Vicky Wei

Vicky Wei from Citi inquired about Zhihu's AI progress, specifically the penetration rate of Zhihu Zhida and the broader integration of AI within the Zhihu community.

Answer

CEO Zhou Yuan detailed that Zhihu Zhida's penetration rate exceeded 15% in Q3 2025, nearly quadrupling year-over-year, reflecting strong user endorsement of AI+ community strategy. He outlined plans for full AI search augmentation by late November, new pilot features like cross-topic content aggregation, and AI Copilot tools for content creation, which saw over 20% adoption by Q3 end. Future plans include multi-model content conversion and AI-powered daily briefings to enhance content consumption and distribution.

Vicky Wei from Citi asked for an update on the user metrics for Zhihu's AI product, management's perspective on the value of user-generated content, and the associated opportunities and challenges.

Answer

CEO Zhou Yuan stated that the AI product's penetration within the community continues to grow and its definition is evolving beyond simple AI search to encompass AI capabilities across diverse community scenarios. He emphasized that the value of human-generated content is "trust," which he called the "gold standard" in the AI era. The key opportunity lies in scaling this trust, guided by a formula of "trusted content times expert network times AI capabilities."

Vicky Wei from Citi asked management to share their thoughts on the shareholder return program for the current year.

Answer

Founder, Chairman & CEO Zhou Yuan affirmed Zhihu's commitment to enhancing shareholder returns, announcing that the board had approved a new 2025 buyback plan. The plan authorizes the repurchase of up to 10% of the company's issued and outstanding shares, which he noted underscores management's confidence that the current share price does not reflect the company's full value.

Inquired about the membership business, including the competitive landscape, business strategy, user behavior for YinYin stories, and an update on the IP operations business.

Answer

The CFO, Wang Han, stated that Zhihu remains a leader in the short story segment. The strategy includes separating story content into a standalone app, YinYin, to improve user experience, which has seen strong MAU growth. The IP operations business is succeeding, with the short drama 'Zhi Bi' becoming a top revenue-sharing drama, increasing the value of Zhihu's IP copyrights with major video platforms.

Vicky Wei from Citi inquired about the third-quarter outlook for the Youdao Ling Shi business.

Answer

Senior VP Peng Su reported that Youdao Ling Shi's Q2 revenue grew approximately 30% year-over-year, with a record-high retention rate exceeding 75%, driven by the Confucius large language model. He outlined plans for H2, including expanding the AI essay grading feature to English and launching a new AI tutoring service, expressing confidence in maintaining growth momentum.

Vicky Wei of Citigroup inquired about the business outlook for the second half of 2024, seeking details on both the core power bank business and new initiatives, and asked about the margin profile for the rapidly growing 'other revenue' segment.

Answer

Mars Cai, Chairman and CEO, addressed the outlook, noting a challenging market with no clear rebound signs in July but expressed confidence in long-term strategies like network partner expansion and new ventures. CFO Maria Xin added that the new renewable energy initiative is at breakeven and targets an industry-standard gross margin of 8-10% and a net margin of 3-5% as it scales.