Hello Group Inc.

Ladies and gentlemen, thank you for standing by and welcome to the second quarter 2025 Hello Group, Inc. 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'll need to press the star key followed by the number one on your telephone keypad. Please note this conference is being recorded today. I would now like to hand the conference over to your first speaker today, Ms. Ashley Jing. Thank you. Please go ahead, ma'am.

Thank you, operator. Good morning and good evening, everyone. Thank you for joining us today for Hello Group's second quarter 2025 earnings conference call. The company's results were released earlier today and are available on the company's IR website. On the call today are Mr. Tang Yan, CEO of the company, Ms. Zhang Sichuan, CEO of the company, and Ms. Peng Hui, CFO of the company. They will discuss the company's business operations and highlights. as well as the financials and guidance. They will all be available to answer your questions during the Q&A session that follows. Before we begin, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provision of the Private Security Litigation Reform Act of 1995. Such statements are based on management's current expectations on current market and operating conditions and relate to events that involve known or unknown risks and certainties and other factors. all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding this and other risks and certain set factors is included in the company's filings with the U.S. Security and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under law. I will now pass the call over to our COO, Ms. Jiang Sichuan. Ms.

Jiang, please. Thank you. Hello, everyone. Thank you for joining our call. In Q2, both our domestic and overseas business continued to the positive trend that began at the start of the year, achieving good results across various operational and financial metrics. Next, I will give you an update on execution of our strategic goals. Starting with the financial performance, for Q2 25, total group revenue was 2.62 billion RMB, down 3% year-over-year. Domestic revenue reached 2.18 billion RMB, down 11% year-over-year, while overseas business was 442 million RMB, up 17.3% year-over-year. Adjusted operating income was 448 million RMB, down 6% from Q2 last year, with a margin of 17%. Our key priorities for 2025 include the following. For Momo, the goal is to maintain the productivity of this Cascade business with a healthy social ecosystem. For Tantan, the goal is to maintain and improve its core dating experience, and build an efficient business model that drives profitable growth. For the new endeavors, our goal is to continue deepening our presence in overseas markets, enriching our brand portfolio, and building a long-term growth engine. In the first half of 2025, our domestic business gradually stabilized, with both revenue and profit exceeding our initial expectations For overseas business, we continue to drive rapid revenue growth with controllable costs and expenses. And now, let me walk you through the details. First, on MomoApp, all product and user acquisition efforts were focused around the goal of ensuring the productivity of the cash cow business. On the product side, the focus was to enhance user track experience to ensure long-term datability through a healthy social ecosystem. In Q2, we fully rolled out the in-house developed AI greeting feature, which helps male users to generate personalized greetings, driving the reply rates up by a high single-digit percentage. Building our use of AI to enhance ice-breaking chat experience We have also been testing an AI Chat Assistant feature, which provides content suggestions for male users during the ongoing conversation. This feature drives an increase in number of multi-round conversation and rate of in-depth chats, thereby improving retention and playing a positive role in stabilizing Momo's user base. On the user acquisition front, We further refined our approach based on ROI and reduced the budget of inefficient channels. We also optimized acquisition materials for high Apple users and drove sequential growth in Apple by enhancing the onboarding experience for paying features among users from these channels. The reduction in unit acquisition costs combined with the IP growth drove further improvement in ROI, which had already achieved a target greater than 100% in Q1. The overall user retention remains stable despite increased channel investment. Thanks to the improved user experience driven by product enhancement and algorithm optimization, as well as the ability to accommodate channel users more effectively, In Q2, MomoApp had 3.5 million paying users, a sequential decrease of 0.6 million due to our ongoing efforts to cut user exhibition investments with negative ROI. Since the ultra-low paying users that we proactively abandon make very limited contribution to the top line, the absence of this group has had a very minimal negative impact on revenue. Instead, their absence contributed to an improvement in profitability. We believe that the current user acquisition environment in China has fundamentally changed from the pre-pandemic period, and our user acquisition strategy has also evolved to achieve ongoing improvement in ROI. I believe that I'm confident that both Momo and Tantan still have room for continuous improvement in this area. Now, on the productivity of Momo cash cow business. In Q2, Momo value added service revenue reached 1.85 billion RMB, down 11% year-over-year. The decline was mainly due to the soft spending sentiment among high-paying users, particularly in live streaming experience amid the weak micro-environment. In light of this, we increased operational efforts in chatroom experience, which is popular among Meet Cohort users. We adjusted the common recommendation algorithm to enhance penetration rates and user scale of the audio and video-based experiences, thereby stimulating consumption enthusiasm among mid-cohort users. After the seasonal load, in Q2, we organized non-bonus driven competition events in live streaming. and increased the exposure rate of high-quality broadcasters to high-paying users in our algorithm. On the product side, we introduced new interactive GIFs that better facilitate relationship building and paying conversion between users and broadcasters. With the joint efforts of our algorithm and product, we enhanced our traffic monetization efficiency, coupled with a seasonal recovery. Bus revenue increased 4% from last quarter. Turning to Tung Tung. In order to maintain profitability amidst revenue pressure, we continue our strategy of reducing channel investment in Q2. A plan initiated at the start of the year with a target ROI of over 100% with further scale-backed budgets for underperforming channels. This decrease in channel traffic puts some pressure on the overall user scale. However, organic users' growth show a positive trend since the beginning of the year and increased steadily quarter over quarter. which potentially upset the decline in user numbers caused by the reduction in marketing spend. In June, CanCan's MAU reached 10.2 million, down 5% from last quarter. As of the end of Q2, CanCan has 720,000 paying users, a decrease of 80,000 from Q1. In addition to a decrease in MAU, another reason for the decline in paying users is the short-term pressure on the paying conversion caused by the improvement in user experience associated with the product upgrade. Following the full-scale rollout of the pilot project, there was a slight quarter-over-quarter decrease in paying ratio. Turning to Pantone Financials, Revenue from the onshore business in Q2 was 160 million RMB, down 18% year-over-year and 4% quarter-over-quarter. The revenue decrease was due to a decline in the number of paying users, but AppyPool increased 18% year-over-year and 8% quarter-over-quarter, which potentially alleviated the pressure on revenue. At the product level, to explore dating experiences suitable for Asians, we launched product upgrades from last year. Our key efforts included first, strengthening real user replication to enhance user authenticity and brand trust. Number two, refocusing on the core dating experience by simplifying the UI layout to focus on key information while downplaying non-court dating features such as fees and group chats. The improvement in user experience had a certain negative impact on paying ratio and user retention. The upgraded version was fully rolled out in Q2, and currently we are mitigating the negative impact of the new version on user matrix amortization through continuous product fine-tuning. On user acquisition, our goal was to achieve 100% ROI, including personnel costs, and to eliminate budgets from the underperforming channels. The unit acquisition costs narrowed significantly, and Apple slightly compared to last quarter. In Q2, ROI remained stable at a level far exceeding 100%. Improvement in organic traffic and in the channel ROI has led to a significant year-over-year and quarter-over-quarter growth in Tan Tan's profitability. In terms of monetization, we mitigated the impact of the product upgrades on paying ratio by restructuring the membership package and refining the operation of core cities and user groups. The differentiated product design and pricing scheme has driven a continuous increase in RP pools, resulting a revenue decline that is significantly smaller than the decrease in the number of paying users. Lastly, on the overseas business, in Q2, overseas revenue reached 442 million RMB, up 73% year over year and 7% quarter over quarter. The overseas revenue accounted for 17% of the group revenue compared to 10% in the same previous last year. In Q2, Overseas revenue maintained its rapid growth momentum, driven by the audio and video-based Shoshu product in the MENA region. For Shoshu, product optimization to the courtroom experience boosted both the pay-in conversion ratio and the pay-in user count, thereby driving the credential revenue growth from a high base. For Yahalan and Amar, The local teams drove growth in both the number of paying users and RP pools by continuously optimizing product features and strictly adhering to a paying user-oriented acquisition strategy. We initially expected the overseas revenue could have grown even faster with more aggressive marketing extensions we decided to be more prudent due to the following reasons. Number one, during Sochu's expansion to an affluent Gulf region, we felt the need for a better segmentation among different user groups. Therefore, we are currently trying to penetrate the market with a standalone app, which might take a bit more time. Number two, we noticed that the unit acquisition costs increased a bit too fast as we increased channel investment in two new apps. Therefore, we decided to move a bit slowly on the marketing expansion plan, focusing on improving app rules and optimizing acquisition costs first. We will increase our channel investment again once ROI reaches a satisfactory level. We prefer such kind of prudent model that balance growth and bottom line because it prevents the food from entering an awkward situation where the rabbit top line expansion is achieved through bottom line sacrifice. It's worth mentioning that our overseas business is not limited to audio and video-based social products in the media market. Another key focus of our overseas business lies in the dating market across developed countries. Currently, the overseas dating products led by our Singapore team already contribute a double-digit percentage of our total overseas revenue. driven by Tantan International. After taking over last year, the Singapore team re-evaluated the brand positioning and product strategy for overseas Chinese and other Asian country users. Tantan International shifted from balancing entertainment and dating to focusing on the court dating experience. Based on this, we have reshaped the product and branding. After one year's effort, Tantan International revenue has now stabilized. Moving forward, we will focus on dating and seek growth opportunities in overseas Chinese communities and the Southeast Asian market. We plan to take Tantan International as a pilot project to deepening our presence in our overseas dating field, providing users with more dating brands that facilitate the discovery of romantic relationships and effectively establish connection from online to offline. This concludes my remarks. Now, let me pass the call over to Cathy for the financial review. Cathy, please.