A：The "bush strategy" is to meet the segmented needs of different markets and populations through a variety of products with different positioning, and to replicate products that have been verified in advantageous markets to different countries. This strategy has accelerated product power, operational power, AI and organizational power, as well as product replication and national replication.

A：In the first half of the year, the two flagship social products sugar and top both maintained their expansion posture, with revenue increasing significantly year-on-year, reaching more than 60% and about 30% respectively. they have performed well all over the world, especially sugar has gained rapid growth by virtue of its cross-regional and cross-language adaptability and replicability, while top has gradually improved the community stickiness and commercialization efficiency by taking root in the high-value market and seizing the differentiated needs of users for games and entertainment. Innovation business maintained a good momentum of development in the first half of the year, with overall revenue up 41% year-on-year. Among them, boutique game short plays and social e-commerce have been steadily promoted, flagship games have been operated for a long time, new product research and development capabilities have been improved, and the commercialization of three new products is progressing smoothly. Hull Health has consolidated professional barriers in the fields of HIV prevention and sexual health services, and has made remarkable achievements in e-commerce and Internet hospitals. Through AI-enabled production, pilot, a short drama platform, has greatly increased its production capacity and increased its single drama online efficiency by more than 60%, and there are breakthroughs in subject matter and artistic techniques.

A：In the first half of the year, AI technology has penetrated into all aspects of the business, and the number of token calls has increased by more than 100 times year on year. AI are used to improve product experience (such as recommendation matching accuracy, auxiliary dialogue), improve safety risk control efficiency, and help users use products easily and confidently.

A：The CEO of Chizicheng Technology is Mr. Li Ping, the Chief Operating Officer is Mr. Li Yongjie, and the Senior Vice President is Mr. Song Pengliang. Li Ping will share the company's strategic vision and future development direction, while Song Pengliang will explain the company's performance and business development in the first half of the year.

A：Chizicheng Technology's 2026 interim results conference mainly introduced the company's global layout progress, the breakthrough of core products in multiple new markets, and the deep integration of AI technologies in the business. In addition, it also shared the company's revenue growth in the first half of the year (up 37% year-on-year to $0.607 billion), the successful implementation of the product strategy (bush strategy), and the development status and future growth momentum of various businesses (social and innovative businesses). In the first half of the year, business follow-up mainly focused on three aspects: product follow-up, market layout and keeping up with the pace of AI technology market development.

A：AI Intelligent Data Platform Whisper compresses complex analysis tasks from the day level to the minute level through AI technology, significantly improving operational efficiency. The ability of AI intelligent design platform kiwi is also constantly improving. It greatly improves the production efficiency of virtual gifts and UI interfaces, making the creative design process more efficient and convenient. The intelligent creative platform Rubik's Cube and the intelligent delivery platform Miaomiao have formed a complete closed loop. From explosive material identification to creative generation, price adjustment and delivery management, the application of AI technology has helped us to reduce the CPI of customers in some markets by more than 25%, while improving ROI (return on investment). For example, in the sugar product, significant effect improvement is achieved under AI empowerment.

A：The company uses AI tools as a technology carrier to build market awareness and operational experience to help quickly replicate products and accelerate the globalization process. In addition, the company explores the next generation of AI social entertainment products and enriches the AI industry by investing in world models, AI native game engines, AI interactive games and AI advertising and marketing.

A：AI changes to the social entertainment industry are still in their early stages. The company plans to combine AI capacity building with global market understanding and user demand insight to better serve product experience and improve operating efficiency with technology. In the next decade, despite the continuous changes in technology, the need for human-to-human connection, understanding and emotional value will remain unchanged, which is also the underlying certainty that the company has long invested in the social entertainment industry.

A：The global social entertainment market is huge, and the market size is expected to reach 4.42 trillion billion US dollars by 2030, with a compound annual growth rate of 34.6 per cent. Emerging markets such as Latin America, the Middle East, North Africa, South Asia and Europe are still in the early stages of the release of demand for online social and entertainment, while the demand for high-quality connections in developed markets is still not fully met. These constitute opportunities in the global social entertainment market.

A：The company's products have performed well in many markets around the world. For example, sugar ranks among the top ten best-selling social applications in many Latin American countries and European markets, and maintains a leading position in traditional markets such as the Middle East, North Africa and Southeast Asia. At the same time, localization optimization for the North American market has also achieved initial user and revenue breakthroughs.

A：Localization abroad is crucial for social products because language and cultural boundaries are sometimes more important than national boundaries. Through its successful experience in the Middle East and North Africa market, the company realizes that Latin America also has great market potential, because the cultural groups with the same language have a common underlying logic, and will further explore the local operation strategy at the country level.

A：The company actively participates in brand activities and public welfare activities in major markets around the world, such as launching a series of theme activities during the World Cup in Saudi Arabia, promoting offline advertising in the Latin American market, and carrying out public welfare activities in Southeast Asia, Egypt, Turkey and other places. donate money and materials to orphanages to support children's welfare and philanthropy, and the public welfare footprint has covered many countries and regions.

A：In the future, the company will continue to increase its product strength and innovation, create a new generation of mainstream social products, continuously optimize flagship products and actively incubate new products, and at the same time accelerate the layout of global opportunity markets, especially in Latin America, East Asia, Europe and North America. Consolidate the traditional advantageous markets in the Middle East, North Africa and Southeast Asia, strengthen the operation resources of local teams, and accumulate cognition and cultivate ecology.

A：Well, regarding ROI, our overall sales expense rate in the first half of the year has increased compared to the same period last year, but at this stage we expect the consumption rate to gradually decrease in the second half of the year. The consumption rate was high in Q1 and is now on a downward trend as income grows. This side reflects our ability to control RY. Sugar and Top products differ in terms of market inputs, and Sugar will keep the overall ROI within a certain recovery range and adjust consumer inputs within a reasonable range based on market feedback. However, Top products need to accumulate basic user disks in the early stage, and will invest sales expenses in the new market launch to expand the user scale. Once a stable user scale and ecology are formed, its business will tend to be stable. At present, Q1Q2 input and after-sales feedback is very benign. In the first half of the year, the company decided to split and raise IP based on industry competition and thinking about the future development of IP. The company will IP spin-off financing is to make the IP form not affected by the cost control considerations of listed companies, to take the spin-off financing method is conducive to its development. IP has received tens of millions of dollars in independent financing, with a post-investment valuation of about $0.25 billion. The listed company still holds about 1/3 of the shares and will continue to provide support. IP is developing steadily and rapidly, with global cumulative prices exceeding 400 million, and DAU in July increased sixfold from the beginning of the year. Financing has helped IP achieve faster growth.

A：When deciding whether to enter a new product market, the company first evaluates the match between the product and the market, and through preliminary research to understand the market demand and its in-depth understanding of the operating market. Combining the match between product positioning and demand analysis, and focusing on its progress and growth in the early stages of product commercialization, we will adjust project investment on the basis of this, and increase resource tilt for well-performing projects to promote user size and growth.

A：In the second half of this year, the company's flagship products Top and Sugito will continue to be the main growth drivers, and the two products currently maintain a high growth trend. At the same time, the company will actively expand the scale of users in new markets and continuously improve its liquidity in terms of commercialization. In addition, there are three games that are expected to achieve large-scale growth in the second half of the year, and the short drama business will continue to promote AI transformation.

A：At this stage, the company as a whole is growing rapidly and will balance the financial performance of investment and recovery. The first-half performance growth rate was better than expected at the beginning of the year, and this momentum is expected to continue. With regard to the repurchase, the Company has completed the repurchase of HK $0.15 billion and will continue to implement the repurchase plan, as the current share price is very favorable for the Company to implement the repurchase and reserve future equity incentives.