Financial Data and Key Metrics Changes - For Q4 2024, total group revenue was RMB2.64 billion, down 12% year-over-year. Adjusted operating income was RMB280 million, with a margin of 10.6% [9][51]. - For fiscal 2024, total group revenue was RMB10.6 billion, compared to RMB12 billion in the previous year. Adjusted operating income was RMB1.173 billion with a margin of 16.3% [12][13]. Business Line Data and Key Metrics Changes - Revenue from the Momo app and standalone new apps totaled RMB2.42 billion, down 11% year-over-year, with Momo app revenue decreasing by 18% [10][13]. - Tantan's Q4 revenue totaled RMB213 million, down 22% year-over-year due to a decrease in paying users [12][34]. - Revenue from value-added services (VAS), excluding Tantan, totaled RMB1.2 billion in Q4, down 5% year-over-year [26][55]. Market Data and Key Metrics Changes - The overseas business maintained robust growth, contributing significantly to the group's financial standing [8]. - The Momo app had 5.7 million paying users, a sequential decrease of 1.2 million due to cost reduction strategies [22]. Company Strategy and Development Direction - The company aims to maintain the productivity of the Momo app while focusing on improving user experience and optimizing operational efficiency [15][48]. - For Tantan, the strategic goal is to reduce costs and improve efficiency while exploring dating experiences suitable for agents [48][110]. - The company plans to increase investments in overseas markets, particularly in the MENA region, to drive growth and innovation [41][104]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the macroeconomic environment and regulatory changes but expressed confidence in the resilience of the Momo platform [80][83]. - The company expects a revenue decline in Q1 2025 but anticipates a slight rebound in Q2, depending on macroeconomic conditions [68][86]. Other Important Information - The Board approved a special cash dividend of $0.30 per ADS, totaling approximately $50 million, marking the seventh consecutive year of cash dividends [49]. - The company is focusing on optimizing headcount and improving marketing efficiency to absorb top-line pressure while reallocating resources to overseas business [88]. Q&A Session All Questions and Answers Question: What caused the significant drop in paying users for the Momo app? - Management indicated that the drop was due to a strategic shift away from acquiring low-return paying users, which has historically pressured profitability [74][76]. Question: What adjustments have been made to live streaming and VAS products? - Management stated that after improving Momo's content, no further changes to reduce earnings are planned, focusing instead on adding engaging features [77]. Question: What is the outlook for Tantan's revenue and profit in 2025? - Management expects a revenue decline of 20% to 30% year-over-year for Tantan in 2025, but profitability is anticipated to improve due to better ROI from reduced marketing spend [120].

Financial Data and Key Metrics Changes - For Q4 2024, total group revenue was RMB 2.64 billion, down 12% year over year [9] - Adjusted operating income was RMB 280 million with a margin of 10.6% [9] - For fiscal 2024, total revenue was RMB 10.6 billion compared to RMB 12 billion in the previous year [11] Business Line Data and Key Metrics Changes - Revenue from the Momo app and standalone new apps totaled RMB 9.7 billion, down 11% year over year [12] - Tantan's Q4 revenue was RMB 213 million, down 22% year over year due to a decrease in paying users [11] - Revenue from value-added services excluding Tantan totaled RMB 4.18 billion, down 6% year over year [20] Market Data and Key Metrics Changes - The overseas business maintained robust growth, contributing significantly to the group's financials [6] - Revenue from standalone new apps grew 40% year over year, driven by overseas expansion [12] - Tantan's MAU declined by 10% sequentially to 10.8 million in September [23] Company Strategy and Development Direction - The company aims to maintain the productivity of the Momo app while focusing on improving user experience and optimizing operational efficiency [13][14] - For Tantan, the strategy is to enhance the dating experience and build a sustainable business model while reducing user acquisition costs [78][80] - The company plans to increase investments in overseas markets and new product initiatives to drive growth [28][30] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges from the macroeconomic environment and regulatory changes but expressed confidence in the resilience of the Momo platform [56][58] - The outlook for Q1 2025 anticipates a revenue decline of 6.3% to 2.4% year over year, with expectations of a slight rebound in Q2 [45][61] - Management expects Tantan's revenue to decline by 20% in 2025 due to reduced marketing spend and operational adjustments [86] Other Important Information - The Board approved a special cash dividend of USD 0.3 per ADS, totaling approximately USD 15 million [32] - The company emphasized a flexible approach to capital allocation, preferring to invest in growth opportunities rather than committing to a fixed dividend policy [92] Q&A Session Summary Question: What caused the significant drop in paying users for Momo? - Management indicated that the drop was due to a strategic shift away from acquiring low-return paying users, which was necessary to improve profitability [52][53] Question: What are the adjustments to live streaming and value-added services? - Management stated that no major changes would be made to reduce earnings, focusing instead on enhancing user engagement and adding fun features [54] Question: What is the outlook for Tantan's revenue and profit in 2025? - Management expects a revenue decline of 20% to 30% for Tantan in 2025 due to reduced marketing spend and operational adjustments [86] Question: How does the company view its overseas business growth? - The overseas business is expected to grow significantly, with revenue projected to increase from around RMB 1 billion in 2024 to between RMB 1.7 billion to RMB 2 billion in 2025 [73] Question: What is the company's approach to capital returns? - Management prefers flexibility in capital allocation, indicating that a rigid dividend policy is not being considered, as they aim to optimize returns through various means [92]