Thank you, operator. Hello, everyone, and thank you for joining iQIYI's third quarter 2025 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. Jun Wang, our CFO; Mr.

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

Xianghua Yang, Senior Vice President of Movies and Overseas Business; and Mr. Gong Yu, Senior Vice President of Brand Advertising Business.

Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Jun, 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 statements, except as required under applicable law.

I will now pass on to Mr. Gong.

Please go ahead.

Hello, everyone. Thank you for joining us today.

This summer, we captured the hearts of audiences with our original blockbuster drama, The Thriving Land, 生万物. As we begin today's earnings call, I would like to share the journey of bringing the compelling story to life.

The Thriving Land became a highlight of iQIYI highly acclaimed Masterpiece Theater, 大家剧场, a collection renowned for its expertly crafted adaptation of famous novels. The Thriving Land tells a compelling tales of three families across two generations in rural China in the 1920s.

When production began in Shandong last September, we heard questions and concerns. Can today's audience be drawn to a story set 100 years ago?

However, we built this project with strong confidence, backed by our years of experience in adopting literature to hit dramas, A Lifelong Journey, 人世间, To the Wonder, 我的阿勒泰, and Northward, 北上. It is our belief that great stories resonates universally.

They transcend time, culture, and age, forging deep connections with viewers across regions and demographics. This ability to tell timeless stories is what sets long-form content apart from fast-paced, bite-sized entertainment.

As we all now know, The Thriving Land became a major hit, exceeding the 10,000 mark on iQIYI Popularity Index score and topping this year's Enlightent data charts for peak daily market share. Its influence expanded far beyond our platform, making meaningful impact on traditional TV and offline as well.

It achieved the highest average rating per episode on CCTV's drama channel and boosted tourism in its filming locations, echoing the offline success of the Knockout and To the Wonder. The success of The Thriving Land is no coincidence.

It's built on iQIYI's proven content methodology to create and amplify IP value through high-quality storytelling and advanced production technology to connect with broad and diverse audiences and to develop our business model with IP as the core. From online to offline, from domestic markets to global audiences, our business model continues to evolve and scale.

Today, our online operations are well-established, global expansion is accelerating, and our experience business is advancing accordingly. On top of that, we are embracing exciting opportunities enabled by a supportive regulatory environment and advancements in AI.

These new regulatory policies lay a solid foundation for innovation and growth in the long-form video industry. At the same time, we leverage AI to transform how content is created and consumed.

In July, we partnered with Google and ByteDance and launched a global AI short film competition, aimed at discovering and nurturing talents who create short videos using AI technologies. We also collaborated with Academy Award-winning cinematographer, Mr.

Peter Pau, on a co-branded AI theater featuring AI-driven content. We aim to leverage iQIYI's professional production expertise to cultivate the next generation of creators, pioneer innovative AI-driven content production methods, and deliver compelling AI-powered storytelling that resonates with audiences.

Now let's dive into the details of our business performance in Q3, starting with content, which is a cornerstone of our business. Our goal is to deliver diverse, beloved content that drives commercial success.

For long-form dramas, we focus on top-notch stories with high commercial value. In the third quarter, we once again secured the top position in total viewership market share, according to Enlightent data.

Our diverse, high-quality lineup included the nationwide hit, The Thriving Land, and our in-house custom detective serials, Coroner's Diary, 剖穴录, which emerged as a summer's dark horse with an iQIYI Popularity Index score exceeding 10,000. Additionally, the science fiction serials, Mobius, 不眠之日, earned strong acclaim for its innovative storytelling, reaching a peak popularity score of over 8,800.

Moving to movies, we achieved major breakthroughs in original theatrical releases. The Shadow's Edge, 捕风捉影, grossed over RMB 1.2 billion, leading the summer box office and making a historic achievement for us.

On our online movie platform, we retained the top viewership market share for 15 consecutive quarters, driven by a diverse slate of 12 key titles. In Q2, we launched an innovative revenue sharing model to maximize returns for films with limited box office opportunities.

This strategy is gaining traction in Q3, with new titles like A Foolish Fish 2, 误入歧途2之吉星高照, generating over RMB 17 million in revenue sharing model in two months. For variety shows, our focus on top-tier titles delivered strong results in both popularity and revenue.

The King of Stand-up Comedy Season 2, 喜剧之王单口季, our flagship IP, generated impressive membership and advertising revenues. It achieved an iQIYI Popularity Index of over 8,000 and dominated the genres with a leading market share, according to Enlightent data.

Additionally, our newly launched observation show, Her Prime, 姐姐当家, sparked widespread discussions. To deepen audience engagement and elevate our variety show IP value, we introduced consumer products like collectible cards and co-branded merchandise collections, resulting in stronger audience loyalty.

Turning to micro-dramas, they continue to enhance our content ecosystem, achieving double-digit sequentially growth in average daily viewing time and daily subscription revenue in the third quarter. Our micro-dramas also have attracted sponsorship from brand advertisers, with more partnership anticipated in the future.

This growth has been driven by our focus on premium content, enhanced original production capabilities, and an expanded library of free titles. Our micro-drama content library now includes over 20,000 titles, with over half available for free.

We have also established a strong capabilities for consistently releasing original micro-dramas. Hits such as Fate of Three Lives, 缘起三生, Nurturing the Knight, 饲养夜色, and Immortal Paradise, 隐士的天堂, resonate strongly with audiences.

Additionally, we introduced a dedicated micro-animation channel, 漫剧, and kicked off original production. Micro-animations is an innovative format of short-form animation that has experienced rapid growth in the past year, following the success of micro-drama and heavily leveraging AI technology.

For animations, we continue to improve our original production capabilities. In the third quarter, Over the Divine Realms, 神国之上, continued to enjoy strong viewership.

Additionally, our highly regarded original production, Love Between Fairy and Devil, 苍兰诀, returned with a second season, captivating loyal audience and driving high engagement. Next, let me share our exciting slate of content for the fourth quarter.

The diverse drama pipeline includes Faded Hearts, 一笑随歌; Sword and Beloved, 天地见心; Silent Honor, 沉默的荣耀; Dead End, 水影迷宫; Strange Tales of Tang Dynasty 3 to Chang'an, 唐朝诡事录之长安; Legend of the Magnate, 大生意人; Speed and Love, 双轨; and Silent Tide, 风雨潮. The movie pipeline includes our original theatrical film, Skin, 皮囊, for theatrical release, and our original theatrical hit, The Shadow's Edge, for online streaming.

The first batch of original internet films under the Emerging Film Project, 燎原计划, and the licensed films such as Diet to Rise, 南京大饭馆; The Legend of Hei 2, 罗小黑战记2; The Volunteers: Peace at Last, 志愿军：浴血和平; and Nobody, 浪浪山小妖怪. The original variety show includes flagship IP, Blooming Journey 2, 一路繁花; Hi, Young Farmers, 你好种地少年; and a brand-new IP, Wonder Together, 宇宙闪烁请注意.

The micro-drama pipeline includes the first micro-drama based on the highly popular IP, Strange Tales of Tang Dynasty, titled Tang Dynasty Mysterious: The Poison Conspiracy, 唐诡奇谈之长安仙沛, as well as Foreseeing You in My Final Days, 三秒遇见你, and Scent-Marked Destiny, 嗅骨. The animation and children's content includes new animation, Ascendant of the Nine Suns, 九阳武神, returning cartoon Deer Squad Season 4, 无敌鹿战队, and a new IP, Peiman and Burst Food Truck, 小兔扭扭餐车.

Moving on to membership services, we aim to build a household-name membership brand with broad market appeal, backed by a vibrant content ecosystem and exceptional services. Membership services revenue recorded sequential growth in Q3, driven mainly by original hit dramas like The Thriving Land and Coroner's Diary, as well as theatrical mega-hit Ne Zha 2.

Beyond content, we are increasing our efforts to enhance membership services and deliver unmatched value. Our family-oriented S-Diamond plan stands out with exclusive perks like express packages offering early access to show finales, a proven driver of new subscriptions and upgrades to this premium tier.

The courtesy experience program, 云包场, continues to boost engagement with meaningful revenue growth year over year. We have created stronger synergy between membership and advertising revenues by introducing branded rooms within the program.

We are also integrating membership experience with top IPs. This quarter, we launched IP-themed membership cards for Ne Zha 2 and The Journey of Legend, 赴山海, giving fans a deeper connection to their favorite story and characters.

Connecting with our audience is at the heart of what we do. Our annual flagship July 17th iQIYI Membership Festival has become a signature fan appreciation event, loaded with exclusive perks and irresistible subscription offers.

We also strengthened membership value and loyalty through over 10 VIP-only gatherings, ranging from fan meetups to advanced screenings. We have elevated membership performance by focusing on operational optimization, aiming to boost membership value and encourage subscribers to stay with our service longer.

This includes initiatives to promote longer-term plans and targeted promotions for specific audiences. Additionally, we expanded our bundled membership partnerships to 16 brands, while broadening our sales channel across e-commerce and telecom platforms.

Moving on to advertising business. In the third quarter, brand ads recorded double-digit annual growth, mainly driven by premium variety shows like The King of Stand-up Comedy Season 2 and hit dramas like The Journey of Legend and The Thriving Land.

Our content-related ad solutions continue to gain traction, contributing over 60% of brand ad revenue. Key verticals, such as food and beverage, internet services and e-commerce, beauty and personal care, all showed robust annual growth.

We use AI to drive production innovation and advertising efficiency, with features like creative bullet chats and AI-generated ad materials, including animation-style mid-roll for innovative marketing solutions. As we enter Q4, we aim to capitalize on major advertising opportunities, such as Double 11 shopping festival, Christmas and New Year campaigns, and new smartphone launches.

Our focus will be on maximizing ad sales from premium variety shows, dramas, and our drama theater brands, while further enhancing monetization on smart TVs. We will continue leveraging AI to improve brand advertising efficiency.

For performance ads, we now have a healthier and more balanced advertiser portfolio, with revenue less dependent on individual client. By industry, internet services and education and training were standout contributors this quarter.

Looking ahead, we will focus on capturing new budgets in the internet services sector, including tools, social platforms, and mini-games, while scaling up revenue in education and training, wellness management, and e-commerce. Additionally, we plan to expand our performance ad inventory and utilize AI to further enhance monetization efficiency.

Moving on to technology and products, we continue to harness cutting-edge technologies to transform the entertainment experience, improve content production efficiency, and boost content value across our platform. On the content creation front, we are leveraging AI to transform storytelling.

A notable example is our partnership with Academy Award-winning Mr. Peter Pau.

Together, we will launch the Peter Pau-iQIYI AI Theater to pioneer the next generation of AI-driven storytelling and talent development. The first titles are set to premiere soon, which we are very excited for.

Additionally, we are using AI to produce high-quality original micro-animation at much lower cost. Another unique example is the AI-powered iQIYI Reel Collections, 速看, which now cover all major content categories.

This features utilized a smart editing agent to automatically convert long-form videos into vertical short shots, which are then included in iQIYI Reel Collections. iQIYI Reel Collections offer users a viewing experience akin to that of micro-dramas.

We are transforming user engagement with Taodao, an AI-powered personal assistant that provides personalized support, including video searches, recommendation, and plot insights. The latest update improved recommendation for micro-dramas and short-form videos alongside long-form content, while also enhancing plot Q&A capabilities.

Additionally, we introduced binge-watching rankings, allowing users to track time spent on their favorite serials and view their rankings. This feature has received highly positive feedback from fans.

In addition to advancing AI applications, we are driving the industrialization of video production with cutting-edge virtual production technology. Our virtual production capabilities now support both in-house and external projects.

This quarter, we launched an omnidirectional motion-simulating vehicle rig filming platform. Powered by our in-house developed iQIYI Stage virtual production system, the platform naturally enhances efficiency of high-frequency vehicle scene shots.

It delivers streamlined, repeatable workflow and has already been utilized for virtual production in major theatrical productions. Moving on to business performance in regions outside of mainland China, we maintained strong growth momentum in Q3, with membership revenue increased by over 40% annually.

Markets like Brazil, Spanish-speaking regions, Mexico, and Indonesia had membership revenue more than doubled year over year. In this quarter, the average daily subscribers also reached all-time high.

The strong performance is supported by an exceptional content lineup. Our Chinese dramas continue to gain popularity globally, with revenues grow double-digit both annually and sequentially.

Notably, the Thai-dubbed version of Coroner's Diary set platform records for both viewing time and peak revenue within its language segment. It also topped iQIYI popularity charts in 13 overseas markets.

Meanwhile, our local content slate also excelled. Kinnaree: The Series, 灵魂重生, emerged as a phenomenon in Thai-language content this year, generating the highest membership revenue among all Thai dramas on our platform and topping related rankings on Google and Twitter.

Beyond long-form content, micro-dramas continue to build strong momentum overseas. Membership revenue from micro-dramas grew 140% sequentially.

By the end of September, micro-dramas ranked second only to long-form dramas across several core metrics, including membership revenue and viewing time. Moreover, multiple iQIYI original micro-drama gained solid traction abroad.

For example, How Dare You, 乘风破浪, has shown a strong long-tail effect three months post-launch, while also expanding into locally produced micro-dramas. Multiple projects in English, Thai, Korean, and Indonesian are in production and targeted for launch this year.

Looking ahead, we will continue to deliver high-quality content to international audiences, deepen partnership with telecom operators and local partners, and leverage AI to drive user acquisition. Moving on to experience business.

We are focusing on two key areas: IP-based consumer products and offline experiences. We are leveraging our extensive and unique IP resource to build a more robust entertainment ecosystem.

For IP-based consumer products, we have upgraded our business model from a licensing-only approach to a dual-track strategy combining self-operated merchandise with licensing. Q3 growth was strong, with revenue from IP-based consumer products more than doubling year over year.

In particular, revenue from self-operated merchandise grew more than 70% sequentially, driven mainly by collectible cards from top drama titles. Meanwhile, our self-operated portfolio has expanded beyond collectible cards into additional categories, supported by the establishment of in-house teams.

For IP licensing, the hit drama, The Journey of Legend, has partnered with over 30 licensees, setting a new record while spanning multiple sectors, including e-commerce, FMCG, and beauty. In our offline experience business, we are pioneers in this emerging field.

At the heart of this initiatives are iQIYI Lands, which are designed to operate under an asset-light model. Our two locations, Yangzhou and Kaifeng, are under development, with the Yangzhou iQIYI Land scheduled to open early next year.

A third site in Beijing has also been announced. By integrating technologies like AI and XR with our content IP, iQIYI Land will provide interactive and scalable experiences that are faster to iterate and more efficient than traditional theme parks.

This approach reduces space and capital requirements, with revenues expected to come mainly from ticket sales and other on-site spending. As 2025 draws to a close, we reflect on a year of rapid transformation driven by technical innovation and evolving business models.

We are not merely adapting, we are advancing, fueled by our thriving overseas expansion, growing experience business, and ongoing AI investments. Breakthroughs in any of this areas could elevate us to a new heights.

Amid this change, our core remains the same: creating premium content IP supported by a proven commercial model. This foundation earns us the loyalty of hundreds of millions of users and the trust of industry partners.

Moving forward, we will continue delivering quality content, fostering creativity with partners, and driving long-term value for shareholders. Now let me hand it over to Jun for the financials.

Thanks, Mr. Gong, and hello, everyone.

Now, let me walk you through the key numbers for the third quarter. The total revenue for the third quarter were RMB 6.7 billion, up 1% sequentially.

The membership services revenue reached RMB 4.2 billion, up 3% sequentially, driven mainly by our original blockbuster drama and a theatrical mega-hit, Ne Zha 2, during the summer season. The online advertising revenue was RMB 1.2 billion, decreased by 2% sequentially, as the performance in the second quarter benefited from the major advertising campaigns.

The content distribution revenue reached RMB 644.5 million, up 48% sequentially. The increase was mainly driven by the strong distribution performance of the original theatrical movie invested by iQIYI, along with growth in transactions for dramas.

Other revenues were RMB 585 million, down 29% sequentially. Moving on to costs and expenses.

The content cost was RMB 4 billion, up 7% sequentially, as we launched a more diverse selection of premium content during the peak summer season. The total operating expenses were RMB 1.3 billion, down 3% sequentially, benefited from our disciplined expense management.

Now, turning to profits and cash balances. The non-GAAP operating loss was RMB 21.9 million.

Non-GAAP operating loss margin was 0.3%. As of the end of the third quarter, we had cash, cash equivalents, restricted cash, short-term investments, and long-term restricted cash included in prepayments and other assets a total of RMB 4.9 billion.

At the quarter end, the company had a loan of US$552.5 million to PAG recorded under amount due from related parties. For more detailed financial data, please refer to our press release on our IR website.

Now, we will open the floor for Q&A.

管理层晚上好，感谢接受我的提问。我想请教一下，就是广电21条新规其实发布到现在已经有三个月了，那公司管理层能不能帮我们更新一下新规的一些落地进展？谢谢。Thanks management for taking my question. It has been three months since the new regulations issued.

Could management provide an update on the progress? Thank you.

The core objective of the new policies is to promote the healthy development of the long-form video industry. In the past two months since its implementation, we have observed positive progress in several areas, including the concurrent review of key dramas at the national and provincial administrations, as well as the exploration of concurrent review of broadcasting for new content formats, such as anthology drama, multi-season drama, multi-arc drama, and sitcoms, as well as the optimization of co-review methods.

其次，在新的政策环境下呢，我们也积极地创新内容制作和播出的模式。比如我们在探索全新的这个内容形态，就是网络故事片的开发和合作，将它纳入到我们现有的这个燎原计划的合作范畴当中。我们也是希望通过与合作伙伴的收入分成这种模式，吸引更多的创意人才和优质内容来共同推动行业的创新和发展。 Under the new policy environment, we are actively innovating in content production and broadcasting models.

For example, we're exploring a brand-new content format called online feature series and integrating it into our existing Emerging Film Project collaboration framework. Going through a revenue sharing model with our partners, we aim to attract more creative talents and high-quality content, driving innovation and also growth in the industry.

从目前的执行进展来看，新政对整体影视行业的利好的信号是清晰的。爱奇艺已经有部分的项目也受益于这个政策的支持，更快速地达到了备播的这个状态。随着项目制作的有序推进，我们也会逐步地看到政策带来的规模化成果。长远来看，新政将引领行业迈入一个新的发展周期，我们广大的从业者也将从中受益。谢谢。 Based on the current progress of implementation, it is clear that the new policies have sent positive signals to the industry.

Some of our projects have already benefited by the policy support, allowing them to reach a ready-to-broadcast status more quickly. As productions proceed smoothly into future, we will gradually see the broad benefits of the policies take shape.

In the long term, the policies will drive the industry into a new growth phase, benefiting professionals across board. Thank you.

管理层晚上好，谢谢接受我的提问。我的问题是关于会员业务的，能不能请管理层给我们分享一下您对会员业务的那个展望？Thanks management for taking my question. Would management share some color about your outlook about the membership business?

Thank you.

Thanks, Vicky. We'll invite our Senior Vice President, Youqiao Duan, to take this question.

谢谢你的提问，下面我来回答这个问题。9月底以来呢，我们整体会员业务发展的势头不错，主要有以下三个原因。第一呢是持续推出优质的内容，第二是不断提升权益和服务，第三是优化市场和销售策略，包括我们拓展了联名卡、为教师和学生提供定向优惠等等。 Since the end of September, our membership business has shown nice growth momentum, driven by three main factors.

First, the continued release of high-quality content; second, the ongoing enhancement of member services and benefits; and third, the optimization of marketing and sales strategies, such as expanding bundled memberships and offering targeted discounts for teachers and students. 9月底呢上线的《沉默的荣耀》打破了圈层的限制，吸引了很多年轻的观众。另外呢，女性向的内容《一笑随歌》、《天地见心》，还有迷雾剧场的《命悬一生》、《树影迷宫》，这些内容呢同样地都广受用户的喜爱。

The Silent Honor, which was released at the end of September, broke the demographic boundaries and captured the hearts of young audiences. Our female-oriented content, such as Faded Hearts and Sword and Beloved, along with the suspense theater titles like The Hunt and The Dead End, also gained wide popularity.

近期上线的《唐朝诡事录之长安》是《唐朝诡事录》IP系列的第三部产品。播出后呢迅速赢得了广大用户的好评，热度也破了万，成为该系列呢第二部热度破万的剧集。同时呢也让这个IP系列呢成为爱奇艺首个实现双剧热度都破万的系列剧。今年的新作呢是在延续经典元素的基础上呢也注入了更多创新的内容，这样呢不仅展现了优质IP系列化开发的实力，同时呢还成功吸引和巩固了一批忠实的观众。 The recently released Strange Tales of Tang Dynasty 3 to Chang'an, which is the third drama of the Strange Tales of the Tang Dynasty IP series, received widespread acclaim shortly after its premiere, with its popularity index on the iQIYI surpassing 10,000.

It became the second drama in the series to hit this milestone, making the Strange Tales of the Tang Dynasty iQIYI's first IP series to have two seasons exceeding the 10,000 popularity mark. The latest release in the series, while building on the classic elements, introduced more innovative content, showcasing the strength of high-quality IP series development, and also successfully attracting and retaining a loyal audience base.

同时呢，我们也通过精细化的运营，提升会员的价值和权益的感知。例如提供更丰富的会员订阅选择、更丰富的会员专属的IP衍生品，还有高级会员专属的线下活动等等。 At the same time, we have enhanced membership value and perception of benefits through more refined operations, for example, offering more diverse subscription options, offering member-only IP merchandise, and also offline events tailored for premium members.

我们有信心在优质内容和权益服务的支持下，未来呢实现整个会员业务的健康增长。谢谢大家。

We're confident in achieving sustainable growth in our membership business, with the support of high-quality content and enhanced member benefits and services. Thank you.

谢谢管理层接受我的提问。我们留意到中国这个影视IP其实最近在海外的受众逐渐在增加。所以想请公司介绍一下目前海外业务的这个进展。Thank you management for taking my question. We noticed that Chinese culture industries have made good progress in the overseas markets lately.

Can management share more progress on your overseas expansion and strategy? Thank you.

Thanks, Felix. We'll invite our Senior Vice President of our Overseas Business, Mr.

Xianghua Yang, to take this question. Please.

好，谢谢提问。海外业务今年表现强劲，Q3总收入、会员收入同环比的增幅都创了近两年的新高。 Our overseas business has strong performance this year, with Q3 total revenue and membership revenue achieving the highest annual sequential growth in the past two years.

华语内容是我们海外内容的基本盘，爱奇艺是海外用户观看华语内容的第一选择。我们持续地在各个市场推广华语内容，明显地看到它在海外主要市场影响力在不断地提升，同时有效地带动了我们的用户和会员数的增长。 We see the Chinese content serves as the cornerstone of our overseas content portfolio, and iQIYI has become the top choice for an increasing number of overseas users to watch Chinese-language content.

We continue to promote Chinese-language content across various markets, and have seen a significant increase in its influence in major overseas markets, which effectively driving the growth in user base and also the membership numbers. 在本地剧方面，我们在泰国、马来、印尼、中国台湾进行了采购和自制。其中泰国是做得最成功的市场，今年推出了多部爆款，比如泰剧《灵魂重生》的播放时长和收入均创了我们泰剧的新纪录。我们将泰剧加配字幕后在其他市场播出，自制泰剧在美国和其他海外市场的收入已经超过了泰国本土市场。泰剧也成为陆剧、华语剧以后第二个具有国际市场传播力的内容品类。未来我们将增加自制泰剧、马莱剧和印尼剧的数量。

In terms of local content, we have engaged in both licensing and original productions in Thailand, Malaysia, Indonesia, and Taiwan. Among these, Thailand has been our most successful market.

This year, we launched several hit titles, such as the Thai drama Kinnaree: The Series, which set new records on our overseas platform in terms of both viewing hours and revenue for Thai content. With subtitles added, our original Thai dramas have been distributed in other markets, and revenue from our original Thai dramas in the U.S.

and other overseas markets has already surpassed that of Thailand's domestic market. We are pleased to see that Thai dramas has become the second globally recognized content categories after C-dramas.

Looking ahead, we plan to increase the production of original Thai, Malaysian, and Indonesian dramas. 今年初我们提到了今年开拓一些新的市场，比如中东，比如拉美的西语区和葡语区的巴西，这几个区域在今年一直保持高速增长，会员收入和会员数均有非常显著的增长。

At the beginning of the year, we mentioned that some of the newly developed markets, such as the Middle East, Spanish-speaking regions in Latin America, and Brazil regions, and these regions have maintained rapid growth actually throughout the year, with significant increases in membership revenue and subscriber numbers. 未来我们将持续推出优质内容，并且借助AI的技术提升内容制作和宣发的效率。目前AI在海外内容的宣发工作中，由AI生成的物料占比已经超过了70%，极大提升了宣发效率。谢谢。

In the future, we will continue to deliver high-quality content, while leveraging AI technology to enhance content production and promotional efficiency. Currently, over 70% of promotional materials for our overseas content are generated using AI, which significantly boosting our market efficiency.

Thank you.

感谢管理层接受我的提问。我的问题是关于AI的，然后想问一下就是目前AI在影视娱乐领域的应用越来越深入，那能否请管理层可以给我们分享一下爱奇艺未来在AI应用、内容生产还有业务布局等方面的思考？I will translate the question myself. The application of AI in the global film and television industry has been advancing in increasing depth.

Could management share strategy insights and future plans pertaining to AI adoption in content production and business layout? Thank you.

Thank you. We'll have our CEO, Mr.

Yu Gong, to take this question. 大家好，那个

AI 算给爱奇艺非常好的一个机会，打个比方，就像20年来，过去20年来，互联网技术给了这个 online video 这个行业这个超越电视行业的这个技术优势一样，这个 AI 特别是大模型将给这个爱奇艺特别好一个机会。 Okay.

I think for the AI technology, it provides varied opportunities outlook for iQIYI. To take an analogy, for example, in the past 20 years, actually the internet actually provided online video industry an opportunity and an advantage to surpass traditional linear TV.

We think currently with the large language models for AI actually provides the similar opportunity outlook for iQIYI. 在过去的将近三年内，爱奇艺应用 AI 主要在三个方面。第一个方面提高运营效率，比如说生成海报图等等，这个提高速度，降低成本，比如说海外业务的翻译，这个机器翻译要比人翻译成本要低很多，速度快很多。

In the past few years, actually the AI technology have deeply integrated in our operations and helping to achieve goals in three key areas. The first one is to increase our operational efficiency.

We use AI for marketing materials, for example, automatically to generate posters and also promotional resting materials. Also, we use that for overseas content translation, while the cost is much cheaper compared to the human labor side, and also faster.

第二点在货币化能力的提升方面，比如说广告素材的生成，比如说这个提高广告算法的投放精准度和转化率。 The second point is AI actually boosts monetization capabilities, as it can efficiently produce advertising creative materials, and we can use that to optimize placement algorithms, which help us to improve the targeting accuracy and also conversion rate.

第三点是在赋能加持内容制作方面，比如说我们的剧本工坊提高小说的评审的效率，然后提高剧本的评估的这个准确性和效率，影像工坊可以做很多概念图、这个概念 demo 的 video 等等。 The third point is AI can empower us for content production.

Actually, we use AI as the core for our internal production capabilities. For example, we have a screenplay workshop in iQIYI.

We use that to significantly enhance the evaluation and also the creation capabilities for novels and scripts. Also, we have an image workshop feature, which can effectively support early-stage creative developments, for example, by providing concept posters and also storyboard generations and character designs.

第四点是推出了一些用户用的基本功能，比如说桃豆个人助手，比如说跳看功能，提高用户的观影体验。 The fourth point is we actually use AI to roll out some basic user features.

For example, based on the AI, we rolled out the Taodao World, Taodao, and also iJump features. All of these will improve the viewing experiences.

以上四点呢未来都继续优化。那么未来的重点还有三点比较重要的，第一点是，就是现在跟未来吧都很重要的。第一点是要把我们内部用到的这些智能制作系统的功能开放给我们紧密的合作伙伴，让我们的这些 partner 共同利用 AI 提高这个制作能力，提高效率。 The above-mentioned four points earlier are the ones we already use in our daily operations.

We'll keep refining them and upgrading them. Hopefully, it will bring more benefits.

Now, and going forward, we'll focus on three major areas. The first one is the iQIYI's intelligent production system, which actually was previously reserved for internal use, and we will, going forward, gradually open up its core functions for our close partners, helping them to leverage AI to enhance their production capabilities.

然后通过一些市场行为，比如说这个 AI 短片大赛，还有跟鲍德熹的 AI 剧场等等这些市场活动，然后呢发掘还培养用 AI 创作的新一代的创作者，这些新一代的艺术家，然后构成一个健康的内容生产的生态系统。 Third point is we will continue to promote using AI in the market and also for the industry.

For example, we launched initiatives such as the AI short film creation competition, as I mentioned earlier in the opening remarks, and also partnering up with Academy winners Peter Pau to roll out the AI theater. I think the main purpose for these initiatives are to discover and nurture AIGC creative talents through collaborations and also market promotions.

The purpose is to foster an innovative-driven content ecosystem going forward. 最后一点，就是最关键的，从现在开始用我们的技术加已经有的新一代的创作者合作伙伴在漫剧、动漫、什么知识内容、纪录片、网络电影这样简单的内容先生产出 AI 主导的内容，然后呢为以后这个就像现在的长片、剧、长剧、电影等等这个大规格的使用 AI 创造前期的条件，打好基础。

Last but not least, our focus will be collaborating with our partners and also utilizing our current AI technologies to explore more on a large-scale application of AIGC in areas, for example, like micro-animations and animations, educational content, documentary, etc. Hopefully, these AI will become a core engine of content creation.

This is the first stage. Going forward, the bigger picture will be utilize AIGC to apply them in our long-form video content, for example, dramas, for example, films.

我们预估吧，如果快了，未来一两年之内，慢了，三年多，不会超过五年，这个说小了影视行业，说大了整个这个互联网视频行业会发生巨大的一个变化。所以我们会投入非常大的力量，可以说是新业务中最大的力量，不仅是新业务了，传统业务加新业务中投入最大的力量去用 AI 去做创新，去做改变。谢谢。 We're estimating probably in the next one to two years, that's on the slower side, or maybe three years, but we think, overall speaking, no more than five years, AI will bring dramatic change to our internet space and also to the video content creation industry.

Going forward and also currently, we have been investing heavily in AIGC and also AI technology applications. That is among the core area of investment for the company right now.

Hopefully, going forward, we can utilize AI to do more creative content and also to change the content ecosystem. Thank you.

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

See you next quarter. Thank you.

Thank you. Bye-bye.