Hello Group Inc (MOMO) 2025 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the third quarter 2025 Hello Group Inc. Earnings conference call. (Operator Instructions) Please note this conference is being recorded today.

女士們、先生們，感謝各位的耐心等待，歡迎參加 Hello Group Inc. 2025 年第三季財報電話會議。（操作員說明）請注意，本次會議正在錄音。

I would now like to hand the conference over to your first speaker today, Ms. Ashley Jing. Thank you. Please go ahead, ma'am.

現在我謹將會議交給今天的第一位發言人，Ashley Jing 女士。謝謝。請便，女士。

Thank you, operator. Good morning and good evening, everyone. Thank you for joining us today for Hello Group's Third Quarter 2025 Earnings Conference Call. The company's results were released earlier today and are available on the company's IR website.

謝謝接線生。各位早安/晚安。感謝您今天參加 Hello Group 2025 年第三季財報電話會議。該公司業績報告已於今日早些時候發布，可在公司投資者關係網站上查閱。

On the call today are Mr. Tang Yan, CEO of the company; Ms. Zhang Sichuan, COO of the company; and Ms. Peng Hui, CFO of the company. We will discuss the company's business operations and highlights as well as the financials and guidance. We will all be available to answer your questions during the Q&A session that follows.

今天參加電話會議的有公司執行長唐彥先生、公司營運長張四川女士和公司財務長彭慧女士。我們將討論公司的業務營運和亮點，以及財務狀況和未來展望。在接下來的問答環節中，我們所有人都會回答您的問題。

Before we begin, I would like to remind you that this call may contain forward-looking statements made under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.

在開始之前，我想提醒各位，本次電話會議可能包含根據 1995 年《私人證券訴訟改革法案》安全港條款作出的前瞻性陳述。此類聲明是基於管理層當前的預期以及當前的市場和經營狀況，並涉及已知或未知的風險、不確定性和其他因素，所有這些因素都難以預測，其中許多因素超出公司的控制範圍，這可能導致公司的實際業績、表現或成就與前瞻性聲明中的內容存在重大差異。

Further information regarding this and other risks, uncertainties and factors is included in the company's filings with the U.S. Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under law.

有關此項及其他風險、不確定性和因素的更多信息，請參閱公司向美國證券交易委員會提交的文件。除法律另有規定外，本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性聲明的義務。

I will now pass the call over to our CFO, Ms. Zhang Sichuan. Ms. Zhang, please?

現在我將把電話轉交給我們的財務長張四川女士。張女士，請問？

Thank you. Hello, everyone. Thank you for joining our call. In Q3, our business faced some external challenges, but our team was able to respond proactively and achieve good results in both users and financial measures. Next, I will give you an update on execution of our strategic goals.

謝謝。大家好。感謝您參加我們的電話會議。第三季度，我們的業務面臨一些外部挑戰，但我們的團隊能夠積極應對，並在用戶和財務指標方面都取得了良好的結果。接下來，我將向大家報告我們策略目標的執行。

Starting with the financial performance for Q3 2025. Total group revenue was RMB2.65 billion, down 1% year-over-year. Domestic revenue reached RMB2.12 billion, down 10% year-over-year. while overseas revenue was RMB535 million, up 69% year-over-year. Adjusted operating income was RMB404 million, down 11% from Q3 last year, with a margin of 15.2%.

首先來看2025年第三季的財務表現。集團總收入為人民幣26.5億元，較去年同期下降1%。國內營收達人民幣21.2億元，年減10%；海外營收達人民幣5.35億元，較去年同期成長69%。調整後的營業收入為人民幣4.04億元，較去年第三季下降11%，利潤率為15.2%。

Our key priorities for 2025 include the following: for Momo, our goal is to maintain the productivity of this cash cow business with a helical ecosystem. For Tantan, the goal is to improve its core dating experience and build an efficient business model that drives profitable growth.

我們 2025 年的主要優先事項包括：對於陌陌而言，我們的目標是透過螺旋式生態系統來維持這項搖錢樹業務的生產力。對於探探來說，目標是改善其核心約會體驗，並建立一個能夠推動獲利成長的高效商業模式。

As for the new endeavors, our goal is to define our presence in the of overseas market, enrich our brand portfolio and build a long-term engine. And now let me walk you through the details. First, on the Momo app, we believe that a healthy social ecosystem is the financial of sustained and stabilizing our cash cow business.

至於新的舉措，我們的目標是明確我們在海外市場的地位，豐富我們的品牌組合，並打造長期發展的引擎。現在讓我來詳細介紹一下。首先，在陌陌應用程式上，我們認為健康的社交生態系統是維持和穩定我們現金牛業務的財務基礎。

Therefore, our product efforts are focused on optimizing the cat experience and creating better scenarios and tools for users. We fully roll out in-house developed (inaudible) features in the first half of the year. Data shows that the (inaudible) way of male users has increased as a result. It prove the team's exploration on leveraging AI technologies to upgrade social trading tools is tractable during the past year.

因此，我們的產品研發重點在於優化貓咪體驗，為使用者創造更好的場景和工具。我們將在今年上半年全面推出自主研發的（聽不清楚）功能。數據顯示，男性用戶的（聽不清楚）使用方式因此增加。這證明了該團隊在過去一年中利用人工智慧技術升級社交交易工具的探索是可行的。

In Q3, we updated the AI chat system model based on earlier tests by leveraging the platform's corpus -- the model was optimized to better align with users preferences and chatting style, thereby encouraging more users to adopt the AI chat assistance content suggestion during the ongoing conversations.

第三季度，我們利用平台的語料庫，根據早期的測試結果更新了 AI 聊天系統模型——該模型經過優化，能夠更好地與用戶的偏好和聊天風格相契合，從而鼓勵更多用戶在對話過程中採用 AI 聊天輔助內容建議。

We have increased exposure to this feature to improve its penetration rates on the platform, enabling more users to benefit from it. The optimization of the AI has a system model and is in platform promotion had improved the female user experience driving ongoing quarter-over-quarter increase in various user measures, such as number of two way chat, the rate of in-depth chats and user retention, et cetera.

我們加大了對此功能的宣傳力度，以提高其在平台上的滲透率，使更多用戶能夠從中受益。人工智慧的最佳化具有系統模型，並且在平台推廣中，提高了女性用戶體驗，推動了各種用戶指標（如雙向聊天次數、深度聊天率和用戶留存率等）的持續季度環比增長。

On the user acquisition front, we dynamically address this channel allocation based on their ROI performance to ensure 100% ROI. Over the past year, although the shift to our profit-oriented channel strategy brought to the tune of large number of ultra loans ending users. It improved the platform's overall profitability by reducing user acquisition, expenditure with negative returns.

在用戶獲取方面，我們會根據通路的投資報酬率動態調整通路分配，以確保 100% 的投資報酬率。過去一年，儘管我們轉向以獲利為導向的通路策略，帶來了大量的超額貸款終端用戶。它透過減少用戶獲取成本和負收益支出，提高了平台的整體獲利能力。

As of Q3, the impact of reduced channel investment and paying users has bottomed out. The multiple new gifting features we introduced in audio-based scenario led by chat rooms drove a paying ratio increased, driving the number of paying users to increase by RMB200,000 quarter-over-quarter to RMB3.7 million in Q3.

截至第三季度，通路投資和付費用戶減少的影響已經觸底。我們在以聊天室為主導的音訊場景中推出的多項全新送禮功能，推動了付費率的提升，使得第三季付費用戶數量環比增長20萬元人民幣，達到370萬元人民幣。

Although the reduction in user acquisition something has led to a slight year-over-year decrease in overall user scale. Momo social fundamental remains robust. Thanks to the product upgrades and the recommendation algorithm optimization, which has enhanced the user experience. User engagements continue to grow within a healthy social ecosystem.

儘管用戶獲取量的減少導致整體用戶規模較去年同期略有下降。陌陌的社交基本面依然強勁。由於產品升級和推薦演算法優化，用戶體驗得到了提升。在健康的社交生態系統中，使用者參與度持續成長。

According to an independent report released by Crest Mobile 2025 male consumer Market Insights in June. Momo as a 40-year-old social brands remain the top (inaudible) choice for mall users age 30 to 40.

根據 Crest Mobile 於 6 月發布的 2025 年男性消費者市場洞察獨立報告。擁有 40 年歷史的 Momo 作為社交品牌，仍然是 30 至 40 歲購物中心用戶的首選（聽不清楚）。

This clearly shows that Momo has established strong brand loyalty among high-value users in with substantial spending power. We believe this is a valuable asset that company will continue to nurture and benefit from for years to come. Now on the productivity of Momo cash cow business. In Q3, Momo's value-added service revenue in RMB1.79 billion, down 11% year-over-year and 3% quarter-over-quarter.

這清楚地表明，陌陌已經在具有強大消費能力的高價值用戶群體中建立了強大的品牌忠誠度。我們相信這是一項寶貴的資產，公司將繼續培育這項資產，並在未來幾年從中受益。現在來談談陌陌現金牛業務的生產力。第三季度，陌陌增值服務收入為人民幣17.9億元，年減11%，季減3%。

As we indicated last quarter, the new tax requirements came out at the end of June, coupled with the local tax authorities inspection of agencies since Q3 have really impacted the operation focus of some broadcasters and agencies on our platform, leading to a significant revenue decline in revenue in audio and video-based scenario.

正如我們上個季度所指出的，新的稅收要求於 6 月底出台，加上地方稅務機關自第三季度以來對各機構的檢查，確實影響了我們平台上一些廣播公司和機構的運營重點，導致音頻和視頻場景的收入大幅下降。

To elevate supply-side pressure, we roll out a new revenue-sharing policy in August, providing appropriate subsidies to broadcasters and agencies that were really affected by tax changes. The policy has some encouraging effects, but it couldn't fully offset the negative impact from the tax burden in the short term.

為了提升供給面壓力，我們將在8月推出新的收益分成政策，向受稅收變化真正影響的廣播公司和機構提供適當的補助。該政策取得了一些令人鼓舞的效果，但短期內無法完全抵消稅負帶來的負面影響。

Turning to Tantan. As of the end of Q3, Tantan has 0.7 million paying users broadly in line with last quarter. The pressure on the paying ratio caused by last year's product upgrade was fully released after the complete rollout of the pilot in Q2.

轉向探探。截至第三季末，探探擁有 70 萬付費用戶，與上一季基本持平。去年產品升級帶來的支付比率壓力在第二季試辦全面推出後完全釋放。

In Q3, the team drove a slight recovery in the paying ratio by adjusting the monetization strategy. Turning to Tantan's financials. Revenue from the onshore business in Q3 was RMB150 million, down 15% up 30% year-over-year and 5% quarter-over-quarter. The revenue decrease was due to the decline in number of paying users but ARPU significantly increased 25% year-over-year and 6% quarter-over-quarter.

第三季度，團隊透過調整獲利策略，推動付費率略有回升。接下來來看看探探的財務狀況。第三季境內業務收入為人民幣1.5億元，較去年同期下降15%，較去年同期成長30%，較上季成長5%。收入下降是由於付費用戶數量減少，但每用戶平均收入年增 25%，季增 6%。

At the parlor level, we continue to refine our strategy on optimizing the experience for female users, which includes establishing a curated recommendation pool for newly registered user -- female users improve their white quality and providing highly attractive female users with a more diverse mouth recommendation to enrich their matching options and implementing an overheating protection mechanism to prevent excessive matches that may affect the current interactions.

在美容院層面，我們繼續完善優化女性用戶體驗的策略，包括為新註冊用戶建立精選推薦池，提升女性用戶的膚色質量，為極具吸引力的女性用戶提供更多樣化的口腔推薦，以豐富她們的匹配選擇，並實施過熱保護機制，防止過度匹配影響當前互動。

For male users, we optimize backend recommendation rules by adjusting their exposure concentration. Both enhancement in female user experience and now user recommendation algorithm has driven quarter-over-quarter growth in several key user metrics, such as state one retention average life of average number of light for users and DAU among new users.

對於男性用戶，我們透過調整他們的曝光濃度來優化後端推薦規則。女性用戶體驗的提升以及現在的用戶推薦演算法，都推動了幾個關鍵用戶指標的季度環比增長，例如用戶平均留存率、平均壽命、平均燈光數量以及新用戶的每日活躍用戶數。

At the amortization level, we introduced basic products such as unlimited white privilege pack to fill the gap in low-tier membership offering. Regarding the algorithm, we slightly adjusted the matching rate for high potential paying users to improve their conversion to pay.

在攤銷層面，我們推出了無限白金特權包等基礎產品，以填補低級會員產品的空白。關於演算法方面，我們稍微調整了高潛力付費用戶的匹配率，以提高他們的付費轉換率。

In Q3, although our focus on acquiring higher-quality user groups led to a sequential increase in unit acquisition costs. The restructuring of our new membership system combined with the algorithm optimization growth app growth, pushing Tantan's channel ROI to a record high.

第三季度，儘管我們專注於獲取更高品質的用戶群體，導致單位獲取成本環比增加。我們新的會員制度重組，加上演算法最佳化和應用成長，推動探探的通路投資報酬率達到歷史新高。

As a result, despite pressure on user scale and revenue, Tantan achieved significantly significant year-on-year and quarter-on-quarter profit growth, creating more room for our data products to exploration tailored to Asian users. Lastly, overseas business, in Q3, revenue reached RMB535 million, up year-over-year and 21% quarter-over-quarter.

因此，儘管用戶規模和收入面臨壓力，探探仍實現了顯著的同比和環比利潤增長，為我們針對亞洲用戶量身定制的數據產品探索創造了更多空間。最後，海外業務方面，第三季營收達到人民幣5.35億元，較去年同期成長，季增21%。

Overseas revenue accounted for 20% of the group's revenue compared to 12% in the same period of last year. In Q3, overseas revenue growth mainly came from audio and video social products in the MENA region. Among them, Yahalan and Ammar continue to enhance product features by improving localized operations and strengthening product and partnerships driving a steady increase in both number of paying users and ARPU.

海外收入佔集團總收入的20%，而去年同期這一比例為12%。第三季度，海外收入成長主要來自中東和北非地區的音訊和視訊社交產品。其中，Yahalan 和 Ammar 透過改善本地化營運和加強產品及合作夥伴關係，不斷增強產品功能，從而推動付費用戶數量和 ARPU 穩步成長。

On the user acquisition front, during the first half of the year, we absorbed a rapid rising user acquisition costs, while scaling up channel investments in new products. So we slowed down our marketing efforts and try to find a scalable solution that can also balance ROI.

在用戶獲取方面，今年上半年，我們承受了用戶獲取成本的快速成長，同時增加了對新產品的通路投資。因此，我們放慢了行銷力度，並嘗試尋找可擴展的解決方案，同時也能平衡投資報酬率。

In Q3, our channel experiment shows initial success, so we moderately increased channel spending and accelerated revenue growth. Meanwhile, [Sochio], our largest audio-based show-show product in MENA region optimize its marketing strategy by increasing investment proportion in high-value countries, driving a substantial growth in both revenue and profit.

第三季度，我們的通路試驗取得了初步成功，因此我們適度增加了通路支出，加快了收入成長。同時，我們在中東和北非地區最大的音頻節目產品[Sochio]透過增加在高價值國家的投資比例來優化其行銷策略，從而推動收入和利潤的大幅成長。

Except for these three audio-based product, we have recently begun testing the expansion of audio and video-based soto entertainment product into other high ARPU regions such as the Gulf countries and Japan. We hope this effort will become our growth drivers for the group in the future. on our audio video social products in the MENA region.

除了這三款音訊產品外，我們最近也開始測試將音訊和視訊娛樂產品擴展到其他高 ARPU 地區，例如海灣國家和日本。我們希望這項努力能夠成為未來集團在中東和北非地區音訊、視訊和社交產品方面的成長動力。

Another key segment for our overseas business, the dating product line focused on developed markets. also delivered strong performance. Tantan International returned to sequential growth for the first time in the year following a full year of product adjustments and rebranding executed by our Singapore team.

我們海外業務的另一個關鍵板塊——面向已開發市場的約會產品線——也取得了強勁的業績。經過新加坡團隊一整年的產品調整和品牌重塑，探探國際在年內首次恢復了連續成長。

Additionally, we completed the acquisition of our European dating product happn at the end of Q3. Happn founded in Paris, France primarily leverage location-based services to facilitate online to offline dating experiences for users, which happened during our portfolio, the group product landscape now officially extend to Europe further in retrain the diversity of our overseas dating products.

此外，我們在第三季末完成了對歐洲約會產品 happn 的收購。Happn 成立於法國巴黎，主要利用基於位置的服務為用戶提供線上到線下的約會體驗。在我們拓展產品組合的過程中，集團產品格局正式擴展到歐洲，進一步豐富了我們海外約會產品的多樣性。

We believe that the high-quality data in brand like happened, which originated in western developed world have significant growth potential in Asia Pacific region. In the past, these brands will constrain by limited resources, and insufficient localization expertise preventing them from fully realized entire potential in the Asia Pacific region.

我們認為，源自西方已開發國家的高品質品牌數據在亞太地區具有巨大的成長潛力。過去，這些品牌會受到資源有限和在地化專業知識不足的限制，因此無法在亞太地區充分發揮其全部潛力。

We hope that the combination of Hello Groups and this brand will fully unleash that potential. We have enough patience and commitment to create a high-quality data experience for young people in China and Asia. We are confident that these dating brands will inject new momentum into the group's future.

我們希望 Hello Groups 與這個品牌的結合能夠充分釋放其潛力。我們有足夠的耐心和決心，為中國和亞洲的年輕人創造高品質的數據體驗。我們相信，這些約會品牌將為集團的未來注入新的動力。

This concludes my remarks. Now let me pass the call over to Cathy for the financial review.

我的發言到此結束。現在我把電話交給凱西，讓她進行財務審查。

Thanks, Sic. Hello, everyone. Thank you for joining our conference call today. Now let me take you through the financial review. Total revenue for the third quarter 2025 was RMB2.65 billion, down 1% year-on-year, but up 1% quarter-on-quarter.

謝謝，Sic。大家好。感謝您今天參加我們的電話會議。現在讓我帶您了解財務狀況。2025年第三季總營收為人民幣26.5億元，年減1%，但較上季成長1%。

Non-GAAP net income attributable to the company was RMB44.5 million, compared to RMB493.3 million in the same period of 2024, and RMB451.9 million in the previous quarter, excluding a one-off tax expense item. Looking into the key revenue items for Q3. Total revenue from value-added services for the third quarter of 2025 was RMB2.61 billion, down 1% year-on-year, but up 1% quarter-on-quarter.

歸屬於公司的非GAAP淨利為人民幣4,450萬元，而2024年同期為人民幣4.933億元，上一季為人民幣4.519億元（不含一次性稅項支出）。分析第三季主要營收項目。2025年第三季增值服務總營收為人民幣26.1億元，較去年同期下降1%，較上季成長1%。

On a user geography basis, PRC Mainland value-added services revenue was RMB2.8 billion, down 11% year-over-year and 3% quarter-over-quarter. The decrease was primarily attributable to three factors. Number one, test scrutiny on certain broadcasters and agencies which distracted their operational focus. Number two, softened consumer sentiment driven by macro factors.

依用戶地理位置劃分，中國大陸加值服務收入為人民幣28億元，較去年同期下降11%，較上季下降3%。這一下降主要歸因於三個因素。第一，對某些廣播公司和機構進行測試審查，這分散了他們的營運注意力。第二，宏觀因素導致消費者信心疲軟。

And number three, a decline in paying users on compound. SaaS overseas revenue came in at RMB533.1 million, up 69% year-over-year and 21% quarter-over-quarter. The year-over-year and sequential growth was mainly driven by rapid expansion from multiple social entertainment as well as dating brands across our rich portfolio.

第三，Compound 的付費用戶數量下降。SaaS 海外收入達人民幣 5.331 億元，年增 69%，季增 21%。年成長和環比成長主要得益於我們豐富的產品組合中多個社交娛樂和約會品牌的快速擴張。

Turning to cost and expenses. Non-GAAP cost of revenue for the third quarter of 2025 was RMB1.65 billion, compared to RMB1.62 billion for the same period last year. Non-GAAP gross margin for the quarter was 37.6%, down 1.7 percentage points from the year ago period.

接下來討論成本和費用。2025 年第三季非 GAAP 收入成本為 16.5 億元，去年同期為 16.2 億元。本季非GAAP毛利率為37.6%，較去年同期下降1.7個百分點。

The decrease was primarily attributable to two factors: number one, the deliberately higher paying payout ratio for the Momo business to ease supply side pressure amid tax scrutiny. Number two, a structural revenue shift towards overseas markets, which payment or payment channel costs represent a higher percentage of revenue.

下降主要歸因於兩個因素：第一，為了在稅務審查期間緩解供應方面的壓力，陌陌業務故意提高了支付率。第二，收入結構向海外市場轉移，而海外市場的支付或支付管道成本在收入中所佔比例較高。

Non-GAAP R&D expenses for the third quarter was RMB170.6 million compared to RMB185.4 million for the same period last year. representing an 8% decrease year-over-year. The decrease was attributed to personnel optimization.

第三季非GAAP研發費用為人民幣1.706億元，去年同期為人民幣1.854億元，較去年同期下降8%。人員減少的原因歸結於人員優化。

Non-GAAP R&D expenses as a percentage of revenue was 6% and compared with 7% from the year ago period. We ended the quarter with 1,386 coil employees compared to 1,355 from a year ago. R&D personnel as a percentage of total employees for the group was 57% compared to 61% from Q3 last year. Non-GAAP sales and marketing expenses for the third quarter was RMB335.9 million compared to RMB350.1 million for the same period last year. both representing 13% of total revenue.

非GAAP研發費用佔營收的百分比為6%，去年同期為7%。本季末，我們的線圈員工人數為 1,386 人，去年同期為 1,355 人。集團研發人員佔員工總數的比例為 57%，去年第三季為 61%。第三季非GAAP銷售和行銷費用為人民幣3.359億元，去年同期為人民幣3.501億元，兩者均佔總收入的13%。

The year-over-year increase in sales and marketing expenses was attributable to the ongoing cost control strategy for the DRC and businesses, where both Momo and Tantan narrowed their marketing spend. This decrease was partially offset by the increase in channel investment for the overseas app. Non-GAAP G&A expenses was RMB91.0 million for the third quarter compared to RMB85.2 million for the same quarter last year both representing 3% of total revenue, respectively.

銷售和行銷費用較去年同期增加，是由於剛果民主共和國和各業務部門持續實施成本控制策略，陌陌和探探都縮減了行銷支出。海外應用程式通路投資的增加部分抵消了這一下降。第三季非GAAP一般及行政費用為人民幣9,100萬元，去年同期為人民幣8,520萬元，兩者分別佔總收入的3%。

Non-GAAP operating income was RMB404.0 million with a margin of 15.2% compared with RMB454.7 million with a margin of 17% from the same period last year. Non-GAAP OpEx as a percentage of total revenue was 23%, same as Q3 2024. Now briefly on income tax expenses. Total income tax expenses was RMB [69.0] million for the quarter with an effective tax rate of 14%.

非GAAP營業收入為人民幣4.04億元，利潤率為15.2%，去年同期為人民幣4.547億元，利潤率為17%。非GAAP營運支出佔總營收的23%，與2024年第三季相同。現在簡單介紹一下所得稅費用。本季所得稅總支出為人民幣[69.0]百萬元，實際稅率為14%。

In Q3, the company accrued withholding income tax of RMB24.5 million which is 10% of undistributed profit generated by our ROFE. Without withholding tax, our estimated non-GAAP effective tax rate was around 9% in the third quarter. Now turning to balance sheet and cash flow items.

第三季度，公司提列預提所得稅人民幣2,450萬元，相當於我們ROFE產生的未分配利潤的10%。不計預扣稅，我們估計第三季的非GAAP實際稅率約為9%。現在來看資產負債表和現金流量表項目。

As of September 30, 2025, Hello Group's cash, cash equivalents, short-term deposits, long-term deposits reinvestments and restricted cash totaled RMB8.86 billion compared to RMB14.73 billion as of December 31, 2024.

截至2025年9月30日，Hello Group的現金、現金等價物、短期存款、長期存款再投資和受限現金總額為人民幣88.6億元，而截至2024年12月31日為人民幣147.3億元。

The decrease in cash reserves was primarily attributable to three factors: number one, repayment of RMB4.41 billion bank loans, including accrued interest. Number two, payment of special cash dividends totaling RMB346 million to our shareholders.

現金儲備減少主要歸因於三個因素：第一，償還人民幣44.1億元的銀行貸款，包括應計利息。第二，向股東派發特別現金股利共計人民幣3.46億元。

In Q2, and number three, a one-off with home tax payment of RMB356 million in September, which was previously communicated during our last earnings call. Net cash provided by operating activities in the third quarter 2025 was RMB143.5 million, gap between operating cash flow and non-GAAP net income was primarily attributable to the payment of the above-mentioned withholding tax.

第二季第三項是9月一次性支付的人民幣3.56億元的國內稅款，這筆款項已在我們上次財報電話會議上公佈。2025年第三季經營活動產生的現金流量淨額為人民幣1.435億元，經營現金流量與非GAAP淨利之間的差距主要歸因於支付上述預提稅款。

Lastly, on business outlook. We estimated our fourth quarter revenue to come in the range from RMB2.52 billion to RMB2.62 billion, representing a decrease of 4.4% and to 0.6% year-on-year. This is based on the assumption that on a year-over-year basis, revenue from our Mainland China business will decline by mid- to low teens percentage-wise while overseas revenue is expected to maintain a growth rate similar to that seen in Q3.

最後，談談商業前景。我們預計第四季營收將在人民幣25.2億元至26.2億元之間，年減4.4%，年減0.6%。這是基於這樣的假設：與去年同期相比，我們中國大陸業務的收入將下降15%到10%左右，而海外收入預計將保持與第三季類似的成長率。

Please be mindful that this forecast represents the company's current and preliminary view on the market and operational conditions, which are subject to change. That concluded our prepared portion of today's discussion.

請注意，此預測代表公司目前對市場和營運狀況的初步看法，這些看法可能會改變。今天我們準備好的討論部分到此結束。

With that, let me turn the call back to Ashley to start Q&A. Ashley, please.

那麼，現在讓我把電話轉回給艾希莉，開始問答環節。艾許莉，拜託了。

Just a quick reminder before we take the questions. For those who can speak Chinese, please ask your questions in Chinese first, followed by English translation by yourself. Thank you. Operator, we're ready to take questions.

在回答問題之前，先簡單提醒一下。會說中文的朋友，請先用中文提問，然後再自行翻譯成英文。謝謝。接線員，我們已準備好接受提問。

(Operator Instructions)

（操作說明）

Thomas Chong, Jefferies LLC.

Thomas Chong，傑富瑞有限責任公司。

(spoken in foreign language)

（用外語說）

(interpreted) During the prepared remarks, management highlights, Momo is affected by tax issue from the supply side and adjust the revenue sharing ratio. Can management comment about the latest progress of the adjustment? And how should we think about the margin impact.

（翻譯）在準備好的發言中，管理層強調，陌陌受到供給側稅務問題的影響，並調整了收入分成比例。管理階層能否就調整工作的最新進度作個說明？我們該如何看待利潤率的影響？

On the other hand, can management also provide some more color why our peers didn't mention a similar issue. On the guidance we've just given this is about low teens year-on-year decline for Momo. So just for the full year. So how should we think about the revenue trend for this cash cow business as we come into 2026? Thank you.

另一方面，管理階層能否進一步解釋為什麼我們的同行沒有提到類似的問題？根據我們剛才給的指導意見，陌陌的年減幅度約為十幾個百分點。所以只是一整年。那麼，展望2026年，我們該如何看待這個「搖錢樹」業務的營收趨勢呢？謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) Okay. Let me translate. At the end of Q2, tax authorities introduced policy adjustments related to the flexible workforce, which officially took effect on October 1. For Momo, these adjustments primarily affect some mid-tier broadcasters and agencies in our audio and net-based scenarios. And shortly after the adjustments were announced regional tax authorities in certain areas reached out to their local MCMs to clarify implementation details.

（翻譯）好的。讓我來翻譯。第二季末，稅務機關推出了與彈性就業相關的政策調整，並於 10 月 1 日正式生效。對於 Momo 而言，這些調整主要影響我們音訊和網路場景中的一些中型廣播公司和機構。調整措施公佈後不久，某些地區的稅務機關就與當地的稅務經理聯繫，以澄清實施細節。

And this led to a noticeable decline in work enthusiasm among supply side. even before the adjustments were formally effective, resulting in revenue pressure for Momo app in the third quarter. Momo has maintained a relatively low revenue sharing ratio to broadcasters and agencies compared to our peers, thanks to our unique social attribute and agencies and broadcasters are willing to accept this lower ratio while still making considerable income.

這導致供應方員工的工作熱情明顯下降，甚至在調整正式生效之前就已出現這種情況，給陌陌應用第三季度的營收帶來了壓力。與同業相比，陌陌一直保持著相對較低的收入分成比例，這得益於我們獨特的社交屬性，而且代理商和廣播公司也願意接受這種較低的分成比例，同時還能獲得可觀的收入。

However, this characteristic made some made them particularly vulnerable to these recent tax changes and especially some mid-tier agencies to protect the reasonable income level of our supply-side partners. In August, we adjusted revenue sharing policy for the group's mostly affected by the tax changes. This initiative led to a modest sequential revenue recovery in September compared to July and August.

然而，這項特點使得一些機構，尤其是一些中型機構，特別容易受到近期稅收變化的影響，從而保護我們供應方合作夥伴的合理收入水準。8 月份，我們調整了受稅收變化影響最大的集團的收入分成政策。與 7 月和 8 月相比，這項舉措使得 9 月的收入環比略有回升。

However, entering Q4 with the formal implementation of the tax policy adjustment and tightened regulatory oversight of the agency's tax compliance, we have observed further pressure on certain agencies and broadcasters and to partially offset these impacts, we have further increased the revenue sharing support for the supply side.

然而，隨著第四季度稅收政策調整的正式實施以及對該機構稅收合規性監管的加強，我們觀察到某些機構和廣播公司面臨更大的壓力，為了部分抵消這些影響，我們進一步增加了對供應方的收入分成支持。

And this additional concessions are expected to reduce the group's gross margin by approximately 1 percentage points to 2 percentage points in the second half of 2025. On the revenue front, we had originally expected the year-on-year decline in the domestic revenue in the second half to narrow compared to the first half. However, based on the Q3 actual results and our Q4 current outlook, this improvement has not materialized to the extent anticipated.

預計這些額外的讓步將使該集團 2025 年下半年的毛利率下降約 1 個百分點至 2 個百分點。在營收方面，我們原本預計下半年國內營收年減將比上半年收窄。然而，根據第三季的實際業績和我們對第四季的當前展望，這項改善並未達到預期的程度。

Furthermore, I would like to echo earlier remarks. As one of the China's earliest mobile social platform, Momo has maintained strong brand vitality to this day, driven by continuous product innovation and back-end algorithm optimization. Core engagement metrics such as tooling messages, in-depth, chat rates and user retention have continued to improve steadily.

此外，我想重申先前的觀點。作為中國最早的行動社交平台之一，陌陌憑藉著持續的產品創新和後端演算法優化，至今仍保持著強勁的品牌活力。工具訊息量、深度互動量、聊天率和用戶留存率等核心用戶指標持續穩定提升。

In Q3, the launch of new scenarios, particularly audio and video chats, contributed to a steady increase in the number of paying users. This not only reflects continuous improvement -- improving connection efficiency between the platform and our users but also validates Momo's solid operational foundation and product innovation capabilities within this open social field.

第三季度，新場景的推出，特別是語音和視訊聊天功能的上線，推動了付費用戶數量的穩定成長。這不僅反映了我們持續改善──不斷提昇平台與使用者之間的連結效率，也驗證了陌陌在開放社群領域紮實的營運基礎與產品創新能力。

And coupled with our profit-oriented strategy and the team's effective cost control, we are fully confident that Momo will continue to deliver meaningful profit and operating cash flow to the group. And for specific figures, I will hand over to Cathy.

憑藉我們以獲利為導向的策略以及團隊有效的成本控制，我們完全有信心陌陌將繼續為集團帶來可觀的利潤和營運現金流。具體數據，我將交給凱西。

However, entering Q4, with the formal implementation of the tax policy adjustment and tightened the regulatory oversight of the agency's tax compliance. We have observed further pressure on certain agencies and broadcasters, and to partially offset this impacts, we have further increased the revenue sharing support for the supply side.

然而，進入第四季度，隨著稅收政策調整的正式實施以及對機構稅務合規監管的加強，我們觀察到部分機構和廣播公司面臨更大的壓力。為了部分抵銷這些影響，我們進一步增加了供給面的收入分成支援。

And this additional concessions are expected to reduce the group's gross margin by approximately 1 percentage to 2 percentage points in the second half of 2025. On the revenue front, we had originally expected the year-on-year decline in the domestic revenue, in the second half, to narrow compared to the first half.

預計這些額外的讓步將使該集團 2025 年下半年的毛利率下降約 1 至 2 個百分點。在營收方面，我們原本預計下半年國內營收年減將比上半年收窄。

However, based on the Q3 actual results and our Q4 current outlook, this improvement has not materialized to the extent anticipated. Furthermore, I would like to echo ix earlier remarks. As one of China's earliest mobile social platform, Momo has maintained strong brand vitality to this day, driven by continuous product innovation and back and algorithm optimization. Care engagement matrix, such as two-way messages, in-depth chat rates, and user retention have continued to improve steadily.

然而，根據第三季的實際業績和我們對第四季的當前展望，這項改善並未達到預期的程度。此外，我想重申 ix 之前的評論。作為中國最早的行動社交平台之一，陌陌憑藉著持續的產品創新和後端及演算法優化，至今仍保持著強大的品牌活力。護理互動指標（如雙向訊息、深度聊天率和用戶留存率）持續穩定提升。

In Q3, the launch of a new scenarios, particularly audio and video chats, contributed to a steady increase in the number of paying users. This not only reflects continuous improvement, improving, connection efficiency between the platform and our users, but also validates more and more solid operational foundation and product innovation capabilities within this open social field.

第三季度，新場景的推出，特別是音訊和視訊聊天，促進了付費用戶數量的穩定成長。這不僅體現了平台與用戶之間持續改進、提升連接效率，也驗證了我們在這一開放社交領域中日益穩固的營運基礎和產品創新能力。

And coupled with our profit oriented strategy and the team's effective cost control, we are fully confident that Walmart will continue to deliver meaningful profit and operating cash flow to the group.

憑藉我們以獲利為導向的策略和團隊有效的成本控制，我們完全有信心沃爾瑪將繼續為集團帶來可觀的利潤和營運現金流。

And for specific figures, I will hand over to Cathy.

具體數字，我將交給凱西來解答。

Okay. I'll look for the 2026 for domestic business, Thomas, you're right that based on our Q4 guidance for the full year 2025, our domestic business, including both Momo and Tantan is on track for a low teen percentage decline versus 2024.

好的。Thomas，我會關注 2026 年國內業務的情況。你說得對，根據我們對 2025 年全年的第四季度預測，包括陌陌和探探在內的國內業務，與 2024 年相比，預計會出現十幾個百分點的下滑。

At the beginning of 2025, we had expected that exit rate of year-over-year decline to narrow to somewhere around or even slightly below 10%. That didn't happen because the tax group starting in Q3 had a meaningful negative impact on the supply side and before on revenue as well. That headwind was concentrated in the second half of 2025.

2025 年初，我們曾預期年減的退出率將收窄至 10% 左右甚至略低於 10%。這種情況沒有發生，是因為從第三季開始的稅務部門對供應方面產生了顯著的負面影響，而且在此之前也對收入產生了負面影響。這種不利因素主要集中在 2025 年下半年。

In our guidance, we assume that the domestic business is going to exit 2025 with somewhere around 13% year-over-year decline. So if you take that exit weight apply normal seasonality and roll that forward throughout 2026, what you will likely see is the -- in the first half of 2026, domestic revenue will probably still show a similar mid- to low teens year-over-year decline.

在我們的預測中，我們假設國內業務到 2025 年底將年減約 13%。因此，如果您採用該退出權重，請應用正常的季節性因素，並將其滾動到 2026 年，您可能會看到——在 2026 年上半年，國內收入可能仍將呈現類似的 15% 到 10% 的同比下降。

As we move into the second half of '26, the year-over-year decline is likely to naturally narrowed down. That's simply because the bulk of the negative tax-related impact hit the second half of 2025, creating an easier comp base for next year.

隨著我們進入 2026 年下半年，同比降幅可能會自然收窄。這主要是因為大部分與稅收相關的負面影響都集中在 2025 年下半年，為明年創造了一個更容易計算的薪酬基數。

So that's the modeling perspective. But remember that what math gives you is always going to be influenced one way or another by reality. And here are three fundamental factors I can highlight for you to address your model accordingly based on how you think realities will unfold in 2026.

以上就是建模方面的觀點。但請記住，數學得出的結果總是會受到現實的某種影響。以下是我可以重點介紹的三個基本因素，以便您可以根據自己對 2026 年現實發展的預期，相應地調整您的模型。

The first factor is always going to be platform fundamentals. On that front, both Momo and Tantan are in a much better position today. Momo's paying user count, as you can see, after a prolonged period of decline stabilized and grew in Q3, we expect that trend to continue into Q4.

首要因素始終是平台的基本面。在這方面，陌陌和探探如今的處境都好得多。如您所見，陌陌的付費用戶數量在經歷了長期的下滑後，於第三季度趨於穩定並成長，我們預計這一趨勢將在第四季度繼續下去。

Much of that is driven by the long-tail use cases we've added, including one-to-one video and audio chat. Tantan, after spending the last couple of years improving user experience, is also moving in the right direction. So fundamentally, the platforms are solid, and this is not where we see major risk as we head into 2026. And then comes the second important fundamental factor that you need to consider, which is macro and consumer sentiment.

這很大程度上是由我們新增的長尾用例所推動的，包括一對一視訊和音訊聊天。探探在過去幾年致力於提升使用者體驗，目前也正朝著正確的方向發展。因此，從根本上講，這些平台是穩固的，我們認為在邁向 2026 年的過程中，這方面不會有重大風險。接下來要考慮的第二個重要基本因素是宏觀經濟和消費者情緒。

For domestic value-added service, the macro environment in China and overall consumer sentiment remain the biggest swing factors for us. If sentiment improves, we can outperform the seasonality-based model. If not, you would probably need to adjust estimates modestly downward.

對於國內加值服務而言，中國的宏觀環境和整體消費者情緒仍然是我們面臨的最大波動因素。如果市場情緒好轉，我們的預測結果將優於基於季節性的模型。否則，您可能需要略微下調估算值。

And the third factor, as always, is regulatory and taxation environment. Operating and product at regulations have been relatively stable for the past year. The near-term headwind is mostly concentrated on the taxation side. As we adjust payouts, agencies are pure satisfied with the profit level, they can retain on our platform. If that stability continues we can be more constructive about the revenue trend in 2026.

第三個因素，一如既往，是監管和稅收環境。過去一年，營運和產品監管方面相對穩定。短期內的不利因素主要集中在稅收方面。隨著我們調整支付方式，代理商對他們在我們平台上所能獲得的利潤水準感到非常滿意。如果這種穩定性能夠持續下去，我們就可以對 2026 年的收入趨勢做出更積極的預測。

So if you put everything altogether, if you take the Q4 2025 rate exit rate of roughly 13% decline for domestic business and layer in normal seasonality, you would probably arrive at roughly 10% decline for full year 2026. Then depending on macro be it economic or regulatory, you would adjust that outlook up or down. That's what I can point to at this point, about 2026.

因此，如果把所有因素綜合起來，假設 2025 年第四季國內企業退出率下降約 13%，再加上正常的季節性因素，那麼 2026 年全年可能會下降約 10%。然後根據宏觀經濟或監管形勢，向上或向下調整此預期。就目前而言，我能預測的大概是 2026 年的情況。

With that, back to Ashley to take the next question.

接下來，讓我們把鏡頭切回給艾希莉，讓她回答下一個問題。

Jenny Yuan, UBS AG.

珍妮‧袁，瑞銀集團。

(spoken in foreign language)

（用外語說）

(interpreted)

（翻譯）

My question is regarding our overseas business. Overseas revenue grew 69% year-over-year in the third quarter, ahead of management's previous guidance of 60% growth. So could you please focus through which part of this is upfront expectations?

我的問題與我們的海外業務有關。第三季海外營收年增 69%，高於管理層先前預期的 60% 的成長目標。那麼，請您重點講解一下，這其中哪一部分屬於預先預期？

And for the fourth quarter, we are guiding a 70% year-over-year growth in overseas revenue. So could you please break down how much of this is driven by the organic business? And how much is driven by the consolidation impact on the newly acquired happen?

對於第四季度，我們預計海外收入將年增 70%。那麼，您能否詳細說明一下，其中有多少是由有機業務驅動的？而整合對新收購企業的影響究竟有多大？

And given the trajectory, how do we expect overseas growth year? Is there a chance -- is it likely that overseas performance could fully offset the revenue decline in the domestic market?

根據目前的趨勢，我們對海外市場今年的成長前景有何預期？海外市場的優異表現是否有可能完全抵銷國內市場的營收下滑？

(spoken in foreign language)

（用外語說）

(interpreted) Okay. So in Q3, the vast majority of incremental revenue comes from the overseas business comes from audio and video-based products in the MENA region, and driven primarily by the two new apps, Ammar and Yahalan. Our core performance metrics for the overseas audience video-based business is (inaudible). So around midyear, as we increase the marketing spend, China ROI began to decline.

（翻譯）好的。因此，第三季新增收入的絕大部分來自海外業務，主要來自中東和北非地區的音訊和視訊產品，並且主要由兩個新應用 Ammar 和 Yahalan 推動。我們針對海外觀眾視訊業務的核心績效指標是：（聽不清楚）因此，大約在年中，隨著我們增加行銷支出，中國的投資報酬率開始下降。

So in response, we deliberately scaled back marketing investments and plan to resume more spending only after unit acquisition cost decrease or ARPU and gross margin improve. Accordingly, we also moderated our near-term revenue expectations for these audio and video products.

因此，作為回應，我們刻意縮減了行銷投入，並計劃在單位獲取成本下降或每用戶平均收入和毛利率改善後才恢復更多支出。因此，我們也下調了這些音訊和視訊產品的近期收入預期。

During Q3, the local team successfully drove ARPU growth through continued product optimization and deeper supply side partnerships, whilst simultaneously lowering revenue sharing ratios. These efforts led to a clear improvement in which in turn has allowed us to step up user acquisition investment again and resulting in accelerating growth momentum.

第三季度，本地團隊透過持續的產品優化和更深入的供應鏈合作，成功推動了 ARPU 的成長，同時降低了營收分成比例。這些努力帶來了明顯的改善，進而使我們能夠再次增加用戶獲取方面的投入，從而加速成長動能。

And beyond the audio video products in MENA our overseas dating portfolio also delivered solid performance in Q3. Notably, following the brand repositioning led by the Singapore team, Tantan International has begun migrating users to its refresh international version.

除了中東和北非地區的影音產品外，我們的海外約會產品組合在第三季也取得了穩健的表現。值得注意的是，在新加坡團隊主導的品牌重新定位之後，探探國際已開始將用戶遷移到其煥然一新的國際版本。

The migration is progressing in line with our expectations. And both revenue and profit has stabilized and returned to growth for the first time in nearly a year and product features and new designs tailored specifically for overseas kinase users have laid a strong foundation for Tantan International to deepen this presence in Southeast Asia and other global markets.

遷移工作正如預期進行。近一年來，公司營收和利潤均已穩定並恢復成長，專門為海外激酶用戶量身定制的產品特性和新設計，為探探國際深化在東南亞及其他全球市場的業務奠定了堅實的基礎。

And furthermore, the AI-powered role playing dating app we launched in Japan a year ago, has made significant revenue progress. And we accept this contribution to overseas revenue to grow steadily as we continue upgrading the AI model and the product matures.

此外，我們一年前在日本推出的AI角色扮演約會應用程式也取得了顯著的收入成長。我們預計，隨著人工智慧模式的不斷升級和產品的日益成熟，海外收入將穩步成長。

On the M&A front, we completed the acquisition of the branch stating brand happened in September, and while its contribution to Q3 revenue was limited, it is expected to make a more meaningful impact on our Q4 overseas performance.

在併購方面，我們在 9 月完成了對該分公司的收購，雖然其對第三季收入的貢獻有限，但預計它將對我們第四季的海外業績產生更有意義的影響。

As for growth outlook for next year, I will hand it over to Cathy for more details.

至於明年的成長前景，我將交給凱西來詳細介紹。

Sure. Let me take the more quantitative part of that question. As (inaudible) mentioned, our overseas portfolio today is fundamentally very different from what it was a year ago. Before getting into numbers, let me add a couple of quick points that investors may have overlooked.

當然。讓我來回答這個問題中更偏定量分析的部分。正如（聽不清楚）所提到的，我們今天的海外投資組合與一年前相比已經發生了根本性的變化。在深入探討具體數字之前，我想先補充幾個投資人可能忽略的要點。

First thing, I would like to call out is that our international growth strategy has become increasingly multipolar supported, both in terms of product mix, and in terms of business model. From a product perspective, growth is no longer driven by one single engine. If you go back to the year 2024, the overseas business grew about year-over-year, and almost all of that came from [indiscernible] alone.

首先，我想指出的是，我們的國際成長策略在產品組合和商業模式方面都越來越注重多極化支援。從產品角度來看，成長不再由單一引擎驅動。如果回到 2024 年，海外業務年增約 ，而且幾乎全部成長都來自 [無法辨認] 一家公司。

In 2025, we are on track to grow somewhere around 70%. And while social is still contributed meaningfully, another significant growth driver for 2025 has actually been the nonsocial brand. That piece grew close to 400% year-over-year in 2025, becoming a major pillar of our overseas business.

預計到 2025 年，我們的成長率將達到 70% 左右。雖然社群媒體仍然發揮著重要作用，但 2025 年另一個重要的成長驅動力實際上是非社群媒體品牌。到 2025 年，該業務年增近 400%，成為我們海外業務的主要支柱。

And from a business model perspective, we are also diversifying. The overseas business is increasingly driven by the savings and membership-based model in developed markets which include overseas Tantan Melamine, which is our AI-powered dating app in Japan Happn, and some other quality dating brands.

從商業模式的角度來看，我們也在進行多元化發展。海外業務越來越受到已開發市場儲蓄和會員制模式的驅動，其中包括海外的 Tantan Melamine、我們在日本推出的 AI 驅動約會應用程式 Happn 以及其他一些優質約會品牌。

As we move deeper into 2026, we expect the overseas portfolio to rest on three -- almost three equally through roughly equal weighted pillars. One in social, the other is emerging social entertainment apps in developing markets and the third pillar is going to be dating membership brands in developed markets.

隨著我們進入 2026 年，我們預計海外投資組合將主要由三個支柱構成——幾乎是三個權重大致相等的支柱。一個是社交領域，另一個是新興市場的社交娛樂應用，第三個支柱將是已開發市場中的約會會員品牌。

Now turning specifically to your question about whether overseas growth can offset domestic declines, I would say that if you look at second half of 2025, at group level, we are seeing somewhere around 2% year-over-year decline. Were it not the test group need that hit the supply side hard top line could have turned positive in Q4.

現在具體來說，回答您關於海外成長能否抵銷國內下滑的問題，我想說，如果您觀察 2025 年下半年，從集團層面來看，我們看到同比下降幅度在 2% 左右。如果不是測試組的需求嚴重衝擊了供應端，那麼第四季營收本來可以轉正。

At this time, I don't have enough visibility to make that call for 2026 yet, but there are some high-level thoughts about different pieces within our overseas portfolio. Looking ahead, [Sochio] will likely continue to grow though at a -- probably at a slower percentage rate as the base gets larger.

目前，我對 2026 年的情況還沒有足夠的了解，所以還無法做出決定，但是對於我們海外投資組合中的不同部分，我有一些高層次的想法。展望未來，[Sochio]可能會繼續成長，但隨著基數增大，成長速度可能會放緩。

That said, I would say that there is a meaningful upside variable, and that is our push into live streaming and into wealthier golf markets. Historically, our strength has been in Turkey and North Africa. Success in the Gulf region and in live stream in meaningfully influence Sochio's growth trajectory in 2026 potentially helping stabilize or even reaccelerate its growth rate.

也就是說，我認為有一個重要的上升因素，那就是我們進軍直播領域和更富裕的高爾夫市場。從歷史上看，我們的優勢一直集中在土耳其和北非。在海灣地區和直播領域的成功將對 Sochio 在 2026 年的成長軌跡產生重大影響，有可能幫助穩定甚至重新加速其成長速度。

Non-sochio brands should continue to deliver very robust growth next year. combined with the scaling of the dating/membership model, we expect these segments to become increasingly important contributors as we head towards 2026.

非社交品牌明年應持續保持強勁成長。隨著約會/會員模式的規模發展，我們預期這些細分市場在邁向2026年的過程中將成為越來越重要的貢獻者。

And with that, back to Ashley for next question.

接下來，讓我們把鏡頭切回給艾希莉，回答她的下一個問題。

Up the next question, please.

請問下一個問題。

Leo Chiang, Deutsche Bank AG.

德意志銀行股份公司 Leo Chiang。

(spoken in foreign language)

（用外語說）

(interpreted) Let me translate. Thanks management, for taking my question. My question is regarding to the company's and manage strategy to ensure the peace. Some focus on maybe doing M&A such as industry geography revenue (technical difficulty)

（翻譯）讓我來翻譯。謝謝管理層解答我的問題。我的問題是關於公司如何制定和管理策略以確保和平。有些人可能更關注併購，例如產業、地理和收入方面的併購。（技術難題）

Leo, we didn't quite get your question. Can you repeat, please?

Leo，我們沒完全理解你的問題。請您再說一次好嗎？

Is that better now?

現在好些了嗎？

Yeah, we can hear you better now. We actually heard the most of the Chinese part, but the English translation was not quite clear.

是的，我們現在能聽得更清楚了。我們其實聽到的中文部分最多，但英文翻譯不太清楚。

Okay. Yeah. So question is regarding to the company's M&A strategy. Could management share the key factors the company focus on when doing M&A, such as industry, geography, revenue and profit and for the acquired products, will the company be actively involved in the business management? Thank you.

好的。是的。所以問題是關於公司的併購策略。管理階層能否分享公司在進行併購時關注的關鍵因素，例如產業、地理、收入和利潤？對於收購的產品，公司是否會積極參與業務管理？謝謝。

Okay. Thank you.

好的。謝謝。

(spoken in foreign language)

（用外語說）

(interpreted) Okay, let me translate. Since the launch of our first LBS based social product normal in 2011, our company has transformed from the past 14 years from single product company focused on DAU growth in China market into a diversified group with more than a dozen brands. These brands cover a wide range of niche markets and user segments, both domestically and internationally.

（翻譯）好的，讓我來翻譯。自 2011 年推出首款基於 LBS 的社交產品 normal 以來，我們公司在過去的 14 年裡，從一家專注於中國市場 DAU 成長的單一產品公司，轉型成為擁有十幾個品牌的多元化集團。這些品牌涵蓋了國內外廣泛的細分市場和用戶群。

In addition to organic development, acquisitions have been another key growth strategy since 2018. Whether through organic development or M&A, we have consistently stayed focused on our core strengths in the social engaging sector. And reason, yes, as growth in the domestic market has slowed, we have shifted our strategic focus overseas to capture new growth drivers.

除了自身發展之外，自 2018 年以來，收購一直是另一個關鍵的成長策略。無論是透過自身發展或併購，我們始終專注於我們在社交互動領域的核心優勢。是的，這是有原因的。隨著國內市場成長放緩，我們已將策略重點轉移到海外，以獲取新的成長動力。

And in less than five years, incremental revenue from overseas products has largely offset the decline in our domestic business. We do not have reached the criteria for M&A targets. However, looking at the appreciations we have completed so far, they share several common characteristics.

不到五年時間，海外產品帶來的增量收入已基本抵銷了國內業務的下滑。我們尚未達到併購目標的標準。然而，縱觀我們目前已完成的賞析，它們具有幾個共同的特徵。

And firstly, we must fully understand and recognize the value of the product, the team and the business model and we must be confident that the group's resources can help unlock greater potential. And second, we need strong confidence in that the target ability to achieve sustainable profitability. And third, of course, the valuation must be reasonable.

首先，我們必須充分理解和認識到產品、團隊和商業模式的價值，並且必須相信集團的資源可以幫助釋放更大的潛力。其次，我們需要對目標公司實現永續獲利能力充滿信心。第三，當然，估值必須合理。

Regarding post-acquisition management and the degree of our involvement, it varies on a bis-by-case basis. if the original team is better positioned to run the business than we are, and we tend to delegate full authority to the local team while providing necessary support functions.

關於收購後的管理以及我​​們的參與程度，這取決於具體情況。如果原團隊比我們更適合經營業務，我們傾向於將全部權力下放給當地團隊，同時提供必要的支援職能。

And if the local team ever needs us to dive in deeper, we are more than happy to engage in hands-on daily management. So overall, our level of engagement with acquired companies is tailored to the specific circumstances rather than following the sale. So I hope we answered your question.

如果當地團隊需要我們更深入參與，我們非常樂意參與日常的實際管理工作。因此，整體而言，我們對被收購公司的參與程度是根據具體情況而定的，而不是在出售之後才採取的行動。希望我們已經解答了您的問題。

In the interest of time, operator, let's just take one last question before we close the line.

操作員，為了節省時間，我們掛斷電話前再回答最後一個問題吧。

Xueqing Zhang, CICC.

張學慶，中金公司。

(spoken in foreign language)

（用外語說）

(interpreted) Thanks for taking my question, and my question is about profit margin and shareholder returns. And previously mentioned that the fastest growing overseas audio and video based social business has a lower gross margin compared to domestic one.

（譯）感謝您回答我的問題，我的問題是關於利潤率和股東回報的。前面提到過，海外成長最快的影音社交企業的毛利率低於國內同類企業。

Additionally, more and more recently adjusted its revenue sharing ratio. So how should we view the overall gross margin going forward? More than many of our overseas initiatives are still in the investment phase. So does it imply that your profit margin may further decline next year and would this impact decisions regarding shareholder returns. Thank you.

此外，該公司近期也不斷調整其營收分成比例。那麼，我們該如何看待未來的整體毛利率呢？我們許多海外項目仍處於投資階段。這是否意味著明年的利潤率可能會進一步下降？這是否會影響有關股東回報的決策？謝謝。

Okay. Let me try to answer the margin profitability question first. First, it's still a little bit early to be very prescriptive about 2026 margins. Our portfolio today is more diversified than in prior years with products carrying very different margin profiles. But I can share a few directional points that should help frame expectations.

好的。讓我先試著回答利潤率問題。首先，現在對 2026 年的利潤率做出非常具體的預測還為時過早。與往年相比，我們目前的投資組合更加多元化，產品利潤率差異很大。但我可以分享一些方向性要點，這應該有助於調整預期。

Number one, on the domestic business, you are correct given what we saw in the second half of 2025, domestic gross margin will likely be down a couple of points. The exit rate is going to roll into 2026. On the operating expenses front, we do see room to further optimized, so we can mitigate part of the pressure at the operating profit level.

第一，關於國內業務，根據我們在 2025 年下半年看到的情況來看，您的說法是正確的，國內毛利率可能會下降幾個百分點。退出率將持續下降到2026年。在營運費用方面，我們看到了進一步優化的空間，這樣可以減輕營運利潤層面的部分壓力。

But with both revenue and gross margin trending lower, bottom line for domestic business will remain under downward pressure in 2026. Number two, for the overseas business, margins look different by product category. On a stand-alone basis, most overseas products are actually seeing stable or improving gross margins as they scale.

但由於收入和毛利率均呈下降趨勢，2026 年國內業務的利潤仍將面臨下行壓力。第二，對於海外業務而言，不同產品類別的利潤率情況有所不同。從獨立產品的角度來看，隨著海外產品規模的擴大，它們的毛利率實際上都保持穩定或提高。

The key factor is the mix. So [Sochio entertainment] products carry lower margins due to payout, and revenue share arrangements, while the subscription and dating business carry significantly higher gross margins with no payout component.

關鍵因素在於配比。因此，由於支付款項和收入分成安排，[Sochio娛樂]產品的利潤率較低，而訂閱和約會業務的毛利率則高得多，因為沒有支付款項。

As these categories grow at different speeds, mix will be a bit hard to pin down at this point. Given these moving pieces, the most practical approach now is perhaps to anchor on the Q4 2025 exit level which, based on our guidance, should be about 36% to 37% adjusted gross margin.

由於這些類別的成長速度各不相同，因此目前很難確定其組合情況。鑑於這些不確定因素，目前最實際的做法或許是將目標鎖定在 2025 年第四季的退出水平，根據我們的指導，該水平的調整後毛利率應在 36% 至 37% 左右。

Some forces push it upward, some forces push it downward, we'll have clearer visibility after we complete our annual planning and can give you more specific color during our next earnings call. On the group level profitability outlook, it's true that we remain in an investment phase for our overseas business. But investment does not mean we are loosening our discipline.

有些力量向上推動，有些力量向下推動，在我們完成年度計畫後，情況會更加明朗，我們可以在下次財報電話會議上提供更具體的資訊。從集團層面的獲利前景來看，我們確實仍處於海外業務的投資階段。但投資並不代表我們會放鬆紀律。

We continue to apply very strict ROI filters and we will not pursue top line growth by sacrificing profitability. At this point, our expectation is that the overseas business will look probably not be meaningfully offset the domestic profit pressure in 2026. But at the same line, it will not be a significant drag on the group bottom line either.

我們將繼續採用非常嚴格的投資報酬率篩選標準，不會為了追求營收成長而犧牲獲利能力。目前我們預計，到 2026 年，海外業務可能不會對國內利潤壓力產生實質的抵銷作用。但同時，它也不會對集團的獲利造成重大拖累。

So overall, we do expect some compression in profitability next year, but largely from domestic business, not really overseas business. And finally, regarding dividend and shorter return expectations. Profitability for -- you're right, that profitability for a particular year is factor in determining our cash dividend, but it is not the only factor.

因此，總體而言，我們預計明年的獲利能力會下降，但主要來自國內業務，而不是海外業務。最後，關於股息和短期回報預期。獲利能力－你說得對，某一年的獲利能力是決定我們現金股利的一個因素，但這並不是唯一的因素。

Apart from that, we also evaluate some other stuff such as potential M&A requirements, and strategic cash needs. The other thing is liquidity and repat creation capability from our onshore entities to the holding company. And then there is also -- there's always going to be the balance between cash dividends versus share repurchases consideration.

除此之外，我們也會評估其他一些事項，例如潛在的併購需求和策略性現金需求。另一方面，我們境內實體向控股公司提供的流動性和匯款創造能力也很重要。此外，現金分紅與股票回購之間始終需要權衡。

All of these elements would go into the board's decision-making process. We will provide more clarity after we finalize our end plan. But the guiding principle remains unchanged, maintaining disciplined, balanced capital return framework while ensuring that we have the resources to invest in long-term growth. I guess that wraps up today's call. I'm handing over to Ashley to close today.

所有這些因素都會納入董事會的決策過程。我們將在最終方案定稿後提供更詳細的說明。但指導原則依然不變，也就是維持嚴謹、平衡的資本回報框架，同時確保我們有足夠的資源投資於長期成長。我想今天的電話會議就到此結束了。今天我將把收尾工作交給艾許莉。

Well, thank you very much for joining us today. So we'll see you next year, and happy holidays. Bye.

非常感謝您今天能來參加我們的節目。那我們明年再見，祝您節日快樂。再見。

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

謝謝。今天的會議就到此結束。感謝您的參與。您現在可以斷開連線了。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標有（已翻譯）的部分是由現場通話中的翻譯人員翻譯的。本次活動的翻譯人員由活動贊助公司提供。