Cheetah Mobile Inc. (CMCM) Q2 2026 Earnings Report, Transcript and Summary

Welcome to China Mobile's Second Quarter 2026 Earnings Conference Call. With us today our company's Chairman and CEO, Mr. Fu Sheng; and our company's Director and CFO, Mr. Thomas [ Ren ]. [Operator Instructions] Please note that the management team will be presented by an AI agent. Before we begin, I refer you to the safe harbor statement in our earnings release, which also applies to our conference call today, and we will make forward-looking statements. At this time, I would turn the conference call over to our Chairman and CEO, Mr. Fu Sheng. Please go ahead, Mr. Fu.

[AI Agent] Hello, everyone. Thank you for joining Cheetah Mobile's Second Quarter 2026 Earnings Call. This quarter, we made further progress in changing the mix and improving the quality of our business. Our newer AI businesses are growing quickly and becoming a much larger part of the company. At the same time, our Internet services business remains profitable and is becoming more efficient. Today, I would like to focus on 3 areas. The accelerated growth of our services of cloud and AI infrastructure business, the progress we are making in robotics, especially in smart mobility, and the continued improvement in the mix and quality of our business. Cheetah Mobile now has 3 reporting segments: Internet services, Robotics and others, and Global Enterprise Services. Global Enterprise Services include services of cloud and AI infrastructure and our advertising agency services. Let me start with services of cloud and AI infrastructure business, because it is becoming 1 of our most important growth drivers. In the second quarter, services of cloud and the AI infrastructure revenue were RMB 59 million, up 83% year-over-year and 26% quarter-over-quarter. It accounts for 22% of total revenue. The growth in this business is accelerating. Its year-over-year growth rate increased from 68% in the first quarter to 83% in the second quarter. Gross billings, which reflects the total value of services sold through our company exceeded RMB 500 million during the quarter, compared with about RMB 200 million in the same period last year and about RMB 300 million in the previous quarter. This shows that the scale of customer demand is growing critically. Based on our current business momentum, we expect gross billings from services of cloud and AI infrastructure to exceed RMB 2 billion in 2026, representing year-over-year growth of over 100%. We also expect related revenue to exceed RMB 200 million to exceed representing year-over-year growth of over [ 59% ]. We operate as a connection point between leading global clubs and AI ecosystems and enterprises expanding overseas as enterprises use a broader range of clubs and AI services, the ability to connect and manage these resources is becoming increasingly important. Accessing a model is only the first step. Companies also need to select right models and integrate them into daily workflows, manage their computing and total cost, and keep their services running reliably. Through our services, we connect customers with cloud infrastructure and model inference services from leading global providers, including Amazon Web Services, Google Cloud, and Microsoft Azure. We also support deployments, cost control, and daily operations. I have personally spent a great deal of time talking with Chinese entrepreneurs and management teams about how to use AI in practical ways. These conversations have shown us that many companies want to use AI, but need simple and effective tools that can truly improve their work. Our goal is not to join the costly race to build foundation models. Our goal is to help these companies make effective use of leading AI models and turn AI into the real productivity. We will stay disciplined in how we invest and focus on real customer demand, service quality, repeat business, and healthy returns. AI infrastructure also brings us closer to the daily needs of enterprise customers Today, we may help a customer with cloud resources, computing power, or AI model services. Over time, we may also serve the same customer with AI agents, software tools, and other services. This gives us a path to deepen customer relationships and expand the services we provide over time. Now let me turn to Robotics. Revenue from Robotics and others was RMB 55 million, up 73% year-over-year and 6% quarter-over-quarter. It accounted for more than 20% of total revenue. During the second quarter, we began shipping Smart Mobility products for sale in Europe for product mobility and in China. As a result, smart mobility began contributing revenue during the quarter. Our robotics arm business continued to grow. While revenue from our voice robot business was broadly stable within robotics, we see smart mobility as a potential growth engine. The long term need is significant as more people face mobility challenges. And once you travel independently, safely, and with dignity, we are designing our products around these needs. Our smart mobility products weighing less than 16 kilograms can be folded for easier transport, are designed to support air travel, and can operate for approximately 10 hours under specified conditions. These features help users travel independently and with confidence in daily life and on longer journeys. To address unmet needs, we incorporate autonomous [ capabilities moving abilities ] developed through our Robotics work into proven electric mobility products. This helps us control product costs while meeting customers' needs for safety, reliability, and ease of use. We developed this product with established electric mobility manufacturers, combining our robotics capabilities with their products and market expertise. Some companies in this field have spent several years and raised substantial capital to bring similar products to market. By reusing our existing robotics capabilities and working with established partners, we moved from project initiation to initial mass production and shipments in a little over a year. With cumulative investment in the range of several tens of millions of RMB, this reflects our disciplined and capital-efficient approach to product development. This business is still at an early stage. Our priorities are to deliver reliable products, meet local standards, and earn the trust of customers and partners. We will move step by step and build the business on solid commercial results. More broadly, we have built a shared robotics platform that brings together voice interaction, autonomous mobility, and robotic arm capability. We do not view our voice robots, smart mobility products, and robotic arms simply as separate product categories. They are different applications of the same underlying platform. We [ recently ] adapt its capabilities to address specific customer needs and solve real-world problems rather than trying to build an all-in-one robot today by applying and demonstrating these capabilities through individual products. This approach could allow us to bring these capabilities together in more general purpose robots. This is our step-by-step path. We will continue to improve and move the robotics and other segment toward breakeven. Taking together revenue from services of cloud and AI infrastructure and our Robotics and other segment, accounted for about 43% of total revenue this quarter compared with 38% in the previous quarter and 22% in the same period last year. The share of our revenue has roughly doubled in 1 year. To me, this is the most important change taking place at Cheetah Mobile. Cloud and AI infrastructure connects enterprises, expanding overseas with global cloud and model ecosystems, while robotics brings AI into the physical world. Together, they are building meaningful new sources of revenue and connecting Cheetah Mobile with long-term demand for AI computing and real-world AI products. Our established businesses continue to provide a solid base. The adjusted operating margin of our Internet Services segment improved to 19.4% this quarter compared with 11.3% in the first quarter and 14.1% in the same period last year. This reflects our continuous focus on efficiency and the quality of revenue. We will keep the Internet business stable, profitable, and cash-generative. Looking ahead, changes in our advertising agency business, which is included in the Global Enterprise Services segment may continue to affect our total revenue and bottom line in the near term. However, revenue excluding advertising agency services increased approximately 10% year-over-year and 5% quarter-over-quarter in Q2. We believe this underlying growth, together with the continuous shift in our revenue mix, better reflects the progress of our business transformation. Our priorities are clear. We will help more companies go global and use leading AI models to improve productivity. We will turn the early progress in smart mobility into more shipments, more customers, and repeat business. We will also keep our Internet and Global Enterprise Services segments profitable and efficient on an adjusted operating basis while continuing to improve the economics of the Robotics and other segments. Our job now is to turn this change in our revenue mix into sustainable growth and better returns for our shareholders. Thank you to our employees for their hard work, and to our customers and partners for their trust, and to our shareholders for their continuous support. I will now hand the call over to our CFO [ Tom ], who will discuss our financial results in more detail.

[AI Agent] Thank you, [ Sheng ]. Hello, everyone. Let me begin with our overall performance. For the second quarter, total revenue was RMB 766.1 million, representing an increase of 2.7% quarter-over-quarter and an increase of 9.9% year-over-year. The year-over-year decline was primarily due to lower revenue from advertising agency services within the global enterprise services. Advertising agency services revenue decreased [ 17% ] year-over-year and 15.0% quarter-over-quarter to RMB 22.0 million, mainly due to changes in review policies implemented by a major global advertising platform. Its contribution to total revenue declined to 8% from 25% in the same period last year. Excluding advertising agency services, revenue was RMB 244.1 million, increasing approximately 10% year-over-year and 5% quarter-over-quarter. This reflected continued growth in services, our cloud and AI infrastructure business, robotics and others and Internet value-added services. Operating loss was around RMB 73.6 million compared with RMB 28.3 million in the first quarter of 2026 and RMB 11.1 million in the same period last year. On a non-GAAP basis, operating loss was RMB 25.6 million compared with RMB 22.5 million in the first quarter. If compared with a non-GAAP operating loss of RMB 2.1 million in the second quarter of 2025, the year-over-year increase primarily reflected lower advertising agency services, revenue within Global enterprise services. The sequential movements in our non-GAAP operating results reflected higher adjusted operating profit from Internet services offset by lower adjusted operating profit from Global Enterprise services primarily due to the lower advertising agency services revenue as well as a wider adjusted operating loss from robotics and others as we continue to invest in the development and commercialization of our robotics businesses. Turning first to Internet services. Revenue from Internet services decreased 17.3% year-over-year and 3.4% quarter-over-quarter to RMB 130.5 million. Within the segment, Internet value-added services revenue increased 6.7% year-over-year and 2.9% quarter-over-quarter to RMB 101.2 million accounting 77.6% of segment revenue. This growth partially offset the decline in online advertising revenue, which decreased 53.53% year-over-year and 20.2% quarter-over-quarter to RMB 29.3 million, with Internet value-added services now accounting for nearly 70% of segment revenue and continuing to grow both year-over-year and sequentially. Adjusted operating profit increased 14.2% year-over-year and 67.2% quarter-over-quarter to RMB 25.4 million. Adjusted operating margin expanded to 19.4% from 14.1% in the same period last year, and 11.3% in the first quarter, including the adjusted operating profit and adjusted operating margin improved despite lower segment revenue reflecting the continued growth of Internet value-added services and stronger operating efficiency. Turning to robotics and others. Revenue increased 72.5% year-over-year and 6.4% quarter-over-quarter to RMB 54.5 million, accounting for 20.5% of total revenue. The growth was due to an increase in sales volume of our robotic products. The year-over-year increase benefited from the contribution of new factory acquired by the company on July 29, 2025. Adjusted operating loss was RMB 34.0 million, narrowing by 35.5% from RMB 52.7 million in the same period last year and widening from RMB 26.9 million in the first quarter. This sequential widening primarily reflected our continuing investment in development and commercialization of our robotic businesses. As [indiscernible] discussed, smart mobility is a newly launched product line and remains in the investment phase. Our robotics businesses are at different stages of product development and commercialization now. Let me turn to Global Enterprise Services. Revenue from this segment decreased 23.3% year-over-year but increased 11.5% quarter-over-quarter to RMB 81.1 million. The year-over-year decline was mainly due to a 70.0% decrease in advertising agency services revenue to RMB [ 2,002 ] million. On a sequential basis. Advertising agency services revenue decreased 15.0%. This was partially offset by continued strong growth in services of cloud and AI infrastructure. Revenue from services of cloud and AI infrastructure increased 83.1% year-over-year and 26.2% quarter-over-quarter to RMB 59.1 million, driven by growing demand from enterprises, expanding overseas for cloud resources, computing power, and AI model services. Services for cloud and AI infrastructure accounted for 72.8% of global enterprise services and 22.2% of total revenue compared with approximately 11% of total revenue in the same period last year. Adjusted operating profit from global enterprise services, it was CNY 94.3 million, decreasing 80.7% year-over-year and 32.0% quarter-over-quarter. The decline primarily reflected lower advertising agency services, partially offset by continued growth of services, our cloud and AI infrastructure. Importantly, Global Enterprise Services remained profitable on an adjusted operating basis. As of June 30, 2026, we have CNY 1,271 million or USD 187.3 million in cash and cash equivalents. This strong cash position provides us with flexibility to invest prudently in our AI and robotics businesses. Going forward, as we think about the results, reflecting continued progress in evolving our business mix, total revenue turned to sequential growth. Our revenue, excluding advertising agency services, increased both year-over-year and quarter-on-quarter. Internet services delivered solid profitability. Global Enterprise Services remained profitable. Despite the decline in advertising agency services, robotic and others maintained strong revenue growth. As we continue to invest in the commercialization of smart mobility. Thank you. We are now ready to take your questions.

[AI Agent] Hello, everyone. For today's call, [ Maddy Fong ] will answer questions in Chinese and AI agent will translate management's comments into English in another line. Please note that the translation is for convenience purposes only. In the case of any discrepancies or management's statements in Chinese for pre-work, if you are unable to hear the Chinese translation, a transcript in English of this call will be available on the company's IR website within 7 working days. Thank you so much.

[AI Agent - Maddy Fong] [Operator Instruction]. [indiscernible] for analysts [indiscernible] can ask questions in Chinese. Due to time, we only arranged communication with analysts this time. We will arrange some communication with investors after the meeting. Please understand. Thank you very much. The first question, please from Jefferies, Thomas Chong.

[indiscernible] in terms of the performance as [ whole ] as a product, are there any plans? [indiscernible]. We still have a few minutes. Feel free to share your thoughts, comments. Please unmute. We still have a few minutes. Any questions? In future, the company will -- in the product aspect, what are plans combines expected the growth sale throughout in banking.

[AI Agent] Okay. Let me answer. Our company smart wheel has started to contribute revenue this quarter. First of all, why did we make the smart wheelchair? First of all, from the technical stack, from the technical accumulation, we have been making robots for almost half a year and we have made great progress in wheel navigation, automatic obstacle avoidance, environmental perception, or in today's popular word, embodied intelligence, we have made great achievements. And for intelligent wheelchairs, in fact, in terms of technology transferability, it is very high. In other words, we do not regard intelligent wheelchairs as wheelchairs, but as mobile robots. Therefore, the biggest feature of our intelligent wheelchair is to help people sitting in wheelchairs achieve assisted driving. The experience brought by this intelligent wheelchair to users is unprecedented. So indeed, to be honest, our progress is quite fast, and it has already started selling overseas. Do I need to disclose the sales revenue? Well, we are not ready to disclose that yet because this project is still in the early stages. It has only been a year since the project was initiated and entered mass production. The progress has been quite fast. In terms of technology, various certifications are required, especially if it is for a special group. We have spent a lot of time on this aspect overseas. Overall, I think our idea is that with the advent of AI, almost all products can be redefined. I think the significance of intelligence lies in this. Regardless of the pace of R&D, the investment in R&D costs has been highly efficient. Thanks to our past technological accumulation, we have tens of thousands of robots operating in various environments, conducting autonomous obstacle avoidance. Therefore, we have extensive technological reserves in this area. Additionally, we have observed that in recent years, this market has gained popularity. Some VC funds are investing in startups. I think our biggest difference from others in making smart wheelchairs is that we don't simply accumulate technologies. We accumulate sensors, chips, and computing power instead within the cost acceptable to users. We aim to achieve a highly cost-effective assisted driving capability. This was also the positioning of our product at that time. By the way, let me take this opportunity to advertise our product is made a full carbon fiber and disposable. Earlier this year, I had a dislocated hip ball [ scheme ]. During the 3 months, I used my own smart wheelchair. I used it around my home and even took it on planes, traveling to Hong Kong and Singapore all by myself. Therefore, I believe its application prospects are quite broad. As for how large this business can grow, I suggest you take a look. Actually, the wheelchair market is quite large. We believe that the high-end wheelchair market is worth over USD 100 million. Our smart wheelchair combines the lightweight and foldability of today's electric wheelchair while also enhancing comfort and introducing intelligent features. Overall, we are very excited about this product. But since we are currently focusing on the overseas market, there are channels and certifications to consider. I won't go into specific details here. Yes, it should be more than a business scale that everyone is very enthusiastic about now. And we are also cooperating with the world's largest or top traditional wheelchair manufacturers. We have already cooperated formally. They also highly recognize our product. That's about it. That's all for my sharing. [AI Agent]

[AI Agent - Maddy Fong] Okay. Now let's move on to the second analyst question. It is from Mr. Li Cheng Ru of Guoyuan Securities.

My question is about the AI infrastructure business. This business continues to grow rapidly in this quarter. So could the management please provide further information what are the company's core competitive advantages in this field compared with other computing power and AI infrastructure service providers? In terms of clients, technology capabilities, or cost efficiency, what are our differentiated advantages? Additionally, how do you view the client demand in the coming quarters and the sustainability of revenue growth?

[AI Agent] All right. Let's answer this question. We are also in Silicon Valley looking at many AI infrastructure here, the infrastructure and technical facilities. Let me answer your question in reverse. First, I think today's AI infrastructure is far from being in place. Demand is still growing rapidly. The number of AI token calls today may be similar to that of generators 100 years ago when we may have thought AI was already very popular. But in fact, it will have a huge impact across all walks of life. As China's open source large language models become more and more powerful, we are also seeing more and more clients willing to use AI, and they have very strong demand. So I am very optimistic about the market demand. This is the first point. Second, compared with other companies, our advantage, I think the biggest advantage is customer-oriented. Some investors ask me, "Why do I make the use of video accounts?" Essentially, the account itself is the company's asset. And the second is that the core of my doing these accounts is to find our target customers. And then we have launched from training to landing to the entry, first guide STE, we are all practicing. I think our real competitive advantage over our competitors is that we have a certain influence to find our target customers. Second, we started to do AI for all employees 2 or 3 years ago. And last year, all of us had to write code. At that time, the LLM wasn't as good as it is today, but we have already explored the experience. So today, we have turned this experience into a training course for our clients and continue to train them. The training process is also a process of finding target customers. The training itself enhances their AI capability, and then we assist them in implementing AI locally. For example, we don't just resell APIs or resell business but we also provide services, including a series of enterprise end products based on these services, such as the Lobster we worked with on [ EC ] recently. We also have programming tools like Claude Code and EasyCode, and we also provide AI scoring for each position of our clients. The AI scoring of your entire organization, which we call [ Eagle Effect ], to help you with the diagnosis of AI in your organization it's a whole set of tools. So I think our biggest competitive advantage is that we have highly differentiated services. The second advantage is that we cooperate with Amazon and Google, including Oracle, for a long time, especially before we take on a client. We were actually one of Amazon's largest clients among Chinese companies at that time. So we have a deep relationship and are also very familiar with their entire technical system. In addition to providing the AI training services just mentioned, we help companies deploy AI clouds they [indiscernible], including Alibaba or Tencent in China, we have the technical capabilities to help you implement it. Therefore, we have our own technical accumulation in this regard. Our delivery capability is also quite strong. It does take time and manpower to continuously accumulate. Moreover, these overseas cloud vendors have such a large revenue growth rate which in turn proves that our space is still very large. Although our revenue is only 5% [Audio Gap] We have a revenue of $500 million, but we think this only accounts for a very small share of the vendor we cooperate with. So our idea is to help Chinese companies, whether they are going global or landing, if we provide the ultimate service for AI voice, I believe there is still huge growth potential. Thank you.

[AI Agent - Maddy Fong] The next question is from of [ May San ] of Haitong International.

I would like to add our high-growth business. Currently, there are 2 parts, robotics and AI. They are maintaining rapid growth. And as we [indiscernible] the overall market cap is below the net asset value. So I would like to ask the management, how do we view the current valuation gap between the company and our business, [ that includes revenue ]. Will we consider introducing strategic investment from external companies or even a spin-off and independent listing to provide financial support for these high-growth businesses or to unlock the business commercial value? Thank you.

[AI Agent] Regarding Jason's question, I'm Thomas and I'll answer it. We understand that investors valuation of our company and the liquidity of stock trading as well as the performance of new businesses in the capital market are a great concern. We are also continuously monitoring the capital market feedback on the company's business transformation and operational progress. For us, the most important focus at this stage is to continue to drive the growth of cloud and AI infrastructure business under robotics and going global enterprise services to improve our operating performance and through more sufficient and transparent disclosure, help investors better understand this business. At the same time, we are also paying attention to the recent connection and service layer of the large model. And in the robotics field, there have been many financings, strategic investments, M&A, and even IPO. This reflects the capital markets' high attention to the related fields. We will also closely monitor the development of the industry and the capital market, actively evaluating various possibilities that can help business development and enhance shareholder value. This includes, but is not limited to, external financing, introducing strategic investors, industrial cooperation, and even adopting more independent capital operation methods when conditions are appropriate. But currently, we don't have specific transactions to announce and any arrangements need to comprehensively consider the stage of business development, strategic synergy, transaction conditions, regulatory requirements, and the long-term interest of Cheetah's shareholders. But what is clear is that the management maintains an open attitude towards various possibilities. And if a suitable opportunity arises, we will seriously evaluate and actively promote it. At the same time, we also pay attention to the trading liquidity of the company's stock, the coverage of research, and market recognition. We will also actively take various measures, including strengthening the disclosure of key game information, strengthening communication with investors and analysts in the United States and other markets to evaluate the capital market tools suitable for the company, and help the market to better understand the company's operating performance and business progress. In summary, the performance of the capital market is actually based on our continuous business growth and profitability. Our current task is still to focus on the Robotics, Enterprise Services, next-generation cloud, and AI infrastructure businesses and make them bigger and healthier. At the same time, we will also actively research various capital market opportunities that support business development and enhance shareholder value.

[AI Agent - Maddy Fong] Okay. The fourth question is from Mr. [indiscernible] Securities.

I'd like to ask about the profitability of the Robotics business, about the -- hello, can you hear me?

[AI Agent - Maddy Fong] We can hear you clearly.

There are already robotics companies in the market that have achieved profitability such as Wukong technology. This shows that the robotics business does not necessarily rely solely on long-term investment. It can also continuously form a sustainable business model. So we'd like to ask how far is the robotics business from breaking even? And when can we achieve a quarterly profit?

[AI Agent] First of all, the profit of [ UB ], I think robots are a very broad concept. And what we are doing is providing robots that can be truly commercialized. If it's a commercial robot that can replace certain jobs, it actually has very high requirements for mechanical durability, product quality, and reliability. When UB can go public, it will also be good for the machinery industry. But I want to say that what we are doing is not the same type of product at all. So I don't think there is such a strong comparability between them. As for how this will develop in the future, we can wait and see. This is the first point. The second point, I don't think we rely on long-term investments in robots. In fact, in some individual items such as our robotic arms, they are already profitable. Some businesses, like commercial reception or delivery robots, have not been commercialized yet. There is a process of market acceptance and maturity. Third, like the upgrade of wheelchairs just mentioned, because we are just starting, the construction of our sales team and subsequent iterations will continue to increase. Of course, from the perspective of a single product, each of our products has sufficient gross profit and we do not use a lower price in the best-selling products to seize market share. We definitely won't do that, but the volume needs to keep growing. And I think we have already achieved a very, very efficient level in the investment in robot R&D. We didn't overemphasize it. We only focus on technology investment, not commercial output. So when do you think I can achieve single machine profitability? I definitely hope the sooner the better. But look at all the real commercial robots today, before landing in commercial scenarios, it's like a 2B business. It needs channels, right? It needs distributors, right? As you just mentioned, like landing and certification, it really takes a certain cycle. But this cycle does not mean that we think as long as we continue to invest, it will naturally succeed one day, right? But what we see now is that the entire business is developing in a relatively way [indiscernible]. I think as for single quarter profit, it is just set as a goal. It may not take long for us to achieve it. But I don't think it's necessary to simply pursue single quarter profit at this stage. I may ensure sufficient gross profit for a single product and continuously expand our market size and the number of real users. I think this is our real core goal because all our current revenue is market-oriented and all our market entities, to be enterprises. So I think as long as we keep going, making profits is just a matter of time.

[AI Agent - Maddy Fong] Our last question is from Mr. [indiscernible].

I would like to ask about the planning of the agent product [ 2 CN ] because Cheetah has developed this before such as EasyCode, [ AI Mind map ], AI code, and other tool-like products. With the rapid development of agent processors, is the company still planning to develop new agents for consumers for AI tool-like products? Which application scenarios will be focused on? How can Cheetah use its past experience in product development, global operations, user growth, and monetization to enhance these aspects? How does the management assess whether a 2C AI product is worth continuous investment? I would like to ask this question.

[AI Agent] You may be concerned about the 2 CN, but today, Cheetah Mobile's 2B business generates the majority of our overall revenue. My view is as follows: First, we believe that the rise of AI today, or its largest real-world application scenario, is currently in the enterprise sector. You've also seen the growth in this area, which is essentially the growth of the enterprise coding market. This has led to a significant increase in its valuation. I think that AI today, as a tool of the productivity revolution, first and foremost, enhances productivity. Therefore, the demand from the enterprise side will be greater. I believe that within these opportunities, including the products you just mentioned, such as AI code and Easy Code, although you can log in, many of our users today are enterprise users. Of course, this doesn't mean we have given up on the advancement and development of soft products. As I mentioned in the last financial report call, our approach is as follow: we will first advance and improve our own soft products. For example, you may be aware of our Kingsoft document today, which is probably the only product that has been consistently profitable since then among all security software. In fact, we have integrated Kingsoft antivirus into Kingsoft document. I suggest you download it on your computer, and then you can directly talk to it about any computer problems without having to open the menu bar. For instance, if your device has insufficient storage or slow memory or even if the printer doesn't print paper, it can help you as we have accumulated tens of thousands of computer issues, which have become part of our ACL part. So the first wave is that we think that truly making the original product is a huge progress. We also disclosed our Internet revenue, right? The business scale is also okay. The second is whether we will pay attention to making a [ CN 2 ] product. I think this is the goal for every product person or it is also our division. But I think making a CN 2 today is different from before. The APT era is completely different now. Regarding what you just mentioned, I have to be honest that I think those experiences are not particularly relevant in today's era. So what are we exploring? We are exploring extremely rapid and lightweight investment, quickly focusing on user demand and rapidly investing to see if we can [ da, da, da ]. You may have noticed that I also mentioned in my video that we are building a negative 3-tier team composed of young people. We have recruited many young people to help us with product innovation. What is 2C? What is the core standard or whether it is worth it or not? I think the standard is very simple. It can form word-of-mouth communication and whether the user retention can be good enough, not like in the past. To be frank, a few years ago, some of our tool products rely more on the skills of delivery and the familiarity with various advertising networks, a lot of promotion was achieved through these means. I think today, due to the new changes brought by AI, we now focus more on word-of-mouth from users. When users use the software, they are willing to use it and recommend it to others. Of course, our investment in the [indiscernible] must be AI-native. It's no longer the case of a large team with many people but rather very lightweight, highly agile, and we call them special forces. One person can quickly achieve the goal. So I think ultimately, only the entire user experience proven by data can determine whether it is a truly good CN product. We are also constantly exploring.

[AI Agent - Maddy Fong] Thank you. Okay. Then today's financial results conference is over. If you have any further questions, feel free to contact us at any time. Thank you.

[AI Agent] Thank you all.

[AI Agent - Maddy Fong] Goodbye.