A：In today's conference call, management will discuss certain non-international accounting standard financial metrics as supplementary considerations to the company's financial performance indicators. For specific definitions of non-international accounting standard financial metrics and their reconciliation with international accounting standard financial performance, please refer to the information provided in the company's third quarter 2025 performance announcement. Please note that while the meeting will provide such non-international accounting standard financial metrics, they cannot replace the company's financial performance indicators prepared in accordance with international accounting standards. Hello everyone, welcome to the Keach 2025 third quarter performance communication meeting. This quarter, we have achieved high-quality operational and financial performance by implementing our AI strategy, enabling value in various business scenarios, and enhancing organizational infrastructure performance. Specifically, Keach's average daily active users exceeded 416 million, reaching a historical high; total revenue increased by 14.2% year-on-year to 35.6 billion RMB, with core business revenue growing by 19.2% year-on-year. In addition, adjusted net profit reached 5 billion RMB, a 26.3% year-on-year increase, with an adjusted net profit margin of 14%.

A：While steadfastly advancing our AI strategy, we have achieved a year-on-year increase in the overall profitability of the group. Especially in terms of empowering the content ecosystem and commercial ecosystem of Kwai with AI technology, significant progress has been made. For example, in the field of KeLian AI, we continuously improve the quality of technology models, develop innovative features, and create a one-stop creative productivity platform to help creators produce high-quality content through AI. Specific achievements include the launch of flexible animation canvas, upgraded tail light function, the launch of digital human solutions, and the debut of the Ke02.5 model at the end of September, which achieved a substantial improvement in multiple dimensions and topped the global video and image rankings of well-known AI evaluation agencies. The application of the new model has reduced the cost of generating a single video for creators by nearly 30%, significantly enhancing overall cost-effectiveness.

A：The AI Big Model technology has been fully integrated into various key business scenarios of Kuaishou, unleashing value increments. For example, in the online marketing business, we have upgraded the end-to-end generative recommendation Big Model VINRAC and extended this technology to online marketing business and e-commerce storefront recommendation scenarios, effectively enhancing the bidding capabilities and ROI of online marketing clients. At the same time, by exploring end-to-end generative recommendation technology in the online marketing business, we have achieved bidirectional matching of user interests and marketing demands, improving the personalization and matching efficiency of online marketing material recommendations. The application of AI Big Model technology has also led to an increase of approximately 4%-5% in domestic online marketing service revenue, as well as a reduction in online marketing material generation costs and the opening up of new business scenarios in e-commerce live streaming. In addition, in the e-commerce business scenario, the launch of the end-to-end generative retrieval architecture "one search" has optimized product matching and user experience, driving an increase of nearly 5% in mall search orders. In the live streaming business scenario, the AI All-Encompassing Gift customization feature utilizes AI capabilities to generate personalized and novel effects, stimulating user interaction intentions.

A：In the third quarter, aside from the life service industry, the content consumption industry represented by short dramas was the main driving force for the company's continuous growth in external marketing service revenue. The company continues to optimize the supply of content and product innovation for short dramas, mini-games, and novels, and seizes the incremental space brought by the explosion of comics and dramas. By using AI's globally leading video generation capabilities, the company has lowered the cost threshold for comic and drama content, while also achieving multiple value transformations for high-quality short drama content through revenue sharing, IP, and content mix models.

A：In the third quarter of 2025, the GMV of Kuaishou's e-commerce business increased by 15.2% year-on-year to RMB 385 billion. The company has implemented measures such as diversified preferential policies, comprehensive traffic support, and empowerment of intelligent tools to help merchants build a comprehensive operating ecosystem, enhance user experience, and promote high-quality development of supply and demand. Kuaishou empowers the entire chain of e-commerce business in the third quarter around the content production of the AI system, improving efficiency for merchants, and matching efficiency of goods, including the application of technologies such as AI generation and optimization of materials, intelligent slicing, and AI intelligent explanation in live streaming rooms, significantly improving conversion efficiency and user interactivity.

A：During the third quarter, Kuaishou e-commerce leveraged platform traffic and content commerce advantages to attract merchants to naturally settle in, reducing the cost and threshold for merchant entry; launched new commercial growth task policies and targeted investments in high-quality existing merchants, leading to continuous growth in the number of monthly active merchants; simultaneously expanded the width of merchant freight and optimized merchant operating efficiency.

A：Kuaishou launched the "Heavenly Bao Increase in Fans" product to activate the private domain value of merchants and influencers, bridging the entire chain from exposure to conversion. In addition, by strengthening the platform's control over products, launching the official popular product plan for influencers, and combining merchant-influencer matching, niche influencer development, and platform subsidy policies, Kuaishou aims to enhance influencer coverage and brand rapid growth.

A：In the third quarter of 2025, the revenue from live streaming business increased by 2.5% year-on-year to 9.6 billion RMB. Thanks to the synergy of high-quality content supply, expanding live streaming scenarios, and AI product innovation, as well as focusing on high-quality content creation, enriching live interaction with AIGC technology, it has promoted the stable development of the live streaming business.

A：In the third quarter of 2025, the company continues to deepen its presence in overseas markets by optimizing customer acquisition efficiency, strengthening the ecosystem for creators, expanding core content categories, and enhancing user experience. Particularly in the Brazilian market, the company has achieved stable user growth and daily active users, while both online marketing and e-commerce businesses maintain healthy growth.

A：In the third quarter of 2025, total revenue increased by 14.2% year-on-year to 35.6 billion yuan, and core business revenue increased by 19.2% year-on-year. Operating profit reached 5.3 billion yuan, an increase of 69.9% year-on-year, and adjusted net profit reached 5 billion yuan, an increase of 26.3% year-on-year. Revenue growth mainly came from the growth of online marketing services, live streaming business, e-commerce business, and other service revenue. At the same time, sales costs, gross profit, and various expenses also changed correspondingly, reflecting the improvement of the company's operational efficiency and the stable development of various businesses.

A：Thank you for your question. The year 2025 is widely seen as a crucial year for the deep application of AI. In this year, AI technologies, represented by multi-modal generation agents, continue to explore richer, more efficient, and more user-friendly application forms. AI technologies are moving towards a systematic realization of industrial value. In such a context, we are gradually building a complete technical and application system based on user needs, anchored in existing business scenarios, and accelerating the implementation of AI to empower content ecosystems, business ecosystems, and internal organizational infrastructure.

A：At the product level, Kuaishou has upgraded its UX AIGC marketing material generation tool, live digital influencers, and digital employees, aiming to lower the marketing threshold for customers, optimize customer conversion, and further drive growth in online marketing consumption. Specifically, the UX fully automated advertising delivery product has added a stable delivery function, which can automatically bid, control, and produce creative content based on customer needs within the delivery period, thereby improving the stability of the delivery period and making the online marketing customer's delivery more stable and continuous. In addition, Kuaishou's AIGC marketing material generation tool supports customers in quickly and cost-effectively producing short video materials in batches, with a conversion efficiency 10% to 20% higher than the industry average. Kuaishou's live digital influencer solution allows customers to start broadcasting 24 hours a day without the need for a host or live broadcast venue, while digital employees have achieved or exceeded the conversation quality of human customer service in messaging and commenting scenarios, effectively improving customer conversion efficiency.

A：From the performance of the external loop industry, the life service industry with operating clues as the main goal, and the content consumption industry represented by short dramas and small games, are the industries with relatively bright growth in this quarter. Kuaishou upgraded its products in the life service industry and optimized the conversion chain after segmenting vertical categories, helping clients reach users more efficiently and improve user conversion. At the same time, targeting the characteristics of the life service industry with mainly small and medium-sized customers, Kuaishou accelerated the product development of AI customer service UX fully automatic deployment AIGC marketing material generation tools to meet its continuous growth demand in the short drama field of the content consumption industry. In addition, the deep empowerment of AI technology has brought rapid development opportunities to the comic industry, and Kuaishou actively seizes this trend, and participates in upstream content production through AI technology.

A：In the field of internal circulation e-commerce marketing services, Kuaishou continues to iterate on its site-wide promotion products, helping e-commerce merchants to gain more incremental exposure and conversion opportunities. At the same time, Kuaishou has also launched an intelligent price adjustment agent, generating ten models to achieve stable pricing adjustments around the clock, and effectively exploring user interests to drive merchants' marketing budget allocation. Additionally, Kuaishou has strengthened its understanding of capturing users in all areas, effectively increasing the scale of converting users and constructing screens, better meeting users' e-commerce consumption experience on the Kuaishou platform.

A：Yes, in the third quarter, we introduced fixed-term AUAX placement solutions, adding a stable placement feature. This new feature allows customers to set marketing materials and pricing requirements for specific ad placements, while the system automatically handles intelligent infrastructure, dynamic adjustments, fine tuning, and intelligent creative content generation. This enhances stability during the adaptation period, helping our online marketing clients achieve more stable and consistent advertising effects at a more predictable cost. In the third quarter, UAX placement solutions accounted for over 70% of external marketing expenses. We introduced AI-driven marketing material generation tools that can quickly generate short video content at a lower cost and higher efficiency, with material conversion rates 10 to 20 percentage points higher than industry averages. Additionally, our real-time digital human solutions allow customers to run 24/7 live streams without the need for strangers or specific locations. Our virtual employees provide service levels equivalent to humans in terms of conversation accuracy, efficiency, and safety, and can naturally interact across private messaging and commenting scenarios, thereby improving conversion efficiency.

A：During this year's Double 11 period, we invested 18 billion in platform traffic incentives, combined with user red envelopes and 1 billion in product subsidies, effectively helping businesses improve transaction conversions and buyer activity. Among them, the number of businesses with sales exceeding tens of millions achieved double-digit growth compared to last year. We have formulated differentiated profit-sharing policies for different types and sizes of businesses, aiming to promote the prosperity of the online business ecosystem and inspire businesses to achieve better equity growth. Although consumer spending this year has shown some resilience in the service industry, overall user consumption remains cautious and rational. During the Double 11 period, we achieved expected results, especially in the jewelry, health, clothing (including men's wear, sports and women's wear for children), and fresh food industries.

A：In the future, we will focus on increasing the frequency of user purchases, followed by reducing the threshold for user purchases to increase the user base. Specific measures include strengthening the operation of high-quality categories and exploring new user demands to deepen user trust in the platform and drive steady growth in ARPPU. In addition, there is still significant room for growth in the number of monthly e-commerce buyers, but we prefer to see this as a long-term development result rather than a short-term process indicator. In the short term, we will pay more attention to the health of the structure of monthly e-commerce buyers.

A：As a content platform, live-streaming e-commerce and trusted e-commerce have always been the basic foundation and core operating areas of Kuaishou E-commerce. We firmly believe that live-streaming e-commerce has significant conversion advantages, which are expected to continue to drive the penetration rate of the online retail market and have considerable growth potential in the future. The key to further growth of live-streaming e-commerce lies in building a healthy ecosystem for merchants to operate in the long term, while private domain fan precipitation is an important moat for long-term operation due to its high stickiness and high repurchase rate. To this end, we help merchants with various measures to establish public and private domain linkage, obtain traffic in the public domain, deposit and convert fans in the private domain, but the most fundamental work is still to create good content and provide quality products. We will continue to introduce merchants and influencers, expand quality supply, simultaneously broaden the width of merchant products, and focus on strengthening long-term collaborative development with merchants and influencers, providing rich goods and traffic support through channels such as distribution libraries. Furthermore, the platform will also provide an intelligent operation product matrix, empowering merchants with AI technology to improve operational efficiency. A quality business ecosystem will motivate continuous creation of good content.