Cheetah Mobile Inc.

Good day and welcome to the Cheeto Mobile third quarter 2025 earnings conference call. All participants will be in 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 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, Alfredo. Welcome to Cheetah Mobile's third quarter 2025 earnings conference call. This is today our company's chairman and CEO, Mr. Fushone, and our company's director and CFO, Mr. Thomas James. For any management-prepared remarks, we'll welcome you back to our news section. Please note, the management script will be presented by an AI agent. Before we begin, I'll refer you to the State of Power Statement in your earnings release, which also applies to our conference call today. I, too, will make the word-looking statement. At this time, I will now turn the conference call over to our Chairman of the State of the Own, Mr. Fushun. Fushun, please go ahead.

Good day, everyone, and thank you for joining Cheetah Mobile's third quarter 2025 earnings call. I'm Fusheng, 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 night at first time in six years. We believe we are well positioned to approach break even for the full year 2025. At the same time, our growth stayed 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 segments grew even faster, 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 comfortable in Q3 and took important steps in our two AI-focused 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 Chiba Mobile 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 a voice-enabled wheel robot 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 30, 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 UA 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, real 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 real 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 strength 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. Thank you. Thank you.

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This is the operator. I've reconnected the main speaker line. Please proceed with your call.

Hello, everybody. This is Helen from Cheetah Mobile. I think there are some tax issues. Then there were calls that please connect this. I was just ready to play. So we're seeing all these prepared remarks. Very sorry for the inconvenience.

Good day, everyone. And about this growth. First, strong demand for our voice-enabled wheel robots in China in Q3. For the second quarter in a row, revenues 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 30, 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 real-life 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 the real robots are the most reliable and cost-effective option for large-scale deployments. 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 volume. 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 strength in voice AI and autonomous mobility to drive real-world applications. Second, our robotic arm business is growing steadily, supported by three key industry trends. Number one, in manufacturing, collaborative robotic arms are becoming more and more popular Because they're smaller, easier to install, and more affordable, they're also safer to work with. So they help fill many unmet needs in factories, like doing tasks that need flexible movement, careful and precise work, or real-time feedback. These tasks now rely on human workers today. Number two, in commercial spaces like coffee shops and smart retail, because of advances in lightweight design and easy programming and built-in vision of feedback, we're unlocking new use cases. Our team's ability to understand real-world needs and build practical products gives us an edge. Number three, robotic arms are a core part of embodied AI. As global demand for physical AI grows, we believe robotic arms will play a key role in bringing AI into the real world. We strengthened our robotic arm business through an acquisition demonstrating our strategy of combining organic growth with M&A. for us. It is already profitable with tens of millions of RMB in annual revenue, most of it from overseas customers. By bringing this company into our group, we've expanded our product line and strengthened our presence in global markets. More importantly, we started testing how to combine our real robots with the right arms to create a mighty AI that can handle more complex real-world tasks. It's still in early days, but our strong foundation in both technology and product development puts us in Moving on to AI tools. This is another area where we see long-term potential. We're using AI agents to quickly build a variety of new tools for both PC and mobile, and we're also upgrading some of our existing products with AI features. For example, in one of our legacy products, Google antivirus users can now interact with their PCs through natural language to complete tasks like system settings. No need for complex manual steps. In small-scale testing of other tools like medium summarizers, We've also seen strong user engagement and good willingness to pay. What makes this stage exciting is that AI coding apps have greatly reduced the time and cost it takes to build and launch new products. This gives us the flexibility to test many ideas quickly and focus on what works. We're still in the early stages. We believe our strength in building user-friendly tool-based apps is And since subscriptions already make up more than 60% of our Internet revenue, we're counseling in our ability to monetize future products through the same model. To close, I believe Cheetah has moved beyond the turnaround phase. Looking ahead, our focus is on building long-term value by scaling our AI robot business and capturing the upside of AI-native tools. While we're still early, both segments have real momentum and strong potential to drive growth in the years to come.

Thank you, Houshan. Hello, everyone, and thank you for joining the call. On the satellite stage, all financial favors are presented in RMB. In the third quarter of 2025, we are pleased to reach an important milestone. We reported our first quality operating profit in the past six years. This achievement reflects the disciplined execution of our team and the continued improvement in our operational efficiencies. Operating profit was RMB 4 million in the quarter. On a long basis, operating profit reached RMB 15 million, compared with an operating loss of RMB 16 million in the same period last year and an operating loss of RMB 2 million in the previous quarter. Let me walk you through the key financial results in the quarter. Total revenue reached RMB 200. over year, driven by 151% growth in our AI and other segments. These segments accounted for 50% of total revenue, compared with 30% in the same period last year. Our internet business remained stable, with revenue increasing 6% year-over-year in June 3. Gross profit increased by 64%. Operating profit improved to RMB 4 million, compared with an operating loss of RMB 72 million a year ago. On a long-term basis, operating profit was RMB 15 million, compared with an operating loss of RMB 60 million last year. year. Adjusted operating loss for our AI and other segments narrowed by 82% year-over-year and 53% quarter-over-quarter to RMB 15 million in this quarter. On the balance sheet side, our financial condition remains and long-term investments of $107 million. We continue to maintain discipline in cash flow management and capital allocation. Looking ahead, for our internet business, we will continue to deliver robust operating profits. We want to be clear that we prioritize operating profit growth over revenue growth. For our AI and other business, we also aim to further manage our costs, First, we are focusing on high-potential use cases for our robotic business. That is the only way to build sustainable and profitable business models. We concentrate on AI-powered, voice-enabled real robots, products that have proved to deliver a highly competitive ROI, achieving alternatives for reception museums and exhibition scenarios. Second, we leverage third-party and open-source models and tools to enhance our robotics experience. This approach allows us to accelerate product updates, thereby increasing our overall efficiency. Third, for our advertising agency service and multi-cloud management service, we are taking a more disciplined approach. strengthening concert control, deliverance, and customer value to better manage our costs and expenses. Overall, at the corporate level, we will continue to invest in AI robots and AI tools. As we believe these two areas will drive our long-term revenue growth. However, we will stay disciplined and our lives focused in every decision. I believe CHETA has entered a much better phase compared with a year ago. In product development, as we shared in previous calls, we encourage our employees to use AI tools, such as AI coding apps to build their own AI, not only to improve productivity, but also to enhance decision-making. Leveraging AI allows us to develop products faster and operate them with fewer people than before. Most importantly, with the AI opportunity, ongoing recognition from the customer market, we are seeing renewed confidence and momentum across our teams. I personally believe these changes, stronger execution, disciplined investment, improved efficiency, and an inspired team form the foundation for Chita to reveal its success in this new chapter. Thank you. We are now happy to take your questions.

Thank you. We will now begin. Yes, ma'am. We will now begin the question and answer session. To ask a question, please press star then 1 on your telephone keypad. If your question has been addressed and you'd like to remove yourself from queue, please press star then 2. We'll pause for just a moment to assemble our roster. And our first question today comes from Thomas Chong at Jefferies. Please go ahead.

Good evening. Thank you for answering my question. We have noticed that the income of the robot business in Q3 has increased by nearly 100% compared to about 15%. Domestic voice robots and machines are the current two main growth points. How should we understand the market space they face? Which are the needs? Which are the scenarios that can be selected? How is the customer acceptance? Thank you.

Thank you, Jeffrey, for the question, Thomas. Let me answer this question. I think today's robot, today's telecommunications robot, after so many years of investment, has become more and more clear in finding its own positioning. One is a voice-to-speech robot. One is the mechanical currency we just purchased. In fact, it is a machine that writes currency. And these two markets actually have a very wide range of development prospects. You just asked which are state-of-the-art and which are selectable scenarios. In fact, mechanical money, you may hear that it is more useful. But the heavy-duty mechanical money we have acquired is more not like the past industrial scenarios. It is more in many service scenarios. It has its own market positioning in many of the newly added scenarios. The machine currency market is growing relatively fast overseas. And our machine currency business has achieved very stable and stable overseas market growth and better profits under the fact that there are not many investments. I think this is a very stable and stable machine currency market. The second is the voice-to-voice machine. To put it simply, at the very beginning, AI technology was not yet able to reach the level of real language understanding. So the market has not been growing much in the past few years. But since this year, we have seen that the interaction capabilities brought by the GPT-type large model technology are not very strong. So I now think that the voice-to-speech robot has started from a selectable scene We can see that not only our family is growing this year, but we can also see that the entire market, including our competitors, is growing. This is indeed a market that is growing, not just one family. So I think this market is heading towards a steel market. . . . . . . . . . . . . . . . . In fact, it is a natural translator. It is very clear in many languages. So I think next year, we will have a better market space overseas. Now the customer acceptance overall is much better than before. And I believe that with the product, I still believe that the product experience is the core of growth. As we continue to experience growth, the customer acceptance is also getting higher and higher. Thank you.

Operator, please move to the next question. Thank you. Our next question comes from Vicky Wei at Citi. Vicky, please go ahead.

管理层晚上好,谢谢接受我的提问。 恭喜公司新季度实现盈利。 我们知道公司在AI业务上还布局两大方向, AI机器人和AI工具应用。 How does the company balance the relationship between continuing to invest in AI business and maintaining profits in the long term? Is there any room for further optimization in the cost structure?

Have we set a long-term profit target? Thank you. Thank you, Mr. Kim. I will answer this question first and then see if Mr. Fu can answer it. If the company continues to profit in the medium term, I think it will still be affected by many external factors, including the market environment, the speed of product delivery, and my user experience and user feedback, and the impact of various factors. But for the company, how to balance and continue to invest in AI and maintain profit and capital control space, our internal strategy for the two business lines is relatively simple. The first is to ensure that Internet business can provide a stable base of profit. The second is to control losses and increase efficiency in AI and other businesses. If we don't invest in other new business lines, we will try to reduce losses. In terms of the Internet business, our goal is to maintain profitability and to improve profitability. We will continuously optimize all aspects of cost management, including server, delivery, operation, etc. Through the improvement of technology and the improvement of process efficiency, we can ensure that every investment we make is of the highest value. We can stabilize the profitability of this operation to a healthy level. The second aspect is the actual optimization of a product and the capability of AI. We can integrate AI technology into our to improve the user experience among the existing Internet products, enhance the efficiency of the network, and improve the level of individual evolution. To make this a better user experience, we hope that we can provide more users with annual and social benefits, in order to drive the health and well-being of our customers. So this is what we feel about the Internet business. Of course, we will continue to make a stable output profit through a discount or an increase of two years. But the second thing is that now AI and other businesses Let's look at the robot business first. The robot business strategy is also very clear. One is to focus, the other is to improve efficiency. In terms of product form, we will focus on the product form with high potential. The resources are focused on the product that can run through the commercial model of cloud robots like this. We have already seen that it is in the reception, exhibition, museum and other scenarios to prove its ROI. We will also focus on expanding these already proven tracks. to ensure that the investment can bring a real return. In terms of the path of technology, we will flexibly combine the open source model, the third-party model, and various open source tools to use the existing long-term resources to reduce our development and computing costs, so that we can more quickly and efficiently carry out and improve the experience and ability of our customers. In addition, in addition to AI and other businesses, we also have We will focus on contract quality, transaction efficiency, and the value of the client. Through these methods, we hope to steadily increase the profit and loss rate of these businesses. In addition, we also mentioned in the presentation that our company is actually to encourage all members to use AI tools. We hope that in the future, we can also bring about an improvement in the performance of projects and the cost reduction of R&D.

I would like to add that, first of all, there is definitely room for improvement in the cost structure. I think the biggest driver of optimization today is not from management methods, but from technical methods. As Thomas just said, we are really promoting all-in-one programming in all members. . . . . So we think we should have gone this way earlier, and this is also the effect that has been seen, but I think there will be room for improvement. This cost is on the one hand, and on the other hand, it will greatly accelerate the efficiency of our research, which is what you just asked. For example, in Yunlihe, We think that the efficiency of internal development will be much better than before. Our cost of development for new products will actually be much lower than before. So this gives us more opportunities to try. Because today, in this new era of AI, what can be done? To be honest, no one really knows. But for us, our long-term cost will be much lower than before. I think telecommunications will no longer appear like it did in the past, where a lot of people invested a lot of money to make a product. So this is definitely a space for optimization. Another stage is that we don't think that We now think that the core is our main demand. Because if we see good AI opportunities, including our machine learning market, if it has been continuously proven by the market that it has a high rate of growth, we may also increase some investment. Yes, but we will balance this relationship, which is to ensure the continuous development of the company, the continuous development of security, and to be able to catch up on new opportunities. I think this is our entire gene strategy, which is to seek innovation in documents. So probably this is our current goal. So we don't have a particularly digitalized so-called profit goal now. Because we think there are still a lot of opportunities in AI. So... This is our current point of view.

Thank you. Thank you, Officer. Please move to the next question. Absolutely. Our next question comes from Lydia Lin and Morgan Stanley. Please go ahead.

Hello, Officer. My question is, we saw that GCB's business is in the industry income ranking. Thank you. Then I will answer. Because this is what we acquired. This machine graduation has now become part of us.

That is, we are the earliest to invest in this company. So its entire financial strategy. At that time, we had a lot of communication. I think the reason why we went to Zogo was basically because this business is very real. I'm not pursuing this scale, but I'm pursuing profit. I should say that the earliest start is to pursue a truly profitable customer, rather than simply pursuing the scale and then constantly financing in this way. So it has a few characteristics. One characteristic is that it is based on overseas income. China has the earliest overseas customers. Secondly, because it is an overseas customer, in fact, it will accumulate in both channels and communities overseas. This accumulation actually takes time to accumulate. You build your reputation and brand overseas. It is not a simple set that can be achieved with such value. So the third one is that because I chose such a high-quality customer, so in terms of quality, it is very important. It's really a little bit of polishing. Because the mechanical arm is still a hardware product. It has too many details to polish. This kind of quality improvement is a little bit of effort to make it. It's not a simple design and it's done. So that's why It can guarantee a very good profit rate and continue to grow. I think the most core competitive advantage, let's talk about the competitive advantage. The first is Thank you.

Thank you, operator. Please move to the next question.

Our next question comes from Zhang Huang with Everbright Securities. Please go ahead.

Hi, Mr. President. Good evening, Mr. President. I am Huang Zheng from Guangda. My company has achieved very good performance. My question is, I also see that the company has some setbacks in the field of artificial intelligence. I don't know if I can ask the management of the company to share with us some of the progress or the direction that you are focusing on in the field of artificial intelligence in the future. Also, I don't know if I can ask the management of the company to share with us some of the changes in the field of artificial intelligence in the future. Will there be some high-value products to be expanded in the future?

Thank you. Okay. Anyway, I have always felt that the idea of GSMC is quite big. I think all of them will be called GSMC when combined with camera movement. There is no particularly clear definition. It should be said that we have been keeping enough attention and practice for this aspect. But you probably know my point of view. I always think that human-shaped robots have a long way to go in the business world. But this application of wheels plus coins, I believe it will be a chance to land on the business world earlier than human-shaped robots. But, Today's large-scale model or today's AI, I don't think this software technology has been able to achieve the real large-scale commercial landing of this product form. So our current strategy is to separate the two. If you look at GitHub, there is a lot of support from the open source community, including AI technology, which is good. I hope that we will add vision on this B, and more customers will search for the logic path. The second is the wheelchair robot. As for the combination of the two, I think it still depends on the scene. Because there are a lot of small technical details here, I won't talk about it here. Because we can talk about it for a long time. For example, your wall on this machine, its weight, its battery life, its space expansion problem under different scenarios, are not as simple as a very good solution. It should be said that we are currently, this robot should be next year, Thank you.

Thank you, operator. Please move to the next question.

Thank you. Our next question today comes from Alicia Shu with J.P. Morgan. Please go ahead.

Okay, thank you for introducing my question. My main question is that we see that the company's voice machines have already been integrated with Google's large model. In the future, will you plan to cooperate with more large model ecosystems? How do we see the opportunity for the company to promote global market expansion?

Thank you. Okay, thank you. We are working with Today, there are only a few big models that can be selected overseas, such as Google, OpenAI, and others. I think that Google is now at the top of the world in terms of voice-to-speech. This is an important reason why we are working with them. Of course, Google is also very welcome. We also participated in some of its conferences and so on. I think this is due to the ability of the large model of this kind of fast eyes, the ability to make this voice interaction is also not a dream. I have already said that in the past, we, for example, in the previous year, last year, the overseas machines, we did not shoot the voice function. Because here you have to do it well, really do it to achieve the user experience of this interaction ability, in fact, there are a lot of things to do. whether it's multi-species, or some technical points. But now, with this kind of technology like Google, We will continue to be very open-minded in the future Thank you. Operator, please note to the next question.

Of course, our next question comes from Zeping Zhao with ICBC International.

Please go ahead. Thank you.

Okay, thank you for this question. I think all people's dreams of making AI tools, especially software tools, are to make money. But to be honest, objectively speaking, it's not that easy to make money. Because there are only a few companies in the world that can produce money. But the company has a lot. So we think, for the current situation of our company, what is the most realistic method? The method we are taking now is that we first put ourselves We have to make AI products that already exist. In fact, two parts. One part is to use AI programming tools to improve our production efficiency. But it makes us really try some AI products. When the cost and cost are greatly reduced, the delivery cycle is greatly shortened. Of course, on the other hand, we are more realistic. We have to make the original product AI. Including our product like Qingshan Dupa. It has been 20 years. More than 20 years of history. This solves the computer problem for users, right? In the past, there were some buttons. Now we have turned it into a interaction. If you have a problem with your computer, you can directly talk to it. For example, if my mouse can't move, what should I do? Or if my computer is not sleeping, what should I do? It will not give you a text prompt directly, but directly solve the problem for you. It will check your computer for you, and even write a code to solve it for you. We have already started this online. The user experience after using it is quite good. So this is how we turn the original product into AI. In this process, on the one hand, it makes our original product's flow and user reputation improve. On the other hand, it allows our team to have a very good understanding of what the so-called agent is, what kind of agent the user is, and what kind of agent it is. This way, it will be easier to report. Because reporting is still your team's research ability. to go to the age of AI, right? Provide a turning point. I just talked about Duma, right? We also have PDF software, like desktop address. These are all involved in a lot of AI agent elements. So, to repeat what I just said, I think AI tool products, we first put the already existing users, the already existing products, these products, we may also have commercial users now, to AI. Through this AI itself to make the original products This is a good experience, this is a good effect to better customers. On the other hand, through such training, let the team have more of this AI thinking, then I hope to be able to try to make a breakthrough in the new product direction. Thank you. Officer, please move to the next question.

Absolutely. Our next question today comes from Joanna Ma with CNBI.

Please go ahead. How does the company look at the income and profit of the four-level Internet? Because we also understand that the company has always defined the Internet as a stable cash flow business. Can you clarify the trend of the four-level? Thank you.

Thank you for your question. Regarding our four-level Internet business, we expect that in the fourth quarter, from the level of income and profit, The absolute value of the Internet business will basically remain at the same level as the third quarter. Of course, this also means that compared to the same period last year, there will be a certain degree of decline in the Internet sales in the fourth quarter. The main reason is that due to the product in the advertisement, it continues to be under the pressure of the macroeconomic environment and does not meet the expectations. However, the trend of structural optimization within the Internet of Things industry is also very clear. Compared to the rapid growth of advertising revenue, the revenue of our users is expected to continue to maintain a strong growth. QSOON is expected to have a growth trend of more than 10%. The momentum of this growth is also reflected in the fundamental change in the income structure. In the past third quarter, the user's household income has accounted for about 70% of our total net net income. Because the stability and profitability of our net net business provides a core support. . . . . . Thank you. Okay, please move to the next question. Yes, ma'am.

Our next question comes from Jing Wong with CICC. Please go ahead.

Thank you.

Okay, I've already talked about it. Our AI tools today, we have more than enough existing products to AI it. I just talked about something like This is a product like Jinshan Duba for so many years. We turned it into one that can, according to the situation of your computer and the problems you have, automatically solve them for you. It's like a real computer repairman. Of course, software problems. If the hardware is broken, it will only tell you that the hardware may be broken. Software problems can help you solve them. Now it looks like this feedback is good. Whether it is the usage rate or the satisfaction of the user, they are all very high. We can go to this level. In the past, we used artificial intelligence to help users solve this satisfaction. It's almost close to AI to solve it. It's still a bit short, but it's already close. In the past, artificial intelligence was used to save money. Then we have some other examples. For example, we have a product called BZ. In the past, users could only download these well-made BZs online. But now we can use AI to help users generate BZs. This is a very good effect. When these functions... In fact, it is still subject to some... For example, when you generate a coin, the token of the video is quite expensive. It still has to be paid a few yuan. But the feedback of users is very good. So this is what we are doing. In the future, which types of AI tools? We now think that we will be like this. Increase users or, for example, production. uh, . . . . . Thank you. Operator, please move to the next question.

Our next question comes from from Sealand Securities. Please go ahead.

Hello. Hello. Hello.

Hello.

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Hello. Hello. Hello. Hello. Hello. Hello. Hello. Hello.

Let's answer this question. Thank you for your question. I think if we can enter a long-term stable profit stage, we will definitely start to consider and plan how to return the shareholder to increase the confidence of the market. There is a possibility that if we achieve a sustainable profit, we will consider to take a profit to do the shareholder development plan. But in the present time, I would like to say that it is because we have just begun to work in this area, we have not yet done a systematic study of this system. I think that in order to stabilize the financial performance, after a period of observation and verification, It should be a way for shareholders to take responsibility. In addition, as we have said before, our core strategic goal is to become a company with high growth. We believe that the robot will be the core of the future long-term value of the industry. It is also the focus of investors' attention. Our current robot business is still in an investment period and has not been realized yet. And we do not rule out that in the future, we may encounter such an excellent investment or cooperation opportunity, or do some new product development investment in the AI-related industry. We need to have sufficient funds to support the future of innovation and growth. Thank you. Thank you. Operator, please move to the next question.

Our next question comes from Yongpeng Biao with Gotei Haitong.

Thank you, Mr. Guan, for giving me the opportunity to ask this question. I would like to ask about the company's capital operation. What kind of mid-term planning is there? Will Liebao consider listing in Hong Kong or dismantling the robot business financing or listing alone in Hong Kong? Thank you, Mr. Guan.

Thank you. I will answer the question about the self-sufficiency. Regarding the second listing of Hong Kong, we have been actively researching and paying attention to the possibility, but at this stage, we are indeed facing some challenges from the reality of the news. On the one hand, We have not yet reached the relevant requirements for the market value. On the other hand, we also have A-class and B-class voting money structures. According to the Hong Kong Energy Agency regulations, there are higher requirements for the market value and profits in Hong Kong for the second listing in Hong Kong. So to achieve this goal, the core is to achieve a greater breakthrough in the performance of our market value and business. Regarding whether there will be a separate business listing, China China China China We also noticed that the Hong Kong market is getting hotter and hotter this year, and it has become an important source of financing. At the same time, it may also bring more capital flow to the company. Thank you. Thank you. Officer, please move to the next question.

Absolutely. And our final question today comes from Chengru Li with Guoyang Securities. Please go ahead.

Hello, thank you for accepting my request. Congratulations to the company for implementing such a good business situation in Shandong. My question is about the company's acquisition of Zhongwei. Because we acquired it with a very reasonable value. It is also a significant improvement in the academic ability of our robot business and commercialization. Thank you for your question. I will answer it. Yes, it is true that the acquisition of China, as you said, uh uh Therefore, we should actively consider if the investment in the ecosystem and the current corporate business have a very good co-efficient, we will definitely consider doing a deeper integration to change our core competitiveness in the field of AI, whether it is robots or new AI tools. This is certainly a very important path, but in fact, at present, we do not have any specific landmarks to form a clear plan and timetable. We also use this relatively cautious principle. We hope to carefully measure each integrated landmark to ensure that this integrated action can create a real value for the business and create a greater value for shareholders.

Okay, operator, please check if we have any further questions. If not, then we'll end the call.

Yes, ma'am. We have no further questions in queue at this time, but if you'd like to join, please press star then 1. I'm showing no questions, ma'am. You may proceed with any closing remarks.

Okay, and then we can end the call. Thank you so much for joining our early conference call today. Thank you so much.

Thank you. And thanks, everyone, for connecting to today's call. You may now disconnect your lines and have a wonderful day.