Cheetah Mobile Inc.

there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note, today's event is being recorded. I would now like to turn the conference over to Helen, Investor Relations for Cheetah Mobile. Please go ahead, Helen.

Thank you, operator. Welcome to Cheetah Mobile's third quarter 2025 earnings conference call. With us today, our company's chairman and CEO, Mr. Fushun, and our company's director and CFO, Mr. Thomas James. Fully in management's prepared remarks, we'll welcome back the Q&A section. Please note, the management's credit will be presented by an AI agent. Before we begin, I'll refer you to the safe harbor statement in our earnings release, which also applies to our conference call today. I, too, will make a forward-looking statement. At this time, I will now turn the conference call over to our chairman and CEO, Mr. Fuxiang. Fuxiang, please go ahead.

Good day, everyone, and thank you for joining Cheetah Mobile's third quarter 2025 earnings call. I'm Fuxiang, the CEO of Cheetah Mobile. I'm very happy to report that our turnaround efforts are paying off. We hit quarterly break even ahead of expectation. In Q3, we made an operating profit at first time in six years. We believe we are well positioned to approach breakeven for the full year 2025. At the same time, our growth stays strong in Q3, building on the momentum from the first half of the year. Q3 revenue rose 50% year-over-year, driven by both our internet business and our AI and other businesses. Our AI and other segment grew even fast, up 151% year-over-year and 6% quarter-over-quarter, and now presenting 50% of total revenues. So far, 2025 has been a solid year for Cheetah. Revenue in the first nine months rose around 48%. We became profitable in Q3 and took important steps in our two AI focus areas, AI robots and AI tools. We believe this progress shows our investors were right to trust our vision and work. I want to thank our shareholders for their support. I know many of you invested in Cheetah because you believe in our ability to deliver a comeback. We are working hard every day to make that happen. I remain fully committed to leading the company forward, and our results this year show that the turnaround is real. Looking ahead, we will focus on driving growth by building new growth engines through our AI initiatives, AI robots, and AI tools. Today, I will talk about our vision and progress in these areas. Thomas will follow with more on how we are building a lean cost structure to support long-term profitability. Both AI robots and AI tools have enormous market potential. And Chittimobot has strong advantages to build new growth engines in these areas. Additionally, we hold minority investments in several companies in this space. which could extend our organic growth in the future. In Q3, our AI robotic business contributed about 15% of total revenue, growing about 100% year-over-year and 40% quarter-over-quarter. We see two drivers of this growth. First, strong demand for our voice-enabled wheel robots in China. In Q3, For the second quarter in a row, revenue from these robots doubled year over year. They now make up around 5% of our total revenues, supported by both repeat orders and new wins. As of September 30th, 2025, The contract backlog for these robots in China was up 32% from the previous quarter. Since then, the backlog has doubled again, reflecting sustained demand. These trends make us comfortable for a continued strong yield-weight growth in our revenue from these robots in the fourth quarter. Why is demand rising? First, more customers are open to using robots. And today, wheeled robots are the most reliable and cost-effective option for large-scale deployment. But more importantly, product experience is getting better. AgentOS, our voice system powered by AI agents, gives our robots a smarter brain to understand and respond more naturally to people. That improved experience allows us to charge a premium even in a competitive market. But most of our revenue growth came from higher shipment volumes. We believe AgentOS not only enhances user experience, but also strengthens our leadership in voice-enabled robots. Our voice-enabled wheel robot, which integrated with Google's Gemini 2.5 Flash, was recently featured by Google Cloud at its AI Asia conference. We believe this is a strong sign of endorsement. We are continuously upgrading our AI agent capability and applying it to our products. Looking forward, we think these robots can do even better overseas as we combine third-party gen AI and multimodal models with our strengths in voice AI and autonomous mobility to drive real-world applications. Second, our robotics...

Pardon the interruption, everybody. This is the conference operator. It looks like we've lost the main speaker connection. I want to place hold music in the call, and we'll get them connected again. Please stand by.