Question · Q2 2025
Thomas Zhang asked about the sustainability of Cheetah Mobile's internet business growth in the second half of 2025, key revenue and profit drivers, and the normalized revenue and profit margin levels for the internet business, excluding new AI tool contributions.
Answer
Chairman and CEO Fu Sheng and CFO and Director Thomas Ren explained that the internet business's growth is sustainable, driven by a shift to a user-paid subscription model, product refinement, stable partnerships, and new customer acquisition channels. They anticipate continued healthy absolute revenue and profit, with internal targets for growth rate and profit margin to exceed last year's levels, contingent on channel expansion and AI agent technology integration. They believe the 2C internet business has room for profit margin improvement, acknowledging potential short-term impacts from AI upgrades and product mix fluctuations. The internet business is expected to remain a stable cash flow contributor.