Financial Data and Key Metrics Changes - Total net revenues for Q1 2025 were RMB 1.51 billion, stabilizing year over year and growing quarter over quarter [5][21] - Live streaming revenues decreased to RMB 1.14 billion from RMB 1.26 billion year over year, primarily due to macroeconomic impacts [23] - Game related services, advertising, and other revenues increased to RMB 370 million, a 52.1% year over year growth [5][24] - Gross margin for Q1 was 12.5%, down from 14.7% year over year, attributed to increased revenue sharing fees and content costs [25][48] - Non-GAAP net income was RMB 24 million, down from RMB 92 million year over year [27] Business Line Data and Key Metrics Changes - Game related services accounted for 24.6% of total net revenues, up from 16.2% in the same period last year [6] - Total gross receipts from game distribution more than doubled year over year, with significant increases in titles like QQ Speed Mobile and League of Legends Mobile [8][34] - In-game item sales reached record GMV, benefiting from events like the Spring Festival [9][35] - Advertising revenue declined due to fewer tournaments and high base effects from last year [11][24] Market Data and Key Metrics Changes - The number of paying users remained flat at 4.4 million year over year [21] - Overseas game related services showed multifold revenue growth in Q1, indicating strong potential for expansion [12][39] Company Strategy and Development Direction - The company is focusing on deepening collaborations with game companies and enhancing its live streaming content ecosystem [6][12] - Plans to explore exclusive distribution models and enhance overseas market capabilities are in place [11][37] - The integration of AI capabilities into esports experiences is a key strategic initiative [17][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence that total revenue has bottomed out and expects growth in game related services and advertising [42] - The company is closely monitoring geopolitical risks and potential impacts on capital markets, while exploring opportunities in other markets [44] - Future profit trends will rely on operational improvements and increased investment in self-produced content [49] Other Important Information - The company repurchased 21 million shares for a total of USD 69.8 million as part of its share repurchase program [28] Q&A Session Summary Question: Business outlook and prospects for game related revenues - Management highlighted a 52.1% year over year increase in game related services, driven by deeper engagement with existing games and successful events [33][34] Question: Second quarter and full year revenue outlook - Management expects total revenue to grow this year, with stabilization in live streaming revenues and growth in game related services [42] Question: Future profit trend estimation - Management indicated that future profit performance will depend on operational results and improvements in cost structures, with expectations for notable improvement in non-GAAP operating results [49]