Thank you, operator. Good morning and good evening, everyone.

Thank you for joining us today for Hello Group's second quarter 26 earnings conference call. The company's results were released earlier today and are available on the company's IR website.

On the call today are Mr. Tang Yan, CEO of the company.

Mr. Wen Jianhua, CEO of the company, and Ms.

Hui Peng, CFO of the company. They will discuss the company's business operations and highlights, as well as the financials and guidance.

They will all be available to answer your questions during the Q&A session that follows. Before we begin, I would like to remind you that this call may contain forward-looking statements made under the Safe Harbor provision of the Private Securities Litigation Reform Act of 2 thousand.

Such statements are based on management's current expectations and current market and operating conditions. And relate to events that involve known or unknown risks, uncertainties, and other factors.

All of which are difficult to predict and many of which are beyond the company's control. Which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statement.

For the information regarding this and other risks, uncertainties and factors, is included in the company's filings with the US Securities and Exchange Commission. The company does not take any further obligation to update any forward looking statement as a result of new information, future events or otherwise, except as required under law.

I will now pass the call over to our COO, Mr. Wen Jianhua.

Jianhua, please.

Okay. Hello, everyone.

Thank you for joining today's call. The group maintained steady business momentum in Q2.

On the domestic side, Momo continued to preserve the healthy functioning of our Cash Cow business through product innovation and refined operations. While Tantan focused on AI capability building to improve user experience and modernization efficiency.

On the overseas side, the synergy across our diversified product portfolio became increasingly evident. Next, I will walk you through the key updates.

Starting with the financials. For Q2 26, total group revenue was 2.49 billion renminbi.

Down 5% year over year, but up 4% quarter-over-quarter. Domestic revenue reached RMB 1.81 billion, down 17% year-over-year but up 1% quarter-over-quarter.

Overseas revenue was RMB 673 million up 52% year-over-year and 13% quarter-over-quarter. Overseas revenue accounted for 27% of total revenue, compared to 17% in the same period last year.

Adjusted operating income was RMB 276 million with a margin of 11%. Our 2026 priorities continue along 3 main tracks.

For Momo, the goal is to ensure stable, sustained productivity of our cash cow business for Tantan, to continue exploring a dating experience and an efficient business model tailored for Asian users; and for our new businesses, to deepen the overseas presence enrich our brand portfolio, and build a long term growth engine. Next, I will walk you through each.

Let me start with Momo. On the user side, a year of user oriented product iteration has effectively lifted platform engagement.

Combined with the sequential recovery from the seasonal low in organic profit, this drove a modest increase in Momo's overall user base. Building on this uptick in the overall scale, our audio and video small ticket scenarios run themed operational events around the World Cup and key seasonal occasions.

Driving paying users up 200 thousand quarter-over-quarter to 3.9 million. On the product side, Momo focused on refining our deep chat matching strategy, precisely pairing users with a high intent to chat which had a positive effect on engagement, retention, and overall user scale.

AI chat assistant trains these models on real user behavior data to deepen its understanding of user preferences driving steady growth in feature adoption as well as the reply rate in AI greetings. This has both supported long-term retention and user base scale and opened up new revenue scenarios.

This quarter, we also began gray testing AI Xiaomi. Which has AI browse users photos to identify common interest complete an initial screening of potential matches, and automatically generate a personalized icebreaker message.

Further improving matching efficiency and connection success rate. On user acquisition, we ran a holdout experiment on channel spend for dormant user reactivation, aiming to test whether attribution errors in our channel data were leading to inefficiencies in these reengagement efforts.

The results showed that there is indeed room for continued optimization in our channel investment. And we are confident we can maintain our current platform scale and revenue with less spend.

In Q3, we will continue to improve acquisition efficiency based on these findings. Turning to Momo's commercial performance in Q2, Momo's VAS revenue was RMB 1.54 billion, down 16% year-over-year, but up 2% quarter-over-quarter.

The year over year decline was mainly driven by 2 factors. Number 1, continued tightening on the tax front, which has had a sustained and material impact on our agencies and broadcasters.

Number 2, softness in consumer spending due to macro. Sequential growth came in weaker than in previous years mainly because since April, some agencies in the audio scenarios scaled back operations due to tax related pressure which weighted on revenue.

In late May, we rolled out targeted sub subsidies to ease the operating pressure on these agencies. Which drove a quick recovery in revenue.

In Q2, our overall VAS revenue sharing ratio rose by a low single-digit percentage points, both year-over-year and quarter-over-quarter. Mainly because we moderately raised the revenue sharing ratio and subsidy support for certain core agencies in the audio scenarios to ease the supply side's financial pressure through the tax compliance process.

Keeping the supply side stable at a manageable cost. On the product and operation side, we stayed with our approach of tier monetization and use-case innovation.

For high value users, we selected top grossing broadcasters and created AI generated lightning space to create custom gifts for them, which effectively refreshed the paying interest among our top spenders. For mid-tier users, we capitalized on World Cup related traffic by rolling out interactive gameplay such as match predictions, which lifted engagement and user stickiness.

At the long tail end, we gray-tested a moment boost feature letting users pay to increase the exposure of their post. This not only produced positive operating data, but also successfully validated a new small ticket payment scenario.

This multipronged refined operating approach provided solid support for the stability of our overall revenue base amid the macro downturn. Now, let's turn to Tantan.

As of the end of Q2, Tantan had 0.5 million paying users, a modest decrease of 40 thousand quarter-over-quarter. Mainly due to pressure on paying conversion from Alipay's adjustments to its auto renewal deduction rules.

On the user base, average domestic user scale was stable with a slight up uptick in Q2, marking the first stabilization in our user base since we began scaling back marketing spend in early 2022. New user growth stayed under year-over-year pressure amid the lingering effects of lower marketing spend.

But on the product side, refined targeting strategies for different user segments, improved matching efficiency, lifting retention among both male and female users. To varying degrees.

And contributing positively to overall user base stability. In Q2, Tantan's domestic business focused its core efforts on exploring AI driven improvements to the user experience.

Among this, AI icebreaker and AI chat assistant delivered encouraging early results. The team strengthened AI's semantic understanding of users' photos, which fits Tantan users' preference for expressing themselves through images rather than text.

And use the photo content to generate personalized opening lines which had a particularly strong pull on female user retention. To address the pain point of female users receiving too many matches, the new AI curated matching feature scans through a large volume of matches to surface the best people to chat with.

Effectively reducing decision fatigue. In addition, AI 1 click registration and profile optimization processed the user information in bulk with precision, which not only lowered the barrier to onboarding, but also laid a high quality data foundation for building an AI-driven social manager down the road.

And enabling deeper, more curated matching and recommendations. On user acquisition, external factors pushed up unit acquisition cost year-over-year, and combined with a narrowed channel budget, this reduced the number of users acquired from a year ago.

However, because organic traffic retains better and drops more slowly than channel traffic, This partially offset the pressure on the overall user base. From the reduction in paid acquisition.

Channel ROI declined quarter-over-quarter due to rising unit cost and the impact of Alipay's policy change on ARPU, but Tantan's overall ROI remained at a healthy level above 100% payback. On the financial side in Q2, Tantan generated total revenue of RMB 156 million down 18% year-over-year and 3% quarter-over-quarter.

The revenue decline was mainly due to the temporary pressure on membership renewals from Alipay's domestic channel policy change adjustment. In response, we took several measures.

First, we launched a lifetime membership product and encouraged the short cycle subscribers to convert to longer cycle plans. Reducing the volatility risk tied to the renewal frequency.

Second, we completed an upgrade to our payment infrastructure. Integrating DouyinPay and WeChat Pay to meaningfully reduce the reliance on a single channel.

At the same time, we optimized the matching strategy behind FlashChat driving revenue growth in that scenario against the broader trend. Lastly, our new businesses.

In Q2, total overseas revenue was RMB 673 million up 52% year-over-year and 13% quarter-over-quarter. Overseas revenue as a share of group revenue rose 10 percentage points year-over-year to 27%.

The acceleration in year-over-year growth was mainly driven by strong momentum from our new MENA products as well as the consolidation of overseas dating products acquired last year. Sequentially, overseas revenue grew at a double digit rate.

Mainly reflecting the natural recovery in the MENA region following the seasonal Ramadan low. Along with new gamified features on the product side and theme events tied to seasonal occasions and the World Cup on the operational side.

Both of which lifted user engagement and paying propensity and drove revenue growth across the board. Within the portfolio, SoulChill's progress moderated relative to our initial timeline, due to external factors, including its removal from the Turkish app store and the ongoing geopolitical tensions in the Middle East.

Since the beginning of the year, however, the product is gradually emerging from its Q1 low and is showing a clear recovery trend. Notably, the 2 newer products in MENA, demonstrated strong growth momentum.

With their combined revenue in the second quarter already approaching the scale of SoulChill. And alongside this high growth, profitability has also continued to improve.

Yahalan achieved a net income breakeven for the first time in Q2. Ammar, having turned marginal contribution positive earlier this year, has seen its net loss continue to narrow quickly on the back of a rapid revenue growth and operating leverage.

This marks a new stage of our MENA strategy. We moved from a social-driven single-product model to a multi-product matrix working in concert.

On the other hand, our developed market dating business Has maintained high quality expansion in Q2. In the first half of the year, Happn improved pay conversion and ARPU through iterating on its membership benefit and precision targeting, driving continued revenue growth both year-over-year and quarter-over-quarter.

Building on its strong position in its core European markets Happn began exploring neighboring markets starting early this year and has seen encouraging early results. The current user and revenue performance in these new markets fully validates their long term growth potential and lays a solid foundation for the next phase of scaled expansion.

Overall, in the first half of the year, while our domestic business continued to weather external headwinds, our overseas product portfolio has shifted from being supported by a single product to achieving balanced diversified growth. This validates the effectiveness of our sustained investment in globalization over the past several years and has given the group a healthier revenue structure and stronger resilience.

In the second half of the year, we will continue to strengthen the foundation of our domestic cash cow business through product innovation and refined operations. While advancing the scaling of our overseas business.

So as to create long term value for both users and shareholders. This concludes my remarks today.

Now let me pass the call over to Cassie for the financial review. Cassie, please.

Thanks, Jianhua and Ashley. Hello, everyone.

Thank you for joining our conference call today. Now let me take you through the financial review.

Total revenue for the second quarter 26 was 2.49 billion down 5% year-on-year but up 4% quarter-on-quarter. Non GAAP net income attributable to the shareholders of the company was RMB 249 million.

Compared to a net loss of 96 million renminbi in the same period of 2025. And 329 million renminbi in the previous quarter.

Looking into the key revenue items for Q2. Total revenue from value added services for the second quarter of 26 was RMB 2.44 billion, down 5% year-on-year but up 4% quarter-on-quarter.

On a geographic basis, PRC Mainland value-added services revenue was RMB 1.77 billion, down 17% year-over-year. The decrease was primarily due to continuous tax scrutiny on some of Momo's agencies combined with weak consumer sentiment.

Due to broader macro pressures. And to a lesser degree, a decline in paying users on Tantan.

PRC mainland SaaS revenue for Q2 26 was up 1% quarter-over-quarter due to recovery from low seasonality. VAS overseas revenue for the second quarter of 26 reached RMB 664.9 million up 51% year-over-year.

Driven by strong growth momentum from our new MENA product as well as the consolidation of overseas dating products acquired last year. Sequentially, overseas VAS revenue rose 12% driven by a recovery in the MENA region after its seasonal low alongside product and operational initiatives.

Turning to cost and expenses. Non GAAP cost of revenue for the second quarter of 26 was RMB 1.6 billion, same as the year ago period.

Non GAAP gross margin for the quarter was 35.8% compared to 38.8% from the year-ago period. Q2 cost of revenue included 56.8 million renminbi in film production expenses.

Excluding this item, gross profit margin would have been 38.1%, a decline of less than 1 percentage point from Q2 last year. The decrease was primarily due to payment channel cost, rising as a percentage of revenue.

This resulted from a geographic mix shift toward international operations, which carry higher payment channel fee structure compared with our domestic businesses. Although Momo raised agency payout ratio to mitigate impact from tax scrutiny, improved gross margins in the MENA region coupled with larger revenue contribution from higher-margin overseas dating products offset the margin pressure stemming from Momo's operations.

As a result, total revenue share cost as a percentage of revenue remained stable from the year-ago period. Non GAAP R&D expenses for the second quarter were RMB 173.2 million compared to RMB 172 million for the same period last year.

Non GAAP R&D expenses as a percentage of revenue was 7%, same as Q2 last year. We ended the quarter with 1.4 thousand total employees compared to 1.26 thousand from a year ago.

The R&D personnel as a percentage of total employee for the group was 56% compared with 58% from Q2 last year. Non GAAP sales and marketing expenses for the second quarter was RMB 380.4 million compared to RMB 439.7 million in the same period last year, representing a 15% and 13% of total revenue, respectively.

The year-over-year increase in sales and marketing expense was mainly attributable to a greater marketing spend on our new overseas app. This increase was partially was partly offset by ongoing cost controls in our Mainland China operations, both Momo and Tantan cut marketing spend while SoulChill temporarily pulled back.

On channel investments amid external challenges. Non GAAP G&A expenses was RMB 75.1 million for the second quarter compared to RMB 72.3 million for the same period last year.

The increase was primarily driven by 11 million renminbi in exchange gains on euro-denominated deposits. Stemming from currency fluctuations in Q2 last year.

Compared with a 1.8 million renminbi exchange loss in the current quarter. Non GAAP G&A expenses as a percentage of revenue was 3%, largely unchanged from Q2 last year.

Non GAAP operating income was RMB 276.7 million, representing a margin of 11.1% compared with RMB 447.7 million renminbi and a margin of 17.1% from Q2 25. As noted earlier, non GAAP cost of revenue included film production related expenses.

Excluding this item, non GAAP operating income from our recurring business would have been RMB 333 million with a margin of 13.4%. Non GAAP OpEx as a percentage of total revenue was 25%, an increase from 22% from the year-ago period.

Now briefly on income tax expenses. Non-GAAP income tax expenses was RMB 71.2 million for the quarter with an effective tax rate of 23%.

In Q2, the company accrued withholding income tax of 18.4 million renminbi which is 10% of the undistributed profit generated by our WFOE without the withholding tax our estimated non GAAP effective tax rate was around 17% in the second quarter. Now turning to balance sheet and cash flow items.

As of June 30, 2026, Hello Group's cash, cash equivalents, short term deposits, long term deposits, short term investments, and restricted cash totaled 8.54 billion RMB compared to 8.68 billion as of 12/31/2025. Net cash provided by operating activities in the second quarter of 26 was RMB 642 million.

The difference between operating net cash and non GAAP net income was mainly due to the fact that a substantial amount of Q1 receivables were collected in Q2. Accrued interest and some noncash items, including film production costs, and withholding tax.

Lastly, on business outlook. We estimate our third quarter revenue to come in the range from RMB 2.4 billion to RMB2.5 billion.

Representing a decrease of 9.4% to 5.7% year-over-year. This is based on the assumption that at midpoint, on a year-over-year basis, revenue from our Mainland China business will decline by high-teens percentage-wise while overseas revenue is expected to grow by high-thirties percentage-wise.

Please be mindful that this forecast represents the company's current and preliminary view on the market and operational conditions which are subject to change.

That concluded our prepared portion of today's discussion. With that, let me turn the call back to the operator to start Q&A.

Operator, please. Thanks.

Just a quick reminder before we take the questions. For those who do not speak Chinese, please ask your questions in Chinese first,.

Followed by English translation by yourself. Operator, we are ready for questions.

Let me translate myself. Hi.

Good evening. Thanks, management, for taking my question.

In our last earnings call, management talks about the decline in domestic revenue in the second half would be notably narrowing versus the first half. However, when we look at the guidance, it seems the decline in Q3 is slightly widening versus the first half of the year.

May we know the key reason for the difference? Is it more due to the changes in external macro environment or assessment of our operational strategy.

And in response to the situation, what specific measures does the company have at the moment? Can management provide more color about the domestic revenue, and expenses in the second half?

Thank you.

Our revised outlook for the domestic business is mainly based on some new trends. That we have seen in the Momo live streaming revenue.

Since entering the second half of the year, the data shows that the revenue pressure is concentrated mainly in consumption downgrading among high spending paying users. Although the vast majority of these users in this cohort remain active on our platform, but they have become more cautious about spending.

and average ARPU has zig declined significantly. Based on our targeted interviews with those cohorts of users by our VIP team, We found out that the core driver behind this is weaker wealth expectations.

Among high net worth individuals amid macro volatility. Which has dampened spending on social entertainment.

But by contrast, mid tier and long tail users as well as the broad from the supply side has remained relatively stable. Based on this view, we will take a tiered operating approach starting with top tier users we will make full use of Momo's strength as a social platform.

Focusing on deepening social connections rather than simply pushing more spending. And specifically, on the 1 hand, we will roll out light-weighted social interaction focused features And organize official offline events for high-paying users.

Further strengthening this group's stickiness to the platform and upgrading our VIP exclusive services And on the other hand, we will continue to provide high quality broadcasters with exclusive resources such as overseas training tours and short drama production. To constantly refresh content supply and sustain high value users' ongoing interest and engagement around top broadcasters.

Meanwhile, For mid tier and long tail users, we will focus on low barrier, high retention scenarios such as audio based interactive features and social mini games. Using richer use case offering to stabilize the revenue base generated by this user group.

And for the financial figures, I will hand it over to Cassie.

Sure. Let me give you a quick update on how we currently think about the domestic business in the second half of 26.

As you may see, our Q3 guidance implies roughly a high teens year over year decline for the domestic business widening from a 17% year-over-year decline rate. And that underperforms our earlier expectation that in the second half, business could see year-over-year decline rate narrowing down from first half.

The key reason Q3 is coming in below our quarter ago expectation is that as Tang Yan mentioned just now, the domestic business has been facing greater pressure than we anticipated. Particularly on user spending sentiment among the very top cohort of users in live streaming showrooms.

With regards to the trajectory from Q3 onward, As in the previous quarters, I would still frame our view around 3 areas that we closely monitor. First is overall spending sentiment.

What we have observed since late Q2 is a meaningful reduction in spending from the top cohort of users, These are the users who historically contribute a disproportionate amount of revenue in the showrooms. And many of them spend in the hundreds of thousands during the year on a monthly basis.

In Q3, the reduction in spending from this top-of-pyramid users became more pronounced. Our current assessment is that this reflects continued pressure on the financial outlook of these so called high net worth users.

Which is in turn affecting their discretionary and entertainment spending. So from a macro spending sentiment perspective, we may continue to see a headwind as we move into Q4.

And the second factor is the regulatory environment. At this point, we are not seeing any significant incremental regulatory pressure and we expect the environment to remain relatively stable.

So this is not a major driver of the change in our outlook. The third area and 1 where we continue to see encouraging signs is the underlying health of the platforms.

Our DAU and engagement metrics remain relatively resilient. And, importantly, more pain users Momo's paying user base in Q2 increased meaningfully from Q1.

There is certainly some seasonality in that sequential improvement. However, we believe it also reflects relatively healthy and resilient user ecosystem.

So, in other words, the weakness we are seeing in revenue is not primarily a function of users leaving the platforms or a deterioration in engagement. it is much more concentrated in the spending behavior of the highest net worth users.

These users are still active and still paying; they are simply spending less. So if you put these factors together, I would say the biggest change in our view versus the beginning of the year versus at the beginning of the year is the macro spending environment.

Particularly among the top cohort of users. For that reason, our earlier expectation for a meaningful narrowing of the year over year decline in the second half should be adjusted downward.

At this point, given the uncertainty around the environment, I think it would be appropriate for us not to put a specific Q4 number out there. What we can control is continuing to strengthen the fundamentals of both Momo and Tantan, improve the user experience and engagement across the platforms, and make the business more efficient.

On the cost side, we do see opportunities to further optimize our operating expenses. This includes continued discipline around personnel costs, As Jianhua mentioned in his prepared remarks, additional opportunities to optimize sales and marketing spending in the domestic business.

So while the revenue environment is more challenging than we anticipated at the beginning of the year, we are taking a more balanced approach, remaining focused on improving the underlying health of the platforms while at the same time actively managing the cost structure. This should allow us to mitigate some of the pressure on the bottom line even in a more challenging revenue environment.

Now back to Ashley for more questions.

Operator, next question, please.

[Inaudible] My question is on the overseas business. Management mentioned that combined revenue of Yahalan and Ammar in the same quarter was already close to that of SoulChill.

While their profitability continue to improve, As the revenue mix of the social entertainment social entertainment business in the MENA region becomes more diversified. Expect the company's performance in the region to become more stable and resilient going forward.

And how will the structure shift affect the overall margin profile of the MENA business? And can management also share whether there has been any update to the company's full year outlook for the overseas business?

Thank you.

Based on the current momentum, the combined revenue of our 2 new MENA products will surpass SoulChill in Q3. Both products are still maintaining healthy, strong growth, so we are confident that we can grow them into social products of a scale comparable to SoulChill.

In addition, these 3 products differ in gameplay target user base, and regional focus. Which will make the group's MENA business more diversified and strengthen both our resilience to external risk and our agility in capturing growth opportunities.

Once the new products are established, even if 1 of them comes under short term pressure from external regulatory or geopolitical factors. The others can still support the stability of overall regional revenue.

We also believe the market for this type of audio video social product is not limited to MENA. A diversified product portfolio gives us stronger capability to expand into other regions than a single product would.

On profitability, both are improving quickly. Yahalan has already crossed breakeven.

And Ammar is likely around half a year away. But both products' gross margin and contribution margin are improving rapidly and steadily.

We believe both products will contribute to group profit next year. As for our overseas revenue outlook, I will leave it to Cassie.

Okay. Before giving a quantitative outlook, let me briefly walk through the 3 key components of the overseas business.

First, on SoulChill, our flagship product in the MENA region. The business has underperformed our original expectations somewhat.

There were 2 main factors behind that. 1 was the removal of the app from the App Store in Turkey earlier this year.

And the other was the regional conflict that started in April, which had an impact on the operating environment in parts of The Middle East. The encouraging part is that as you can see from Q2 results, both revenue and traffic for SoulChill have already recovered from the low point in Q1.

We are continuing to see gradual sequential improvement as we move through Q3. And hopefully Q4 as well.

So SoulChill is somewhat below our initial expectation for the year, but the trajectory has been improving over the past couple of quarters. The second piece is Yahalan and Ammar, As Tang Yan and Jianhua mentioned, the outperformance of these 2 businesses has partially compensated for the shortfall in SoulChill.

In Q3, the combined revenue from Yahalan and Ammar has already exceeded that of SoulChill. Both businesses are still growing at a rapid pace.

While we are also seeing a meaningful improvement in their bottom line performance. So we believe these 2 businesses can continue to make progress and become increasingly meaningful contributors to both the top line and bottom line of the overseas business going forward.

The third piece is the dating and membership subscription businesses. Which continue to perform well.

Some of the acquired brands, including Happn, have been making good progress in new markets, including Korea, Taiwan, and the UK. At the same time, we are taking a fairly disciplined approach to investment in these new markets.

We do see opportunities to increase marketing investment to accelerate top-line growth. But we also want to maintain a healthy ecosystem and a healthy bottom line for the newly acquired dating business.

More importantly, we want to make sure that we are building the ecosystem in these markets in a sustainable way rather than simply pushing for short term user or revenue growth. So there is naturally a balance between the pace of top line expansion and the level of investment that we are willing to pour in within a relative relatively short time frame.

In other words, we would rather take it right than take it fast. So if you wrap up these if you wrap all these up and try to look at the takeaway as a whole, I would say that SoulChill perhaps moved a little bit slower than we expected a quarter ago.

We do have the potential to maybe compensate it by moving faster on expanding the other 2 MENA apps and the dating app. But given that we wanted to balance top line growth and bottom line target, we probably will not push the gas pedal harder than we previously planned.

Therefore, my current view is that the original 3 billion renminbi target for overseas revenue for 2026, at this point, looks a little bit of a stretch. We would rather take 100 or 200 million down from that target.

Maybe back to Ashley to take 1 last question.

Yeah. So in the interest of time, let's just take 1 last question before we close the line.

So thanks, management, for taking my question. My question is on the profit outlook.

As management has a weaker revenue outlook for domestic business in the second half. How should we think about the impact on the group's overall profitability and the earnings performance in the second half and going forward?

Thank you.

Okay. I will take that question.

Profitability. Maybe let me start with the group top line first.

Because that is the first area where our view has changed. As I mentioned back in June, during our Q1 conference call, at that time, we expected the group revenue to decline slightly year over year.

Perhaps by a couple of percentage points. Given the additional pressure we are seeing in the domestic business in the second half, we currently expect the full year group revenue decline to be somewhat larger, maybe to the mid-single-digit range.

The second factor affecting profitability is investment in the 2 movies. With both movies now released, we have recognized roughly somewhere around RMB 60 million of additional losses.

In Q2. That obviously created some incremental pressure on the full year bottom line.

Relative to our earlier expectations. Having said that, we continue to see opportunities to offset some of this pressure through cost management and improving operating efficiency.

In particular, we are looking at further optimization of personnel costs as well as sales and marketing spending. Especially in the domestic businesses.

So putting these factors together, the additional pressure on the top line does make it more challenging to achieve our original margin target. Which was I think we pointed toward a low teens adjusted operating margin for 2026.

But at this point, we still believe that margin target remains achievable provided that we execute well on the cost side and continue to improve operating efficiency. Back to Ashley to wrap up the call.

I think that is all the time we have, and thank you for joining us today, and we will see you next quarter. Thank you.