Financial Data and Key Metrics Changes - The company concluded Q3 2025 with 3.13 million funded accounts, a 43% year-over-year and 9% quarter-over-quarter increase [3][5] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter, driven by robust net asset inflow and appreciation in client stock holdings [10] - Total revenue was HKD 6.4 billion, an 86% increase from HKD 3.4 billion in Q3 2024 [21] - Net income increased by 143% year-over-year and 25% quarter-over-quarter to HKD 3.2 billion, with a net income margin of 50.1% [26] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter, primarily driven by higher trading volume [21] - Interest income was HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest income from securities borrowing and margin financing [22] - Crypto trading volume surged 161% sequentially, with Ethereum trading volume quadrupling during the quarter [14] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts for four consecutive quarters, with the highest quarterly net client acquisition since Q1 2021 [5][6] - In Singapore, new funded accounts posted steady sequential growth, leading peers in daily active users [7] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased activity in derivatives trading [9] Company Strategy and Development Direction - The company aims to enhance brand recognition and product experience across all markets, focusing on sophisticated active traders in the U.S. [52] - The integration of Airstar Bank is expected to improve client stickiness and wallet share, positioning the company as a one-stop financial services platform [60] - Continued investment in crypto and AI capabilities is planned to optimize product offerings and enhance operational efficiency [47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition costs and momentum, despite recent market pullbacks [32] - The company anticipates continued strong performance in client asset inflows and trading activity, driven by favorable market dynamics [31][39] - Management highlighted the potential for significant growth in the crypto business, contingent on regulatory approvals and product offerings [40] Other Important Information - The company hosted its annual flagship offline investor event, Moof Fest, attracting over 28,000 investors [7] - The average customer acquisition cost in Q3 was around HKD 2,300, slightly up quarter-over-quarter but still within the full-year target range [31] Q&A Session Summary Question: Breakdown of client assets performance and customer acquisition cost trends - Management indicated that one-third of asset growth came from net client inflows, with the remaining two-thirds from market fluctuations. The customer acquisition cost was slightly higher than Q2 but remains within the full-year target [29][31] Question: Drivers behind strong interest income growth - Interest income growth was attributed to client idle cash, margin financing, and securities borrowing, with strong momentum observed in the market [34][36] Question: Insights on crypto business contribution and future growth drivers - The crypto business saw broad-based growth across markets, with new functions and token offerings driving increased trading volume and AUM [38][40] Question: Plans for investment in R&D and G&A costs - Management noted that R&D and G&A expenses increased due to investments in crypto and AI capabilities, as well as preparations for new market entries [46][47] Question: Client profile of new customers in Hong Kong - New clients in Hong Kong showed a continued upward trajectory in average client assets, with robust net asset inflows from existing clients [66][68] Question: Regional mix of client AUM and net inflow - Hong Kong's contribution to net asset inflow slightly decreased, with strong inflows from Singapore and Malaysia, and an increase in high net worth clients [56][58]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was HKD 6.4 billion, an increase of 86% from HKD 3.4 billion in Q3 2024 [13] - Net income rose by 143% year-over-year to HKD 3.2 billion, with a net income margin expanding to 50.1% from 38.4% in the same quarter last year [17] - Total client assets reached HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter [7] Business Line Data and Key Metrics Changes - Brokerage commission and handling charge income was HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter [13] - Interest income increased to HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter, driven by higher interest from securities borrowing and margin financing [14] - Total trading volume rose 105% year-over-year to HKD 3.9 trillion, with crypto trading volume surging 161% sequentially [8][9] Market Data and Key Metrics Changes - Hong Kong remained the largest contributor to new funded accounts, with the highest quarterly net client addition since Q1 2021 [4] - Singapore led peers in daily active users (DAUs) and continued to see steady growth in new funded accounts [5] - The U.S. business experienced high double-digit sequential growth in new funded accounts, with increased derivatives trading activity [6] Company Strategy and Development Direction - The company aims to enhance its product offerings and client experience, particularly in crypto and AI capabilities [16][34] - Futu is focusing on integrating banking services through Airstar Bank to improve client stickiness and expand service offerings [46] - The company is optimistic about the growth potential in the crypto market, with plans to broaden token offerings and explore derivatives [28][50] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding client acquisition momentum and cost trends, despite a slight increase in customer acquisition costs [20][21] - The company noted that market fluctuations have impacted asset inflows, but robust client acquisition momentum remains [20] - Management highlighted the importance of regulatory developments in shaping future product offerings, particularly in the crypto space [49] Other Important Information - The company hosted its annual investor events, attracting over 28,000 investors, enhancing brand recognition in the region [5] - The average client acquisition cost in Q3 was around HKD 2,300, slightly up from Q2 but still within the full-year target range [20] Q&A Session Summary Question: Breakdown of client assets performance and acquisition cost trends - Management indicated that one-third of asset growth came from net inflows, while two-thirds were due to market fluctuations, with robust inflow momentum continuing into Q4 [20] Question: Drivers behind strong interest income growth - Interest income was driven by client idle cash, margin financing, and securities lending, with strong contributions from the securities borrowing business [23][25] Question: Insights on crypto business contribution and future growth - Crypto trading volume saw triple-digit growth across markets, with new features and token offerings expected to drive further expansion [26][28] Question: Client profile of new customers in Hong Kong - New clients in Hong Kong showed an upward trajectory in average client assets, with trading behavior influenced by market performance [54] Question: Gross margin trends in international markets - Operating margins in Singapore have consistently topped 60%, indicating strong operating leverage as the company scales [56]

Financial Data and Key Metrics Changes - In Q3 2025, total revenues were RMB 31.2 billion, a decrease of 7% year-over-year [26] - Baidu Core reported total revenue of RMB 24.7 billion, also down 7% year-over-year [26] - Baidu Core's online marketing revenue decreased by 18% year-over-year to RMB 15.3 billion, while non-line marketing revenue increased by 21% year-over-year to RMB 9.3 billion [26] - Operating loss was RMB 15.1 billion, with a margin of 61% for Baidu Core [28] - Net loss attributable to Baidu was RMB 11.2 billion, with a diluted loss per ADS of RMB 33.88 [29] Business Line Data and Key Metrics Changes - AI Cloud revenue reached RMB 6.2 billion, increasing by 21% year-over-year [26] - Subscription-based revenue from AI accelerator infrastructure surged 128% year-over-year, becoming the primary driver of AI Cloud's expansion [4][23] - Revenue from AI-native marketing services, including agents and digital humans, reached RMB 2.8 billion, up 262% year-over-year [14][26] Market Data and Key Metrics Changes - Apollo Go provided over 3 million fully driverless operational rides in Q3, representing a 212% year-over-year increase [9][17] - Apollo Go's global footprint expanded to 22 cities, up from 16 last quarter [11] - Baidu App's MAU reached 708 million, up 1% year-over-year, with daily average time spent per user increasing by 2.3% year-over-year [20] Company Strategy and Development Direction - The company is focusing on AI-driven innovations across its business lines, including AI Cloud, autonomous driving, and AI-native marketing services [4][22] - Apollo Go is entering a phase of rapid global expansion, with plans to scale operations and improve technology based on operational data [10][49] - The company is committed to enhancing its AI capabilities and expanding its AI-powered revenue streams [22][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the AI Cloud business, driven by strong demand for AI-centric services [36] - The company anticipates that the AI transformation will create long-term competitiveness, despite near-term pressures on revenue and margins [52] - Management highlighted the importance of continuous innovation in AI applications to capture long-term opportunities [42] Other Important Information - The company introduced a new AI-native view to better reflect valuation drivers based on its current portfolio [22][43] - Total cash and investments as of September 30, 2025, were RMB 296.4 billion [30] - The company has invested over RMB 100 billion in AI since March 2023 and plans to maintain high levels of investment [55] Q&A Session Summary Question: How will Ernie 5.0 drive the next stage of application? - Management emphasized an application-driven approach for Ernie's iteration, focusing on enhancing digital humans and FM Agents for better user engagement and efficiency [31][34] Question: What is the outlook for the cloud business? - Management noted that the cloud business is growing above the industry average, with strong demand for AI-centric services expected to continue [36][38] Question: How is AI search monetization progressing? - Management reported that nearly 70% of mobile search result pages now contain AI-generated content, with ongoing tests showing promising early monetization results [50][52] Question: What are the plans for Apollo Go's global expansion? - Management outlined plans for continued scaling of operations, adding more cities, and improving technology based on operational data [48][49] Question: What is the rationale behind the asset impairment this quarter? - Management explained that the impairment was part of a comprehensive review to align the asset base with advanced AI computing demands [55]

Financial Data and Key Metrics Changes - The company reported total revenues of RMB 108.3 billion for Q3 2025, representing a 9% year-over-year increase, driven by growth in online marketing services and transaction services [26] - Operating profit for the quarter was RMB 25 billion, compared to RMB 24.3 billion in the same quarter last year, while non-GAAP operating profit was RMB 27.1 billion, down from RMB 28 billion year-over-year [28][29] - Net income attributable to ordinary shareholders was RMB 29.3 billion, up from RMB 25 billion in the same quarter last year, with diluted earnings per ADS increasing to RMB 19.7 from RMB 16.91 [29] Business Line Data and Key Metrics Changes - Revenues from online marketing services were RMB 53.3 billion, up 8% year-over-year, while transaction services revenues were RMB 54.9 billion, up 10% from the same quarter last year [26] - Total costs of revenues increased 18% to RMB 46.8 billion, primarily due to higher fulfillment fees, bandwidth, server costs, and payment processing fees [27] Market Data and Key Metrics Changes - The company observed a 47% year-over-year growth in agriculture sales, with a notable increase in the number of agriculture merchants, particularly those born in the 2000s, which grew over 30% year-over-year [19] - The number of merchants aged 25 to 30 grew by 31% year-over-year, and high-quality SKUs increased by over 50% year-over-year, indicating a shift towards high-quality development in key industrial belts [23] Company Strategy and Development Direction - The company aims to prioritize long-term value creation over short-term results, focusing on high-quality growth and enhancing core capabilities to better serve consumers and merchants [4][37] - Strategic initiatives such as the 100 billion support program and the Duoduo Premium Produce campaign are designed to support merchants and drive industry upgrades [10][44] - The company is committed to adapting to regulatory changes and enhancing compliance to ensure sustainable development in global markets [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competition in the e-commerce sector and emphasized the need for continuous investment in the platform ecosystem to foster long-term growth [15][40] - The company expects financial performance to fluctuate in the coming quarters due to ongoing investments and a complex global environment [11][47] Other Important Information - The company has made significant investments in R&D, reaching RMB 3.7 billion, reflecting a commitment to improving core technology capabilities [28] - The company has established a Merchant Protection Committee to enhance communication and support for merchants [35] Q&A Session Summary Question: Industry trends and PDD's online marketing service revenue slowdown - Management noted that the e-commerce sector is evolving rapidly, and competition is unavoidable, focusing on creating unique value for consumers and merchants [34][35] Question: Regulatory scrutiny in global operations - Management emphasized the importance of integrating with local regulations and enhancing compliance to ensure sustainable development in each market [41][42] Question: Investment in the merchant ecosystem - Management highlighted ongoing investments in merchant support initiatives and the positive feedback received from these ecosystem investments [45][46] Question: Upcoming investment pace and profitability level - Management indicated that increased investments in the platform ecosystem may challenge revenue and profit, but the focus remains on long-term strategic goals [47][48]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated total revenue of RMB 2.16 billion, representing a year-on-year increase of 13.2% [5] - Adjusted operating profit reached RMB 900 million, up 49.3% year on year [5] - GAAP net profit was RMB 780 million, reflecting a 67.2% year-on-year increase, with a net profit margin of 35.8% [5][21] - Share-based compensation expenses decreased to RMB 220 million, marking a 21% year-on-year drop [5] - Net cash provided by operating activities reached RMB 1.2 billion, up 45% year on year [22] Business Line Data and Key Metrics Changes - The average verified monthly active users (MAU) on the BOSS Zhipin app reached 63.82 million, with user activity remaining strong [6] - Newly posted job positions increased by 25% year on year, indicating a rebound in enterprise-side demand [7] - The number of paid enterprise customers grew by 13.3% year on year to 6.8 million [7][17] Market Data and Key Metrics Changes - Blue-collar revenue growth led the market, with manufacturing industries showing the highest revenue growth for five consecutive quarters [8] - Demand in tier-one cities is rebounding, while tier-two cities remain stable, and revenue contribution from tier-three cities continues to rise [10] Company Strategy and Development Direction - The company is focusing on integrating AI into its products and operations, with significant progress in AI Job Search Assistant and AI interview features [11][12] - The strategy includes improving the online job search environment for blue-collar workers and enhancing user trust through initiatives like the KONGE Project [9] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in recruitment activities, with improved hiring demand contributing to accelerated revenue growth [25][28] - The company expects total revenue for Q4 2025 to be between RMB 2.05 billion and RMB 2.07 billion, indicating continued growth momentum [22] Other Important Information - The company completed an annual dividend payment of approximately $80 million in October [16] - The overall ARPPU remained stable despite structural shifts in customer mix [17] Q&A Session Summary Question: What is the overall recruitment demand recently? - Management observed that recruitment activities from enterprises recovered in Q3, with a faster growth rate of enterprise users compared to job seekers, alleviating pressure on the platform [25][26] Question: What is the perception of KA renewal willingness? - The company noted improving contract renewal rates, particularly in Q3, signaling a potential turning point in company-level net dollar retention rates [30] Question: How much more market share can the company gain over peers? - The company highlighted that over 80% of paid enterprise customers are small and micro enterprises, indicating ample room for growth in market share [35] Question: What are the major investment areas for next year? - Management indicated that profitability will not be sacrificed for revenue growth, with a focus on user service and revenue growth as higher priorities [37] Question: What is the impact of AI on the recruitment industry? - The company is cautiously exploring AI applications in recruitment, noting that high-quality data is critical for success in this evolving landscape [45]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated total revenue of RMB 2.16 billion, representing a year-on-year increase of 13.2% [5] - Adjusted operating profit reached RMB 900 million, up 49.3% year-on-year, while GAAP net profit was RMB 780 million, up 67.2% year-on-year, with a net profit margin of 35.8% [5][18] - Share-based compensation expenses decreased to RMB 220 million, marking a 21% year-on-year drop [5] - Net cash provided by operating activities reached RMB 1.2 billion, up 45% year-on-year, with a strong cash position of RMB 19.2 billion as of September 30, 2025 [22] Business Line Data and Key Metrics Changes - The average verified monthly active users (MAU) on the BOSS Zhipin app reached 63.82 million, with user activity remaining strong [6] - Newly posted job positions increased by 25% year-on-year, with the number of paid enterprise customers growing by 13.3% year-on-year to 6.8 million [7][17] - The average number of daily active enterprise users grew faster than job seekers for the first time in three years [7] Market Data and Key Metrics Changes - Blue-collar revenue growth led the market, with manufacturing industries showing the highest revenue growth for five consecutive quarters [8] - Demand in tier-one cities is rebounding, while revenue contribution from tier-three cities continues to rise [10] - Mid-to-large enterprises are growing the fastest among different enterprise sizes [10] Company Strategy and Development Direction - The company is focusing on integrating AI into its products and operations, with significant progress in AI Job Search Assistant and AI interview features [11][12] - The KONGE Project aims to improve the job search environment for blue-collar workers, enhancing user trust and combating false information [9] - The company plans to continue strengthening its core business capabilities while fulfilling commitments to shareholders [16] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in recruitment demand, with improved hiring conditions contributing to accelerated revenue growth [25][28] - The company expects total revenue for Q4 2025 to reach between RMB 2.05 billion and RMB 2.07 billion, indicating continued growth momentum [22] - Management expressed confidence in sustaining growth despite potential competitive pressures as the macro environment improves [35] Other Important Information - The company completed an annual dividend payment of approximately $80 million in October [16] - The overall ARPPU remained stable despite structural shifts in customer mix [18] Q&A Session Summary Question: What is the overall recruitment demand recently? - Management observed a recovery in recruitment activities, with improved ratios between job seekers and recruiters, indicating a healthier hiring environment [25][26] Question: What is the perception of KA renewal willingness? - The company noted improving contract renewal rates, particularly in Q3, signaling a potential turning point in customer retention and spending [30] Question: How can the company sustain above-peer growth? - The company highlighted that over 80% of paid enterprise customers are small and micro enterprises, indicating ample room for growth in market share [35] Question: What are the major investment areas for next year? - Management indicated that profitability will not be sacrificed for revenue growth, with a focus on user service and revenue growth as higher priorities [38] Question: What progress has been made in different verticals within the recruitment industry? - The company is cautiously exploring new services while integrating AI, with ongoing experiments showing promising results [42][44]

Financial Performance - In Q3 2025, the company generated total revenue of RMB 2.16 billion, representing a year-on-year increase of 13.2% [6][46] - Adjusted operating profit reached RMB 900 million, up 49.3% year on year [6] - GAAP net profit was RMB 780 million, a 67.2% increase year on year, with a net profit margin of 35.8% [8][50] - Share-based compensation expenses decreased by 21% year on year to RMB 220 million [8][47] - Net cash provided by operating activities was RMB 1.2 billion, up 45% year on year [51] Business Line Performance - The average verified monthly active users (MAU) on the BOSS Zhipin app reached 63.82 million, with over 40 million newly verified users acquired from January to October [10] - Newly posted job positions increased by 25% year on year, indicating a rebound in enterprise-side demand [12] - The number of paid enterprise customers grew by 13.3% year on year to 6.8 million [16][46] Market Performance - Blue-collar revenue growth led the sectors, with manufacturing industries showing the highest revenue growth for five consecutive quarters [19] - Participation from small and medium-sized enterprises in the white-collar industry increased, with a stable average spending per customer [28] - Demand in tier-one cities is rebounding, while revenue contribution from tier-three cities continues to rise [29] Company Strategy and Industry Competition - The company is focusing on integrating AI into its products and operations, with significant progress in AI Job Search Assistant and AI interview features [30][31] - The strategy includes improving the online job search environment for blue-collar workers and developing a user scale of double-sided users [20][26] - The competitive landscape is evolving, with traditional recruitment platforms facing pressure from AI companies entering the market [90][100] Management Comments on Operating Environment and Future Outlook - Management noted that recruitment activities from enterprises recovered in Q3, with improved hiring demand driving revenue growth [53][67] - The company expects total revenue for Q4 2025 to reach between RMB 2.05 billion and RMB 2.07 billion, indicating continued growth momentum [51] - The management emphasized a focus on profitability while also prioritizing user growth and market share expansion [86][87] Other Important Information - The company completed an annual dividend payment of approximately $80 million in October [45] - The overall ARPPU remained stable despite structural mix shifts [47] Q&A Session Summary Question: What is the overall recruitment demand recently? - Management confirmed that recruitment activities from enterprises recovered in Q3, with improved hiring demand driving accelerated revenue growth [53][67] Question: What is the perception of KA renewal willingness? - The company observed improving contract renewal rates, particularly in Q3, signaling a potential turning point in customer retention [69] Question: How can the company sustain above-peer growth? - The company highlighted that over 80% of paid enterprise customers are small and micro enterprises, indicating ample room for growth despite macro uncertainties [78] Question: What are the major investment areas for next year? - Management indicated that profitability will not be sacrificed for revenue growth, with a focus on user growth and maintaining a high margin profile [84][86]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached RMB 113.1 billion, up 22.3% year-on-year, marking the fourth consecutive quarter exceeding RMB 100 billion [4][17] - Gross profit margin increased to 22.9%, up 2.5 percentage points year-on-year, achieving a new record high [5][17] - Adjusted net profit reached RMB 11.3 billion, up 81% year-on-year, setting a new record high [5][23] Business Line Data and Key Metrics Changes - Revenue from the smartphone segment was RMB 46 billion, accounting for 40.6% of total revenue, with global smartphone shipments reaching 43.25 million units, marking a 0.5% year-on-year increase [17][18] - IoT business revenue was RMB 27.6 billion, with a gross margin of 23.9%, achieving seven consecutive quarters of year-on-year growth [10][19] - The smart EV, AI, and other new initiative segment generated revenue of RMB 29 billion, accounting for 25.6% of total revenue, with smart EV sales reaching RMB 28.3 billion [21][22] Market Data and Key Metrics Changes - Xiaomi ranked among the top three in global smartphone shipments with a market share of 13.6%, and achieved year-on-year market share growth in all regions except India [7][18] - In mainland China, smartphone market share reached 14.9%, with a 0.7 percentage point increase year-on-year [18] - The company ranked second in Latin America and the Middle East, with market shares of 17.9% and 16.9%, respectively [7] Company Strategy and Development Direction - The company aims to enhance its premiumization strategy, targeting the ultra-premium segment above RMB 6,000 as a new objective for the next five years [8][9] - The launch of Xiaomi HyperOS 3 is expected to improve user experience and drive product competitiveness [9] - The company plans to invest over RMB 200 billion in R&D over the next five years, with R&D expenses exceeding RMB 30 billion this year [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ensuring stable raw material supply despite rising memory costs and supply-demand dynamics [10] - The company anticipates a decline in smartphone gross margins due to increased memory costs but plans to mitigate this through product mix upgrades and ASP increases [30][31] - Management remains optimistic about the growth of the IoT business and the expansion of overseas markets [12][19] Other Important Information - The company achieved a record high of 742 million global MAUs in September 2025, an 8.2% increase year-on-year [20] - The smart home appliance factory commenced operations, with a planned peak annual production capacity of 7 million units [11][19] - The company was named to the Fortune Global 500 list for the seventh consecutive year, ranking 297th [14] Q&A Session Summary Question: Concerns about memory cost impact on smartphone gross margin and EV delivery strategy - Management acknowledged the long cycle of memory cost increases and its impact on gross margins, stating that price increases and product structure optimization will be necessary to mitigate this [27][30] - For EVs, management noted rising delivery volumes and improvements in delivery schedules due to efficiency enhancements [33][34] Question: Future smartphone strategy and EV subsidies impact on gross margin - Management indicated that while smartphone prices may increase, the overall market may experience a downturn, and they aim to maintain a premium strategy [39][41] - Regarding EVs, management expects some impact on gross margin due to subsidies but believes current margins are healthy [42][43] Question: AIoT growth and large appliances strategy - Management highlighted the integration of AI with IoT devices and the importance of maintaining an open ecosystem for future growth [46][66] - For large appliances, management emphasized the importance of innovation and the impact of national subsidies, stating that they will adapt to changes in the market [50][51] Question: Autonomous driving advancements and overseas development - Management confirmed that autonomous driving is a critical focus for future EV development, with significant enhancements in technology and data utilization [56][57] - The company is expanding its overseas presence, particularly in East Asia and Southeast Asia, while maintaining good relationships with traditional distributors [58][59] Question: Inventory management and Miloco ecosystem plans - Management reassured that inventory levels are well-managed and that they will maintain an open ecosystem for Miloco while exploring AI integration [64][66] Question: Smartphone market stability and large appliance factory role - Management noted that the smartphone market is currently stable, with cost increases impacting all players, and emphasized the advanced capabilities of the new large appliance factory [70][73]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached RMB 113.1 billion, up 22.3% year-on-year, marking the fourth consecutive quarter exceeding RMB 100 billion [4][17] - Gross profit margin reached a record high of 22.9%, up 2.5 percentage points year-on-year [5][17] - Adjusted net profit reached RMB 11.3 billion, up 81% year-on-year, setting a new record high [5][23] Business Line Data and Key Metrics Changes - Revenue from the smartphone segment reached RMB 46 billion, accounting for 40.6% of total revenue, with global smartphone shipments at 43.25 million units, marking a 0.5% year-on-year increase [17][18] - IoT business revenue was RMB 27.6 billion, marking seven consecutive quarters of year-on-year growth, with a gross margin of 23.9% [10][19] - Revenue from the smart EV segment reached RMB 28.3 billion, with a gross profit margin of 25.5% [21][22] Market Data and Key Metrics Changes - Xiaomi ranked among the top three in global smartphone shipments with a market share of 13.6% [7][18] - In mainland China, smartphone market share increased to 14.9%, with significant growth in the premium smartphone segment [7][18] - IoT platform connected over 1 billion devices, with overseas IoT revenue reaching record highs [19][20] Company Strategy and Development Direction - The company aims to enhance premiumization, targeting the ultra-premium segment above RMB 6,000 as a new objective for the next five years [8][9] - The launch of Xiaomi HyperOS 3 aims to improve user experience and system fluidity, supporting the company's strategy to drive innovation [9][10] - The company plans to invest over RMB 200 billion in R&D over the next five years, with R&D expenses exceeding RMB 30 billion this year [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ensuring stable raw material supply despite rising memory costs impacting smartphone gross margins [10][27] - The company is focused on maintaining profitability through product mix upgrades and ASP increases [10][29] - Management acknowledged the challenges posed by industry competition but emphasized the importance of innovation and product value [11][12] Other Important Information - The smart home appliance factory commenced operations, designed for a peak annual capacity of 7 million units [11][19] - The company was named to the Fortune Global 500 list for the seventh consecutive year, ranking 297th [14] - The MSCI ESG rating was upgraded from BBB to AA, marking the third consecutive year of improvement [23][24] Q&A Session Summary Question: Concerns about the impact of rising memory costs on smartphone gross margins - Management acknowledged the long cycle of cost increases for memory and its impact on gross margins, suggesting price increases and product structure optimization as solutions [27][29] Question: Strategy for EV deliveries and future development - Management highlighted the rising delivery volumes and improvements in delivery efficiency, with a focus on maintaining quality and expanding the sales network [32][33] Question: Adjustments to smartphone strategy and profitability - Management indicated that while price increases may impact the overall smartphone market, the focus remains on enhancing ASP and achieving premiumization targets [39][41] Question: Impact of subsidies on EV gross margins - Management noted that while there may be short-term impacts from subsidies, the current gross margin remains healthy, and efforts are being made to maintain delivery capabilities [42][43] Question: AIoT ecosystem and future plans - Management discussed the integration of AI with IoT devices and the commitment to maintaining an open ecosystem for future developments [46][67] Question: Expansion strategy for stores and overseas markets - Management outlined plans for store efficiency improvements and gradual expansion in overseas markets, emphasizing the complementary nature of AIoT products [82][84] Question: Operating expenses trends - Management explained that the increase in operating expenses is primarily due to R&D investments and the expansion of the retail network [85][86]

Financial Data and Key Metrics Changes - Total revenue for Q3 was RMB 6.7 billion, up 1% sequentially [37] - Membership services revenue reached RMB 4.2 billion, up 3% sequentially [37] - Online advertising revenue was RMB 1.2 billion, decreased by 2% sequentially [37] - Content distribution revenue increased to RMB 644.5 million, up 48% sequentially [37] - Non-GAAP operating loss was RMB 21.9 million, with a non-GAAP operating loss margin of 0.3% [39] Business Line Data and Key Metrics Changes - Long form dramas secured top viewership market share, with "The Thriving Land" achieving high popularity [13] - Original theatrical releases grossed over RMB 1.2 billion, leading the box office [14] - Membership services revenue growth was driven by original hit dramas and theatrical megahits [19] - Advertising business recorded double-digit annual growth, mainly from premium variety shows and hit dramas [21] Market Data and Key Metrics Changes - Membership revenue from overseas markets increased by over 40% annually [28] - Membership revenue from micro dramas grew 114% sequentially [30] - Thai dramas have become a globally recognized content category, with significant revenue growth in overseas markets [55] Company Strategy and Development Direction - The company aims to leverage AI for content creation and enhance user engagement [10][25] - Focus on expanding the content ecosystem through diverse genres and innovative storytelling [12][19] - Plans to enhance membership services and integrate them with top IPs [20] - Emphasis on global expansion and local content production in various markets [31] Management's Comments on Operating Environment and Future Outlook - Management noted positive impacts from new regulatory policies on the long-form video industry [42] - Confidence in sustainable growth in the membership business supported by high-quality content [49] - Anticipation of significant changes in the video content creation industry due to AI advancements [66] Other Important Information - The company is exploring new content formats and revenue-sharing models to attract creative talent [44] - Strong focus on developing IP-based consumer products and offline experiences [32][34] - The company is investing heavily in AI technology applications to enhance content production and marketing efficiency [66] Q&A Session Summary Question: Update on new regulations - Management observed positive progress in content review processes and is innovating content production models under new policies [42][44] Question: Outlook on membership business - Membership business is showing growth momentum driven by high-quality content and enhanced member services [46][49] Question: Overseas expansion strategy - The overseas business has seen strong performance, with significant growth in membership revenue and user base [51][55] Question: AI adoption in content production - AI technology is enhancing operational efficiency, monetization capabilities, and content production processes [58][66]