Group 1: Financial Performance - The company achieved a revenue of 717 million in Q2, with an adjusted net profit of 91.3 million, and a GAAP net profit of 72.48 million, maintaining a gross margin of 62.5% [1][2] - It has been profitable for three consecutive quarters, indicating an improvement in operational quality with reduced R&D, marketing, and management expenses [2] - The cash flow position is strong, with 4.8 billion in cash on hand and a share buyback of 31.1 million shares, reflecting management's confidence in future prospects [3] Group 2: User Engagement and Revenue Structure - The primary revenue source remains paid reading, contributing over 400 million, while advertising and vocational education account for 220 million and 60 million, respectively [2] - Although the number of subscription members decreased to 13.2 million from 14.2 million, the average daily active user engagement increased to 38 minutes, a 17.6% year-on-year rise [4][5] - The ARPU for paid members is increasing, indicating that while the user base may be shrinking, the remaining users are contributing more value [5] Group 3: AI Integration and Future Prospects - The monthly active users for the "Zhihu Direct Answer" feature have surpassed 10 million, marking a significant step towards instant Q&A capabilities [9] - AI-related content production has increased by 46% year-on-year, showing a deepening integration of AI within the community ecosystem [10] - The company is positioned as a leading platform for AI discussions in China, with a large network of expert contributors, which could lead to differentiated revenue opportunities [13] Group 4: Competitive Landscape and Strategic Choices - Compared to Quora, which has focused on an AI platform, Zhihu is enhancing its existing community by integrating AI to improve its Q&A system [15][17] - The company faces a choice between maintaining a profitable niche community or evolving into a knowledge hub for the AI era, similar to Reddit's approach of content monetization through data licensing [19][20] - The future direction remains uncertain, but the company has the financial stability and time to explore various strategic options [21]