A：The company's strategic transformation includes shifting from centralized media to a creator and user-centric social media ecosystem and upgrading its aggregation and distribution mechanism to connect creators and audiences efficiently.

A：The company has successfully refreshed its core platform in April, leading to increased reader numbers and content uploads. The AI-driven ecosystem is gaining strength, with significant growth in content creation across various types, including micro-vlogs, micro animations, and transform dramas.

A：AI is revolutionizing live action production by streamlining workflows and significantly reducing production costs and timelines. It has also been instrumental in transforming traditional professional activities into more efficient capabilities.

A：AI is optimizing production efficiency and cost structure by standardizing workflows, such as in language AI for variety shows and AI-generated feature films that can reduce production costs and timelines by 70% to 90% compared to traditional methods.

A：'New Japan' is significant as it is the industry's first AI-generated internet feature film, marking a transition from technical testing to standard production lines. The company plans to launch a variety of AI-generated content in the second half of the year and is developing AI for short-form content and professional production efficiency.

A：The company's comprehensive ecosystem links demand with creators and enables commercial returns, encouraging more content supply. This fortifies the ecosystem and drives down unit costs, leading to increased users and revenue. It aims to improve content production efficiency, lower costs, and contribute to profits and cash flow.

A：The company's premium content is well-recognized, with the Magnolia of World being one of China's top TV operators and the company's creative teams winning 14 of 23 awards, including 10 of 11 in the drama category.

A：The company's content strategy resulted in an effecting early return on investment, with production costs reduced by over 50% per minute and a 30% to 50% shortening of the production to approval timeline. The release of 'P Korea Li' solidified the company's original offering and 'SL Support' enforced leadership in children's content with strong audience engagement.

A：The company's upcoming original content includes 'Warrior Being on One', 'Jing Jiayu', 'Road to Success', 'Color Painting', 'He to the Business', 'Over Gu Junior', 'Girlfriend Can', and 'Spring of the Flame'. Potential blockbusters for the remainder of the year include 'The Great Long March Hangzhang', 'Small Town', 'river of As', and 'Wang in Dongxiang Hui'. Also mentioned is 'One Nation Cha and the Furious' as a significant original film.

A：The company's advertising business has seen double digits year-over-year growth, with significant increases in revenue from beauty, earth care, and health care. AI is being used to improve performance, and operations are being upgraded to support small and size advertisers for strong year-over-year growth. Outside of mainland China, business revenue growth in Q2 was 40% year over year, with robust growth in the Spanish- and Arabic-speaking regions. Specifically, membership revenue in Brazil and Mexico increased over 215% and 150% year over year, respectively, and the company also demonstrated a strong presence on international platforms.

A：The company's global influence expanded significantly in Q2, with membership revenue from its dramas growing over 40% year over year. The international platform rankings for the hit drama 'Fate You, Jiang or Tian' were noteworthy, as it cost international platform rankings across all regions in its first week and remained in the top 10 of the three DS for 10 consecutive weeks. The company also experienced strong traction with its first original Indonesian drama 'The Other System', which became the number one local streaming firm in Indonesia in the first half of 2026.

A：The company's key strategic and operational priorities going forward include leveraging AI for cost reductions in content production while maintaining high-quality storytelling and aesthetic judgment. Central to these efforts are two main pillars: decentralization of the business model, transforming from media-like to decentralized ecosystems, and the application of AI to content creation to drive a five-wheel effect across the number of creators, volume of content, user base, and revenue. The company plans to continue focusing on the production and release of high-quality, AI-driven content across various categories, targeting both rapid and strategic adoption of AI.

A：AI is being strategically applied in content production to optimize costs without compromising creativity and judgment. It is used to reinforce the core mode of storytelling, aesthetic judgment, emotional expression, and visual language. AI is rapidly adopted in Michael Cine with a revenue sharing model, while animation and micro- animation are identified as AI-native content, with AIGCP serving as the primary supply. The company is seeing rapid AI adoption in content production, leading to more efficient pipelines and an extended content release schedule for the upcoming year.

A：In the digital industry, the company's core competitiveness is centered around its ability to bring together professional talent, generate compelling ideas, industrialize production, understand content review and compliance, deliver effective distribution, and drive diversified monetization. These competencies have been developed over a half decade and provide a strong foundation for the company's value proposition to content creators. The company aims to help creators be seen, generate income, and gain recognition by providing a substantial share of the video entertainment audience, leveraging expertise in long-form video production, and offering a robust ecosystem support system.

A：The company's overseas business grew rapidly in Q2, with membership revenue increasing 40% year over year and maintaining profitability on a managerial accounting basis. The company operates with a mature marketing and operating model that ensures solid year-over-year growth even in new markets like Brazil and Mexico. In these markets, the company focuses on creating revenue with disciplined investments, aiming for stable profitability in mature markets and accelerated revenue growth in potential markets. The company uses Chinese content as a foundation, amplified through sustained marketing, and expands local content supply while tailoring content to local audiences. It partners with local carriers, platforms, and payment channels to scale the membership base. AI is leveraged to improve translation, distribution, and production efficiency. The company expands into new markets after validating revenue quality and profit-generating capabilities.