Hello Group Inc.

Ladies and gentlemen, thank you for standing by and welcome to the third 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 third 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. We will discuss the company's business operations and highlights, as well as the financials and guidance. We 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 and current market and operating conditions. and relate to events that involve known or unknown risks, uncertainties, 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. For the information regarding this and other risks, uncertainties, and factors is included in the company's filings with the U.S. Securities 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. Zhang Sichuan. Ms. Zhang, please.

Thank you. Hello, everyone. Thank you for joining our call. In Q3, our business faced some external challenges, but our team was able to respond proactively and achieve good results in both user and financial metrics. Next, I will give you an update on execution of our strategic goals. Starting with the financial performance, for Q3 2025, total group revenue was 2.65 billion RMB, down 1% year over year. Domestic revenue reached 2.12 billion RMB, down 10% year over year. While overseas revenue was 535 million RMB, up 69% year-over-year, adjusted operating income was 404 million RMB, down 11% from Q3 last year, with a margin of 15.2%. Our key priorities for 2025 include the following. For Momo, our goal is to maintain the productivity of this cash cow business with a healthy social ecosystem. For Tantan, the goal is to improve its core dating experience and build an efficient business model that drives profitable growth. As for the new endeavors, our goal is to deepen our presence in the overseas market, enrich our brand portfolio, and build a long-term engine And now, let me walk you through the details. First, on the Momo app, we believe that a healthy social ecosystem is the foundation of sustained and stabilizing our cash cow business. Therefore, our product efforts are focused on optimizing the chat experience and creating better chat scenarios and tools for users. We fully roll out a in-house developed AI greeting features in the first half of the year. Data shows that the reply rate of male users has increased as a result. It proves the team's exploration on leveraging AI technologies to upgrade social chatting tools is practicable during the past year. In Q3, we updated the AI Chat Assistant model based on earlier tests by leveraging the platform's core press. The model was optimized to better align with users' preferences and chatting style, thereby encouraging more users to adopt the AI Chat Assistant content suggestions during the ongoing conversations. We have increased exposure to this feature to improve its penetration rates on the platform, enabling more users to benefit from it. The optimization of the AI Chat Assistant model and its in-platform promotion had improved the female users' experience, driving ongoing quarter-over-quarter increase in various user matches, such as number of two-way chats, the rate of in-depth chats and user retention, et cetera. On the user acquisition front, we dynamically adjusted the channel budget allocation based on their ROI performance to ensure 100% ROI. Over the past year, although the shift to a profit-oriented channel strategy brought to the turn of large number of ultra-low spending users, It improved the platform's overall profitability by reducing user acquisition expenditure with negative returns. As of Q3, the impact of reduced channel investment on paying users had bottomed out. The multiple new gifting features we introduced in audio-based scenario led by chat rooms drove a paying ratio increase driving the number of paying users to increase by 200,000 quarter-over-quarters to 3.7 million in Q3. Although the reduction in user acquisition stamping has led to a slight year-over-year decrease in overall user scale, Momo Social Fundamental remains robust. thanks to the product upgrades and the recommendation algorithm optimization, which has enhanced the user experience. User engagements continue to grow within a healthy social ecosystem. According to an independent report released by Crest Mobile 2025 on our Consumer Market Insights in June, Momo, as a 40-year-old social brand, remains the top social choice for male users age 30 to 40. This clearly shows that Momo has established strong brand loyalty among high value users with substantial spending power. We believe this is a valuable asset that company will continue to nurture and benefit from for years to come. Now on the productivity of Momo cash cow business. In Q3, Momo's value-added service revenue reached 1.79 billion RMB, down 11% year-over-year and 3% quarter-over-quarter. As we indicated last quarter, the new tax requirements came out at the end of June, coupled with the local tax authorities' inspections of agencies since Q3. have severely impacted the operation focus of some broadcasters and agencies on our platform, leading to a significant revenue decline in revenue in audio and video based scenario. To alleviate supply side pressure, we wrote out a new revenue sharing policy in August. providing appropriate subsidies to broadcasters and agencies that were severely affected by tax changes. The policy has some encouraging effects, but it couldn't fully offset the negative impact from the tax scrutiny in the short term. Turning to TanTan, as of the end of Q3, TanTan has 0.7 million paying users. broadly in line with last quarter. The pressure on the pay-in ratio caused by last year's product upgrade was fully released after the complete rollout of the pilot in Q2. In Q3, the team drove a slight recovery in the pay-in ratio by adjusting the monetization strategy. Turning to Tantan Financials, revenue from the onshore business in Q3 was 150 million RMB, down 30% year-over-year and 5% quarter-over-quarter. The revenue decrease was due to the decline in number of paying users, but AppyPool significantly increased 25% year-over-year and 6% quarter-over-quarter. At the product level, we continue to refine our strategy on optimizing the experience for female users, which includes establishing a curated recommendation pool for newly registered female users to improve their swipe quality and providing highly attractive female users with a more diverse milk recommendation to enrich their matching options. and implementing an overheating protection mechanism to prevent excessive matches that may affect the speed of current interactions. For male users, we optimized fat-gain recommendation rules by adjusting their exposure concentration. Both enhancement in female User experience and ML user recommendation algorithm has driven quarter-over-quarter growth in several key user metrics, such as day one retention, average number of likes per user, and DAU among new users. At the monetization level, we introduced basic products such as unlimited swipe privilege packs to fill the gap in low-tier membership offering. Regarding the algorithm, we slightly adjusted the matching rate for high potential paying users to improve their conversion to paying. In Q3, Although our focus on acquiring higher quality user groups led to a sequential increase in unit acquisition costs, the restructuring of our new membership system combined with the algorithm optimization drove our people growth, pushing Tantan's channel ROI to a record high. As a result, despite pressure on user scale and revenue, Downtown achieved significant year-on-year and quarter-on-quarter profit growth, creating more room for our dating products to exploration tailored to Asian users. Lastly, in overseas businesses, in Q3, revenue reached 535 million RMB. up 69% year-over-year and 21% quarter-over-quarter. Overseas revenue accounted for 20% of the group's revenue, compared to 12% in the same period of last year. In Q3, overseas revenue growth mainly came from audio and video social products in the MENA region. Among them, Yaha Land and Amar continue to enhance product features by improving localized operations and strengthening product and partnerships, driving a steady increase in the bulk number of paying users and app people. On the user acquisition front, during the first half of the year, we observed a rapid rise in user acquisition costs while scaling up channel investments in new products. So we slowed down our marketing efforts and tried to find a scalable solution that can also balance ROI. In Q3, our channel experiment shows initial success, so we moderately increased channel spending and accelerated revenue growth. Meanwhile, SoChill, our largest audio-based social product in MENA region, optimize its marketing strategy by increasing investment proportion in high-value countries, driving a substantial growth in both revenue and profit. Except for these three audio-based products, we have recently begun testing the expansion of audio and video-based social entertainment product into other high output regions, such as the Gulf countries and Japan. We hope this effort will become our growth drivers for the group in the future. Beyond our audio-video social products in the MENA region, another key segment for our overseas business The dating product line focused on developed markets also delivers strong performance. Tantan International returned to substantial growth for the first time in nearly a year. Following a full year of product adjustment and rebranding executed by our Singapore team, additionally, we completed the acquisition of a European dating product happen. at the end of Q3. Happn founded in Paris, France, primarily leverage location-based services to facilitate online to offline dating experiences for users. With Happn joining our portfolio, the group's product landscape now officially extends to Europe, further enriching the diversity of our overseas dating products. We believe that the high quality dating brands like Happn, which originated in Western developed world, have significant growth potential in Asia Pacific region. In the past, these brands were constrained by limited resources and insufficient localization expertise, preventing them from fully realizing their potential in the Asia Pacific region. We hope that the combination of fellow groups and this brand will fully unleash that potential. We have enough patience and commitment to create a high-quality dating experience for young people in China and Asia. We are confident that these dating brands will inject new momentum into the group's future. This concludes my remarks. Now, let me pass the call over to Kathy for the financial review.