Question · Q2 2025
Yan Peng Zhao inquired about Cheetah Mobile's strategic investments in the robotics and AI ecosystem, noting the UFactory acquisition and over $100 million in long-term investments on the balance sheet. He asked if there are other similar assets that could be acquired to further drive the company's robotics or AI tool businesses.
Answer
CFO and Director Thomas Ren confirmed that a portion of the long-term investments is strategically allocated to the robotics and AI ecosystem, primarily through early-stage investments to build relationships and gain industry insights. He explained that M&A decisions are based on a systematic evaluation of technical and business synergy, strategic value, cultural fit, and financial valuation. He highlighted that the successful acquisition of UFactory was largely due to a strong alignment in vision and culture, emphasizing a shared mission to solve real-world problems with robotics. He concluded that while the long-term investment portfolio offers strategic options, any future acquisitions would undergo rigorous assessment to ensure alignment and value creation, similar to the UFactory deal.