Harry Zhao

Harry Zhao inquired about the demand outlook for both domestic and international markets, identifying key downstream sectors driving growth. He also asked for updates on AI applications, specifically which scenarios are expected to contribute meaningful revenue in the near term. Finally, he sought the profitability outlook for Q4 and the full year 2026 at both operating and net profit levels.

Answer

Tony Zhao (Founder, Chairman, and CEO) addressed the demand outlook, noting continued recovery in China with growth in social entertainment, education, IoT, and digital transformation, while international markets, particularly live commerce, showed slightly faster growth. For AI, he clarified the focus on conversational AI (real-time human-AI voice interaction) and identified call centers, education, and companionship toys as advanced use cases moving to production, expecting sizable conversational AI revenue in H1 next year and meaningful contribution by end of next year. Jingbo Wang (CFO) provided the profitability outlook, expecting GAAP operating profit and further net profit growth in Q4, and targeting GAAP operating profit for the full year 2026 with year-over-year net income improvement.

Harry Zhao inquired about Agora's demand outlook across domestic and international markets, key downstream sectors driving growth, the latest developments in AI applications, potential revenue contributions from AI in the near term, and the company's profitability outlook for Q4 2025 and the full year 2026 at both operating and net profit levels.

Answer

CEO Tony Zhao detailed demand trends, noting recovery in China (social entertainment, education, IoT, digital transformation) and faster growth internationally (live commerce). He clarified Agora's focus on conversational AI, highlighting its complexity compared to broader voice AI, and identified call centers, education, and companionship toys as advanced use cases, expecting sizable AI revenue in H1 2026 and meaningful contribution by year-end. CFO Jingbo Wang projected GAAP operating profit and sequential net profit growth for Q4 2025, targeting full-year GAAP operating profit and year-over-year net income improvement for 2026.

Harry Zhao from Deutsche Bank requested more insight into So-Young's future financial outlook beyond the provided Q1 2025 revenue guidance.

Answer

CFO Nick Zhao acknowledged that near-term profitability may be affected by investments in expanding the new aesthetic centers. However, he emphasized that this is a critical part of the long-term vertical integration strategy, which creates a diversified model for financial stability. Mr. Zhao assured that the company maintains a healthy cash flow and a disciplined capital allocation approach, focusing on balancing growth with profitability to drive long-term shareholder value.

Harry Zhao from Deutsche Bank asked about the competitive advantages So-Young possesses in its upstream business segment compared to traditional upstream medical aesthetic companies.

Answer

CEO Xing Jin, via an interpreter, highlighted So-Young's unique ecosystem-based operational advantage. He cited the rapid growth of their injectable product 'Elasti' and the successful launch of the 'Truelift' ultrasound device as evidence. The company leverages its platform and self-operated clinics to provide targeted marketing and promotional support, turning partner products into bestsellers. This integrated approach, from manufacturing to end-consumer, gives them a distinct edge over traditional players.