Q3 2025 Cheetah Mobile Inc (Mainline) Earnings Call

Speaker #1: Good day and welcome to the Cheetah Mobile third quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: Good day, and welcome to the Cheetah Mobile Q3 2025 earnings conference call. All participants will be in listen-only mode. Should 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, and to withdraw your question, please press star then two. Please note today's event is being recorded. I would now like to turn the conference over to Helen, Investor Relations for Cheetah Mobile. Please go ahead, Helen.

Speaker #1: 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, and two to withdraw your question.

Speaker #1: I would like to turn the conference over to Helen, Investor Relations for Cheetah Mobile. Please go ahead, Helen.

Speaker #2: Thank you . Operator . Welcome to Cheetah Mobile third Quarter 2020 Earnings Conference Call . With us today , our company's chairman and CEO , Mr. Fouchon , and our company's director and CFO , Mr. Thomas Jin .

Helen: Thank you, Operator. Welcome to Cheetah Mobile Q3 2025 earnings conference call. With us today, our company's Chairman and CEO, Mr. Fu Sheng, and our company's Director and CFO, Mr. Thomas Jin. Following management's prepared remarks, we'll conduct the Q&A section. Please note the management's credit will be presented by an AI agent. Before we begin, I refer you to the Safe Harbor statement in our earnings release, which also applies to our conference call today, as we will make forward-looking statements. At this time, I will now turn the conference call over to our Chairman and CEO, Mr. Fu Sheng. Fu Sheng, please go ahead.

Speaker #2: Following management's prepared remarks, I will welcome you back to a section. Please note that the management script will be presented via AI agent. Before we begin, I direct you to the Safe Harbor statement in our earnings release, which also applies to our conference call today.

Speaker #2: As we will make forward looking statements I will time . now conference call over to our turn the chairman and CEO , Mr. Zhang .

Speaker #2: Please go ahead .

Speaker #3: Good day, everyone, and thank you for joining Cheetah Mobile's third quarter 2020 earnings call. I'm the CEO of Cheetah Mobile.

Fu Sheng: Good day, everyone, and thank you for joining Cheetah Mobile Q3 2025 earnings call. I'm Fu Sheng, the CEO of Cheetah Mobile. I'm very happy to report that our turnaround efforts are paying off. We hit quarterly break-even ahead of expectations. In Q3, we made an operating profit mark for the first time in six years. We believe we are well-positioned to approach break-even for the full year 2025. At the same time, our growth stayed strong in Q3, building on the momentum from the first half of the year. Q3 revenue rose 50% year-over-year, driven by both our internet business, and our AI and other businesses. Our AI and other segments grew even fast, up 151% year-over-year and 6% quarter-over-quarter, and now presenting 50% of total revenues. So far, 2025 has been a solid year for Cheetah. Revenue in the first nine months rose around 48%.

Speaker #3: I'm very happy to report that our turnaround efforts are paying off. We hit quarterly breakeven ahead of expectations in Q3. We made an operating profit for the first time in six years.

Speaker #3: I believe we are well positioned to approach breakeven for the full year 2025. At the same time, our growth trend stayed strong in Q3.

Speaker #3: Building on the momentum from the first half of the year , Q3 revenue rose 50% year over year , driven by both our internet business and our AI and other businesses .

Speaker #3: AI Our and other segments grew even faster, up 151% year over year and 6% quarter over quarter. This segment now represents 50% of total revenues so far. 2025 has been a solid year for Cheetah Mobile; revenue in the first nine months rose around 48%.

Speaker #3: We became profitable in Q3 and took important steps in our two AI-focused areas: AI robots and AI tools. We believe this progress shows our investors were right to trust our vision and work.

Fu Sheng: We became profitable in Q3 and took important steps in our two AI-focused areas: AI robots and AI tools. We believe this progress shows our investors were right to trust our vision and work. I want to thank our shareholders for their support. I know many of you invested in Cheetah Mobile because you believe in our ability to deliver a comeback. We are working hard every day to make that happen. I remain fully committed to leading the company forward, and our results this year show that the turnaround is real. Looking ahead, we will focus on driving growth by building new growth engines through our AI initiatives, AI robots, and AI tools. Today, I will talk about our vision and progress in these areas. Thomas will follow with more on how we are building a lean cost structure to support long-term profitability.

Speaker #3: I want to thank our shareholders for their support. I know many of you invested in Cheetah because you believed in our ability to deliver a comeback.

Speaker #3: We are working hard every day to make that happen. I remain fully committed to leading the company forward, and our results this year show that the turnaround is real.

Speaker #3: Looking ahead, we will focus on driving growth by building new growth engines through our AI initiatives: AI, robots, and AI tools.

Speaker #3: Today I will talk about vision and progress in these areas . Thomas will follow with more on how we are building cost a lean structure to support long term profitability , both AI , robots and AI tools have enormous market potential , and Cheetah Mobile has strong advantages to build new growth engines in these areas .

Fu Sheng: Both AI robots and AI tools have enormous market potential, and Cheetah Mobile has strong advantages to build new growth engines in these areas. Additionally, we hold minority investments in several companies in this space, which could extend our organic growth in the future. In Q3, our AI robotic business contributed about 15% of total revenue, growing about 100% year-over-year and 40% quarter-over-quarter. We see two drivers of this growth. First, strong demand for our voice-enabled wheel robots in China. In Q3, for the second quarter in a row, revenue from these robots doubled year-over-year. They now make up around 5% of our total revenues, supported by both repeat orders and new wins. As of 30 September 2025, the contract backlog for these robots in China was up 32% from the previous quarter. Since then, the backlog has doubled again, reflecting sustained demand.

Speaker #3: Additionally , we hold minority investments in several companies in this space , which could extend our organic growth in the future . In Q3 , our AI robotic business contributed about 15% of total revenue , growing about 100% year over year .

Speaker #3: And 40% quarter over quarter . We see two drivers of this growth first , strong demand for our voice enabled will robots in China in Q3 .

Speaker #3: For the second quarter in a row, revenue from these robots doubled year over year. They now make up around 5% of our total revenues, supported by both repeat orders and new wins.

Speaker #3: As of September 30th , 2025 , the contract backlog for these robots in China was up 32% from the previous quarter . Since then , the backlog has doubled again , reflecting sustained demand .

Speaker #3: These trends make us comfortable for continued strong growth in our revenue from these robots in the fourth quarter. Why is demand rising?

Fu Sheng: These trends make us comfortable for a continued strong year-over-year growth in our revenue from these robots in the fourth quarter. Why is demand rising? First, more customers are open to using robots, and today, wheel robots are the most reliable and cost-effective option for large-scale deployment. More importantly, product experience is getting better. AgentOS, our voice system powered by AI agents, gives our robots a smarter brain to understand and respond more naturally to people. That improved experience allows us to charge a premium, even in a competitive market, but most of our revenue growth came from higher shipment volume. We believe AgentOS not only enhances user experience, but also strengthens our leadership in voice-enabled robots. Our voice-enabled wheel robot, which integrated with Google's Gemini 2.5 Flash, was recently featured by Google Cloud at its AI Asia conference. We believe this is a strong sign of endorsement.

Speaker #3: First, more customers are open to using robots, and today we find that robots are the most reliable and cost-effective option for large-scale deployments.

Speaker #3: Importantly, the product experience is getting better, and our operating systems are voice systems powered by AI agents. This gives our robots a smarter brain to understand and respond more naturally to people. That improved experience allows us to charge a premium even in a competitive market.

Speaker #3: But most of our revenue growth came from higher shipment volume. We believe Agent OS not only enhances user experience, but also strengthens our leadership in voice-enabled robots.

Speaker #3: Our voice-enabled real robot, which is integrated with Google's Gemini 2.5 Flash, was recently featured by Google Cloud at its AI Asia conference.

Speaker #3: We believe this is a strong sign of endorsement. We are continuously upgrading our AI agent capability and applying it to our products.

Speaker #3: Looking forward , we think these robots can do even better overseas as we combine third party genai and multimodal models with our strength in voice , AI and autonomous mobility to drive real world applications .

Fu Sheng: We are continuously upgrading our AI agent capability and applying it to our products. Looking forward, we think these robots can do even better overseas as we combine third-party GenAI and multimodal models with our strengths in voice AI and autonomous mobility to drive real-world applications. Second, our robotic...

Speaker #3: Second , our robotics .

Speaker #1: Everybody, this is a conference operator. It looks like we've lost the main speaker connection. I'm going to place hold music in the call, and we'll get them connected again.

Operator: Pardon the interruption, everybody. This is the conference operator. It looks like we've lost the main speaker connection. I'm going to place hold music in the call, and we'll get them connected again. Please stand by. Thank you for holding, everyone. This is the operator. I've reconnected the main speaker line. Please proceed with your call.

Speaker #1: Please stand by . Thank you for holding everyone . This is the operator I've reconnected . The main speaker line . Please proceed with your call .

Speaker #2: Hello, everybody. This is Helen from Cheetah Mobile. I think there are some tech issues. Or are we connected? Just making sure I am in the right place to see the prepared remarks.

Helen: Hello, everybody. This is Helen from Cheetah Mobile. I think there are some tech issues, so they were told that please connect us. I was just replayed to replay the CEO's prepared remarks. Very sorry for the inconvenience.

Speaker #2: Very sorry for the inconvenience.

Speaker #3: Good day, everyone. This growth, driven by strong demand, is enabled by China in Q3 for the second consecutive quarter. Revenue from these robots doubled year over year.

Fu Sheng: Good day, everyone. Of this growth, first, strong demand for our voice-enabled wheel robots in China. In Q3, for the second quarter in a row, revenue from these robots doubled year-over-year. They now make up around 5% of our total revenues, supported by both repeat orders and new wins. As of 30 September 2025, the contract backlog for these robots in China was up 32% from the previous quarter. Since then, the backlog has doubled again, reflecting sustained demand. These trends make us comfortable for continued strong year-over-year growth in our revenue from these robots in the fourth quarter. Why is demand rising? First, more customers are open to using robots, and today, wheel robots are the most reliable and cost-effective option for large-scale deployment. More importantly, product experience is getting better.

Speaker #3: They now make up around 5% of our total revenues , supported by both repeat orders and new wins . As of September 30th , 2025 , the contract backlog for these robots in China was up 32% from the previous quarter .

Speaker #3: Since then, we have doubled the backlog again, reflecting sustained demand. These trends make us comfortable with a continued strong railway growth in our revenue from these robots.

Speaker #3: In the fourth quarter . Why is more , and we are robots First , open using are the most to rising ? today reliable and cost effective option for large scale deployments .

Speaker #3: But more importantly, product experience is getting better. Agent OS, our voice system powered by AI agents, gives our robots a smarter brain to understand and respond more naturally to people.

Fu Sheng: AgentOS, our voice system powered by AI agents, gives our robots a smarter brain to understand and respond more naturally to people. That improved experience allows us to charge a premium, even in a competitive market, but most of our revenue growth came from higher shipment volume. We believe AgentOS not only enhances user experience, but also strengthens our leadership in voice-enabled robots. Our voice-enabled wheel robot, which integrated with Google's Gemini 2.5 Flash, was recently featured by Google Cloud at its AI Asia conference. We believe this is a strong sign of endorsement. We are continuously upgrading our AI agent capability and applying it to our products. Looking forward, we think these robots can do even better overseas as we combine third-party GenAI and multimodal models with our strengths in voice AI and autonomous mobility to drive real-world applications.

Speaker #3: That improved experience allows us to charge a premium, even in a competitive market. However, most of our growth revenue came from higher shipment volumes.

Speaker #3: We believe Agent OS enhances user experience, but it also not only strengthens our leadership in voice-enabled robots. The real voice robots, which are integrated with Google's Gemini 2.5 Flash, were recently featured by Google Cloud at its AI Asia conference.

Speaker #3: We believe this is a strong sign of endorsement. We are continuously upgrading our AI agent capability and applying it to our products.

Speaker #3: Looking forward , we think these robots can do even better overseas as we combine third party AI and multimodal our strengths models with in voice , AI and autonomous mobility to drive real world applications .

Speaker #3: Second , our robotic arm business is growing steadily , supported by three key industry trends . Number one , in manufacturing collaborative robotic arms are becoming more and more popular because they're smaller , easier to install , and more affordable .

Fu Sheng: Second, our robotic arm business is growing steadily, supported by three key industry trends. Number one, in manufacturing, collaborative robotic arms are becoming more and more popular because they're smaller, easier to install, and more affordable. They're also safer to work with, so they help fill many unmet needs in factories, like doing tasks that need flexible movement, careful and precise work, or real-time feedback. These tasks now rely on human workers today. Number two, in commercial spaces like coffee shops and smart retail, because of advances in lightweight design, easy programming, and built-in vision of feedback, we're unlocking new use cases. Our team's ability to understand real-world needs and build practical products gives us an edge. Number three, robotic arms are a core part of embodied AI.

Speaker #3: They're also safer to work with . So they help so many unmet needs in like doing factories , tasks that need flexible movement , careful and precise work , or real time feedback .

Speaker #3: These has now rely on human workers today . Number two , in commercial spaces like coffee shops and smart retail , because of advances in lightweight easy design and programming and built in vision feedback , we're unlocking new use cases .

Speaker #3: Our team's ability to understand real-world needs and build practical products, businesses, and edge solutions is essential. Robotic arms are a core part of embodied AI.

Speaker #3: As global demand for physical AI grows, we believe robotic arms will play a key role in bringing AI to the real world.

Fu Sheng: As global demand for physical AI grows, we believe robotic arms will play a key role in bringing AI into the real world. We strengthen our robotic arm business through an acquisition, demonstrating our strategy of combining organic growth with M&A. This business is a great fit for us. It is already profitable, with tens of millions of R&D and annual revenue, most of it from overseas customers. By bringing this company into our group, we've expanded our product line and strengthened our presence in global markets. More importantly, we started testing how to combine our wheel robots with robotic arms to create embodied AI that can handle more complex real-world tasks. It's still in early days, but our solid foundation in both technology and product development puts us in a strong position to grow in this space in the long run.

Speaker #3: Strengthen our We Robotics business through an arm acquisition, demonstrating our strategy of combining organic growth with M&A. This business is a great fit for us.

Speaker #3: It is already profitable with tens of millions of RMB and annual revenue , most of it from overseas customers . bringing this By company into our group , we've expanded our product line strengthened and our presence in global markets .

Speaker #3: More importantly , we started testing how to combine our robots real robotic with arms to create embodied AI that can handle more complex , world real It's tasks .

Speaker #3: Still in days, but our foundation in both technology and product development puts us in a strong position to grow in this space.

Speaker #3: In the long run . Moving on to AI tools , this is another area where we see long term potential . We're using AI agents to quickly build a variety of new tools for both PC and mobile , and we're also upgrading some of our existing products with AI features .

Fu Sheng: Moving on to AI tools, this is another area where we see long-term potential. We're using AI agents to quickly build a variety of new tools for both PC and mobile, and we're also upgrading some of our existing products with AI features. For example, in one of our legacy products, CM Security, our users can now interact with their PC through natural language to complete tasks like system settings. No need for complex manual steps. In small-scale testing of other tools like meeting summarizers, we've also seen strong user engagement, and good willingness to pay. What makes this space exciting is that AI coding apps have greatly reduced the time and cost it takes to build and launch new products. This gives us the flexibility to test many ideas quickly and focus on what works.

Speaker #3: For example, in one of our legacy products, Google users can now interact with their PC through natural language to complete tasks like settings.

Speaker #3: For example, in one of our legacy products, Google users can now interact with their PC through natural language to complete tasks like system management. There is no need for complex manual steps in small-scale testing of other tools like meeting summarizers.

Speaker #3: We've also seen strong user engagement and a good willingness to pay. What makes this exciting is that AI coding apps have greatly reduced the time and cost it takes to build and launch new products.

Speaker #3: This gives us the flexibility to test many ideas quickly and focus on what works well . We're still in early stages . We believe our strength in building user friendly , tool based apps , especially with the help of AI agents , puts us in a good position .

Fu Sheng: While we're still in the early stages, we believe our strength in building user-friendly, tool-based apps, especially with the help of AI agents, puts us in a good position. Since subscriptions already make up more than 60% of our internet revenue, we're confident in our ability to monetize future products through the same model. To close, I believe Cheetah Mobile has moved beyond the turnaround phase. Looking ahead, our focus is on building long-term value by scaling our AI robot business, and capturing the upside of AI-native tools. While we're still early, both segments have real momentum and strong potential to drive growth in the years to come.

Speaker #3: Since subscriptions already make up more than 60% of our revenue, we're confident in our ability to monetize future products through the same model.

Speaker #3: close , I believe To cheetah has beyond the moved turnaround phase . Looking focus ahead , our building is on long term value by scaling our AI robot business and capturing the upside of AI native tools .

Speaker #3: While we're still early, both segments have real momentum and strong potential to drive growth in the years to come. Thank you, Tushar.

Speaker #3: Everyone .

Speaker #4: And thank you for joining the call . Unless otherwise stated , all financial figures are presented in RMB . In the third quarter of 2025 , we were reach an pleased to important milestone .

Thomas Ren: Thank you, Yusha. Hello, everyone, and thank you for joining the call. On the Saturday stated, all financial figures are presented in RMB. In the third quarter of 2025, we were pleased to reach an important milestone. We reported our first quarterly operating profits in the past six years. This achievement reflects the disciplined execution of our team, and the continued improvement in our operational efficiency. Operating profit was RMB 4 million in the quarter. On a non-VAT basis, operating profit reached RMB 15 million, compared with an operating loss of RMB 60 million in the same period last year, and an operating loss of RMB 2 million in the previous quarter. Let me walk you through the key financial results in the quarter. Total revenue reached RMB 287 million, up 50% year-over-year, driven by a 151% growth in our AI and other segments.

Speaker #4: We reported our first quarterly operating profit in the past six years. This achievement reflects the disciplined execution of our teams and the continued improvement in our operational efficiency.

Speaker #4: Operating profit was RMB 4 million in the quarter on a non-GAAP basis. Operating profit reached RMB 50 million, compared with an operating loss of RMB 60 million in the same period last year.

Speaker #4: And a loss of RMB 2 million in the previous quarter. Let me walk you through the key financial results in the quarter.

Speaker #4: Total revenue reached RMB 287 million, up 50% year over year, driven by 151% growth in our AI and other segments. This segment accounted for 50% of total revenue compared with 30% in the same period last year.

Thomas Ren: This segment accounted for 50% of total revenue, compared with 30% in the same period last year. Our internet business remained stable, with revenue increasing 6% year-over-year in Q3. Gross profit increased by 64% year-over-year, and gross margin improved to 75%, up from 68% in the year-over-year quarter. Operating profit improved to RMB 4 million, compared with an operating loss of RMB 72 million a year ago. On a non-VAT basis, operating profit was RMB 15 million, compared with an operating loss of RMB 60 million last year. By segment, our internet business delivered approximately RMB 21 million in adjusted operating profits in this quarter, up 55% year-over-year. Adjusted operating loss for our AI and other segments narrowed by 82% year-over-year, and 53% quarter-over-quarter to RMB 15 million in this quarter. On the balance sheet side, our financial position remained strong.

Speaker #4: Our internet business remained stable , with revenue increasing 6% year over year in Q3 . Gross profit increased by 64% year over year , and gross margin improved to 75% , up from year 68% in the ago quarter .

Speaker #4: Operating profit improved for R&D in media compared with an operating loss of RMB 72 million a year ago. On a non-GAAP basis, operating profit was RMB 15 million, compared with an operating loss of RMB 60 million last year.

Speaker #4: A segment our internet business delivered approximately RMB 21 million in adjusted operating profit in this quarter , up 55% year over year . Adjusted operating loss for AI and other segments narrowed by 82% year over year , and 53% quarter over quarter to RMB 50 million in this On the quarter .

Speaker #4: sheet side , our financial position remains strong . As of the 30th of September , 2025 , the company had cash and cash equivalents of about $224 million , and long term investments of 107 million USD .

Thomas Ren: As of 30 September 2025, the company has cash and cash equivalents of about $224 million and long-term investments of $107 million. We continue to maintain discipline in cash flow management and capital allocation. Looking ahead for our internet business, we will continue to deliver robust operating profits. We want to be clear that we prioritize operating profit growth over revenue growth. For our AI and other business, we also aim to further manage our costs and expenses through a more focused and efficient approach. First, we are focusing on high-potential use cases for our robotic business, providing the only way to build sustainable and profitable business models. We concentrate on AI-powered voice-enabled wheel robots, products that have proved to deliver a highly competitive ROI, achievement alternatives for reception, museums, and exhibition scenarios. Second, we leverage third-party and open-source models and tools to enhance our robot experience.

Speaker #4: We continue to maintain discipline in cash flow management and capital allocation. Looking ahead for our internet business, we will continue to deliver robust operating profits.

Speaker #4: We want to be clear that we prioritize operating profit growth over revenue growth for our AI and other businesses. We also aim to further manage our costs and expenses in a more focused and efficient approach.

Speaker #4: First, we are focusing on high-potential use cases for our robotic business, as it's the only way to build sustainable and profitable business models.

Speaker #4: We concentrate on AI powered , voice enabled robots products that have proved to deliver a highly competitive ROI . A kimono for museum and exhibition scenarios .

Speaker #4: Second , we leverage and third parties open source models and tools to enhance our robust experience . This approach allows us to accelerate product updates , thereby increasing our overall efficiency .

Thomas Ren: This approach allows us to accelerate product updates, thereby increasing our overall efficiency. Third, for our advertising agency service and multi-cloud management services, we are taking a more disciplined approach, strengthening counter-control, deliverables, and customer value to better manage our costs and expenses. Overall, at the corporate level, we will continue to invest in AI robots and AI tools, as we believe these two areas will drive our long-term revenue growth. However, we will stay disciplined and ROI focused in every decision. I believe Cheetah has entered a much better phase compared with a year ago in product development. As we shared in the previous call, we encourage our employees to use AI tools, such as AI coding apps, to build their own AI, not only to improve productivity, but also to enhance decision-making. Leveraging AI allows us to develop products faster and operate them with fewer people than before.

Speaker #4: Third , for our advertising agency , service and multi-cloud management services , we are taking a more disciplined approach strengthening concert control deliverables and customer value to better manage our costs and expenses .

Speaker #4: Overall , at the corporate level , we will continue to invest in AI , robots and AI tools as we believe these two areas will drive our long term revenue growth .

Speaker #4: However, we will stay disciplined and ROI-focused in every decision. I believe Cheetah has arrived at a much better place compared with a year ago in product development.

Speaker #4: As we shared in previous calls, we encourage our employees to use AI tools, such as AI coding apps, to build their own AI.

Speaker #4: Not only to improve productivity, but also to enhance decision-making AI. Leveraging this allows us to develop products faster and operate them with fewer people than before.

Speaker #4: Most importantly, with the AI opportunity, the business improvements we have achieved over the past year, and the ongoing recognition capital from the market, we are seeing renewed confidence and momentum across our teams.

Thomas Ren: Most importantly, with the AI opportunity, the business improvements we have achieved over the past year, ongoing recognition from the capital market, we are seeing renewed confidence and momentum across our teams. I personally believe these changes, stronger execution, disciplined investments, improved efficiency, and an inspired team, formed the foundation for Cheetah Mobile to reveal this success and this new chapter. Thank you. We are now happy to take your questions.

Speaker #4: I personally believe these changes – stronger execution, discipline, investment, improved efficiency, and an inspired team – form the foundation for Cheetah to reveal this new success and chapter.

Speaker #4: Thank you. We are now happy to take your questions.

Speaker #1: Thank you . We will now begin . Yes , ma'am . We will . We will now begin the question and answer session .

Helen: Thank you. We will now begin the question-and-answer session. To ask a question, please press star then 1 on your telephone keypad. If your question has been addressed and you'd like to remove yourself from queue, please press star then 2. We'll pause for just a moment to assemble our roster. Our first question today comes from Thomas Chong at Jefferies. Please go ahead.

Speaker #1: To ask a question, please press star. Then one on your telephone keypad. If your question has been addressed and you'd like to remove yourself from the queue, please press star.

Speaker #1: Then two. We'll pause for just a moment to assemble our roster. And our first question today comes from Thomas Chong and Jefferies.

Speaker #1: Please go ahead .

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Speaker #2: Operator, please move to the next question. Thank you.

Speaker #1: Our next question comes from Vicky Wei at Citi. Please go ahead.

Helen: Operator, please move to the next question. Thank you.

Helen: Our next question comes from Vicky Wei at Citi. Please go ahead.

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Fu Sheng: being able to seize some new opportunities. This is our overall business strategy: to seek innovation while being prudent. This is our current goal. We do not have a particularly digital so-called profitability target right now, because we feel there are still many opportunities in AI. This is our current view. Thank you.

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Speaker #2: Thank you all. Please move to the next question.

Speaker #1: Next question comes from Lydia Lin at Morgan Stanley. Please go ahead.

Helen: Thank you, Operator. Please move to the next question.

Helen: Absolutely. Our next question comes from Lydia Lin at Morgan Stanley. Please go ahead.

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Speaker #2: Operator . Please Thank you . move to the next question .

Speaker #1: Our next question comes from Zheng Huang with Everbright Securities. Please go ahead.

Helen: Thank you, Operator. Please move to the next question.

Helen: Our next question comes from Zeng Huang with Everbright Securities. Please go ahead.

Zeng Huang: ?????Helen??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Fu Sheng: ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI???????????????????????????????????????????????????????????????????????????????GitHub?????????????????????????????AI?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Speaker #6: Your . Line is . Now . AI . Wang . Shenzhen . Woman . Shanghai . Woman .

Speaker #2: Thank you, Operator. Please move to the next question.

Speaker #1: Thank you. Our next question today comes from Alicia Zhu with J.P. Morgan. Please go ahead.

Helen: Thank you, Operator. Please move to the next question.

Helen: Thank you. Our next question today comes from Alicia Xu with JPMorgan. Please go ahead.

Alicia Xu: ????????????????????????????????????????Google???????????????????????????????????????????????????????????

Speaker #9: Can you hear?

Fu Sheng: ????????????????????????????????????????????????OpenAI????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI?????????????????????????????????????????????????????????????????????????????????????????AI??????????????????????????????????????????????????????????????????????????????????????????

Speaker #6: And . Each woman . Chen . You are . Are . On the . AI . You can . You .

Speaker #2: You. Thank you, Operator. Please move to the next question.

Speaker #1: Of course. Our next question comes from Zhao with ICBC International. Please go ahead.

Helen: Thank you. Operator, please move to the next question.

Helen: Of course. Our next question comes from Zepping Zhao with ICBC International. Please go ahead.

Thomas Ren: ??????????????????????????????AI??????????????????????????????????????????????????????????????????????????

Speaker #10: Your .

Fu Sheng: ???????????????AI????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI???????????????????????AI?????????????????????????????AI?????????????????????????????????????????????????AI????????????????????20???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI?????????????????????????????????????????????????Agent??????Agent?????????Agent??????????????????????????????????????????????AI????????????????????????????????PDF??????????????????AI Agent?????????????????????AI?????????????????????????????????????????????????AI??????AI?????????????????????????????????????????????????AI??????????????????????????????????????????????????????????????????????APP?????????????????????????????????????????????????????????????????????????????????????

Speaker #6: A . The AI Hua . AI the Shanghai . AI . A woman in for . You . AI . Agent . With .

Speaker #6: AI . PDF . AI . Agent . So you know . By . AI . AI . Mean . AI . Yes .

Speaker #2: Thank you. Operator, please move to the next question.

Speaker #1: Absolutely. Our next question today comes from Joanna Ma with CMB. Please go ahead.

Helen: Thank you. Operator, please move to the next question.

Helen: Absolutely. Our next question today comes from Joanna Ma with CNBI. Please go ahead.

Speaker #9: Thomas . Wang .

Zeng Huang: ????????????????????????????Thomas??????????????????????????????????????????????????????????????????????????????????????

Fu Sheng: ????Joanna????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Q4????????????????????????????????????????????????????????????????????????????????70%????????????????????????????????????????????????????????????????????????????????????????????AI??????????????????50%??????????25???????????????????????????????AI?????????????????????????????????????????????

Speaker #4: Woman . Jing Zhu . Thank you . Woman . Why are women you . AI .

Speaker #2: Thank you, operator. Please move to the next question.

Speaker #1: Yes, ma'am. Our next question comes from Jing Wang with CIC. Please go ahead.

Helen: Thank you. Operator, please move to the next question.

Helen: Yes, ma'am. Our next question comes from Jing Wan with CICC. Please go ahead.

Speaker #9: Thank you .

Alicia Xu: ????????????????????????AI?????????????????AI?????????????????????????????????????????????????????AI??????

Speaker #6: The AI Xiang . Ying Zhang . AI Jing . You . AI . You . Token . I will . AI . PDF .

Fu Sheng: ????Tim???????????AI????????????????????AI?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI??????????????????????????????????????????????????????????????????????????????????????????????????????????????AI????????????????????????????????????????????????????????????Token?????????????????????????????????????????????????????AI????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI???????????????????????????????PDF????????????????????????????????????????????????????????????????????????????????????????????????

Speaker #6: A short woman.

Speaker #2: Thank you, operator. Please move to the next question.

Speaker #1: Our next question comes from Gwen Peng, Jin Zhen from Zealand Securities. Please go ahead.

Helen: Thank you. Operator, please move to the next question.

Helen: Our next question comes from Guangpeng Zhan from CLAN Securities. Please go ahead.

Speaker #11: AI . Ma .

Speaker #2: No .

Speaker #11: Why? Are you?

Thomas Ren: ?????????????????

Fu Sheng: ???

Helen: ???

Thomas Ren: ?? ??????

Fu Sheng: ?????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Speaker #4: Here . Woman . Hong Kong . You are . The . Woman . On the . Table . Woman . The . AI .

Speaker #4: You .

Speaker #2: Thank you. Operator, please move to the next question.

Speaker #1: next question comes

Speaker #1: From Yong Peng: Our dialogue with Guotai Haitong. Please go ahead.

Helen: Thank you. Operator, please move to the next question.

Helen: Our next question comes from Yangpeng Diao with Guotai Haitong. Please go ahead.

Speaker #12: You . The .

Fu Sheng: ????????????????????????????????????????????????????????????????????????????????????????????????

Speaker #4: Xiang . A . You . Woman . Zhong Hua . Xiaoyi . Woman . You . Are also . A .

Fu Sheng: ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????A??B???????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Speaker #2: Thank you, Operator. Please move to the next question.

Speaker #1: Absolutely. And our final question today comes from Cheng Li with Guodian Securities. Please go ahead.

Helen: Thank you. Operator, please move to the next question.

Helen: Absolutely. Our final question today comes from Cheng Ru Li with Huayuan Securities. Please go ahead.

Thomas Ren: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI????????????????????????????????????????????????????????????????????AI?????AI????????????????

Speaker #11: So that . You . Li . AI . You . For the . You . AI . You .

Speaker #4: Are . The woman . A woman . You . You . Sheng Fu . You .

Fu Sheng: ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI????????????AI????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Speaker #11: You .

Speaker #4: AI . You . You . You . You . Woman . You . Are .

Speaker #2: Okay . Operator . Please check if we have any further questions . If not , end the call .

Helen: Okay, Operator, please check if we have any further questions. If not, we will end the call.

Speaker #1: Yes , ma'am . We have no further questions in queue at this time . But if you'd like to join , please press star then .

Speaker #1: One. I'm sorry. No questions. Ma'am, you may proceed with closing remarks.

Helen: Yes, ma'am. We have no further questions in queue at this time. If you'd like to join, please press star then one. I'm sorry, no questions, ma'am. You may proceed with any closing remarks.

Speaker #2: Okay, and then we can end the call. Thank you so much for joining our earnings conference call today. Thank you so much.

Speaker #1: Thank you . And thanks , everyone , for connecting to today's call . You may now disconnect your lines and have a wonderful day .

Helen: Okay, we can end the call. Thank you so much for joining our early conference call today. Thank you so much.

Helen: Thank you. Thanks everyone for connecting to today's call. You may now disconnect your lines and have a wonderful day.