Cheetah Mobile Inc.

Good day and welcome to the Cheetah Mobile first quarter 2026 earnings 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. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Chita Mogul, Investor Relations, Helen. Please go ahead.

Thank you, Alfredo. Welcome to Chita Mogul's first quarter 2026 earnings conference call. Lisa today, our company's chairman and CEO, Mr. Fu Sheng, and our company's director and CFO, Mr. Thomas Jennings. Following management's prepared remarks, we will conduct the Q&A section. Please note that the management's praise will be presented by an AI agent. Before we begin, I refer you to the phase helper statement in our early training, which also applies to our conference call today. as we will make forward with these things. At this time, I would not like to turn the conference over to our Chairman and CEO, Mr. Fusheng.

Please go ahead, Fusheng. 2026 remains an important transition year for Chiba Mobile. We are continuing to evolve from a traditional internet company into a company focused on AI-enabled applications for AI agents and robotics. More importantly, We believe we are gradually moving from capability building into early-stage commercial validation. Our focus is not only on developing the high capabilities, but on turning these capabilities into practical products for real business scenarios, helping customers deliver better ROI. Starting from this quarter, we are separating our advice and other into an independent reportable segment. In the first quarter, revenue from robotics and others business increased 176% year-over-year to 51 million RMB, approaching 20% of total revenue. And at the same time, adjusted operating loss from this segment narrowed by 57% year-over-year. Customer demand remains strong, and we expect robotics and others revenue to grow strongly in 2026. In Q2, our robotics and other revenue will continue growing on both year-over-year and quarter-over-quarter basis. Today, our robotics business mainly focuses on commercial scenarios with real customer demand and clear launch and value, including reception, guided tours, and intelligent service applications. Our smart personal mobility is another important step for us. This product extends our robotics and AI capabilities into personal mobility and healthcare-related scenarios. More importantly, it further validates that our robotic platform can expand beyond commercial service robots into broader consumer applications. We are encouraged to see recognition from leading industry partners. During the second quarter, we started initial product shipments to a top mobile designer and manufacturer of mobility products as well as the leading alien mobility scooter manufacturer in China. We are seeing encouraging early market feedback and initial commercial traction. Moving to our agents, we're seeing strong customer adoption. We worked closely with Google Cloud and AWS, helping enterprises serve international markets, access AI models, and use multi-cloud environments more efficiently in one Q2. ai infrastructure services as a part of global enterprise service revenue increased 68 percent year-over-year contributing 18 percent of total revenue daily energy token usage has increased more than 20 times since january of 2026 exceeding 400 billion in may we expect this revenue growth to continue we also kept building easy goal So early, but we believe it will help customers deploy AI apps and boost productivity. The two-plus growing businesses, namely robotics and others, as well as cloud and AI infrastructure, already accounted for 38% of our first quarter revenue, and we expect their revenue growth and revenue contributions to continue to grow. from our advertising agency business within the global enterprise services segment was affected by policy changes from certain overseas advertising platforms. We believe this revenue decline was primarily driven by external factors rather than changes in customer demand. This was the primary reason the first quarter. Our internet services business continues to provide important profit and cash flow support for the company. In the first quarter of 2026, our internet service business generated approximately 15 million RMB in adjusted operating profits.