Cheetah Mobile Inc.

Good day, and welcome to the Cheetah Mobile first quarter 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Ms. Helen Jingshu, Investor Relations of Cheetah Mobile. Please go ahead.

Thank you, operator. Welcome to Cheetah Mobile's fourth quarter 2025 earnings conference call. With us today are our company's chairman and CEO, Mr. Fushun, and our company's director and CFO, Mr. Thomas Jin. Following management's prepared remarks, we will conduct the Q&A section. Please note that the management's prepared remarks will be presented by an AI agent. Before we begin, I refer you to the safe harbor statement in our earnings release, which also applies to our conference call today, as we will make forward-looking statements. At this time, I would now like to turn the conference call over to our Chairman and CEO, Mr. Fushun, please go ahead.

Good day, everyone. Thank you for joining us. Q1 2025 earnings call. I am Fushun, the CEO of Chica. We started 2025 with a clear plan to strengthen our position in both our longstanding and new business areas. Q1 2025 marked a strong start to the year, and I'm happy to share some great news about how we are doing. First, our revenue grew significantly and we made solid progress in cutting losses. In Q1, our total revenue went up 36% compared to last year and 9% compared to last quarter. Our internet business did especially well with a 46% increase in revenue year over year. Our AI and recovery segments grew 23% year over year and accelerated to 30% quarter over quarter. Just as important, are lost so sharply while still investing in AI and robotics. And we believe this positive momentum will continue. Second, AI agents are becoming a real game changer. As smarter AI models keep improving, they can now go beyond chatting. They can handle real tasks and solve real problems with our strong background in building and launching products. We believe Chita is well-positioned to take advantage of this big shift. We are actively applying aging technology to upgrade our consumer products and power our innovation pipeline. These smart enhancements are making our products more efficient, user-friendly, and aligned with the expectations of the new AI era. For example, we launched DeepRow MAI tool app that turns videos, audio, PDFs, and other documents into concise summaries and mind maps, making knowledge easier to digest and act on. Deep role, a strong example of how we are planning AI agents to create practical data use tools that improve productivity. Third, AI has always been at the center of our AI strategy. We are investing even more in R&D and using AI agents to upgrade our consumer products and robotics. One of our biggest steps forward is AgentOS, our next generation bullet system for service robots. AgentOS is designed to be a fixable digital purpose AI brain that can handle everyday tasks and further strengthen our leadership in voice-enabled robots. Since its inception, we have been working with our distributors to test AgentOS. Customers say AgentOS makes the interaction with robots feel much smarter. It understands the conversation, notices what people are wearing, and can use tools like They also like that it doesn't get confused. If you pause, say something wrong, or switch between languages. We are already working with schools, therapy centers, libraries, and museums to bring Asian OS into their daily routines. Our goal is to create industry-specific apps on top of Asian OS that's smart, helpful, and personalized. He's asking great people, give presentations, help care of the elderly, and offer companionship. They will use tools and keep learning over time. This will help us grow our market share and move closer to general AI that can handle many tasks. We plan to offer agent OS for free first to enhance our robot performance. We see strong potential for our future subscription-based business model. In the coming months, we will add agents to our existing apps, including our flagship device, and introduce new AI tools to help users work more efficiently in the LLM era. At the same time, our legacy internet business remains strong. It continues to deliver steady revenue and profit, and it gives us a natural entry point for our new AI experiences. Overall, the strength of our legacy business gives us the resources we need to push forward with our AI plans. While staying financially responsible, to wrap up Q1 2025 was a strong quarter. We grew our revenue, reduced our losses, and took steps in our AI journey. We believe agentic AI is driving the Chinese LLM industry into a new phase. Shifting from infrastructure development to application-driven innovation, this change benefits companies like us. Those with a proven track record of turning cutting-edge technologies into real-world products across the PC, mobile, and now ARS. Our ability to productize innovation is what truly sets Cheetah apart in this new phase of AI application. We remain focused on building AI especially utility-focused AI tools and robotics that not only understand people, but also help them get things done. Thank you.