforming some of our traditional software to better present it to users in an AI-based way.
Speaker Change: For the impact on ourselves I think there are several aspects as I mentioned in a robust yield will make AIA James our core focused.
Speaker Change: As editor generalization TTM Wood, Oakland Kashi, you cannot you should <unk> see the figure tissue <unk> founder for that so it hasn't been oncology could actually more shiny apache's, Ohio Cantala Judy.
Speaker Change: In fact robust today are very broad concept right era humanoid robots cleaning robots terminal loan robots robotic arms et cetera.
Speaker Change: In Canada, LNG, Shanghai, <unk> Sounder sounder take a cookbook lots isn't a little challenge to them.
Speaker Change: Ladies and achieving food or music anything there shouldnt wait to the TGF with Abu quote Unquote call gone I'd say it'd be Jr. Jean <unk> <unk> from an angle cdos within channel.
Speaker Change: On our advantage lies in truly interacting with users and intelligently completing tasks.
Speaker Change: This is reflected in the AI based OSB release.
Speaker Change: So it's again, Sean with each other.
Speaker Change: Second essentially all of these internet applications will become AI enabled and intelligent we're now intensively transforming some of our traditional software to better presented to users in an AI based way so.
Speaker Change: You'll use it if I'm wishing tissue. This I'm sure we'll Miss your agent Ali Yeah sure. So you know a minimum wage is a T antigen.
Speaker Change: Penetration of intelligent myeloma Shadow <unk>, just show them their only say in telco to Jedi account year about call. It <unk> sound Laetitia and shows how <unk> could be ciena be changing alco, you'll be out I believe him what his hometown Woman-to-woman Taser deal, which enabled <unk> Zika.
Sheng Fu: So I think Regarding the progress of large language models such as DeepSeek V3 and R1, how do you view the impact of the introduction of these models on the competitive landscape of AI applications? How will Cheetah utilize these technologies to drive the company's development in the next few quarters, especially to enhance product competitiveness? More or less, I don't know if you guys noticed the day before yesterday, DeepSeq upgraded its v3 version again. We've just tested this latest version. In fact, its coding ability is on par with that of the top-notch cloud-based coding. And in many aspects, its performance is similar to that of those closed-up source and even page-large language models.
Speaker Change: I think.
Speaker Change: Six of them.
Speaker Change: And you guys are a cheat sheet Asia Shire Foundation, so that you know how in the heck out of cigarettes JT.
Speaker Change: Sure so on.
Speaker Change: Don't kill actual minimally.
Speaker Change: Regarding the progress of large language models, such as <unk> and <unk> are one how do you view the impact of the introduction of this model on the competitive landscape of AI application <unk>.
Speaker Change: In Canada and functional Zhisheng Esher dollar you go could you quantify that in a scenario.
Speaker Change: Yeah.
Speaker Change: Such as yet.
Speaker Change: Please move to the next question. Thank you.
Speaker Change: Powell Jita utilize these technologies to drive the company's development in the next few quarters.
Speaker Change: Of course, our next question comes from singer Li with where we are in Securities. Please go ahead.
Speaker Change: Actually to enhance product competitiveness.
Speaker Change: Okay.
Speaker Change: Claims in the La Negra or challenge from Georgetown should stay about initiating a year with Angelo Gordon.
Speaker Change: China showed signs of English, which is a great challenge for which you should get there.
Speaker Change: More or less I don't know if you guys noticed.
Speaker Change: Or should you flew in day to day and gave us easier and you were showing hello.
Speaker Change: The day before yesterday yesterday D C upgraded eight dmitry bearish on again, we've just tested this latest version.
Speaker Change: Well, Josh it sounds great.
Speaker Change: Sure.
Speaker Change: They <unk>, how could I wouldnt Halo, just choice hydrogen count tissue women's indemnity chance or does not.
Speaker Change: In fact with coding ability is on a par with that of the top large cloud based coding.
Speaker Change: Yeah on lymphoma, and tissue hygiene, and Charlotte never download how many you guys you said youre in telco and I'd say the telco Javier you can match the needs of our tissue woman.
Speaker Change: And in many aspects is performance was similar to that of those closed source even paid large language models.
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Sheng Fu: So in terms of the impact on the competitive landscape, I think in the foreseeable future, the innovation of DeepSea will continue. The competition in the performance of large language models will become even more intense. Eventually, only a few manufacturers will remain in the competition for large language models, and the vast majority of companies will shift towards the development of AI applications.
Speaker Change: So in terms of the impact on the competitive landscape I think in the foreseeable future innovation of HPE will continue.
Speaker Change: The competition in the performance of launch language models will become even more intense.
Speaker Change: Actually only a few manufacturers will remain in the competition for large language model and the vast majority of companies will shift towards the development of AI applications. Also I think this is a significant boost to the AI startup ecosystem in China.
Speaker Change: Tricia pull our suite of security at AGL and Buda.
Speaker Change: <unk>, Massachusetts kicked him I'm sure that you really need the beautiful <unk> that you've been watching you should say it says on lending shatter in ship Emlen Youll be women Asia demand kind of Kimball Museum Amazon machine.
Sheng Fu: Also, I think this is a significant boost to the AI startup ecosystem in China. Because previously, if you were starting an AI business in China, there was indeed a problem. When developing applications, you couldn't use those top tier models. But now, the experience with this model is almost the same as that of top-tier models. So I think this will have very positive factors for this wave of AI startups in China.
Speaker Change: <unk> Hoffmann, Google searches users should use to retire the eagle Fone, yet now the challenge they've got just you know I would say.
Speaker Change: Because previously you were stocking in AI business in China, There was indeed a problem.
Speaker Change: When developing applications, including use those top tier models.
Speaker Change: Thanks, Sandro Mcdonnell Aegean OSC, Hunan, how quickly they come from either in <unk>, Ohio, which you should take that order and not amortization Pasha have little suitable financing refi Amy mentioned, yeah, how should we or how should we look at a case that some of these issues. So I don't want to rehash. This hangzhou, which as you can see this is a huge.
Speaker Change: And now experienced with this model is almost the same as that of top tier model.
Speaker Change: So I think this will have very positive factors for this wave of AI start ups in China.
Sheng Fu: How will we use this technology to drive the company's development in the next few quarters? As I mentioned just now, we've been working in the robot field for several years. We've always attached great importance to the interaction aspect. We've developed a voice interactive robot which can listen to your commands and perform some actions. Frankly, at that time, due to the industry-wide technological ceiling, it was difficult to achieve a satisfactory voice interaction experience in a public, noisy, and crowded environment. We could only achieve satisfaction in some very specific vertical field. For example, when we provided the voice technology for Zhang Yixiao, a speaker at the beginning, we could only achieve satisfaction in a personal environment for limited tasks, like playing songs.
Speaker Change: We use this technology to drive the company's development in the next few quarters.
Speaker Change: Nancy is a cyclically show a woman you can click through holiday changes is it yet a pseudo it doesn't appear in how your language anything you did I hear that you announced today and you should presented Nashville Hot and yes.
Speaker Change: As I mentioned, just now listing working in a robust fields for several years, we've always attach great importance to the interaction aspect, we've developed avoid interactive robots, which can listen to your commands and perform some actions.
Speaker Change: We are in health care, right and ensure that Johan you push it was initially on tissue in Chicago, how much hydrogen palmgren initial tissue GM, which should create some comment that you said you should have a mcdonald's or a teacher highlight you shouldn't make the Sydney.
Speaker Change: In the handout that each bank analyst <unk> border since you Selim, Santa just as eager punto hottest Santa.
Speaker Change: But frankly at that time due to the industry wide technological seem range. It was difficult to achieve a satisfactory voice interaction experience in a public noisy and crowded environment.
Speaker Change: Canadian.
Speaker Change: Then she didn't plant Saddam Hussein <unk>, neither cahaba and how shall I can't remember, who want meal down Asia in shipyard Hydroquinone IMU roughly integration when you consolidate in human attention as our suggestions and shoot up within its own book originating shallow let's see the desire.
Speaker Change: We could only achieve satisfaction in some very specific vertical field. For example, when we provided the voice technology for Xiaomi Challis feature at the beginning we could only achieve satisfaction in a personal environment for limited cash by playing songs.
Speaker Change: Carry markdown to Sheila <unk> with the.
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Speaker Change: Shifting way how should we harmony so that it is how much of that figure should you the filler and should do women she'll jugal bounds with Icf's Fraser of women within the Chi.
Sheng Fu: And now, with the improvement brought by large language models, not only in voice recognition, but also with the addition of multi-modal recognition in our latest AI-enabled OS, combining vision, voice, and other perceptions, both we and our agents using it feel that the interaction experience can be close to that of interacting with a real person. It can truly address many user issues. There's also a technical point called wake free, that is now for robots, you don't need to call their names. As soon as you approach, it can interact with you actively. This kind of experience was almost non-existent on almost also called robotic devices before.
Speaker Change: Now we can improvement brought by large language models not only in voice recognition, but also with the addition of multilevel recognition in our latest AI enabled away.
Speaker Change: She and attrition.
Speaker Change: Which actually I wanted to get tissue that sunoco around here pages is a butcher devotedly intention how tissue.
Speaker Change: Envision voice and the other perceptions, both we and our agents using AD deal happens interaction experience can be close to that of interacting with a real person who can truly address named user issue.
Speaker Change: Is it.
Speaker Change: Thank you operator.
Speaker Change: The next question.
Speaker Change: Yeah, that's right.
Speaker Change: The first question.
Speaker Change: There is also a technical point called weight free that is now far robots, you don't need to call. Their names as soon as you approach. He can interact with you actively.
Speaker Change: Please press Star then one.
Our next question comes from Bernstein.
Speaker Change: Global Please go ahead.
Speaker Change: Although as I said by anytime now with him when he was asked you know.
Speaker Change: Kendall recipe unbiased, though about the ball down the S E T.
Speaker Change: This kind of experience was almost nonexistent on almost all so called robotic devices before.
Speaker Change: Yeah.
Speaker Change: So as I heard the whole plasma get bogged down you're doing some weight.
Sheng Fu: So I think this not only improves the experience, but also enables this type of robot to start being applied on a large scale, similar to how CHET, AI software saw a huge increase in users after the release of CHET-TPT. Before, many videos you might have seen were staged. The truly seamless interaction experience that can solve your problems at any time and anywhere hardly existed. Today, with large language models, based on understanding, we've achieved a relatively good experience in aspects such as noise cancellation and handling multi-person interference. So we think this will make the interactive robots for introduction purposes a rapidly developing track.
Speaker Change: So I think this not only improves the experience, but also enables this type of robot to star being applied on a large scale similar to how chat based.
Speaker Change: The agency until you're done Hussaini with even some patents and of course, when we hear from that email.
Speaker Change: Yeah, I wouldn't say that.
Speaker Change: So that in total it's not really it's an agent that can oh.
Speaker Change: AI software saw a huge increase in users after the release of churches to achieve before mini videos you might have seen we're staged a truly seamless interaction experience back and solve your problems at anytime and anywhere hardly existed.
Speaker Change: Sure that you've got kind of Ipp's results in downtown New York.
Speaker Change: Mccann by agents in the same year in the kitchen cooking as a digital age and that the local region, Johnny you talked to any of the system.
Speaker Change:
Speaker Change:
Speaker Change: Two things AI agent is a squishy as civil code the Universal has high household income.
Speaker Change: Today with large language models based on understanding we've achieved a relatively good experiencing nasdaq's, such as noise cancellation and handling most high percentage our senior ranks.
Speaker Change: Which other areas in the switch and they showed us the ACP the tissue bouchey ash opinions hands on agent count.
Speaker Change: Shanghai, Shanghai, she didn't clear financial shovels with violence online channel, which of the particular, yet in Xuzhou East Asia Shanghai at home in the fact in shape.
So we've seen this one makes the interactive robots for introduction purposes, a rapidly developing track.
Speaker Change: <unk> <unk> has hit the Aha <unk>, you don't put yards, whereas I know what I want to touch on the ones that you don't go down other semiotic and shot rock with a nominal that you don't put L. G.
Sheng Fu: Also, as I mentioned just now, for traditional software, we'll make AI agents the basic technical framework, making you more intelligent in meeting user needs when solving user problems. So we're quite confident about both our robot and internet businesses this year. Thank you.
Speaker Change: Also as I mentioned, just now or traditional software will make AI aging the namesake technical framework, making even more intelligent imaging user need twin solving user problem. So we're quite confident about both our robot and internet businesses. This year.
Speaker Change: Kind of what's on this valuable tune does either.
Speaker Change: On the industrial Tigger hoochie, the phosphate, but I don't know what you don't see financial can unpublished to hinder our Hitachi JV.
Speaker Change: Thank you.
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Speaker Change: So shouldn't the liens on it by shifting the balance in the history of him authentic structure. So how should you eat Inc.
Sheng Fu: The rapid development of the AI industry has brought one new opportunity to the future space, development path and business model of Cheetah's robot business. Compared with the last quarter, have Cheetah adjusted its robot business strategy? Well, yes, regarding the question you just asked, I think it's been quite clearly stated. Let me summarize. Currently, the robotics industry is booming, right? But it seems that everyone's focus is on humanoid robots. My consistent view is that humanoid robots face not only software technical difficulties, but also high hardware technical complexity. So there's still a long way to go before they can be commercially applied on a large scale.
Speaker Change: The rapid development of the AI industry has brought one new opportunities to the future space development paths.
Speaker Change: It's just the way it looks at the interim nausea hazard posted on Missouri.
Speaker Change: Mangala Secret hotel at about particular for me I can get you that hold the shopping just obviously as a whole.
Speaker Change: And business model of Cheetos robot business.
Speaker Change: Apparently the last quarter has cheetah adjusted each robot business strategy.
Speaker Change: Wow I wish it's almost flat so you buena aging to watch it.
Speaker Change: The bigger English search in canola contango, Sheila Wildernesses it gets higher its a hard task.
Speaker Change: Certainly some of the Empire social power.
Speaker Change: So the EMEA or shows that <unk> made have a console.
Speaker Change: I will let diego adhesion of equivalent should I shouldn't after those handful atg what remains of the tissue sheeting, which should add suddenly.
Speaker Change: Well, yes regarding the question you just asked I think has been quite clear.
Speaker Change: These data.
Speaker Change: <unk> you wouldn't see it as a whole joke quasi issuance in homecare function is that a yes sure Sheila you.
Speaker Change: Let me summarize currently the robotics industry is booming right at it.
Speaker Change: Seems as everyone's focus is on humanoid robots my consistent view establish humanoid robots age not only software technical difficulty, but also find hardware technical complexity.
Speaker Change: You don't want to say, how easy to use auto dish issues in <unk> Kenya.
Speaker Change: Is it reasonable arent necessarily owned can't come out <unk> not sure that you shut down our balances of Prudential Fujian, some let's say that through the order. So it's just a push out on crush issue <unk>, that's actually what stands out in terms of diesel to the tissue laser didn't data generally the GTS side.
Speaker Change: So there is still a long way to go before they can be commercially applied on a large scale.
Sheng Fu: Today, humanoid robots mainly serve customers like research institutions. We've always firmly believed that for robots to provide human-like services, the mechanical complexity should not be too high, and they should be fully intelligent in understanding the environment and user needs. In this regard, with the maturity of large-language model technology, we think we've reached a crucial point. So we don't think there has been any significant adjustment. We're still following the established path of robot development. However, we believe that the market for robots in voice interaction, such as reception, exhalation, promotion and translation should experience relatively large scale growth compared to last year or previous years.
Speaker Change: Today humanoid robots, namely serve customers like research institutions, we've always firmly believed as a robust to provide human life services and mechanical complexity should not be too high and they should be fully intelligence in understanding the environment.
Speaker Change: So that's the only thing short to the agent of choice with Seaton, which should add those hand holder.
Speaker Change: You can see that not me.
Speaker Change: Kansas <unk> pushes the ageing of the occasional shippers.
Speaker Change: Okay. So it <unk> take the take rate is high.
Speaker Change: <unk> Goodbye chassis that will go to <unk>, Hong Kong will just say that showcase and Glenn gender, Hi, Shang the England with you that you should those should so you won't see the AIA genetically tissue switching to the Te Stacy it's already been.
Speaker Change: End user needs.
Speaker Change: In this regard with a maturity of large language model technology, We think we've reached a crucial point.
Speaker Change: Eating.
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Speaker Change: No I don't I wouldn't coalition oncology Hume, Rohit Jain, who would say that.
Speaker Change: So we don't think there has been any significant adjustment.
Speaker Change: We're still following the established passed our smallpox development. However, we believe that the market for robot in voice interaction such as resection escalation promotion and translation truly experience relatively large scale growth compared to.
Speaker Change: Maybe I'll quit or Amy said, she J wishing the whaler you see data points, how does if I'm in the civil Kayvon Civil it's either I think it's also important as clinical products issued a piece was on the <unk> yet.
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Speaker Change: Last year or previous years.
Sheng Fu: We've made some internal adjustments in commercialization and channels, but I won't go into detail.
Speaker Change: We've made some internal adjustments in commercialization and channels.
Speaker Change: It's actually a it needs about your short social issues.
Speaker Change: I'll go into detail.
Sheng Fu: Overall, we believe that today, artificial intelligence and robotics have indeed entered a track where they can develop rapidly.
Speaker Change: That those volume.
Speaker Change: Overall, we believe that today artificial intelligence and robotics, having D entered a track where they can develop rapidly.
Speaker Change: <unk> she xiang behind yogurt back any channel was also due to the election. After the shutdown that she says you can see just how good it should sound on wages and Joel will you answer the soil team in Shanghai on quoted me Paula This is either <unk> at <unk> is flat.
Speaker Change: So you say well which are the.
Speaker Change: So switching places how do you think of putting the final patent <unk> I'd say its Doug.
Sheng Fu: In Cheetah's robot business, how do you think real-world data feedback can be used to accelerate technological iteration? What role will the data flywheel play in promoting the expansion of Cheetah's robot business to a wider range of industry applications? Yes, based on my previous answers, let me explain. In fact, our robots today focus on two main aspects of technology. Aside from what I've already mentioned about language, one is in voice interaction. Let me give you an example. In many public places, the ambient noise can be around 60 to 70 decibels or even higher. The microphone is actually quite sensitive to noise.
Speaker Change: In Chinas robot business, how are we using real world data feedback can be used to ask.
Speaker Change: That higher Downs Omega Vitale.
Speaker Change: Celebrate technological leader ration.
Speaker Change: Judaism absorb harsha.
Speaker Change: What role will the data flywheel play in promoting the expansion of Chinas robot business to a wider range of industry application.
Speaker Change: Okay, that's present them.
Speaker Change: Okay.
Thank you.
Speaker Change: Smith.
Speaker Change: Oh of.
Speaker Change: Of course, and once again, if you do have a question. Please press Star then one our next question comes from young brands.
John: John Please go ahead.
Speaker Change: Okay Guardian turns there's all the QR nonvoting, Glenn who is a little ball all in Austin, Yes.
Speaker Change: Yes based on my previous answers, let me explain.
Speaker Change: In fact, our robust today focus on two main aspects of technology aside from what I've already mentioned that our language one using voice interaction.
John: Sure you Trudeau they did some joke if you're at home, where they could find me I should hook why youre so amount of mobile.
John: Yeah.
John: Okay.
John: Yeah.
Speaker Change: Let me give you an example in many public places.
Speaker Change: <unk> can be around 60 to 70 decibels or even higher.
John: Once you're done.
John: On my <expletive> and enters into a children's area other than the issue of hips in Oregon.
Speaker Change: The microphone is actually quite sensitive to noise.
Sheng Fu: And there are also issues like spatial echoes. Through our in-depth work over the past few years, we've achieved significant improvements in voice capabilities through data-driven iteration. For instance, our current in-house voice recognition model in such environments has a much higher recognition rate compared to some well-known models outside. This is one aspect of data iteration. After we launch the AI-enabled OS4, it can respond to more complex scenarios involving voice interaction, visual interaction, and multi-person situations. However, there will still be some bad cases and relevant data in these responses. So when we introduce our products to the market, I believe that with the continuous collection of data, we will surely improve the user experience, making it closer to interacting with a real person.
John: Yeah.
John: So you know well men women.
Speaker Change: And they are also issued slides HOA codes.
John: Michelle let's say our sounion.
Speaker Change: Our in depth work over the past few years, we've achieved significant improvements in voice capabilities through data driven iteration.
John: Either.
John: Essentially it is going to give us a woman kite holidays, you have actually.
Speaker Change: Our mission has always a highway or the take or pay fucci industry chose shouldn't face how mean Shannon as I shall show now.
Speaker Change: For instance, our current in house of voice recognition model in such environment has a much higher recognition range compared to some well known model outside.
John: What they should have I suppose how you usually the.
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John: That is Shanghai all the children are.
John: Shelly that they'll cheat.
Speaker Change: Gerardo Fernandez from Cheaters edition <unk> Candela design thinking led so you should have done let's say the secret Ashish would have some value chip machines have overshot also with our you believe it should be.
Speaker Change: This is one aspect of data a duration. After we launched our AI enabled OIS for again respond to more complex scenarios involving voice interaction visual interaction and mall type person situations. However, there will still be some bad cases and relevant data.
Speaker Change: Magnus has owns its own shows how cheap Hammond contango Euromed Kong, you'll you'll see the.
Speaker Change: Hello, Michelle kind of autonomous shuttle to the idea of when you know what sort of women women Donegal moved Aragon went down below that you show an overwhelming opinion leader pesos to Paragon will be all about tissue negotiation, but you didn't touch on was how you Huntington <unk> and <unk> is also at East Chicago Chi to take that.
Speaker Change: In these responses.
Speaker Change: So when we introduce our products to the market I believe with the continuous collection of data, we will surely improve the user experience, making it closer to interacting with a real person.
Sheng Fu: It will be better at discerning whether you're talking to it or chatting with someone else, and whether your intention is to ask the robot to do something or not. These experiences, I think, will be enhanced. The second aspect is indoor navigation for our robots. As I mentioned before, it's limited by computing power. In the past, we mainly relied on SLAM-based engineering algorithms. Some attentive friends may know that in the past, in restaurants, we had to stick QR codes on the ceiling. Without such physical markers, the robot was prone to getting lost or even bumping into people.
Speaker Change: It will be better at discerning, whether you're talking to later chatting with someone else and whether it is our intention was to ask the robot to do something or not these experiences I've seen or being hand the.
Speaker Change: Kony that hotel, Belgium about size of the chapter Tampa ammonia, which is a partnership with Azure fit have shown that our <unk> Joshi sees a journal outlets Yahoo refreshing the <unk> downturn due to the fact that at the time that she syndrome or <unk>.
Speaker Change: The second aspect is indoor navigation for our robots.
You had a woman she's Honda Temkin, Chenault, amici and boosting the agenda.
Speaker Change: As I mentioned before it's limited by computing power in.
Speaker Change: Hana secrets in Guy shows.
Speaker Change: In the past, we mainly relied on slam based engineering algorithms.
Speaker Change: And most of them at Union pay from showcase.
Jim: Now here's Jim Mountain Dew.
Speaker Change: Some attendant friends may know that in the past in restaurants, we have sustained QR codes on the ceiling.
Speaker Change: It's a chins and show them.
Speaker Change: Tonga power General Michelle Hossein E&S agenda, Ngos homely, Dr. Essentials, 10 chance and leaders on TTM home interior, Shimon mango, ginger and the shoulder and ankle secret termed out some local for Deepak Seeger shortly the Samsung <unk>.
Speaker Change: Without such physical markers the role model is prone to getting lost or even bumping into Quito.
Sheng Fu: But now, with the development of vision technology and the continuous increase of data, we no longer need to stick QR codes on the ceiling. Moreover, with the continuous growth of data, we will also enhance the robot's salvo, positioning, and path planning capabilities in space. So, in this regard, I think the data flywheel is a great help to us. And as we continuously improve the user experience and attract more users, I believe our robots can maintain a sufficient lead in terms of intelligent experience.
Speaker Change: Now with the developmental vision technology, and the continuous increase of data, we no longer need to stake QR codes on the ceiling. Moreover, with a continuous growth of data. We will also enhance our robot Silva positioning and path planning capabilities in space.
Speaker Change: The tissue.
Speaker Change: Okay sit here from Goldman.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: Thank you.
Speaker Change: Thank you and once again, if you do have a question. Please first star then one.
Speaker Change: Our next question comes from the add long term with <unk> Securities. Please go ahead.
Speaker Change: So in this regard I think the data flywheel is a great help to us.
Speaker Change: Okay.
Speaker Change: Brian is on the whole we're sure if it was just concerned the internet channel to.
Speaker Change: And as we continuously improve the user experience and attract more users I believe our robots can maintain a sufficient lead in terms of intelligent experience.
Speaker Change: Sure if I mentioned and John what we're trying.
Speaker Change: Trying to parse out here on your what's your reward is you're just you're talking about it or alluded to chance you're growing you don't translate it sounds that youre talking about.
Sheng Fu: Thank you.
Speaker Change: Q.
Speaker Change: Just trying to understand if your tissue and drug brochure I'm wondering if I answered that.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Sure, it's kind of hard to tell you what my leave altogether sure sure sure Yeah sure trickle celerity.
Sheng Fu: With the rapid development of AI products such as Yuanbao, Duvao, like AI Assistant, Copilot, and AI Search, is it possible that the emergence of AI agents will have a significant impact on the existing application ecosystem? Some investors believe that AI agents may replace many traditional apps. In this context, how do you view the integration of AI agents with existing applications? In particular, how do you think AI agents will complement super apps like WeChat? Regarding whether the emergence of AI agents will have a significant impact on the application ecosystem, I think the emergence of AI agents will definitely have a major impact on the existing app technology roadmap.
Speaker Change: With the rapid development of AI products, such as you about mobile Baidu AI assistance co pilot and AI.
Speaker Change: Ciliary vehicle horse Mercury tragic brochure at ones, Yeah on Jinyan Jetta, sorry, if you don't pay as we only count what will your trigger.
Speaker Change: Search is it possible that the emergence of AI agents will have a significant impact on the existing application ecosystem.
Jorge: Sure Jorge.
Speaker Change: And you alluded to go to a vote.
Tricia: Tricia sugar when she's Johnson <unk> Johnson.
Tricia: How does that make Oh, just sue what's Antonia Tampa done at your Aloha, We should have been sent home you're interested the institution is a continuous champagne pushing me pass holders each year.
Speaker Change: Investors believe that AI agent he replaced many traditional apps.
Speaker Change: In this context, how do you view the integration of AI agent with existing application in particular, how do you think AI agents will complement super apps like Wechat.
Tricia: <unk>.
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Tricia: <unk> Mayo Panther, she just kind of tissue one thing that helps with either you're going to see.
Tricia: See the signature finally, though wouldn't pass and also new usage.
Speaker Change: Regarding whether the emergence of AI agents will have a significant impact on the application ecosystem I think.
Tricia: Hudson Glitching, Ohashi, Kombucha, Chinchilla, Patheon did Hudson momentum phase I'm, putting the European audiences Israel.
Speaker Change: The emergence of AI agents will definitely have a major impact on the existing AV technology roadmap as for whether it will have a significant impact on the existing ecosystem.
Tricia: So you wanted to go to any changes in tissues agenda, J Donovan, chief Delicia, GNC that chip and Jo.
Sheng Fu: As for whether it will have a significant impact on the existing ecosystem, it depends a lot on the response of these major players in the ecosystem. Whoever responds quickly may be able to withstand the change, while those who respond slowly may experience some changes. It's a bit similar to the situation when mobile internet emerged. Could traditional internet companies get a share in the mobile internet market, or could they further develop in the mobile internet field? We've seen different companies have different developments later, but I think this is not predestined. It depends on everyone's investment in AI and the speed of their actions in productizing AI.
Tricia: Core deposit attrition of higher AUM, Cartesian, particularly at <unk>, and what you're seeing in Hudson, Ohio <unk> passion.
Speaker Change: Hands a lot on the response of these major players in the ecosystem whoever responds quickly may be able to withstand the change while those who respond slowly may experience some changes.
Tricia: Hello challenges should general housekeeping, Google General Hershey people go just should've had no one silicon whoosh of phase <unk>.
Carol: As a junior woman Carol I'll take the I'll take.
Speaker Change: It's a bit similar to the situation when mobile internet emerged to traditional internet companies get a share in the mobile internet market or could they further develop in the mobile Internet field, we've seen different companies have different developments laid out and I think this is not predestined.
Carol: Downtown <unk> suggested a changing his own little more tie the telco nomi payload hydrogen handily, who were only at Hamlin habits in all shapes and Wilshire Hugo and out of head here. So I'll, let hygiene, which is should handle and silicones, which youll keep entertaining data.
Carol: The peso about penetration of the answer that singular neither judging sandwiches houlihan <unk> zoom leader Nick.
Speaker Change: It depends on everyone's investment Eni and the speed of their actions in product Hyping AI layer. For example, when the emergence of short video platforms like Dalian condos video websites now have made something similar at the beginning.
Sheng Fu: Later, for example, with the emergence of short video platforms like Douyin, could those video websites not have made something similar at the beginning? I don't think so, because we invested in and sold the product to ByteDance, which later became TikTok. Essentially, at that time, people didn't have high expectations, not that they couldn't make it. This time, regarding AI agents, I think there is a broad consensus, whether among entrepreneurs or large companies. So it's hard for me to predict how things will change, because it sometimes depends on the actions of each company. But for your second question, whether AI agents will replace many traditional apps, I think this technology will definitely replace traditional apps.
Carol: Thank God and kind of what would you consider these engine on the abusers hanging teacher and say each end Soc Angiotensinase. Once your household Archie hawsawi full year artificial patient Hershey, Yeah, Hi, Alethia I can choose a major shock that how you put it all together.
Speaker Change: I don't think so because we invested in and saw the product to buy downs, which later became tick tock.
Carol: Cushman <unk> <unk> does she Tony Hawk, but you should so hendi. The particular qiqihar Zyla I think theres some negotiation, let's answer fully until people don't usually if you're just going to initially October so not an agile player, but he has a payer and patient positioning each ATM fleet antenna kind of old mutual casuals orange them, you'll draw your higher end resorts you may sort.
Speaker Change: Essentially at that time people didn't have high expectations now that they couldn't make H <unk>.
Speaker Change: This time regarding AIA James I think there is a broad consensus whether among entrepreneurs are large companies. So it's hard for me to predict how things will change because it sometimes depends on the actions of each company.
Carol: Surely.
Carol: It's about the push out you don't have that much element has been oncology.
Carol: The agent instrument.
Carol: So the change I would say that MBR Shandong Unculture Yahoo don't you see actually I should have mentioned that they each and these hunting doesn't it each year and yellow page the hawkers on Wuxi.
Speaker Change: For your second question, whether AI agents, who are replace many traditional apps I think this technology were definitely replace traditional apps when users get used to solving problems with just one send him a loan use the traditional quake ace way anymore, because natural language requires no laramie.
Carol: St. Jude just to stick with him there shouldn't you shouldn't be Hong Kong.
Sheng Fu: When users get used to solving problems with just one sentence, they won't use the traditional click based way anymore because natural language requires no learning. In the past, when using any app, we had to learn the app interface. That's why the elderly had trouble using health codes and couldn't use the right healing apps. When natural interaction becomes the mainstream, the machine adapts to you without you having to learn anything. As I said before, this is the first time the machine revolves around people instead of people around the machine. In this context, AI agent technology will surely replace many traditional apps.
Carol: <unk>.
Carol: <unk> is a French audience sushi, that's hydraulically mellow, neither will mccombie Aquila buying this Asia, you'll need Asia seekers.
Speaker Change: So you've got a fabulous absolutely.
Speaker Change: In the past when using any apps, we had to learn the app interface. That's why the elderly had trouble using health colds, including news ride hailing cabs.
Speaker Change: And she is uniquely departure, so what was what kind of shortage or shouldnt take a disciplined and pushing that I should mention I should say.
Speaker Change: So gene elements or the trade neither yoga, Peru launching in Hush about you should check out T shirt Chino, Patrick a judge and Knowhow shaping pull it has it had both household languishing Padua in oncology and habits on Datacom again.
Speaker Change: When natural interaction becomes the main streams the machine adapt to you without having to learn anything as I said before this is the first time the machine revolves around people instead of people around the machine.
Speaker Change: Alright, I know its hometown, Chennai Shaw with you to sit down with the colleges that actually wasn't where it is.
Speaker Change: In this context AI agent technology will surely replace many traditional lapse.
Speaker Change: Josh I wanted a tissue b, how would you can get into a fashion show you. She is he going to do which I'd say you should put antigen to the chablis Anthony the Muslim country congratulate Cheshire Cushing the evolution.
Sheng Fu: It also depends on how quickly these apps can apply AI. If they don't give new entrepreneurs or new players enough time, that's also crucial. I think existing apps can indeed be remade with AI agent technology, and the experience will definitely be different.
Speaker Change: It also depends on how quickly these apps can apply AI.
Speaker Change: If they don't give new entrepreneurs are new players enough time NASA also crucial.
Speaker Change: How about tissue.
Speaker Change: I think existing apps can indeed be remained weak AI agent technology and the experience will definitely be different.
Andrea: Okay. Thank you Andrea please move to the next question.
Speaker Change: That does conclude our question and answer session. So I'll turn it back over for any closing remarks.
Sheng Fu: As for how it will complement super apps like WeChat, I can't answer that because it depends on the series of WeChat's future actions, such as whether it will be open in this regard, whether it will make this a top priority, and whether it will continuously roll out such experiences. In fact, I personally think that if a company is too slow in this wave of AI, even its previous ecosystem may encounter problems. Oh, one more example. If people get used to using AI based apps today, you'll find that their reliance on traditional search engines drops significantly.
Speaker Change: For Howie will complement super apps like Wechat, I can't answer that because it depends on a series of wechat future action such as whether it will be open in this regard whether it will make this a top priority and whether it will continuously rollouts such experiences.
Andrea: Okay.
Andrea: So thank you so much for joining our earnings conference call. Today. If you have any further questions. Please let us know.
Andrea: All in all for.
Speaker Change: You are perfect. Thank you so much.
Speaker Change: In fact, I personally think that if a company is too slow in this wave of AI, even its previous ecosystem may encounter problems.
Thank you.
Speaker Change: This concludes today's conference call. We thank you all for attending today's presentation.
Speaker Change: You may now disconnect your lines and other wonderful day.
Speaker Change: Oh, one way samples is twofold get used to using AI based apps today, you'll find that in our reliance on traditional search engines dropped significantly.
Sheng Fu: At least I do. I haven't used a search engine for a long time. Basically, with apps like Meta that we invested in or other apps, they can organize the answers you need. So I don't think things will develop in a fixed direction. It depends on what each player in the industry does specifically.
Speaker Change: At least I do I have a use a search engine for a long time basically with apps like net of that we invested in or other apps. They can organize the answers you need.
Speaker Change: So I don't think things will develop in the fixed direction.
Speaker Change: Hence on what each player in the industry Das specifically.
Sheng Fu: Thank you.
Speaker Change: Thank you.
Sheng Fu: Could you review the major achievements of Cheetah's robot business in 2024 and share the plans and goals for this business area in 2025? I know, in fact, we've disclosed some of our achievements in AI and Agents in 2024, right? Well, for us, one of the achievements in 2024 was that we expanded into some overseas markets. We now believe that the demand for service robots in overseas markets is clearly on the rise. Of course, I have to say that the overseas market is different from our previous APP business. It takes time to build channels, develop agents, and recruit salespeople.
Speaker Change: Could you review the major achievements of Chinas robot business in 2024 and share the plans and goals for this business area in 2025.
Speaker Change: Okay.
Speaker Change: I know in fact, we've disclosed some of our achievements in a M agents in 2000.
Speaker Change: 24, right well for US one of the achievements in 2020 for Lasalle, we expanded into some overseas markets. We now believe that the demand for our service robots in overseas markets is clearly on the rise.
Speaker Change: Of course, I have to say that the overseas market is different from our previous ATP business. It takes time to build channels develop agents and recruit salespeople.
Sheng Fu: In 2024, we witness real market driven growth in the robot business. Even in markets like Europe, which I previously thought were slow changing due to labor shortages, we can clearly see this growing demand for 2025.
Speaker Change: In 2024, we witnessed real marquee driven growth in the robot business, even in markets like Europe, which I previously thought were slow changing due to labor shortages. We can clearly see this growing demand for our 2025 as I mentioned one of them.
Sheng Fu: As I mentioned, one of our major goals this year is to achieve differentiated competition from many robot manufacturers. I think we won't just focus on the single zone called delivery market because, as we all know, the domestic market is highly competitive, especially in terms of price wars. This year, the differentiation we aim to achieve is centered around intelligence and interaction as a development strategy. We want to truly lead in product performance and user experience in this market. And this market, I think, can officially take off with the development of large language models this year. Also, we take a long term view on robots.
Speaker Change: Our major goals. This year is to achieve differentiate had competition from many robot manufacturers.
Speaker Change: I think we will just focus on the single cell called delivery market because as we all know the domestic market is highly competitive, especially in terms of price wars.
Speaker Change: This year the differentiation, we aim to achieve is centered around intelligence and interaction at the development strategy.
Speaker Change: Want to truly lead in product performance and user experience in these markets and this market I've seen can officially take off with the development of large language models.
Speaker Change: <unk>.
Speaker Change: Also we take a long term view on robots, we hope that within three years, we can become one of the top three robot companies globally and we also hope that robot revenue can account for half of the company's total revenue.
Sheng Fu: We hope that within three years, we can become one of the top three robot companies globally. And we also hope that robot revenue can account for half of the company's total revenue. This is our plan for the next three years or more.
Speaker Change: This is our plan for the next three years or more thank you.
Sheng Fu: Thank you.
Sheng Fu: In the past, the market generally believed that due to the lack of sufficient general purpose capabilities, wheeled robots had limited market space and average monetization capabilities, which led to restricted R&D investment and formed a vicious cycle. Do you agree with this view? In your opinion, how can Cheetah break through these limitations and open up the market space for wheeled robots? How far are we from this turning point?
Speaker Change: In the past the market generally believed that due to the lack of sufficient general purpose capabilities will robots had limited market space in App.
Speaker Change: <unk> monetization capabilities, which lateral restricted R&D investments and formed a vicious cycle.
Speaker Change: Do you agree with this view in your opinion, how can sheet of breakthrough niche limitation and open up the market space for wheeled robots, how far removed from this turning point.
Sheng Fu: Well, I don't quite agree with the first part of your conclusion. The limited market space of willed robots is not because they are willed, but rather due to the limited intelligence level of robots in the past. In the past, when you saw many restaurants and hotels using them, there was a large amount of deployment work required, and their tasks were very single. They couldn't handle complex solution level problems, which restricted their practical application, right? So, the insufficient intelligence level was the limiting factor, enabling them to only complete very fixed tasks, such as point-to-point delivery, right?
Speaker Change: Well I don't quite agree with their first part of your conclusion, the limited market space of wheels robots is not because they are.
Speaker Change: World, but rather due to the limited intelligence level of robots in the past.
Speaker Change: In the past when you saw many restaurants and hotels using them. There was a large amount of deployment work required and their tasks were very single.
Speaker Change: They couldn't handle complex solution level problems, which restricted their practical application.
Speaker Change: Right.
Speaker Change: So the insufficient intelligence level, what's the limiting factor, enabling them to only complete very big task such as point to point delivery right.
Sheng Fu: Therefore, I think the biggest problem with humanoid robots before, or in fact, with the entire robotics industry excluding industrial robots, as industrial robots have reached a sufficient level of automation through decades of development to meet many industrial production line requirements, was the lack of intelligence. This insufficient intelligence level led to very limited task completion capabilities. However, this year, with the addition of the AgentOS we just mentioned, which brings new multimodal interaction capabilities, task key planning capabilities, I believe the intelligence level of robots can be significantly enhanced. Once the intelligence level is improved, the tasks they can complete will be, let's say, not on par with humans, but approaching humans by capabilities in some aspects.
Speaker Change: Therefore, I think the biggest problem with humanoid robots before or in fact was the entire robotics industry, excluding industrial robots and industrial robots have reached a sufficient level of automation through decades of development to meet many industrial production line requirements once the lack of being.
Speaker Change: Intelligence is insufficient intelligence level led to very limited task completion capability. However, this year with the addition of the aging the OSV just mentioned, which brings new mall time modal interaction capabilities have key planning capabilities I believe Intel.
Speaker Change: <unk> level of robots can be significantly enhanced.
Speaker Change: Once the intelligence level has improved the task. They can complete will be let's say not on a par with humans on approaching human by capabilities in some aspects.
Sheng Fu: Let me give you a detailed example to help you understand. In the past, restaurant robots were limited. They could only move from one table to another, and waiters still had to be trained for this simple task. And that was about it. They had no idea about the customer's reaction. But with our system now, first of all, waiters don't need to be trained to tell the robot to deliver something to a certain table. It's as simple as telling a person. Second, the robot can perform some tasks that only waiters could do before. For example, when it's almost closing time, it can go to each table with customers and inform them.
Speaker Change: Let me give you a detailed example to help you understand in the past restaurant robust for a limited they can only move from one table to another and waiters still has to be trained for this simple tasks and that was about it.
Speaker Change: They had no idea about the customers' reaction.
Speaker Change: But with our system now first of all waiters don't need to be trained to tell the robot to deliver something to a certain table.
Speaker Change: It's as simple as telling a person.
Speaker Change: The robot can perform some tasks that only waiters could do before for example, when it's almost closing times. He can go through each table with customers and inform them. This can be accomplished without writing any code to the agent system and there are a few customers.
Sheng Fu: This can be accomplished without writing any code through the agent's system. If there are a few customers, it can even go to the door and shout to attract more. In the past, for non-IT enterprises like restaurants, the cost of configuring everything for the robot to perform such tasks was extremely high in terms of heating cost. Of course, this is just a small example.
Speaker Change: It can even go to the door and shouts will attract more.
Speaker Change: In the past for non ITE enterprises like restaurants.
Speaker Change: First off considering everything for the robot to perform such task was extremely high in terms of heating costs.
Speaker Change: Of course this is just a small example.
Sheng Fu: Since this is an earnings conference, we will release some use case information later. If you're interested, you can take a look. So what I'm trying to say is that the root cause is not the wheeled form itself, but the insufficient intelligence level. Therefore, the biggest investment we've made this year, or rather starting from last year, is to improve the intelligence level of robots. Once the intelligence level is sufficient, it can be applied in many scenarios, greatly expanding its market space.
Speaker Change: Since this is an earnings conference we will release some used case information later.
Speaker Change: If you're interested you can take a look.
Speaker Change: So what I'm trying to say is that the root cause is not the real form itself, but the insufficient intelligence level. Therefore, the biggest investment we've made this year or rather starting from last year is to improve the intelligence level of robots.
Speaker Change: One thing intelligence level is sufficient he can be applied in many scenarios greatly expanding its market space.
Sheng Fu: Of course, in the long run, although I'm not optimistic about humanoid robots, I think adding robotic arms and enabling tasks in the physical space is a feasible and promising approach for the next step expansion of robots. Thank you.
Speaker Change: Of course in the long run, although I'm not optimistic about humanoid robots, I think adding robotic arms and enabling half in a physical space is a feasible and promising approach for the next staff expansion of robots.
Speaker Change: Thank you.
Speaker Change: Okay.
Unknown Executive: Okay, so thank you so much for joining the conference call.
Speaker Change: Okay. So thank you so much for joining the conference call.
Unknown Executive: This is Talon from Cheetah Mobile's IR team. This slide is, you know, posted by an AI agent to translate management Q&A section. So thank you for your patience and if there is any, you know, misunderstanding of our translation, I think our transcript for the earliest call will become available on our IR website as soon as possible. And if you have any further questions, please reach out to our IR team. Thank you so much. Bye.
Speaker Change: This is power from Cheetah mobile side, our team Atlas Lions, arguing all posted by AI agent to translate.
Speaker Change: There's a Q&A section to sanction the service for a patient and if there is any you know.
Speaker Change: Misunderstanding of our translation asking or trying to scrape claw for the earnings call will become available on Iraq by echelon has talked about and if you have any further questions. Please reach out to our IR team. Thank you so much.
Speaker Change: Hi.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your line.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Unknown Executive: Thomas Chong, Jintao Ren, Sheng Fu, Jing Zhu, Cheetah Mobile Inc.
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