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CFO Sam Fan stated that strong operating leverage drove a 46% increase in gross profit. He expects the gross margin to continue improving, reaching around 37% by Q4 2025, and reiterated the 40-45% mid-term target. OpEx is expected to decline YoY in H2. Fan expressed confidence in achieving a 10% adjusted operating margin in Q4 2025 and maintained the 15-20% mid-term target. Regarding shareholder returns, he confirmed the repurchase of US$100 million in shares in Q2, with US$84 million remaining under the current program.

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Rui Chen, Chairman and CEO, explained that Bilibili's focus on high-quality content is driving record user engagement, with daily time spent reaching 108 minutes. He noted that users are increasingly willing to pay for quality, evidenced by 32 million monthly paying users and a 200% YoY increase in revenue from fan charging programs. Regarding AI, Chen highlighted that Bilibili's vast library of high-quality Chinese video content serves as a unique and valuable asset for training AI models, which will enhance commercialization and content discovery.

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CEO Rui Chen, interpreted by Executive IR Director Juliet Yang, outlined a 2025 strategy focused on the 'content + community' model to expand margins and profitability. Chen emphasized that high-quality content is central, highlighting its ability to transcend economic cycles. He detailed a three-pronged approach: leveraging high-quality PUGV content, developing self-owned IP assets like 'A Mortal's Journey', and capitalizing on the combination of AI with Bilibili's unique data assets of video, comments, and bullet chats, which he described as a 'gold mine' for training cost-effective AI models.

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CEO Rui Chen, with interpretation by Juliet Yang, acknowledged the government's encouraging policies but stated it will take time for their effects to materialize. He affirmed that while an improving economy will benefit Bilibili, the company's primary focus remains on its own internal execution and long-term development. The company is not factoring a drastic economic improvement into its immediate plans but is focused on improving its own products and business model to drive growth.

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EVP Rong Luo stated that while monetization is in early stages, AI search can monetize previously difficult keywords. He highlighted a long-term strategic shift from CPC to a higher-ceiling CPS model, enabled by agents and digital humans. Luo reiterated that user experience remains the priority, delaying large-scale monetization and pressuring near-term margins.

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EVP Dou Shen attributed the 42% year-over-year AI Cloud revenue growth to surging industry demand for Gen AI and foundation models. He noted that the majority of enterprise cloud revenue is subscription-based, supporting sustainable growth, and that the segment's non-GAAP operating margin is now in the teens. Regarding chip restrictions, Shen emphasized that Baidu's full-stack AI capabilities and flexibility in using various chip solutions allow it to build strong applications, with confidence in the long-term viability of domestically developed chips.

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Dou Shen, EVP of Baidu AI Cloud Group, attributed the 42% year-over-year growth to surging demand for Gen AI and foundation models. He noted that enterprise cloud, primarily subscription-based, forms the majority of AI Cloud revenue, with Gen AI-related revenue seeing triple-digit growth. Shen stated the AI Cloud's non-GAAP operating margin is now in the 'teens' and expanding. Regarding chip restrictions, he emphasized that Baidu's full-stack capabilities enable the creation of strong applications, and the company is confident in the long-term potential of domestically developed chips.

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EVP Rong Luo stated that 22% of search result pages now feature AI-generated content and the focus is on creating personalized experiences with diverse formats like videos and agents. He highlighted positive user metrics, including a 2% year-over-year increase in search queries per user in December. Luo positioned Baidu Search as an evolving integrated platform, distinct from simple chatbots, that leverages its large user base and deep language understanding.

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Interim CFO Junjie He stated that the AI-focused strategy remains the core priority. He acknowledged that the online marketing business will face near-term pressure due to the renovation of search without immediate monetization. Consequently, near-term margins will be in a 'period of adjustment' as the company continues to invest in search, ERNIE, and autonomous driving. For 2025, the focus will shift to optimal resource allocation to high-growth opportunities.

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Executive Chairman Cussion Kar Shun Pang responded, expressing encouragement over the solid performance. He highlighted the robust music subscription business, steady ARPPU growth, and strong traction in non-subscription services like advertising and concerts. Pang stated that while concert revenue can fluctuate, the company is optimistic about long-term growth and now expects full-year 2025 revenue to be higher than previous expectations, with increased potential for bottom-line improvement.

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Executive Chairman Cussion Kar Shun Pang expressed confidence in continued high-quality growth, noting the subscriber base has surpassed 124 million. He highlighted a steady upward trend in ARPPU and strong traction in non-subscription services like advertising and concerts. Pang stated that full-year 2025 revenue is now expected to exceed previous expectations, with further room for bottom-line improvement.

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CEO Liang Zhu affirmed confidence in growing both subscribers and ARPU. He stated that TME aims to maintain its current pace of net additions without resorting to aggressive, low-price promotions. For ARPU growth, the strategy involves both modestly increasing the price of the basic subscription and enhancing the premium SVIP offering, which saw significant growth in Q4. He also noted that user time spent on the platform is at a historical high, supporting retention.

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An executive explained that the strong Q3 result was due to a stable operational strategy, expanded subscriber privileges, and successful festival campaigns. For Q4 and Q1, the company will maintain tight control over marketing to foster healthy, sustainable growth and emphasize content value. The strategy involves a combination of standard and SVIP tiers, enhanced by improved content and sound quality, to drive monetization and retention.

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COO Jianfeng Xu outlined a three-part strategy anchored on Yalla's core advantages: deep localization based on a decade of experience in the Middle East, efficient user acquisition leveraging its existing product ecosystem for low-cost targeting, and strong community operations with tailored in-game events and dedicated user care.

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CEO Tao Yang stated that the company is accelerating its buyback program and has raised the 2025 target from an initial $28 million to $50 million. Yang emphasized the commitment to shareholders by highlighting the decision to cancel all shares repurchased this year. He promised another update next quarter on whether to increase the buyback scale further.

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Chairman and CEO Tao Yang explained that Yalla is already using its dedicated algorithm team and proprietary AI platform to enhance products and boost efficiency. He emphasized that the company views AI as a key catalyst for future innovation and is actively exploring new use cases to deepen user engagement and maintain market leadership in the MENA region's digital entertainment market.

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CEO Zhou Yuan responded that the company's priority is ecosystem quality over user scale, which has remained stable. He highlighted that key user health metrics have improved, with interactions per creator and per post surging over 45% and 95% YoY, respectively. He also mentioned positive feedback from the recent Zhihu Youth Knowledge Conference and feature upgrades to 'Column and Idea' to better support professional content creators.

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Founder, Chairman & CEO Zhou Yuan emphasized that the company's priority is the quality of its ecosystem rather than raw user scale. He reported that key user health metrics, such as engagement and core user retention, have continued to improve. He also highlighted significant year-over-year growth in professional creators and the positive impact of upgraded 'column' and 'idea' features on content creation and interaction.

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CEO William Ding, via interpreter Bill Pang, stated that fluctuations in operating metrics are normal for season-based games and help solidify the user base. He confirmed that starting from Season 3, the update interval will be shortened from three to two months. Additionally, NetEase will launch 'Marvel Rivals' eSports events in May to build its ecosystem, which is expected to drive gradual improvement in all in-game metrics.

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Executive Bill Pang, translating for CEO William Ding, responded that the overseas strategy remains focused on supporting overseas studios to create high-quality, creative content tailored to local market demands. On the second point, he confirmed that AI is already significantly increasing R&D efficiency and that the company is exploring its use in many other applications, such as improving user engagement and onboarding, expressing a very positive outlook on AI's contribution to the gaming industry.

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Bill Pang, an executive at NetEase, explained that 'Where Winds Meet' for PC is scheduled for a late December launch, with the mobile version following shortly after. The monetization will focus on cosmetic items and battle passes to foster a healthy social environment. Regarding 'Justice Mobile', Pang noted strong player stickiness post-anniversary and a focus on balancing commercialization with user experience. For 'Eggy Party', he acknowledged short-term monetization challenges but highlighted its high DAU and long-term potential, viewing it as a valuable learning experience for the franchise.

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Youqiao Duan, SVP of Membership Business, stated that premium content since late November 2024 drove a significant turnaround in subscribing members. He highlighted key initiatives like reclassifying membership plans into individual/family categories, cracking down on password sharing, and adding valuable benefits for Diamond members. The 2025 strategy will focus on a stable supply of premium content, building a mass-market service to grow sales and retention, optimizing the product system for different content types including mini-dramas, and strengthening the overall brand value.

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