Financial Data and Key Metrics Changes - Total net revenues for the third quarter reached approximately RMB 1.7 billion, marking a year-over-year growth of around 10% [3][12] - Non-GAAP operating profit was approximately RMB 6.3 million, showing a significant improvement compared to the same period last year [3][12] - Live streaming revenues increased by 3% year-over-year to RMB 1.16 billion, while game-related services, advertising, and other revenues grew around 30% year-over-year to RMB 532 million, accounting for 31.5% of total net revenues [12][13] Business Line Data and Key Metrics Changes - Game-related services, advertising, and other revenues reached RMB 532 million, driven by strong growth in in-game item sales, which grew over 200% year-over-year [5][12] - Live streaming revenues resumed growth for the first time since Q3 2021, with a more balanced content mix and solid gains in outdoor live streaming [7][12] Market Data and Key Metrics Changes - The platform maintained a stable user base with total MAUs around 162 million, and the streamer ecosystem expanded its influence, reaching over 100 million users across other platforms [4][29] - The company is deepening its presence in key geographic markets, focusing on user experience and content ecosystem to enhance engagement and retention [9] Company Strategy and Development Direction - The company aims to diversify into game publishing, with the upcoming launch of "Goose Goose Duck Mobile" as a key step in this strategy [6][30] - Future focus includes enriching item categories, expanding game partnerships, and improving the overall purchase experience for users [22][30] - The company plans to enhance monetization efficiency and product experience while steadily expanding internationally [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining robust growth momentum in in-game item sales and expects overall revenue growth to accelerate in 2026 [5][26] - Live streaming revenues are expected to remain stable, while non-live streaming businesses should continue to grow strongly due to deeper game collaborations [26] Other Important Information - Cost of revenues increased by 10% to RMB 1.46 billion, primarily due to increased revenue sharing fees and content costs [14] - The company achieved a positive net income for the quarter with non-GAAP net income of RMB 36 million, despite a decrease in interest income [16] Q&A Session Summary Question: Updates on in-game item sales business and future outlook - In-game item sales revenue grew over 200% year-over-year, supported by strong live streaming ecosystem and deeper partnerships with flagship titles [21][22] Question: Overall revenue growth and future expectations - Live streaming revenue has returned to growth, while non-live streaming businesses are expected to continue growing at a strong pace, driven by in-game item sales [26] Question: Strategy and outlook for Goose Goose Duck Mobile and game publishing - The mobile version of Goose Goose Duck is the first full-fledged publishing effort, with pre-registrations surpassing 10 million [30] Question: Collaboration with Delta Force and ongoing partnerships - The company is building a vibrant community engagement and e-sports tournament ecosystem around Delta Force, with successful events planned [34] Question: Financial impact of new business and profitability trends - Gross profit grew over RMB 23 million, leading to further improvement at the operating level, with expectations for gradual margin improvement over time [37]

Financial Data and Key Metrics Changes - Total net revenues for 2024 were RMB6.08 billion, down from RMB6.99 billion in the prior year [37] - Non-GAAP net income reached RMB269 million for 2024, up from RMB119 million in the prior year, with a non-GAAP net margin of 4.4% compared to 1.7% [38] - Non-GAAP gross margin improved to 30.6% for 2024, up from 11.9% in the prior year [38] - For Q4 2024, total net revenues were approximately RMB1.5 billion, with live streaming revenues at RMB1.12 billion [29][32] Business Line Data and Key Metrics Changes - Revenues from game-related services, advertising, and other segments increased by 145.4% year-over-year to RMB1.33 billion for the full year [7] - In Q4, revenues from game-related services, advertising, and others increased by 99.4% year-over-year to RMB372 million [9] - Live streaming revenues for 2024 were RMB4.75 billion, down from RMB6.45 billion in the prior year [37] Market Data and Key Metrics Changes - The number of paying users in Q4 rose to 4.5 million year-over-year, indicating engagement across the core user base [29] - The company captured over half of the market share for the industry's top-tier in-house produced e-sports events in 2024 [19] Company Strategy and Development Direction - The company is focused on advancing its commercialization transformation, with non-live streaming business revenue accounting for over 20% of total revenue for the full year [56] - Plans to replicate the successful self-organized tournament model to include more popular e-sports titles in 2025 [21] - The company aims to explore new technologies and deepen their applications to improve content creator and user experience [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external challenges in 2024 but highlighted solid performance driven by strategic transformation and new game launches [7] - The company expects live streaming revenue to seasonally decline in Q1 2025 due to typical low seasonality in the industry [68] - Future profitability will depend on improvements in operating results and cost control measures [72] Other Important Information - The company introduced a dividend plan for 2025 to 2027, expecting to distribute a total of no less than $400 million to shareholders [39] - As of December 31, 2024, the company had cash and cash equivalents totaling RMB6.73 billion [37] Q&A Session Summary Question: What factors do we consider when we make shareholder return strategies? - The company emphasized enhancing shareholder returns through a dividend plan distributing no less than $400 million over the next three years, with a cash dividend of $1.47 per ADS for 2025 [44][46] Question: Can management share expectations for the other revenue business growth? - Revenues from game-related services nearly doubled year-over-year, with ongoing enhancements in operational excellence and collaborations with game developers expected to drive future growth [51][56] Question: How does AI impact product monetization strategy and cost structure? - The company is integrating AI solutions to enhance user experience and operational efficiency, with early testing showing increased viewer activity and revenue from interactions [60][64] Question: Can you discuss live streaming revenue trends and overall profitability margin trends? - Live streaming revenue remains weak due to macroeconomic factors, but gross margin improved to 11.4% in Q4, with expectations for future profitability influenced by revenue scale and cost control [68][70]