Core Insights - The report highlights Cheetah Mobile's solid layout in service robots and the establishment of a new growth curve in AI business [2][3] - The company has successfully transitioned from a PC-focused business to a B2B model, and is now evolving into an AI company with significant product offerings [3][4] Company Overview - Cheetah Mobile originated in the PC era and has transformed through various phases, including the establishment of a "three-tier rocket system" with products like Cheetah Browser and Kingsoft Antivirus [3] - The company has launched key mobile products such as Cheetah Clean Master and Cheetah Security Master, and has expanded its offerings to include system management tools and browsers [3] - Since 2016, the company has gradually transitioned to an AI-focused business, integrating Orion Star's service robots, which have shipped over 60,000 units by 2023 [3][4] AI and Robotics Business - Cheetah Mobile is recognized as a leading AI company, with a diverse product matrix in service robots and AI applications [4] - The global robotics market is projected to reach $131.4 billion by 2028, with a CAGR of 16.4% from 2023 to 2028, indicating strong growth potential for the company's robotics segment [4] - The company has successfully deployed its robot products in over 60 countries, particularly in markets like Japan, South Korea, Southeast Asia, and Europe [4] AI Model Development - Cheetah Mobile has demonstrated strong capabilities in AI model development, launching the Orion-14B model in January 2024 and the Orion-MoE 8×7B model in November 2024 [4] - The company offers various AI productivity tools, including AI Data Treasure AirDS, Polaris AI, DecisionAI, and Chatmax, showcasing its competitive edge in AI-enhanced solutions [4] Financial Projections - Revenue forecasts for Cheetah Mobile are projected at 971 million, 1.211 billion, and 1.504 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 20%, 25%, and 24% [5] - The company is expected to report net losses of 521 million, 450 million, and 318 million yuan for the same periods, reflecting ongoing investments in growth despite current losses [5]

Investment Rating - The report assigns an "Accumulate" rating for Cheetah Mobile (CMCM.N) as part of its initial coverage [1]. Core Insights - Cheetah Mobile has successfully transitioned from a PC-based company to a mobile internet and now an AI-focused enterprise, with a solid foundation in service robots and AI applications [7][15]. - The company is positioned as a leading global AI firm, with a diverse product matrix in service robots and large model applications, indicating strong growth potential [7][8]. - Revenue forecasts for Cheetah Mobile from 2025 to 2027 are projected at 9.71 billion, 12.11 billion, and 15.04 billion yuan, respectively, with year-on-year growth rates of 20%, 25%, and 24% [8]. Summary by Sections Basic Information - Cheetah Mobile's revenue is primarily derived from internet business, with AI business emerging as a significant growth driver [12][17]. - The company has a rich history, evolving through three key phases: PC era, mobile internet era, and AI era, with significant milestones in each phase [15][17]. AI Business - The global service robot market is expected to reach $56.9 billion by 2028, with a CAGR of 14.9% from 2023 to 2028 [25]. - Cheetah Mobile's AI robot product matrix is extensive, covering various scenarios and achieving widespread application in over 60 countries [36][35]. - The company has developed strong capabilities in large model applications, launching its Orion-14B model in January 2024 and the Orion-MoE 8×7B model in November 2024 [7][48]. Financial Analysis - In 2024, Cheetah Mobile's total revenue is projected to be 8.07 billion yuan, with a 20.5% year-on-year growth, driven by a recovery in internet business and strong performance in AI [70]. - The company is currently in a high-investment phase, with overall expense ratios remaining elevated [71]. Valuation Model - The report emphasizes the potential for growth in Cheetah Mobile's AI business and provides an "Accumulate" rating based on the company's strong cash position and growth prospects [10][76].

Market Capitalization Summary - NIO has a market capitalization of 14.376 billion [2] - TAL Education has a market capitalization of 8.903 billion [2] - Vipshop has a market capitalization of 8.852 billion [2] - Miniso has a market capitalization of 6.079 billion [2] - JD Health has a market capitalization of 5.543 billion [2] Stock Performance - NIO's stock increased by 0.36 (+2.07%) [2] - TAL Education's stock decreased by 1.06 (-1.91%) [2] - Vipshop's stock decreased by 0.33 (-2.95%) [2] - Miniso's stock decreased by 0.59 (-1.29%) [2] - JD Health's stock decreased by 0.14 (-0.78%) [2] Additional Company Insights - Lufax Holdings has a market capitalization of 2.443 billion [2] - Huya has a market capitalization of 0.786 billion [3] - Xiaoniu Electric has a market capitalization of 0.286 billion [3] - Cheetah Mobile has a market capitalization of 0.116 billion [3] - Yunmi has a market capitalization of 0.094 billion [3]

Market Capitalization Summary - TAL Education Group has a market capitalization of 14.104 billion [2] - Vipshop Holdings has a market capitalization of 8.066 billion [2] - 7.705 billion market capitalization for SouFun Holdings [2] - 6.042 billion market capitalization for WuXi AppTec [2] - 2.461 billion market capitalization for Lufax Holding [2] Stock Performance - TAL Education Group's stock increased by 0.75 (+3.77%) [2] - Vipshop Holdings' stock rose by 0.34 (+2.29%) [2] - SouFun Holdings saw a stock increase of 1.75 (+4.05%) [2] - WuXi AppTec's stock increased by 0.70 (+2.75%) [2] - Lufax Holding's stock rose by 0.05 (+1.79%) [2] Additional Company Insights - The stock of iQIYI increased by 0.38 (+4.04%) with a market cap of 2.417 billion [2] - Xunlei's market capitalization is 2.74 billion with a stock increase of 0.09 (+2.09%) [4] - The market cap of Huami is 0.1758 billion with a stock increase of 0.02 (+0.98%) [4]

Core Viewpoint - Cheetah Mobile (CMCM) is experiencing growth in revenue and net profit, indicating a positive financial trajectory as it transitions towards AI-driven industrial internet solutions [1][2]. Financial Performance - As of March 31, 2025, Cheetah Mobile reported total revenue of 259 million RMB, representing a year-on-year increase of 36.11% [1]. - The company's net profit attributable to shareholders was -33.36 million RMB, showing a year-on-year growth of 58.32% [1]. Strategic Direction - Cheetah Mobile is evolving from a mobile internet company to an AI-driven industrial internet company, focusing on enhancing life through technology [2]. - The company has developed a vertically integrated AI capability, which includes self-developed chip computing power, algorithm capabilities, system capabilities, application capabilities, and a commercial brain [2]. - Cheetah Mobile's AI solutions encompass intelligent service robots and AI empowerment solutions, aiming for non-continuous growth and positioning itself as a leading global AI industrial internet company [2].

Exhibit 99.1 Cheetah Mobile Announces First Quarter 2025 Unaudited Consolidated Financial Results BEIJING, June 19, 2025 - Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a China-based IT company, today announced its unaudited consolidated financial results for the quarter ended March 31, 2025. Management Commentary Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, remarked, "We kicked off 2025 with strong momentum - total revenue grew 36.1% year-over-year in the fir ...

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached $259 million, up 36% year over year and 9% quarter over quarter [14] - Gross profit increased by 67% year over year to $190 million, with a gross margin of 73.2%, up from 59.2% a year ago [14] - Operating loss narrowed to $27 million from $81 million in the year-ago quarter [15] - Net loss attributable to shareholders was $33 million, reduced from $80 million in the year-ago quarter [15] Business Line Data and Key Metrics Changes - The Internet business saw a 46% increase in revenue year over year, with an operating margin nearly doubling to 15.5% [5][16] - Losses from the AI and Other segment narrowed to $46 million compared to $82 million a year ago [16] Market Data and Key Metrics Changes - The company is focusing on scalable, modernizable use cases in AI and robotics, leveraging open-source models to enhance performance [17] - The total headcount was approximately 850, down from 862 a year ago, indicating cost control measures [18] Company Strategy and Development Direction - The company aims to strengthen its position in both traditional and new business areas, with a focus on AI and robotics [4] - AI is central to the company's strategy, with significant investments in R&D and product upgrades [8] - The company plans to enhance its legacy Internet business while pushing forward with AI initiatives [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing positive momentum in revenue growth and loss reduction [5] - The company is cautious about the robotics industry's commercialization timeline, indicating it may take over five years for humanoid robots to achieve significant market presence [52] Other Important Information - The company has over $200 million in cash, providing strategic flexibility for potential acquisitions [66] - The focus is on transforming traditional software into AI-driven applications, emphasizing user-centered payment models [45][46] Q&A Session Summary Question: Will Cheetah's future development focus more on AI tools or robots? - Management believes both areas are complementary, with a short-term focus on AI tools due to rapid development potential [22][24] Question: What are the company's thoughts on data asset construction in robotics? - Management is cautious about the current state of data conversion in robotics and does not plan to provide external data services at this time [26][30] Question: How does the company balance open-source models and self-developed approaches? - The company prioritizes efficiency and will use open-source models when they provide better results [32][33] Question: What is the company's commercialization path for AI tools? - The company is adopting a subscription model for AI tools, which has shown user acceptance and willingness to pay [42][44] Question: Will the company achieve overall break-even in the second half of 2025? - Achieving profitability is a major goal, but it depends on core business progress and market conditions [71][72]

Core Viewpoint - Cheetah Mobile Inc. reported strong financial results for Q1 2025, with total revenue increasing by 36.1% year-over-year, driven by robust performance in its Internet business and AI segments [2][5]. Financial Performance - Total revenues reached RMB 259.0 million (US$ 35.7 million), reflecting a 36.1% increase year-over-year and a 9.2% increase quarter-over-quarter [5]. - Gross profit rose by 67.2% year-over-year to RMB 189.5 million (US$ 26.1 million) [5]. - Operating loss significantly narrowed to RMB 26.5 million (US$ 3.7 million) from RMB 80.6 million in the same period last year [5]. - Net loss attributable to Cheetah Mobile shareholders was RMB 33.4 million (US$ 4.6 million), down from RMB 80.0 million year-over-year [5]. Segment Performance - Revenue from the Internet business increased by 46.0% year-over-year, while the AI and Others segment grew by 22.9% year-over-year and 29.8% quarter-over-quarter [2][5]. - The operating margin for the Internet business improved to 15.5%, up from 7.9% a year ago [2]. Management Insights - The CEO emphasized the company's commitment to AI and robotics, highlighting the potential of agentic AI as a transformative force [2]. - The CFO noted disciplined execution and cost optimization as key factors in reducing losses while maintaining revenue growth [2]. Liquidity and Investments - As of March 31, 2025, the company had cash and cash equivalents of RMB 1,699.2 million (US$ 234.2 million), indicating strong liquidity [5]. - Long-term investments stood at RMB 813.1 million (US$ 112.1 million) [5].

Group 1 - Cheetah Mobile's stock increased by 3.72% on June 16, reaching $4.18 per share, with a total market capitalization of $128 million [1] - For the fiscal year ending December 31, 2024, Cheetah Mobile reported total revenue of 807 million RMB, representing a year-on-year growth of 20.52%, while the net profit attributable to shareholders was -618 million RMB, a decrease of 2.43% year-on-year [1] Group 2 - Cheetah Mobile is a leading global mobile internet company, focusing on enhancing life through technology in a world of human-machine coexistence [3] - The company is transitioning from mobile internet to AI-driven industrial internet, building a vertically integrated AI capability that includes self-developed chip computing power, algorithm capabilities, system capabilities, and application capabilities [3] - Cheetah Mobile has developed three open systems: Orion Star Voice OS, Orion Star Robot OS, and Orion Star Arm OS, and offers intelligent service robot solutions based on smart voice service robots, smart delivery service robots, and smart labor service robots [3] - The company aims to achieve non-continuous growth and become a leading global AI industrial internet company by leveraging AI to empower industries [3]

Market Capitalization Overview - New Oriental has a market capitalization of 14.264 billion [2] - TAL Education (好未来) has a market capitalization of 8.983 billion [2] - Vipshop (唯品会) has a market capitalization of 7.770 billion [2] - Zai Ding Pharmaceutical (再鼎医药) has a market capitalization of 4.357 billion [2] - RELX has a market capitalization of 3.519 billion [2] Stock Performance - New Oriental's stock increased by 0.39 (+2.21%) [2] - TAL Education's stock increased by 1.00 (+5.02%) [2] - Vipshop's stock increased by 1.47 (+3.15%) [2] - Zai Ding Pharmaceutical's stock increased by 0.40 (+0.96%) [2] - RELX's stock increased by 0.37 (+2.98%) [2] Additional Companies - Huya (虎牙) has a market capitalization of 1.059 billion with a stock increase of 0.04 (+1.03%) [2] - iQIYI (爱奇艺) has a market capitalization of 2.479 billion with a stock increase of 0.14 (+1.52%) [2] - Lexin (乐信) has a market capitalization of 1.529 billion with a stock increase of 0.34 (+4.15%) [2] - Yihua Smart (宜人智科) has a market capitalization of 0.548 billion [2] Smaller Market Players - Sohu has a market capitalization of 0.323 billion with a stock decrease of 0.04 (-2.02%) [3] - Xiaoniu Electric (小牛电动) has a market capitalization of 0.257 billion [3] - Baozun (宝尊电商) has a market capitalization of 0.173 billion [3] - Huami Technology (华米科技) has a market capitalization of 0.164 billion [3]