Core Insights - The value of AI technology lies in its ability to transform the daily lives of ordinary people rather than merely achieving high rankings in various lists [1] - Generative AI is fundamentally reshaping the underlying logic of the smart terminal industry, with 60% of users integrating AI into their daily activities and 83% acknowledging its efficiency improvements [1] Group 1: AI Strategy and Applications - OPPO's AI strategy focuses on a "1+3" core application scenario, where "1" represents a system-level smart experience and "3" corresponds to imaging, productivity, and entertainment scenarios [1] - The company aims to transition smart terminals from being "efficiency tools" to "highly efficient personalized smart assistants" through technological innovation [1] Group 2: Technical Innovations - OPPO has developed an AI acceleration algorithm framework called AI Boost, which is integrated into its self-developed chip performance solution "Tide Engine" to enhance AI operation efficiency [2] - The collaboration with chip manufacturers has led to over 8 times decoding acceleration on the terminal side, achieving peak output speeds of over 200 tokens per second for 3B models [2] Group 3: AI Features and User Experience - OPPO has introduced various AI functionalities, including AI de-reflection, AI motion blur removal, and AI ultra-clear pixel enhancements in imaging [4] - In productivity, features such as AI article summarization, AI document processing, and AI recording summaries have been implemented [4] - For entertainment scenarios, OPPO supports AI to execute tasks like ordering food through voice commands, enhancing user interaction and service personalization [4]

Financial Data and Key Metrics Changes - Total operating revenue for the first quarter was $145 million, with total digital revenue growing 5% year over year, driven by a 14% increase in both digital subscription revenue and Amplify Digital revenue [14][18] - Digital revenue has grown more than 17% annually since FY 2021, translating to a 13% annual growth in digital gross margin, with a digital margin of 70% [14][15] - Digital subscription units increased by 8%, totaling 774,000 [26] Business Line Data and Key Metrics Changes - Digital subscription revenue grew 14% year over year, continuing to lead the company's growth [8][14] - Amplify Digital Agency revenue has significantly outpaced industry peers, growing 33% annually for the past three years [7] Market Data and Key Metrics Changes - Total digital revenue reached $320 million on a trailing twelve-month basis, including $102 million from Amplify Digital Agency [7] - The company is well-positioned to leverage AI partnerships to enhance digital revenue growth in the upcoming quarters [15][17] Company Strategy and Development Direction - The company is focused on digital transformation, leveraging AI to enhance customer engagement and advertising opportunities [6][10] - The three-pillar growth strategy aims to achieve total digital revenue of over $450 million by 2028, with continued growth in digital subscription revenue and new AI revenue opportunities [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for FY 2025, citing cost management initiatives and growth from core digital businesses [25][27] - The company expects total digital revenue growth in the range of 7% to 10% and adjusted EBITDA to grow in the low single digits [18] Other Important Information - The company has identified $40 million in annual cost reductions to be executed by the end of the second quarter [16][27] - Over $5 million in asset sales were closed in the first quarter, with an additional $25 million of non-core assets identified for monetization [17] Q&A Session Summary Question: Plans to monetize AI library and value proposition for advertising customers - Management is evaluating the best return for their content library and is focused on the AI Boost program to provide advertisers with enhanced visibility in the digital marketplace [22][23] Question: Information on cost initiatives and confidence in digital revenue growth - Management highlighted three factors for confidence: growth from core digital businesses, acceleration from AI initiatives, and identified cost reductions [25][27]