A：The company's strategy and business momentum are described as progressing with strong momentum, particularly in the areas of social entertainment, advertising, and commerce. The company is in the process of building a globally diversified ecosystem, where these areas are mutually reinforcing and contributing to the company's growth.

A：The key financial results for the first quarter of 2026 include total revenues of $556 million, up 12.4% year over year; social entertainment revenue of $400 million, up 3.2% year over year; legal ads contributing $125 million, up 55.6% year over year; non GAAP operating profit and EBITDA of $38 million and $46 million respectively, up 22.5% and 13.2% year over year; and operating cash flow of $46 million as of March 31, 2026. Additionally, the company had net cash of $3.18 billion and has accelerated its buyback program with repurchased shares and paid dividends totaling $157 million for the period from May 2 through May 22, 2026. The board has approved a new shareholder return program of $1.5 billion, which includes share repurchase and dividend distribution.

A：The purpose of the updated shareholder return program is to demonstrate the company's strong confidence in its long-term potential and continued commitment to delivering sustainable value to shareholders. It signifies the company's intention to return value to shareholders through share repurchases and dividends over the next three years, indicating an acceleration of capital distribution following strong operational performance and a robust balance sheet.

A：The new three segment structure of the company is composed of social entertainment, legal ads, and shop line, each representing a core pillar of the business. The long-term strategic vision of the company is to build a global technology ecosystem driven by artificial intelligence (AI). This ecosystem aims to unlock compounding returns from data assets through the integration of social entertainment, programmatic advertising, and omni-channel e-commerce, creating a self-reinforcing growth flywheel.

A：In the first quarter of 2026, the social entertainment business returned to year-over-year growth with a 3.2% increase in revenue and a 2.4% year-over-year increase in live streaming revenue. Core live streaming paying users grew by 5.9% year over year. The number of global average mobile MAUs reached 276 million, with a 6.1% year-over-year increase and a 1.5% quarter-over-quarter (QOQ) growth. The company also saw a sequential improvement in conversion streams and an increase in the number of active streamers and average effective streaming hours per streamer. AI-generated interactive virtual gifts accounted for 34% of total virtual gift consumption, and the new product lineup experienced a revenue increase of over 500% year over year.

A：The speaker's company experienced a 78.8% over-year increase in the third-party business. This growth was attributed to multi vertical advertiser expansion and ongoing algorithm optimization. Additionally, strong year-over-year growth of 109% in FDK traffic and 7% quarter-over-quarter into Q1, coupled with a strategic presence across multiple verticals, such as lead generation, e-commerce, and IAA, drove an enrichment of the advertising mix and enhanced ecosystem density.

A：Advertisers grew 90% year over year and delivered positive sequential growth. Incremental spend from both new and existing advertisers fully offset the typical seasonal softness of Q1. This indicates that the company's revenue was positively impacted by a substantial increase in advertiser count and continued growth from existing advertisers.

A：The company's approach to steadily and prudently scaling its computing infrastructure and integrating data feedback from advertisers across channels has contributed to a rich behavioral data layer. This has enabled multi-dimensional, precise user profiling and real-time model iteration, leading to improved delivery efficiency and positive feedback across multiple verticals. As a result, the company expects its algorithmic to be a primary driver of revenue growth going forward.

A：The company's financial goal for the advertising business is to reach one billion in ad audience network revenue by 2028. As the advertising business scales, the company anticipates a steady structural improvement in profitability.

A：The speaker believes that shop lines have reached a critical mass in terms of importance to the company and is expected to become an increasingly meaningful contributor to future growth. As global commerce transitions to an omni-channel environment, merchants require autonomy and full data ownership, and the company's short lines provide this through deep integration, payments, logistics, and marketing modules.

A：Shop lines is expected to transition from a phase of intuition to a phase of scaled growth, with accelerating revenue and gross profit growth. The Q2 guidance implies a revenue growth rate above 25% year over year. Shop lines is on a clear and visible path to achieve break even by 2028.

A：The company has announced an updated shareholder return program, with a total authorization of $1.5 billion for share repurchases and distributions over the next three years. This update reflects a robust operational performance and a strong balance sheet, showing the company's confidence in its long-term prospects. The company also announced the commencement of a new phase of share buybacks worth up to $600 million, alongside an expectation to generate stronger structural synergy and competitive advantage in the coming years.

A：The new product offerings contributed significantly to the social entertainment revenue, with a year-over-year increase of over 500% and setting new monthly records, thus continuing to drive the overall growth of the social entertainment segment.

A：The social entertainment revenue in the first quarter grew by 3.2% year over year with a 2.4% increase in live streaming revenue, marking a return to同比正增长.The recovery in the social entertainment segment was driven by a series of adjustments, including changes to the主播激励机制, which positively affected the live streaming ecosystem. This was evident in the环比正增长 of有效开播主播数和人均有效开播时长, as well as the substantial increase in the number of music genre broadcasters.

A：The company expects the social entertainment revenue to continue its positive trend in the second quarter with a year-over-year growth加速 to low to mid single digits, which is an improvement from the first quarter. For the full year of 2026, the company is confident in achieving steady positive growth in both live streaming revenue and social entertainment revenue.

A：The key drivers behind the overall performance being ahead of expectations include the multi vertical strategy, the growth of web-based demand by 90% year over year in Q1, and IAD (Information and Audience Data) growth by 97% even during the slow season.

A：The continuous upgrade of algorithm capabilities is contributing to the company's performance by driving cross-channel data feedback from advertisers, using AI-powered labeling, richer user behavioral data, which significantly enhance user profiling and delivery efficiency on the platform. Additionally, the framework upgrade to the core predictive model with specialized optimizations has also played a role.

A：As data continues to accumulate at an accelerating pace and vertical-specific models mature, the algorithm flywheel is gaining momentum and is expected to increasingly serve as a primary engine for advertising revenue growth.

A：The company is actively advancing integrations with industry leading mediation platforms, with one partnership already in beta testing phase and expected to be fully integrated by 2026. This will enable advertisers to reach a broader pool of high quality traffic globally, further expanding shopping coverage and injecting new momentum into the company's growth engine.

A：Shop line has adopted a high粘性订阅飞机时加高爆发增值的 revenue model, which includes a稳健的订阅服务形成基础收入和通过高速增长的支付营销等增值服务实现深度渗透的GMV变现. This creates a monetization model deeply bound to the full lifecycle growth of merchants, serving as the primary driver for continuous growth in shop line's financial performance.

A：The new shop line segment, announced as an AI-led one-stop全渠道电商基础设施, is not just a建站 tool but an open, extensible retail operating system integrating payment, logistics, and marketing functions. This allows merchants to manage all operations from store setup to user lifecycle management on a single platform. Shop line's unique value proposition is offering a globally rare, OS level, closed-loop solution for merchants.

A：The company plans to fully leverage the significant growth and high volatility of the brand大客户 base to achieve profitability. With the reduction of loss due to improved revenue and gross profit, and the confidence in the substantial growth potential, the company expects to achieve a balanced profitability by 2028.

A：The reason for the significant increase in shareholder returns is that the company's三大业务线 are on a clear growth trajectory, which supports higher shareholder回馈. Moreover, the company maintains a strong net cash reserve, which enables the execution of the new three-year shareholder return plan. The company also believes that the current stock price significantly undervalues its long-term potential, prompting the increase in shareholder returns.The new three-year shareholder return plan involves a total of $1.5 billion, with $0.6 billion allocated for share buybacks and $0.9 billion for dividends. This plan is a substantial increase from the previous program, which had a total of $3.9 billion. The new plan includes an annual dividend of $0.3 billion, a 50% increase from the previous annual dividend of $0.2 billion, and an annual share repurchase authorization of $0.2 billion, which is nearly double the previous average quota of $0.1 billion.