Yuanbao Inc.

Ladies and gentlemen, good day and welcome to Yuanbao Inc's second quarter 2025 earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Stella Liu, Investor Relations and Strategy Associate Director. Please go ahead.

Thank you, operator. Please note that today's discussion will contain forelooking statements. made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are now guarantees of future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the complex control and could cause actual results to differ materially from those mentioned in today's press release and discussion. A general discussion of the risk factors that could affect Yuanbao's business and financial results is included in certain filings of the company with the Securities and Exchange Commission. The company does not undertake any obligation to update this forward-looking information, except as required by law. During today's call, management will also discuss certain non-GAAP financial measures. For definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. Joining us today on the call from Yuan Bao's senior management are Mr. Ray Fang, our chairman and chief executive officer, and Mr. Ray Wan, our chief financial officer. Mr. Fang will deliver his remarks in Chinese, followed by an English translation. We will conclude the call with a Q&A session. As a reminder, this conference is being recorded. In addition, a webcast replay of this conference call will be available on Yuanbao's investor relations website. I will now turn the call over to our Chairman and CEO. Mr. Fang, please go ahead, sir.

大家好,欢迎参加元宝2025年第二季度财报电话会。 本季度,我们再次以出色的业绩表现印证了 In the second quarter, the company's total revenue increased by 25.2% with a 10.3% growth rate, reaching RMB 10.7 billion, setting a new record. The net profit was increased by 55.6% to RMB 3.05 billion with a net profit of 28.5%. This means that we have maintained stable profits for 12 consecutive quarters. As of the end of the second quarter, our cash reserves reached RMB34.2 billion. We have established a solid foundation for future strategic expansion and technological innovation. We have highlighted financial results, which is due to the continuous breakthrough of the operating end. This quarter, the total number of new insurance bills broke 7.9 million. The size of users and market penetration continued to rise. This series of results to fully verify our ahead-of-the-line deployment on the technical ground and the continuous release of profit and loss.

Hello everyone. Thank you for joining our second quarter 2025 earnings conference call. Last quarter, our stellar results once again demonstrated our technology-driven growth momentum. In the second quarter of 2025, our total revenues reached a record 1.07 billion RMB, an increase of 25.2% year-over-year, and 10.3% quarter-over-quarter. Net income surged 55.6% year-over-year to 305 million RMB, with a net income margin of 28.5%, marking R12's consecutive quarter of profitability. As of the end of June, our cash reserves stood at 3.42 billion RMB, providing a solid foundation for future strategic expansion and technological innovation. Our strong financial performance was underpinned by continued operational breakthroughs. In the second quarter, the number of new policies issued reached a record high of 7.9 million, while our user base and market penetration continued to expand. These achievements fully validate our forward-looking technology investments and highlight our sustained improvement in profitability.

In terms of service and protection, We have achieved substantial progress in expanding our security range, improving our technology, and upgrading our service system. So far, Yuanbao has covered all the provinces in mainland China. We have opened up a market that is not fully served by high-performance products. At the same time, we have opened up a market that is not fully served by high-performance products. At the same time, we have opened a market that is not fully served by high-performance products. In terms of quality of service and protection coverage, we achieved substantial progress across three key areas, extended coverage, drop additional efficiency with technology,

and updated our service ecosystem. To date, Yuanbao has extended coverage to all purposes in mainland China, penetrating underserved markets with cost-efficient products. Our interconnected networks of model deliver seamless support throughout the entire customer journey, deeply empowering our operations and enabling us to capture new opportunities in the inclusive insurance market. we continue to increase our R&D investments in AI technologies. As of the end of June, our AI R&D team represented over 10% of our total workforce, providing solid technical support for the ongoing optimization and iteration of our core engine.

In terms of technology, we continue to deepen the language model in the company's operation. Through three major technologies, to enhance our competitiveness and improve overall efficiency. First, we drive efficiency improvement by using AI. In this quarter, we will review the code, divide the time, manage Git, report, monitor, online page abnormalities, search, and other double-edged AI fully involved in R&D, testing, and other key stages. Not only do high-efficiency take on a large number of repetitive, high-rules, and strong artificial operations, and use its powerful automation processing and intelligence analysis capability to significantly improve our programming efficiency. The speed of detection of test coverage depth and problems at the same time enhances the stability and observability of the imaging system. At the same time, we are accelerating the construction of a unified internal intelligence platform. The platform will provide a development framework for intelligence systems with low and no code, and support the knowledge storage management tools for diversifying and purchasing data. From a technology strategy standpoint, we have been further integrating large language model applications across our operations

to reinforce our competitiveness and improve efficiency. Our approach is anchored in three key areas. First, we integrated more agentic AI capabilities into our workflows to improve operational efficiency. In the second quarter, we fully integrated specialized agents across critical R&D and testing workflows, including code review, log classification, kit management, report monitoring, and online anomaly detection. These agents not only significantly reduced repetitive rules-based manual tasks, but also leveraged advanced automation and intelligent analysis to substantially improve coding efficiency, test coverage, and issue detection speed, while enhancing overall system stability and observability. In addition, we are accelerating the development of a unified internal agent platform. The platform features three key components, low-code, no-code development frameworks for rapid agent customization, intelligent knowledge management tools capable of processing multi-source heterogeneous data, and standardized multimodal interaction interfaces. This comprehensive platform will empower our business teams to develop tailored agent applications quickly and cost-effectively, accelerating enterprise-wide adoption across diverse business scenarios.

Secondly, through RAC technology, we have boosted the accuracy of our business through RAC technology. We have developed RAC technology systems that can be used to extract and analyze RAC product terms. We have developed RAC technology systems that can be used to extract and analyze RAC product terms. with the RAC technology of the memory map, realized structural analysis and accurate information detection, and significantly improved the question-and-answer accuracy of the robot customer service. At the same time, we applied RAC technology to expand into enterprises and knowledge management scenarios, and built a platform for companies and knowledge banks, and realized a unified analysis of contract terms, financial system, customer service knowledge, business regulations, and other large-scale non-structural documents. Second, we leverage RAC technology to empower our specialized insurance knowledge base.

driving significant improvements in business accuracy. We built a proprietary rack system for extracting and interpreting insurance policy clauses, tackling industry-wide challenges such as multiple coverage options and nested liabilities, which often lead to ambiguous retrieval results. By incorporating graph rack technology, we achieved structured parsing and highly accurate information retrieval. which significantly improved the accuracy of our AI customer service responses. We also extended our RAC technology to enterprise-level knowledge management, building a company-wide knowledge management platform to unify the parsing and structured storage of a massive volume of internal unstructured documents, including contracts, financial policies, customer service guidelines, and business regulations. This creates a reusable enterprise-level intelligent knowledge base. With this foundation, our legal teams can efficiently retrieve historical contracts and relevant clauses using natural language search, and functional departments can respond rapidly to employee inquiries, dramatically improving knowledge accessibility and operational intelligence across the company.

Third, we use multi-modal large-modal interaction applications to re-examine the service experience. Based on the Transformer architecture, we have designed a voice emotion recognition model with a speed of more than 80 million. The model has excellent deep learning characteristics and emotional optimization capabilities. Through in-depth analysis of the deep learning characteristics and continuous mode of voice signals, we can accurately identify complex emotional states such as happiness, joy, anxiety, sadness, and so on. The recognition results can be triggered in time the corresponding smart dialogue system, or to remind the staff to provide targeted communication methods and process adjustments to significantly improve service quality and user satisfaction. In addition, we have developed a smart voice engine that integrates multi-mode deep neural networks and advanced voice synthesis technology to be able to generate naturally personalized synthesized voices based on short-term voice samples, and can be integrated into the system Third, we are reshaping the service experience through multimodal applications

We have independently developed a voice emotion recognition model, powered by the transformer architecture with over 80 million parameters, featuring advanced acoustic feature extraction and emotion generalization capabilities. The model conducts deep analysis of speech signals and temporal patterns to accurately detect complex user emotions, such as happiness, joy, urgency, and distress. The recognition results instantly trigger context-appropriate responses, either by adjusting AI-driven dialogue flows or alerting human agents to provide tailored communication approaches and processes, significantly elevating service quality and user satisfaction. We have also developed a proprietary small voice engine that combines multimodal deep neural networks with advanced TDS technology Using only short voice samples, it generates natural personalized synthetic voices with adjustable tone, speed, and emotional expression by integrating prosody control and adaptive voice modulation algorithms. This allows it to flexibly adapt to diverse user preferences and service scenarios. This scalable technology has greatly improved user satisfaction and reinforced Yuanbao's leadership in delivering intelligent human-like services for inclusive insurance.

Finally, in terms of industry influence construction, in May this year, we joined hands with Tsinghua University's Wudaokou Financial Academy, China's Insurance and Old-age Financial Research Center, and released the 2024 Chinese Internet Insurance Consumer Action Report. The report deeply explored the characteristics of Internet consumers, demand and purchase behavior, high-quality development of the Internet insurance industry, and response to industrial innovation. Provided a very valuable consumer demand level of advice and reference, and further consolidated the professional influence of Yuanbao in the industry. Looking forward to the future, the national management department issued the Banking and Insurance Industry General Financial High-Quality Development Implementation Plan, This is the core goal of the five-year system construction. As for the five-year growth direction of Yuanbao, it is highly integrated. Although the policy east wind and the industry stable good attitude, we will actively build a new ecosystem of insurance plus technology plus service, deepening AI technology innovation and chain application, expanding and maintaining deep cooperation, and at the same time, further infiltrate into a wider market, effectively helping target people, and actively support the high-quality development needs of general insurance, creating long-term and sustainable value for consumers, partners, and shareholders. Next, let's have our CFO introduce our second quarter financial performance.

Before we wrap up, I'd like to highlight our proactive role in driving industry advancement. In May, we jointly released the 2024 China Online Insurance Consumer Insights Report, with the Research Center for China Insurance and Pension Finance at Tsinghua University PBC School of Finance, marking our fourth consecutive year of this publication. The report provides an in-depth analysis of online insurance consumers' characteristics, pinpoints, and purchasing behaviors, offering actionable insights and guidance at the consumer demand level to advance high-quality development and navigate transformation in the online insurance sector. It also further strengthens yuanbao stock leadership and professional influence within the industry. Looking ahead, the Implementation Plan for High-Quality Development of Inclusive Finance in the Banking and Insurance Sector issued by the National Regulatory Authorities has identified the development of an inclusive insurance system as a core five-year objective. which aligns perfectly with Yuanbao's strategic focus over the past five years. Branding our favorable policy momentum and the industry's steady growth trajectory, we will accelerate the development of an integrated insurance, technology, and services ecosystem. This includes advancing AI-driven innovation and end-to-end AI applications, expanding strategic collaborations with insurance carriers, and increasing our penetration in broader markets to efficiently reach target consumer groups. By proactively addressing the evolving demand for high-quality, inclusive insurance, we are committed to creating long-term, sustainable value for consumers, partners, and shareholders. Now, I will turn the call over to our CFO, Ray Wan, to present our financial results. Thank you, everyone.

Thank you, Christophane. Thank you all for joining today's earnings conference call. I'm pleased to walk you through another quarter of strong financial performance marked by double-digit growth in both revenue and profitability, enhanced operational efficiency, and a strengthened cash position. Starting with our top line results, total revenues for the second quarter reached 10.07 billion RMB, representing a robust 25.2% year-over-year increase and a 10.3% quarter-over-quarter increase. This performance was primarily driven by continued momentum across our insurance distribution and system services revenue business. Breaking this down further, insurance distribution services revenues grew to 350.6 million RMB, up by 29.6% year-on-year, fueled by an increasing number of policies transacted on our platform, supported by our enhanced targeted marketing efforts. System services revenues reached 718.2 million RMB, a 23.8% increase compared with the same period last year, driven by ongoing improvements to our AI-integrated full consumer service cycle engine, which enhanced our marketing and precise analytics services and strengthened our system service offerings for both new and existing insurance carriers. Moving to expenses, total operating expenses increased by 16% year-over-year to 772.2 million RMB, Operation support expenses came in at 40.9 million RMB, remaining stable compared with the same period last year. Selling and marketing expenses rose by 14.1% year-over-year to 602.1 million RMB as we ramp up our marketing efforts to attract new consumers and retain existing ones. General and admin expenses increased by 6.3% year-over-year to 47.5 million RMB, primarily due to higher personnel costs including salary, bonus, and benefits. R&D expenses increased by 55.4% year-over-year to 81.7 million RMB, reflecting our intensified research and development efforts and the expansion of our R&D team to reinforce our leadership position as a technology-driven online insurance distributor. As a result of this strong top-line growth and disciplined cost management, our profitability improved significantly. Net income jumped by 55.6% year-over-year to 304.7 million RMB, with the net income margin expanding to 28.5% compared to 22.9% the same period last year. Non-GAAP adjusted net income rose by 57.8% to 325.2 million RMB, representing a non-GAAP net income margin of 30.4%, up from 24.1%. We also maintained strong cash flow and a healthy cash position. This quarter, we generated 453.2 million RMB in operating cash flow, ending the quarter with total liquidity of 3.42 billion RMB, representing a 99% year-over-year increase and a 23.6% increase quarter-over-quarter. In summary, our second quarter performance builds on the strong momentum from the first quarter, establishing a clear growth trajectory for the second half of this year. With our robust financial foundation and substantial liquidity reserves, we are strategically positioned to capitalize on emerging opportunities while advancing our long-term strategic priorities. Thank you, and I would like to open the call to Q&A. Operator, please go ahead.

Thank you. We will now begin the question and answer session. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English. There may be a short pause as attendees register their questions. Once again, that's star 11 for questions. We will now take our first question from the line of Thomas Wang from Goldman Sachs. Please go ahead, Thomas.

Thank you, Ms. Wang. Congratulations on a good performance this time. I have a few questions. First, I would like to ask about some data on the industry. We are seeing that the commission rate, including the take rate of our company, What is the trend of building a military and saving money? The second question is that we also see that investors are more worried about the red line in the second half of the year. I don't know if our company is in a situation where the red line is not particularly obvious in the second half of the year. I don't know what our expectations are for the increase. And then the third question might be that Ray also mentioned that the company also has a lot of cash on the account. I don't know what our company is thinking about, for example, in terms of some repurchases or dividends. Then I'll simply translate it as, congrats on the results. And there are just three areas. So firstly, I think as an operating matrix, can you briefly explain how the commission rate, take rate, and also premium per policy, how is that changing? And secondly, if we don't see any macro stimulus policy in the second half of this year, how do we see that potentially impact our growth outlook? And thirdly, given that there's ample cash on the balance sheet, how does the company think about shareholder return policies such as dividend and buyback? Thank you.

Thank you, Thomas. This is Ray Wong. I'll take the Q&A session. So in terms of metrics, we don't disclose commission rate on a quarterly basis, but our commission rate historically for second quarter has remained relatively stable. For take rate, it can be roughly estimated by dividing revenue by premiums. The take rate was around 10% from second quarter. Going forward, we expect that rate to remain at that level. Now, looking at the full year picture, we still expect most of our metrics to remain stable, but to emphasize what we focus on is really to optimize, continue to optimize our ROI to make sure that as we acquire new consumers and customers, we can always maintain a very healthy level of ROI, which translates to a healthy level of growth and profitability. Your question on premium per policy, Our average short-term premium policy remained relatively constant with historical levels, tracking normal range within the year and quarter over quarter. Now, we do see a slight decrease on premium per policy, mainly because of two reasons. One, we have been adjusting our marketing approach in real time, and different approaches lead to different outcomes, such as shift in age, profile, spending power, and consumption habits. go to a lower age group, your typical premium for policy is slightly lower. At the same time, there's a change in product mix. Our short-term critical illness policies typically have slightly lower premiums for policy compared to short-term medical insurance. And slightly increased proportion of critical illness products in Q2 contributed in a very marginal decrease overall. Your second question on potential impact of weaker macro backdrop in the second half. While the economic trajectory for the second quarter remains uncertain, our platform is always positioned to demonstrate resilience through operating a high-growth short-term health insurance sector, which remains significantly under-penetrated in China with substantial long-term growth potential. Secondly, our proprietary and powerful engine that continuously enhances its predictive accuracy at every stage will continue to ensure that as we acquire new customers, our ROI remains at above one. And even considering potential macroeconomic variability in the second half of 2025, we are closely monitoring several key industry trends. Number one, customer acquisition costs could lower, which would benefit us in terms of acquisition. We could see a gradual shift towards more value-oriented insurance products as consumers become more price sensitive. That might lead to modest adjustments in the average premium. And historically, such environments have tended to accelerate market share consolidation towards players with established scale advantage and efficient consumer acquisition cost management. Now, your last question on our current cash balance and how we think about shareholder return in the future. Now, we haven't explicitly said that we will do anything going forward, but for us, we continue to evaluate the best strategies in providing the best shareholder return through various operational and capital markets opportunity. And dividends is certainly, the question you asked, is certainly one of them. And obviously when we have more, we will certainly disclose to the market.

All right. Thank you. Our next question comes from the line of Amy Chen from Citi. Please ask your question, Amy.

Hi, Benjamin. Thank you for giving me the opportunity to ask questions. I have three questions. The first one on business outlook. Appreciate your insights on the resilience of your business model despite macro uncertainties. I'm wondering if you could provide some guidance on revenue growth as well as earnings growth for the full year of 2025 as well as 2026. The second question is about compliance. We saw news recently that some health insurers were being fined for automated renewals that were implemented on their website when selling online health insurance policies. As a broker, what kind of measures did Yuanbao adopt to avoid such scenarios and to avoid customer complaints? The third question is on revenue mix. We noted that in the second quarter, distribution services actually booked a relatively faster year-on-year growth compared to system services. What's driving this growth and how should we think about revenue next going forward? Thank you.

Thank you, Amy. So your first question on guidance for revenue earnings for this year and next. So we haven't given explicit guidance for 2026 for 2025. We maintain that we're always balancing growth and profitability. Expect full-year revenues continue to grow at least 20 to 30% year-on-year and profit margin to remain at least above 20%. Your second question on, you know, potential insurers being fined for automatic renewals. Now, currently we're not, we have not been affected by the incident that you mentioned. We always provide consumers with clear policy term explanations. and demonstrations during policy signing so our customers can choose their preferred auto renewal settings during the insurance sign-up process. Regarding regulatory compliance, we remain effective communications with regulators and have established comprehensive governance documents including marketing conduct policies complemented by mandatory compliance review processes to standardize business practices. So all of our insurance products are developed with partner insurers and every policy term and renewal process approved by regulators. Your last question on the difference in growth rates of the two business segments. So the revenue recognition methodology differs between these two, insurance distribution service and system services revenue. System services revenue is recognized as a one-time event. while commissioning come from insurance distribution services follows an amortization model. So as we see system service demonstrate the value we deliver to insurers, including our customer acquisition capabilities, technological expertise, and AI-driven engine, so there's mainly a timing difference in terms of difference in growth rates, but also the difference in how we recognize these revenue items also affect on a quarterly basis, the growth rates. But if we smooth out or look in a longer period, we're probably going to see more smooth trajectory.

Right. Thank you. We will now take our next question from the line of Singtao Chen of CICC. Please go ahead, Singtao.

Hi. Thank you for having me. And I would like to ask three questions. First, against the backdrop of ongoing healthcare payment reforms in China. So I would first like to ask what potential opportunities these reforms present to Yuanbao and how the company is preparing at the product level. And secondly, regarding the widespread application of AI, I am curious. I want to ask about the specific areas where AI is currently supporting the company's operations and what financial benefits or impacts has been realized. And finally, based on the release documents, I would like to understand the key reasons or key drivers behind the noticeable difference between the company's premium growth and revenue growth in the second quarter. Thank you.

Thank you, Jintao. The first question on the medical payment method reform. So under the payment reform for healthcare insurance, the utilization of innovative medicines may be constrained due to lost cost control measures. So in response, the National Healthcare Security Administration introduced commercial health insurance innovative medicine list aiming to address the unmet demand for high-value innovative medicines not covered by basic insurance through commercial health insurance channels. So the introduction of this policy will effectively address the value perception issue in commercial insurance for consumers. So we do think that's a very beneficial trend, showcasing that the regulators are clearly supportive of commercial insurance. Now, by enabling access to premium medications beyond the national medical insurance coverage it can help boost conversion rates. So overall, against the backdrop of Medicare payment method reform, the Commercial Health Insurance Innovative Medicine Catalog establishes new reimbursement channels for innovative medicine through policy deregulation and expanded payment coverage while simultaneously creating incremental market opportunities for players like us that sell primarily commercial health insurance. Number two, a question on AI. So as you know, our entire engine or business is run on our AI engine, which leverages gradient boosting machine and an approach that progressively optimizes through multiple decision trees. So we have 4,800 or 4,900 models that's already existent in our engine. This makes it particularly effective for highly complex multi-stage decision processes with strong structured data patterns. So we create a deep integrated modeling system where multiple models simultaneously run A-B tests across several feature data warehouses. So that's the underlying engine of our business. So as you can see, the reason we're able to maintain profitability for the last 12 quarters is because we have been continuously optimizing our core engine. Number two, while AI powers our core infrastructure, we've also invested heavily in advancing operationalizing large language model capabilities. So as you heard from Mr. Fung, we enhance operational efficiency through key decision dimensions. Agents are genetic AI, RAG systems, and multimodal systems. For example, leveraging RAC technology, we built an LOM service framework integrated with a proprietary insurance knowledge base. So when users inquire about insurance-related topics or products, these RAC systems enable the model to retrieve and reference relevant content from our database, significantly improving query resolution accuracy. We haven't provided explicit quantitative measures in terms of how large language model application has improved our overall business efficiency, but we may do so in the future. Now, in terms of our current engine, the efficiency can be simply viewed through our existing financial performance. Now, your last question on the year-on-year growth rate of policies premium versus difference in revenue growth rate. Now, in Q2, we achieved business growth with expanded revenue scale and increased number of new policies. Our insurance distribution services earn commercial fees as a percentage of premiums paid by insurance policyholders based on terms specified. And insurance policyholders generally pay premium monthly during the policy term. Now, due to amortization deferral effects, the recognized revenue growth rate appears slower than the number of new policies or premiums because policies and premiums are recognized at 100% where distribution service revenues is amortized. That's really, again, like the previous question, a timing difference. Now in Q2, both our premium for policy and take rate experienced very slightly decline as previously addressed in the second question. The fluctuation in premium for policy primarily stems from a flexible adjustment in marketing strategy an increased proportion of critical illness policy to optimize our ROI and our growth and profitability.

Thank you. Our next question comes from the line of Yue Xu from China Securities. Please ask your question, Yue.

Hi, management. Thanks for taking my question. My first question is about the unit economics. How do we think about the ROI as you scale up your business going forward? And the second question is about how the management team think about the slap caused by major tech platforms like Alibaba or Tencent. And lastly, my question is about the international expansion. Could you share your thoughts about the future roadmap? Like, are you considering expanding your product portfolio into New insurance categories or or to every are outside China Yeah So thank you.

Thank you issue Our engine plays a crucial role in expanding our scale and achieving profitability now our ROI has remained positive for over ten quarters and mainly due to our engine and So the system calculates real-time return rates across different service paths for every consumer that we acquire at every stage. So identifying optimal solutions to maintain our current ROI above one is arguably our most important metric. Now, going forward, as we continue to scale, we still believe that this market is still highly under-penetrated. And we see a continued path of a very healthy growth and very healthy profitability going forward, which, as you can translate, into a very healthy ROI. Now, if large platforms and incumbents try to adopt our model and enter this market, we do think it will be very helpful for the overall industry because right now if the industry is still growing very, very quickly, more entrants coming in will provide more consumer guidance and support and awareness of lack of commercial insurance coverage to the industry. However, as we have seen for the past few years, major players are already competing in this market just through different business models. So we do think increased competition may be helpful for the entire industry. Now, in terms of who we are competing with, because we are advertising primarily on feed-based systems online, we're not only competing with existing distributors, but also other advertisers that compete for user time. across these platforms, including e-commerce players, game advertisers, et cetera. Your last question on international expansion to replicate this model overseas. So our Hong Kong office officially opened in July this year. With this expansion, we're building a key platform to tap into new markets and create fresh opportunities down the road. In August, we successfully acquired an insurance brokerage license in Hong Kong. Moving forward, we will continue to explore different businesses and actively seek a second and third growth curve. But as of now, we don't have additional information to share. But obviously, we'll share more details as specific plans and scale take shape. Thank you.

Thank you all for your questions. And that concludes the question and answer session. I'd now like to turn the conference back to Ms. Stella Liu for any additional or closing comments.

Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly or present a financial communication. Our contact information for IR in both China and the US can be found in today's press release. Have a great day.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.