Thank you, operator. Hello, everyone, and thank you for joining iQIYI's second quarter 2026 earnings conference call.

The company's results were released earlier today and are available on the company's investor relations website at ir.iqiyi.com. On the call today are Mr.

Yu Gong, our Founder, Director, and CEO; Mr. Ying Tian, our CFO; Mr.

Xiaohui Wang, our CCO, Chief Content Officer; Mr. Youchao Duan, Senior Vice President of our Membership Business; Mr.

Xianghua Yang, Senior Vice President of International and Online Game Business; and Mr. Gang Wu, Senior Vice President of Brand Advertising Business.

Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Ying, who will go through the financials.

After the prepared remarks, the management team will participate in the Q&A session. Before we proceed, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S.

Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. iQIYI does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

I will now pass on to Mr. Gong.

Please go ahead.

Hello, everyone. In the second quarter, we continued to reinforce our core business.

High quality diversified content power industry-leading performance. According to Enlightent data, we maintained the number one market share in each of the long-form drama, film, and children's content categories.

For short-form dramas, Zhongju, we made a major breakthrough, reaching number one market share for the first time in June. Financial performance also improved quarter-over-quarter.

Total revenue grew sequentially, and our non-GAAP operating loss narrowed substantially, approaching break-even. We are fully advancing our strategic transformation.

First, we are shifting from a centralized media toward a decentralized creator- and user-centric social media ecosystem. AI can dramatically lower the cost and barrier to content creation, turning what was once a niche professional activity into a mass capability and triggering an unparalleled surge in content supply.

Because traditional centralized models cannot accommodate this scale and diversity, we are upgrading our content acquisition and distribution mechanism to efficiently connect creators and audiences. Second, we are taking an all-in approach on AI to revolutionize both live-action production and pure AIGC.

Our guiding principle is clear: maximizing cost efficiency without compromising quality. Together, these two pillars reinforce each other like a flywheel.

AI drives rapid growth in content supply, which helps us move faster toward a decentralized model. As we decentralize, more creators can participate, users get more engaged, and our platform becomes even stronger.

In Q2, our strategy moved from plans to measurable results. Over time, they will structurally improve our content cost, revenue quality, profitability, and cash flow.

Let me walk you through the progress. On decentralization, we are improving our platform and accelerating the creator ecosystem.

In April, we refreshed our core creator hub, the IQID, iQIYI Creator Center. Early signs are promising.

The number of creators and uploads are all trending higher. Content with short production cycles, lower production scale, and good fit for AI-driven creation has seen especially strong growth.

For various types of content, the daily average number of uploaded works in the second quarter increased by 30% to 500% compared to the first quarter. In June, daily views for micro-dramas and micro-animations were up by double digits compared with March.

Short-form dramas and animations are also gaining traction. Looking ahead, more long-form video categories will join the decentralized content ecosystem as we preserve iQIYI's premium content advantage.

We will broaden our content slate by adopting lighter, more flexible content acquisition models. On content production, AI is substantially optimizing production efficiency and cost structure.

First, in live-action, AI is streamlining the whole post-production workflow. For example, we leveraged AI in our variety show Her Prime Season 2, Jie De Dang Jia, to achieve a tenfold leap in rough cut efficiency compared to traditional methods.

Second, for content types well-suited to AIGC, AIGC production can reduce production costs and timelines by 70% to 90% compared with traditional methods while pushing past the physical limits of live-action shooting. Naturally, AI adoption is faster in Android CG-heavy formats.

We have launched multiple AI-generated internet feature films. A major milestone was the July 1 premiere of Mystic Tale, Qitan, the industry's first AIGC internet feature film to launch with an internet drama and film distribution license.

This marks the official shift of long-form AIGC from technical testing to standardized large-scale production. In addition, year-to-date, we have launched 16 AI-generated short-form dramas under a revenue sharing model, with Trial Handmaiden as the top-performing title.

In the second half of the year, we have launched a diversified slate of AIGC titles, including multiple iQIYI-invested films, with an even broader pipeline across expanded categories next year. Currently, we have multiple AI-generated short-form dramas in development.

NadoPro is our studio-grade production platform for creators. It runs on optimized third-party and in-house models plus iQIYI's long-standing expertise in professional content.

By replacing costly steps with lower compute and tool costs, it lowers barriers and speeds up professional content production. Our strategy is clear: internally, NadoPro caps development and production costs; externally, NadoPro explores new revenue streams and gradually converts our professional production capabilities into incremental revenue.

NadoPro's edge isn't generating AI output. It chains the key parts of long-form production: scriptwriting, shot design, workflows, digital asset editing, and dubbing into platform features.

It delivers an end-to-end workflow, connects talent with content assets, and makes progress repeatable and reusable. NadoPro is evolving from a tool into a comprehensive creator ecosystem.

It links content demand with creators and enables them to realize commercial returns through flexible business models. This activates a flywheel: commercial returns encourage more content supply, expanded supply fortifies the ecosystem, a stronger ecosystem scales both creators and works, powering a creation platform for iQIYI's decentralized content ecosystem.

We believe these advances will improve content production efficiency, lower unit costs, and increase both users and revenue. As we roll them out across all operations and scale, we expect their contributions to profit and cash flow to steadily materialize.

Now, let's move on to the detailed performance in Q2. Let's start with content.

Our premium content is well-recognized by users and the industry. At the Magnolia Awards this June, one of China's top TV honors, Bai Yulan Jiang, iQIYI titles and their creative teams won 14 of 23 awards, including 10 of 11 in the drama category, well ahead of peers.

In Q2, our content performed well across formats. In long-form dramas, we continue to focus on female-centric stories, with Her, Jia Yi, ranking among this year's top two titles by ad revenue.

We also reinforced our lead in suspense through genre innovation. The suspense comedy Born with Luck, Biezhe Shang Fansi, surpassed the 10,000 iQIYI popularity score and drove strong membership sign-ups.

While in Subtle, Suo Ye Jiang Shi, from our iQIYI Suspense Theater earned strong reviews. Our original title Archives: The Nanyang Mystery, Nan Bu Da An, exceeded a 9,300 popularity index score, and the non-exclusive The Epoch of Mi, Mi Yu Ji, topped 8,500.

In please supported short-form dramas, typically 15 to 25 minutes per episode with flexible episode counts, we delivered exciting early results. Per Enlightent data, our market share doubled from 25% in March to 50% in June, taking number one for the first time.

The strong performance was supported by our original The Fireman, Hens, Anniversary, Yin Hun Bai Du Shi Nian, which reached a peak daily market share of about 60%. Short-form titles can offer structural advantages over long-form dramas, potentially reducing average per-minute costs by over 50% and shortening production-to-approval timelines by 30% to 50%.

In micro-dramas, we released premium live-action titles like All About Secrets, Ke Ren Li, Falling for You, and Phoenix Blade, all resonated well with audiences. AIGC scales quickly under a revenue-sharing model, accounting for over 50% of all micro-portfolio and unique visitors in June, while AI-native micro-animations expanded with strong sequential growth in views and time spent.

In films, we maintained a diversified slate for different audiences. Originals like The Counterfeit, Wei Chao Da An, The Sin Train, Zui E, received positive feedback, while licensed theatrical hits Pegasus 3, Feichi Rensheng, Blades of the Guardians, Biaoren, Zootopia 2, were also well received on our platform.

In variety shows, we launched seven originals in Q2, with our flagship franchises delivering sustained value. Fire House, Wu Ha, crossed a popularity index score of 9,000, reaching a new franchise high.

Four 10 years evergreen IP, The Rap of China 2026 also stood out, surpassing a popularity index score of 8,800. In animation, we further solidified our original offers.

The long-running Against the Gods, Ni Tian Xie Shen, with premiere in April, topped all animation popularity index chart and brought notable of platform users back to iQIYI. Together with The Great Ruler, Da Zhu Zai, we now have two long-running titles to keep users engaged year-round.

Finally, in children's content, we reinforced our leadership with the return of our original IP sequel Deer Squad and the localized adaptation of the BBC classic Teletubbies. Next, let me share our pipeline for the second half of the year.

Our summer long-form drama features a diversified lineup, which includes multiple female-oriented titles like Road to Success, Can Ruo Fan Xing, Key to the Phoenix Heart, Que Ge, Overdue, Zhui Niao Guo Huo, Genius Governess, Tian Cai Nv You, Spring of the Blade, You Chun, Abyss, Shen Yuan Wu Jian, and In My Prime, Sheng Feng Qi Shi, complemented by the military-themed Windblown Warriors, Bing Cong Feng Zhong Lai, and the major realistic drama Forging Justice, Song Qi. For the remainder of the year, we will premiere The Great Long March, Chang Zheng, Aconell, Hai Dao Shu Zhi Zhi, Small Town Remedy, Xiao Cheng Liang Fang, and River of No Return, Yan Jiang Shu Ri.

As for short dramas, our upcoming releases include Dead of Winter, Dong Xia De Zui E, Darkness, Zui An, The Six Group of Fatal Case, Zhuan An Liu Zu, and The Great Nobody 2, Da Wang Bie Huang Zhang. In films, our pipeline features original theatrical films including Winter and Summer, Yi Lu Chao Ping An, No Gold, The Child, Si Wang Jin Qu Shi Lu, and Probation, Wo Mei Cuo, in the second half of the year.

On the licensed front, our pipeline includes The Way to You, Xiao Shi De Ren, and The Fuels, Huo Zhe Yan, this summer, with I Know Who You Are, Ta He Ta, Dear You, Gei A Ma De Qing Shu, and Crossing, Su Dong, slated for the later half of the year. For internet feature films, which are limited to a maximum of three chapters, each at least 60 minutes long, our pipeline includes multiple AIGC titles based on the classic IP The Ferryman, Yin Hun Bai Du.

The first two chapters, Butterfly Dreams and The Dream of Illustrated Maiden, are set to launch this summer. Additionally, audiences can also enjoy a strong lineup of live-action titles, including Murder Game and Speed and Battle, Su Dian Su Jue, this summer.

Shifting to variety shows, we are deepening audience engagement with established IPs, including The Rap of China 2026, The King of Stand-up Comedy Season 3, Xi Ju Zhi Wang Dan Kou Ji, and Her Prime 2 this summer, followed by The Blooming Journey, Yi Lu Fan Hua 3, and Wonder Together 2, Yi Tong Shan Shuo Qing Chun Yi, in the second half. For animations, this year could be iQIYI's strongest animation summer to date.

The lineup features A Good Day to Ascend, Zuo Ri Fei Sheng, Raised by Demons, Pan Da Li: Yu Yu Xiong Mao, The Golden Horse, Hai Shen Dou Zhan Long, and To Be Winner, Cheng Ye Xiao He, alongside the AIGC titles The Legend of King Hongwu, Tian Zi Chuan Qi Hong Wu Da Di, and The Legend of King Jifa, Tian Zi Chuan Qi Ji Fa, Ji Fa Pian. For children's content, our summer slate features a new season of the popular Pleasant Goat and Big Big Wolf, Xi Yang Yang Yu Hui Tai Lang, as well as original AIGC animations like Lullaby.

Looking ahead to the second half of the year, we will roll out the original AIGC animation Wu Sheng Armor and Carbon and Phosphorus Truck: A Tasty Travel, Xiao Chu Mao Can Che Zhi Lu. Now, turning to membership business.

Revenue declined sequentially due to seasonality. We are stressing the business with more refined operations.

For example, targeted discounts for students and teachers drove a year-over-year increase of over 60% in quarter-end subscribers within this cohort. We also continued to enhance membership value with our express packages.

In Q2, we launched express packages across 16 dramas, driving a nearly 80% annual increase in total participants. In addition, we are expanding joint membership with frequently purchased top-tier brands popular among young users to support membership growth and retention.

Next, moving on to advertising business. For brand ads, revenue from drama-targeted ads delivered double-digit year-over-year growth.

By sector, beauty, personal care, and healthcare recorded double-digit year-over-year growth. We also deepened our use of AI in ad operations and now support customized AIGC creatives.

For performance ads, revenue returned to year-over-year growth. We continued to optimize advertiser mix.

Revenue from small- and mid-sized advertisers delivered strong year-over-year growth. Sector-wise, revenue from advertisers in AI applications, instant retail, retail, and e-commerce recorded strong year-over-year growth.

We further strengthened results with AI by upgrading our proprietary large models, improving targeting precision, and driving revenue. Moving on to our business performance in regions outside of mainland China.

In Q2, this business sustained rapid growth. Membership revenue grew 40% year-over-year.

The Portuguese- and Spanish-speaking regions demonstrated robust growth. Notably, membership revenue from Brazil and Mexico surged by over 215% and 150% year-over-year, respectively.

Arabic-speaking markets also showed strong potential, with membership revenue increasing 85%. The global influence of C-drama continues to expand.

In Q2, membership revenue from C-dramas grew over 40% year-over-year. A standout hit was Fate Chose You, Jiang Hu Tian Cheng.

It topped our international platform rankings across 14 regions in its first week and stayed in the top 10 of the C-dramas chart for 10 consecutive weeks. On the local production front, we are accelerating our pace.

Our first original Indonesian drama, The Other Sister, gained strong traction. Per Google Trends, it became the number one local internet drama in Indonesia in the first half of 2026.

Micro-dramas were another major nice highlight, serving as the second-largest membership revenue contributor following long-form dramas. In Q2, membership revenue from this category grew over 300% year-over-year.

This momentum was partly fueled by stronger original production. Notably, originals rose to three of the top 10 contributors to membership revenue.

AIGC was another key driver of our overseas micro-drama expansion. In Q2, we launched AI-generated titles in multiple languages, including English, Thai, and Korean.

Our original titles delivered exceptional efficiency, recouped production costs within the same quarter, and demonstrating stable profit potential. We are scaling supply through both originals and external partnerships.

In May, we released our first original AI-generated micro-drama overseas, which quickly ranked in the top three for micro-drama revenue on our international platform. The title was produced by NadoPro, which helped us establish full-blown AIGC know-how, laying a strong foundation for scaled production.

In parallel, we are proactively forging external partnerships to connect overseas script production and tool ecosystems, including NadoPro, unlocking capacity and scaling AIGC supply. Beyond content, we are driving growth with strong memberships.

We have partnered with Vision+ in Indonesia and will launch joint membership with Viu in more markets in the second half. We are excited about the future potential of our overseas business.

With that, I will hand it over to Ying Tian, our new CFO, to walk you through the financials.

Thank you, Mr. Gong, and hello, everyone.

Let me walk you through our key financial results for Q2. Total revenues were RMB6.3 billion, up 1% sequentially.

Membership services revenue was RMB4.0 billion, down 4% sequentially, primarily due to seasonality. Online advertising revenue was RMB1.2 billion, flat sequentially.

Content distribution revenue was RMB681.5 million, up 90% sequentially, driven by the increase in content distribution revenue related to the drama series. Other revenues were RMB344.9 million, down 19% sequentially.

Moving on to cost and operating expenses: Content cost was RMB3.8 billion, up 2% sequentially. Total operating expenses were RMB1.1 billion, down 6% sequentially, reflecting disciplined marketing spending.

Non-GAAP operating loss narrowed by 80% sequentially from RMB148.6 million in Q1 to RMB30.3 million, bringing us close to break-even. Turning to cash flow, net cash provided by operating activities increased to RMB339.6 million from RMB186.4 million in Q1.

As of the end of Q2, we had cash, cash equivalents, restricted cash, and short-term investments of RMB4.1 billion. Separately, as of the quarter end, we had a loan principal of $636.6 million receivable from PAG included in prepayments and other assets on the consolidated balance sheet.

We remain focused on creating long-term shareholder value. In March 2026, we announced a share repurchase program of up to $100 million effective through September 2027.

As of June 30, we had repurchased approximately 21.6 million ADSs for aggregate cost of $24.1 million. For further details, please refer to today's earnings on our Investor Relations website.

With that, we are ready to take questions. Operator, please proceed.

AI 技术和市场快速变化的一个背景下，公司怎么看待爱奇艺未来的商业模式以及说我们的管理目标？谢谢。Thanks, management, for taking my question. I would like to ask, with AI technology and the market evolving rapidly, how does management see iQIYI's business model developing in the future, and what are the company's key strategic and operational priorities going forward?

Thank you. 好，谢谢，我来回答这个问题吧。爱奇艺是

AI 的受益者，从现在到长期都是这样的。所以我们的战略要做些调整，管理目标也比较清晰，也就是这两个要点：第一个是去中心化，变成一个非中心化的社交媒体；另外一个就是全力的投入 AI，all-in AI。然后两者相互之间的强化，共同推动创作者数量、内容数量、用户数量的增加，最终导致收入的增加，形成飞轮效应。 Thank you.

The CEO takes this question. He says we see iQIYI as the beneficiary of AI now and also in long term.

To capture this opportunity, we are making some strategic transformations for our business, mainly focused on two main pillars: decentralization, which meaning transforming from the media-centric platform to a decentralized content ecosystem, and also all-in AI. These two pillars, we believe, will mutually reinforce each other and jointly driving a flywheel effect across the number of creators, the volume of content, the user base, and potentially on revenue performance.

头部的优质内容还是核心资产、核心工作。AI 会非常显著地降低这些头部优质内容的制作成本，缩短制作周期，然后有可能实现以前非常实拍难实现的效果。 Okay.

Premium content still remains the core of our business. We believe AI will significantly lower production cost for premium content, shorten production cycle, and potentially enable production and visual effects that were previously difficult to achieve through live action.

去中心化方面，我们努力推这个就是爱奇艺号，IQID，然后现在的这个创作者数量、上传的作品数量都显著提升。目前 AI 的应用在各个核心内容品类全力的推进，已经实现了具体的一些点状突破。那可以预计在未来的项目上，这个明年将会出现更多的这个项目上线。 On decentralization, we're mostly focusing on our IQID, which is the iQIYI Creator Center.

We have seen some positive initial progress, such as the number of creators, the content upload numbers, all trending well. We're seeing AI adoption is progressing across core content categories, and with initial breakthroughs achieved.

For example, for the projects we've built in productions and also launched, and in the future, we expect a greater scale of content to be released next year. 长期看来，AI 的应用和去中心化两个战略的措施将结构性的改善内容成本、收入的质量、盈利水平还有现金流的表现。

Over the long term, we believe these two strategies, meaning the decentralization and all-in AI, these two will structurally improve our content cost, revenue quality, profitability, and cash flow.

Thank you.

Thanks.

AIGC 的一些战略规划，以及包括呢就是对各个内容品类的一些未来的一个规划。Thank you, management, for taking my question. My question is about iQIYI's overall AIGC strategy and how's our plan in terms of each content categories?

Thank you.

Thanks, Lincoln. We'll invite our Chief Content Officer, Mr.

Xiaohui, to take this question. Please go ahead.

好，谢谢。我来回答这个问题。虽然

AI 降低了基础的制作和资金的门槛，但是我们认为它并没有降低内容创意和判断的这个门槛。我们用 AI 来优化内容制作的经济模型，同时强化公司的核心壁垒，包括内容的叙事和审美判断、情感表达和镜头语言，还是力争在精品和规模化供给两个端同步来提升。在策略上呢，我们还是要坚持核心长视频优先，兼顾短剧和慢剧，同时呢也通过分账合作的这个模式呢来提升资金的周转效率。 We believe AI reduces the basic costs and barriers to production, but it doesn't lower the bar for creativity and judgment.

We leverage AI to optimize the economics of content production, while reinforcing our core moat, which is storytelling and aesthetic judgment, emotional expression, and also visual language. Our goal is to advance on both fronts: premium content quality and scaled content supply.

Strategically, we will prioritize core long-form video, while accommodating micro-drama and micro-animations, and we use a revenue-sharing model to improve capital turnover. 从 AI 的规模化的渗透速度来看，我下面谈一下呢就是我们按照各个品类的分层规划的一个策略。首先是短剧，我们是快速渗透的一个策略，AIGC 为主要供给，同时呢也采用了分账为主、算法推荐，形成多元、快速更新的规模化供给。

I will share our thoughts by category based on the pace of AI adoption at scale. For micro-dramas, we're seeing rapid adoption with AIGC as the primary source of supply.

We primarily use a revenue-sharing model and leverage algorithm recommendations and decentralized operations to deliver a diversified, rapidly refreshed, and at-scale content supply. 其次呢慢剧更适合 AI 的原生内容，所以说我们主要以 AIGC 为主要的供给。

For micro-animations, we believe these are AI-native content, AIGC will serve as the primary supply. 动漫与儿童的内容，由于它的特点呢是 CG 的工业化成熟、适配度都比较高，适合渗透的快速，所以说我们主要用 AI 来显著提升效率，同时把项目的数量的分账提高。明年我们预计将上线更多的 AIGC 作品，以满足细分人群，并扩大它的稳定供给。

For animations and children's content, these have mature CG industrialization, are a good fit in our view, and we're seeing rapid AI adoption. AI significantly boosts efficiency, and our pipeline is extending.

For next year, we will release more AIGC titles to serve niche audiences and broaden stable supply. 对于中剧和网络故事片相对长篇的这些内容呢，它的复杂度呢比以上的这些内容品类要高一点，同时呢它的体量呢比长剧和电影长篇呢稍微短一些，所以说它的策略是我们要积极拥抱 AI，重点呢是探索奇幻、志怪、冒险等适配的一些风格化题材，拓展类型的多样性。现在呢部分项目已经上线了，后续我们将加速规模化的播出，兼顾成本优化和内容多元化。截止目前，我们已经上线了 16 部受分账的 AIGC 中剧以及多部的网络故事片。

For short-form dramas and internet feature films, these are medium in production complexity and volume, and compared to long-form content, these are lighter in complexity and also in volume as well. We're actively adopting AI, focusing on genres like fantasy, supernatural, and adventures to widen our genre mix.

Some titles have already launched, and we will speed up the at-scale releases, balancing cost efficiency and content diversity. Far, we have released 16 AIGC short-form dramas under a revenue-sharing model, along with several internet feature films.

对于情感与艺术高度最高、价值最大的长剧集和电影长篇而言，它的 AI 渗透的速度应该是最慢的一个，所以说我们还是坚持实拍主导，AI 来辅助，品质还是保证它的品质，通过 AI 手段来降低成本，提高效率。 For long-form dramas and theatrical films, we believe carry the highest emotional and artistic value, but these are relatively slower to adopt AI at scale.

For these content, we will focus on live-action, put quality first, use AI to support our production, and use AI to reduce costs. 谢谢。

Thank you.

AI 时代和去中心化转型下，爱奇艺的核心竞争优势以及对于创作者的独特价值？我自已翻译一下。In the context of the AI era and the ongoing shift toward decentralization, how do you view iQIYI's core competitiveness and what kind of value does iQIYI offer to content creators? Thank you.

Thank you. We'll invite our CEO to take this question.

在

AI 时代，影视行业的竞争是从内容创意开始一直到最后的商业化的全链路的能力，然后关键能力在于很多点啊，包括专业人才的聚合、创意能力、工业化的制作、对内容审查的理解、内容分发能力和多元的变现能力。这些都是爱奇艺过去十几年积累的核心的壁垒。 We believe in the AI era, video industry competition centers on end-to-end capabilities, which is from concept to commercialization.

There are quite a few essentials that are required for this. For example, the ability to bring together professional talents, generate compelling ideas, run industrialized production, have a comprehensive understanding of content review and compliance, deliver effective content distribution, and drive diversified monetization.

These are the core moats iQIYI have built over the past decade. 我们对创作者的价值，我们这个简易的口号是叫被看见、有钱赚、有荣誉。意思是那个爱奇艺积累了主要的关注，创作者的作品被更多的观众能看到。然后爱奇艺深耕多年的影视长篇的这个创作，所以已经建立了成熟的工业化体系。你先翻。

Our values to creators, there are three areas that we are targeting and also a slogan: help them to be seen, generate income, and gain recognition. IQIYI have a major share of the video entertainment audiences, the creators have greater capabilities or possibilities to be seen on the iQIYI platform.

Also, iQIYI have deep expertise in long-form video production, and we have established a very mature, industrialized content production mechanism. 其次呢爱奇艺还有海量的观影数据、丰富的版权资源，还有其他的强大的一个生态链支持、生态链的资源支持。

In addition, iQIYI also have a massive viewership data, very rich IP, and also licensing resources, and also a very strong ecosystem support. 然后对于创作者已经建立了七大的服务体系，包括爱奇艺号、专业的制作平台 NadoPro、就是物理存在的这个办公空间的创意中心、还培训、创投大会给创作者融资的、还有标杆作品创作的波罗喜剧剧场、还有创作者的客服，这个七大的支持服务体系。

We have built a seven-pillar creator support system: the IQID, which is the iQIYI Creator Center; NadoPro, our professional production platform; a physical creative centers offline; training programs; and iQIYI NADO and AIGC Venture Summit helping the creators with the fund support; and the Peter Pan and iQIYI Theater for benchmark productions; and last but not least, a dedicated creator customer service.

8月20号我们将在北京举办爱奇艺的创作者大会，围绕着内容生态建设、AI 前沿的机遇与创作者成长等等那个主题，和创作者进行深入的探讨。 On August 20th in Beijing, which is in two days, we will host the iQIYI Creator Conference featuring in-depth discussions on content ecosystem development, frontier AI opportunities, and creator empowerment.

Thank you.

Thank you.

哎，谢谢管理层接受我的提问。然后我的问题主要是想问一下海外业务的一个最新的发展和进展，以及我们怎么借鉴泰国等比较成熟市场的经验，向其他国家和地区去复制？Thanks for taking my question. I will translate my question into English.

I want to know about the latest development in overseas business, and how the operational experience from more mature markets like Thailand can be replicated in other markets? Thank you.

Thank you, Xueqing. We'll invite Mr.

Xianghua Yang to take this question.

好的，大家好。海外业务继续保持着较快的增长。Q2 整体的会员收入同比增长40%，并且按照我们内部管理报表的口径继续保持盈利。泰国呢是我们进入较早、经营模式相对成熟的市场。Q2 的会员收入和利润都在增长，盈利能力持续改善。与此同时呢，我们一些新市场，像巴西、墨西哥等会员收入同比增长215%和150%。 Our overseas business maintained rapid growth in Q2, with overall membership revenue grew 40% year-over-year, and we remain profitable on a managerial accounting basis.

Thailand is the market where we enter earliest, and where our operating model is relatively mature. It still delivered solid growth year-over-year in Q2, and with steady top-line growth and continued profitability improvement in the quarter as well.

In new markets such as Brazil and Mexico, we see membership revenue increase 215% and 150% year-over-year, respectively. 我们将不同的市场分为成熟市场、增长市场和潜力市场。成熟的市场以稳定盈利为目标；增长的市场在管理和投资的前提下，以取得最快的收入增长速度。

We categorize our overseas market into mature, growth, and potential markets, where mature markets we aim for stable profitability, growth markets focus on accelerating revenue with disciplined investments. 泰国是我们的先行的试验田。它验证了一套可以复用的经营能力。首先以华语内容是我们的基本盘，我们通过持续的营销，增强华语内容的影响力，让更多的观众观看华语内容并订阅会员，本质上就是如何把华语内容更好地销售给当地的观众。

Thailand serves as our proving ground. What we have validated is a set of reusable operating capabilities.

Using C-drama as the foundation and sustained marketing to amplify influence of Chinese content and expanding a local content supply, and tailoring the content that's adapted to the local audiences. 同时呢增加本地内容的供给，围绕当地用户的喜好开展产陪的内容的运营，与当地的运营商、平台和支付渠道合作，扩大会员规模，并且利用 AI 提升翻译、分发和制作效率。

We are also partnering with our local carriers, platforms, and payment channels to scale the membership base, and we're also leveraging AI to improve the translation and distribution, and also production efficiency. 不同市场的内容偏好和渠道结构并不相同，因此我们复制的是这些底层的能力，同时由本地团队进行针对性的调整，将泰国的经营能力复制到其他市场。

Because the content preferences and collaboration channel structures differ by markets, what we replicate are these underlying capabilities while the local teams do make targeted adaptations, for example, applying Thailand's operating capabilities to other markets. 我们的策略不是简单地追求进入更多的国家，而是以单位经济和经营贡献为约束，在验证收入质量和盈利能力后，再逐步扩大到更多的区域。

Our strategy is not to chase country counts. We are guided by unit economics and operating contribution, and we will expand into new markets after validating revenue quality and profit-generating capabilities.

谢谢大家。 Thank you.

Thank you, everyone, for joining the call today. If you have further questions, do not hesitate to contact us.

Thank you, and see you next quarter.