A：The company's approach focuses on delivering high-quality work and improving the user experience across platforms. It actively explores new opportunities for sustainable, long-term IP-level creation and enhancing the programming experience.

A：The company is focusing on two key areas: consumer products and offline experiences. It plans to leverage its extensive and unique IP connections to improve competitiveness and tap into the volume merchandising market.

A：The company's business outside mainland China is showing strong growth momentum. Subscriber base and revenue from membership services have reached record highs, and it has established a presence in major regions such as Southeast Asia, North America, Japan, Korea, and the Middle East and North Africa.

A：In the content sector, the company has maintained its leadership in the core market and achieved the top position in the total drama score list according to enlightened data. Successes include 'Fields of Glory' and other series achieving high popularity scores, and winning several awards at the Magnolia World drama festival.

A：The company's micro content strategy is performing well, with double-digit sequential growth in average viewing time and unique visitors for 'Labyrinths, a Horse Collection of Art'. The strategy aims to consistently deliver premium micro content through original production and licensing, targeting growth and superior performance across subscriber information, viewing time, user engagement, and retention.

A：A new milestone has been reached with original micro dramas, scoring a peak I authority index of 5500, which is a historical high for the platform. This achievement extended beyond the typical drama audience to attract a younger and more diverse demographic, demonstrating success in developing IP in formats such as micro dramas.

A：The pilot project mentioned generated over RB 28 million in revenue sharing income in their platform, marking the highest for any movie title that year, surpassing box office revenue.

A：The NPA has shown success in delivering top titles with great results. The company had a high monthly long from a video platform, with four original productions achieving record popularity scores and revenues. The animations continue to improve original production probability and were acknowledged with a high population index score in the latest season of the Rank of China 2025.

A：The strategy for long-form content focuses on crafting top-quality, large-scale productions that balance high commercial value with innovation and artistic excellence, ensuring a steady flow of content to engage broad audiences.

A：New titles and drama series include 'A Realistic Theme Drama' from 'A Masterpiece', which generated a significant impact score within four days of its release. Also mentioned is 'Jing Zihu', a key original project that stood out with strong popularity.

A：Anticipated releases in the upcoming first quarter include '8000 Miles of Clouds', 'More BA Yu Leg of the Magnet', 'Born with Black', and 'One Champion Tell Contact'.

A：The focus for micro-cameras is on premiering titles, with the release of 2 to 3 premium titles each week during the summer season, such as 'A Moment of Youngness' and 'Of Spirit' among others.

A：The three key projects for original production are: 1) 'Block Butter Project', which partners with top filmmakers for high-quality productions; 2) 'Flipper Head Project', which collaborates with writing directors for innovative films; and 3) an event-driven revenue sharing model for online movie and mini-series.

A：Upcoming titles for release include 'The Shadow's Age' and 'Enough Knowledge', which have achieved an impressive initial box office of over MD 300 million within five days for online original productions. 'Automate Mission to 0 0 and error 0 with comic' is also mentioned.

A：The company is committed to delivering top-tier content and has a diverse lineup of new original productions. Family-oriented projects are mentioned as an area of focus, with successful titles crossing over to the online domain.

A：The company is building a membership experience that resonates with its brand audience, featuring a vibrant content ecosystem and best-in-class services. New initiatives include a family-oriented 'Ice Diamond Plan', bundle membership plans, enhancing perceived membership value through special programs, and fostering stronger community connections.

A：The advertising business in the second quarter has benefited from enhanced premium variety shows and has seen growth in the total and average number of advertisers tracked. Key shows have delivered double-digit annual and sequential growth, and the company is focusing on maximizing sales of premium brands and shows with high advertising potential. New formats for micro and short-form content are being developed, with positive results in sales of micro shows opening new marketing opportunities. The company is also expanding its relationship with internet service providers and strengthening its monetization on smart TVs.

A：AI is being used to optimize advertising materials and placement strategies, aiming to unlock greater budget opportunities. There has been a 20% increase in some grades compared to those created without AI. The company is also using AI to transform entertainment experiences, with the introduction of the industry-first AI-for-IPTV feature, enhancing user engagement and creating new value for content.

A：Total Award launched the industry-first AI NPC parallel platform in early 2024, featuring over 102,000 AI agents from popular genres. The AI agents interact personally with fans, incorporating visual search and plot insights to transform fan engagement and create new value for content.

A：The company's overseas business continued its strong growth momentum, with membership revenue, member scale, and spending all achieving annual growth over 80% for eight consecutive quarters. Key markets like Brazil, Mexico, Indonesia, and Spanish-speaking regions experienced this growth. The original Chinese drama 'Double Illusion' topped popularity charts in over 15 markets on a premium day. Micro dramas gained popularity, ranking as the second-largest category for new subscriptions in Indonesia, Korea, and Brazil.

A：The company plans to ramp up original content production for micro dramas overseas in the second half of the year. It will also continue organizing marketing events such as film meetings and media conferences that support large Chinese celebrities. In the second quarter, three such events were hosted, with widespread engagement from users, media partners, and advertisers. Looking ahead, the company aims to scale these events internationally to promote the global influence of its content.

A：In the second quarter, total revenue was RMB 6.6 billion, with a 9% decrease in membership services revenue to RMB 4.1 billion. Online advertising revenue decreased by 13% to RMB 1.3 billion. The company maintained cost discipline, with a 8% annual saving in R&D costs and a 3% reduction in total operating expenses. Non-GAAP operating income was RMB 58.7 million with a 1% operating income margin. The company ended the quarter with cash and cash equivalents, and other assets totaling RMB 15.1 billion, after repurchasing a portion of its outstanding balance of US dollars 288 million.

A：The new policies have brought about significant positive developments for the long-term video industry, which includes improving schedule and stability, ensuring content aligns with current sentiments and audiences, and enhancing the efficiency of the company's visualization. Additionally, these policies have increased flexibility for content creation, allowing creators more creative freedom.

A：The new policies enhance the flexibility of content creation, providing creators with greater creative freedom which can improve content quality. This improved content also helps to strengthen the connection between platforms and traditional TV networks, as it can benefit from simultaneous and linear TV broadcasting. Furthermore, it extends distribution channels for quality productions, stabilizes constant distribution prices, and enhances the reach and influence of the content, which is beneficial for both online platforms and traditional broadcasters.

A：The new policies are sending a strong signal that can attract more talent capital into content production, which is expected to drive a healthy and vigorous development of the entire industry.

A：Management acknowledges the popularity of various high dramas and variety shows during the summer season. They mention that the company will promote innovation in different aspects of content production, such as producing multi-season content and various formats of innovative dramas. In the future, the company aims to strengthen content strategies across different categories, focusing on high-value constructions for long-form dramas and improving innovative formats for short dramas. They also plan to leverage 'five major drama filters' to cover key content genres and create innovative contemporary storylines with emotional resonances to engage younger audiences. On the monetization side, they intend to explore opportunities like content distribution, branded content integration, and merchandise development. For micro-dramas, they are pushing for improving quality production to attract more users and apply their long-term drama development expertise to produce more flagship titles with flexible formats.

A：The company is expanding its business by focusing on two key areas: IT consumer products and offline experiences. For IT consumer products, they are transitioning to a new operation model that includes planning and design, manufacturing, and sales, while testing various channels for distribution. For offline experiences, they are taking an immersive approach with initiatives such as immersive theaters, supported by a strong content management and technology strategy. The company is also working on developing a comprehensive framework for original film projects, with strategies like the 'sleeper hit project' and 'emergency project' to enhance market share in movie streaming and theatrical releases, as well as strengthening the synchronization between online and offline platforms for animations and children's content.

A：The company's strategy regarding its convertible notes involves addressing the 2028 A convertible note with an outstanding balance of only $280 million, which is manageable given the company's sufficient cash. As for the capital structure, the company has made significant improvements in the ratio of long-term to short-term loans, resulting in a healthier overall structure. This is intended to support the company's daily operations and long-term development growth.