A：The main focus of the conference call is to discuss the company's fourth quarter and fiscal year 25 earnings, business operations, financials, and guidance.

A：Investors should be aware that the company's actual results may differ materially from those in the forward-looking statements due to known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond the company's control. For more information, refer to the Company's filings with the U.S. Securities and Exchange Commission.

A：In the fourth quarter and full year of 2025, the company's domestic business faced external headwinds, resulting in a decrease in revenue. The overseas business, however, delivered exceptional results through organic product incubation and targeted M&A, diversifying the portfolio and rapidly expanding global presence, contributing to accelerated revenue momentum.

A：The strategic priorities for 2026 were not explicitly detailed in the provided transcript excerpt. However, the company has indicated a focus on maintaining productivity in core areas and keeping the social ecosystem healthy, as well as new endeavors in 2025.

A：In 2025, product upgrades for Momo included AI greeting chatbots to provide personalized messages and maintain conversation flow, and optimization of real-time chat scenarios using historical data to target users with high conversion intent, which improved matching accuracy and interaction smoothness.

A：The marketing strategies for Momo in 2025 involved proactive cuts in marketing spend, optimizing various channels, and balancing spend between new acquisitions and dormant users reactivation. This approach helped to reduce average acquisition costs despite intensifying channel competition and sustaining growth in Alli.

A：The main reason behind the revenue decline for Momo in 2025 was the new tax regulations and stricter enforcement in October, which significantly dampened the motivation of high-grossing influencers and agencies.

A：Tantan aimed to build a dating experience and an efficient business model tailored for Asian users. As of Q4, Tantan had 600,000 paying users, a decrease from 700,000 in the previous quarter. Despite service decreases, Tantan's focus on brand building and experience optimization kept organic traffic stable. The platform is no longer reliant on channel acquisition, and retention improved slightly in Q4.

A：The company plans to reduce noise from metrics and improve the revenue impact by restructuring to target users with high payment potential, which is expected to drive increases in paid conversion rates and output.

A：The strategy involves cutting high-cost, negative ROI channels and focusing on channels with a positive return on investment. Acquisition costs have been significantly narrowed compared to the previous year, and the company expects to generate around 100 million RMB in annual operating profit.

A：Overseas revenue is projected to grow with a goal to deepen the overseas presence, enrich the brand portfolio, and build a long-term growth engine. The growth has been driven by audio and video social products in the mainland region, with year-over-year revenue growth of 70% in Q4 and a total of 2 billion RMB for the full year 2025.

A：The company has made great progress with AI-driven character creation and natural language models, seeing expansion opportunities. The separation of the domestic and overseas versions of the app has allowed for a tailored international experience, and the acquisition of a European dating product has been an important driver for Q4 year-over-year revenue growth.

A：The strategic priorities for 2026 include continuing the Momo for productivity, Tantan for the Asian living experience, and new businesses for growth. Additionally, the company plans to bring premium global brands into Asian markets to create synergies across the ecosystem.

A：The total revenue for the fourth quarter of 2025 was 2.53 billion renminbi, down 2% year over year and 3% quarter over quarter.

A：The non GAAP cost of revenue for the fourth quarter was 1.6 billion renminbi, compared to 1.72 billion renminbi in the same period last year. The non GAAP gross margin for the quarter was 37% compared to 34.7% in the year ago period.

A：Non-GAAP sales and marketing expenses for the fourth quarter were 339.9 million Renmin, an increase of 12% from the same period last year. This increase was attributed to marketing investment in overseas markets, partially offset by ongoing cost control measures in the PRC mainland businesses.

A：The projected revenue for the first quarter of 2026 is in the range from 2.3 billion renminbi to 2.4 billion renminbi, indicating a decrease of 8.8% to 11.1% year on year. This forecast assumes a year-over-year revenue decline of mid to high teens percentage-wise for the mainland China business, while overseas revenue is expected to grow by high 40 percentage-wise.

A：To address the challenges, the company shifted its focus to lower-tier users and introduced new features such as social games and direct chat functions, along with AI tools to enhance the social experience. This strategy led to the addition of 400,000 new paying users in the second half of the year on the mature platform Momo. For 2026, the company plans to continue focusing on user growth and profit stability, expecting revenue pressures to persist but is confident in maintaining profit stability.

A：The three key factors that will influence the revenue outlook for 2026 are the regulatory environment, macro conditions, and the tax situation in the second half of 2025, which materially impacted value-added services revenues. The company believes most of the negative impact from the tax situation has been absorbed by the end of Q1 26, and assuming no incremental regulatory tightening, Q1 should provide a clearer base to assess underlying trends.

A：Macro consumer sentiment remains soft, possibly a bit softer than a year ago, but the company has been adapting its monetization and product strategies to address the challenging conditions. They have been encouraged by the revenue mix becoming less top-heavy and more balanced contributions from mid-tier and long-tail users. To improve monetization efficiency under weak demand conditions, the company has additional initiatives planned for the coming quarters.

A：The domestic business is showing a positive trajectory with a moderation in the year-over-year decline expected in the second half of 2026. The company expects the year-over-year decline to narrow to below 10% by the second quarter. The full timing for the business to reach a bottom will depend significantly on macroeconomic recovery. The company's current focus is on strengthening controllable fundamentals to ensure a swift return to growth when the macroeconomic conditions stabilize.

A：In 2025, revenue growth was driven by the commercialization of new products in various regions and the contribution from mergers and acquisitions. The revenue contribution from audio and video products, new apps, and search is expected to increase. The growth trend of OS revenue in 2026 is anticipated to continue, although precise quantitative guidance is not provided. The political situation in the East has had an impact on operations, but the focus is on expanding into deeper markets with an expectation for the dating segment to become the largest revenue pillar. The new products, specifically mentioned as jahalin and Amar, are crucial for driving revenue in 2026.

A：The political situation in the East has had an impact on operations, although specific details on this impact are not provided within the transcript.

A：The margin impact of overseas business in 2026 is difficult to quantify precisely due to the varying growth dynamics across different markets and business sectors. However, it is mentioned that while the business is still in the investment phase, profitability is expected to be achieved with a focus on financial discipline. A range of 200 million RMB for the overseas operating loss is given for 2025, and the picture is mixed across different applications. The path to profitability for each region is based on a payback period and overall timing, with specific targets not clearly defined but a principle of financial discipline in investments and cost management is in place. It is mentioned that reaching profitability is focused on for new products like Holland and Ammar, which are scalable and expected to be profitable within the year.

A：The projected revenue growth for the overseas business in 2026 is estimated to reach around 3 billion RMB, making it a pre achievable target based on current run rate and expansion plans. This is considered the baseline scenario with potential upside or downside depending on execution and the pace of geographical rollout. As for profitability, while it is in the investment phase, the focus is on scalable growth with defined payback periods and disciplined capital allocation. Financial discipline is exercised by structuring internal requirements based on market and business model maturity, and the strategy is to reinvest profits into growth opportunities rather than focusing solely on profitability in each region.

A：The expected impact of adjustments in the ratio in the second half on the growth margin in Q4 was a sequential decline, but Q4 gross margin held relatively stable and even came in slightly above management previous guidance of 36% to 37%.

A：The group gross margin in 2026 is expected to be broadly flat compared to Q4 2025, based on the expectation of a decline in domestic revenue and an increase in overseas revenue.

A：Overall revenue for the company in 2026 is expected to be roughly flat. The directional guidance indicates that domestic revenue is projected to decline year-over-year, while overseas revenue is expected to increase from RMB 2 billion to 3 billion.

A：The working assumption for group level revenue in 2026 is that it would be either flat or slightly down compared to 2025, taking into account the expected decline in domestic business and the increase in overseas revenue.

A：Q4 gross margin came in better than expected, primarily due to two factors: better performance in the domestic business, which required less promotional incentives, and faster-than-anticipated gross margin improvement in the Mena region on the overseas side.

A：The prudent base case assumption for the 2025 revenue level is stability around the current level with potential variability on either side, considering the macro uncertainty domestically.

A：Operating expenses are expected to grow at a low single-digit rate for R&D and around high teens or 20% for marketing. The actual amount spent on marketing will depend on the return on investment in new markets, with the ability to adjust quickly based on performance.

A：The internal objective for operating margin in 2026 is to maintain it above the script, likely in the low teens range, balancing profitability with disciplined investment.