IQ

Thank you for standing by, and welcome to the iQIYI first quarter 2026 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by number one on your telephone keypad. I would now like to hand the conference over to Ms. Chang You, IR Director of the company. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining iQIYI's first 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, Ms. Ying Zeng, our Interim CFO, Mr. Xiaohui Wang, our Chief Content Officer, Mr. Youqiao Duan, Senior Vice President of our membership business, and Mr. Xianghua Yang, Senior Vice President of International and over online game 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. Thank you for joining us today. The convergence of breaking breakthrough AI and a supportive domestic regulatory landscape is fundamentally reshaping entertainment and creating incredible opportunities for iQIYI. Let me share iQIYI's value proposition in this new area from three perspectives. Reinforcing our core today, igniting new growth engines, and building for the long term. Let's start with the first perspective, reinforcing our core fundamental foundational strength. Premium content remains the cornerstone of our strategy. In Q1, we reaffirmed its compelling appeal for audiences. Our diverse lineup of hit dramas, including The Punishment 2, Fa Zui Er, Born to Be Alive, Sheng Shu, Pursuit of Jade, Zhu Yu, and How Dare You!?, Cheng He Ti Tong, secured our dominant position in the core drama category per Enlightent data.

Moving forward, our commitment to content quality is stronger than ever, designed to deliver expert experience that profoundly connect with viewers. This focus is revitalizing our core operations, evidenced by the sequential growth in membership revenue. We are also highly encouraged by the supportive domestic regulatory landscape, which is accelerating the content approval progress and driving stronger capital efficiency. Importantly, these regulatory policies are unlocking innovation across new formats. This includes short-form dramas, Zhong Ju. Typically, 15-25 minutes per episode with flexible episode counts and internet feature films, Wang Wo Gu Shi Pian, which are limited to three chapters of 60 minutes each. These formats are not only shorten production cycles and lower capital barriers, but also attract a broader pool of creative talent, enabling more innovative storytelling than traditional long-form content.

Furthermore, they are perfectly for AI, perfectly suited for AI integration, automatically enriching our portfolio and maximizing our ROI. Looking ahead, we plan to launch over 100 short-form dramas in 2026, while steadily building our internet feature film slate. By continually delivering premium long-form content while strategically expanding into new formats, we are reinforcing our foundational strengths. Importantly, this expansion is efficient, allowing us to capture new opportunities without putting additional pressure on our overall content costs. Second, we are igniting new growth engines. Among our emerging business segments, our overseas business has established it as a proven second growth driver. In Q1, overseas membership revenue surged by over 40% annually. This success stemmed from a highly differentiated market positioning compared to global peers. We focus on premium Asian content tailored primarily for young female demographics.

Within our Asian content portfolio, K-dramas, whose global influence continue to rise, serve as the key catalyst for our international expansion, complemented by our growing slate of local content. Geographically, we are anchoring our presence in Southeast Asia, while also expanding into high-growth markets in the Middle East and Latin America, with Brazil as a key focus. We are also deeply integrating AI across our global operations to drive efficiency. Parallel to our market expansion, we are maximizing IP value through our experience business, expanding our content value from online to offline, and extending the IP lifecycle. For IP-based consumer products, we are driving deeper user engagement through merchandising, while empowering popular IPs to generate both broadcasting window and long-tail monetization. Finally, our foraying into offline experience is yielding encouraging results.

Our first iQIYI Land in Yangzhou has garnered solid initial feedback, allowing us to rapidly accumulate operational experience to apply to other locations. Thirdly, we are laying a robust foundation for long-term growth, powered by AI and our decentralized platform. AI is breaking down the historic barrier that once made quality content costly, time-consuming, igniting explosive growth in both creators and content value. Anticipating that this accelerating shift will soon outgrow the traditional centralized media platform model. We have strategically pivoted to build an upgraded and vibrant decentralized social media ecosystem. This will unlock substantial value. A decentralized ecosystem greatly expands content supply, allowing us to meet diverse demand at a whole new scale.

Creators will have greater opportunities to brainstorm and succeed, retaining full ownership of their IP and converting it into real attractive returns, while also cultivating private traffic, building loyal fan base, and gathering valuable data from direct user interactions. Meanwhile, for iQIYI originals, we are sharpening our focus on premium content, while the decentralized planning flow drives scale. Our original will serve as our signature offerings. Additionally, we are building a comprehensive support system so creators can focus purely on creativity. One key pillar at Nadou Pro, iQIYI's proprietary platform for studio-grade content Nadou Pro is powered by both public and self-deployed large models, but it goes beyond generic models. It's built upon our years of technology infrastructure and deep content expertise.

We transform years of industry know-how into AI agent, and then combine them with our core IP and digital assets to deliver accessible platform Nadou Pro offers one-stop services from content creation to operations and commercial collaborations. Beyond Nadou Pro, we offer professional training and workspaces. We also facilitate financing solutions, connecting talent with capital from our own funds and external investor networks. Now, let's explore what defines iQIYI's long-term investment value and how we are uniquely positioned to lead in the AI era. Our confidence rests on two core pillars. First, on how to replicate competitive. We possess a unique blend of deep content expertise and a cutting-edge technology. We have a proven DNA of innovation from pioneering genre-specific theater brands to now leading the AIGC transformation in the industry. Crucially, we possess a vast high-quality IP library that is essential in the AI era.

Alongside a high engaged user base that we are committed to serving with excellence. Second, a long-term structural enhancement to our business economics. AI is poised to address major industry pain points, expanding our margins, and maximizing capital efficiency. At the same time, our decentralized platform will boost content diversity to capture a broader audience base, while iQIYI originals focus on crafting enduring premier IPs. Together, these initiatives fuel our diversified monetization system, expanding membership, advertising, and offline experiences, unlocking IP value across both domestic and global markets. Before we dive into Q1 details, I want to emphasize our core philosophy, the true power of technology is to empower humanity, not replace it. It will serve audiences with richer, deeply resonate content. It will empower creators to overcome human limitation, turning their boldest inspiration into reality with absolute efficiency and freedom.

Ultimately, it will elevate the entire industry, unlocking new avenues for growth and helping more creators, especially young talent, realize both their creative vision and commercial value. Let's move on to the detailed performance in Q1. Let's start with content. We are pioneering AI-driven storytelling and talent cultivation. In Q1, we unveiled Peter Paul and iQIYI AI Theater, featuring a suite of 16 titles across science fiction, thriller, wuxia, and fantasy genres, each running 11-20 minutes. Nadou Pro powered key production process from capture, design, and scene setting to storyboarding, demonstrating AI transformative potential in professional content creation. In terms of our long-form drama performance, The Punishment II became our second franchise with two seasons exceeding the 10,000 iQIYI popularity index. Pursuit of Jade also surpassed 10,000, while our in-house produced custom drama, How Dare You!?, exceeded 9,000.

Both Pursuit of Jade and How Dare You resonated strongly with young female audiences, further solidifying our connection with these key demographics. Furthermore, we secured our leadership in realistic and suspense genres. Born to Be Alive earned the highest Douban rating among all domestic drama releases in Q1. The Devil Between Us II, and our own suspense theater brand, was also well received by users. For variety shows, our in-house production, Wander Together, [Non-English content], topped Enlightent market share ranking for the first quarter. For animations, we expanded our offering with four key original titles. Among these, the long-running The Great Ruler, [Non-English content], continued to captivate audiences, and season two of How Dare You achieved a strong synergy with its drama series adaption.

For our micro dramas, original production contributed over half of revenue from this category in Q1. AIGC has emerged as a powerful driver for content releases. In Q1, we launched more than 3,000 AI-generated micro dramas, further enriching our offerings. Finally, for micro animation and AI native format, we are rapidly expanding our library, which feature over 14,000 titles as of quarter end, with viewership continuing to rise steadily. Next, let me share our Q2 content pipeline. Our drama serials lineup features a rich variety of titles, from historical epics to niche genres, including Echoes of a Thousand Moons, [Non-English content], Bloom Lion, Born with Luck, The Heir, [Non-English content], and Archives: The Nanyang Mystery, Nanyang Dang An.

Among the already released titles, Born with Luck gained wide popularity, driven by its innovative storytelling, combining comedy and mystery, and surpassed iQIYI popularity score of 10,000, becoming the third title to reach such mark this year. For films, our pipeline includes original online movies, The Same Trick, Zuiue, Wind of Death, Man Lizhi, and The Counterfeit, Wei Chao Zhong An. For licensed titles, we will release theatrical hits on our platform like Pegasus 3, featuring Shang, Awaking of Insects in Silence, Jing Zhe Wu Sheng, and The Blades of the Guardians, Biaoren, along with the online film, The Legend Hunter, Xiang Long Ju.

For variety shows, we will continue to captivate audience with established franchise, such as Fight House Season 6, Become a Farmer Season 4, The Rap of China 2026, and Yes I Do Season 6, Xi Huan Ni Wo Ye Shi. While launching new IP like Voice of the Youths, Chao Ren Qing Chun De He Chang. For micro dramas, we have a diverse slate schedule, including Perfect Match, Deng Duili, San Di Yu, Zhong Yi Ni, One Night Pearl, Bai Ye Wei Qing, Phoenix Rules, Ou Scan, Man Zha Chou Huang, and Spring Rain of Phoenix, Feng Ren. For animations and children's content, we will continue the long-running Against the Gods, Ni Tian Xie Shen, and then debut a localized adaptation of the BBC classic, [I'll Tell You With]. Now, turning to membership business.

Revenue growth sequentially, primarily driven by premium titles, including Pursuit of Jade, The Punishment 2, How Dare You!?, and The Devil Between Us. Operationally, our refined upselling strategies and value-driven membership options successfully encouraged users to extend their plans, driving a year-over-year increase in average subscription duration for monthly subscribers this quarter. Additionally, our high-tier V7 membership continued to scale, driven by a highly differentiated value proposition that features free express package. Moving on to advertising business. For brand ads, revenue contribution from targeted dramas recorded double-digit annual growth, with titles like Born to Be Alive, How Dare You!?, and Pursuit of Jade gained strong recognition from advertisers. Sector-wise, food and beverage, internet services, and e-commerce all achieved double-digit annual growth. We are expanding our advertising appeal across new content formats.

For example, we partner with leading advertisers to co-produce stream of content for micro dramas, creating new avenues for brand integration. On the technology front, AI continue to empower our advertising operations. We leverage Nadou Pro to produce marketing materials and combine AIGC capabilities with our IPs to generate high-quality ad content. During Q2, our focus will be on maximizing ad sales across premium variety shows, dramas, and traditional display ads. We're further enhancing monetization on large screens. Concurrently, we will continue to leverage AI to optimize advertising efficiency. For performance ads, the advertiser mix is healthier and more balanced. Revenue from small and mid-sized advertisers recorded strong annual growth with sustained improvements by sector. Internet services, e-commerce, and mini games delivered outstanding quarterly results. Additionally, monetization efficiency for micro drama improved as well. Measured by revenue per inventory unit increased by over 60% year-over-year.

For the rest of the year, our strategy for performance ad focus on four key areas. First, expanding our client base across high growth verticals, including internet services, short-form videos, mini-games, and AI tools. Second, capturing greater market share during peak window, such as major e-commerce festival. Third, enhancing monetization efficiency through AI-powered capabilities. Finally, tapping into additional ad budgets by harnessing a more diverse content ecosystem and upgraded ad placement system. Moving on to our business performance in regions outside of mainland China. Membership revenue increased by over 40% annually in Southeast Asia markets. Membership revenue from Indonesia grew by over 80% annually. Meanwhile, Portuguese and Spanish-speaking regions demonstrated robust growth, with membership revenue from Brazil and Mexico both grew by over 100% annually. Average daily subscribers reached a new high. The global influence of C-dramas continue to expand.

Notably, Pursuit of Jade lead last performance across multiple markets and secure top position on our international platform viewership rankings. It topped the Google Trends among all C-dramas broadcast during the same window in 15 markets, and set a record as the most searched Chinese drama on Google. Beyond C-dramas, we are scaling original local production to elevate the appeal of our content library, particularly in key Southeast Asia markets in Q1. Our first original Thailand show, Running Man Thailand, delivered exceptional results, setting multiple new records for variety shows on our international platform. Google Trends confirmed its position as the most popular paid variety show over the past three years, and the title earned strong recognition from advertisers. Meanwhile, our first original Indonesian drama is on track to premiere in Q2, marking a further step in our localization journey.

Our overseas micro drama business also gained momentum with growing revenue contribution fueled by both licensed and original content. Our original production pipeline consistently delivered new releases across multiple languages, including English, Thai, Korean, and Indonesian. Our experience business. We focus on two core areas: IP-based consumer products and iQIYI Land. For IP-based consumer products, our self-operated merchant apps deliver solid performance with collectible cards from Pursuit of Jade, setting a new sales record in this category. For offline experience business, our first iQIYI Land in Yangzhou performed in line with expectations and was highly acclaimed for its scenery design, immersive experiences, and technology-enabled interactions. Going forward, we will continue refining operations and introducing new creative offerings to encourage repeat visits and on-site consumption.

Furthermore, we are leveraging our experience gained in Yangzhou to drive through development of new location in Kaifeng and Beijing, which are progressing smoothly. Now, I would like to hand it to Ying for the financials. Thank you.

Thanks, Mr. Gong, and hello, everyone. Let me walk you through the key numbers for Q1. Total revenues were RMB 6.2 billion, down 8% sequentially. Membership services revenue reached RMB 4.2 billion, up 2% sequentially, driven primarily by our diverse lineup of hit dramas. Online advertising revenue was RMB 1.2 billion, down 8% sequentially, primarily due to seasonality. Content distribution revenue reached RMB 358.7 million, down 54% sequentially, primarily because less number of dramas we distribute to third parties. Other revenues were RMB 426.7 million, down 22% sequentially. Moving on to costs and expenses. We adopted a disciplined strategy in Q1. Content cost was RMB 3.7 billion, down 2% sequentially. Total operating expenses were RMB 1.2 billion, down 10% sequentially.

Moving on to cash flow. Net cash provided by operating activities were RMB 186 million, reflecting some encouraging early signs in financial performance driven by our new business initiatives. Turning to bottom line and cash balance. Non-GAAP operating loss was RMB 149 million, and the non-GAAP operating loss margin was approximately 2%. As of the end of Q1, we had cash equivalents, restricted cash, short-term investments and long-term restricted cash, including prepayments and other assets at a total of RMB 4 billion. The sequential decrease in cash balance was primarily due to the repurchase of our 6.5% convertible senior notes due 2028, which reduced our outstanding debt, further strengthening our capital structure.

At quarter end, the company had a loan of $636.6 million to PAG, recorded under the line item of prepayments and other assets. We remain committed to delivering shareholder value over the long run. In March, we announced a proposed listing on the main board of the Hong Kong Stock Exchange and our first share repurchase program of up to $100 million effective through September 2027. Up to now, we have repurchased a total of approximately 6.45 million ADSs for a total cost of $8 million. For detailed financial data, please refer to our press release on our IR website. I will open the floor for Q&A.

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. We ask that you please ask your question in Chinese first, and then translate the question into English. In the interest of time, please limit to one question per person. If you would like to ask further questions, you may press star one again to rejoin the queue. Your first question comes from Xueqing Zhang with CICC. Please go ahead.

[Non-English content]. Thank management for taking my question. My question about Nadou Pro. The company previously launched Nadou Pro, an AI agent for film and television content creation. Could management share more details about the recent progress of Nadou Pro and any specific examples of its practical applications? In addition, how does management view the future commercialization prospects for Nadou Pro? Thank you.

[Non-English content]

The CEO Gong Yu is taking this question. Nadou Pro is iQIYI's proprietary platform for studio-grade con-production. It is powered by public large models, but it goes beyond generic models. It's actually built upon our years of tech infrastructure and deep content expertise. For example, we have transformed years of industry know-hows from key areas such as screenwriting, filming, and post-production into AI agents and combined them with our core IP and digital assets to deliver accessible platform capabilities. Creator tools previously used only within iQIYI, such as the script evaluation and shot-based reference search, have now been incorporated to Nadou Pro.

[Non-English content]

Nadou Pro has been available to all creators across the industry since April 20th. We now currently have over 10,000 active creators on board, ranging from traditional pro-production companies to independent creators.

[Non-English content]

Content productions cover a wide variety of formats including the long-form dramas, micro dramas, micro animation, and short videos, also for some commercial, ad content.

[Non-English content]

Among which, about 100 of them are, iQIYI original titles, projects.

[Non-English content]

Nadou Pro actually recently launched a creator community as a platform for creators to interchange experiences and form some feedbacks and that will feed internal development for the upgrades in the coming up versions. This platform will feature some commercial matchmaking features upcoming next. These will empower the creators with the full cycles from content creation to commercial monetization.

[Non-English content]

In addition, the international version of Nadou Pro is in development and will be online soon.

[Non-English content]

Regarding Nadou Pro's commercial prospect, it will serve as a standalone product to boost actually monetization capabilities. It will continue to reiterate and continue to improve the development and also to roll out upgraded version to create more better features.

[Non-English content]

Thank you.

Thank you. Your phone comes from Vicky Wei, Citi please.

[Non-English content]

Thanks management for taking my question. Will management share some latest progress about the industry anti-piracy updates? Thank you.

Thanks, Vicky. We'll invite, our Chief Content Officer, Wang Xiaohui, to take this question. Please go ahead.

[Non-English content]

For the anti-piracy situation, we actually have observed very positive progress. Around the end of April and early May, the National Radio and Television Administration launched a targeted campaign to crack down on the pirated distribution of drama content across illegal websites, browsers, search engines, and cloud storage services. The industry regulators actually attach great importance to this issue and have established clear requirements for the prevention and handling of online copyright infringement, including some of the initiatives.

[Non-English content]

To give us, give you guys some examples. For example, we established a rapid response mechanism for infringement content, enabling real-time communication between copyright owners and platforms to ensure swift response and removal.

[Non-English content]

Second, the new policies and regulations actually enforce dual responsibilities for platforms and local authorities, requiring provincial and municipal bureaus to fulfill their local management duties. For example, enhancing monitoring and improve processing efficiency. The platforms must resolve and remove infringing content within 24 hours of receiving a report or notice. For newly released dramas, hit series, or key titles, the removal must be completed within four hours.

[Non-English content]

Third, building a coordinated enforcement mechanism, regularly reporting on infringement status, takedown rates, and typical cases. For repeat offenders who will be publicly named and handed over to copyright and police authorities for investigation and prosecution.

[Non-English content]

This targeted campaign will be integrated with routine regulatory enforcement. Looking ahead, the National Copyright Administration's Sword Net 2026 anti-piracy special campaign has designated online copyright infringement and piracy as its top priority, signaling even stricter enforcement measures.

[Non-English content]

Currently, we're happy to see the efficiency of handling infringement has improved significantly. We believe the piracy issue will be substantially mitigated in the future. We believe strong copyright protection safeguards the commercial interests of all industry stakeholders, boosts the willingness to invest in high quality content creation, and foster a virtuous cycle of content supply. For iQIYI, we will continue to upgrade our technology and operational mechanism to co-build a healthy copyright ecosystem, ultimately helping to drive user growth and revenue of our long form video business. Thank you.

Thank you. Your next question comes from Jenny Yuan with UBS. Please go ahead.

[Non-English content] Let me translate myself. Membership business saw sequential recovery in the first quarter. In particular, overseas business delivered a robust growth momentum. How does management view the sustainability of this improving trend? How should we think about the membership business outlook into second quarter and beyond? Thank you.

Thank Jenny. We'll invite the Senior Vice President of Membership business to take on this question. Go ahead, please.

[Non-English content]

In Q1, driven by a strong slate of premium content and refined operational strategies, membership revenue delivered sequential growth in the first quarter.

[Non-English content]

We have a rich content pipeline for Q2. A number of recently launched titles actually have performed well. Noticeably, Born with Luck surpassed 10,000 on iQIYI popularity index, powered by a distinct suspense but comedy narrative style. In addition, we have also an expanded slate for the second quarter, including the long-form dramas, for example, Echoes of a Thousand Moons, The Epic of Milu, The Heir, for variety shows, we have Hahahahaha Season 6, Become a Farmer Season 4. We believe these content will effectively reach a broad membership base.

[Non-English content]

Looking ahead, for Q2, we are looking at our operations and the sales priorities. For example, we're focusing on reactivating dormant members, optimizing variety show schedules to offer more content for members, and expanding large screen membership via joint operating initiatives with smart TV manufacturers. Also leveraging the June 18 E-commerce Festival to boost annual and bundled memberships. Together, we believe these efforts will expand our subscriber base and expand subscription cycles.

[Non-English content]

Looking ahead, as the stability and consistency of our premium content pipeline continues to strengthen, and coupled with our ongoing optimization of our membership operations, we believe our membership business will maintain a steady development trajectory. Thank you.

Thank you. Your next question comes from Thomas Chong with Jefferies. Please go ahead.

[Non-English content] Thanks management for taking my question. Congratulations on the fast growth of your overseas business. Just now, we talk about the fast growth in Southeast Asia. May I ask about our investment strategies in Southeast Asia market? Also, can you share about some of the differences or similarities in terms of the audience preference in domestic versus overseas? Thank you.

Thank you, Thomas. We'll invite our Senior Vice President of our global overseas business, Mr. Xianghua to take on this question. Please go ahead.

[Non-English content]

Okay, well, I will take this part in two segments. First, for the key markets. Currently our key markets are performing pretty well. For the Southeast Asia market have been growing quickly. For the market that's crucial for our Southeast Asia will continue to invest in countries such as Thailand, Indonesia, Malaysia, Vietnam, and Philippines. Now also for some of the emerging markets that's been also growing pretty well. For example, North America, Brazil, etc. We'll continue to invest in these areas and markets.

[Non-English content]

Let's start with content. For us, our key differentiation is our C-drama. That will continue to be our key in terms of getting users and especially for these content that's favorable and liked by young female users. In key areas that I mentioned earlier that will increase the promotional activities and marketing activities for these markets. For example, for user growth, using content to attract and also to retain users. For local content that will control and also have a good pace in terms of the content investment. Also in terms of the volume that we're investing into the local content. We also focus for the young female users like genre and content for local production.

[Non-English content]

For a third, for our matured markets, we'll continue to cooperate with telecom carriers and also e-commerce platforms to increase our membership scale. We will continue to use this strategy to replicate it to other markets that we're trying to explore. Thank you.

[Non-English content]

In terms of the user demographics for overseas audiences, is majority are focusing on the young female user who are under 40 years old.

[Non-English content]

For the user behaviors, for overseas market, each major market is a bit different. Some of them have higher user, you know, subscription cycles, better cycles, better retention than others. Overall speaking, the ARPU for overseas memberships are higher than the domestic ones.

[Non-English content]

Thank you.

Thank you. Your next question comes from Gigi Zhou with Guangfa. Go ahead.

[Non-English content] I will translate the question myself. Seeing iQIYI's efforts in Nadou Pro and fostering AI-driven creation and talent cultivation, how do we view the competitive landscape in the AI era? Thank you.

We'll have the CEO Gong Yu to take this question. Please go ahead.

[Non-English content]

For long, long-form video, we in the past, our challenge has been the investment scale or the amount that we invest in content is massive. The content cost is high, which means the investment risk is high, which leads to less number of titles that's been invested and rolled out for the industry. For any content that we invested, we typically focus on the premium head content. That was the cycle that we faced and the challenge we faced. For AI, it actually fundamentally improves this situation. Under the AI model, you know, the content cost is much cheaper.

The production cycle and production period is shorter, which means there are more titles, more number of titles will be rolled out and introduced in this industry. Because there are more content, there are more choices for users to enjoy. User scale will increase under the new AI model. Overall speaking, we think it's greatly beneficial for long-term video to improve its business fundamentals and economics, and also to attract more users to the platform.

[Non-English content]

To better accommodate this industry trend, you know, we built a number of initiatives. For example, the Nadou Pro we discussed and also the iQIYI account, which means the users can upload their content to our platform. Under the revenue share model, they will have the opportunity to introduce their content to more users to enjoy and to increase their revenue performance and also monetization capabilities. Under this whole backdrop, we believe the content cost will be lower and the number of video content will be increased.

[Non-English content]

If we look back for the past 10 years of the internet, and especially for short-form video and also micro drama in the recent years, we believe that technology is the fundamental driver in terms of the in-industry boom and industry development. We think, you know, under this AI era, we think it becomes a great opportunity for the long-form video to have better economics and better industry dynamics.

[Non-English content]

Thank you.

Thank you. There are no further questions at this time. I'll now hand back to the company for closing remarks.

Thank you, everyone, for participating on the call today. If you have further questions, don't hesitate to contact us. Thank you.

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.