Financial Performance - Revenue contributed by the VIEs accounted for 44.5%, 43.4%, and 47.9% of total revenues for the years ended December 31, 2022, 2023, and 2024, respectively[36]. - The company reported a net loss attributable to Phoenix New Media Limited of RMB 53.6 million for the year ended December 31, 2024, compared to a net loss of RMB 102.5 million for 2023 and RMB 109.7 million for 2022[54][55]. - Total operating expenses for the year ended December 31, 2024, were RMB 333.4 million, an increase from RMB 353.6 million in 2023 and RMB 428.6 million in 2022[54][55]. - Third-party revenues for the year ended December 31, 2024, were RMB 703.7 million, compared to RMB 692.0 million in 2023 and RMB 785.7 million in 2022[54][55]. - The gross profit for the year ended December 31, 2024, was RMB 268.7 million, showing a decrease from RMB 227.9 million in 2023 and RMB 237.2 million in 2022[54][55]. - The loss from operations for the year ended December 31, 2024, was RMB 64.7 million, compared to RMB 125.7 million in 2023 and RMB 191.4 million in 2022[54][55]. - The company reported inter-company revenues of RMB 51.5 million for the year ended December 31, 2024, compared to RMB 33.3 million in 2023 and RMB 8.2 million in 2022[54][55]. - The company has indicated that undistributed earnings subject to dividend tax are expected to be indefinitely reinvested for the foreseeable future[49]. - The hypothetical net distribution to shareholders, assuming a future dividend, would be 67.5% of pre-tax earnings after accounting for a 25% income tax and a 10% withholding tax[50]. Debt and Financing - As of January 1, 2022, subsidiaries had debt financing from Phoenix New Media Limited of RMB834.6 million, and VIEs had debt financing from subsidiaries of RMB255.9 million[46]. - In 2024, subsidiaries received RMB15.9 million (US$2.2 million) of debt financing from Phoenix New Media Limited[46]. - VIEs and their subsidiaries repaid RMB77.6 million of debt financing to subsidiaries in 2022 and received RMB229.9 million of debt financing in 2023[46]. - The cash flow from financing activities showed a net cash used of RMB (1,901,000) in 2024, compared to a net cash provided of RMB (655,000) in 2023, indicating a significant shift in financing activities[58]. Regulatory and Compliance Risks - The company faces risks related to the enforcement of contractual arrangements with VIEs, which may not be as effective as ownership[38]. - The Holding Foreign Companies Accountable Act may affect the company's ability to maintain its listing on the NYSE[40]. - The company is subject to uncertainties regarding future PRC laws and regulations that could impact its operations and financial performance[39]. - The lack of an Internet audio-visual program transmission license may expose the company to administrative sanctions, affecting paid mobile video services and video advertising services[64]. - The company may face adverse effects from changes in PRC regulations regarding foreign investment in Internet businesses, which could lead to severe penalties or loss of interests in operations[66]. - The company may be subject to PRC regulations that could restrict its online advertising services, impacting its business operations[72]. - The company is not currently in compliance with the MIIT 2006 Notice regarding ownership of trademarks used in telecommunications services[130]. - The complexity and uncertainties in PRC regulations may adversely affect the company's ability to own key assets, including PC websites and mobile applications[133]. Advertising and Revenue Generation - The company expects to continue relying on advertising to drive a significant portion of future revenues, with potential material impacts if existing advertisers are not retained or new advertisers are not attracted[63]. - In 2022, 2023, and 2024, the company generated 88.7%, 89.5%, and 89.6% of its total revenues from advertising services, respectively[71]. - The ability to retain existing advertisers and attract new ones is crucial for the company's future growth and operating results[72]. - The majority of net advertising revenues in China were derived from advertising agencies in 2022, 2023, and 2024, indicating a reliance on these agencies for sourcing advertisers and collecting revenue[78]. - Consolidation among advertising agencies in China may lead to increased service fees, negatively impacting net advertising revenues[79]. Operational Challenges - The company faces risks related to the inability to successfully expand its mobile strategy and increase mobile advertising revenues, which could materially affect business and growth prospects[63]. - The company may experience fluctuations in quarterly revenues and operating results, making predictions difficult and potentially causing results to fall short of expectations[65]. - The company must continue to provide high-quality content to attract and retain users; failure to do so may result in reduced user traffic and competitiveness[80]. - The company launched an e-commerce business in 2020 to leverage its user base, but success is not guaranteed[86]. - The company faces significant competition from various media and online service providers, which may impact user traffic and advertising revenue[88]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,711,927,000, a decrease from RMB 1,758,744,000 as of December 31, 2023, reflecting a decline of approximately 2.65%[56][57]. - Cash and cash equivalents increased to RMB 607,579,000 in 2024 from RMB 527,407,000 in 2023, representing a growth of about 15.2%[56][57]. - Total liabilities decreased to RMB 598,517,000 in 2024 from RMB 595,121,000 in 2023, indicating a slight increase of approximately 0.4%[56][57]. - Total shareholders' equity as of December 31, 2024, was RMB 1,113,410,000, a decrease from RMB 1,163,623,000 in 2023, reflecting a decline of approximately 4.3%[56][57]. - The amount due from inter-company entities was RMB 2,375,593,000 as of December 31, 2024, compared to RMB 1,969,665,000 in 2023, indicating an increase of approximately 20.6%[56][57]. Legal and Intellectual Property Issues - The company has been subject to various legal proceedings, which could materially affect its financial condition and results of operations[151]. - The company faces increased risks of intellectual property infringement claims, with potential substantial damages and operational disruptions[156]. - The company has been fined RMB250,000 for disseminating content without proper licensing rights[157]. - The company may be subject to copyright claims in jurisdictions outside of China, which could be costly and time-consuming to defend[160]. Cybersecurity and Data Protection - The company is subject to various cybersecurity and data protection laws in China, which could lead to significant legal liabilities if not complied with[112]. - The Cybersecurity Law mandates that personal information and important data must be stored within China, with potential penalties for non-compliance[113]. - The company may face operational disruptions if classified as a "critical information infrastructure operator" under the Cybersecurity Review Measures, which could impact user registration and business operations[115]. Economic and Market Conditions - China's GDP growth was reported at 5% in 2024, indicating a deceleration in economic growth since 2012[165]. - The Chinese economy has shown uneven growth, which may adversely affect the company's operations and financial condition[218]. - The PRC government continues to exert significant control over economic growth and industry development, impacting the company's competitive position[216]. Shareholder and Governance Issues - The company's dual-class ordinary share structure may discourage potential change of control transactions, affecting shareholder interests[70]. - Phoenix TV (BVI) owned 55.0% of the total issued shares as of March 31, 2025, giving it 61.4% of the total voting power, which may not align with the interests of other shareholders[196]. - The company may encounter conflicts of interest with Phoenix TV due to its controlling beneficial ownership, potentially affecting decision-making[197].

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were RMB 218.1 million, representing a 3% increase year-on-year from RMB 211.8 million [14] - Net advertising revenues were RMB 189 million, down from RMB 197 million in the same period last year [15] - Paid services revenues reached RMB 29.1 million, a significant 96.6% increase year-on-year from RMB 14.8 million, driven by new digital reading services [15] - Gross margin improved to 44.5%, up from 43.1% in the same period last year [15] - Net loss attributable to the company was RMB 3.6 million, compared to a net income of RMB 8.1 million in the same period last year [17] Business Line Data and Key Metrics Changes - The paid services revenue growth was primarily attributed to the paid short story novel business launched on third-party platforms, which tapped into traffic ecosystems like Douyin, Kuaishou, and WeChat [22] - The company achieved notable revenue gains from its new digital reading services, although the overall profit margin remained modest due to related promotion fees recorded under sales and marketing expenses [22] Market Data and Key Metrics Changes - The company experienced growth in advertising revenue despite a broader slowdown in the online advertising market, indicating effective strategies to attract advertisers [25] - The sales team shifted to industry-specific divisions, focusing on sectors such as public sector and FMCG, which contributed to the growth in advertising revenue [26][27] Company Strategy and Development Direction - The company remains committed to professionalism and quality in content, achieving year-on-year revenue growth [5] - There is a focus on social responsibility and commercial exploration, with plans to continue delivering high-quality content while creating sustainable social and commercial value [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of rapid response and professional depth in news coverage, particularly during significant events like the US election and South Korea's martial law crisis [7][8] - The company forecasts total revenues for Q1 2025 to be between RMB 147 million and RMB 162 million, with net advertising revenues projected between RMB 112 million and RMB 122 million [18] Other Important Information - The company held impactful events reflecting cultural values and commitment to social good, such as the 2024 China Power Person of the Year Gala [11] - The company’s cash and cash equivalents, term deposits, short-term investments, and restricted cash totaled approximately US$143.3 million as of December 31, 2024 [17] Q&A Session Summary Question: Factors contributing to the growth in paid services revenue - Management explained that the growth in paid services revenue was driven by the paid short story novel business launched on third-party platforms, which tapped into traffic ecosystems like Douyin, Kuaishou, and WeChat [21][22] Question: Strategies used to attract advertisers despite market slowdown - Management shared that the growth in advertising revenue was achieved through two key approaches: shifting the sales team to industry-specific divisions and accelerating innovation in content resources and marketing products [25][26][27]

Financial Data and Key Metrics Changes - Total revenues for the third quarter of 2024 were RMB164.3 million, representing a 7% increase from RMB153 million in the same period last year [15] - Net advertising revenues were RMB148.4 million, an increase of 10.5% from RMB134.3 million year-over-year [15] - Paid services revenues decreased to RMB15.9 million from RMB19.3 million in the same period last year [15] - Gross margin improved to 37.9% from 34.1% year-over-year [16] - Loss from operations was RMB25.9 million, an improvement from RMB38.5 million in the same period last year [17] - Net loss attributable to the company was RMB18.5 million, compared to RMB21.5 million in the same period last year [17] - Cash and cash equivalents as of September 30, 2024, were RMB971.8 million [18] Business Line Data and Key Metrics Changes - The sports column produced 8 in-depth pieces during the Paris Olympics, generating significant engagement and commercial success [7][8] - The finance sector maintained leadership, with a forum generating nearly 1 billion views and 180 million short video views [9][10] - The company enhanced commercialization efficiency by aligning resources with clients, focusing on culture, tourism, and culinary content [11][12] Market Data and Key Metrics Changes - The company assisted over 10 clients with marketing campaigns during the Olympics, achieving high client satisfaction [8] - The FMCG sector saw a significant year-over-year revenue increase, alongside strong growth in the public sector and alcoholic beverages [24] Company Strategy and Development Direction - The company is committed to producing high-quality original content and enhancing media influence through exclusive reports [13] - There is a focus on international content dissemination and marketing, particularly during major global events [23] - The company aims to optimize client portfolios and strengthen monetization capabilities in a challenging market environment [13] Management's Comments on Operating Environment and Future Outlook - Management noted that advertising revenue has outperformed the overall Internet media advertising market due to improved content monetization strategies [21] - There is a recognition of the increasing complexity and cost of project execution, necessitating continued focus on cost control [24] - The company remains confident in the market's opportunities despite challenges [24] Other Important Information - The company forecasts total revenues for the fourth quarter of 2024 to be between RMB197.9 million and RMB212.9 million [19] Q&A Session Summary Question: Future outlook for advertising revenue growth - Management indicated that advertising revenue has outperformed the overall market due to improved content monetization strategies and tactical adjustments [21] - Emphasis was placed on the importance of content quality and emotional connections in media [22] - Management acknowledged a trend of declining advertising spend per customer and the need for better alignment of content resources with client needs [24]

Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were RMB168.3 million, a decrease from RMB180.2 million in the same period last year [11] - Net advertising revenues were RMB154.7 million, down from RMB161.8 million year-over-year [11] - Paid services revenues decreased to RMB13.6 million from RMB18.4 million in the same period last year [11] - Cost of revenues decreased by 17.2% to RMB102.9 million, resulting in an increase in gross margin from 31% to 38.9% [12] - Loss from operations improved to RMB8.9 million from RMB35.7 million year-over-year [12] - Net loss attributable to the company was RMB5.5 million, significantly improved from RMB31.3 million in the same period last year [12] - As of June 30, 2024, cash and cash equivalents totaled RMB989.1 million (approximately US$136.1 million) [12] Business Line Data and Key Metrics Changes - The company successfully covered major events, enhancing media influence through high-quality content and extensive online distribution [5][6] - The original video service, Phoenix Lab, produced 23 long videos and 72 short videos, achieving a total of 1.7 billion views across platforms [8] - The advertising revenue from third-party platform accounts achieved double-digit growth year-over-year [10] Market Data and Key Metrics Changes - The overall internet media ad spending experienced a year-over-year decline in the first half of 2024, but the company's advertising revenue remained stable with a slight increase [14] - Significant growth was observed in key areas such as alcoholic beverages, FMCG, and the public sector [15] Company Strategy and Development Direction - The company aims to strengthen its professional capabilities, produce quality content, and optimize user experience as core competitiveness [11] - Focus on expanding efforts in international marketing, particularly with the upcoming Paris Olympics [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the advertising market but expressed confidence in maintaining revenue through diversification into other sectors [14][16] - The company forecasts total revenues for Q3 2024 to be between RMB151.6 million and RMB166.6 million [13] Other Important Information - The company is committed to refining products and fostering innovation in both content and commercial products [5] Q&A Session Summary Question: Growth rate of the internet advertising market seems to be slowing down; what are the management's views on the forward advertising market? - Management noted a year-over-year decline in overall internet media ad spending but highlighted stable advertising revenue with slight increases, particularly in sectors like alcoholic beverages and FMCG [14][15][16]

Financial Data and Key Metrics Changes - Total revenues for Q1 2024 were RMB153 million, a 4.5% increase from RMB146.4 million in the same period last year [12] - Net advertising revenues reached RMB138.6 million, marking a 9.8% increase from RMB126.2 million year-on-year [12] - Paid services revenue decreased to RMB14.4 million from RMB20.2 million in the same period last year, primarily due to a decline in licensing revenues and e-commerce [12] - Cost of revenues decreased by 7.7% to RMB109 million from RMB118.1 million year-on-year, resulting in a gross margin increase to 28.8% from 19.3% [12] - Loss from operations improved to RMB36.5 million from RMB74.4 million in the same period last year, and net loss attributable to the company was RMB26 million compared to RMB57.8 million [13] Business Line Data and Key Metrics Changes - The restructuring of the sales department led to better alignment with industry needs, resulting in growth across diverse sectors [10] - Significant progress was made in monetizing third-party social media accounts, attracting new clients in various industries including food and beverage and consumer electronics [19] Market Data and Key Metrics Changes - The advertising market showed promising trends in Q1 2024, aligning with economic recovery, although internet advertising experienced a significant double-digit decline [18] - Strong growth was observed in specific industries such as food and beverage, particularly alcoholic beverages, as well as entertainment and electronic products [18] Company Strategy and Development Direction - The company remains committed to delivering high-quality content and optimizing advertising sales strategies to align with industry client needs [4] - Focus on enhancing operational and commercial efficiency while ensuring profitability amidst tighter content budgets and increased competition [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving business objectives despite ongoing macroeconomic uncertainties and challenges in the advertising market [11] - The company forecasts total revenues for Q2 2024 to be between RMB150.2 million and RMB165.2 million, with net advertising revenues expected between RMB141.9 million and RMB151.9 million [13] Other Important Information - The company achieved significant audience reach and engagement during major news events, enhancing its media influence [6] - The original investigative series "Eye of the Storm" received recognition for its high-quality reporting and impact on the financial sector [9] Q&A Session Summary Question: Discussion on the current advertising market and expectations for Q2 - Management noted that the advertising market showed promising trends in Q1, with a slight year-on-year increase, but highlighted challenges in internet advertising which saw a significant decline [17][18] - The company observed strong growth in specific sectors and made significant progress in monetizing third-party social media accounts, attracting new clients [19]

Revenue Composition - In 2023, advertising revenues accounted for 89.5% of total revenues, while paid services contributed 10.5%[316] - Total revenues for 2023 were comprised of 89.5% from advertising services and 10.5% from paid services[421] - Total revenues decreased by 11.9% to RMB 692.0 million (US$ 97.5 million) in 2023 from RMB 785.7 million in 2022, primarily due to declines in net advertising revenues and paid services revenues[469] - Net advertising revenues accounted for 89.5% of total revenues in 2023, down from 90.3% in 2021[462] - Paid services revenues decreased from RMB 89.0 million in 2022 to RMB 72.7 million (US$10.2 million) in 2023, primarily due to the closure of certain E-commerce business lines[422] Advertising Performance - The mobile channel generated 73.7% of net advertising revenues, while the PC channel contributed 26.3% in 2023[317] - The advertising services generated significant revenue, with the top ten advertisers accounting for 18.9% of total gross advertising revenues in 2023[337] - Advertising revenues were generated 26.3% from PC channels and 73.7% from mobile channels in 2023[421] Paid Services - The company derived 48.0% of paid services revenues from paid content and 52.0% from E-commerce and others in 2023[318] - Paid services revenues comprised 48.0% from paid content and 52.0% from e-commerce and other services, contributing 5.0% and 5.5% to total revenues respectively in 2023[343] Financial Overview - The net loss for 2023 was $109.12 million, compared to a net loss of $125.72 million in 2022[462] - Gross profit for 2023 was $227.88 million, representing a gross margin of 32.9%[462] - Operating expenses in 2023 totaled $353.57 million, which is 51.0% of total revenues[462] - The company reported a non-GAAP adjusted net loss attributable to Phoenix New Media Limited of $87.22 million in 2023[462] Cost Management - Total cost of revenues decreased from RMB 597,397 in 2021 to RMB 548,505 in 2022, and further to RMB 464,145 in 2023, primarily due to effective cost control measures[443] - Operating expenses decreased from RMB 769,029 in 2021 to RMB 428,637 in 2022, and to RMB 353,572 in 2023, reflecting strict cost control measures[448] Employee and Management - The number of employees decreased from 893 as of December 31, 2022, to 743 as of December 31, 2023, primarily due to cost control measures and optimization of employee structure[350] - Yusheng Sun has been the Chief Executive Officer since March 2023, bringing extensive experience from the television broadcasting industry[500] - Qi Li, serving as a director since December 2022, is responsible for financial budgeting and capital investments[501] Legal and Regulatory Compliance - The company must comply with the Negative List for Market Access, which prohibits non-State-owned capital from engaging in news media-related businesses[373] - The company has adopted internal procedures to monitor content on its platforms to comply with PRC laws, but faces uncertainty regarding the interpretation of prohibited content[363] - The company is at risk of being banned from its paid mobile video services and video advertising services due to the lack of the required license[366] Investments and Acquisitions - The company has invested a total of RMB 90.0 million in selected venture capital funds, with a carrying value of RMB 73.2 million (US$10.3 million) as of December 31, 2023[408] - The company holds 4,584,209 Series D1 convertible redeemable preferred shares of Particle, which are classified as available-for-sale debt investments[407] Cash Flow and Liquidity - As of December 31, 2023, the company had RMB 534.5 million (US$75.3 million) in cash, cash equivalents, and restricted cash, a significant increase from RMB 105.0 million (US$14.8 million) at the end of 2022[479] - The net cash used in operating activities for 2023 was RMB 60.8 million (US$8.6 million), primarily due to a net loss of RMB 109.1 million (US$15.4 million) adjusted by non-cash items[481] Corporate Structure and Relationships - As of March 31, 2024, Phoenix TV indirectly owned 55.0% of the company's ordinary shares and 61.4% of the voting power[319] - The company has a mutually beneficial relationship with Phoenix TV, promoting each other's brands and collaborating on major news events[321] Content and Production - The company provides over 39 interest-based verticals, including news, finance, technology, and entertainment, featuring integrated content[326] - The company’s original content production capabilities are a core competitive differentiation, focusing on in-depth commentary and investigative reporting[325] Market Environment - The competitive landscape includes major players like Baidu, Tencent, and ByteDance, with a focus on maintaining quality content and user experience to drive growth[346] - The company operates in a competitive new media industry influenced by factors such as China's economic growth and Internet penetration[423]

Financial Data and Key Metrics Changes - Total revenues for Q4 2023 were RMB211.8 million, a decrease from RMB223.9 million in the same period last year [12] - Net advertising revenues were RMB197 million, down from RMB205.4 million year-over-year, attributed to reduced advertising spending in certain industries and increased competition [12] - Paid services revenues decreased to RMB14.8 million from RMB18.5 million, primarily due to a decline in e-commerce revenues [12] - Cost of revenues decreased by 11.3% to RMB120.5 million from RMB135.8 million in the same period last year [12] - Gross margin increased to 43.1% from 39.4% due to strict cost control measures [13] - Net income attributable to the company was RMB8.1 million, down from RMB41.6 million in the same period last year [13] - Cash and cash equivalents, term deposits, short-term investments, and restricted cash totaled RMB1.09 billion (approximately US$154 million) as of December 31, 2023 [13] Business Line Data and Key Metrics Changes - The company focused on enhancing content productivity and monetization through video platforms and event marketing [6] - Original content creation was highlighted, with the documentary series "Journey" achieving over 700 million views across 11 episodes [8] - A 20% year-on-year increase in user engagement metrics was reported, indicating successful content strategy implementation [10] Market Data and Key Metrics Changes - The advertising market faced challenges with a decrease in Internet advertisers, closely tied to economic shifts [18] - The company aims to leverage its media influence and explore growth in global branding and cultural tourism marketing [18] Company Strategy and Development Direction - The company emphasizes its core competency in licensed news and aims to optimize operational resources and enhance brand value [5] - A strategic overhaul of the advertising sales team was initiated to focus on industry-specific business units, facilitating sharper industry focus and resource allocation [10] - The company is committed to operational excellence and strategic innovation to navigate the evolving media landscape [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in boosting operating profit and reducing losses in 2024 through increased revenue and cost management [17] - The advertising market is expected to present challenges, but the company believes in seizing opportunities through innovative strategies [18] - The company forecasts total revenues for Q1 2024 to be between RMB130.8 million and RMB145.8 million, with net advertising revenues projected between RMB121.3 million and RMB131.3 million [14] Other Important Information - The company successfully executed flagship events and marketing initiatives, reaffirming its media influence [9] - The iFeng Finance Summit and influencer awards were notable events that showcased the company's commitment to recognizing industry developments [9] Q&A Session Summary Question: Insights into the company's performance expectations for 2024 and advertising market prospects - Management plans to focus on boosting operating profit and reducing losses, with strategies in place to enhance collaboration and operational metrics [17] - The advertising market is expected to face challenges, but the company aims to maintain its unique positioning and explore new growth avenues [18]

Financial Data and Key Metrics Changes - Total revenues for Q3 2023 were RMB153.6 million, down from RMB194.8 million in the same period last year, reflecting a decrease of approximately 21.1% [12] - Net advertising revenues decreased to RMB134.3 million from RMB172.4 million year-over-year, a decline of about 22.1% [12] - Paid services revenues fell to RMB19.3 million from RMB22.4 million, representing a decrease of approximately 13.8% [12] - Loss from operations was RMB38.5 million compared to a loss of RMB36.5 million in the same period last year [12] - Net loss attributable to the company was RMB21.5 million, a shift from net income of RMB24.3 million in the same period last year [12] Business Line Data and Key Metrics Changes - The advertising business faced challenges due to reduced spending from advertisers in certain industries and increased competition [12] - The company reported that traffic peaked and growth slowed in the advertising market, necessitating a focus on targeting specific audiences [9][10] - The sports and video channels released nearly 100 short videos, achieving a total view count of 37 million, indicating strong engagement in this segment [7] Market Data and Key Metrics Changes - The company noted that hot topics, particularly the Israel-Palestine conflict, accounted for 30% of total new visits, highlighting the impact of current events on user engagement [6] - The Phoenix News accounts on Douyin gained 3.31 million new followers in Q3, surpassing a total of 10 million followers, indicating growth in social media presence [7] Company Strategy and Development Direction - The company aims to leverage its core competency in news coverage to enhance content quality and support content marketing efforts [4] - Plans for organizational restructuring are underway to accelerate innovation and adapt to market changes [10][11] - The company is exploring new opportunities in global markets, cultural tourism marketing, and social media platforms [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic uncertainties and challenges in the advertising business but emphasized the importance of adapting strategies [4] - The company is forecasting total revenues for Q4 2023 to be between RMB179.8 million and RMB199.8 million, with net advertising revenues expected between RMB169 million and RMB184 million [13] Other Important Information - The company successfully held the 2023 Forever Happiness Charity Gala, raising over RMB2.7 million for disadvantaged children, demonstrating its commitment to social responsibility [9] Q&A Session Summary Question: Update on stock buyback plan - Management expressed confidence in the company's fundamentals and future performance, stating that the buyback plan aims to return cash to shareholders and will comply with U.S. securities law [16]

Financial Data and Key Metrics Changes - Total revenues for Q2 2023 were RMB180.2 million, a decrease from RMB191.6 million in the same period last year [17] - Net advertising revenues increased to RMB161.8 million compared to RMB160.5 million in the same period last year [17] - Paid services revenues were RMB18.4 million, down from RMB31.1 million in the same period last year, primarily due to reduced content spending by certain customers and a decline in e-commerce revenues [17] - Loss from operations was RMB35.7 million, narrowing by 62.4% year-over-year due to increased gross profit and decreased operating expenses [17] - Net loss attributable to the company was RMB31.3 million, narrowing by 67.3% year-over-year [17] - As of June 30, 2023, cash and cash equivalents, term deposits, short-term investments, and restricted cash totaled RMB1.08 billion (approximately US$149 million) [17] Business Line Data and Key Metrics Changes - The company focused on enhancing media influence by covering major events, resulting in significant viewership for related video content, which achieved 77 million views [7] - The company organized live broadcasts during significant events, such as the Wagner rebellion, which reached nearly 14 million viewers across all platforms [8] - The introduction of AI-generated content and interactive features on the flagship app led to a 5% increase in logged-in users quarter-over-quarter and a 12% increase in overall click-through rates [14][15] Market Data and Key Metrics Changes - The Chinese advertising market showed a moderate recovery trend in Q2 2023, although challenges remain as advertisers are cautious with their marketing budgets [21] - The company identified growth areas in new product development and promotions, particularly in sectors like automobiles and electronics [22] Company Strategy and Development Direction - The company aims to deepen coverage of breaking news and major events while focusing on differentiation in content dissemination [6] - There is a strategic emphasis on enhancing marketing resources and capabilities to boost advertising revenue [23] - The company plans to align resources to strategic business units to solidify its position in the media industry [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while the advertising market is recovering, it still faces challenges, and advertisers are cautious [21] - The company is focusing on profitability and maintaining a steady revenue stream by directing resources towards critical parts of the business [25] - The forecast for Q3 2023 anticipates total revenues between RMB158.5 million and RMB178.5 million, with net advertising revenues expected between RMB148.7 million and RMB163.7 million [18] Other Important Information - The company has strengthened its collaboration with Phoenix TV, enhancing integrated marketing resources [5] - The introduction of AI Vanguard, an original program utilizing AI for content generation, has shown promising results with 420,000 views [12][13] Q&A Session Summary Question: Review of the ad business during the first half of the year and outlook for the second half - Management indicated that ad revenue decreased in Q1 due to slow economic recovery but showed improvement in Q2, with a moderate recovery trend in the advertising market [21] - Identified growth areas include new product development and promotions, with a focus on enhancing marketing services for various industries [22] Question: Decline in paid services revenue and future plans for diversified business - Management emphasized the focus on profitability and maintaining a steady revenue stream, with a strategic direction towards core media operations [25] - The decline in paid services revenue was attributed to less profitable ventures, and the company plans to prioritize projects with better returns [25]

Revenue Performance - Total revenues for Q2 2023 decreased by 5.9% to RMB180.2 million (US$24.8 million) from RMB191.6 million in Q2 2022, primarily due to a decline in paid services revenues[3] - Net advertising revenues increased slightly to RMB161.8 million (US$22.3 million) in Q2 2023, compared to RMB160.5 million in the same period of 2022[3] - Paid services revenues decreased by 40.8% to RMB18.4 million (US$2.5 million) in Q2 2023 from RMB31.1 million in Q2 2022, with revenues from paid content down by 52.9%[4] - Total revenues for the three months ended June 30, 2023, were RMB 180,207, a decrease of 6.0% compared to RMB 191,639 for the same period in 2022[23] - Net advertising revenues for the three months ended June 30, 2023, were RMB 161,807, an increase of 0.8% from RMB 160,478 in the same period last year[23] - Paid service revenues for the three months ended June 30, 2023, were RMB 18,400, a decrease of 41.0% from RMB 31,161 in the same period last year[23] Profitability - Gross profit increased by 12.7% to RMB55.9 million (US$7.7 million) in Q2 2023, with a gross margin of 31.0%, up from 25.9% in Q2 2022[5] - Gross profit for the three months ended June 30, 2023, was RMB 55,937, representing a significant increase of 12.5% compared to RMB 49,636 for the same period in 2022[23] - The company reported a gross profit margin of 31.0% for the three months ended June 30, 2023, compared to 25.9% for the same period in 2022[25] - Net loss attributable to Phoenix New Media Limited was RMB31.3 million (US$4.3 million) in Q2 2023, compared to RMB95.8 million in Q2 2022, resulting in a net margin of negative 17.4%[9] - The net loss for the three months ended June 30, 2023, was RMB 31,662, a decrease of 50.0% compared to a net loss of RMB 104,794 for the same period in 2022[23] - Non-GAAP net loss attributable to Phoenix New Media Limited was RMB29.7 million (US$4.1 million) in Q2 2023, compared to RMB87.1 million in Q2 2022, with a non-GAAP net margin of negative 16.5%[10] Operating Expenses - Total operating expenses decreased by 36.6% to RMB91.6 million (US$12.6 million) in Q2 2023, leading to a narrowed loss from operations of RMB35.7 million (US$4.9 million)[7] - Operating expenses decreased to RMB 91,610 for the three months ended June 30, 2023, down from RMB 144,416 in the same period last year, reflecting a reduction of 36.5%[23] Cash and Assets - As of June 30, 2023, the Company had cash and cash equivalents totaling RMB1.08 billion (US$149.0 million)[12] - As of June 30, 2023, total assets decreased to RMB 1,823,078 from RMB 2,030,824 as of December 31, 2022, representing a decline of approximately 10.2%[21] - Current assets decreased to RMB 1,493,473 from RMB 1,661,651, a reduction of about 10.1%[21] - Cash and cash equivalents increased to RMB 145,798 from RMB 95,982, showing a growth of approximately 52%[21] - Total liabilities decreased to RMB 639,065 from RMB 765,601, a decline of about 16.5%[21] - Shareholders' equity decreased to RMB 1,184,013 from RMB 1,265,223, reflecting a decrease of approximately 6.4%[21] - The accumulated deficit increased from RMB (411,074) to RMB (499,988), indicating a worsening of approximately 21.5%[21] - Accounts receivable, net decreased to RMB 309,007 from RMB 428,587, a decline of about 28%[21] - Operating lease liabilities decreased to RMB 59,358 from RMB 80,947, a reduction of approximately 26.7%[21] - Non-current assets decreased to RMB 329,605 from RMB 369,173, a decline of about 10.7%[21] Future Outlook - For Q3 2023, the Company expects total revenues to be between RMB158.5 million and RMB178.5 million, with net advertising revenues projected between RMB148.7 million and RMB163.7 million[13] - The Company aims to enhance monetization efficiency and improve its bottom line while solidifying its leadership position in the media industry[2]