A：Gross profit grew by 13% year over year, and the gross margin improved by 490 basis points.

A：Aurora Mobile's competitive advantages include a mature, highly concurrent, and domestically scalable underlying infrastructure; a global market layout completed at an early stage with solid brand recognition in overseas digital service sectors; an exclusive capability to unify full lifecycle user data; products equipped with self-automated AI technology and standardized automated workflow engines; compliance with global stringent data regulations; a lightweight architecture for easy access and low development barriers; and a lower potential customer reaching decent barriers and improved market replication efficiency.

A：Notable wins in this quarter include contracts with the largest ed company in the world for their China operation, SSX Press, and SSX Kgoro Security, among others. The revenue from security and Kg International value added services was RMB 6.7 million, which was a decrease of 53% quarter over quarter.

A：Revenue for the secure application, which includes financial risk management and market intelligence, decreased year over year and quarter over quarter. Specifically, financial risk management revenue decreased 18% year over year and 29% quarter over quarter. Market intelligence revenue in China increased by 3% quarter over quarter but decreased by 25% year over year due to weak market conditions and demand for Chinese PPP data.

A：The gross profit for Q1 was 13% year over year growth, amounting to 66.3 million, providing a great foundation for the rest of the year. The gross margin recorded a significant improvement of 490 basis points year over year. Net profit following the great momentum that the company started in 2025 with, is a great achievement as Q1 is typically a slow quarter for each year.

A：Q1 operating expenses (OPEX) were at 56.1 million, down 3% quarter over quarter, but up 9% year over year, and were within the forecast. R&D expenses increased by 17% year over year to 28.7 million due to higher staff costs and associated expenses. Technical service fees also contributed to the year over year increase. Selling and marketing expenses increased by 11% year over year to 25.9 million, mainly due to higher staff costs driven by overseas business suspension.

A：The company closely monitors the net dollar retention rate (NDR), total deferred revenue, and days sales outstanding (DSO). The NDR for the core developer subscription business was 103% for the 12-month period ended March 31, 2026. Total deferred revenue as of March 31, 2026, was over 173.9 million. DSO was 42 days, indicating a healthy level of collections and low risk of bad debt.

A：The company views its progress as positive, having achieved a great set of Q1 numbers, including a record-high revenue of 64.9 billion for the core developer business and a solid foundation for the remainder of 2026. The company is committed to expanding globally while maintaining discipline in spending. The strategic approach for financial year 2026 involves continuing on this path of growth and profitability, guided by the successful business model and management execution demonstrated thus far.

A：The company's competitive advantages include a robust, foundational domestic core business that provides stable cash flow and strong Siler resilience, scalable global expansion through the English Lab, in-depth native AI integration empowered by JPT bots, a contextual platform that builds replicable competitive modes and operational defensibility, and the alignment with outcome-based enterprise software trends that enhances long-term monetization and profit elasticity.

A：The company suggests that now is the right time to invest due to the current valuation being at the low side, and their long-term valuation logic which encompasses solid core business, scalable global expansion, AI integration, and platform synergies that reflect growth and AI upside potential.

A：The growth of the Engagement Lab is considered sustainable as the company still has a long way to go for further growth. The English Lab has been growing globally after a two-year launch, indicating that the market penetration is still in its early stages, especially in the Southeast Asia market where the company generates about 40% of its English web business.

A：Further opportunities for growth in the global user engagement market include expansion into various regions such as Southeast Asia, the Asia Pacific, the Middle East, and Europe. The company believes these markets can provide many years of growth due to their vast size and the fact that the company is only at the beginning of tapping into them.

A：The company's notification and user engagement services are beneficial across all industries. Examples include all apps needing to send notifications for updates or promotional purposes, online merchants informing delivery times, coffee apps like Starbucks alerting customers for pick-up, and airline companies informing passengers about flights. These services are essentially omnipresent in most if not all enterprises.

A：The decrease in revenue and gross profit growth rates compared to the fourth quarter was attributed to the revenue from the value-added service and vertical application sector being pressured by the industry's traditional slow season, a lack of traffic driving events like e-commerce shopping festivals due to Chinese New Year holidays, and slower market demand for booking applications influenced by macroeconomic headwinds and regulatory adjustments in the financial risk management business.