A：The development of the Pet AI agent has been marked as a major step forward, undergoing a comprehensive upgrade into a dedicated pet AI agent. The AI agent can precisely sense and monitor the condition and emotional state of pets and intelligently assist owners at every stage of care. This development creates opportunities in pet health, veterinarian care, pet safety, and data analytics.

A：The company expects to achieve even greater breakthroughs in branding and promotional efforts in the second half of the year. Additionally, they expect solid progress in the global growth line and business line, with a focus on operational management, cash flow improvement, and ongoing commercial progress of the PE AI and social platform. They also anticipate stronger growth in Q3 due to new revenue generation from recently launched 4G and 5G TPE products, as well as accelerated market deployments. Notable recognition was achieved during the quarter, validating the company's technology leadership and market positioning. Looking ahead, the company remains committed to improving operational efficiency and cash flow.

A：The company's products have shown strong performance in the market. Local communism-style AU growth increased by 801.6% year over year, and local continued to expand with a 132% year-over-year growth in DA. The EC solution is gaining momentum, leading the market in China and expanding its market share in the Asia and wider Asia Pacific region.

A：The company's growth in the second quarter was 13.3% for daily active users (DAUs) and 6.5% for monthly active users (MAUs) from the second quarter of 2025. The total revenue decreased by 5.9% to $18.2 million from $19.4 million in the same period in 2025.

A：For the second quarter of 2026, Japan contributed 36%, Mainland China 30.2%, the United States 13.5%, and other countries and regions 20.2% of the total revenue. In comparison, for the same period in 2025, the contributions were 33.6% from Japan, 33.2% from Mainland China, 17.3% from the United States, and 17.9% from other countries and regions.

A：The company expects revenue for the third quarter of 2026 to be between $19 million and $22 million, representing a decrease of 10.4% to an increase of 3.8% compared to the same period in 2025. For the full year of 2026, the company now expects total revenue to be in the range of $75 million to $85 million, revised from the previous range of $85 million to $95 million.

A：To address the increased memory chip costs, the company has increased storage prices to offset the rising costs, considered the customer's acceptance of higher prices, and revised its R&D to minimize the need for expensive memory where possible.

A：The revenue for the local meat life business decreased due to a slight decline in hardware volume delivery in the second quarter. However, the company has been delivering life products with stable growth in volume in the past series of quarters. These products are well-received in local scenarios such as local mobile broadband in Japan, leading to a dramatic increase in the number of average daily active users (DAUs). The decrease in revenue is attributed to the supply chain impact and price increase in the industry.