iQIYI, Inc.

Thank you for standing by and welcome to the IKEA fourth quarter and fiscal year 2025 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ms. Chang Yu, IR Director of the company. Please go ahead.

Thank you, Operator. Hello, everyone, and thank you for joining ITE's fourth quarter and fiscal year 2025 earnings conference call. The company's results were released earlier today and are available on the company's investor relations website at ir.ite.com. On the call today are Mr. Yu Gong, our founder, director, and CEO, Ms. Ying Zeng, our interim CFO, Mr. Xiao Gui Wang, our chief content officer, Mr. Youqiao Duan, Senior Vice President of our Membership Business, Mr. Xianghua Yang, Senior Vice President of International and Online Game Business, and Mr. Gang Wu, Senior Vice President of Brand Advertising Business. Mr. Vong will give a brief overview of the company's business operations and highlights, followed by Ying, who will go through the financials. After the prepared remarks, the management team will participate in the Q&A session. Before we proceed, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. IT does not undertake any obligation to update any forward-looking statement except as required under applicable law. I will now pass on to Mr. Gong. Please go ahead.

Hello, everyone, and thank you for joining us today. In 2025, we focused on strengthening our core business to renew growth while achieving advancements in emerging This effort drove a solid year-end performance, with total revenue in Q4 returned to growth both annually and sequentially. Notably, our long-form drummers secured number one in the real-ship market share on enlightened data annual rankings, with five titles exceeding 10,000 for the IT popularity score. More importantly, we have made remarkable breakthroughs in IP franchise development, moving beyond making individual hit titles to building evergreen IPs that drive growth across diverse formats. Strange tales of time dynasty stand as a stellar example as a flagship IP with for consecutive blockbuster seasons. Its influence has expanded from long to short and micro dramas, as well as offline experience. Emergency businesses continue to demonstrate strong growth potential. Our overseas business has evolved into a sustainable and scalable second growth engine. powered by accelerated organic momentum. In 2025, membership services revenue increased by over 30% year over year, with growth accelerating to 40% in the second half of the year. The subscriber base reached an all-time high, and at the same time, Our experience business has entered a critical stage of development. For IP-based consumer products, we have built a dedicated in-house team and upgraded from a listening-only approach to a dual-track model, combining self-operated mechanism merchandise with listening. This strategy shifts stress in our control over IP operations and amplifies monetization efficiency. On the offline experience round, we launched our first IT land in Yangzhou on February 8, 2026, receiving positive initial reception. Two additional parts are scheduled to open later this year. 2026 marks a key step towards scaled development as we build the experience business into a new engine for long-term value creation. Now, let's dive into the details of our business performance in Q4. Starting with content, the cornerstone of our business. For long-form drummers, we secured the number one view-shape market share for enlightened data, driven by a robust slate of premium content and purposeful serialized IPs that boost engagement and commercial results. Strange Tales of Tang Dynasty III to Chang'an marked our first title with two seasons exceeding a popularity score of 10,000. Among 2025 new releases, it ranked number one in ad revenue and number two in membership revenue. Following this momentum, The crime drama, The Punishment 2, Father, became the first title of 2026 to surpass 10,000 for the popularity score. It is also our second franchise with two seasons achieving this milestone. Shifting to movies, we maintained a diverse lineup with broad demographic appeal. For IT originals, the summer sale article hit the shadow's edge for Feng Zhiyun, extending its offline success to the online domain. It not only topped all Q4 field releases by peak IT popularity index score, but also became the highest rated domestic action crime film over the past decade on Douban. Additionally, our original online film, The Sixth Robber, it showed that a new all-time high for the popularity score within its category. For movies broadcasted On our platform, we retained the number one Bioshape market share for 16 consecutive quarters. In Q4, we rolled out diversified titles, including The Warm Seed, Dead Two Rights, Nanjing Zhao Xianghuan, The Animated Feature, Nobody, Lang Langshan, Xiao Yao Gui, The Fantasy Comedy, ADVENTURE and the female-oriented FEACH flew away. Furthermore, our innovative revenue sharing model decided to optimize returns for fields with limited cell article bounce of its performance gained further traction. The return of the lame hero, Bi Zhengming's Zhengming, generated RMB 36 million in shell revenue, ranking first among all titles under this model. According to Variety Show, our dual focus on long-running franchise and fresh innovative IPs show market-leading performance in 2025. According to Enlightened Data, three of our multi-season titles ranked in the top 10 most watched multi-season variety shows and the two new releases ranked in the top three most watched new shows our originals continued to set benchmark the wrap of china wrapped its ninth season this year cementing its position as china's longest running online variety IP. Additionally, Hi Young Farmers 3, a spin-off of the beloved Become a Farmer franchise, featuring the boy group, reached an all-time high in its popularity score this season. Among brand new originals, Wander Together, Yu Zhou, Shen Shuo, and Qin Zhuyi exceeded 8,300 for popularity score. We also expanded IP values from merchandise partnerships with brands for Hi! Young Farmers 3, The Blooming Journey 2, Yilu Fanhua, and Wander Together, unlocking new revenue potential. Turning to micro drummers, we have expanded free content to over 70% of all 20,000 title library to broaden engagement. Our original portfolio is scaling to over 150 titles today. Filled record high membership and distribution revenues in Q4 from these offerings. Spin-off from Strange Tales of Tang Dynasty, The Child's Detective, Tangui Qitan Zhi, Chang'an Xianwei, and the Nite Health Library, Tangui Qitan Zhi, Jiu Chonglong, both hit new highs for population score. Notably, over 70% of their debut week viewers also watched the long-form scenarios, helping to extend the IP's lifespan. This releases not only boosted membership viewers, but also attracted top tier brand partnership, moving well beyond the conventional performance ad model. Building on the momentum of the premium micro drummers, we are working into micro animations and business models centered on free content with a pipeline of over thousand titles in place. Micro animation viewship and the time span are growing rapidly. Beyond content, we further amplified our IP values from flagship marketing events. In December 2025, we hosted the annual IT screen night alongside a two-day IT screen carnival in Macau to honor the year's standout productions and talents. The event drew over 200 million on-site attendees and livestream viewers and brought together around 300 celebrities and industry partners. Next, let's dive into our 1726 content strategy and the exciting Q1 lineup. Starting with drummers, our Q1 slate includes Love Between Lives, Da Xi, soars into cloud shells, Tai Ping Nian, born to be alive, Sheng Ming Shu, how dare you, Cheng He Li Tong, the devil between us, Chu Le, dazzling days, Sui Yue You Qing Shi, pursuit of jade, Zhu Yu, and the life after you young, Zheng Qi Chun Lai. For movies, we will match audience demand with diverse slates, spanning top-seller article releases and online movies. Q1 line-up features original online movies such as Northeastern Brothers Season 3, Dongbei and Girl, and The Thing City, Sao E, alongside licensed titles such as Ge Zhi Tang, De Xian Ji Zhi. For variety shows, we are enhancing the long-term operation of multi-season IPs. We are exploring fresh and innovative new IPs. PQ1 releases include Five Hearts, Season 6 Wu Ha, His Song Season, Two, You Ge, as well as new IPs such as Wonders Gather, Tonight Commendation, Jinye Xiyou Xiu. For micro-germs, we will focus on creating original content with quality and innovation while enhancing operations, commercializations, and deepening integration of AI. Q1 key titles include Return to a Better Tomorrow, Xin Ying Xiong Ben Se, The Rise of a False Noble Woman, Jia Gui Nu Jing Jie Lu, and The Ember Hour. For animations, we will meaningfully expand our line-up of original Chinese animation compared with previous years. In Q1, our slave features original long grinding scenarios, such as the great ruler, Da Zhuzan, and against the gods, Ning Qianxian, as well as popular IP, including How Dare You, Season 2, and Waves of Crisis, the Hindi. For children's content, we will secure top-tier SSIPs, scale, and original productions, and expand our AI-driven portfolio. In Q1, key offerings include a brand-new original title, Detective Babu, Xiao Xiong Mao Da Shen Tan, Da Zhan Ba Ba La, alongside licensed shows such as Power Patrol Season 11, Wang Dong Dui Da Gong, and the latest season of Pleasant goat and big, big wolf. Moving on to the membership services. Over the past few quarters, our membership services revenue has shown consistent year-over-year recovery, driven by diverse premium offerings in Q4. Members enjoy the popular titles such as Strange Tales of Tang Dynasty III to Chang'an, Silent Owner, Chen Mo's Glory, Fitted Hearts, Yi Xiao Sui Ge, Legend of the Magnate, Da Sheng Yi Ren, and Source and Beloved. We revitalized our membership units through a range of operational initiatives. For example, we boosted new subscriptions and upgrades to the S-Diamonds plan by offering inclusive perks such as free express packages, which provided early access to finalists at no extra cost. In 2020-21, express packages were available for over 40 drivers. Additionally, we are stressing member retention by emphasizing annual memberships during holiday promotions, e-commerce festivals, and bundle partnership offers. To further increase the value of memberships, we introduced additional inclusive benefits, including five VIP events in the first quarter featuring participation in offline show recordings, advanced screenings, and the exciting IT Screen Night. In particular, IT Screen Night event was highly praised for inclusive perks like red carpet viewing privilege and live feeds featuring their favorite celebrities. Moving on to advertising business. In Q4, brand advertising revenue grows both annually and sequentially. revenues from variety shows and dramas both delivered double-digit annual growth while core and vertical such as food and beverage, internet services and e-commerce and telecom services all recorded double-digit annual growth. Beyond long-form videos, all micro dramas and micro-variety shows are gaining considerable attention from brand advertisers. For micro drummers, we have successfully engaged several renowned brands in 2025 through tailored content, bundled sales that integrates product placements with self-branding and a string of collaborations. Likewise, Our micro-variety shorts have received strong market recognition, fostering long-term partnerships with multiple clients and driving impressive revenue growth. For ProMorphis S, we regained sequential revenue growth in Q4, driven by a healthier and more balanced advertiser portfolio. Revenue from small and mid-sized advertisers grew both annually and sequentially. By vertical, internet services, e-commerce, and financial services lead growth. Additionally, we have deployed a proprietary large AI model for scaled ad delivery, leveraging deep semantic understanding that has boosted commercial rates. Moving on to technology, we introduced a network of proprietary AI agent platform designed to revolutionize professional content creation by integrating leading global large models with IT expertise in professional content production. NadoPro effectively streamlines the production pipeline from script evaluation to final generation. Currently, in its closed beta phase, NadoPro is empowering our internal teams and select partners in a wide variety of professional content, such as feature films, dramas, animation. In addition, Total work of pioneering AI agent-based NPC platform continues to redefine entertainment experience. Users can now engage with over 1,700 NPC agents from our popular titles such as dialogue, fan fiction, and virtual social interaction. The platform creates powerful synergies with heat content delivers immersive emotion connection with fans and extends the long tail value of our IP strong user adoption is translating into commercial success and revenue from total war raising Chevrolet year over year in 2025 in addition to pushing the boundaries of AI applications. We are leading the industry with cutting-edge virtual production technology. Our in-house developed IQ stage system has meaningfully enhanced the efficiency of vehicle scene shots for the artificial heat. PacSense 3. achievements delivered unparalleled results with zero frame drops and zero analyzing, representing the highest standard for virtual production in car scenes in China. And IT innovation is at the core of everything we do. It's a portfolio of over 10,000 patent applications. We are proud to rank number 72 among the top 100 Chinese enterprises for valid invention patents. In 2025 alone, we filed nearly 1,000 new patent applications, most of them driving achievements in AI. across content development, production, broadcasting, and offline experiences. Moving on to the business performance in regions outside of mainland China, in Q4, we continue to deliver robust growth, with membership revenue increasing by 40% annually. Markets such as Brazil, Mexico, and Indonesia show exceptional performance, with membership revenue surging by over 80% annually. Also, performance is driven by the growing popularity of our seed drummers, which have shown substantial annual revenue growth, notably speed and love. Shuanghui was a standout hit in 2025, emerging as the best-performing C-Drama during the peak viewing period and topping popularity charts in 14 markets on our international platform. It performed exceptionally well in key regions like Thailand, Malaysia, and Singapore, where it leads its category on Google Trends. Its success extended further with the spring of a variety show, Thai Sweet, which became one of the most popular Chinese variety shows over this time for this year. We are also wrapping up. production of local original content with strong user reception. The original Ops Amin Jail stood out as the top Taiwanese drama on our platform in 2025. Moreover, our Thai original variety show, Running Man Thailand, launched in February 2026, has secured exceptional brand advertising partnerships. Apart from long-form content, microgenres captivated increased engagement among overseas audiences in Q4. Membership revenue from microgenres hit a new high, driven by original such as Spring in the Palace and Wide Scene and licensed hits from China like Midsummer's Wanderlust, or efforts in creating local original microgenres. have also started to show results with five titles premiered in December 2025 featuring local content for South Korea, Thailand, the UK, and Indonesia. Among these, the Korean microgrammer Darling Is It All a Coincidence and the Thai micro drama Catch Me If You Love Me have outperformed, gaining notable popularity across and beyond our platform. In addition to content, in Q4, we held For major offline marketing events in Thailand, Indonesia, Malaysia, and Singapore featuring Chinese celebrities, this event amplified the influence of our content and the commercial value of our platform, forged stronger partnerships, and propelled the global reach of Chinese content. Moving on to experience business, We are focusing on two core areas, IP-based consumer products and IT labs. By leveraging our extensive IP assets, we aim to build a new engine for sustainable long-term growth. For IP-based consumer products, our software-operated merchandise demonstrated solid progress, highlighted by top-selling collectible cars from premium drivers like the Journey of Legend. For IP licensing, the strength of Tang Dynasty 3 to Chang'an secures strong partnerships across food and beverage, beauty, and art trust. and source and send new sales records during its broadcast period. Looking ahead to 2023, we plan to grow our IP licensing business and expand our self-operated merchandise beyond classic broadcast to more categories. For IT land, we adopted a live asset model By combining AI and XR technology with IPs, we create immersive experiences that are more efficient, flexible, and require less space and investment than traditional theme parks. Our first IT lab was successfully opened in Yangzhou on February 8th. Kaifeng and Beijing locations are set to open later this year, each incorporating unique local elements to deliver tailored experiences. Revenue will primarily come from ticket sales and onsite spending. Looking ahead, we aim to position ITland as a key sales channel for IP-based consumer products. and a vital platform for maximizing the long-term value of our IP portfolio. In summary, in 2026 we will focus on three key strategies. strategic goals. First, we were stressing our domestic call by enhancing the quality of original content, stressing membership and advertising businesses. Second, we will aim to sustain strong growth in our overseas and experience business, building more robust engines for long-term expansion. Third, over the past several months, rapid advancements in AI large models worldwide has revealed a clear insight. The content production industry will be revolutionized within the next one to three years. This transformation will significantly cut production costs, lower barriers to professional content creation, and boost both the quality and the quality content. These exciting changes will greatly benefit media platforms, especially IT. To seize this opportunity, we are dedicated to building a dynamic AIGC ecosystem transitioning our platform from a centralized to a decentralized model. We look forward to showing detailed initiatives at our upcoming IT World Conference on April. Now, let me hand it over to Yingfeng for the financials.