Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue increased by 6% year-over-year to RMB 3.2 billion, while non-GAAP operating profits grew by 91% to RMB 198 million [6][9] - The blended gross margin for product sales expanded to 36.5%, an increase of 640 basis points year-over-year [10] - Operating cash flow more than tripled to RMB 420 million in 2025, representing a 315% year-over-year increase [15] Business Line Data and Key Metrics Changes - E-commerce revenue grew by 2.5% to RMB 2.6 billion, with services revenue increasing by 3.1% to RMB 2 billion, driven by digital marketing and IT solutions [9][10] - Brand management revenue grew by 24% to RMB 664 million, with BBM product sales totaling RMB 663.7 million, also representing a 24% year-over-year growth [9][10] - Gross margin for e-commerce product sales improved to 18.4%, reflecting a 760 basis point increase compared to the previous year [11] Market Data and Key Metrics Changes - The company gained market share in key categories such as luxury, sports, and outdoor, with strong performance in the health and nutrition category [18] - The omni-channel capability remains a core advantage, with 41 awards received in the Tmall ecosystem, including the Tmall Ecosystem Excellence in Service Award [18] Company Strategy and Development Direction - The company aims to amplify progress and accelerate growth over the next three years, focusing on margin expansion, building scale in BBM, and deepening synergies between BEC and BBM [8] - The ambition is to drive non-GAAP operating profit growth to RMB 550 million by 2028, with a focus on sustainable and profitable operations [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and operational improvements, indicating a shift from rebuilding to scaling [7][8] - The company anticipates a strong start for 2026, with expectations for revenue growth and improved profitability across both BEC and BBM segments [62][63] Other Important Information - The company recognized an investment impairment loss of RMB 230 million, primarily related to previous debt investments in the e-commerce sector [15] - The company is focused on leveraging AI technology to enhance operational efficiency and improve profitability [30][47] Q&A Session Summary Question: Current status of AI workflow transformation and measurable gains in efficiency - Management indicated that AI technology has been leveraged to improve internal efficiency, particularly in creating and uploading digital assets [31][32] Question: Mid to long-term impact of AI on e-commerce and brand management - Management noted that AI is changing consumer behavior and reallocating traffic structure, with ongoing efforts to adapt to these changes [32][42] Question: Business outlook for 2028 and key drivers - Management highlighted that the growth in BBM's profitability and margin expansion in BEC are key drivers for the projected operating profit of RMB 550 million by 2028 [36][37] Question: Latest macro sentiment and expectations for 2026 - Management reported strong performance during the Chinese New Year and March 8 campaigns, with positive expectations for future quarters [40][41] Question: Changes to BBM development strategy for 2026 - Management confirmed that the strategy remains consistent, with increased confidence in BBM's growth and capability improvements [53][55] Question: Growth outlook for 2026 and capital allocation plan - Management expressed confidence in achieving a positive year for net income and expects revenue increases in both BEC and BBM segments [62][63] Question: Update on overseas business development strategy - Management indicated solid progress in international markets, particularly in Southeast Asia, but does not expect significant contributions from international business in the near term [70]

Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue reached RMB 123.9 billion, growing 12% year-on-year, while full-year revenue was RMB 431.8 billion, up 10% year-on-year [6][23] - Net income attributable to ordinary shareholders was RMB 24.5 billion for the quarter and RMB 99.4 billion for the full year [27] - Basic earnings per ADS for Q4 was RMB 17.50, down from RMB 19.76 in the same quarter of 2024 [27] Business Line Data and Key Metrics Changes - Revenues from online marketing services were RMB 60 billion in Q4, up 5% year-on-year, while transaction services revenues were RMB 63.9 billion, up 19% year-on-year [23] - Total costs of revenues increased 15% in Q4 to RMB 55.2 billion, and 23% for the full year to RMB 188.8 billion [24] Market Data and Key Metrics Changes - The company is currently operating in over 90 markets and has faced new challenges from a complex regulatory environment [31] - The e-commerce industry in China has shown a slowdown in growth, impacting the company's online marketing revenue growth [32] Company Strategy and Development Direction - The company launched the Hundred Billion Support Program to support merchants and improve corporate governance through a co-chair structure [5][18] - The strategic focus is on investing deeply in the supply chain and pursuing high-quality brand-oriented growth [14][15] - The company aims to empower merchants and manufacturers to innovate and build brands, driving expansion towards high-quality growth [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complex global geopolitical landscape and evolving trade and regulatory policies, which introduce uncertainty [21][50] - The company remains committed to long-term investments in the supply chain despite short-term profitability fluctuations [61][72] Other Important Information - The company has established end-to-end delivery networks in over 10 provinces to enhance logistics support for remote regions [12] - Initiatives like the New Quality Supply program aim to improve product quality and services for merchants [42] Q&A Session All Questions and Answers Question: How does the company maintain flexibility and quality of execution in a complex regulatory environment? - Management recognizes the need for systemic transformation in governance and operations to adapt to the evolving landscape [34][36] Question: What is the current state of the China e-commerce market and where might the next phase of growth come from? - The company sees intensified competition and slowing growth in the e-commerce industry, emphasizing the importance of creating value across the supply chain [37][72] Question: What are the strategic focuses for the global business amid regulatory inquiries? - The focus remains on investing in supply chain capabilities to ensure compliance and deliver reliable services [50][56] Question: How should investors think about the company's long-term profit margin level? - Management emphasizes the importance of long-term investments over short-term profitability, indicating fluctuations in profit margins may occur [61][72]

Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue increased by 6% year-over-year to RMB 3.2 billion, while non-GAAP operating profits grew by 91% to RMB 198 million [6][9] - The blended gross margin for product sales at the group level was 36.5%, an expansion of 640 basis points year-over-year [10] - Operating cash flow more than tripled to RMB 420 million in 2025, representing a 315% year-over-year increase [15] Business Line Data and Key Metrics Changes - E-commerce revenue grew by 2.5% to RMB 2.6 billion, with services revenue increasing by 3.1% to RMB 2 billion, driven by digital marketing and IT solutions [9][10] - Brand management revenue grew by 24% to RMB 664 million, with BBM product sales totaling RMB 663.7 million, representing a 24% year-over-year growth [9][10] - BEC's gross margin rose to 18.4%, reflecting a 760 basis point improvement compared to the previous year [11] Market Data and Key Metrics Changes - The company gained market share in key categories such as luxury, sports, and outdoor, with strong performance in the health and nutrition category [18] - The omni-channel capability remains a core advantage, with 41 awards received in the Tmall ecosystem, including the Tmall Ecosystem Excellence in Service Award [18] Company Strategy and Development Direction - The company aims to amplify progress and accelerate growth over the next three years, focusing on expanding margins, building scale, and deepening synergies between BEC and BBM [8] - The ambition is to drive non-GAAP operating profit to RMB 550 million by 2028, with a focus on value and margin expansion [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and operational improvements, indicating a shift from rebuilding to scaling [7][8] - The company is optimistic about the 2026 outlook, expecting double the non-GAAP operating profits compared to 2025 [63] Other Important Information - The company recognized an investment impairment loss of RMB 230 million, primarily related to previous debt investments in the e-commerce sector [15] - The company is focused on leveraging AI technology to enhance operational efficiency and improve profitability [30][47] Q&A Session Summary Question: Current status of AI workflow transformation and measurable gains in efficiency - Management indicated that AI technology has been leveraged to improve internal efficiency, particularly in creating and uploading digital assets [31][32] Question: Mid to long-term impact of AI on e-commerce and brand management - Management noted that AI is changing consumer behavior and reallocating traffic structure, with ongoing monitoring of trends [32][42] Question: Business outlook for 2028 and key drivers - Management highlighted that the growth in BBM's profitability and margin expansion in BEC are key drivers for the projected operating profit of RMB 550 million by 2028 [36][37] Question: Latest macro sentiment and expectations for 2026 - Management reported strong performance during the Chinese New Year and March 8 campaigns, with promising momentum expected in future quarters [40][41] Question: Growth expectations for Gap China and long-term vision - Management expects continued growth for Gap China, with plans to open more than 50 stores and maintain a growth rate of around 20% [44][45]

Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue reached RMB 123.9 billion, growing 12% year-on-year, while full-year revenue reached RMB 431.8 billion, up 10% year-on-year [5][22] - Net income attributable to ordinary shareholders was RMB 24.5 billion for the quarter and RMB 99.4 billion for the full year, with diluted earnings per ADS at RMB 16.51 for Q4 [26][28] Business Line Data and Key Metrics Changes - Revenues from online marketing services were RMB 60 billion in Q4, up 5% year-on-year, while transaction services revenues were RMB 63.9 billion, up 19% year-on-year [22] - Total costs of revenues increased 15% in Q4 to RMB 55.2 billion, and 23% for the full year to RMB 188.8 billion, primarily due to increased fulfillment fees and server costs [23] Market Data and Key Metrics Changes - The company has expanded its global business, now serving nearly 100 markets, despite facing challenges from a complex regulatory environment [32][48] - The e-commerce industry in China has entered a new phase of intensified competition and slowing growth, impacting the company's online marketing revenue growth [37][56] Company Strategy and Development Direction - The company launched the Hundred Billion Support Program to support merchants and improve corporate governance through a co-chair structure [4][16] - The strategic focus is on high-quality development of the supply chain, with plans to deepen investments and accelerate transformation [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the evolving geopolitical landscape and regulatory scrutiny, emphasizing the need for systemic transformation [34][50] - The company remains committed to long-term investments in the supply chain, viewing fluctuations in profit margins as a normal part of the strategic investment phase [59][70] Other Important Information - The company has implemented various initiatives to enhance supply chain efficiency, including logistics support for remote regions and programs aimed at improving product quality [10][41] - The company aims to empower merchants and manufacturers to innovate and build brands, driving high-quality growth [18][72] Q&A Session Summary Question: How does the company maintain flexibility and quality of execution amid regulatory challenges? - Management recognizes the need for systemic transformation in governance and operations to adapt to the evolving regulatory landscape [34][36] Question: What is the current state of the China e-commerce market and future growth opportunities? - Management notes a slowdown in growth but emphasizes the importance of creating value across the supply chain rather than relying solely on traffic acquisition [37][56] Question: What is the strategic focus for the global business amid regulatory inquiries? - The focus remains on investing in supply chain capabilities to ensure compliance and deliver value to consumers [50][55] Question: How should investors think about the company's long-term profit margin levels? - Management indicates that fluctuations in profit margins are expected during the strategic investment phase, with a focus on long-term value creation [59][70]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 reached RMB 461 million, representing a year-over-year increase of approximately 25% [3][20] - Net loss attributable to So-Young was RMB 108.8 million, an improvement from RMB 607.6 million in the same period of 2024 [27] - Basic and diluted loss per ADS improved to 1.08 compared to 5.92 in the same period of 2024 [27] Business Line Data and Key Metrics Changes - Revenues from the aesthetic center business reached RMB 248 million, up over 205% year-over-year, becoming the largest revenue segment [4][21] - Information and reservation services revenues were RMB 125.7 million, down 26.8% year-over-year [24] - Sales of medical products and maintenance services revenues were RMB 69.3 million, down 19.9% year-over-year [24] Market Data and Key Metrics Changes - As of year-end 2025, So-Young operated 49 clinics across 15 major cities, with a net addition of 10 centers during the quarter [23] - Verified treatment visits exceeded 125,000 in Q4, up 178% year-over-year [4] - Total active users surpassed 170,000 by the end of December 2025 [5] Company Strategy and Development Direction - The company aims to shift from a scale-first approach to a dual engine of scale and efficiency in 2026, focusing on profitability alongside expansion [17] - Plans to open at least 35 new centers in 2026 while improving growth margins and driving efficiency gains across the network [28] - Continued investment in enhancing medical service delivery capabilities and building a long-term trust-driven moat [8][10] Management's Comments on Operating Environment and Future Outlook - The management noted that the medical aesthetic industry is shifting back to a rational, quality-driven path, with a focus on delivering trusted services [17] - The company expressed confidence in the sustained momentum of its branded aesthetic center business, expecting aesthetic treatment services revenues to grow significantly in Q1 2026 [28] - Management emphasized the importance of user trust and the ongoing recognition from consumers as foundational for sustainable growth [11] Other Important Information - The company has established a six-pillar compliance framework and achieved PIA certification for data security, setting a benchmark in the industry [10] - The average annual spending of core members is around RMB 16,500, with an 80% return rate among core members [11] Q&A Session Summary Question: Gross margin prospects and plans for further margin expansion - Management highlighted three core factors shaping margin performance: pace of center openings, consumable costs, and seasonal promotions [31][32] Question: Development of So-Young Clinic in second-tier cities - Management confirmed that centers in second-tier cities are performing well, with revenue per center approaching first-tier levels [36][38] Question: Customer acquisition costs and strategy for 2026 - Management stated that customer acquisition costs remain below 10% of revenue, with strategies focusing on customer referrals and co-branding initiatives [41][42] Question: Measures to improve the lifetime value (LTV) of core members - Management plans to expand the product portfolio and optimize the membership system to enhance core members' perception of brand value [44][47]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 6% year-over-year to RMB 3.2 billion, with non-GAAP operating profits growing by 91% to RMB 198 million [6][10][14] - The blended gross margin for product sales expanded to 36.5%, a 640 basis point increase year-over-year, with gross profit rising by 35.9% to RMB 451.5 million [11][12] - Operating cash flow more than tripled to RMB 420 million in 2025, representing a 315% year-over-year increase [16] Business Line Data and Key Metrics Changes - E-commerce revenue grew by 2.5% to RMB 2.6 billion, while brand management revenue surged by 24% to RMB 664 million [10] - BEC product sales revenue increased by 0.5% to RMB 574.5 million, driven by health and nutrition category growth [11] - BBM product sales totaled RMB 663.7 million, reflecting a 24% year-over-year growth, primarily due to strong performance from the Gap brand [11] Market Data and Key Metrics Changes - BEC's gross margin rose to 18.4%, a record high, driven by category mix optimization [18] - BBM's gross margin improved to 52.1%, up from 50.4% a year ago, indicating effective merchandising and marketing initiatives [12][24] Company Strategy and Development Direction - The company aims to shift focus from rebuilding to scaling, with a target of achieving non-GAAP operating profit growth to RMB 550 million by 2028 [9] - Strategic initiatives include expanding BEC's margin, building scale in BBM, and enhancing synergies between BEC and BBM [9][21] - The company is committed to leveraging AI technology to improve operational efficiency and enhance service offerings [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and growth trajectory, highlighting a successful completion of the initial phase of transformation [6][9] - The company anticipates a strong performance in 2026, with expectations for continued revenue growth and improved profitability [64][66] Other Important Information - The company recognized an investment impairment loss of RMB 230 million, reflecting a strategic focus on developing the brand management business [16] - The company received multiple awards in the Tmall ecosystem, affirming its leadership in execution strength across major platforms [20] Q&A Session Summary Question: Current status of AI workflow transformation and measurable gains in efficiency - Management indicated that AI technology has been leveraged to improve internal efficiency, particularly in digital asset management, but clear top-line impacts are still being defined [31][33] Question: Mid to long-term impact of AI on e-commerce and brand management - Management noted that AI is changing consumer behavior and is focused on enhancing operational efficiency, with no current partnerships with leading AI firms [40][44] Question: Growth expectations for Gap China and long-term vision - Management expects continued growth for Gap China, with plans to open over 50 stores and maintain a growth rate of around 20% in 2026 [46] Question: Impact of macroeconomic changes on operational strategies - Management stated that recent regulatory changes have not significantly affected day-to-day operations, and brands are diversifying strategies across platforms [52][54] Question: Development strategy for BBM in 2026 - Management confirmed that the strategy remains consistent, with increased confidence in BBM's growth and profitability, particularly for the Gap brand [56] Question: Capital allocation plan and shareholder returns - Management emphasized a focus on improving operational aspects to achieve positive net income for shareholders, with expectations for revenue increases in both BEC and BBM segments [60][64]

Financial Data and Key Metrics Changes - In 2025, the group's total revenue reached RMB 9.68 billion, representing a year-on-year decrease of 6% [6][23] - Revenue from office software and services was RMB 5.93 billion, up 16% year-on-year, while revenue from online games and other businesses was RMB 3.75 billion, up 28% year-on-year [6][23] - Gross profit margin decreased by 2 percentage points year-on-year to 81% [23] - Profit attributable to owners of the parent was RMB 2.00 billion for 2025, compared to RMB 1.75 billion for the previous year [23] Business Line Data and Key Metrics Changes - Kingsoft Office Group's total annual revenue reached RMB 5.93 billion, up 60% year-on-year, with fourth-quarter revenue of RMB 1.75 billion, up 17% year-on-year [7][8] - WPS individual business revenue reached RMB 3.63 billion, up 10% year-on-year, with fourth-quarter revenue of RMB 960 million, growing 14% year-on-year [9] - WPS 365 business revenue was RMB 720 million, up 65% year-on-year, with fourth-quarter revenue of RMB 210 million, up 16% year-on-year [10] - WPS software business revenue reached RMB 1.46 billion, up 15% year-on-year, with fourth-quarter revenue of RMB 530 million, up 16% year-on-year [12] Market Data and Key Metrics Changes - The cumulative number of annual paid individual users in domestic markets reached 6.2 million, up 11% year-on-year [9] - Monthly active users for WPS AI surpassed 18 million, presenting a year-over-year increase of 307% [9] - In overseas markets, the cumulative number of paying users grew significantly, with monthly active devices for the overseas PC version reaching 42.5 million, up 54% year-on-year [9] Company Strategy and Development Direction - The company is committed to technology empowerment, focusing on AI collaboration and internationalization [4] - Kingsoft Office Group is pursuing a dual-track approach, enhancing existing products while exploring new AI office paradigms [7] - The online game business aims to deepen expertise in classical IP and expand into diversified game categories and global markets [4][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for growth in the online gaming sector, particularly with the successful launch of new titles [15] - The company plans to deepen the application of AI agent technology in office environments and accelerate its international strategy [15] - Management acknowledged the challenges faced in the gaming sector but emphasized the importance of maintaining high-quality service and user engagement [32][36] Other Important Information - The company had cash resources of RMB 27 billion as of December 31, 2025 [24] - Net cash generated from operating activities was RMB 2.29 billion for the year ended December 31, 2025 [24] Q&A Session Summary Question: What strategic adjustments have been made regarding the future development of the gaming business? - Management indicated that the focus is on stabilizing user engagement and planning for future game versions to enhance daily active users [27][29] Question: Insights on the user base and retention metrics for Goose Goose Duck? - The game has over 30 million new users since launch, with a stable user base around 3 million [27][28] Question: What is the progress of the AI business and the development of industry-specific models? - The company has established an AI Product Center and is focusing on empowering different industries through AI [41][43] Question: How will Xiaomi's MiMo-V2 model enhance the WPS business? - Management emphasized the need to strengthen competitive capabilities and enhance the AI ecosystem in collaboration with Xiaomi [49][50]

Financial Data and Key Metrics Changes - In 2025, the company achieved its first-ever full-year non-GAAP profit, with adjusted net income reaching RMB 37.9 million, a significant turnaround from an adjusted net loss of RMB 96.3 million in 2024 [4][23] - Total revenues for Q4 2025 were RMB 643.5 million, down from RMB 859.2 million in Q4 2024, indicating a narrowing sequential decline and a clear recovery trajectory [24][26] - Marketing services revenue in Q4 2025 was RMB 234.8 million, up 24% sequentially, although down from RMB 315.9 million in the same period of 2024 [24][25] - Paid membership revenue was RMB 333.5 million in Q4 2025, compared to RMB 422 million in Q4 2024, with average monthly paid members at 12.2 million [25][26] - Gross profit for Q4 2025 was RMB 344.8 million, with a gross margin of 53.6%, down from 62.9% in Q4 2024 [26] Business Line Data and Key Metrics Changes - The company reported a substantial year-over-year growth in high-quality content creation, with daily creation rising over 20% in Q4 2025, contributing to over 31% growth for the full year [7][10] - Daily active high-tier creators grew by double digits year-over-year, with verified honored creators increasing by nearly 30% [9] - Revenue from IP-related projects increased by 21% year-over-year, supported by deeper brand collaborations [15] Market Data and Key Metrics Changes - The company noted a 140% year-over-year increase in participating clients at the Electric Club New Knowledge Technology Conference, indicating strong engagement from industry leaders [14] - AI-focused creators grew by approximately 16% for the full year, reflecting the increasing relevance of AI content [10] Company Strategy and Development Direction - The company aims to leverage its unique advantages in AI to scale AI-driven commercialization, focusing on expert data solutions and AI productivity tools [5][19] - A dual-track approach will be pursued, focusing on IP licensing and in-house incubation while exploring new AI-powered revenue models [20][22] - The company is committed to maintaining a disciplined approach to investments, concentrating on areas with visible ROI and strong alignment with its core strengths [35][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve profitability while focusing on growth opportunities created by AI [35] - The company plans to enhance user experience and community engagement through AI integration, with a focus on improving product capabilities [54] - The outlook for 2026 includes a commitment to stable core business operations while developing new AI revenue streams [43][54] Other Important Information - The company held RMB 4.5 billion in cash and cash equivalents as of December 31, 2025, down from RMB 4.9 billion a year earlier [29] - Throughout 2025, the company repurchased a total of 47.7 million Class A ordinary shares for an aggregate value of $90 million [29][30] Q&A Session Summary Question: What is your earnings outlook in 2026, and how to balance investment with cash flow and profitability? - Management emphasized that the company will focus on opportunities created by AI while maintaining bottom line discipline and not returning to a model of significant cash burn for growth [35] Question: What are the company's core priorities for 2026? - The strategy for 2026 centers on improving efficiency in the core community business through AI while developing new AI businesses with a focus on healthy cash flow [38][42] Question: Can management share data on the impact of AI on the Zhihu community? - AI has positively impacted user interactions, with significant increases in both core retained users and new users, enhancing content discovery and engagement [48][50]

Financial Data and Key Metrics Changes - Total revenue for 2025 reached RMB 5.38 billion, a 24.8% increase compared to RMB 4.31 billion in 2024 [6][23] - Store level EBITDA increased by 20.4% year-on-year to RMB 1 billion, with a margin of 18.6% compared to 19.3% in 2024 [7][19] - Adjusted net profit grew 43.3% to RMB 187.9 million, with margin improving to 3.5% from 3.0% in 2024 [8][33] Business Line Data and Key Metrics Changes - Store level operating profit increased by 18.5% to RMB 739.7 million, with a margin of 13.7% compared to 14.5% in 2024 [20][32] - Revenue from Tier 1 cities grew 5.2% year-over-year to RMB 2.22 billion, contributing 41.2% of total revenue [10][24] - Non-Tier 1 city markets saw revenue growth of 43.4% year-over-year, reaching RMB 3.17 billion, contributing 58.8% of total revenue [11][24] Market Data and Key Metrics Changes - Average daily sales per store declined by 5.3% year-over-year to RMB 12,428 in 2025 [25] - Delivery penetration in Tier 1 cities increased from 70.7% in 2024 to 76.2% in 2025 [18] - Delivery services are available across nearly 76% of the existing city footprint as of December 2025 [19] Company Strategy and Development Direction - The company plans to open 350 stores in 2026, with a disciplined expansion strategy focusing on both existing and new markets [21][22] - The strategy includes deepening penetration in existing cities while broadening reach into new markets [22] - The company aims to improve cost efficiency while scaling operations [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory despite short-term pressures from market dynamics [16][22] - The company noted strong customer loyalty and brand strength in Tier 1 cities, while non-Tier 1 cities have become the main growth engine [11][16] - Management highlighted the importance of product innovation and value propositions in maintaining customer engagement [17][19] Other Important Information - The company was recognized as a 2025 Best Employer by Mercer for the fourth consecutive year [20] - Cash position remained strong with RMB 1 billion in cash and cash equivalents as of December 31, 2025 [33] Q&A Session Summary Question: Could you please break down the same-store sales growth of mature stores in Tier 1 cities and newly entered cities? - Management noted that Tier 1 cities achieved positive same-store sales, with strong momentum in traffic but a decline in average selling price due to aggregator price wars [36][37] Question: What are the latest trends in same-store sales? - Management indicated that same-store sales were impacted by high base effects from previous store openings, but overall sales were meeting expectations [44][45] Question: How do you see the influence of aggregator subsidies going down? - Management acknowledged some impact from reduced aggregator subsidies but emphasized ongoing efforts to convert traffic to their own online channels [48][50] Question: What is the current delivery mix for non-Tier 1 cities? - Delivery services are currently available in about 76% of the footprint, with a delivery mix of approximately 30% in newly opened non-Tier 1 cities [52][53] Question: What is the outlook for gross profit margin given rising raw material prices? - Management stated that they have not seen significant pressure on costs and have several strategies in place to manage raw material costs effectively [58][59] Question: How does management plan to optimize labor costs moving forward? - Management explained that the increase in labor costs was due to expansion and higher delivery orders, but they are focused on improving efficiency through technology and operational improvements [64][66] Question: Can you break down the layout of the planned 313 new stores for 2026? - Management indicated that about 25% of the new stores will be in pre-2022 markets, 50% in already opened new markets, and 25%-30% in entirely new markets [70][71]

Financial Data and Key Metrics Changes - Total revenue for DPC Dash increased by 24.8% year-over-year to RMB 5.38 billion in 2025, up from RMB 4.31 billion in 2024 [25][26] - Adjusted EBITDA rose by 28.2% to RMB 634.6 million, with the margin expanding to 11.8% from 11.5% [9][34] - Adjusted net profit grew by 43.3% to RMB 187.9 million, with the margin improving to 3.5% from 3.0% in 2024 [9][35] - Reported profit attributable to owners of the company more than doubled to RMB 141.9 million [10][35] Business Line Data and Key Metrics Changes - Store level EBITDA increased by 20.4% year-over-year to RMB 1 billion, with a margin of 18.6%, down from 19.3% in 2024 [8][20] - Store level operating profit grew by 18.5% to RMB 739.7 million, with a margin of 13.7%, compared to 14.5% in 2024 [9][34] - Revenue from Tier 1 cities grew by 5.2% to RMB 2.22 billion, contributing 41.2% of total revenue [26][11] - Revenue from non-Tier 1 cities surged by 43.4% to RMB 3.17 billion, representing 58.8% of total revenue [26][12] Market Data and Key Metrics Changes - The company operated 517 stores in Tier 1 cities and 798 stores in non-Tier 1 cities as of year-end 2025, compared to 509 and 499 respectively at the end of 2024 [11] - Delivery penetration in Tier 1 cities increased from 70.7% in 2024 to 76.2% in 2025 [19] - Average daily sales per store decreased by 5.3% year-over-year to RMB 12,428 in 2025 [27] Company Strategy and Development Direction - The company plans to open 350 new stores in 2026, with a disciplined expansion strategy focusing on both existing and new markets [22][24] - The strategy includes a "go deeper and go broader" approach, allocating 25% of new stores to pre-2022 December markets, 50% to already opened new markets, and 25%-30% to new markets [74] - The company aims to enhance operational efficiency while scaling its presence and improving cost efficiency [24][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, citing strong fundamentals and brand momentum [16][24] - The company noted that while there are pressures from aggregator price wars, it continues to attract new customers and convert them to its own platform [51][52] - Management highlighted the importance of maintaining high service standards and the 30-minute delivery promise as competitive advantages [18][19] Other Important Information - The company launched several new products in 2025, which contributed to positive same-store sales in both Tier 1 and non-Tier 1 markets [16][17] - The loyalty program grew to 35.6 million members, up from 24.5 million a year earlier [20] - The company received recognition as a 2025 Best Employer by Mercer for the fourth consecutive year [22] Q&A Session Summary Question: Could you please roughly break down the same-store sales growth of the mature stores in Tier 1 cities and newly entered cities, based on traffic and ASP? - Management noted that Tier 1 cities achieved positive same-store sales, with strong momentum in traffic but a decline in ASP due to aggregator price wars. Newly entered markets saw a decline in traffic as new stores diluted average guest counts [38][39][40] Question: Could you share more on the latest trends regarding same-store sales? - Management indicated that same-store sales were impacted by high base effects from previous record-setting sales and noted that sales were meeting expectations despite some pressure from aggregator subsidy cuts [46][47] Question: How do you see the influence of the aggregator subsidies going down? - Management acknowledged some impact from reduced aggregator subsidies but emphasized ongoing efforts to convert traffic to their own platform and maintain strong product offerings [50][51] Question: What is the current delivery mix for non-Tier 1 cities, and what are the future plans? - Currently, the delivery mix in non-Tier 1 cities is about 30%, with plans to expand delivery services as capacity allows [55][56] Question: What is the outlook for gross profit margin given rising raw material prices? - Management stated that they have managed costs well and have several levers to control raw material costs, including increased scale and local procurement [61][62] Question: How does management plan to optimize labor costs moving forward? - Management explained that the increase in store-level staff costs was due to higher delivery orders and new store openings, but they are focused on improving efficiency through technology and operational improvements [67][69]