Mingran Li

Mingran Li from CICC inquired about the recovery progress in Tuya's overseas markets, particularly North America, following adjustments to global tariff policies. He also sought an update on the latest advancements in AI technology, specifically its commercialization efforts.

Answer

Alex Yang, Director, Co-founder, COO, and CFO of Tuya, stated that temporary one-year tariff terms between China and the US provide certainty, potentially positively impacting next year's demand, though customers are still assessing Q4 2025 sell-throughs. For AI commercialization, he highlighted seamless integration across PaaS, solutions, and SaaS, noting breakthroughs in new sectors like AI toys, which have opened a significant new addressable market with positive end-user feedback and reorders. He also emphasized the AI Assistant's role in attracting new home users.

Mingran Li asked for insights into the recovery progress in overseas markets, particularly North America, following adjustments to global tariff policies, and sought an update on the latest advancements in Tuya's AI technology commercialization.

Answer

Alex Yang, Co-founder and CFO, stated that the temporary one-year terms between China and the US provide stable cost levels for merchants, which is a positive for next year's demand, though current Q4 promotion season sell-throughs will inform 2026 planning. On AI commercialization, Yang highlighted that AI is offered across all categories and seamlessly integrated into Tuya's PaaS, Solutions, and SaaS. He noted breakthroughs in new sectors like AI toys, which represent a large, previously untapped market, with positive end-user feedback leading to reorders. Additionally, the new AI Assistant aims to enhance the 2C experience and attract new home users.