Thank you, Operator. Good evening and good morning to everyone.

Welcome to Kuaishou Technology third quarter 2025 financial results conference call. Joining us today are Mr.

Cheng Yixiao, co-founder, Chairman and CEO; Mr. Jin Bing, our CFO.

Before we start, please note that today's discussion may contain forward-looking statements, which involve a number of risks and uncertainties. Actual results and outcomes may differ from those discussed.

The company does not undertake any obligation to update any forward-looking information, except as required by law. For more important information about this call, including forward-looking statements, please refer to the company's public information or third quarter 2025 results announcement ended September 30th, 2025, issued earlier today.

During today's call, management will also discuss certain non-IFRS financial measures. These are provided for additional information and should not replace IFRS-based financial results.

For definition of non-IFRS financial measures and reconciliation of IFRS to non-IFRS financial results and related risk factors, please refer to the third quarter 2025 results announcement. For today's call, management will use Chinese as the main language.

A third-party interpreter will provide a simultaneous English interpretation in the prepared remarks session and a consecutive interpretation during the Q&A session. Please note that English interpretation is for convenience purposes only.

In case of any discrepancy, management's original language will prevail. Lastly, unless otherwise stated, all currency units mentioned are in RMB.

Now I'll turn the call over to Yixiao.

Hello, everyone. Welcome to Kuaishou's third quarter 2025 earnings conference call.

In Q3, we continued to advance our AI strategy, expanding scenario-based AI applications and innovative use cases across our business. These efforts created tangible business value across all business scenarios, strengthened the quality and efficiency of our organizational infrastructure, and fueled strong operational and financial results.

Average DAUs on the Kuaishou app surpassed 416 million in Q3, marking the third consecutive quarter of record highs. Total revenue for Q3 rose by 14.2% year-over-year to 35.6 billion RMB.

Revenue from our core commercial businesses—online marketing services and other services, primarily e-commerce—increased by 19.2% year-over-year. Adjusted net profit rose 26.3% year-over-year to 5 billion RMB, with an adjusted net margin of 14.0%.

We achieved a year-over-year growth in the group's overall profitability while continuing to invest strategically in AI, a catalyst for unlocking deeper value across our content and business ecosystems. First, our AI strategy and the progress of our large video generation model, Kling AI.

We continue to refine the foundation models behind Kling AI, developing new features to meet creators' diverse needs and build a one-stop creative productivity platform that empowers everyone to tell captivating stories with AI. In Q3, we launched the Kling Lab, and upgraded the start and end frames function, and introduced digital human solutions.

Notably, at the end of September, we released the Kling AI 2.5 model, achieving substantial advances in prompt adherence, dynamic effects, style consistency, and visual aesthetics. Just 10 days after launch, the model was simultaneously ranked as the world's number one text-to-video and image-to-video model by ArtificialAnalysis.ai, an independent AI benchmarking platform.

While maintaining its leading content generation performance, the new model also integrates continuous engineering innovations that lower video inference costs, reducing creators' per-video generation expense by almost 30%, and further strengthening Kling AI's cost-efficiency advantages. Kling AI's innovations in foundation models and product features have provided creators with higher quality video generation solutions, establishing a foundation for broader adoption across professional creative fields such as marketing, e-commerce, film and television, short plays, animation, and gaming.

As Kling AI continues to expand its use cases, it has made breakthroughs in monetization and revenue growth. In Q3, revenue from Kling AI exceeded 300 million RMB.

Kling AI is committed to empowering global creators and building a premium ecosystem. In September, we launched the Kling AI NextGen Creative Contest, which received over 4,600 entries from 122 countries and regions worldwide, covering diverse fields such as history, science fiction, and animation.

Outstanding works were screened at international film festivals, including Cannes, Tokyo, and Busan, further integrating AI-powered film and TV works with the traditional film and TV industries. In Q3, we achieved strong results from integrating AI into diverse internal and external use cases.

On business empowerment, large AI models have now been integrated across all of Kuaishou's major business areas, driving incremental value across our ecosystem. We iterated our end-to-end generative recommendation large model, OneRec, and extended it beyond short video recommendations to additional recommendation scenarios, such as online marketing services and e-commerce shopping mall.

This expansion has generated meaningful incremental benefits. In Q3, large AI models demonstrated notable effects, especially in online marketing services.

We pioneered a generative reinforcement learning-based bidding model that integrates sequence modeling with goal optimization. This innovation transformed advertising bidding from a single-step decision-making to long-term strategic planning, significantly enhancing bidding capabilities and ROI for clients, especially for small and medium-sized ones.

Meanwhile, we explored using end-to-end generative recommendation in online marketing services scenarios through OneRec. Tailored to the characteristics of online marketing services, we introduced the client marketing expression and marketing commercial value perception mechanism to achieve bidirectional matching between users' interests and clients' demands, enhancing personalization and matching efficiency.

Large AI model technologies, especially OneRec, drove roughly 4% to 5% growth in domestic online marketing services revenue in Q3. In terms of online marketing material generation, Kling AI's large model has significantly reduced video production costs for clients.

Meanwhile, advanced digital human technology has also opened up new operational scenarios in live streaming for both online marketing clients and e-commerce merchants. Consequently, the total spending from online marketing services driven by AIGC marketing materials exceeded 3 billion RMB in Q3.

For e-commerce, we launched OneSearch, an end-to-end generative retrieval architecture. It enables more precise product matching and optimizes user experience, driving nearly 5% growth in shopping mall search order volume.

The adoption of OneRec in e-commerce also contributed to high single-digit GMV growth in the shopping mall feed in Q3. For entertainment live streaming, we leveraged Kling AI to introduce the AI Universe gift customization feature, which generates highly personalized avatar-based personal gifts, increasing both user engagement and willingness to pay.

Second, user growth and content ecosystem. In Q3, average DAUs on the Kuaishou app reached 416 million, and MAUs reached 731 million.

This is the third consecutive quarter that average DAUs reached a record high. The sustained and steady traffic growth reflects Kuaishou community's unique appeal to users.

By refining our user growth strategies, offering distinctive and diverse content, optimizing our traffic allocation mechanism, and enhancing community engagement, we continue to reinforce Kuaishou's identity as a heartwarming, diversified, informative, and engaging online community. In Q3, average daily time spent per DAU on the Kuaishou app was 134.1 minutes, while total user time spent rose by 3.6% year-over-year.

Our refined user growth strategies leverage smart marketing material placement to enhance acquisition efficiency, lowering the acquisition cost per new user year-over-year. In traffic allocation, by modeling users' long-term user interaction patterns, we improved both user satisfaction and retention.

We also continued to upgrade users' sharing experience within private messaging and iterated on social interaction features. As a result, the daily average penetration rate of private messages among users with mutual followers increased by more than 3 percentage points year-over-year.

We also elevated the user product experience through a series of device-level intelligent optimizations. In content operations, we partnered with Beijing Radio and Television Station to launch the 2025 Kuaishou Super Summer Gala, where celebrities and everyday users come together and celebrate.

The live stream session attracted a peak over 5.4 million concurrent users. To cater to young audiences, we hosted an online concert featuring DNA, which drew 980 million live streaming views.

In the pan-knowledge category, we curated the Liyuan Music Festival summer tour series, showcasing offline tours across diverse traditional art forms, such as Qinqiang and also Shanbei Shuoshu. By bringing these live performances to audiences, we helped benchmark creators like [Alan?]

achieve creative breakthroughs and gain recognition. Third, online marketing services.

In Q3, revenue from our online marketing services reached 20.1 billion RMB, up 14% year-over-year, with the growth rate accelerating quarter-over-quarter. We continuously iterated and upgraded our online marketing placement products with AI models.

Drawing on our unique traffic dynamics, we catered to the needs of more marketing customers through our smart placement capabilities, achieving more precise targeting and higher conversion rates. This drove strong year-over-year growth in both external and closed-loop marketing services revenue.

In Q3, our UAX solutions accounted for over 70% of external marketing spending. Ongoing innovations and iterations, particularly with our generative reinforcement learning-based bidding model and generative recommendation large model, further improved marketing recommendation efficiency and enhanced management of marketing variety and value.

The combination of our three key AIGC commercialization tools—AIGC short video, digital human, and digital employee—has empowered our customers with an end-to-end AI solution covering marketing material creation, live streaming operations, and user engagement. In Q3, for closed-loop e-commerce marketing services, we upgraded the product and content optimization capabilities of our omni-domain platform marketing solutions to maintain a steady supply of premium marketing materials.

By integrating multi-content reinvestment and ROI bidding recommendation tools, we helped e-commerce merchants improve traffic and sales conversions, thereby enhancing their willingness to invest in marketing placements. In Q3, total marketing spending from omni platform marketing solution accounted for over 65% of closed-loop marketing spending.

Additionally, we established a bidding agent based on AI capability to replace manual adjustment decisions, enabling more consistent conversions and unlocking greater economies of scale. On the traffic side, by enhancing the synergies between e-commerce and commercial value, we released more traffic capacity to merchants with long-term operations, helping more brand e-commerce merchants achieve a scaled expansion and stable conversion improvements.

From a scenario perspective, in Q3, closed-loop e-commerce marketing services in pan-shelf-based scenarios also realized solid growth. We optimized the people-to-goods matching in pan-shelf search, and we used large models to better meet users' needs and improve efficiency.

These efforts increased marketing placement penetration and drove stronger merchant acquisition and distribution. In Q3, for the lifestyle service sector, where clients mainly operate on a lead-based model, we upgraded our private messaging product and optimized vertical-oriented products.

These improvements helped clients reach users more efficiently and achieve higher user conversion rates across various conversion goals. In lifestyle services, particularly among our small and medium-sized customers, we improved private messenger response rates with AI-powered customer service.

In Q3, we combined our local services with lead-based marketing business to form our lifestyle service segment, integrating teams, product lines, and traffic distribution. This unification strengthens our ability to support merchants pursuing sustainable operations and help build a more diversified collaborative ecosystem with local merchants.

The content consumption sector, led by short plays, was another key revenue driver for our external marketing services in Q3. We continued to enhance content supply and product innovation across short plays, mini games, and novels, while capturing incremental growth opportunities from the rapid rise of comic-style short plays, further expanding external marketing services revenue.

Comic-style short plays combine features of comics, short plays, and audio dramas, typically featuring vertical screen episodes 1 to 3 minutes long. This new genre has recently gained widespread traction among the broader market.

Kling AI has significantly lowered the barrier to creating comic-style short plays while elevating overall content quality. In addition, through a mix of marketing placement, revenue sharing, IAA, and IAP models, we created multiple monetization pathways for high-quality short play content, expanding reach on both the supply and demand side.

Fourth, our e-commerce business. In Q3, our e-commerce GMV grew 15.2% year-over-year to 385 billion RMB.

Through a mix of merchant incentive programs, omni-domain traffic support, and intelligent tool empowerment, we helped merchants build omni-domain operations ecosystems, continuously elevating user experience and driving high-quality supply and demand growth. To support merchants' sustainable growth, we encourage them to adopt an efficient conversion path that integrates public and private domains, using public domains to acquire customers and private domains to strengthen retention.

In Q3, the mix of our e-commerce monthly average paying users showed a healthy trend. Active e-commerce users' repeat purchase frequency increased year-over-year, and users' stickiness continued to improve.

In Q3, in e-commerce supply, building on our platform's traffic and content-based e-commerce advantages, we continued to attract new merchants organically and onboard merchants through diverse channels. We introduced a range of incentives to lower onboarding costs and entry barriers for new merchants.

In addition, we continued to launch initiatives to empower new merchants to navigate early growth stages and ramp up operations more efficiently. Driven by a growing number of small and medium-sized merchants, together with our targeted support for high-quality existing merchants, our average monthly active merchant base continued to grow.

We also broadened the range of products, the number of level-3 product categories per store among our average monthly active merchants increasing by nearly 30% year-over-year. To empower merchants and KOLs, in Q3, we launched a series of initiatives to unlock greater value creation within their private domains.

Supporting their ability to build a dual growth engine of exceptional content and superior products, we launched the pop-up follower rewards product to accelerate follower growth and empower merchants and KOLs. From traffic generation to follower conversion and ultimately to sales, with a stronger control over merchandise selection and supply, we expanded our product portfolio of high-quality platform-endorsed offerings.

We focused on the premium brands through our KOL blockbuster initiative, leveraging the traffic pull of hit products to spotlight dedicated live streaming sessions for category brands. Supported by improved KOL product matching, KOL targeted vertical outreach, and platform incentives, we expanded KOL engagement, enhanced brand performance, and empowered KOLs to address product selection and assortment expansion challenges.

In Q3, the average daily number of active merchandise items increased by over 30% year-over-year. We provided guaranteed resources, such as traffic support and product supply, to onboard small and medium-sized KOLs and establish long-term growth mechanisms.

These efforts strengthened the KOL content ecosystem in Q3, driving a 14.8% year-over-year increase in the number of average daily active streamers hosting live sessions with over 10,000 followers. In Q3, in terms of operating across diverse scenarios, pan-shelf e-commerce GMV continued to outpace overall GMV growth, contributing over 32% of total e-commerce GMV.

We continued to enhance our infrastructure and supply ecosystem, driving a 13% year-over-year increase in average daily active merchants for pan-shelf-based e-commerce. We built on the diverse engagement features and strategy tools from Q2, including Super Links, the official channel for platform recommended products.

These tools helped merchants quickly boost product exposure and sales conversion, captivating user mindshare for our shopping mall. The marketing hosted tool we introduced for merchants in content-based scenarios effectively lowered their operational barriers and drove steady quarter-over-quarter growth in merchant adoption.

In Q3, we maximized the synergies between short videos and live streaming. We helped merchants integrate traffic from content-based scenarios through a seamless loop, from product recommendations via short videos to rapid conversion in live streaming rooms, and back to user re-engagement via short videos.

This strategy steadily expanded merchants' customer base. Supported by more short videos with embedded shopping links and our customized funnels, short video e-commerce GMV maintained a healthy growth.

In Q3, in terms of integrating AI into our e-commerce business, we focused on empowering merchants across our e-commerce business chain in three core areas: AIGC content production, merchant efficiency improvement, and product matching efficiency optimization. Our AIGC capabilities for generating and optimizing materials continue to deliver strong results, helping merchants improve conversion efficiency across both image and video formats in diverse scenarios.

Penetration of smart live streaming highlights and AI live stream scenarios also steadily increased. Concurrently, our AI product management assistant is providing comprehensive omni scenario support.

It helps merchants reduce costs, increase efficiency, and strengthen their operational capabilities, while also generating high-quality data. On the matching front, our explainable recommendations powered by our e-commerce knowledge graph predict users' potential long-term interests.

This boosts conversion rates and also strengthens user trust and stickiness with our recommendations. We believe these AI capabilities will ultimately power a growth flywheel of data infrastructure, precise matching, and merchant efficiency empowerment, driving the healthy and sustainable development of our e-commerce ecosystem.

Next, regarding our live streaming business. Q3 live streaming revenue grew by 2.5% year-over-year to 9.6 billion RMB.

Growth was driven by high-quality content, expanding live streaming scenarios, and AI-powered product innovations. For live streaming supply, the healthy development of our talent agency ecosystem provided robust support pillars.

By end of Q3, our partner talent agencies had increased by more than 17%, and talent agency-managed streamers grew by over 20%, both year-over-year. We focused on categories such as group live streamings by supporting premium benchmark groups, guiding content optimizations to achieve high-quality development and steady revenue growth.

Innovative AIGC applications also injected momentum into our business growth. Leveraging Kling AI capabilities, in late September, we rolled out the AI Universe gift series with customizable special effects platform-wide, effectively diversifying options for personalized interactions in live streaming rooms.

On launch day alone, users paid to create and send over 100,000 personalized virtual gifts. In Q3, for entertainment live streaming operations, we launched the Super Grand Stage 2.0, organized as five regional contests nationwide to further integrate online live streaming and offline scenarios.

Targeting the summer season and demand from young users, we hosted the Summer Gaming Music Festival in Chengdu, an offline gala event that blended gaming, music, and interactive experiences, deepening our partnerships with game developers. The event attracted 672 million live stream views and over 50,000 participants on site.

Moreover, our Live Streaming Plus strategy continued to empower traditional industries, further validating its commercial value. In Q3, average daily number of users submitting resumes on Kwai Hire increased by over 20% year-over-year.

In Ideal Housing, average monthly number of paying clients increased by over 90% year-over-year. Finally, our overseas business.

In Q3, we continued to strengthen our foothold in overseas markets, focusing on high-quality growth. On the traffic front, we optimized customer acquisition efficiency to precisely reach high-value demographics.

By prioritizing operations for core category creators, we fostered stronger connections between our high-quality characteristic content and a core user base. In Brazil, our core international market maintained stable MAUs while reducing user acquisition costs year-over-year, delivering consistent year-over-year growth in average daily time spent per DAU.

For online marketing services, we bolstered business resilience and diversified our marketing client base across industries through updated product capabilities and placement strategies. We improved overall conversion efficiency across our marketing funnel, unlocking more monetization potential for diverse user groups and earning sustained client recommendations.

Concurrently, our e-commerce business in Brazil improved both capacity and operating efficiency. While maintaining disciplined ROI management, we achieved healthy year-over-year growth in GMV transaction scale and order volume in Q3.

Looking ahead to Q4 and into 2026, we will continue investing in our AI strategy, exploring efficient paths that empower users, video creators, marketing clients, and e-commerce merchants through Kling AI and other large AI model technology. At the same time, guided by our development philosophy and AI strategy, we will comprehensively transform and upgrade our organizational structure, talent deployment, and product design and features.

We will persistently uphold and accentuate Kuaishou's technology innovation ethos, maintaining and deepening our long-term competitive advantages in the era of AI. That concludes my prepared remarks.

Next, our CFO, Bing, will review the company's financial update for Q3 2025.

Thank you, Yixiao, and hello, everyone. In Q3, we continued to strengthen our core advantages.

Leveraging our large AI model capabilities, we further empowered our content and business ecosystems. With our rich content supply and optimized omni-domain operations ecosystem, we continuously enhanced the experience for users and creators while helping merchants and KOLs improve their operational capabilities and support sustainable growth.

During the quarter, we achieved solid operational and financial results, with total revenue increasing 14.2% year-over-year to 35.6 billion RMB. This included a 19.2% year-over-year increase in revenue from our core commercial business, which includes our online marketing services and other services, primarily e-commerce.

With our steady revenue growth and improved operating efficiency, we improved our overall profitability. Operating profit increased 69.9% year-over-year to 5.3 billion RMB.

Adjusted net profit grew 26.3% year-over-year to 5 billion RMB, with a healthy adjusted net margin of 14.0%. Now let's take a closer look.

Our total revenue grew 14.2% year-over-year to 35.6 billion RMB in Q3. The increase was mainly driven by growth across each of our business, including online marketing services, live streaming, e-commerce, and Kling AI.

In Q3, online marketing services revenue increased 14% to 20.1 billion RMB from 17.6 billion in the same period of last year. The growth was primarily attributable to the use of AI technology to continuously upgrade online marketing product solutions that improved conversion efficiency, which drove higher client spending from our marketing clients.

Revenue from other services, including e-commerce and Kling AI businesses, reached 5.9 billion in Q3, up 41.3% from 4.2 billion RMB in the same period of last year. The increase was mainly driven by growth in e-commerce GMV, which boosted e-commerce commission income, as well as the expansion of our Kling AI business.

We have continuously refined Kling AI's foundation models, developing more innovative features. Its application coverage has expanded, driving further breakthroughs in commercialization.

In Q3, our live streaming revenue was 9.6 billion RMB, up 2.5% from 9.3 billion in the same period of last year. We consistently cultivated high-quality content, expanded live streaming scenarios, and leveraged AI-powered product innovations to build a diverse and healthy live streaming ecosystem.

These steps drove greater user engagement with high-quality live streaming content. Cost of revenues increased 13.4% year-over-year in Q3 to 16.1 billion RMB, accounting for 45.3% of total revenue.

The increase was mainly due to increased revenue sharing costs and related taxes in line with our revenue growth, partially offset by decreases in depreciation of property and equipment and right-of-use assets and amortization of intangible assets. In Q3, our gross profit grew 14.9% year-over-year to 19.4 billion RMB.

Gross profit margin was 54.7%, up 0.4 percentage points year-over-year. Moving to expenses, selling and marketing expenses were 10.4 billion RMB, roughly flat year-over-year, and accounted for 29.3% of total revenue, down from 33.3% in Q3 last year, reflecting our refined efforts in improved operating efficiency.

R&D expenses were 3.7 billion RMB, up 17.7% year-over-year, accounting for 10.3% of total revenue. The increase was mainly due to higher employee benefit expenses, including share-based compensation expenses, and increased investments in AI.

Administrative expenses decreased 13.6% year-over-year to 688 million, or 1.9% of total revenue, mainly due to lower employee benefit expenses, including share-based compensation expenses. Group-level operating profit for Q3 increased 69.9% year-over-year to 5.3 billion RMB.

Net profit for Q3 was 4.5 billion RMB. Adjusted net profit rose 26.3% year-over-year to 5 billion, with an adjusted net margin of 14.0%.

Our balance sheet is quite robust, with cash and cash equivalents, time deposits, restricted cash, and wealth management products totaling 106.6 billion RMB as of September 30th, 2025. We generated positive operating net cash flow of 7.7 billion in Q3.

Additionally, we actively deliver on our commitment to shareholder returns based on market conditions. As of September 30th, we had repurchased an aggregate of approximately 2.17 billion Hong Kong dollars, or around 42.25 million shares, which accounted for about 0.98% of our total shares outstanding for 2025.

In addition, we declared a special dividend of 2 billion Hong Kong dollars in Q3, reflecting our confidence in Kuaishou's long-term growth prospects and a solid financial position. Looking ahead, we'll continue to prioritize user needs and execute our AI strategy to empower all of our business areas while exploring more diversified growth avenues.

These initiatives will reinforce our competitive edge in an ever-changing market and enable us to create long-term value for our users, partners, and shareholders. That concludes our prepared remarks.

Now let's move into the Q&A session. 提醒一下，如果您需要提问，请按星号键，再按1字键。如果您需要撤回您的问题，请按井号键。请先用中文提出您的问题，再将您的问题翻译成英文。We will now begin the question-and-answer session.

If you'd like to ask a question, please press star 1 and wait for your name to be announced. 第一道问题有来自UBS的Felix Liu。The first question comes from Felix Liu of UBS.

Please go ahead. 请提问。

谢谢管理层接受我的提问，也恭喜我们三季度非常强劲的业绩。我的问题是关于可灵AI。市场对于视频生成AI行业的竞争格局非常关注，可灵AI的竞争策略以及下一代下一步迭代的方向是什么？Sora 2出来之后呢，我们会怎么样看视频AI生成的发展方向，以及后续to C端的机会？Thank you, management, for taking my question, and congratulations on the very strong third quarter results. My question is on Kling AI.

The market is very focused on the competitive landscape of video GenAI. Could management share more color on Kling's competition strategy from here, and where do you plan to develop and drive evolution in Kling from here?

After the launch of Sora 2, how do we see the development of the overall video GenAI industry, and do you anticipate more opportunities on the to-C side of video GenAI? Thank you.

谢谢你的问题。目前呢，我们看到视频生成赛道出现了很有多参与者，包括其他互联网大厂和一些初创公司。这也说明视频生成是一个非常好的、有潜力的赛道。但同时呢，我们也认为视频生成在产品和技术层面都远没有达到成熟的地步。众多的参与者的出现呢，也会将视频生成的行业进步速度提速，更好的满足用户的需求，渗透更多的应用场景，共同把行业的蛋糕做大。

Thank you for your question. The surge of entrants from tech giants to startups reflects just how attractive and promising the video generation market is.

That said, we believe video generation is still far from maturity in both product and technology. With growing number of market participants, we expect accelerated innovation across the industry, meeting more user needs, penetrating a wider range of use cases, and pushing the market to expand even more.

谢谢管理层接受我的提问啊，那也恭喜公司取得良好的业绩。我是想问关于整个AI的一个赋能。除了这个可灵AI和刚才其实就是一效总也重点提到的这个OneRec在线上营销业务这边的赋能以外，可不可以再跟我们说一说在AI大模型在内容生态和这个一些内部的这个降本增效方面，目前还取得哪些的一些进展？Thank you, management, for taking my question, and congrats on the very solid results. My question is about the AI-empowered business.

On top of Kling AI and the OneRec system we've been talking about for online marketing services, could management elaborate more on AI large language model to empower our Kuaishou content ecosystem, and how to improve our operational efficiency front? Thank you.

谢谢你的问题。2025年被广泛视为AI走向深度应用的关键元年。在这一年里，以多模态生成、Agent为代表的AI技术不断探索更高效、也更贴合用户需求的应用形态，AI技术正在走向产业级价值的系统性兑现。我们也在这样的大背景下，逐步构建起一套以用户需求为核心、立足现有业务场景、加速AI落地的完整技术与应用体系，赋能内容生态、商业生态和内部组织基建。

Thank you for your question. 2025 is widely regarded as AI's first year advancing into deep applications.

Throughout the year, AI technologies, represented by multimodal generation and AI agents, have consistently moved toward richer and more efficient applications that are more aligned with the user needs. This marks a systematic step toward unlocking AI's industrial-scale value.

Against this backdrop, we have progressively developed a comprehensive AI technology and application system centered on user needs and rooted in our existing business scenarios. It is designed to accelerate AI adoption to empower our content and business ecosystems as well as our organizational infrastructure.

在生态赋能方面，AI技术已经全面渗透快手的各个业务场景，包括内容与用户理解、内容生成和内容推荐等。在内容与用户兴趣理解方面，我们自主研发的多模态大语言模型，展现出较强的视频理解能力。居于该模型，我们驱动了短视频与直播内容理解体系的系统化升级，推出了下一代标签体系TagNext，实现更精准、更全面的内容理解，目前已在内容冷启动、内容多样性建设、兴趣探索等多个核心应用场景，带来了人均VV使用时长的提升。在内容生成上，可灵赋能大众创作者，我们也看到站内AIGC短视频内容VV量提升非常明显。在最核心的内容推荐方面，本季度通过继续升级端到端生成式推荐大模型OneRec，进一步突破生成式推荐系统的边界，推出下一代OneRec-Think大模型，引入LLM的推理能力，通过将对话推理、个性化推荐与实时反馈机制集成到一个模型中，进一步增强推荐准确性和用户信任度。 In terms of empowering our content ecosystem, AI has now been fully integrated across Kuaishou's business operations, from content and user understanding to content generation and recommendations.

First, in understanding content and users, our proprietary multimodal large language model, Kwai-Ke, has demonstrated strong video comprehension capabilities. Based on this model, we upgraded our short video and live streaming content understanding system and launched TagNext, our next-generation tagging system, which enables more accurate and comprehensive content understanding.

TagNext is now being applied across key scenarios, including early-stage content management, content diversity expansion, and new interest discovery, driving higher average app usage time per user. Second, in content generation, Kling AI continues to empower mass creators.

We have witnessed a significant increase in the video views volume of AIGC short video content on the platform. Third, in content recommendation, the most important area, we further expanded the boundaries of generative recommendation systems by upgrading our end-to-end generative recommendation large model, OneRec.

We launched the next-generation OneRec-Think large model, integrating LLM inference capabilities and combining conversational inference, personalized recommendations, and real-time feedback mechanisms into one single model system. This further enhances recommendation accuracy and strengthens user trust.

更有赋能AI技术也在内部组织基建和提效方面发挥着重要作用。我们自主研发的AI编程产品CodeFlicker已经成为快手工程师日常高频使用的智能开发工具，形成智能单测生成、智能代码评审、智能测试用例生成等多个应用场景的支撑。目前快手新增代码中，由CodeFlicker生成的比例也近接近了30%。在内容审核方面，我们已将AI大模型应用于用户画像、内容识别、评论识别等多个场景，借助思维链和强化学习技术，提高审核大模型能力。目前平台内容通过AI初审率超过了99%，大幅节约相关成本的同时，也提升了审核效率和质量。此外，我们的客服团队也借助AI技术，实现了用户咨询前置分流、智能辅助和知识沉淀等高效赋能。目前超过70%的用户咨询量直接由AI智能客服完成响应并解决。 Beyond business empowerment, AI technology has played a major role in improving the efficiency of our organizational infrastructure.

Our proprietary AI coding tool, CodeFlicker, has become a core intelligent development tool used daily by our engineers at a high frequency. It supports scenarios such as automated unit testing generation, intelligent code review, and smart testing cases generation.

Currently, nearly 30% of new code at Kuaishou is generated using CodeFlicker. In terms of content review, we have applied large AI models across diverse scenarios, including user profiling, content identification, and comment analysis.

By leveraging COT reasoning and reinforcement learning technologies, we have enhanced our review models' capabilities. Currently, over 99% of the content on our platform is reviewed by AI, greatly reducing related costs while improving the efficiency and quality of content review.

In addition, our customer service team is leveraging AI technology to pre-screen and route user inquiries, provide intelligent assistants, and accumulate knowledge. As a result, over 70% of user inquiries are now directly handled and resolved by our AI-powered customer service system, significantly improving efficiency.

总的，我们看到从AI技术创新到应用落地，再到营收增长的良性循环正在快手内部形成。而从长期来看，我们相信这种全方位的AI应用型生态，能够使快手具备更强的市场适应性和增长潜力。 Overall, a resilient, self-reinforcing cycle of AI innovation, AI application, monetization, and revenue growth is taking shape at Kuaishou.

晚上好，谢谢管理层接受我的提问。我的问题是关于线上营销方面的。本季度我们看到我们线上营销收入增长进一步提速，我们能否从流量、行业、还有产品等角度详细拆解一下我们具体做了什么？Hi, good evening. Thanks management for taking my question.

My question is about online marketing services. We have seen our online marketing revenue accelerating this quarter.

Can management provide more details on what we have done from the perspective of traffic, industry sectors, as well as product offering? Thank you.

谢谢你的问题。本季度呢，线上营销服务收入同比增长14%，较二季度增速进一步提升，特别是国内线上营销服务收入实现了超过了16%的增长。从流量驱动因素看，营销素材曝光量和CPM双轮驱动广告收入。营销素材曝光量的提升，一方面与大盘整体流量增长相关；另一方面，更多高质量的原生营销内容有助于提升Ad Load。CPM的提高，得益于我们借助生成式强化学习出价和端到端生成式推荐等AI技术，实现用户兴趣与营销客户诉求的双向匹配，提升了线上营销素材推荐的个性化和匹配效率。 Thank you for your question.

In Q3, online marketing services revenue grew by 14% year-over-year, accelerating from the previous quarter, with domestic online marketing services revenue increasing by over 16%. From the traffic perspective, advertising revenue was driven by both increased marketing material impressions and higher CPM.

The growth in impressions was supported by overall traffic growth and by more high-quality native marketing content, which helped increase ad load. The rise in CPM was driven by our use of AI technology, such as generative reinforcement learning bidding and end-to-end generative recommendation models, which improved the matching between user interest and advertiser needs, enhancing the personalization and matching efficiency of online marketing material recommendations.

从外循环的行业表现看，以经营线索为主要目标的生活服务行业与短剧小游戏为代表的内容消费行业是本季度增速较为亮眼的行业。我们在生活服务行业升级了私信产品，且在细分垂直优化后续转化链路，帮助客户更高效的触达用户，提升用户转化。同时生活服务行业客户以中小客户为主，更加受益于AI客服、UAX全自动投放、AIGC营销素材生成工具等产品。在内容消费行业，短剧继续保持较高的增速，同时随着AI技术的深度赋能，漫剧迎来了高速的发展。我们抓住这一机遇，并通可灵AI深度参与漫剧的上游内容制作。 Looking ahead at external marketing services industry-wise, lifestyle services, where clients mainly rely on lead-based operations, and content consumption, represented by short plays and mini games, were the standout sectors this quarter.

In lifestyle services, we upgraded our private messaging product and optimized the subsequent conversion paths across industry verticals, helping clients reach users more efficiently and improve sales conversions.

Thank you.

Thank you. Our last question, please, Operator.

management for taking my question. My question is regarding CapEx and profit margins.

With the progress of Kling and other AI-driven initiatives, does the company have any updated guidance on CapEx and AI-related spending plans? Has the full year 2025 profit margin target been adjusted?

Given that the entire the industry is significantly increasing CapEx, how is Kuaishou planning the CapEx over the next 1 to 2 years, and what impact will AI investments have on profit margins? Thank you.

谢谢你的问题。正如一笑总所说，我们本季度在探索AI技术与内外赋应用场景的结合上面取得了不错��非常不错的进展。AI在给业务赋能的同时，也在内部组织基建上实现了质效提升。AI技术对快手内容和商业生态的价值正在逐步释放。同时，可灵在商业化营收上也断取得突破。我们预计可灵2025年全年收入将达到1.4亿美金，比今年年初的目标6,000万美金提升超过100%以上。鉴于可灵用户对视频生成模型日益加大的需求，我们也多次追加可灵在算力方面的投入。除了在推理算力方面的追加投入，近期随着模型的不断升级迭代，我们也开始追加可灵的训练算力，以保持可灵的技术先进性。叠加其他AI业务赋能带来的CapEx投入，我们预计2025年集团整体CapEx支出较去年实现中高双位数的同比增长。在费用端，我们近期也在AI技术人才吸引和保留上增加了一定投入，但这部分费用相对可控。虽然我们增加了以上AI战略相关的投入，但我们依旧有充分信心实现今年经调整净利经营利润率的同比提升。整体盈利能力的提升，也进一步说明AI技术对快手内容生态和商业生态的赋能价值正在逐步释放。 Thanks for your question.

As Yixiao said, this quarter, we achieved strong results by integrating AI technology across a wide range of internal and external application scenarios. AI empowered our business operations and improved the quality and efficiency of our organizational infrastructure.

AI technology continues to unlock increasing value across our content and business ecosystems. At the same time, Kling AI made more solid breakthroughs in commercialization.

We now expect Kling AI's full year 2025 revenue to reach 140 million US dollars, more than double the target we set at the beginning of the year of 60 million US dollars. Given Kling AI's users' growing demand for video generation models, we have continued to ramp up our investment in computing power for Kling AI.

Beyond the incremental investment in inference capacity, alongside continuous model iterations, we have recently started scaling up Kling AI's training computer power to keep Kling AI at the forefront of technology advancement. Including this and CapEx from other AI initiatives, we expect the group's total 2025 CapEx to increase in the mid to high double digits year-over-year.

Regarding expenses, we have recently stepped up our investments in hiring and retaining AI talent. This portion of expenses remains relatively manageable, and despite higher AI-related investments, we're confident that our full year adjusted operating margin will continue to improve year-over-year.

Our overall improvement in profitability further underscores that AI continues to unlock increasing value across Kuaishou's content and business ecosystems. 总之，得益于可灵及AI技术赋能的超预期进展，我们相对明确未来资本性开支增长规划，重点聚焦算力升级与技术深化。这一布局并非单纯的成本费用增加，而是基于AI技术跃升驱动价值放大的逻辑。随着AI应用场景的持续拓展，AI的价值潜力还将进一步释放。我们有信心在未来两年继续实现盈利规模的进一步提升和盈利能力的稳中有升。我们也将适当的时候跟大家进一步披露相关进展。

In summary, thanks to the better-than-expected progress in Kling AI and the integration of AI technology into our businesses, we have a clear CapEx growth plan with a focus on upgrading computing power and deepening technology. This goes beyond a simple rise in costs and expenses.

It is rooted in our strategy of leveraging leaps in AI to drive greater value. As AI applications continue to expand across scenarios, their potential value will be increasingly unlocked.

We're confident that we can continue to steadily grow our profits, improving profitability over the next two years, and we look forward to sharing our progress along the way. Thank you.

Thank you, Operator. That's the end of Q&A session.

今天的问答环节到此结束，现在有请Matthew做总结性发言。 Thank you, Operator.

感谢大家今天的参与。如果您还有更多问题，欢迎随时与快手的资本市场及投资者关系团队取得联系。谢谢大家。