This meeting discussed the financial and operational results of the company for the second quarter of 2025, emphasizing the potential risks and uncertainties for future development. Management reviewed the company's performance and conducted forward-looking planning for the future. Financial information mentioned in the meeting includes unaudited GAAP and non-GAAP data, and detailed the relationship between non-GAAP metrics and GAAP metrics.

The company has achieved cross-platform user coverage and content distribution through two years of strategic transformation, deepening strategic cooperation with Tencent and other game industry players. Game-related services, advertising, and other revenue have increased significantly, becoming a key growth engine. The company is deepening cooperation with game developers, expanding service scope, exploring overseas markets, strengthening e-sports content production, aiming to achieve broader market coverage and revenue growth in the future.

Updated the AI strategy, enhancing user experience and creating new consumption opportunities through AI, such as AI virtual presenters and gaming companion robots, proving the value of the platform. The plan is to strengthen industry partnerships, expand into international markets, and drive long-term sustainable development.

In the second quarter, net revenue reached 157 million RMB, a year-on-year increase. Among which, live streaming revenue remained stable, while gaming and related services advertising revenue significantly increased. The number of domestic paid users remained stable, and after optimizing content costs, the gross profit margin increased to 13.5%, achieving a break-even point. Non-GAAP net profit was 48 million RMB, marking six consecutive quarters of profit.

As of June 30, 2025, the company's total cash and cash equivalents, short-term and long-term deposits decreased to 377 million pesos, compared to 625 million pesos on March 30, 2025. During this period, the company has repurchased 2.8 million shares through a $100 million share buyback plan, costing $70.25 million, and has distributed approximately $340 million in special cash dividends in the second quarter. In the future, the company will continue to focus on performance, advance expansion plans, deepen industry integration, and create long-term shareholder value.

The dialogue detailed the latest developments in game services, including deepening cooperation with game companies, expanding sales of game accessories and cosmetics, and achieving a 90% year-on-year growth. At the same time, by cooperating with various platforms and products, the influence of high-quality content and services has been strengthened. Strategically entering the game publishing field, successfully promoting the game "Good Goddess of Victory" through a comprehensive online content release strategy, and planning to seek more cooperation opportunities in the gaming industry.

In July, the company partnered with Tencent to launch the first Delta Four Diamond Champions Summer season, inviting 24 top domestic teams to participate. This event showcased the company's technological leadership in 4K ultra-high definition, 120 frames per second streaming, multi-screen viewing, and voice chat, providing fans with a first-class interactive experience. During the finals, viewers watching exclusively through Hoya Life's CDC livestream also had the chance to win rare in-game items, including popular sets such as the You See compound valve, greatly enhancing the enjoyment and immersion of watching the games.

Shared overseas business through mobile application service platform, live broadcast and other products, built game community and local marketing capabilities, accumulated a large number of core users, especially in the FPS and mobile game fields, laying the foundation for seizing the opportunity to serve the rapidly growing overseas market.

The discussion revolves around the company's future AI development plan, emphasizing the use of its own game data sets, deep user insights, and content accumulation to build intelligent game analysis models and large language models to meet specific service needs. AI is integrating into various aspects of operations, from AI live broadcasts to AI services, including real-time interactive AI anchors and AI super robots collaborating with well-known esports teams. The latter can mimic players' appearance and voices, providing virtual training and emotional support. AI robots interact with users based on their emotions and preferences through visual recognition technology and strategic analysis, becoming users' training partners and coaches.

Live streaming business accounted for 74% of total revenue in this quarter, showing a stable trend, and is expected to continue steadily until 2025. Game-related services, advertising, and other revenues will become the main drivers of company growth, with total revenue expected to increase in the second half of the year and throughout the year. Optimizing content costs and revenue growth will drive gross profit margins to increase to 13.5%. The company has achieved profits for six consecutive quarters, and non-GAAP operating profit in 2025 is expected to significantly improve.

The company stated that due to the implementation of large-scale shareholder return measures and market interest rate fluctuations, cash balances have decreased, and it is expected that interest income in the second half of the year will be significantly lower than in the first half. Investors are reminded to consider this factor when forecasting the company's remaining annual net profit.