Financial Data and Key Metrics Changes - Total group revenue for Q2 2025 was RMB 2.62 billion, down 3% year-over-year but up 4% quarter-over-quarter [19] - Domestic revenue reached RMB 2.18 billion, down 11% year-over-year, while overseas revenue was RMB 442 million, up 17.3% year-over-year [4][19] - Adjusted operating income was RMB 448 million, down 6% from Q2 last year, with a margin of 17% [4][23] - Non-GAAP net loss was RMB 96 million compared to RMB 449.2 million from the same period in 2024 [19] Business Line Data and Key Metrics Changes - MoMo app had 3.5 million paying users, a sequential decrease of 0.6 million due to user acquisition investment cuts [8] - MoMo VAS revenue reached RMB 1.85 billion, down 11% year-over-year, primarily due to soft spending sentiment among high-paying users [9] - Tang Tang's MAU reached 10.2 million, down 5% from last quarter, with 720,000 paying users, a decrease of 80,000 from Q1 [11] - Revenue from Tang Tang's onshore business in Q2 was RMB 116 million, down 18% year-over-year [12] Market Data and Key Metrics Changes - Overseas revenue accounted for 17% of total group revenue compared to 10% in the same period last year [15] - Overseas revenue reached RMB 442 million, up 17.3% year-over-year and 7% quarter-over-quarter, driven by audio and video-based social products in the MENA region [15] Company Strategy and Development Direction - Key priorities for 2025 include maintaining MoMo's productivity, improving Tang Tang's core dating experience, and deepening overseas market presence [4] - The company aims to balance growth and profitability, especially in overseas markets, while being cautious about user acquisition costs [16][17] Management's Comments on Operating Environment and Future Outlook - Management expects MoMo's overall revenue and profit in the second half of the year to be relatively controllable, despite potential pressures from new tax regulations [34] - The company anticipates a year-over-year growth of around 60% for overseas revenue in Q3, with a focus on optimizing user acquisition costs [49] Other Important Information - The company accrued an additional withholding income tax of RMB 547.9 million related to dividends, which is a one-off item and does not reflect normal business operations [19][24] - Cash reserves decreased to RMB 12.39 billion as of June 30, 2025, primarily due to loan repayments and cash dividends paid to shareholders [25][26] Q&A Session Summary Question: Can management discuss the second half outlook for MoMo and the strategy on AI application? - Management indicated that MoMo's situation in the second half should be controllable, with a focus on enhancing user experience through AI tools [32][36] Question: Can management elaborate on the measures taken to restructure Tang Tang's membership package? - Management explained that user classification and tailored monetization strategies were implemented to mitigate revenue pressure from product upgrades [41][42] Question: What are management's views on the sustainability of overseas revenue growth? - Management expressed confidence in the sustainability of overseas growth, expecting a moderation in growth rates but continued strong performance from emerging brands [47][49] Question: Will there be changes in profit margin due to the withholding tax issue? - Management noted potential fluctuations in revenue and gross margins due to tax scrutiny but emphasized that overall effects should remain manageable [53][55]