Thank you, operator. Hello, everyone.

Welcome to JOYY's first quarter 2026 earnings conference call. Joining us today are Ms.

Ting Li, Chairperson and CEO of JOYY, and Mr. Alex Liu, the Vice President of Finance.

For today's call, management will first provide a review of the quarter, and then we will conduct a Q&A session. The financial results and webcast of this conference call are available at ir.joyy.com.

A replay of this call will also be available on our website in a few hours. Before we continue, I would like to remind you that we may make forward-looking statements, including, but not limited to, the future development of our products and businesses, expected future financial performance of the company, our share repurchases, and other forecast future events, which are inherently subject to risks and uncertainties that may cause actual results to differ from our current expectations.

For detailed discussions of the risks and uncertainties, please refer to our latest annual report on Form 20-F and other documents filed with the SEC. We will also discuss certain non-GAAP financial measures.

They are included as additional clarifying items to aid investors in further understanding the company's performance and the impact that these items and events had on the financial results. The non-GAAP financial measures provided above should not be considered as a substitute for or superior to the measures of the financial performance prepared in accordance with GAAP.

You may find a reconciliation of the differences between GAAP and non-GAAP financial measures in our earnings release. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in US dollar.

I will now turn the call over to our Chairperson and CEO, Ms. Ting Li.

Please go ahead, Ms. Li.

Hello, everyone. I'm Li Ting.

Thank you for joining us today. Apologies, but I have caught a cold recently, and my voice is quite weak.

For efficiency of this meeting, I'm going to have our IR, Jane, read through the prepared remarks for me. I'll be back to take your questions during the Q&A.

Thank you for the understanding.

Thank you. As we enter 2026, our social entertainment business has returned to year-over-year growth, while our second growth curves, ad tech and smart commerce, is progressing with strong momentum.

Our globally diversified ecosystem is taking shape, with social entertainment, advertising, and smart commerce bolstering one another in a self-reinforcing strategic flywheel. This flywheel is propelling JOYY into its next phase of growth.

Let me begin with an overview of our Q1 results. Total revenues reached $556 million, up 12.4% year-over-year, marking our strongest year-over-year growth rate in recent years.

Social entertainment revenue was $400 million, up 3.2% year-over-year. BIGO Ads contributed $125 million, up 55.6% year-over-year, among which our third-party BIGO Audience Network delivered 78.8% year-over-year growth.

SHOPLINE revenue reached $31 million, up 16.1% year-over-year. Q1 non-GAAP operating profit and EBITDA reached $38 million and $46 million, up 22.5% and 13.2% year-over-year, respectively.

Operating cash flow for the quarter was $46 million. As of March 31st, 2026, we held $3.18 billion in net cash.

Our strong cash generation continues to support meaningful shareholder returns. Since the start of 2026, we have accelerated our buyback program.

Through May 22nd, 2026, we have repurchased a cumulative $88 million in shares and paid $69 million in dividends, for a total return of $157 million to shareholders. In light of our solid operational performance and robust balance sheet, the board has just approved an updated shareholder return program totaling $1.5 billion, under which we could repurchase up to $600 million worth of our shares and distribute approximately $900 million in dividends over the next 3 years.

This underscores our strong confidence in the long-term potential of our business and demonstrates our continued commitment to delivering sustainable value to our shareholders and enabling shareholders to benefit from our operational improvements. This quarter marks the first quarter we are reporting results under our new three-segment structure: social entertainment, BIGO Ads, and SHOPLINE.

I'd like to take this opportunity to reaffirm our long-term strategic vision. We are building a global technology ecosystem driven by AI.

This ecosystem is designed to unlock compounding returns from our data assets through the deep integration of social entertainment, programmatic advertising, and omnichannel e-commerce, creating a self-reinforcing growth flywheel. Social entertainment is our foundational business, providing the user base, data assets, and cash flow that support the broader ecosystem.

By building a highly engaged global user community, we have accumulated a valuable first-party data asset and a scaled global traffic pool, supported by established technology infrastructure and localized operational networks across key markets. Social entertainment underpins our cash flow generation and serves as the long-term anchor of the group.

BIGO Ads accelerates our flywheel, strengthening our data and algo advantages. Through advanced predictive models and algo optimization, we convert traffic into measurable, scalable advertiser ROI.

Each iteration further enriches our data assets and deepens our algo moat, building our competitive advantage. SHOPLINE is the engine of our one-stop omnichannel e-commerce offering and provides merchants with open, connectable infrastructure that puts data ownership back in their hands.

This control empowers them to maximize business performance across the full customer lifecycle. AI is the backbone of this entire ecosystem, seamlessly connecting our social data assets, algos, and e-commerce capabilities.

Together, these three pillars form a closed-loop system that deepens our economic moat and drives long-term value creation for JOYY. Now, let me walk through our Q1 performance and share our outlook on the future.

In Q1, social entertainment revenue returned to year-over-year growth of 3.2%, with live streaming revenue up 2.4% year-over-year. Core live streaming paying users grew 5.9% year-over-year.

On the traffic side, global average mobile MAUs reached 276 million, up 6.1% year-over-year and 1.5% Q-o-Q. Driven by high user stickiness and fully organic growth, traffic from Instant Messenger increased by 3.1% Q-o-Q.

For our flagship products, we improved our streamer incentive structure, launched targeted support programs for high-quality content categories, and integrated new AI capabilities. These initiatives drove ongoing gains in both content engagement and payment conversion.

Streamer activity improved sequentially despite seasonal impacts. Number of active streamers increased 1.5% Q-o-Q, and average effective streaming hours per streamer rose 1.4% Q-o-Q.

We have now fully rolled out our AI smart tools for streamers across key markets, meaningfully improving interaction efficiency. As of April, AI-generated interactive virtual gifts accounted for 34% of total virtual gift consumption on Bigo Live.

Our new product lineup continued to gain traction, with revenue up over 500% year-over-year and 45% Q-o-Q, setting new monthly revenue records. Our current Q2 guidance implies low to mid-single-digit year-over-year growth for social entertainment revenue.

Building on this momentum, we are confident that our social entertainment business will achieve full-year revenue growth in '26 and sustain this positive trajectory going forward. Moving to BIGO Ads, in Q1, BIGO Ads generated $125 million in advertising revenue, up 55.6% year-over-year.

Our third-party business, the BIGO Audience Network, delivered 78.8% year-over-year despite the seasonal softness of Q1. Broader traffic coverage, multi-vertical advertiser expansion, and ongoing algo optimization fueled this momentum.

On supply side, SDK traffic maintained strong growth of 109% year-over-year and 7% Q-o-Q in Q1. On demand side, our strategic presence across multiple verticals, including lead generation, e-commerce, and IAA, drove an enrichment of our advertiser mix and enhanced ecosystem density.

This multi-vertical approach not only accelerated data accumulation and algo iteration, but also strengthened our traffic bidding capabilities. Notably, web-based demand, primarily from lead gen and e-commerce advertisers, grew 90% year-over-year and delivered positive sequential growth.

Incremental spend from both new and existing advertisers fully offset the typical seasonal softness of Q1. IAA spending sustained 97% year-over-year growth.

Geographically, we prioritized high-value developed markets. North America remains our largest market for BIGO Ads, while Western Europe delivered notable momentum, with revenue up 27% Q-o-Q.

On the algo side, we are steadily and prudently scaling our computing infrastructure and strengthening our R&D talent base. By integrating data feedback from advertisers across channels and leveraging the dual growth of traffic scale and advertiser density, we have built a rich behavioral data layer.

This enables multidimensional, precise user profiling and real-time model iteration, which in turn improves ad delivery efficiency. The fact that we are seeing positive feedback across multiple verticals validates the generalization capabilities of our model framework.

As our data scale accelerates and the vertical-specific models mature, we expect our algo flywheel will increasingly serve as the primary engine of our revenue growth going forward. We reiterate our strategic commitment to reaching $1 billion in BIGO Audience Network revenue by 2028.

As our third-party advertising business continues to scale, we expect a steady, structural improvement in profitability. Turning to SHOPLINE, this is the first quarter we are reporting SHOPLINE as a stand-alone segment.

The decision to do so now reflects our belief that SHOPLINE has reached a critical mass in terms of its importance to the group and that SHOPLINE will become an increasingly meaningful contributor to our growth going forward. As global commerce enters the omnichannel era, merchants increasingly desire autonomy and full-funnel data ownership.

We have built SHOPLINE as an AI-native, one-stop omnichannel e-commerce infrastructure. What we offer merchants is not simply a storefront-building tool, but a fully open, connectable retail operating system.

Through deep integration with payments, logistics, and marketing modules, we empower merchants across every stage of their journey, from store setup and transactions to fulfillment and full-lifecycle customer retention. Globally, very few vendors are capable of delivering this kind of OS-level closed-loop solution.

We are also accelerating the integration of a suite of AI-powered capabilities. The tools will drive SHOPLINE's ongoing evolution from an enablement tool to an AI-driven commerce engine to represent a fundamental shift in how merchants operate.

AI-powered traffic allocation and automated decision-making will unlock new growth opportunities and new levels of precision across omnichannel retail. On monetization, beyond high-retention subscription fees, we generate revenue through transaction-based value-added services in payment and marketing.

These reflect a fundamental distinction from traditional seat-based software tools. This monetization model deeply aligns with merchants' full-lifecycle growth, will fuel SHOPLINE's ongoing accelerating performance.

Q1 is traditionally a slow season for e-commerce, yet SHOPLINE delivered solid results. Revenue was $31 million, up 16.1% year-over-year, with gross margin expanding further to 51.5%.

Revenue growth from cross-border merchants remained robust, sustaining over 60% year-over-year growth. Our Q2 guidance implies SHOPLINE's revenue growth accelerating to above 25% year-over-year in Q2.

This meaningful progress marks SHOPLINE's transition from incubation to a phase of scaled growth. Propelled by accelerated revenue and gross profit growth, SHOPLINE is on a clear and visible path to achieve breakeven by 2028.

Additionally, as BIGO Ads makes steady progress in the DTC e-commerce vertical and moves past its cold-start phase, we anticipate increasingly tangible synergies between these two businesses going forward. This marks a crucial long-term strategic objective of JOYY, and we are committed to solid execution to unlock this untapped potential.

Finally, in summary, our strategic layout and the unlocking of our ecosystem's value remain in their early stages. Looking ahead, we expect our three business segments to generate stronger structural synergy, further deepening our competitive moat and driving JOYY's long-term value to its next level.

With that, I will now hand the call over to Alex Liu, our Vice President of Finance, to walk you through our financial results in detail.

Thanks, Ms. Li and Jane.

Hello, everyone. Beginning this quarter, we are reporting social entertainment, BIGO Ads, and SHOPLINE as stand-alone segments.

This step reflects our strategic inflection point. BIGO Ads and SHOPLINE have evolved from incubation projects into scalable growth engines.

Now, let's turn to financial overview of the quarter. In the first quarter of 2026, we recorded total net revenues of $555.7 million, securing a year-over-year growth of 12.4%, our strongest year-over-year growth rate in recent years.

Our non-GAAP EBITDA for the quarter was $45.7 million. Our operating cash flow was $46 million in quarter one, and we ended the quarter with roughly $3.18 billion in net cash.

As previously communicated, we accelerated share buyback since we entered into 2026, buying back $87.9 million worth of our shares as of May 22. In light of our solid operational performance and robust balance sheet, we have just announced an updated shareholder return program totaling $1.5 billion, in which we could repurchase up to $600 million worth of our shares and distribute up to $900 million in dividends over the next 3 years, which represents a 67% expansion from the previous program, showing our strong confidence in the company's long-term prospects.

I will now dive deeper into our detailed financial performance. Social entertainment revenues were $400.4 million for the first quarter, delivering its first year-over-year recovery of 3.2% year-over-year.

In particular, live streaming revenues returned to 2.4% year-over-year growth, which marks an inflection point and a result of the strategic adjustments we executed over the past several quarters. Core live streaming paying users increased by 5.9% year-over-year, while live streaming revenues from developed countries increased by 11.2% year-over-year.

BIGO Ads continued to deliver exceptional growth, with its revenue up by 55.6% year-over-year to $124.8 million. In particular, our third-party ads revenue, BIGO Audience Network, delivered outstanding results, recording 78.8% revenue growth year-over-year.

On the traffic front, SDK network and requests were up by 109% year-over-year and 7% quarter-over-quarter in quarter one. Our multi-industry strategy has helped us capture broadened market opportunities.

Web-based demand was up by 90% year-over-year. Mobile-based demand continued to be strong, with IAA spending up by 97% year-over-year.

We are right on track to achieve our 3-year strategic goal for BIGO Audience Network, which is maintaining high-velocity growth and reaching 3-year revenue milestone of $1 billion. While we are prudently investing in the expansion of our R&D and sales capabilities, as well as our network and computing infrastructure, Audience Network's economics remain healthy.

We are confident that as we scale, we will remain profitable and potentially further enhance Audience Network's economics in the medium term. SHOPLINE kicked off its debut quarter, generating revenue of $30.5 million, delivering a 16.1% year-over-year revenue growth.

Cross-border merchant revenue was up by 66%, with its revenue contribution up by 8% compared to quarter one last year. We expect cross-border merchant revenue to maintain a high-velocity growth going forward, while rising revenue contribution from this merchant segment will lead to gradual acceleration of SHOPLINE's overall revenue growth.

Group's gross profit was $189.3 million in the quarter, with a gross margin of 34.1%. BIGO Ads gross margin was down quarter-over-quarter due to a shift in our revenue mix, which saw an increased contribution from our lower-margin network ad revenues.

SHOPLINE's gross margin was up by 6.8 percentage points year-over-year to 51.5%, primarily due to growth in high-margin subscription revenues, as well as improving gross margin for its value-added service revenues. Our group's operating expenses for the quarter were $183.4 million.

Sales and marketing expenses were higher year-over-year, consistent with revenue increase. G&A expenses were also higher year-over-year, primarily due to increased share-based compensation expenses.

Our group's non-GAAP operating income for the quarter was $38 million. Non-GAAP net income attributable to controlling interest of JOYY in the quarter was $55.9 million.

The group's non-GAAP net income margin was 10.1% in the quarter. Our non-GAAP net income was lower due to higher FX loss of $13.6 million due to the weakening US dollar.

Excluding the impact of FX losses, our non-GAAP net income was $69.5 million, up by 8.7% year-over-year. For the first quarter of 2026, we booked net cash inflows from operating activities of $46 million.

Our balance sheet remains healthy, with a strong net cash position of $3.18 billion as of March 31st, 2026. As of May 22, we had returned $156.8 million to our shareholders through dividends and share buyback.

Our accelerated share buybacks in the past quarters and the newly introduced 3-year shareholder return program reaffirms our previous statement: shareholder return has been and will continue to be an important component of our capital allocation strategy. We will remain focused on delivering strong results, actively executing our new programs, and enable our shareholders to benefit from our operational improvements.

Turning now to our business outlook. At group level, we expect our net revenues for the second quarter of 2026 to be between $562 million and $581 million.

This implies a 10.7% to 14.4% year-over-year growth for the group's revenue, with social entertainment sustaining positive growth year-over-year, BIGO Ads delivering mid-double-digit growth, while SHOPLINE growth accelerating in the second quarter. To summarize, Q1 2026 marks a pivotal milestone for JOYY.

We have delivered our strongest year-over-year revenue growth in recent years, realigned our reporting structure to match our strategic priorities, and accelerated our commitment to capital returns through enhanced buybacks. Looking ahead, we are extremely excited about the tremendous synergy potential and the powerful flywheel momentum that our business segments will deliver in medium to long term.

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

Thanks.

SHOPLINE 这三个业务板块披露我们的业绩。我们看到在社交娱乐业务下的直播的收入在 Q1 也实现了同比的正增长。可否再进一步说一下这一个复苏的是否可以持续这个定义？第二的话，管理层可否分享一下我们 26 年全年各个业务线的收入还有利润的指引？Hi. Good morning.

Thanks, management, for taking my question. My first question is that this is the first time the company disclosed its performance in three business segments, namely social entertainment, BIGO Ads, and SHOPLINE.

For social entertainment, live streaming revenue achieved a positive year-on-year growth in Q1. Can management further elaborate whether this is a sustainable recovery?

My second question is about our full-year outlook. Can management comments about our 2026 revenue and profit guidance for each business line this year?

Thank you. 谢谢

Thomas。第一个问题会由我来回答。一季度，正如此前所预期的，我们的社交娱乐的收入同比涨了 3.2%，其中直播收入同比涨了 2.4%，正式回归到了同比正增长的轨道。其实自 24 年下半年以来推动的一系列的调整，尤其是主播激励机制的调整，持续对直播生态的修复发挥着作用。一季度本应该是主播开播的淡季，但我们仍然实现了有效开播主播数和人均有效开播时长的环比正增长。优质的内容品类，比如音乐主播的开播人数也获得大幅度的上涨。在整体的内容供应和主播能动性的提升的基础上，我们继续推动了精细化的用户分层运营和激励体系升级，并通过 AI 等多个环节的赋能改善了内容分发和付费体验。这些改善也进一步推动了付费转化率的提升，以及核心直播付费用户增长了近 6%。在新产品的矩阵方面，一季度也取得了显著的进展，同比增幅超过 500%，收入持续创新高，为社交娱乐整体增长持续贡献了增量。目前来看，二季度指引预示社交娱乐收入同比增速将较第一季度进一步加速。基于这一势头，我们对 2026 年直播收入实现稳健正增长充满信心。

Thank you, Thomas. This is Li Ting.

I will answer your question. For the first question, first of all, in Q1, as expected, our social entertainment revenue was up by 3.2% year-over-year, with live streaming revenue up 2.4% year-over-year, returning to positive year-over-year growth trajectory.

We have been executing a series of structural enhancements since the second half of 2024, particularly with our streamer incentive mechanism. These, we believe, have continued to strengthen our live streaming ecosystem.

Despite Q1 typically being a low season for streamer activity, we still achieved a sequential increase in the number of active streamers and also the average effective streaming hours per streamer. Notably, the music streamers, which is one of our key quality content genre, also saw a meaningful uptick in streamer participation.

Building on the improved content supply and streamer engagement, we continued to refine our user segmentation and also upgrade our tiered paying user benefit system. Combined with AI-driven optimization on content distribution and also payment experience, these efforts drove further improvement in paying conversion, with core live streaming paying users growing nearly 6% year-over-year.

Our new product lineup also continued to gain traction in Q1, with revenue up over 500%, setting new monthly records and contributing incremental revenue to social entertainment. Looking ahead, our current Q2 guidance implies a low to mid-single-digit year-over-year growth for social entertainment revenue, which represents an acceleration from Q1.

Building on this momentum, we are confident that live streaming revenue and also social entertainment revenue will achieve steady positive growth in 2026.

哎，Thomas，早啊。我是 Alex，我来回答一下您的第二个问题啊。展望 26 年的二季度，我们目前给予市场的集团收入指引是实现同比 10.7% 到 14.4% 的一个增长。那分业务线来看的话，社交娱乐的业务我们预计二季度的收入会实现一个低到中个位数的同比增长。那么 BIGO Ads 的话将延续强劲的表现，实现一个中双位数的同比增长。SHOPLINE 二季度的营收的同比增速会提升到 25% 以上。展望全年的话，我们预计社交娱乐实现同比稳健的增长。BIGO Ads 方面呢，随着流量规模持续的扩大，多垂直广告主的覆盖加深，以及我们算法模型的不断迭代优化，飞轮效应啊将推动 BIGO Ads 全年保持强劲的中双位数的同比增长。SHOPLINE 方面，跨境商户快速渗透以及新市场的拓展，我们预计 SHOPLINE 业务也将维持两位数的营收增长。那么随着三条业务线均进入到上升通道，我们对 2026 年集团的全年收入实现正增长是充满了信心的。经营利润方面的话，展望二季度，随着各业务板块收入的环比增长，我们预计集团经营利润也获得环比的增长。全年来看，社交娱乐业务在直播业务重新回归增长的同时呢，直播整体的利润将保持平稳或小幅的增长。BIGO Ads 的三方广告目前处于一个高速扩张的阶段，今年我们会在研发、在销售团队的建设以及基础设施上进行持续不断的投入。但考虑到当前阶段优异的模型啊已经非常地健康，我们有信心在保持盈利的基础上，随着规模的进一步提升，中长期盈利能力有望持续地增强。那么对于 SHOPLINE 来讲的话，运营费用是相对固定的，在收入和毛利增长的驱动下，相信亏损可以持续不断地收窄。所以综合来看，我们预计 26 年集团 non-GAAP 的净利润和 EBITDA 将延续 25 年的改善趋势，实现同比 teens 的稳步提升。在净利润的层面上，我们想就外汇损益的科目进行一个补充解释。由于美元对人民币汇率的持续贬值，我们一季度以及预计二季度啊会有比较大额的未实现的一个汇兑损失，unrealized FX loss。对，但这部分呢其实是和经营不相关的，是属于一个浮动的盈亏。在美元升值的时候，又会产生未实现的一个汇兑收益。对。

This is Alex. I will take your second question.

For Q2, our current guidance implies a 10.7% to 14.4% year-over-year growth for our group revenue. By segment, we expect social entertainment to deliver a low to mid-single-digit year-over-year growth, BIGO Ads to sustain mid-double-digit year-over-year growth, and SHOPLINE's revenue growth to accelerate to above 25% year-over-year.

For the full year of '26, we expect our social entertainment to deliver steady year-over-year growth rate. For BIGO Ads, with continued traffic expansion, deepening multi-vertical advertiser coverage, and ongoing algo optimization, we expect a strong mid-double-digit year-over-year growth for the full year.

For SHOPLINE, with accelerating cross-border merchant penetration and also new market expansion, we expect it to sustain a double-digit revenue growth. With all three segments now entering into an upward trajectory, we are confident that the group will deliver positive, solid revenue growth for the full year of 2026.

Turning to operating profit, for Q2, we expect sequential improvement in the group operating profit in line with our Q-o-Q revenue growth across all segments. For the full year, on social entertainment side, with live streaming revenue back to growth, we expect live streaming profit to remain stable or grow modestly.

For BIGO Ads, our Audience Network is rapidly scaling, and we will need to continue to invest in R&D, sales, and also our network infrastructure. Given the healthy economics of the Audience Network at this stage, we are confident that as we scale, we will remain profitable, and we expect to see further improvement in its economics over the medium term.

For SHOPLINE, with its operating expenses relatively fixed, revenue and gross profit growth will drive continued narrowing of its operating losses. Overall speaking, we expect the group's non-GAAP operating profit and EBITDA to continue the improving trend that we achieved in '25, delivering a steady teens year-over-year growth in 2026.

At a net profit level, I do want to provide some additional context on FX fluctuations. Due to the continued weakening of the US dollar against RMB, we recorded significant unrealized FX losses in Q1, and we expect similar impact from FX in Q2.

However, we'd like to remind you that these are non-operational mark-to-market fluctuations, when the dollar strengthens, they will be reversed.

Next question, please.

BIGO Ads 它的表现是明显好于预期的，然后请问这个核心的驱动力是什么？另外呢，就是目前公司已经接入像

MAX 啊，然后还有 LevelPlay 这两大头部的聚合平台，能不能再介绍一下我们目前跟其他的聚合平台的合作进展，以及对业务有什么潜在的影响？谢谢。 哦，谢谢您的问题。那这个问题会继续由我来回答。在一季度，BIGO Ads 实现了同比增长 55.6%，其中三方广告平台同比增长了 78.8%，环比也实现了微增。整体的表现是好于预期的。核心的驱动力会来自以下几个方面。第一，多元垂类的战略布局成效显现。凭借着在线索收集、D2C 的电商、IAA 等垂类的深刻的这个根基，一季度的外部端的预算同比增长了 90.1%，环比也逆势取得了正增长。IAA 的预算同比增长了 97%。这是我们在传统淡季能够交出好于预期的成绩单的核心原因。第二个方面，算法的能力的持续取的升级。通过持续推动广告全渠道的数据回传，叠加了 AI 模型的标签，更全面的用户行为数据，我们实现了用户画像的聚合迭代，显著提升了平台上的广告分发效率。此外，我们还完成了中台模型的框架升级，根据不同广告的特性对模型进行有针对性的升级迭代，并针对线索、IAA、独立站电商等多垂类进行了专项优化，提高了算法效率。在数据的积累和算法迭代的作用下，流量触达和变现效率持续提升，广告主的留存和平均投放预算增加，形成了飞轮效应。那接下来，我们还是会持续优化迭代算法模型。从效果上看，多垂类行业的正向反馈已经验证了中台模型框架的泛化能力。随着数据规模的加速积累和垂类模型的持续精细化，算法飞轮效应正在加速释放，将逐步成为下个阶段、下半年乃至明年广告收入增长的主要引擎。关于流量侧，我们还在积极地推进和头部聚合平台的合作。那目前有一个合作项目已经进入了内测的阶段，我们预计将在 2026 年内完成正式对接。我们预计在正式接入后，将帮助广告主在全球范围内触达更广泛的优质流量，进一步提升我们的流量覆盖深度和广度，为飞轮效应注入新的加速力。我们对 BIGO Ads 的三方广告业务持续保持高速增长非常有信心。

Thank you, CC. This is Li Ting.

I will take your question. In Q1, BIGO Ads delivered 55.6% year-over-year growth, with third-party BIGO Audience Network growing by 78.8% year-over-year and also delivering a modest positive sequential growth.

The overall performance was ahead of our expectations, and I would attribute it to the following key drivers. Our multi-vertical strategy is definitely delivering clear results, leveraging our established capabilities in lead generation, direct-to-customer e-commerce, and also IAA.

Our web-based demand grew by 90% year-over-year in Q1 and delivered positive sequential growth despite Q1 being a slow season. IAA demand grew by 97%, and this was the primary reason that we were able to deliver better-than-expected results during Q1.

Secondly, the continuous upgrade of our algo capabilities. We have been driving a broader cross-channel data feedback from advertisers, combined with AI-powered labeling and richer user behavioral data, which significantly enhance our user profiling and ad delivery efficiency on the platform.

We've also completed a framework upgrade to our core predictive model with specialized optimizations across lead gen, IAA, and e-commerce verticals. As data accumulates and algo iterates, we are seeing sustained improvements in monetization efficiency, with higher advertiser retention and also a growing average spend per advertiser, forming a self-reinforcing effect.

Going forward, we will continue to optimize and iterate our algo models. The positive result that we have already achieved across multiple verticals have validated that the generalization capability of our model framework.

As data continue to accumulate at an accelerating pace and vertical-specific models continue to mature, the algo flywheel is gaining momentum, and we expect it to increasingly serve as the primary engine for our advertiser revenue growth in the following stage, particularly in the second half and also even beyond. Regarding our question on mediation partnerships on traffic side, we are actively advancing integrations with industry-leading mediation platforms.

One of our partnership has already entered the beta testing phase, and we expect to complete official integration within 2026. Once live, it will enable advertisers to reach a broader pool of high-quality traffic globally, further expanding our traffic coverage in depth and breadth and injecting new momentum into the flywheel.

We have very strong confidence in sustaining rapid growth for BIGO Audience Network. Thank you.

Next question, please.

SHOPLINE 首次进行单独披露，能否请管理层分享经营进展及扭亏的路径？Thanks, management, for the opportunity to ask question. Noting that SHOPLINE made its first standalone disclosure, could management elaborate more insights on the latest business updates and the path to break even and profitability?

Thank you. 谢谢您的问题，那这个问题会继续由我来回答。是的，这是我们第一次把

SHOPLINE 作为一个独立板块来披露。刚才在讲稿中我们也有提到，SHOPLINE 的定位是以 AI 为底层的“一站式全渠道电商基础设施”。我们做的不是一个简单的建站工具，而是一套开放、可扩展的全渠道零售操作系统。这里把支付、物流、营销都深度地集成在了一起，让商家在一个平台上完成从建站、交易、履约，到用户获取和全生命周期留存的所有的环节。在全球的范围内，能提供这种操作系统级别的闭环方案的服务商非常有限。从收入模式来看，SHOPLINE 构建了高黏性订阅费基石加高爆发增值的差异化商业变现模式。一方面，稳健的订阅成为了底层入口，积累了商家的基础，形成了经常性的收入。另一方面，SHOPLINE 通过高速增长的支付、营销等增值服务，实现了对交易闭环的深度渗透的 GMV 变现。这种与商家全链路成长深度绑定的变现模式，将成为驱动 SHOPLINE 业绩持续爆发的引擎。我们的商户群体可以分为本地对本地和跨境商户两大部分。以品牌大客户为主导的跨境商户收入自去年以来保持了高速增长。目前，我们主要投入研发费用已经趋稳，收入和毛利的提升都带来了经营杠杆效应。SHOPLINE 的亏损在大幅地收窄，以及随着收入和毛利规模的加速提升，我们有信心也会全力推进 SHOPLINE 在 2028 年实现盈亏平衡。

Thank you, Raphael, for your question. This is Li Ting.

Yes, this is the first quarter that we are reporting SHOPLINE as a stand-alone segment. As we mentioned in our prepared remarks, we have positioned SHOPLINE as an AI-native, one-stop omnichannel commerce infrastructure.

What we are building is not a simple storefront building tool, but rather an open and connectable, extensible retail operating system that deeply integrates payments, logistics, and marketing modules, allowing merchants to manage everything from store setup and transactions to fulfillment and full-lifecycle customer retention on one single platform. Globally speaking, very few vendors are capable of delivering this kind of OS-level closed-loop solution.

In terms of revenue model, we have built a differentiated monetization framework anchored by high-stickiness subscription fees and accelerated by high-growth value-added services. On one hand, a stable subscription revenue serves as the foundational entry point, building a robust merchant base and generating recurring revenue.

On the other hand, through deeply penetrating transaction loop and monetizes GMV through rapidly growing value-added services, including payment and also marketing. This monetization model, which is deeply aligned with the full-lifecycle growth of merchants, will serve as the primary engine driving the continuous growth in SHOPLINE's financial performance.

When we look at SHOPLINE's merchant base, we currently serve two major categories: local-to-local merchants and also cross-border merchants. Revenues from cross-border merchants, predominantly key accounts, the larger brands, have maintained high-velocity growth since last year.

Our R&D spend, which has been our primary OPEX, has largely stabilized, and the improvement in revenue and gross profit is generating operating leverage, and SHOPLINE's losses are narrowing meaningfully. Looking ahead, we see a clear and achievable path for SHOPLINE to reach breakeven by 2028, and we are fully committed to delivering on that.

Thank you.

Maybe one last question, please?

15 亿美金的一个股东回馈计划，包括 6 亿美金的回购和 9 亿美金的分红。那想请问管理层能不能分享一下大幅提升股东回报的一个考虑？谢谢。Thanks, management, for taking my question. My question is about shareholder returns.

The company announced a new 3-year shareholder return plan of US dollar $1.5 billion this quarter, including $600 million in share buyback and $900 million in dividends. Can management share the thinking behind the significant increase in shareholder returns?

Thank you. 薛清啊，谢谢你的提问。我是

Alex，我来回答一下啊。本季度我们非常高兴地宣布了全新的一个三年股东的回馈计划，总规模呢达到了 15 亿美金，覆盖 26 年到 28 年的财年。这个新的方案其实取代了以前三年 9 亿美金的股东回馈计划，总体的规模提升了约 67%。那具体来看的话，新计划是两个部分。第一，每年 3 亿美金的年度分红。和以前的年度分红计划相比的话是提升了 50%。第二的话是每年 2 亿美金的回购额度，比以前的回购翻了一倍。对，做出这个决定呢，就是我们背后有几个核心的考虑点啊。第一，首先我们三大业务线都已经进入到了一个清晰的增长的轨道，那么为更高水平的股东回馈其实是奠定了非常扎实的一个基础。第二的话呢，公司维持强劲的一个净现金的储备。对，截止到 3 月底，还有 30 接近 32 亿美金，完全有能力支持这一承诺的执行。第三的话，我们认为当前股价仍然是显著低估了公司的长期价值的，那么持续加大回购力度本身也是管理层信心最直接的一个体现。那么未来在展望三年的话，我们将坚定地执行这一计划，让股东切实分享到公司经营改善所带来的红利。谢谢。

Thank you, Xueqing, for your question. This is Alex.

We're very pleased to announce this quarter our new 3-year shareholder return plan totaling $1.5 billion, covering fiscal years 2026 through 2028. This replaces our previous program totaling $900 million, representing a roughly 67% expansion in our total commitment.

Specifically, the new plan comprises two components: annual dividend of $300 million per year, that would be up by 50% from our previous $200 million per year, and our annual share buyback, the the share repurchase authorization per year, the annualized buyback quota would be $200 million, and that would be nearly doubling the average quota of $100 million under the previous plan. There were several key considerations behind our decision.

All three business segments are now on a clear growth trajectory, providing a very, very solid foundation for a higher level of shareholder returns. At the same time, our strong net cash position, as of the end of Q1 we still have around $3.2 billion of net cash on hand, this gives us the full financial capacity to execute on this commitment.

We do believe that the current share price still materially undervalues our long-term potential, and our commitment to increasing buyback is a very direct expression of the management's strong conviction in the future of the company. Looking ahead over the next 3 years, we are firmly committed to executing this plan and enabling our shareholders to benefit from improving operations.

That was the last question, and thank you so much for joining us today. We look forward to speaking with everyone next quarter.

Thank you.