Cheetah Mobile Inc.

Good day and welcome to the Cheetah Mobile fourth 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 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. Fusheng, 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 are presented by AI agents. 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. Fu Zhong. Please go ahead, Fu Zhong.

Good evening, everyone. Thank you for joining us. In 2025, we finished stabilizing the business and built a stronger foundation for Cheetah Mobile. During the year, our total revenue grew 43% year over year, driven by continued growth in both our internet business and AI and other segments. In the fourth quarter, AI and others already accounted for half of total revenues, reflecting the increasing contribution of our new growth initiatives. More importantly, we achieved four-year non-GAAP operating profitability, our first time in six years. Our internet business remained resilient in 2025, generating approximately RMB $460,000 in adjusted operating profit every working day. This consistent operating cash flow forms the financial backbone of the company. and allows us to invest in robotics and the AI in a disciplined and sustainable way. Our second highlight is robotics, which is emerging as a key structural growth. For a full year, robotics revenue grew approximately 31%. In the full quarter alone, robotics revenue reached about 60 million RMB, up 94% year-over-year, and 43% quarter-over-quarter. Our voice robots in China achieved 100% year-over-year growth for three consecutive quarters, accounting for high single digits of the fourth quarter's total revenues. This progress is driven by our strategic focus on core strengths in voice robotics and the integration of AI Asian technology to enhance product experience. We are now seeing our voice robots become a must-have solution in resections, guided tours, retail environments, hospitals, and service halls as they deliver proven, measurable value. We recently introduced a new version of our voice robots, which comes with built-in skills like guiding, patrolling, and advertising. enabling end customers to start using them right away. Our robotic consciousness, mainly in serving overseas markets, is making up high single digits of the first quarter's total revenues. We focused on long-term demands from research institutions and the R&D teams that value openness and customization. This customer base is sticky and repeatable, supporting long-term demand, building on our proven indoor autonomous mobility technologies. we are introducing a smart wheelchair targeting developed regions such as Western Europe and North America. This product is positioned as a premium solution for users who value safety, independence, and confidence in daily mobility. We are seeing a clear shift in demand as users increasingly value safety, assistance, and intelligent features in mobility products. while scalable solutions in the market remain limited. By applying our experience in service own recent recovery, I personally used our smart wheelchair and felt a clear improvement in safety and convenience. Importantly, we can deliver these benefits without significantly increasing the cost compared to traditional high-end electric wheelchairs, making this a more practical and accessible product for users. We have entered into framework agreements with established mobility brands who will manage branding, distribution, and after-sales services. Initial shipments are expected to begin in the second quarter of 2026, representing an early-stage commercial validation of this product category. Across the industry, more companies are starting to test and deploy service robots. We believe the next one to two years will be a validation phase where ROI and reliability will matter most. You don't need a robot that looks like a human. You need a robot that works every day, delivers measurable value, and is easy to operate at scale. This is exactly where our current products are positioned. Our internet business remains strong, generating steady cash flow, which allows us to invest in AI in a disciplined and sustainable way. For more than a decade, We have built utility applications serving hundreds of millions of users. This product's DNA shapes how we approach AI. Rather than competing in model development, we focused on turning AI capabilities into practical tools that help users complete real tasks. During the Chinese New Year, I spent lots of efforts experimenting with an AI agent system built on the Open Cloud framework, starting The system evolved into a multi-agent team capable of running tasks continuously. In one scenario, the system generated personalized new year messages for more than 600 colleagues and managed the entire sending workflow automatically. What we see emerging is not simply a new AI tool, but a new way to organize digital work. AI agents can automate entire workflows from information gathering to processing and distribution. we introduced EasyClaw based on OpenClaw, an open source agent framework for both domestic and overseas markets. EasyClaw is our AI co-worker platform that helps users create and deploy task-oriented AI agents capable of executing real-world tasks autonomously. At this stage, we focus on execution capability rather than scale. We are already seeing a continued increase in user engagement, as reflected in the rapid growth of our total token usage. We are building EasyQL into an agentic operating system. that changes how users interact with software and machines. By integrating Easyglow into our PC products, we are improving user experience and driving higher conversion and ARPU. In robotics, Easyglow allows users to program and customize robots using natural language, lowering customization barriers. This helps us deploy faster, reduce costs, and scale more easily, making our products more competitive. Some investors may ask how we compete with our training foundation models. We believe the real advantage in the agent era lies not in the model itself, but in the systems built on tool usage, and cost management. By leveraging open ecosystems and leading APIs, our products can evolve as models continue to improve. Finally, our global DNA remains a core competitive advantage. We continue to expand both our AI tools and robotics businesses internationally with a disciplined approach. Looking ahead to 2026, we do not provide specific financial guidance We believe our robotics business will maintain strong growth momentum as commercial validation deepens and becomes a more important part of our revenue niche. At the same time, AI-enabled products will gradually enhance engagement and monetization efficiency. across our software ecosystem. We will increasingly apply iInternally to accelerate development, aiming to further improve operational efficiency. As we grow, we will continue improving transparency and disclosure, credibility over time. JITA is entering its next phase of development, combining digital co-workers through AI agents and physical co-workers through service robots, supported by real operating cash flow and disciplined financial management. We are building the foundation for our next stage of growth.

Thank you. Thank you, everyone, and thank you for joining us. As otherwise stated, all financial figures are presented in RMB. 2025 marked a year of meaningful operational recovery and improved financial discipline for Chitamogo. During the year, we continued improving operating discipline and cost structure across the company. We concentrated resources on commercially validated use cases in robotic products and practical AI applications, while leveraging open-source ecosystems and third-party models to improve warranty efficiency and optimize infrastructure costs. This approach allows us to accelerate iteration without significantly increasing fixed costs for the full year 2025. Total revenue grew approximately 48% year-over-year to $1,150 million. Although we reported a GAAP operating loss of $179 million for the year, this represented a substantial improvement compared with operating loss of $437 million in 2024. On a non-GAAP basis, operating profits reached $14 million compared with a non-GAAP operating loss of $232 million in a prior year. reflecting improved operating leverage. What ended the year was 215 million United States dollars cash and cash equivalent on hand. Turning to our segment performance, our internet business continues to serve as a stable cash generating platform for the company in 2025. Revenue from the internet business increased 19% year over year. to $615 million within Internet revenues, Internet value-added services revenue increased 21% year-over-year in 2025, contributing 65% of segment revenue supported by both paying user growth and ARPU expansion. In addition, we observed that many users subscribed for periods longer than 12 months the recurring nature of our utility applications and strengthening revenue visibility. In terms of profitability, the internet business generated approximately RMB 115 million in adjusted operating profit in 2025, maintaining healthy margins and strong operating cash flows. As Prashant mentioned earlier, the internet business generates roughly RMB 460,000 in adjusted operating profit per working day, which provides predictable cash flow to support strategic investments in new initiatives. Looking ahead, we expect the internet business to remain stable and profitable while continuing to provide financial flexibility for the company to invest in long-term growth opportunities. Turning to our eye and other segments, Revenue from this segment increased 85% year over year to $535 million in 2025. As a result, this segment accounted for 46.5% of total revenue. compared with 35.9% in 2024, reflecting a growing contribution from our emerging businesses. Within this segment, the robotics business continues to scale since the second half of 2025, making up 27% of this segment's revenue. and 13% of total revenue in 2025. Robotics revenue increased 31% in 2025, driven by deployments of voice robots in China and continued demand for robotic arms in overseas markets. Other businesses, namely overseas advertising agencies, service, and multiple management platforms within this segment also contributed significantly to revenue growth. benefiting from increasing overseas expansion by Chinese enterprises. At the same time, we continue to improve operating efficiency through more selective investment and disciplined cost control. For a full year, adjusted operating loss from the AI and other segments reduced by 42% year over year to $274 million. As we continue scaling the business, while maintaining disciplined investments, turning briefly to the first quarter performance. Total revenue reached 309 million RMB, representing a 30% year-over-year and a 7% quarter-over-quarter increase. While internet revenue declined slightly year-over-year in the fourth quarter, it increased quarter-over-quarter as we continued shifting toward a subscription-driven business model. In addition, user subscription revenue within the internet segment increased 32% year-over-year and 16% quarter-over-quarter as we chose to focus on subscription business model which supports the healthier product and user experience. Revenue from the AI and other segments reached 153 million RMB, accounting for near half of total revenue in the quarter. With this segment, robotic revenues increased by 94% year-over-year and 43% quarter-over-quarter to about 19% of the fourth quarter's total revenue. Other than that, our revenues from overseas advertising agency service and multi-cloud management platform also contributed to this segment year-over-year growth. On a non-PAAP basis, the company generated operating profits of $15 million in the fourth quarter compared to $42 million operating losses in the same period last year. We believe the improvements we achieved in 2025 reflected structural improvements in both our cost structure and revenue mix. Looking ahead, our priorities remain clear. Discipline growth, continued improvements in operating efficiency, balanced and disciplined capital allocation. With stronger financial discipline, clearer strategic focus, and increasing contribution from our emerging businesses, we believe the company is entering a more stable and predictable operating phase. Thank you. We are now ready to take your questions.

We will now begin the question and answer session. To ask a question, You may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster. The first question today comes from Thomas Chong with Jefferies. Please go ahead.

Good evening. Thank you for introducing my question.

The company has been moving in the direction of AI agents for a long time, and has also quit EC Corp. I think that in the process of actually landing, the company has already established those core work flows, data, or customer scenarios. It is also a question of whether the asset has already turned into our product. Meanwhile, In the context of the AI scene, the company believes that the core currency of the company is differentiated. What are the advantages and limitations? In the long term, how does the management team position itself in the AI agent industry?

Thank you. Okay. Thank you, Thomas.

Yes, Thomas. Let me answer that. I think, yes, in terms of AI Agents, we started to do the layout in 2025. Because we have always believed that AI is not only a big model company, but also a very good opportunity for application companies. So in 2025, we launched the元氣 AI Bot. Before the launch of Open Cloud, we launched a desktop version of this agent. Of course, after the launch of Open Cloud, there are some places where it is very impressive in terms of the design of the structure. We also quickly introduced our own EZCloud. So we are a company that launched Open Cloud-related products relatively early in China. I think now we should say that After OpenCloud was launched in China, although we launched the product at the end of last year, now we have our own user group. We can see that we have a strong need for users. What kind of work flows are you asking about? It's hard to explain in detail. Today, I think in the EZCloud scene, we have started to build some skills for the needs of our users. It has become a very important competition for us. To be honest, I don't think there are many barriers now. But at these points, we definitely have our own unique places. I think AI Agents is a very wide-ranging field. It is essentially a industry that restores the entire software and app. When big companies enter, they gain recognition from a wider audience. Then our strategy, our differential strategy is to combine the development capabilities of the tool agent that is formed today with 2C tools and pay attention to the experience details of the user, and there is something similar to this cloud, this multi-cloud collection. It includes the excellent cooperation between domestic and international cloud companies, as well as a large number of 2B users who have accumulated from our overseas advertising business. Therefore, our core differential advantage will be reflected in some of the real vertical industry solutions. We hope that the EZCloud provided to users is not just a This is a model that can be used on a large scale and can be operated on its own desktop. Instead, it is a solution that can be used directly for vertical user scenarios, especially for 2B user scenarios. We are constantly advancing this in terms of productization. Although it hasn't been past March yet, we have already done a lot of scenario exploration in this regard. In the long term, Yes, so we and the big companies, because this is something that we have repeatedly discussed within ourselves, we think that the advantage of us and the big companies is that we should be able to better target the needs of this scene to make products that are more close to users. Yes, from a long-term perspective, we are positioning EZCloud as an AI agent. I agree with OpenCloud's founder, Peter, that 80% of applications will disappear in the future. OpenCloud products will become an agent's very important asset, whether it's called OpenCloud or EZCloud. Recently, Astrophic has launched their Cloud Code mobile version. This type of product form should be a very core product form. So now our entire chain is the core of EZCloud. Whether it's in our 2C user group, 2B customer group, and also in some of our robots, we are all putting EZCloud on the ground. So this will be a very important strategic product for us. It's not... Thank you. Operator, can we move to the next question?

The next question comes from Nancy Lu with JP Morgan. Please go ahead.

Thank you for accepting my question. I have a question on the industry side. In the long run, in the execution chain of AI Agents, I want to know which layer is more likely to focus on the sustainable economic value of the management layer. Is it the public cloud and the algorithm platform, or the basic model manufacturers, or the application and workflow entrances that are closer to the user side? If we look at it from the perspective of our company, EasyCloud is currently located in the application layer. So in the actual operation, whether the company is able to gradually master the task call and user entry leadership, in order to improve our position in this value chain, or from the perspective of the industry, the platform with the flow entry attribute is easier to occupy the core position. Products such as EasyCloud are more likely to be involved in the super platform ecosystem in the form of functional modules. So the management layer is Thank you. Thank you for your question.

I think the eye path of this industry may be difficult for all people in this industry today. After all, the whole development speed of AI and the intense competition are all unprecedented. But I still have a few judgments. First of all, I would think that today's economic value will be concentrated on which level. I think in a considerable period of time, maybe in three to five years, whether it is Gong Youyun, or the algorithm platform, or the technology model manufacturer, or those who are closer to the user side will have a place to rest. In recent years, for example, in the last two or three years, it will definitely happen. Because today, you see, the competition for models is also very, very intense. And then the model also shows this diversification. The top model, like the top model in the United States, has a very high utilization. But now, due to the rising demand, like many domestic models, the utilization is also very fast. In fact, it is suitable for different tasks. So on different tasks, the competition of models will last for a long time. And in the process, which application can bring better experience and entrance to the user, right? Between him and the model, this will also form more cooperation. From the company's actual level, I think in this actual level, I have such a judgment, I think in the future application level, it must be difficult for any company to fully control this monopoly entry. In a fairly long time, it will be a more different industry, different user group, the positioning of this product is different. So we are now able to, as I said in the last question, our main users today will be more 2B. Even at the end of the day, for example, in the overseas customer group, in some real ones, they can put their actual, maybe not a technology leading enterprise, maybe a traditional enterprise far away from technology, will be our one. China China China China China It is more in the perspective of wider users, as I just said. Today, you can see that in the products of this type of agent, the distribution of users is very obvious. The difference between users who pay less and those who pay more, the demand attribute is very different. Although it is a product, the entire demand attribute of the user is reflected in it, and its use characteristics are very different. I think this product for the general public, in terms of user demand for 2B, in fact, it is not easy to satisfy it in a fairly long period of time, because it has to consider implementation as well as the whole line, right? There is also this kind of user training education, including token costs. So we still think that we should have such a product. If this account is good, we can occupy some users like us. . . . In general, we think that EZCloud is the best opportunity we have seen in the software industry for so many years. Of course, we will stick to our independent development path. But you said that in the form of functional modules, it is involved in the super platform ecosystem. This does not exclude that we have some capabilities, including some core scale capabilities and some platform areas. to work together. But I don't think this type of product has a kill-all effect. In fact, it's better for users to use it. It has a high cost of transfer. It's not used to transfer. This is similar to a product called Manus. It developed very quickly at that time. Many users and many products were imitating it, but it was still growing, right? Later, it was bought by Meta. Operator, please move to the next question.

Thank you.

The next question comes from Chen Gruli from Goyan Securities. Please go ahead.

Hello, can you hear me?

Yes, we can. Okay, congratulations. The company has achieved a very good performance in 2025. I mainly want to know about the users and use cases of our EZCloud product. Because Guan Yicheng has also mentioned that he is currently more concerned about the performance and use of this product. I would like to ask if you can share some user size or user-related indicators, such as user number, return, or use of tokens, and Guan Yicheng is currently more concerned about which indicators to judge the progress of our EZCloud development. Thank you.

Yes, this question is quite deep. I think that today, for products like agent, I particularly agree with one point, that is, today, to judge the real value of an agent product user is the amount of token usage. The amount of token usage data should be our core measurement indicator. We also see that since the Spring Festival, especially my After doing some promotion about my own use of Open Cloud, our token usage has definitely increased quite a lot. Yes. 我不知道能不能披露啊 我想的是說 就今天這個Token使用量 怎麼說呢 因為我們從去年開始 很早的做這個 就是才開始進入A金的這個領域嘛 所以我們當時對這個的調用量 也是完全沒有太多的一個預期和概念 所以我們當時覺得 可能一天能到百億的調用量 就是一個不錯的量了 當時甚至定了一些目標 都是圍繞這個來的 但是現在看起來已經 It has already exceeded a large extent. So this is one. The second is that I want to say that today's number of users itself is not a kind of full or already to a very high number of users. But its activity is significantly higher than the tools we used in the past. Although it looks like its concept is quite complicated, and then everyone says the whole problem, but you can see that whether it is its flow rate or the activity used in it, This user's activity is much higher than what we used to have, such as JinSanDuba, and other traditional products like PDF software. Yes. So today, the core criteria for our product is the amount of tokens and the amount of tokens used by the people. Of course, because of this product, although you may have heard of this name, we have also made The next question comes from Yun Peng Dao with Gotai Haitong.

Please go ahead.

Good evening. Thank you for the opportunity. About the robot business, we are currently growing very fast. Robot currency business is already experiencing profit. So we would like to ask the company, from the overall perspective, what is the profit path of the robot business in the next one to two years? Is it more inclined to reduce costs by scaling up and improve efficiency? Or is it possible to increase the price by increasing product capacity and to expand the operating scene to achieve profit? Thank you.

Yes, this question. This year, in 2025, our overall investment has actually increased a little bit. Because we have already seen some growth of some robots. There have been some real scenarios. Yes, I have actually talked about it in several press conferences. Our robot business now... The overall logic is that we hope to find a truly commercialized landscape, and then, based on this landscape, to do some products that are better than ROI. Therefore, we have not followed up on some of the hot topics in today's mobile industry. In 2026, we felt that The first one is that today we are focusing on voice-to-speech robots in terms of commercial scenarios. On the one hand, it is the growth of the voice-to-speech interaction capability of large models. On the other hand, we think that including this lobster, or Open Cloud, this type of product, can be used to make the speech-to-speech machine, speech-to-speech, and reception be able to greatly improve the level of intelligentization. It can also greatly reduce the cost of landing the real experimental intelligentization program when these ordinary customers are using them. In the past, when we really landed this machine, the most difficult point, the most difficult point was to really make some This is far away from technology, such as restaurant customers or what? The mall and museum customers can really connect with your product. This is in the past. In fact, the cost of using traditional software development is very expensive. And then this one is very difficult for them to use. This has always been a very confusing thing for us. Now, due to the fact that there are products like Open Cloud, it is possible to use the interaction of natural language to command the machine to work. We believe that this will continue to grow. The second is the machine currency. We believe that the green co-operative machine currency, including the VLA model, is constantly moving forward. Our machine currency itself is still growing in the overseas market. We think it will continue to maintain its strength. The third one is that we have launched a smart wheelchair product this year. It should be officially released next quarter. This has also been polished for more than a year. Because we think that this type of product is actually using our technological accumulation on the robot to make wheelchair products truly able to close the barrier, to be able to travel conveniently, to be able to increase the level of intelligentization by one level. We have also conducted a long-term market survey on this type of product, and then this technical plan. It seems that the feedback we have received in the market is still good. But this type of product, because the first one is that the whole cycle is relatively long. Our research and production time is more than a year. The second one, it also has a lot of legal rules, especially this When it comes to exports, it involves the certification of some health medical products. It all takes some time. So in this area, we will make some investments in 2026. Including this one, we will have new products in the second half of the year. In the short term, the overall profit of the machine will appear to have a certain investment. It can be called a delay. But we are still satisfied with the confidence of this product. Because I have started to receive orders, and the feedback from the users is good. And recently, I didn't get hurt by skiing. I am a deep user of my wheelchair. I have taken it with me not only to use it at home, but also to use it in the company. I also took it to take the plane and use it in the city streets of Hong Kong for a deep experience. So overall, the overall investment period of our 26-year-old robot should still be in the investment period. But I think our income will continue to grow. And then on this business path, we hope to be able to use another year's time to build this technology and make the income scale. Including us at some point in the direction of finding the direction, we can strengthen the uniqueness of our technology. Then it can be achieved in one to two years. Thank you, operator.

Please move to the next question.

The next question comes from Guangpeng Zhang with Gotai Securities. Please go ahead.

Okay. Okay, okay. The company has clearly achieved an improvement in operating efficiency in 2025. The company also mentioned increasing the development and operation efficiency in the internal wide application AI. I would like to ask the management team if they can share whether the AI in the internal application has brought an improvement in efficiency that can be quantified. For example, in the personnel, development cycle, or cost structure, etc. so that we can share some specific improvements.

Thank you. Yes, because this is related to some of our internal research, I may not disclose some specific data. There are a few points. The first point is that our company has a history of more than ten years. This is the first time since last year that the average age of all employees has decreased. Indeed, since there is AI, many jobs that require years of work experience have begun to have young people who can achieve the same or even more efficient output. Then in terms of the cost structure, we should have talked about this before. We have opened up like Xi'an, Including the R&D center in Chengdu at the end of last year, the cost of the entire R&D has dropped a lot. Our R&D efficiency has also improved a lot. Including what you see today, whether it is the launch of the EZCloud product, including the launch of the robot field, the wheelchair project, This is all based on the fact that we have not actually done it on the basis of increasing more research and investment. That is to say, on the one hand, the past products can still continue to grow. On the other hand, in this new field, we can still have the power to invest. I think this is all thanks to the internal promotion brought by AI. And then this year, some specific direction of improvement is that we are doing EZCloud on the one hand, and on the other hand, we must strengthen our internal Thank you. Thank you. Thank you. Thank you.

Thank you. Operator, please move to the next question.

The next question comes from Gigi Zhu with GF Securities. Please go ahead.

Thank you for accepting my question. I would like to talk about the commercialization of EZCloud. As I mentioned, we are still in the early stages. Thank you.

This wave is a very obvious feature of the agent product, which is that the user is the one who brings the income. That is to say, we are now using Cloud. Maybe you don't use our products. We are based on this call volume to charge. We have cooperated with various model manufacturers, whether it is domestic models, including overseas ones like Google and Amazon. Because we have this cloud-based integrated platform, So we have both domestic and international versions. And the current versions are all based on what we call the basic consumption. The basic consumption is actually the exchange rate for each token. So today is also a commercialization. It's a natural model. So EZCloud itself token token token token token token Because we think that when users actually use it, their token consumption is very large. In fact, this kind of supplementary mode is not very suitable for this kind of product. It's still a product that can really find users to serve them well and provide them with better product capabilities. In this way, when they go inside to achieve their efficiency improvement, they are very willing to pay for it. So I think EasyCloud's commercialization is a natural mode. No need to think too much.

Thank you. Thank you. I'll go ahead and please move to the next question.

The next question comes from Wei Fang with Mizuho Securities. Please go ahead.

Thank you, Guan Licheng, for answering my question. I would like to ask Guan Licheng, I see that the company is doing very well in its overseas business. Your robot and EasyCloud are expanding to the overseas market. I would like to ask, Have these businesses formed a more realistic effect? If we look at it further, is the company more inclined to use a single product to break through, or does it want to build up a multi-product ecosystem? If this is the direction of the latter, how does the management of the company see this effect? in the long term, how to transform it into a company's competitiveness or growth drive.

Thank you. That's what I think.

Maybe everyone thinks that ecology is a better term, but I think if there is no single product breakthrough, it is not about the ecosystem. In the process of getting out of the sea today, we actually considered that we can do a good job of using Cloud. It is a So, So today, no matter which industry we are in, whether it's 2C's traditional tool software, or our previous desktop software team, they made the so-called 2C EZCloud, or our 2B EZCloud. or the advertising team in China, or the cloud team, we are now integrating all of our services into Easy Cloud. Because the performance of the user is different, different needs are different scales, or different needs are different agents. This is our idea today. So as long as we can This product is really aimed at different users. It's called customization. It's called individualization. Then it will form a ecosystem in the future. So this is one. Yes, if we are at this stage. In fact, on software products, it is a single point. But the single point will build up different agents and skills. And these different agents and skills are aimed at. Whether it's an overseas advertising client or an overseas silver client. can get good service in such a product system. This is indeed a difficult thing to do in the past, because the service system of Yun and the service system of Chuhai Advertising was different from the product system of users in the C-section, whether they are light laborers or not. In the past, it was also a very confusing point for us. It was too scattered. But now it can be unified into a product system, and then just install different scale and agent. So this is our whole big idea. Yes, you are right. I think we are in the process of coming out of the sea Thank you.

Thank you. I'll put your questions to the mic.

The next question comes from Lydia Lin with Morgan Stanley. Please go ahead.

Hello. Thank you for accepting my question. I have three questions. In fact, the company's income in 2025 is called 24 years to achieve an accelerated growth. I would like to ask if this trend has a feasibility in 26 years and what are the driving factors behind this core? The second question is, in terms of business, the robot business is a focus of attention in the current market. Can you ask the management to take a closer look at what the main source of the robot's income growth in 2026 will be? Will it be like the volume of cloud robots or these B products, or will there be some new application scenarios or new product expansion? The last question is also about voice robots, because voice robots have already landed in China relatively quickly. Will the overseas market in the future be able to have this kind of copy or scale-up of an entry? How is the current progress of the company's expansion overseas?

Thank you, Manager Ceng. I'm CFO Thomas from the company.

I'll answer first and see if Vice Chairman has anything to add. Let's start with the first question. the growth of revenue in the last 25 years. I think this reflects the overall strategic focus of our company in the past year, as well as the optimization of the structure of our business. In particular, as we mentioned in our presentation, on the one hand, we are continuing to promote the transition of subscription on the Internet business, which has improved the stability and visibility of revenue. On the other hand, in the AI and other sections, which include robot business, as well as the business of overseas coin service, Almost all of our business lines have achieved rapid growth in the past 25 years. These different business lines have pushed for an overall increase in revenue. We believe that from the current business structure, our current business combination is relatively healthy, and the contribution of new business is constantly improving. This is also a foundation for our long-term development. Regarding the main source of revenue growth for machines in 2026, I think Mr. Fu talked about it in the previous question, including the voice robot and the wheelchair. In conclusion, let's look at the robot's business lines separately. First of all, the robot coin business has been running steadily for 25 years. At the same time, the demand from industrialized scenarios, research institutions, and research teams is continuous, and the recovery rate is relatively high. In the year of 2026, the robot business will still maintain its steady contribution, and there will be a small increase. Secondly, we have already entered a scale-up deployment stage in domestic voice-over robots, in various scenarios, including reception, lecture, nursing, hospital, in various scenarios. At the same time, we will also launch a new product called Xiaomi Live in the near future. It is also a new type of voice service robot that combines the technology of some agents and can be opened and used. We expect that the voice service robot market in China will continue to grow. Thirdly, as Mr. Fu just mentioned, including what we talked about in the article, our newly launched smart wheel products will also achieve commercialization this year. In fact, in the past, we did not have any income from this product. Now, we have signed a framework cooperation agreement with a mature mobile travel brand overseas. It is expected that in the second quarter, we will become a new source of income for robot business. The existing framework cooperation agreement already has a certain amount of order basis, and the first batch of delivery will mainly be delivered overseas. As for voice robots in the overseas market, I understand that last year, we focused on domestic voice robot scenarios. Basically, after the domestic scenarios have been achieved, we are now making some overseas, especially high-end retail scenarios, attempts. We hope to expand our customers overseas this year, and bring about new business growth. Yes, this is my answer. Let's see if Vice President has anything to add.

Let me add something. Wait a minute. This is what I think. Let me talk about this in a more systematic way. Why do we need to do this? This is also something that we have been doing for so many years. We have been doing a serious survey of the market. We can say that we are a strategic product in this area. Why? Because of the growth of voice machines, I think the growth was good last year, and it will grow this year as well. But what is the difficulty of this product? The difficulty is that you have to change the current use process of the user. In fact, it looks like the applications of Chinese machines today, whether it is enthusiasm or acceptance, are at the forefront of the world. This is a phenomenon. I have always felt that it is difficult for robots to be called a double-edged sword. At one end, you have to design a good new product form. Everyone is called a robot. What is a robot in the mind? Everyone is not clear about it. Everyone's mind is different. So, on the one hand, you have to define the product form. On the other hand, users have to put a robot into the workflow of the past. So, we can see that this is a product that grows fast. This robot, right? Or this mechanical arm, this traditional replacement labor force. This has a certain development time. Yes, the other one is this. This is like some particularly simple mechanical ones, such as 3D robots. So this is a difficult point when we were making robots in the past, which is to let the market accept a new product and it has to change its entire working model. So this is what we were thinking about later on, what kind of product can both use the technology of robots and make users accept it faster. We chose the smart wheelchair market because We think that this smart wheelchair is actually a machine for transporting people, right? You can understand that it used to deliver meals and transport dishes. Isn't this for transporting people? So its entire technical circuit, the entire technical circuit of the wheelchair, whether it's the chassis, the motor, the three-chain system, and also this part of the intelligent part we want to do, which is this. It's very, very close to our entire technical path and it's very affordable. The second one is that its market size is quite large. This is much larger than the current market size. Smart wheelchairs in the world or electric wheelchairs should have a market size of more than $2 billion. And it's growing every year. Especially the market of smart wheelchairs is growing the fastest. According to the third party report, it's growing more than 10% globally. This is actually a market that is growing very fast globally. And this market, due to the long history of the industry, is lagging behind in terms of intelligence. So we think that this product is very capable of taking our technical path, our entire technical understanding of the machine, including the experience of our past users can be combined together. And it should be able to have a more stable and decisive market scale. Yes, I will not talk about the extension later. In fact, our understanding is to turn the machine of goods into a wheelchair machine that can carry people. This is why we are making a smart wheelchair market. From now on, after this year, we will polish it more, right? Maybe everyone knows that there are a lot of start-up companies now, and they are using VC to make similar products. China China China China It's a high-price solution to bring the entire wheelchair to a very high level. This is inseparable from the accumulation over the past few years. So I am quite confident in the growth of this track product. Of course, because of this product, I just talked about its production cycle, its entire certification, and so on. Our actual delivery starts at the end of the year. Now it's already in the supply business, in our channel business, There are samples, there are exhibitions, and BP is about to go down. But the real sales started in June. That is, we only have half a year of sales time, and it is the first one. So I think in the long term, by next year, I think the growth of this product will be in a better state. Okay, these are some of my additions about this.

Because whether it is, yes, just these additions, I think I just made it clear. Okay, thank you.

Thank you. Operator, please move to the next question.

The next question comes from Vicky Wei with Citi. Please go ahead.

Good evening, Citi. Thank you for accepting my question. We can see that since the third quarter, the company has started to make profit in consecutive quarters, and then the whole year has also achieved profit. I would like to ask the management to look at whether we have confidence in the trend of continuing to profit in the quarter and the whole year in 2026. 我有个小问题就是考虑到公司在Easy Cloud等AI Agent方面仍在加大投入 行业也处于一个早期阶段 竞争比较激烈 管理层如何在持续投入与盈利能力之间做平衡 能不能给我们分享一个具体的框架 比如说在当前阶段 我们公司是更优先考虑利润率 收入增长还是市场份额 谢谢

Thank you for your question, Vicky.

Thomas, I will answer it. First of all, in the year of 2026, one of our important internal management goals will still be to make the efficiency of business discipline and investment output as the core management goal. Our overall strategy is to promote business development while maintaining a reasonable business rhythm. We will not pursue a certain opportunity to make a large-scale pre-investment without discipline. But in the expected year of 2026, I need to explain that because of our Part of it is the profitability of the 2B business. In fact, to a certain extent, it depends on the policy of cooperation between us and various cloud companies, advertising platforms, and so on. The adjustment and change of platform policy is also one of the external changes that we have to consider. It is also an element that we will focus on in the planning of the year of 2026. From the point of view of internal management, regarding Ezekiel, in fact, in history, different products have already formed a set of relatively mature new business optimization and investment methods. As I said, we will not do a large-scale investment first and then look at the results, but at the same time continue to verify our business logic and investment and output ratio. As for ETH Cloud, we are also strictly following this framework to promote it. As I said, we will not adopt In terms of the overall structure of the business, we started out with a product called EZCloud. It is a product that is paid by the user. It is a product that is paid by the user. will rely on a dual-engine model to continue to be a stable profit and cash flow source for the Internet business through the economic operation of the Internet business and the continuous improvement of AI. In the direction of AI and other new businesses, As we said before, we will focus on the potential of the commercial currency or through the initial verification direction, through the optimization of the technical path, including AI to improve our research efficiency, and continue to improve our overall investment and production efficiency. From the perspective of our funding configuration, our company will tend to use the profits and cash flow generated by existing businesses to support the development of new businesses. Thank you. Operator, please move to the last question.

The next question comes from Ziping Xiao with ICBC. Please go ahead.

Thank you for giving me this opportunity. I have a question about the value of Internet business. We see that the income and profits of the company's entire Internet business in the fourth quarter are significantly better than expected. The operating margin also increased by about 30% from last year. We see that the profitability has been significantly improved. Based on the data that has already been distributed, we would like to know how the management team will further promote the value of Internet business in the company as a whole. Thank you.

Thank you for your question. Let me answer your question. Indeed, from the performance of our fourth quarter, the profitability of Internet business has clearly improved. But more importantly, we actually saw We continue to promote the user payment model. Under such a big background, the visibility of Internet business income, the continuity of business, and the cost structure are continuously being optimized. This is also to promote the entire Internet business. Its operating profit rate has been increased for a core reason. In terms of business positioning, as I just mentioned, Internet business continues to be a stable source of profit and cash flow for the company to provide a solid foundation for overall business to support the development of new business. From a stubborn point of view, We always hope to guide everyone to analyze the company's value structure in a distributed way. In our understanding, the business that is more sophisticated and mature in terms of Internet business, such as income stability and profitability, should usually be based on PEE. In the past 25 years, our own Internet business has achieved a profit of about 1.1 billion RMB, which is 83% of the total growth. We believe that this part of the value still has room for this part to be recognized by the market. As for how to further promote the value release of Internet business and other segments, we have always maintained an open attitude, but we still need to emphasize that our core judgment . . . . . . Thank you. Thomas, would you like to add something? Sure.

Yes, I think everyone is very concerned. Several questions are asking whether our business capacity can continue. I think because of the rapid movement, after so many years of development, there have been some problems in the middle of such development. The main thing now is that there are Internet businesses, there are 2B businesses, and then there are uh uh and we have to grow with users. Bao Gang also answered the question of commercialization, that is, we will not use subsidies to push our software business forward, but we really need to build software business into our basic profit and loss. This is the first one. The second one is that some policy factors may affect a part of other income. In fact, this is not what we are particularly concerned about. What we are more concerned about is In the robot industry, although we have been doing this for many years, including this time we launched a new product, we still hope to be able to truly grasp such an opportunity. Because today, the growth of AI is seeing that it is becoming more and more powerful for robots. We definitely don't want to make a big mistake. So when we developed the strategy for the whole of 2026, to be honest, we didn't necessarily turn this so-called business into our core test point, but on the one hand, The software business is definitely our very important basic platform. And then in the robot business, we will also consider certain opportunities according to the form of the market. If the opportunity is good, some of our investments will not... I just answered the question about the robot profit and loss. I think the robot business is indeed a little bit more limited in scale. And then this continuous growth is limited, especially Especially at this point where AI is so active, I think business like Jixian is almost at such a critical point. So this is our overall idea. After all, R&D today and the cash on the account are more than $200 million. Yes, I remember. Yes, more than $200 million. So we will consider long-term business development more.

Yes, thank you.

Operator, please chat if we have any further questions.

We have no further questions at this time, which concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.

Thank you so much for joining our conference call today. If you have any further questions, please do not hesitate to let us know. Thank you so much.