Financial Data and Key Metrics Changes - In Q2 2025, total revenue increased by 18.5% year over year to $1.9 billion, driven by an 8.8% capacity growth and higher occupancy [18][21] - Adjusted gross margin rose by 19.2% year over year to $1.2 billion, resulting in a net yield of $607, which is 7.8% higher than in 2024 [20][21] - Adjusted EBITDA for Q2 was $633 million, a 28.5% increase compared to the same period last year [20] Business Line Data and Key Metrics Changes - In the river segment, capacity PCDs increased by 7.5% year over year, with occupancy at 95.6% and adjusted gross margin growing by 15.8% [24] - For the ocean segment, capacity PCDs increased by 11.2% year over year, with occupancy at 95.2% and adjusted gross margin rising by 24.9% [25] Market Data and Key Metrics Changes - As of August 10, 2025, 96% of the 2025 capacity for core products was booked, with advanced bookings of $5.6 billion, 21% higher than the previous year [29][30] - For 2026, 55% of capacity was already booked, with advanced bookings at $3.9 billion, a 13% increase compared to the same point in 2025 [30] Company Strategy and Development Direction - The company is focused on expanding its fleet and strengthening its global presence, with new ships added to both river and ocean segments [8][9] - The strategy emphasizes selective expansion into culturally rich regions, such as India and Egypt, to enhance guest experiences [13][15] Management's Comments on Operating Environment and Future Outlook - Management noted sustained strength in demand, with a strong start for 2026 bookings, reflecting consumer engagement [41] - The company is committed to optimizing its cost structure while investing in teams and marketing to support future growth [20][43] Other Important Information - The company completed a secondary offering of 30.5 million shares at $44.2 per share, increasing institutional float and diversifying the shareholder base [10][16] - As of June 30, 2025, total cash and cash equivalents were $2.6 billion, with net debt at $3.2 billion and net leverage at 2.1 times [26] Q&A Session Summary Question: Can you walk us through booking progress for 2026? - Management reported strong demand with 55% of 2026 bookings sold, indicating consistent consumer behavior [40] Question: Is the increase in marketing spend broad-based? - The increase in marketing spend was a strategic response to softening demand, aimed at stimulating interest without discounting [43] Question: How do you see pricing optimization for 2026? - Management indicated a careful balance in pricing strategy, aiming for mid-single-digit yield growth while ensuring good value for guests [50][51] Question: What are the expectations for expense growth? - Management noted that quarterly variances in expenses are expected, but overall revenue growth has outpaced expense growth [67] Question: How does capacity growth impact pricing growth? - Management clarified that growth in ocean capacity does not negatively impact pricing, as demand remains strong [82] Question: What is the outlook for capital returns to shareholders? - Currently, the company is not contemplating dividends or share buybacks but remains open to capital returns in the long term [77][106]

Financial Data and Key Metrics Changes - Amur Sports reported a 23% sales growth in Q2, or 22% excluding currency impact, with adjusted operating margin expanding by 260 basis points [7][31][34] - Adjusted net income increased to $36 million from $25 million year-over-year, with adjusted diluted EPS rising to $0.06 from $0.05 [35][36] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased by 23% to $509 million, driven by a 31% D2C expansion [36][37] - Outdoor Performance segment saw revenues rise by 35% to $414 million, with D2C growing 63% [39][41] - Ball and Racket revenue increased by 11% to $314 million, supported by strong performance in soft goods and racket sports [43][45] Market Data and Key Metrics Changes - Asia Pacific led regional growth with a 45% increase, followed by China at 42%, EMEA at 18%, and the Americas at 6% [32][34] - The Americas' growth was impacted by a normalization in ball and racket sales and a shift in wholesale shipments [32] Company Strategy and Development Direction - The company aims to optimize its retail footprint rather than pursue aggressive store expansion, focusing on high-quality locations [13][14] - Plans to open approximately 25 net new stores globally in 2025, with a significant focus on North America [13][14] - The company is confident in its ability to manage through tariff scenarios due to its premium brands and pricing power [8][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro uncertainties and higher tariffs, emphasizing the strength of their brand portfolio [6][29] - The company raised its full-year revenue growth guidance from 15%-17% to 20%-21% due to strong Q2 performance [49][50] Other Important Information - The company received $19 million in government grants, benefiting adjusted operating margin by approximately 150 basis points [34] - The company ended the quarter with $640 million in net debt, maintaining a healthy balance sheet [45][46] Q&A Session Summary Question: Can you elaborate on the momentum in the third quarter and the growth drivers for Solomon? - Management noted strong Q2 results and continued momentum into Q3, particularly for Solomon footwear, driven by new product introductions and a unique outdoor sneaker category [57][58] Question: What are the next growth levers for the Solomon brand? - Management highlighted the strong growth in China and plans to open additional stores in the U.S., focusing on building a solid foundation for the brand [64][66] Question: What pricing strategies are being implemented to mitigate tariffs? - Management indicated that while some price increases have been implemented for Wilson, they have managed to mitigate tariff impacts for other brands without raising prices [71][72] Question: How are full-price stores performing compared to outlet stores? - Management reported robust performance in full-price stores, with a mid-single-digit drag from outlet sales, indicating a shift towards a healthier full-price mix [75][76] Question: What has driven the recent growth in the women's business at Arcterix? - Management reported over 30% revenue growth in the women's segment, with specific models performing exceptionally well [84][85] Question: What are the key drivers behind Solomon's recent growth? - Management attributed Solomon's growth to a unique product proposition and a strong business model in China, with plans for further expansion in the U.S. [87][90]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of €8.6 billion, growing 8.4% reported and 4.8% organic, in line with guidance [38] - Adjusted EPS was €1.26, exceeding the midpoint of guidance by €0.03 [42] - Adjusted gross margin was 65.1%, down 80 basis points year over year, but stable compared to Q4 [38][39] Business Line Data and Key Metrics Changes - Cardiovascular grew 7% this quarter, with cardiac ablation solutions achieving nearly 50% growth [20][21] - Neuroscience grew 3%, with high single-digit growth in neurosurgery and neuromodulation [10][27] - MedSurg grew 2%, with advanced energy showing high single-digit growth [31] - Diabetes grew 8%, driven by the strength of the 780G system and Simplera Sync Sensor in international markets [34] Market Data and Key Metrics Changes - The U.S. market showed slower growth in certain segments, particularly in diabetes and pelvic health, while international markets performed better [61] - CAS growth was particularly strong in the U.S. and Japan, with low 70s growth in the U.S. and low 30s growth internationally [20][21] Company Strategy and Development Direction - The company is focused on accelerating growth through innovation in med tech and has raised its EPS guidance for the full year [6][7] - A planned separation of the diabetes business is expected to sharpen focus on core high-growth opportunities [17][37] - New board committees have been established to enhance focus on growth and operational efficiency [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate growth throughout fiscal 2026, citing strong demand and a robust product pipeline [6][17] - The company anticipates significant growth from the cardiac ablation solutions and renal denervation segments [12][13] - Management highlighted the importance of operational efficiency and innovation to drive long-term shareholder value [18][46] Other Important Information - The company expects to finalize the national coverage determination for the simplicity procedure for hypertension by October 8 [25] - The company is investing significantly in R&D, with a 7.7% increase in adjusted R&D spending [40] Q&A Session Summary Question: Update on CAS growth and its impact on U.S. growth - Management confirmed confidence in CAS growth, noting strong demand and utilization, and expects it to positively impact U.S. growth in the future [56][60] Question: Impact of new board committees on governance and capital allocation - Management explained that the new committees will provide focused oversight on growth and operational performance, enhancing communication with management [70][72] Question: Commitment to CAS annual sales target - Management reiterated commitment to the $2 billion annual sales target for CAS, indicating strong momentum and confidence in achieving this goal [76][78] Question: Discussion on capital allocation and EPS growth - Management emphasized a renewed focus on value creation, including potential M&A opportunities and increased investment in growth drivers [81][86] Question: Overall portfolio growth expectations - Management indicated that while significant growth drivers are emerging, the overall business will continue to improve, with a focus on maintaining operational efficiency and EPS growth [95][100]

Financial Data and Key Metrics Changes - Net revenues for Q2 2025 were $36.3 million, down 39.3% from $59.8 million in Q2 2024, primarily due to lower sales of auto vehicles and EV products [16] - Cost of goods sold decreased to $19.9 million, a 51.3% decline from $40.9 million in the same period of 2024, reflecting the decrease in sales [17] - Gross profit was $16.4 million, compared to $19 million in Q2 2024, with gross margin improving to 45.2%, up from 31.7% last year [17] - Total operating expenses were $18.3 million, down 21.4% from $23.3 million in Q2 2024 [17] - Net income was $1.7 million, compared to $2.4 million in Q2 2024, with basic and diluted net income per share at $0.02, down from $0.03 [20] Business Line Data and Key Metrics Changes - The focus on inventory management within retail channels led to a gross margin improvement to 45.2%, up 13.5 percentage points from 31.7% in the same period of 2024 [8] - The dealer to retail sales mix improved from 1:9 to 2:8 as of June 2025, indicating a more diversified channel structure [10] - Research and development expenses increased by 48.5% to $2.5 million, mainly due to a new battery product R&D project [18] Market Data and Key Metrics Changes - The company has reinforced partnerships with major retailers, including Lowe's, and expanded its dealer network to 50 retail outlets [9] - The company is exploring high-margin direct-to-consumer channels and e-commerce platforms to enhance market share and profitability [11] Company Strategy and Development Direction - The company is transitioning from a conventional manufacturing enterprise to a holding platform focused on intelligent equipment manufacturing [7] - Kandi Technologies is pursuing a dual engine strategy, balancing stable cash flow businesses with growth incubation businesses [14] - The company aims to maintain competitive edge and create long-term value for shareholders through disciplined execution and continuous innovation [14] Management's Comments on Operating Environment and Future Outlook - The global microeconomic landscape remains uncertain, presenting challenges for the business [6] - Despite short-term volatility, the company believes its focus on optimized operations and technological innovation positions it for long-term development [14] - The company is confident in its strategic growth initiatives and ongoing business expansions, supported by a strong balance sheet with $257 million in cash and equivalents [13] Other Important Information - The company has established itself as a pioneer in battery swapping technology and secured its first order to support CATL's rollout of 10,000 battery swapping stations [12] Q&A Session Summary - No specific questions or answers were recorded in the provided content, and the call concluded without further inquiries [22][23]

Financial Data and Key Metrics Changes - Amur Sports reported a 23% sales growth in Q2 2025, or 22% excluding currency impact, with an adjusted operating margin increase of 260 basis points [6][31][34] - Adjusted net income for Q2 was $36 million, compared to $25 million in the prior year, with adjusted diluted earnings per share rising to $0.06 from $0.05 [35][36] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased by 23% to $509 million, driven by a 31% expansion in direct-to-consumer (D2C) sales [36][37] - Outdoor Performance segment saw revenues rise by 35% to $414 million, with D2C growing 63% [39] - Ball and Racket segment revenue increased by 11% to $314 million, supported by strong performance in racket sports and soft goods [42] Market Data and Key Metrics Changes - Asia Pacific region led growth with a 45% increase, followed by China at 42%, EMEA at 18%, and The Americas at 6% [32] - The Americas' growth deceleration was attributed to normalizing growth in the ball and racket segment and a tougher comparison due to shipment shifts [32] Company Strategy and Development Direction - The company aims to optimize its retail footprint in Greater China, focusing on high-quality locations rather than rapid expansion [13][14] - Amur Sports is confident in its ability to manage through tariff scenarios due to its premium brands and pricing power [7][29] - The company plans to open approximately 25 net new stores globally in 2025, with a focus on North America [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong brand momentum and a unique portfolio of premium brands [5][8] - The company raised its full-year revenue growth guidance from 15%-17% to 20%-21%, reflecting strong Q2 performance and ongoing momentum [49][50] Other Important Information - The company received $19 million in government grants, benefiting its adjusted operating margin by approximately 150 basis points in Q2 [34] - Amur Sports ended the quarter with $640 million in net debt, maintaining a healthy balance sheet to navigate external uncertainties [45] Q&A Session Summary Question: Can you elaborate on the momentum in the third quarter and the growth drivers for Solomon? - Management noted strong Q2 results and continued momentum into Q3, particularly for Solomon footwear, driven by new product introductions and a unique outdoor sneaker category [56][57] Question: What are the next growth levers for the Solomon brand? - Management highlighted the strong growth pattern in Solomon, particularly in China and Asia Pacific, and plans to open additional stores in the U.S. [62][63] Question: What type of price increases are being implemented to mitigate tariffs? - Management indicated that while Wilson has seen approximately 10% price increases, Solomon and Arcterix have not yet needed to raise prices due to their pricing flexibility [69][70] Question: How are full-price stores performing compared to outlet stores? - Full-price stores are performing robustly, with a mid-single-digit drag from outlet sales declines, indicating a shift towards a healthier full-price business [73][74] Question: What is the outlook for the women's business at Arcterix? - The women's business saw over 30% revenue growth in Q2, with specific models performing exceptionally well, indicating a strong product strategy [84][85]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved record high performance with deliveries reaching 103,181 units, a 242% increase year over year [7] - Total revenues were RMB 18.27 billion, an increase of 125.3% year over year and 15.6% quarter over quarter [22] - Vehicle sales revenue was RMB 16.88 billion, up 147.6% year over year and 17.5% quarter over quarter [22] - Vehicle gross margin increased to 14.3%, up 3.8 percentage points quarter over quarter, contributing to an overall gross margin of 17.3% [8][23] - Net loss narrowed to RMB 480 million, compared to RMB 1.28 billion year over year [26] Business Line Data and Key Metrics Changes - The Mona M03 MAX became a bestseller, accounting for over 80% of total Mona M03 sales [7] - Free cash flow in Q2 exceeded RMB 2 billion, with total cash on hand surpassing RMB 47.5 billion [8] - R&D expenses increased to RMB 2.21 billion, a 50.4% year over year increase [24] - SG&A expenses were RMB 2.17 billion, up 37.7% year over year [24] Market Data and Key Metrics Changes - Overseas deliveries exceeded 18,000 units in the first half of 2025, increasing over 200% year over year [18] - The company ranks as the best-selling Chinese NEV startup brand in 10 markets, including Norway and France [18] - Q3 delivery forecast is between 113,000 to 118,000 units, reflecting a year-over-year growth of 142.8% to 153.6% [19] Company Strategy and Development Direction - The company aims to strengthen core capabilities in technology leadership, organizational strength, commercialization, and globalization [10] - The launch of the G7 and P7 models is expected to enhance brand positioning and sales mix of high-end models [11][12] - The company plans to introduce several super electric models with advanced features, aiming for a generational lead in technology [13][14] Management's Comments on Operating Environment and Future Outlook - Management emphasized a focus on sustainable growth despite intense price competition [7] - The company is confident in leading the market at scale while advancing operational efficiency towards sustainable profitability [20] - The introduction of the one vehicle dual energy strong product cycle is expected to significantly strengthen the company's market position [20] Other Important Information - The company is preparing for mass production of L4 capable vehicles in 2026, with pilot robotaxi services launching in selected regions [16] - The introduction of the industry's first AI chip dedicated to smart cabins is expected to enhance user experience significantly [17] Q&A Session Summary Question: Brand Position and Product Pricing - Management is focusing on product layout, technology, aesthetics, and brand to increase average selling price (ASP) and improve profitability [30][34] Question: Smart Driving Technology - The company believes its Turing AI SoC provides a significant competitive advantage in smart driving technology, with expectations of leading the market by next year [36][40] Question: Cooperation with Volkswagen - The expanded collaboration with Volkswagen is expected to create significant strategic value and additional revenue streams [44][46] Question: Robotaxi Business - Management indicated plans for L4 capable vehicles and the differentiation of robotaxi models from consumer vehicles [48][50] Question: Vehicle Gross Margin Guidance - The company aims for high teens vehicle gross margin in Q4, with a focus on profitability [88][90] Question: Product Strategy and Design Focus - The company is shifting its strategy to prioritize design and aesthetics alongside technology [75][78] Question: Policy Response to Anti-Dilution Measures - Management is committed to innovation and quality while adapting to regulatory changes in the industry [80][82]

Financial Data and Key Metrics Changes - Total full year revenue reached $986 million, exceeding guidance by $11 million, while adjusted EPS was $1.54, surpassing the high end of guidance by $0.11 [13][14] - Fourth quarter net revenue was $258 million, a 1% increase sequentially but a decline from the prior year due to higher fee share from contract renewals [13][14] - Adjusted EBITDA for the fourth quarter was $71 million, translating to a margin of 27.6%, benefiting from revenue outperformance in Supply Chain Services [14] Business Line Data and Key Metrics Changes - Supply Chain Services segment performed above expectations, with gross administrative fees growing over 3% in fiscal year 2025, driven by higher contract penetration and onboarding of new members [15][16] - Performance Services segment showed sequential improvement in advisory business, although it was lower compared to the prior year as the sales funnel is being rebuilt [17] - Other supply chain services revenue grew by 17% in the co-management business and 15% in the digital supply chain business, indicating growth opportunities for fiscal year 2026 and beyond [16][17] Market Data and Key Metrics Changes - The company noted increasing financial pressures on member hospitals and health systems, leading to a demand for value-based strategic support [6][10] - The acquisition of Illumicare is expected to enhance the company's ability to deliver real-time insights and expand its addressable market [8][20] Company Strategy and Development Direction - The company is focused on helping health systems transition from short-term cost containment to structural changes that enhance operational resilience [6][10] - The acquisition of Illumicare is part of a strategy to strengthen clinical decision support capabilities and leverage AI for better healthcare outcomes [8][20] - The company anticipates a stabilization year in fiscal year 2026, with a return to growth in key financial metrics expected in fiscal year 2027 [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth, citing a robust pipeline of advisory business and strategic engagements [7][11] - The company expects free cash flow conversion in fiscal year 2026 to be in the range of 70% to 80%, with a cash tax rate anticipated to be less than 5% over the next five years [18][19] - Management highlighted the importance of addressing contract renewals and the anticipated increase in fee share to the mid-60% range in fiscal year 2026 [16][36] Other Important Information - The company completed a $200 million accelerated share repurchase program, bringing total stock repurchases to $800 million under a $1 billion authorization [14][19] - The company is winding down the Contigo Health assets, with expected revenue of $9 million and an EBITDA loss of $6 million in fiscal year 2026 [49] Q&A Session Summary Question: Changes in customer buying behavior in Supply Chain Services - Management noted no significant pull forward in buying behavior due to tariffs, with some regional increases observed [25] Question: Momentum in the advisory business - The advisory business is driven by market dynamics and the expertise of the newly hired leadership, with significant recent contract wins [26][30] Question: Cadence of admin fee renewal and growth assumptions - Management expects a gradual increase in fee share throughout fiscal year 2026, with gross administrative fees anticipated to grow around 4% [35][36] Question: Size and impact of Illumicare acquisition - Illumicare is projected to generate $8 million to $10 million in revenue for fiscal year 2026, breakeven on EBITDA, and is expected to drive future growth [48] Question: Advisory business size and growth visibility - The advisory business is estimated to be between $50 million to $100 million, with expectations of over 25% growth in fiscal year 2026 driven by recent large contracts [58][60] Question: Free cash flow guidance and TRA impact - The TRA benefit is included in free cash flow guidance, with expectations for improved cash flow in fiscal year 2026 due to the absence of the $100 million headwind [64][66] Question: Demand changes post July 4 and SaaS offerings - There remains significant interest in clinical decision support capabilities, with ongoing demand for technology that drives performance improvement [90][92]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased by 18.5% year over year to $1.9 billion, driven by increased capacity, higher occupancy, and higher revenue per passenger cruise day (PCD) [16][19] - Adjusted gross margin rose by 19.2% year over year to $1.2 billion, resulting in a net yield of $607, which is 7.8% higher than in 2024 [17][19] - Adjusted EBITDA for Q2 was $633 million, a 28.5% increase compared to the same period last year [18] - Net income improved to $439 million, an increase of almost $280 million compared to Q2 2024 [19] Business Line Data and Key Metrics Changes - In the river segment, capacity PCDs increased by 7.5% year over year, with occupancy at 95.6% and adjusted gross margin growing by 15.8% [22] - For the ocean segment, capacity PCDs increased by 11.2% year over year, with occupancy at 95.2% and adjusted gross margin rising by 24.9% [23] Market Data and Key Metrics Changes - 96% of the 2025 capacity for core products is already booked, with advanced bookings totaling $5.6 billion, which is 21% higher than the same point in 2024 [27] - For 2026, 55% of capacity is booked with $3.9 billion in advanced bookings, a 13% increase compared to the same point in 2025 [28] Company Strategy and Development Direction - The company is focused on expanding its fleet and strengthening its global presence, with new ships added to both ocean and river segments [7][8] - The strategy includes selective expansion into high-value, less-explored regions, such as India and Egypt, to enhance the guest experience [12][14] - The company aims to maintain a consistent brand experience while optimizing operational efficiencies [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for cruises, noting sustained booking strength into August 2025 [39] - The company is committed to optimizing its cost structure while investing in marketing to stimulate demand [41][62] - Management believes that the current booking trends and pricing strategies will lead to healthy revenue and EBITDA growth in 2026 [50][59] Other Important Information - The company completed a secondary offering of 30.5 million ordinary shares at $44.2 per share, increasing institutional float and diversifying the shareholder base [9][15] - As of June 30, 2025, total cash and cash equivalents were $2.6 billion, with net debt at $3.2 billion and net leverage at 2.1 times [23][24] Q&A Session Summary Question: Booking progress for 2026 - Management noted strong demand and booking strength continuing into August, with 55% of 2026 capacity sold [39] Question: Marketing spend increase - The increase in marketing spend was a response to softening demand, aimed at stimulating interest without discounting prices [41] Question: Pricing optimization for 2026 - Management indicated a balance between maintaining good value for guests and optimizing pricing, with a focus on mid-single-digit yield growth [48][49] Question: Advanced bookings and pricing expectations - Management confirmed that mid-single-digit yield growth is the goal, with current average pricing between $800 to $900 per day [50][59] Question: Expense growth and future expectations - Management acknowledged quarterly fluctuations in expenses but emphasized strong revenue growth relative to expense increases [62][63] Question: Capacity growth and competition - Management expressed confidence in filling capacity, citing strong demand and a well-established market position [102][103] Question: M&A considerations - Management remains open to acquisitions that meet their guiding principles of scalability, margin accretion, and brand complementarity [108][109]

Financial Data and Key Metrics Changes - In Q2 2025, the company recorded total revenue of RMB 1.02 billion, a decrease from RMB 1.18 billion in the same period of 2024, primarily due to lower order volumes amid competitive dynamics [18][20] - Gross profit margin increased by 1.2 percentage points year over year to 12%, reflecting improved operational efficiency and cost management [18][19] - Adjusted net profit for the quarter was $45.6 million, down from $59.1 million in Q2 2024 [20] Business Line Data and Key Metrics Changes - The company fulfilled 123 million orders in the first half of 2025, maintaining steady average selling price (ASP) compared to the previous year [27] - The share of CN orders saw a slight positive increase, indicating a stable performance in the business lines [27] Market Data and Key Metrics Changes - The instant delivery industry continued to grow steadily, with flowers and cakes maintaining a significant market share due to unique demand [6][7] - The competitive landscape in the food delivery market remains intense, impacting order volumes and rider supply across the industry [30][33] Company Strategy and Development Direction - The company is focusing on enhancing product and service quality through a tiered operational strategy and in-depth analysis of user groups [5][6] - Plans to expand service offerings and deepen collaborations with high-value merchants are in place to enhance user satisfaction and drive repeat purchases [15][28] - The company aims to integrate its brand into users' daily lives through innovative marketing strategies and scenario-based initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a recovery in overall order volume in the second half of 2025, as competition stabilizes [28][29] - The company remains committed to optimizing resource allocation and capturing emerging opportunities for sustainable growth [21] Other Important Information - The company has implemented a comprehensive rider support system, including subsidies, training, and rewards, to maintain a stable and efficient delivery team [13][31] - Cash and cash equivalents totaled RMB 827.8 million as of the end of Q2 2025, indicating a healthy cash position [20] Q&A Session Summary Question: Could you please share the company's order volume and ASP for this quarter broken down by 2B and 2C business? How do you project the trend for order volume and ASP in the second half of the year? - The company fulfilled 123 million orders in the first half of 2025, with ASP holding steady compared to last year, and expects a recovery in overall order volume in the second half [27][28] Question: How would you assess rider's thickness and retention metrics? What trajectory should we anticipate for rider incentive budget this year? - The company reported strong registered and new rider numbers, with no notable impact from market fluctuations, and is focusing on optimizing rider productivity through an intelligent dispatch system [30][31]

Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 30%, exceeding the guidance of 22% to 26% and significantly higher than the 17% growth in the same quarter last year [5][17] - Adjusted EBITDA reached $32,000,000, surpassing the high end of previously issued guidance [7] - Operating cash flow was $33,000,000, representing 103% of adjusted EBITDA [19] - Free cash flow from operations was $29,000,000, or 91% of adjusted EBITDA [20] - Adjusted diluted EPS was $0.26 for the quarter [20] Business Line Data and Key Metrics Changes - Advertising revenue grew 44% year-over-year to $93,000,000, with e-commerce being the fastest-growing vertical, increasing over 100% year-over-year [6] - Search revenue returned to double-digit growth, up 11% year-over-year to $50,000,000 [6] - The user base for Opera GX reached 33,000,000 MAUs, an 11% increase year-over-year [12] Market Data and Key Metrics Changes - The company noted strong growth in the Western market, particularly in Europe, which contributed to user acquisition [35] - The e-commerce vertical is expected to continue growing, although comparisons will become more challenging in the second half of the year [71] Company Strategy and Development Direction - The company is focusing on AI integration within its browser, positioning itself as a key player in the emerging AI landscape [9][10] - Opera Neon, an AI browser, is set to be released, combining major AI use cases into a single user interface [10][11] - The company is also expanding its presence in the gaming sector with Opera GX and plans to soft launch in South Korea and Japan [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of advertising revenue despite macroeconomic volatility [18] - The company anticipates continued growth in search revenue and is optimistic about the broader search landscape evolving with AI [57] - Management acknowledged tariff-related headwinds but noted that global growth has offset these challenges [60][61] Other Important Information - The company has distributed $2.8 in dividends per share since January 2023 and has repurchased 30% of its outstanding stock in the previous three years [21] - MiniPay, a stablecoin wallet, has reached 9,000,000 activated wallets and exceeded 250 million transactions, indicating strong growth potential in the fintech space [15][50] Q&A Session Summary Question: What drove the sequential growth in the Western market user base? - Management indicated that seasonality and marketing strategies played a role, with expectations for more growth in Q3 and Q4 [33] Question: How should we think about the pricing and cost structure of Opera Neon? - Management stated that product marketing is the primary focus, with a combination of advertisement sponsorship and subscription models anticipated for monetization [44] Question: How does MiniPay monetize engagement? - MiniPay is generating revenue through ecosystem partnerships and integrations, leveraging its nature as a fintech product [50] Question: What are the expectations for search revenue growth? - Management expects search revenue to continue performing well, driven by changes in the broader search landscape and user engagement [57] Question: What is the outlook on tariff-related headwinds? - Management noted that while tariffs have created challenges, there is potential for recovery and growth as conditions stabilize [61] Question: How significant is the opportunity in launching Opera GX in South Korea and Japan? - Management sees strong potential in these markets, particularly due to partnerships with popular games like League of Legends [63]