Sohu.com Ltd (SOHU) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by and good afternoon. Thank you for joining Sohu's fourth quarter 2024 earnings conference call. (Operator Instructions) Today's conference call is being recorded. If you have any objections, you may disconnect at this time.

女士們、先生們，感謝各位的支持，大家午安。感謝您參加搜狐2024年第四季財報電話會議。（操作員指示）今天的電話會議正在錄音。如果您有任何異議，您可以立即斷開連接。

I'd now like to turn the conference over to your host for today's conference call, Huang Pu, Investor Relations Director of Sohu. Thank you. Please go ahead.

現在，我想將今天的電話會議主持人、搜狐公司投資者關係總監黃樸交給您。謝謝。請繼續。

Thanks, operator. Thank you for joining us to discuss Sohu's fourth quarter 2024 results. On the call are Chairman and Chief Executive Officer Dr. Charles Zhang; CFO Joanna Lv, and the Vice President of Finance James Deng. Also with us are Changyou's CEO, Dewen Chen; and the CFO, Yaobin Wang.

謝謝，接線生。感謝您與我們一起討論搜狐2024年第四季業績。參加電話會議的有董事長兼執行長張朝陽博士、財務長 Joanna Lv 和財務副總裁 James Deng。與我們一起出席的還有暢遊執行長陳德文和財務長王耀斌。

Before management begins their prepared remarks, I would like to remind you of the complicate cover statement in connection with today's conference call. Except further historical information contained herein, the matters discussed by the company contains forward-looking statements. These statements are based on current plans, estimates, and the projections, and therefore, you should not place undo rights on them.

在管理層開始他們的準備好的發言之前，我想提醒大家注意與今天的電話會議相關的複雜的封面聲明。除本文所載的進一步歷史資訊外，本公司所討論的事項包含前瞻性陳述。這些聲明是基於當前的計劃、估計和預測，因此，您不應對它們賦予撤銷權。

Forward-looking statements involve key risks and uncertainties. We caution you that a number of important factors could cause actual result different materiality from those contained in forward-looking statements. For more information about the potential risks and uncertainties, please refer to the commerce filings with the Securities and Exchange Commission, including the most recent annual report on Form 20-F.

前瞻性陳述涉及重大風險和不確定性。我們提醒您，許多重要因素可能導致實際結果與前瞻性聲明中的結果不同。有關潛在風險和不確定性的更多信息，請參閱向美國證券交易委員會提交的商業文件，包括最新的 20-F 表年度報告。

With that owner turn the call over to Doctor Charles Zhang. Charles, please proceed.

那位主人把電話轉給張朝陽醫生。查爾斯，請繼續。

Thanks, Huang Pu, and thank you everyone for joining our call. In the fourth quarter of 2024, our brand advertising revenues hit the high end of our previous guidance while both our online game revenues and the bottom-line performance was much better than expected.

謝謝黃樸，也謝謝大家參加我們的電話會議。2024年第四季度，我們的品牌廣告收入達到了先前預期的高端，而我們的線上遊戲收入和底線表現都遠好於預期。

For social media platform, including Sohu Media and Video, we continue to refine our products, optimized algorithms and strictly controlled budgets. By integrating the advantages of these so-called product matrix with our unique IPs and the high energy events, we are able to promote the generation and the social distribution of premier content.

對於包括搜狐媒體和影片在內的社群媒體平台，我們不斷完善產品、優化演算法並嚴格控制預算。透過將這些所謂的產品矩陣的優勢與我們獨特的IP和高能量活動相結合，我們能夠促進優質內容的生成和社交分發。

Effectively enhance user experience to attract more users and further unlock monetization potential. The online games business delivered solid performance thanks to the relentless efforts to produce high quality new games and revitalize legacy games.

有效提升用戶體驗，吸引更多用戶，進一步釋放獲利潛力。網路遊戲業務透過不斷打造精品遊戲、振興老遊戲，取得了穩健的業績。

Before going through each business unit in more detail, let me first give you a quick overview of our financial performance. For the fourth quarter of 2024, total revenues $135 million, down 5% year-over-year and 11% quarter-over-quarter. Brand advertising revenues, $19 million, down 7% year-over-year and 1% quarter-over-quarter. Online game revenues, $110 million, down 4% year-over-year and 14% quarter-over-quarter.

在詳細介紹每個業務部門之前，讓我先簡單概述一下我們的財務表現。2024 年第四季，總營收 1.35 億美元，年減 5%，季減 11%。品牌廣告收入 1,900 萬美元，較去年同期下降 7%，較上季下降 1%。線上遊戲收入 1.1 億美元，年減 4%，季減 14%。

GAAP net loss attributable to Soho.com Limited, $21 million compared with a net loss of $13 million in the fourth quarter of 2023 and a net loss of $16 million in the third quarter of 2024. Non-GAAP net loss attributable to Sohu.com Limited, $15 million compared with the net loss of $11 million in the fourth quarter of 2023 and a net loss of $12 million in the third quarter of 2024.

歸屬於 Soho.com Limited 的 GAAP 淨虧損為 2,100 萬美元，而 2023 年第四季淨虧損為 1,300 萬美元，2024 年第三季淨虧損為 1,600 萬美元。非美國通用會計準則下歸屬於搜狐公司的淨虧損為 1,500 萬美元，而 2023 年第四季淨虧損為 1,100 萬美元，2024 年第三季淨虧損為 1,200 萬美元。

For the whole year of 2024, total revenues $598 million flat compared with 2023. Brand advertising revenues, $73 million, down 17% compared with 2023. Online game revenues, $502 million, up 5% compared with 2023. GAAP net loss attributable to Sohu.com Limited, $100 million compared with the net loss of $66 million in 2023. non-GAAP net loss attributable to Sohu.com Limited was $83 million compared with the net loss of $51 million in 2023.

2024年全年總收入5.98億美元，與2023年持平。品牌廣告收入 7,300 萬美元，與 2023 年相比下降 17%。線上遊戲營收 5.02 億美元，較 2023 年成長 5%。以美國通用會計準則計算，歸屬於搜狐公司的淨虧損為 1 億美元，而 2023 年的淨虧損為 6,600 萬美元。以非美國通用會計準則計算，歸屬於搜狐公司的淨虧損為 8,300 萬美元，而 2023 年的淨虧損為 5,100 萬美元。

Now let me go through our key businesses in more detail. First, the Sohu Media platform. We consistently focused on improving our technology and optimizing our products with cutting edge technology. Meanwhile, we also kept improving user experience by closely monitoring their needs.

現在讓我更詳細地介紹一下我們的主要業務。一是搜狐媒體平台。我們始終致力於改進我們的技術並利用尖端技術優化我們的產品。同時，我們也密切關注用戶的需求，不斷提升用戶體驗。

We organically integrated our diverse online and offline events, maximizing the synergy of the Sohu product matrix and fostering a thriving online community. These efforts allowed us to attract more users, especially the younger generation, to our platform, actively promoted their interactions and stimulated more content generations.

我們有機整合了豐富多彩的線上線下活動，最大限度地發揮了搜狐產品矩陣的協同效應，培育了蓬勃發展的線上社群。這些努力使我們能夠吸引更多用戶，特別是年輕一代加入我們的平台，積極促進他們的互動並激發更多內容的產生。

So in 2024, we held a series of K-pop dancing tour competitions in several major cities in China. From which the most outstanding contestants were selected to join the 2024 Dream Concert overseas in South Korea in October. Later in December at the final show of the above series of dancing events, the 2024 Sohu Video dancing festival was hosted with great success.

所以在2024年，我們在中國幾個主要城市舉辦了一系列K-pop舞蹈​​巡迴比賽。從中選出最優秀的選手，參加10月在韓國舉行的2024夢想演唱會。隨後在12月，作為上述系列舞蹈活動的最後一場演出，2024搜狐視訊舞蹈盛典也順利舉辦。

This dancing festival brought together a lot of top dancers in (inaudible) It has become the most eye-catching annual events in the field of K-pop dancing for the year. Also, during the last quarter -- during this quarter, we hosted a 2024 Sohu Video [Guofeng Festival] the largest nationwide competition showcasing the traditional Chinese Hanfu costume.

這場舞蹈節匯聚了（聽不清楚）眾多頂尖舞者，成為K-pop舞蹈​​領域年度最受矚目的盛事。此外，在上個季度——本季度，我們舉辦了2024搜狐視頻國風盛典，這是全國最大的展示中國傳統漢服的比賽。

It received widespread acclaim and sparked extensive discussions and disseminations across multiple social media platforms. These events not only strongly strengthened our leading position and influence in the K-pop and Hanfu event verticals but also stimulated numerous social interactions and distributions on our platform.

獲得了廣泛好評，並在多個社交媒體平台上引發了廣泛的討論和傳播。這些活動不僅有力地加強了我們在韓國流行音樂和漢服活動垂直領域的領先地位和影響力，而且還激發了我們平台上的大量社交互動和傳播。

We also continued to host our flagship events such as the 2024 Sohu Fashion Awards. And at the end of the year and the 2024 Sohu Finance Annual Forum (inaudible) which further consolidated our brand influence as a mainstream media platform and provided us with abandoned premium content. These events were not only attractive for users but also enabled us to provide unique marketing solutions to our advertisers.

我們也持續舉辦2024年搜狐時尚盛典等旗艦活動。並在年底和2024年搜狐財經年度論壇（聽不清楚）進一步鞏固了我們作為主流媒體平台的品牌影響力，並為我們提供了優質的內容。這些活動不僅對用戶具有吸引力，還使我們能夠為廣告商提供獨特的行銷解決方案。

And further persisted in broadcasting the Charles' Physics Class, (inaudible) which has been going on for three years with three books published. And also, the (inaudible) English class. These classes have jointly become the leading IPs for Soho.

並堅持播出《查爾斯的物理課》，（聽不清楚）至今已播出三年，出版了三本書。還有（聽不清楚）英文課。這些類別共同成為Soho的龍頭IP。

Leveraging these unique IPs and collaborations with our -- with science-related broadcasters, we were able to attract millions of users -- viewers, popularized cutting edge professional knowledge to them and reinforce our core competitiveness in the field of knowledge and science-related live streaming.

利用這些獨特的IP以及與科學相關廣播公司的合作，我們能夠吸引數百萬用戶觀眾，向他們普及前沿的專業知識，並增強我們在知識和科學相關直播領域的核心競爭力。

Benefiting from the above, we're able to combine the knowledge, dissemination and brand marketing through diverse channels, delivering unique experiences to advertisers and audiences and driving [advertising] budgets.

由於上述優勢，我們能夠透過多種管道將知識、傳播和品牌行銷結合起來，為廣告商和受眾提供獨特的體驗，並推動[廣告]預算。

In 2024, we continuously enriched our content library by acquiring TV dramas, rolling out original dramas, and bringing in premium American TV series as well as introducing short dramas. For example, our TV drama, (inaudible) Hairpins in the Palace and the American TV series, The Bear (spoken in foreign language) and also the HBO series were well received by the audience. We're talking about Sohu Media platform include both the Sohu News and Sohu Video.

2024年，我們持續豐富內容庫，收購電視劇、推出原創影集、引進優質美劇以及推出短劇。例如，我們的電視劇（聽不清楚）《大長今》和美國電視劇《熊》（外語版）以及HBO系列都受到了觀眾的好評。我們所說的搜狐媒體平台包括搜狐新聞和搜狐影片。

Now, next, let me turn to the online game business. During the quarter, our online game business performed well with revenues exceeding our prior guidance. In our PC games business, we launched a new plan jointly for regular TLBB PC and TLBB Vintage jointly. Along with the various snow and ice themed events and the gameplay, effectively boosting players' enthusiasm for the game.

接下來，讓我來談談網路遊戲業務。本季度，我們的線上遊戲業務表現良好，收入超過了我們先前的預期。在我們的PC遊戲業務中，我們共同推出了常規版《天龍八部》PC版和《天龍八部》Vintage版的新計劃。加上豐富多彩的冰雪主題活動和玩法，有效提升了玩家的遊戲熱情。

In addition, we introduced an innovative survival PVP gameplay for regular TLBB PC and refreshed some classical -- classic gameplays of TLBB Vintage to enhance player experience and renew their interest in the game. For Legacy TLDB Mobile, we launched a new expansion pack featuring crossover content such as themed dungeons, outfits, and a rich innovative gameplays, which drove higher users' satisfaction.

此外，我們為常規版《天龍八部》PC引入了創新的生存PVP玩法，並刷新了一些經典——《天龍八部懷舊版》的經典玩法，以增強玩家體驗並重新激發他們對遊戲的興趣。對於 Legacy TLDB Mobile，我們推出了一個新的擴充包，其中包含主題地牢、服裝和豐富的創新遊戲玩法等交叉內容，從而提高了用戶滿意度。

Next quarter, we'll continue to launch expansion packs and content updates for the TLBB series and other titles to further keep players engaged. As market competition intensifies and user demand for quality and innovation continues to rise, we'll forge ahead with our top game strategy, staying true to our user-centric philosophy. We'll continue to optimize our research and development process and enhance the execution to improve efficiency and product success rate.

下個季度，我們將繼續推出《天龍八部》系列和其他遊戲的擴充和內容更新，以進一步吸引玩家。隨著市場競爭的加劇以及用戶對品質和創新的需求不斷提高，我們將繼續推動頂級遊戲策略，堅持以用戶為中心的理念。我們將持續優化研發流程，加強執行力，以提高效率和產品成功率。

Meanwhile, we will intensify our efforts to expand our international presence. While maintaining our core competitiveness on MMORPGs, we also actively expand our portfolio with diverse types of games, including card-based RPGs, sports games, and casual games, et cetera. With these efforts, we're confident that we soon can bring more high-quality games to the market.

同時，我們將加強擴大國際影響力。在維持MMORPG核心競爭力的同時，我們也積極拓展卡牌RPG、運動遊戲、休閒遊戲等多種類型的遊戲。透過這些努力，我們有信心很快就能為市場帶來更多高品質的遊戲。

Now, I would like to give an update on the ongoing share repurchase program. As of February 13, this year, 2025, Sohu had repurchased 4.2 million ADS for an aggregated cost of approximately $52 million. So with that I'll turn to the call to our CFO, Joanna. Joanna?

現在，我想介紹一下正在進行的股票回購計劃的最新情況。截至今年2月13日，即2025年，搜狐已回購420萬股美國存託憑證，總成本約5,200萬美元。因此，我將轉而致電我們的財務長喬安娜。喬安娜？

Thank you, Charles. I will walk you through the key financials of our major segments for the fourth quarter and the full year of 2024. All the numbers on the non-GAAP basis. You may find the reconciliation of non-GAAP to GAAP measures on our IR website. For Sohu Media platform, quarterly revenues were $24 million compared with $25 million in the same quarter last year. Quarterly operating loss was $69 million compared with the operating loss, $68 million in the same quarter last year.

謝謝你，查爾斯。我將向您介紹我們主要部門 2024 年第四季和全年的關鍵財務狀況。所有數字均基於非 GAAP 基礎。您可以在我們的 IR 網站上找到非 GAAP 與 GAAP 指標的對帳。搜狐媒體平臺本季營收為 2,400 萬美元，去年同期為 2,500 萬美元。季度營運虧損為 6,900 萬美元，而去年同期營運虧損為 6,800 萬美元。

For the full year 2024, revenues were $91 million compared with $140 million in 2023. The full year operating loss was $287 million compared with the operating loss $269 million in 2023. For Changyou's online game business and 17173, quarterly revenues $111 million compared with $150 million in the same quarter last year. Quarterly operating profit was $48 million compared with operating profit, $47 million in the same quarter last year.

2024 年全年營收為 9,100 萬美元，而 2023 年為 1.4 億美元。全年營運虧損為 2.87 億美元，而 2023 年的營運虧損為 2.69 億美元。暢遊的線上遊戲業務和17173的季度營收為1.11億美元，去年同期為1.5億美元。季度營業利潤為 4,800 萬美元，而去年同期的營業利潤為 4,700 萬美元。

For the full year 2024, revenues were $506 million compared with revenue $485 million in 2023. The full year operating profit, $196 million compared with the operating profit $203 million in 2023. For the first quarter of 2025, we expect brand advertising revenue to be between $30 million and $40 million dollars. This implies annual decrease of 13% to 19% and a sequential decrease of 26% to 31%.

2024 年全年營收為 5.06 億美元，而 2023 年營收為 4.85 億美元。全年營業利潤為 1.96 億美元，而 2023 年的營業利潤為 2.03 億美元。2025 年第一季度，我們預計品牌廣告收入將在 3,000 萬美元至 4,000 萬美元之間。這意味著年降幅為 13% 至 19%，季降幅為 26% 至 31%。

Online games revenues to be between $105 million and $150 million. This implies annual decrease of 2% to 11% and a sequential decrease of 4% to a sequential increase of 5%. Non-GAAP net loss attributable to Sohu.com Limited to be between $16 million and $26 million. And GAAP net loss attributable to Sohy.com Limited to be between $20 million and $30 million. This forecast reflects the management's current and the preliminary review which is subject to substantial uncertainty.

線上遊戲收入將在1.05億美元至1.5億美元之間。這意味著年降幅為 2% 至 11%，環比下降 4% 至 5%。歸屬於搜狐公司的非美國通用會計準則淨虧損在1,600萬美元至2,600萬美元之間。歸屬於Sohy.com Limited的GAAP淨虧損在2,000萬美元至3,000萬美元之間。該預測反映了管理層當前和初步的審查，但存在很大的不確定性。

This concludes our prepared remarks. Operator, we would now like to open the call for questions.

我們的準備好的演講到此結束。接線員，我們現在想開始提問。

(Operator Instructions)

（操作員指示）

Thomas Chong, Jefferies.

湯瑪斯‧張 (Thomas Chong)，傑富瑞 (Jefferies)。

Hi, good evening. Thanks, management for taking my question. My question -- my first question is about the, brand advertising business. It seems that for the Q1 guidance, the sequential decline is a bit soft versus previous years, and the year-on-year decline is a bit -- also more than Q4. So I just want to get some color with regard to any reason behind the latest advertising sentiment.

嗨，晚上好。謝謝管理層回答我的問題。我的問題－我的第一個問題是關於品牌廣告業務的。對於第一季的指引，似乎連續下降幅度與前幾年相比有所減弱，而同比下降幅度也比第四季略大一些。因此，我只是想了解最新廣告情緒背後的原因。

And on the gaming business, can management comment about how we should think about when we should expect it to have a Q-o-Q decline or Q-o-Q growth because it seems the range is a bit wide. And how is the trend so far? And then my last question is about the invitation activity. Can management comment about how we should think about the integration with Sohu? Thank you.

關於遊戲業務，管理層能否評論一下，我們應該如何看待何時預期其會出現環比下降或環比增長，因為這個範圍似乎有點寬。到目前為止趨勢如何？我的最後一個問題是關於邀請活動的。管理階層能否評論一下我們該如何看待與搜狐的整合？謝謝。

So your first question is about the advertising, right? The second question is about game. Okay, all right. The third one is the application of the DeepSeek, right? Okay. The first one, I'll answer the first question, for Q1 decline, right? Speaking of the macroeconomic situation. So people are spending less. That the advertisers are spending less in marketing because of the overall economic situation. And so yeah. It's overall economy.

所以您的第一個問題是關於廣告的，對嗎？第二個問題是關於遊戲的。好的，好的。第三個是DeepSeek的應用吧？好的。第一個問題，我來回答一下第一季的下滑情況吧？說到宏觀經濟情勢。因此人們的支出減少了。由於整體經濟形勢，廣告商在行銷方面的支出減少了。是的。這是整體經濟。

So the second question is about the game, right?

那麼第二個問題是關於遊戲的，對嗎？

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

The performance of the first quarter is expected to be flat quarter-over-quarter.

預計第一季業績環比持平。

Okay, so about the DeepSeek application, we've been actually -- in the last two years, we've been applying the language model to our Sohu Media and the social network products. For example, the organized of the content, the better -- the generation of content and especially knowledge-based content and the text-based abstract writing and internal editing with the apply of AI technologies really increased the efficiency.

好的，關於 DeepSeek 應用程序，我們實際上——在過去兩年裡，我們一直將語言模型應用於我們的搜狐媒體和社交網絡產品。例如內容越有條理越好——內容的生成，特別是知識型內容的生成，以及基於文字的摘要寫作和內部編輯，應用人工智慧技術確實提高了效率。

And in the future, we're going to -- also to -- for example, in our live streaming, our AI technology can help us to summarize different -- basically to summarize the video content into text form. And to automatically to mark the different sections of the streaming video content.

在未來，我們還會——例如，在我們的直播中，我們的人工智慧技術可以幫助我們總結不同的——基本上是將影片內容總結成文字形式。並自動標記串流影片內容的不同部分。

And in terms of social network, people interaction will be in our product in the future will have the AI-aided interaction or -- and also is voice-to-text and also sometimes in the future, probably, help with the -- or DeepSeek or in large model, language model to help users to generate content with the voice and word text to turn them into some pictures and videos, and to have really generate some quality, really ease the production process and make it really very -- actually, some of the content will not be able to produce, but now, we'll be able to do it.

就社交網絡而言，我們未來的產品中的人與人之間的互動將有人工智能輔助互動，或者語音轉文本，有時在未來，可能還會藉助 DeepSeek 或大型模型、語言模型來幫助用戶用語音和文字生成內容，將它們轉換成一些圖片和視頻，並真正生成一些高質量的內容，真正簡化製作過程，使其真正非常非常——實際上，我們將無法做到這一點。

So there's a wide range of application of the AI technology and probably DeepSeek. We haven't (inaudible) but, we're looking at that possibility. So basically, help us with our media and the social network user experience and content generation, content organization and editing. Yeah. And also, I think it's also in our gaming, right, also applied language model, right, the AI technology.

因此，AI 技術的應用範圍很廣，DeepSeek 可能就是如此。我們還沒有（聽不清楚）但是我們正在考慮這種可能性。所以基本上，幫助我們改善媒體和社交網路的使用者體驗和內容生成、內容組織和編輯。是的。而且，我認為它也在我們的遊戲中，對吧，也應用了語言模型，對吧，人工智慧技術。

(spoken in foreign language)

（用外語說）

(spoken in foreign language)

（用外語說）

The AI technology application in terms of gaming development is mainly in the area of video production and the second -- and the two-dimension art design.

AI技術在遊戲開發方面的應用主要在影視製作和二次元美術設計方面。

Yeah. Okay, I hope we answered your question, Thomas.

是的。好的，我希望我們回答了你的問題，托馬斯。

Got it. Thank you, Charles.

知道了。謝謝你，查爾斯。

Alicia Yap, Citi.

花旗銀行的 Alicia Yap。

Hello. Good afternoon. Good evening, Charles, and management. Thanks for taking my questions. I have a few follow up. Number one, can management maybe comment a little bit on the overall macro sentiment as related to the advertising budget sentiment? Just curious, given there's a lot of hypes and talks about the technology breakthrough from China.

你好。午安.查爾斯和管理階層，大家晚上好。感謝您回答我的問題。我還有一些後續事宜。第一，管理階層能否對廣告預算情緒相關的整體宏觀情緒發表一些評論？只是好奇，因為關於中國的技術突破有很多炒作和討論。

So I'm not sure, will some of these positive technology sentiment will that -- have you seen any of this actually translate to a slightly better advertiser budget spend on certain category. And also, have you seen any change of the consumer behavior in terms of the consumption as related to some of these positive development. So that's the first question. And then, second question is can you remind us, with your $52 million buyback amount. What's the outstanding amount on the buyback currently? Thank you.

所以我不確定，這些積極的技術情緒是否會——你是否看到這些情緒實際上轉化為廣告商在某些類別上的預算支出略有改善。此外，您是否看到與這些積極發展相關的消費者消費行為發生了任何變化？這是第一個問題。然後，第二個問題是，您能否提醒我們，您的回購金額為 5,200 萬美元。目前回購未償還金額是多少？謝謝。

Well, the buyback, we bought 4.2 million, right? 4.2 million ADS. So we spend one-third of the $150 million right? One-third of $52 million yeah, already, so there's another $100 million to go, right? Approved by the Board. So that's the 4.2 million ADS, okay? In terms of -- as to the macro macroeconomic situation, I think it's just consumption.

嗯，回購，我們買了 420 萬，對嗎？420萬份ADS。所以我們只花了 1.5 億美元的三分之一，對嗎？是的，已經是 5,200 萬美元的三分之一了，所以還差 1 億美元，對嗎？經董事會批准。這就是 420 萬個 ADS，好嗎？就宏觀經濟情勢而言，我認為這只是消費。

Just people that have less money to consume, to spend. That's why companies, products, companies that, accordingly, spend less in marketing, in terms, for example, the most of our auto companies, they're advertising. Budget, I can see in the year 2024, I can see a trend of like almost like cut by half

只是那些沒有太多錢去消費、花的人。這就是為什麼公司、產品、公司在行銷方面的花費較少，例如，我們的大多數汽車公司都在做廣告。預算，我可以看到在 2024 年，我可以看到一個趨勢，幾乎是削減一半

A lot of companies just if they want to spend CNY6 million, now they spend CNY3 million so instead. So it seems that because the consumption is weak, that's why market companies are spending less money in marketing. That's why we can feel that, right? The advertising promote -- marketing platform, we can feel the decline, right? So as to the DeepSeek, I mean, not only DeepSeek but the overall AI technology, bring -- has brought quite an enthusiasm, right, and excitement. But I don't think it's -- I can now translate into any immediate benefits of marketing or companies.

很多企業本來要花600萬，現在卻花300萬。因此看起來，由於消費疲軟，市場公司在行銷上投入的資金較少。這就是我們能感覺到的原因，對嗎？廣告推廣－行銷平台，我們能感受到衰落，對嗎？至於 DeepSeek，我的意思是，不僅是 DeepSeek，而且整個 AI 技術，都帶來了相當大的熱情和興奮。但我不認為——我現在可以將其轉化為行銷或公司的任何直接利益。

Because it's really -- the problem is really people are spending less. People have less money because people bought houses and then they have much less money left to spend, right? But so -- especially to pay the mortgage, that's why, companies don't have them, and there's the product and sales volume that drops, I think. And I don't think AI technology can help that in the short run. And sometimes the AI technology actually destroy jobs, right, not creating jobs. That's what I can see.

因為真正的問題是人們的支出減少了。人們的錢變少了，因為人們買了房子，然後他們剩下的錢就少了很多，對嗎？但是，特別是為了支付抵押貸款，這就是為什麼公司沒有這些錢，而且我認為產品和銷售量也會下降。我認為人工智慧技術在短期內無法解決這個問題。有時人工智慧技術實際上會破壞就業機會，而不是創造就業機會。這就是我所看到的。

I see. So, maybe can I follow up a little bit, Charles? So any other kind of sub-sector that is holding up in terms of the ad budget, for example, let's say the FMCG or even, have you seen, let's say, electronics like the cell phones, given the trade-in and all that, have you seen any increase in terms of the ad spending on any of the categories?

我懂了。那麼，查爾斯，我可以稍微跟進一下嗎？那麼，就廣告預算而言，任何其他類型的子行業，例如快速消費品，或者甚至，您是否看到過，比如說手機等電子產品，考慮到以舊換新等等，您是否看到任何類別的廣告支出有所增加？

Yeah. I think FMCG become -- has risen to the top sector among our advertiser, I mean, the sectors. Previously, before I remember, automobile, although it's number one, right, number one sector, but now FMSG is number one and auto and IT services are becoming number three and number four. Yes, people are actually spending more on some smaller items like food, alcohol, liquor, and electronics, yes.

是的。我認為快速消費品已成為我們廣告商中最熱門的行業。以前，我記得，汽車雖然是第一，對，第一行業，但現在FMSG是第一，而汽車和IT服務正在成為第三和第四。是的，人們實際上在一些小件物品上花費更多，例如食品、酒精、酒類和電子產品。

So, yeah, there -- and also, I think the trading policy also stimulated that to some extent.

是的，而且我認為貿易政策也在一定程度上刺激了這一點。

I see. Okay. Very helpful. Thank you. Thanks, Charles. Thanks, management.

我懂了。好的。非常有幫助。謝謝。謝謝，查爾斯。謝謝管理層。

Thank you for the questions. With that, we now conclude the conference for today. Thank you for your participation. You may now disconnect your lines.

謝謝您的提問。今天的會議到此結束。感謝您的參與。現在您可以斷開線路了。