Good day, ladies and gentlemen. Thank you for standing by. Welcome to Kuaishou Technology First Quarter 2023 Financial Results Conference Call. Please note that English simultaneous interpretation will be provided for the management prepared remarks. The English line will be in listen- only mode. Now I will turn the call over to Mr. Matthew Zhao, VP of Capital Market and Investor Relations at Kuaishou Technology. Thank you, operator. Good evening and good morning to everyone. Welcome to our First Quarter 2023 Financial Results Conference Call. Joining us today are Mr. Cheng Yixiao, Co-Founder, Executive Director, and CEO. We have Mr. Jin Bing, Chief Financial Officer. Before we start, we would like to remind you that today's discussion may contain forward-looking statements which involve a number of risks and uncertainties. Actual results and outcomes may differ materially from those mentioned in today's announcement and this discussion. The company does not undertake any obligation to update any forward-looking information except as required by law. During today's call, we are going to also discuss the search in non-IFRS financial measures for comparison purposes only. For a definition of non-IFRS financial measures and a reconciliation of IFRS and to non-IFRS financial results, please refer to our results announcement for the first quarter ended March 31st 2023, issued earlier today. For today's call, management will use Chinese as main language. A third-party interpreter will provide simultaneous English interpretation in the prepared remarks session and consecutive interpretation during the Q&A section. Please note that English interpretation is for convenience purposes only. In the case of any discrepancy, management statements in the original language will prevail. As otherwise stated, for all the currency mentioned, we are talking about renminbi. Now I hand the call over to Yixiao. Hello, everyone. Welcome to Kuaishou's first quarter 2023 earnings conference call. In the first quarter of 2023, we recorded group level adjusted net profit for the first time since our listing, a significant breakthrough in our profitability. This milestone was achieved on the back of a strong first quarter performance driven by new records in user metrics, revenue growth, and operating efficiency improvements. In addition to healthy growth in the DAUs and MAUs, we continue to grow a number of content creators, advertisers, and merchants on our platform while promoting a more integrated commercialization and traffic ecosystem. We also made substantial progress with our store-wide ROI strategy in driving end-to-end sales funnel conversion for both our advertising and e-commerce businesses. As a result of these accomplishments, combined with macroeconomic tailwinds, our revenue growth accelerated across all three business segments in the first quarter of 2023, outperformed their respective industries. Our effective initiatives to enhance monetization and operating efficiency while maintaining our pace of business growth played a pivotal role in our profitability turnaround, leading to adjusted net profit at the group level in the first quarter of 2023. I'll discuss our key business developments in the first quarter. User growth and ecosystem construction. In the first quarter of 2023, we set a new record for the scale of our user community by capitalizing on growth opportunities from some seasonal festivals, including Chinese New Year. Average DAUs and MAUs on the Kuaishou app reached 374.3 million and 654.4 million, representing year-over-year increase of 8.3% and 9.4% respectively. Average daily time spent per DAU on Kuaishou's app was 126.8 minutes, while total views on a short video and live streaming content increased by over 10% year-over-year, representing the highest growth rate on the total user spent. With a focus on both the efficiency and quality of user growth, we lowered our user acquisition and retention costs in the first quarter of 2023 on both a quarter-over-quarter and year-over-year basis. This was the result of our refined management and technological tools, as well as the automated placement on original high-quality short play and short video and live streaming content. Meanwhile, we further advanced our ROI on user acquisition by growing the proportion of users with a nine lifetime value. We reinforced the virtuous cycle in content supply and consumption by optimizing the content supply through our enhanced algorithm-based learning system targeting different user groups. We also continue to strengthen the social attributes and community vitality of our platform, key factors setting us apart from our competitors. By the end of first quarter 2023, payer mutual followers on Kuaishou averaged a community of 29.6%, representing 56.6% year-over-year. The Chinese New Year period has always been an important window for user growth and brand promotion. During this year's Chinese New Year, combined with the content and interaction, we provide users with dual venues to celebrate New Year on Kuaishou. On the interaction side, we offer a variety of interesting interactive features and social games. In terms of content, we provide a diverse range of Spring Festival related operator activities, including CCTV Spring Festival Gala, Kuaishou 1001 Nights Fan Gala, online festival fairs, Once A Few Spring Karaoke Party, and more. Among them, Kuaishou 1001 Nights Fan Gala and our self-produced program attracted more than 270 million viewers and received over 520 million likes in the first round. We launched a total of 55 short plays produced by Project Astral during the 2023 winter break period. Among them, Donglan Snow accumulated 100 million viewers with a record-breaking 40 hours of its launch. Our high quality short play content and growing brand awareness in this area have also been recognized by advertisers. In the first quarter of 2023, revenue from advertising sponsorship of Project Astral short players increased by more than 300% year-over-year. In terms on pan-knowledge content, we continue to enrich our inclusive educated program, New Knowledge Open Class, under our pan-knowledge IP, Kuaishou's new knowledge. We have collaborated with top-notch institutions such as Tsinghua University and Peking University to offer courses covering a wide variety of fields, including history, science and technology, economics and finance, attracting close to 10 million viewers. We have also further refined the search function at our platform, which has led to stronger user habits on searching. In the first quarter of 2023, Kuaishou search average monthly user exceeded more than 20 million, and number of daily searches on our platform peaked at more than 650 million. Meanwhile, we're delighted to see continuous progress in the commercialization of our search function, as evidenced by doubling of search generated e-commerce GMV year-over-year. That's what is over 50% year-over-year growth in the search advertising revenue in the first quarter of 2023. Second, online marketing services. In the first quarter, a considerable number of advertisers remained cautiously optimistic towards the recovery of macroeconomy and consumption trends in 2023. Through efforts to further strengthen our commercialization data infrastructure, optimize our product capabilities, and refine our industry-specific management strategies, our advertising revenue growth gradually recover. Our revenue from online marketing service for the first quarter of 2023 grew by 15.1% year-over-year to reach 13.1 billion RMB, accounting for 51.8% of our total revenue. The number of advertisers on platform also continued to grow rapidly year-over-year and quarter-over-quarter in the first quarter of 2023. Advertising services provided our native e-commerce merchants maintain robust growth momentum propelled by the growth in the e-commerce GMV on our platform. In the first quarter, we pioneered an industry-leading operating philosophy for store-wide ROI and completed pilot runs from certain brand advertisers during the Valentine's and March 8th International Women's Day shopping festival. These trials proved the capabilities of our store-wide ROI-based bidding system and validated its effectiveness end-to-end sales funnel conversion from brand promotion and promote ads, and ultimately two transactions. For our closed-loop advertising algorithms, we complete end-to-end ROI production and productization plan, ensuring the alignment of the advertising e-commerce from traffic distribution and factoring advertising into our omni domain e-commerce traffic allocation algorithm. In addition, we launched a project of growing our small and medium-sized e-commerce merchant client base, in particular within our own client acquisition and marketing capabilities, upgrade our Magnetic Taurus platform for e-commerce, marketing solutions on mobile devices to catalyze advertising needs, enhance penetration, and optimize our merchant ecosystem. In terms of our external advertising services, as most of our external clients are online businesses, the recoveries have lagged relatively to offline businesses. However, an encouraging gradual recovery trend began to take shape during the first quarter in industries such as information services, medical care, finance and education to explore advertisers' long-term goals to empower our clients to achieve in-depth conversion of our target users. We're leveraging products and algorithms that are well integrated within this attributes to promote discovery, accumulation, and user brand matching of high quality user cohorts, and also build a post-click models. At the same time, we actively monitor the healthiness of external advertisements on our platform, ensuring the penetration on the high value users through our optimized traffic allocation mechanism. In addition, we have established review standards and system for native advertisement materials to improve the quality of creative materials and reduce the negative impact on user experience and ecosystem. These efforts, together with our organic and commercial traffic allocation mechanism to enhance conversion efficiency and ROI for advertisers, have propelled the growth for external advertising services. With respect to brand advertising, we focus on strengthening our product capabilities. We established a rich advertising product portfolio, which includes splash ads and sponsorships for our self-produced IPs that are KOLs, home pages and searches, further expanding our brand advertising scenarios and sources. Furthermore, we design and customize solutions for brand advertisers various stages across different industries. We systematically establish user assets for brand advertisers and create an end-to-end conversion path, include integrating brand promotion, performance ads, and transaction, leading to increased recognition of our platform value from a growing number of brand advertisers. Driven by these initiatives and benefiting from key promotion events such as the Chinese New Year and March eighth, Women's Day in the first quarter, our revenue from brand advertising increased over 20% year-over-year. Third, our e-commerce business. In the first quarter of 2023, we continued to strengthen our trust-based e-commerce ecosystem and execute our omni-domain operating strategy. We further satisfy our users' needs by enriching our mechanism, improving matching accuracy between buyers and sellers, and harness the high-quality stream of resources and e-commerce content, which in turn drove a year-over-year increase in GMV of 28.4% to 224.8 billion RMB. On the merchandise side, we continue to enforce our merchandising capabilities, amplifying the exposure of more high-quality products for recommendation through product evaluation and rating based on broader array of five metrics. At the same time, we guided merchants to continue enhancing the product information quality and quantity, as well as elevating their service capabilities. On the merchant side, we further upgraded the cooperative mechanism between merchants and KOLs. We facilitated more accurate product matching for KOLs engaged in product distribution through a more refined and tiered operation strategy, leading to an over 50% year-on-year increase in GMV through the KOL distribution channel in this quarter. We expanded our commercial revenue generated from KOL distribution to continue contributing to incremental e-commerce revenue growth going forward. Moreover, by leveraging our stream initiative to build a bridge between merchants and KOLs, we have created a flywheel of merchandise and traffic driving increase both sides of our platform. With respect to onboarding and development merchants, with that cooperation with more brand merchants across a growing range of industries, first we're catering for users' increasing needs and consumption of branded merchandise. Leveraging our deep insights into users' consumption behavior, we carried out targeted promotions, leading to approximately 30% year-over-year increase in average number of brands on board the platform up in the first quarter. In by promotion events such as Super Brand Day. The growth rate of GMV from brands, including Kwai Brands, was much higher than the overall platform, accounting about 30% of our total e-commerce GMV in the first quarter. We also facilitate brand self-operated live streaming through creative content format such as press conferences, product launches, and live streaming by bosses to better cater to users purchasing needs for brand merchandise. In the first quarter, GMV of our brand self-operated live streaming grew by approximately 70% year-over-year. Going forward, we aim to more brands expand their user base while achieving GMV ramp up and sustainable operations. Additionally, we work with service providers to attract merchants in these growth zones and improve our merchant empowerment system. In the first quarter, we launched a Gold Rush Initiative with an exclusive policy and traffic support to house more medium-sized for merchants to grow. In March, a number of both monthly operated onboarded business merchants and monthly active business merchants increased by over 50% year-over-year. For merchants with steady operations on Kuaishou, we leveraged promotion activities such as Spring Festival Goods Festivals and Mother's Day, Women's Day promotions to refine our subsidy strategies, optimize traffic allocation, and enhance conversion efficiency, thus fostering GMV scale-up for small and medium-sized merchants. On our user front, we continue to refine our chaired operations for e-commerce business payer users. We cultivate the user mindset through recommendations and reinforce our conversion of new paying users and potential customers via smart subsidies, promotions, and traffic allocation adjustments. In the first quarter of 2023, new e-commerce paying users monthly purchase frequency increased continuously year-over-year and quarter-over-quarter, with retention rates improving every month. With respect to the relatively less active paying users, we strengthened the identification and reactivation of users with subpar experience. As for active paying users, we launched our early warning and anti-churn strategies in the first quarter to provide better services to high-value users. In the first quarter, the number of monthly active e-commerce paying users, average order price, and monthly order frequency all increased year-over-year. Algorithm-wise, we mitigated the impact of e-commerce content on user time spent by modeling the relationship between the e-commerce related user interaction and consumption time spent. We optimized users e-commerce consumption experience, leading to a more effective recommendations and conversion. Shelf-based e-commerce is another major realm in Kuaishou's domain e-commerce business strategy. In first quarter, we started to test the new shopping mall entry button we placed on the landing page of Kwai Shop to better meet the intended driven shopping needs of high active paying users. We aim to validate our shopping mall business model and cultivate user mindshare through this access point, laying a solid foundation for full-scale launch of our shopping mall service in the future. Meanwhile, as we optimize our search function to better identify user intention, we improve the pro relevance of search results, leading to a doubling of GMV generated from the searches year-over-year in the first quarter. Regarding our live streaming business. In the first quarter of 2023, live streaming revenue grew by 18.8% year-over-year to 9.3 billion RMB, driven by year-over-year increases in both average GMV, MPUs and monthly ARPU. Specifically, average MPUs increased by 6.4% year-over-year to 60.1 million, while monthly ARPU rose by double digits year-over-year. These achievements are as a result of the consistent improvement of live streaming content quality and optimization of user content matching efficiency through algorithm interactions. On a supply side, we focus on promoting development of live streaming as a professional and also the continuous advance our diverse cooperation with top talent agencies and streamers. In the first quarter, the number of active streamers from the talent agencies increased by over 140% year-over-year. We also provided traffic support to high- quality mid-level streamers to optimize the constituents of live streaming supply. At the same time, we continue to explore different live streaming category, including knowledge base and virtual personal live streaming to broaden our users' demands for a few types of live streaming content. Our initiative, Live Streaming Plus services made steady progress in the first quarter. We averaged daily resume submissions on Kwai Hire growing by over 300% year-over-year, and peak daily resume submission exceeded 500,000. As at the end of the first quarter, Ideal Housing covered more than 70 cities nationwide, with a cumulative growth transaction value surpassing RMB 8 billion in the first quarter. In addition, Kwai Date matchmaking service facilitated over 100,000 voice chat in the live streaming rooms on average every day in the first quarter. Finally, in terms of overseas business progress. In the first quarter of 2023, we further deepen our key country focus strategy to optimize resource allocation while establishing a more agile collaboration to elevate the operational efficiency in a core market regions such as Brazil and Indonesia. DAUs and yearly time span continue to grow year-over-year and quarter-over-quarter. Revenue from overseas business grew at an accelerated pace to reach RMB 38 million in the first quarter of 2023, increased by over 6x year-over-year. We continue to narrow our overall operating loss in overall markets by 45.1% quarter-over-quarter in the first quarter as we further enhance operating efficiency and continue to reduce costs through an ROI-based investment approach in our overseas business. Our overseas live streaming business optimized its content supply by adding a vast array of talent agencies into a partner roster and energizing its existing talent agency partners to produce more and better streaming content. The ramp up the exploration in live streaming revenue products and rollout of its new iterations of operating process lead to a steady improvement in live streaming paying user ratio and ARPU. In addition, success being enhanced the growth profit margin of live streaming business through a series of measures, improving the top talent agent efficiency. Advertising front, overseas business achieved better than expected revenue growth, thanks to its efforts to strengthen local operation capabilities, expanding advertiser coverage to more industry sets, optimize product portfolio and service capabilities. In addition, e-commerce service launched in Brazil in the first quarter and test water and primarily verify the R processes. Looking ahead to the rest of 2020, Kuaishou will continue to leverage technology to deliver high quality experiences and services to our users and empower content creators, advertisers, and merchants, while at the same time unlocking monetization potential through our vast and vibrant ecosystems to ultimately create long-term value for our shareholders and stakeholders. This concludes my prepared remarks. Thank you. Our CFO, Mr. Jin Bing, will discuss company's financial performance for the first quarter of 2023. Thank you, Yixiao. We started the year of 2023 with remarkable performance and deliver a positive adjusted net profit at the group level in the first time of our listing. This milestone was a result of our persistent efforts in advancing integration of user content and commercialization ecosystem, and our continued commitment to refining operation efficiency. Specifically, we achieved a healthy expansion of our user base, taking our average DAUs and MAUs to a new record highs. At the same time, we continue to optimize our monetization models and enhance monetization efficiency to unlock the vast potential of our ecosystem, preparing solid value, revenue growth across our business segments. This coupled with our effective co-cost control and efficiency enhancement measures, leading to an operating profit in our domestic business for four consecutive quarters and 55.4% reduction operating loss in overseas business year-over-year. Next, let me walk you through our performance for the first quarter of 2023 in detail. In the first quarter of 2023, our group's revenue increased 19.7% year-over-year to 25.2 billion RMB, accelerating from 16.8% in fourth quarter of 2022. This increase was driven by broad-based strength in all our main businesses, including online marketing services, live streaming, and other services, particularly the e-commerce business. Revenue from our online marketing services increased 15.1% year-over-year to 13.1 billion RMB in the first quarter, with a strong performance in our closed- loop advertising and brand advertising services. This growth was driven by our efforts to further strengthen our data infrastructure to support commercialization, optimize our product capabilities, and refine our industry-specific management strategies. In the first quarter, revenue from our live streaming business grew by 18.8% year-over-year to RMB 9.3 billion. We continue to enrich content supply by deepening cooperation with the top talent agencies and expanding high-quality streamer base, and constantly expand our live streaming usage scenarios and content categories to strengthen user engagement. Our average MPUs reached 60.1 million in the first quarter, while our monthly ARPU also achieved double-digit year-over-year growth. On the other services, revenue surged 51.2% year-over-year in the first quarter, reaching RMB 2.8 billion, primarily propelled by our strong e-commerce revenue growth. We continue to onboard and cultivate new merchants, reinforce our merchandising capabilities, and optimize our KOL operation strategy, which all helped convert more of our users into active e-commerce paying users and increase their average order value and monthly order frequency, fostering a virtuous cycle of merchant growth, KO growth, and e-commerce user growth. As a result, our e-commerce GMV increased 28.4% year-over-year, reaching 224.8 billion RMB. The year-over-year growth rate of e-commerce revenue outpaced the overall revenue growth of other services. For the first quarter of 2023, our cost of revenues increased 9.9% year-over-year to 13.5 billion RMB, accounting for 53.6% of total revenues. This increase was attributable to the increase in revenue sharing costs and related taxes in line with our revenue growth. Gross profit for the first quarter of 2023 rose 33.4% year-over-year to RMB 11.7 billion. Gross profit margin also increased significantly year-over-year, expanding 4.7 percentage points from 41.7% in first quarter of 2022 to 46.4% this quarter as a result of our improved cost management. Moving to expenses. Selling and marketing expenses for the first quarter of 2023 decreased by 8.1% year-over-year to RMB 8.7 billion, primarily due to our efficient and disciplined spending on user acquisition and retention. Selling and marketing expenses as a percentage of total revenues also decreased from 45% in the first quarter of 2022 to 34.6% in this quarter. Research and development expenses for the first quarter decreased by 17.1% year-over-year to RMB 2.9 billion, primarily due to the decrease in employee benefit expenses, including related share-based compensation expenses. R&D expenses represented 11.6% of our total revenues in the first quarter, also down materially from 16.7% in the first quarter of 2022. Administrative expenses increased by 5.5% year-over-year to reach RMB 900 million for the first quarter, primarily due to the increased employee benefit expenses, including related share-based compensation expenses. As a percentage of total revenues, it decreased from 4.1% in the first quarter of 2022 to 3.6% in this quarter. In the first quarter of 2023, our group achieved adjusted net profit for the first time, which amounted to RMB 42 million, a turnaround of adjusted net loss of RMB 45.3 million in the fourth quarter of 2022, and RMB 3.7 billion in the same period of last year. Our balance sheet maintained a very healthy trend with cash and cash equivalent, time deposits, restricted cash, and wealth management products of RMB 44.8 billion of March 31, 2023. Our enhanced monetization capabilities and efficient working capital management empowered us to generate a positive operation net cash flow of RMB 1.8 billion for the first quarter of 2023. In summary. Additionally, as you may have seen, we announced a share repurchase plan of HKD 4 billion, which demonstrates the confidence of our board and the management of our company's long-term and sustainable growth potential. Overall, in summary, we continue to propel the high-quality development of our ecosystem and strive to maximize value for our content, advertising and e-commerce merchant partners. Looking ahead, we will remain focused on monetization efficiency gain across our business lines, which are built on a foundation of ever-improving user experience and user trust. This, coupled with our ongoing focus on enhancing our cost efficiency, positions us well to further improve our operating profitability while creating values for all the shareholders. This concludes prepared remarks. Now open for questions. Operator, please go ahead. As a reminder, to ask the question, you need to press star one on your telephone. To remove your request, please press the pound or hash key. Please stand by while we compile the Q&A roster. First question comes from the line of Kenneth Fong from Credit Suisse. Please go ahead. Hi, Matthew. Thank you management for taking my questions and congrats on the strong quarter. Under the current competitive landscape, how should we think about the upside potential for our e-commerce business? Can management share some of the key drivers behind? Also would appreciate some updates on the progress and status of the marketplace e-commerce business. Thank you. Thank you for your questions. According to the recent NBS data, national wide online retail sales grew by 8.6% year-over-year in the first quarter of this year, and the scale of e-commerce industry continued to expand. As an up-and-comer with an advantageous position in live streaming e-commerce, we are still growing rapidly. We are fully confident that we will continue to gain market share going forward. As to the specific drivers of our growth, first, on the supply side, the constant enrichment of merchandise infrastructure, short video content, brand e-commerce, and different merchandise categories drives demand growth for our e-commerce business. We will improve our merchandising infrastructure to select competitively priced, high- quality merchandise for precise user targeting and conversion. We will also encourage merchants and KOLs to not only make effective recommendations through short video content, but also to promote order placements and transactions. At present, e-commerce GMV from short video recommendations accounts for a low single digit of total GMV of e-commerce, with considerable future upside potential. As for brand e-commerce, in the first quarter of our brand GMV grew at a significantly faster pace on a year-over-year basis than our overall e-commerce GMV. Going forward, we will improve sales conversion through more precise marketing, subsidies and support policies to encourage self-operated live streaming by merchants, while leveraging our high-quality KOL resources to expand brand share of voice. At the same time, our merchandise categories have been growing. The apparel category, which we are in advantageous position, maintain rapid growth with a major increase in a sports and outdoor subcategory. GMV from FMCG, home furnishings and 3C continued to increase as a percentage of total GMV, with products carrying a higher average order value, such as home appliances, growing at a notably faster rate. GMV from fresh produce, plant and pet products has also displayed a strong growth momentum. While it still accounts for a relatively small proportion overall, in fact, GMV of tea and other subcategories nearly tripled year-over-year. This is primarily due to our in-depth discovery and operation of high- quality merchants in industrial zones, as well as the efficient conversion of potential paying users. We are confident in our ability to help merchants from a wider range of industries achieve a quantum leap in their online sales. 第 二 呢 ， 从 需 求 侧 来 看 ， 流 量 大 盘 ， 买 家 渗 透 率 及 购 买 频 次 的 持 续 提 升 是 主 要 的 驱 动 因 素. 那 作 为 优 质 的 内 容 平 台 ， 我 们 的 流 量 大 盘 还 在 保 持 增 长 并 流 畅 的 新 高. 我 们 的 努 力 方 向 是 通 过 不 断 提 升 电 商 内 容 质 量 和 匹 配 精 准 度 ， 让 电 商 成 为 优 质 内 容 的 重 要 组 成 部 分 ， 提 升 流 量 的 天 花 板. 在 拥 有 流 量 优 势 的 前 提 下 ， 我 们 的 电 商 月 活 跃 买 家 渗 透 率 一 季 度 稳 定 在 15% 左 右 ， 仍 有 较 大 的 提 升 空 间. 随 着 种 草 、 拔 草 、 列 入 更 加 顺 畅 ， 电 商 业 务 与 内 容 消 费 高 度 协 同 ， 算 法 匹 配 更 精 准 ， 智 能 补 贴 ， 大 厂 运 营 活 动 持 续 释 放 势 能. 我 们 有 信 心 以 低 价 好 物 、 优 质 内 容 、 贴 心 服 务 ， 持 续 提 升 活 跃 买 家 转 化 留 存 效 率 ， 强 化 更 多 用 户 在 Kuaishou 平 台 的 电 商 消 费 心 智 ， 进 一 步 提 升 下 单 的 频 次. Secondly, on the demand side, overall user traffic rising, paying user penetration and higher purchase frequency are the main growth drivers. As a platform with high quality content, we continue to grow our user traffic to new highs. The direction of our future efforts is to make e-commerce an integral part of our high quality content ecosystem, and raise the upside of our traffic growth through improvements in e-commerce content quality and matching accuracy. So far, the penetration rate of our monthly active e-commerce paying users has hovered around 15%, indicating considerable upside given our massive user traffic. We are further improving the path from product recommendation to transaction and aligning content consumption with e-commerce needs and enhance mentioned algorithm accuracy. Supported by these initiatives, as well as the momentum of our smart subsidy programs and the main app operation activities, we are confident that we can constantly enhance the conversion and retention efficiency of active e-commerce paying users with cost effective goods, high quality content and customer focused services. Taken together, these efforts will reinforce more users e-commerce consumption habits on Kuaishou's platform, leading to further increases in purchase frequency. 供 给 两 端 的 蓬 勃 发 展 离 不 开 平 台 的 运 营 和 治 理 。 本 季 度 我 们 基 本 完 成 了 商 家 店 铺 体 验 分 和 达 人 带 货 口 碑 分 体 系 的 升 级 和 迭 代 ， 综 合 评 估 商 品 品 质 、 内 容 、 服 务 质 量 、 用 户 体 验 等 指 标 ， 筛 选 扶 持 优 质 经 营 者 ， 提 升 用 户 购 物 体 验 。 商 品 分 、 店 铺 体 验 分 及 达 人 带 货 口 碑 分 未 来 也 将 成 为 平 台 加 强 信 任 电 商 生 态 的 重 要 经 营 渠 道 。 Prosperity on both the supply and demand side of e-commerce can only be achieved through strong platform operation and governance. In the first quarter, we basically finished upgrading our merchants experience scoring system and our KOLs reputation scoring system, which are based on a comprehensive evaluation of merchandise and service quality, content and user experience. These systems will allow us to better identify and support high- quality merchants, elevate users overall shopping experience, and together with our merchandise scores, help us further strengthen our trust-based e-commerce ecosystem in the future. 关 于 你 的 第 二 个 问 题 ， 随 着 商 品 基 建 逐 步 成 熟 ， 我 们 的 新 商 城 服 务 的 试 水 也 在 持 续 地 推 进 。 那 Q1 ， 我 们 开 放 测 试 了 买 家 首 页 的 新 商 城 服 务 。 Q2 呢 ， 会 逐 步 放 量 推 广 ， 利 用 更 大 的 GMV 体 量 和 势 能 丰 富 供 给 ， 为 商 城 做 好 准 入 并 提 升 效 率 。 新 商 城 有 助 于 平 台 理 解 活 跃 用 户 的 购 物 偏 好 ， 强 化 用 户 的 购 物 心 智 。 有 了 这 一 经 营 阵 地 ， 我 们 会 在 未 来 逐 步 测 试 商 城 服 务 的 一 级 入 口 。 在 货 品 的 选 择 和 引 入 上 ， 我 们 会 利 用 好 平 台 的 现 有 货 品 词 ， 加 强 常 挂 品 、 商 品 卡 、 详 情 页 等 基 础 设 施 建 设 ， 同 时 也 将 充 分 利 用 商 品 的 社 会 资 源 ， 持 续 引 入 优 质 供 给 。 目 前 快 手 泛 货 架 GMV 占 比 超 过 了 10% ， 其 中 猜 你 喜 欢 及 搜 索 GMV Q1 均 实 现 翻 倍 的 增 长 ， 月 活 跃 买 家 中 搜 索 的 渗 透 率 高 达 了 69% 。凸 显 了 快 手 的 用 户 在 快 手 平 台 愈 发 成 熟 的 购 物 心 智 。 预 计 今 年 泛 货 架 GMV 的 增 速 会 加 快 ， 占 比 也 将 持 续 地 提 升 。 Regarding your second question, as our merchandising infrastructure matures, we have been testing our new shopping mall service. In the first quarter, we open testing of the shopping mall feature on buyers homepages. We will gradually roll out access to the service in the second quarter on a larger scale, and use the resulting GMV increase and growth momentum to propel supply side enrichment, refine criteria for merchandise listings, and enhance its operating efficiency. The new shopping mall will also help us understand the shopping preferences of our active users and fortify users shopping mindsets. With this as a home base for our e-commerce operations, we will progressively test level one access points for the shopping mall. With respect to merchandise selection and shelving, we will leverage our platform's existing merchandise pool and improve infrastructure such as on-shelf goods and detailed merchandise information pages. Meanwhile, we will leverage all types of suppliers resources to constantly bring in high quality suppliers. Currently, Kuaishou's pan-shelf GMV accounts for over 10% of our total GMV of e-commerce, of which GMV resulting from the Guess You Like feature and searches both doubled in the first quarter. The penetration rate of our search function reached a high level of 59% among monthly active e-commerce paying users, reflecting our users increasingly established a shopping mentality on our platform. We expect our pan-shelf GMV to grow at an accelerated pace this year and account for a rising share of total GMV of e-commerce. Thank you, operator. Next question, please. 下 一 道 问 题 将 来 自 Goldman Sachs 的 Lincoln Kong。 Next question comes from the line of Lincoln Kong from Goldman Sachs. Please go ahead. 请 提 问 。 嘿，好，谢谢 Yixiao，谢谢 Jin Bing。我的问题是关于这个商业化这边，就是想请管理层预期一下，就是我们的外循环，效果类广告，何时可以恢复到一个同比，正的一个增长。上个季度呢，我们在这边也提到了，商业化的一个流量的提效，商品服务的提升，包括这个 store-wide ROI，可不可以请，管理层分享一下目前的一些进展。我自己翻译一下。Thank you management for taking my question. My question is about commercialization business. Can management give us any indication for the external ads, especially the performance ads, when can recover to positive growth trajectory? Last quarter, management also talking about the traffic efficiency, the upgrade of our commercial service as well as the store-wide ROI. Could we elaborate a bit more in terms of the progress here? Thank you. 谢 谢 你 的 问 题 啊 。 呃 ， 那 进 入 二 季 度 以 来 啊 ， 随 着 外 循 环 各 行 业 年 框 协 定 ， 啊 ， 签 订 的 陆 续 完 成 ， 以 及 六 幺 八 营 销 节 点 的 临 近 ， 叠 加 我 们 对 部 分 行 业 的 渠 道 政 策 细 化 落 地 ， 我 们 注 意 到 呢 ， 外 循 环 效 果 类 广 告 的 消 耗 同 比 呈 现 较 为 明 显 的 逐 月 恢 复 的 趋 势 。 从 行 业 趋 势 上 看 ， 游 戏 、 传 媒 资 讯 和 电 商 零 售 仍 是 增 速 恢 复 的 主 要 动 力 。 另 外 呢 ， 金 融 、 教 育 等 行 业 也 随 着 我 们 产 品 链 路 优 化 和 重 点 客 户 的 攻 坚 专 项 ， 配 合 相 关 的 支 持 政 策 ， 成 为 外 循 环 效 果 类 广 告 逐 步 恢 复 同 比 增 长 的 重 要 支 柱 。 我 们 预 计 在 暑 期 充 沛 流 量 刺 激 下 ， 传 媒 资 讯 行 业 投 放 会 逐 步 增 加 ， 游 戏 行 业 结 合 近 期 游 戏 厂 商 较 多 的 新 品 首 发 ， 及 部 分 客 户 对 暑 期 流 量 的 明 确 诉 求 下 ， 游 戏 广 告 也 会 在 暑 期 进 入 消 耗 高 峰 期 。 基 于 此 ， 我 们 对 下 半 年 开 始 外 循 环 效 果 广 告 恢 复 正 增 长 的 信 心 会 更 强 。 Thanks for your questions. In the second quarter, we have gradually completed the execution of full year framework agreements with external advertising customers from various industries. Given this context, combined with the upcoming June 18th promotion and the implementation of our refined channel policies for some industries, we have noticed a clear month-by-month recovery trend in external performance and expenditures compared with the same period last year. Industry-wise, the main drivers of this recovery came from gaming, information services, e-commerce and retail industries. The finance and education industries, among others, also underpinned the year-over-year growth of our external performance ads, thanks to our optimized sales funnel conversion, targeted efforts towards key clients and associated supportive policies. We expect advertising placements in this information services industry to increase gradually during this year's summer break period, driven by improved user traffic. Advertising expenditures from gaming clients will also enter a peak period during summer break, propelled by the large number of new releases by game developers and some clients clear traffic needs in this period. These factors have boosted our confidence that our external performance ad will resume growth starting from the second half of this year. Moving to our progress with respect to building our own strength in the online marketing services. First, in terms of improving advertising traffic efficiency, we continue to strengthen our commercialization data infrastructure. We also substantially elevated our advertising performance by reaching a broader audience among users in the gaming, social networking, and financial industries through better coordination among our front-end business and our product and algorithm teams, exploration of targeted users groups interest and internal data sharing, as well as by encouraging advertisers to send back in-depth user conversion data. Second, regarding strengthening our product capabilities. In my prepared remarks, I mentioned the intelligent upgrade of our Magnetic Taurus, the platform for e-commerce and marketing solutions on mobile devices. This upgrade included the connecting ad placements with e-commerce services. As a result, we increased the penetration amongst small and medium-sized merchants, as evidenced by the 72% year-over-year growth in the number of this type of merchants on Magnetic Taurus on mobile devices in March, further optimizing our closed-loop advertising ecosystem. In terms of search traffic, with the improvement of our search function and gradual establishment of users search habits on our platform, our search traffic maintained rapid growth. As a result, and aided by its higher conversion efficiency, search advertising generated 50% higher revenue year-over-year in the first quarter. The rapid growth of search revenue will continue to provide upside potential for advertising revenue. As for brand advertising products, we expanded beyond traditional splash ads to KOLs homepages and searches, among other areas, driving higher growth for brand advertising versus an overall advertising services. Third, with respect to advertising services, upgrade, we are on track to improve our customer service system and response mechanism to address customer service needs in a timely manner. At the industry level, we also promoted the development of product systems and formulated customized industry solutions to address common industry problems and achieve in-depth conversions. Turning to store-wide ROI, we already launched the associated product at the end of March. Our forecast in the first quarter was to validate our model and optimize product. This was our focus on improving our ability for incremental ad expenditures. We completed pilot runs for same brand advertisers during Valentine's Day and March 8th, Women's Day shopping festival, which provided us with testing experiences as well as insights, while confirming the conversion potential of brand homepage followers. Many advertisers reported the lower personnel and tracking costs, and significant improvements in ROI target achievement and ad performance after the adoption of store-wide ROI. We expect to commence the large- scale rollout of this product in the second quarter. Thank you. Operator, next question, please. The next question comes from the line of Thomas Chong from Jefferies. Please go ahead. 晚 上 好 ， 谢 谢 管 理 层 介 绍 我 的 提 问 ， 我 的 问 题 是 关 于 新 业 务 方 面 的 ， 管 理 层 可 以 分 享 一 下 本 地 化 还 有 Kuaishou 的 进 展 情 况 。Thanks management for taking my question. My question is about the new initiatives. Can management comments about local services, and online recruitment? How's the progress so far? Thank you. 本地生活业务探索一季度也取得进展。通过综合评估城市属性、用户基础、团队资源等，我们设定重点运营的核心城市，打造 MVP，利用本地达人的影响力，团队深耕细作和第三方合作伙伴的海量资源，建立起达人加商家生态。同时推荐商品隐形筛选优势供给，深入了解用户需求。例如在已经初步跑通了 MVP 的城市中，青岛表现尤为突出。开城后仅 50 天内，日均 GMV 提升 14 倍，订单数提升 12 倍，下单用户数提升 9 倍。合作商家方面，例如某知名连锁快餐品牌，上线仅 1 个月时间，快速冷启爬坡，首月支付 GMV 超过了 35 million RMB，其中有搜索意图的订单交易额占比近 30%。我们相信 Kuaishou 用户对本地生活内容的消费意愿和偏好是非常值得期待的。 Thanks for your question. In the first quarter, we also made progress in local services. We identified MVP cities for our key operations based on a comprehensive evaluation of city attributes, user base and team resources. Leverage local KOLs influence, our teams meticulous efforts and our third party partners rich resources, we establish localized ecosystems comprised of KOLs and merchants. Meanwhile, we advance our merchandise engine to screen high- quality suppliers and deepen our insights into users needs. Among those MVP cities where we have completed our trial run, Qingdao was a standout, achieving remarkable growth in just 50 days since its launch, average daily GMV of local services in Qingdao surged by 14 times. The number of orders grew by 12 times, and the number of users placing order rose by nine times. Regarding our merchant partners, a well-known fast food chain restaurant completed a quick sales ramp up from cold start only one month after the service's launch, generating a GMV of over 35 million RMB. Notably, transactions originated from searches accounted for nearly 30% of total sales. These encouraging results clearly reflect Kuaishou's users a strong desire and preference for local services. 在策略方面，随着线下经济的加速恢复，用户对本地生活内容的消费需求在快速的增长。在进入二季度，我们将继续扩大核心运营城市数量，提升当地优质商家商品供给，激励达人创作优质内容，强化本地用户的消费心智，匹配对应的平台政策支持，打造高效精准的短视频加直播双轮分发体系。目前形成以青岛、哈尔滨等多个城市为重要据点的成熟商业模式，快速复制到更多的城市。在商品方面，我们也将扩展品类，除到餐以外，增加到中酒旅、门票等本地商品。除本地商家外，进一步扩展 SKA 品牌，帮助更多全国连锁品牌扩大用户基础，充分利用在 Kuaishou 下沉市场的用户优势，帮助品牌丰富用户结构。平台运营方面，一季度我们搭建了 NPS 用户推荐系统，更好地理解用户，也将不断完善本地业务消费场景，提升用户体验。 In terms of strategy, as the offline economy recovered and accelerated pace, users consumption demand for local services content experienced rapid growth. In the second quarter, we will continue to expand the number of our core operating cities, augment the availability of high quality local merchants and products, motivate KOLs to create high quality content and strengthen local users consumption mindset. These measures, coupled with our platforms supportive policy, will build an effective and accurate content distribution system, including both short video and live streaming. We will swiftly replicate our established business model from key hubs like Qingdao and Harbin to more cities. Product wise, we will diversify our product categories from in-store dining to general in-store business, hotel, travel and ticket sales. Apart from local merchants, we will further expand our coverage of SKA brand to help more national chain stores grow their user base and diversify their user mix by leveraging Kuaishou's advantageous user resources in a lower- tier markets. In terms of platform operations, we established an NPS user recommendation system in the first quarter to gain a deeper insight into user preferences, and we will continue to refine our local services, products and consumption scenarios to elevate the overall user experience. 啊 一 季 度 呢 ， 快 聘 业 务 也 稳 步 地 推 进 ， 日 均 简 历 投 放 量 的 话 ， 同 比 增 长 超 过 了 百 分 之 三 百 ， 同 时 日 投 递 简 历 峰 值 也 超 过 了 五 十 万 。 快 聘 业 务 的 持 续 进 展 得 益 于 我 们 不 断 增 加 的 岗 位 供 给 ， 通 过 数 据 基 建 提 升 简 历 质 量 ， 并 通 过 算 法 提 升 岗 位 供 需 匹 配 效 率 等 。 同 时 我 们 也 在 积 极 探 索 ， 通 过 AI 技 术 自 动 生 成 招 聘 视 频 ， 形 成 低 成 本 批 量 化 内 容 生 产 能 力 ， 助 力 商 家 经 营 。 那 在 变 现 侧 呢 ， 我 们 CPQL 及 分 质 量 的 线 索 定 价 模 式 也 在 逐 步 地 共 通 ， 并 在 重 点 行 业 客 户 完 成 测 试 ， 预 计 商 业 变 现 收 入 在 未 来 一 到 两 个 季 度 逐 步 起 量 。 In the first quarter, we also made steady progress in Kwai Hire. We observed a year-on-year increase of over 300% in average daily resume submissions, with daily peak submissions surpassing 500,000. This continued growth was resulted from our expanding job posting, the enhancement of resume quality through data infrastructure and improved job supply and demand matching efficiency through algorithms. Furthermore, we are actively exploring ways to use AI technology to automatically generate recruitment videos enabling low- cost mass production of content to support businesses operations. On the monetization front, we have been validating our CPQL or cost per qualified lead model and also have completed tests with key industry clients. We expect monetization of Kwai Hire to increasingly distribute to revenue within the next one to two quarters. Thank you. Next question please operator. 谢 谢 。 下 一 道 问 题 来 自 Morgan Stanley 的 Alex Poon。 The next question comes from Alex Poon from Morgan Stanley. Please go ahead. 请 提 问 。 恭 喜 Yixiao 总 ， Jin 总 ，Matthew 强 劲 的 业 绩 。 我 的 问 题 是 想 问 一 下 关 于 利 润 率 的 趋 势 的 ， 请 管 理 层 能 不 能 分 享 一 下 未 来 毛 利 率 和 账 本 增 效 的 一 些 趋 势 应 该 怎 么 看 ？ 谢 谢 。Congrats on a very strong quarter. My question is related to our margin improvement trend. Can management share the future trend for gross margin and also the OpEx ratio? Thank you very much. 好 ， 谢 谢 你 的 问 题 。 那 回 顾 过 去 的 五 个 季 度 ， 在 公 司 各 个 部 门 的 共 同 努 力 下 ， 我 们 的 账 本 增 效 的 举 措 成 效 还 是 很 显 著 的 。 集 团 的 毛 利 率 从 去 年 Q1 的 百 分 之 四 十 点 七 提 升 到 了 今 年 Q1 的 百 分 之 四 十 六 点 四 。 营 销 和 销 售 的 开 支 占 收 比 从 去 年 Q1 的 百 分 之 四 十 五 降 到 了 今 年 Q1 的 百 分 之 三 十 四 点 六 。 研 发 开 支 占 收 比 从 去 年 Q1 的 百 分 之 十 六 点 七 降 低 到 今 年 Q1 的 百 分 之 十 一 点 六 ， 从 而 使 得 集 团 在 去 年 Q2 提 前 两 个 季 度 实 现 国 内 分 部 运 营 利 润 转 正 。 海 外 业 务 逐 步 减 亏 ， 以 及 本 季 度 实 现 集 团 上 市 后 的 首 次 经 调 整 净 利 润 的 转 正 。 Thank you for this question. Looking back on the past five quarters with the joint efforts of all departments in the company, our cost reduction and efficiency enhancement initiatives delivered remarkable results. Our gross profit margin increased from 41.7% in Q1 last year to 46.4% in Q1 this year. Selling and marketing expenses as a percentage of revenue declined from 45% in Q1 last year to 34.6% in Q1 this year. Our R&D expenses fell from 16.7% of the total revenue in Q1 last year to 11.6% in Q1 this year. As a result, our domestic business turned to an operating profit starting in Q2 last year, two quarters ahead of schedule. The operating loss in our overseas business has also gradually narrowed, and in the first quarter this year, we realized adjusted net profit at a group level for the first time since our listing. 具 体 来 看 呢, 去 年 我 们 通 过 几 个 大 的 战 役 使 得 账 本 增 效 的 举 措 落 地. 第 一, 在 用 真 投 入 方 面, 我 们 在 流 量 持 续 增 长 的 前 提 下, 用 户 增 长 费 用 持 续 锚 定 单 DAU 成 本 的 提 效, 通 过 完 善 精 细 化 的 投 放 和 补 贴 模 型, 细 化 渠 道 进 行 差 异 化 的 触 达, 不 断 降 低 单 DAU 维 系 成 本, 优 化 新 回 流 用 户 投 放 结 构, 使 用 真 投 入 ROI 明 显 提 升. 第 二, 服 务 器 带 宽 投 入 方 面, 我 们 通 过 技 术 手 段 不 断 提 升 单 位 时 长 的 服 务 器 和 带 宽 使 用 效 率. 中 期 通 过 研 发 效 率 指 标 体 系 建 设 和 自 营 运 营 数 据 中 心 等 项 目, 使 服 务 器 带 宽 成 本 占 收 比 持 续 降 低. 第 三, 人 力 相 关 投 入 方 面, 我 们 通 过 建 立 人 力 成 本 管 控 基 准 线, 有 效 实 现 各 项 指 标 的 持 续 优 化, 同 时 更 关 注 人 效 和 员 效 的 改 善, 并 在 ROI 更 高 的 板 块 持 续 坚 定 投 入. Specifically, we launched several major campaigns last year to reduce our costs and enhance efficiencies. First, in terms of user growth costs, we focused on improving the cost per DAU while maintaining traffic growth. By refining our investment and subsidy models and taking differentiated approaches in engaging users through different channels, we continuously and continually lowered our retention cost per DAU and optimize our cost structure in user reactivation. This significantly improve our ROI on user growth. Second, regarding server and bandwidth costs, we continue to boost the efficiency of server and bandwidth usage per thousand minutes through technology. In the midterm, we have constantly lowered server and bandwidth costs as a percentage of revenue by creating a metric system and to measure R&D efficiency and building our own operating data center. Third, for personnel costs, we established a personnel cost control baseline to effectively and also constantly optimize associated metrics. On top of that, we placed more emphasis on improving the labor productivity and resource productivity while continuing to make a steady fast investment in higher ROI segments. 那 么 展 望 未 来 ， 毛 利 率 持 续 改 善 的 驱 动 因 素 包 括 以 下 ： 第 一 ， 收 入 结 构 变 化 ， 高 毛 利 的 广 告 及 电 商 业 务 占 比 持 续 提 升 。 第 二 ， 各 业 务 的 长 期 分 成 机 制 的 优 化 ， 带 来 分 成 成 本 的 有 效 控 制 。 第 三 ， 通 过 技 术 创 新 ， 不 断 提 升 服 务 器 和 带 宽 的 使 用 效 率 。 在 毛 利 率 改 善 的 基 础 上 ， 我 们 仍 然 会 重 视 运 营 杠 杆 的 持 续 优 化 ， 例 如 销 售 费 用 在 保 证 完 成 用 户 增 长 目 标 及 时 长 相 对 稳 定 的 前 提 下 ， 通 过 对 拉 新 渠 道 的 治 理 、 效 率 优 化 、 技 术 迭 代 等 等 手 段 ， 进 一 步 优 化 单 用 户 获 客 成 本 以 及 单 DAU 的 维 系 成 本 。 人 力 费 用 通 过 组 织 迭 代 和 提 效 等 工 作 ， 占 收 比 不 断 向 行 业 标 杆 水 平 靠 拢 。 By looking ahead, continued gross profit margin improvements will be driven by the following factors. First, the change in our revenue mix as advertising and e-commerce businesses with higher gross profit margin contribute larger shares of revenue. Second, an optimized long-term revenue sharing mechanism among our business segments, which will effectively control revenue sharing costs. Third, we will leverage technological innovations to keep improving server and bandwidth usage efficiency. On the back of our gross profit margin improvement, we will remain focused on optimizing our operating leverage. For instance, while ensuring the realization of our user growth target and relatively steady user time span, we will further improve acquisition costs per user and retention costs per DAU through the governance of new user acquisition channels, efficiency enhancements and technological upgrades. Our efforts to further iterate our organization and elevate efficiency will allow our personnel expenses as a% of revenue to gradually approach to industry's benchmark level. 那 么 总 之 ， 降 本 增 效 的 本 质 目 的 是 为 了 提 升 效 。 这 不 仅 是 单 纯 的 财 务 措 施 ， 更 是 公 司 的 长 效 战 略 机 制 ， 是 融 入 在 公 司 基 因 里 的 运 营 思 维 的 变 化 。 公 司 在 未 来 每 一 个 战 略 决 策 的 制 定 和 实 施 过 程 中 ， 都 会 包 含 相 关 的 考 量 。 In summary, the ultimate purpose of cost reductions and efficiency improvement is to boost quality and productivity. These are not simply financial measures, but part of our sustainable strategic mechanism representing changes in our operating mindset integrated in our DNA. Going forward, we will take this into consideration every time we make and implement a strategic decision for the company. Thank you. Operator, next question, please. Sure thing. 下 一 道 问 题 来 自 CICC 的 张 雪 琴 。 The next question comes from Xueqing Zhang from CICC. Please go ahead. 请 提 问 。 你 好 ， Yixiao 总 ， Jin Bing 哥 ， Matthew Zhao 哥 ， 大 家 好 ， 谢 谢 这 个 提 问 的 机 会 ， 然 后 恭 喜 一 季 度 集 团 前 面 的 盈 利 。 想 请 管 理 层 分 享 一 下 公 司 在 AI 方 面 的 进 展 ， 然 后 在 短 视 频 领 域 可 能 出 现 怎 么 样 的 一 个 大 模 型 相 关 产 品 。 谢 谢 。 Good evening management, thanks for taking my question. Congratulations on a group level profit. Could management share the company's progress in AI? What kind of large language model related products we can expect in the short video field? Thank you. 啊 ， 谢 谢 问 题 。 快 手 目 前 已 经 组 建 了 大 模 型 的 研 发 团 队 ， 并 依 托 过 去 的 AIGC 算 法 和 大 模 型 语 言 ， 呃 ， 模 型 方 面 的 技 术 积 累 ， 按 计 划 推 进 大 模 型 的 开 发 和 训 练 。 各 项 的 话 进 展 是 比 较 顺 利 。 当 前 啊 ， 模 型 还 处 于 训 练 阶 段 ， 且 我 们 认 为 此 次 AI 技 术 的 变 革 是 一 次 长 期 的 机 遇 ， 踏 踏 实 实 做 好 底 层 大 模 型 ， 对 标 国 际 最 先 进 的 模 型 效 果 更 加 重 要 。 因 此 ， 我 们 暂 时 还 没 有 明 确 的 对 外 发 布 计 划 。 Thanks for your question. We have established an LLM research and development team. Leveraging our technical expertise accumulated previously in AIGC algorithms and LLMs, we are advancing LLM development and training as planned. Currently, everything is progressing smoothly. As our model is still in the training phase and the revolution of AI technologies represents a long-term opportunity, we believe it is crucial to build a solid foundation with LLMs and strive to benchmark the most advanced models in the world. As such, we do not have a concrete plan for public release at the moment. 另外呢，和大家分享一下我们关于AI在短视频领域最可能率先落地的应用场景的思考，也是目前Kuaishou正在努力推进的方向。首先呢，是搜索方面。类 ChatGPT 模型可以拓展搜索边界，从当前的站内短视频搜索拓展到全网搜索，同时还可以通过内容生成的方式带来更好的搜索摘要和问答，提升用户的搜索体验。其次是 AIGC 辅助生成图文视频，赋能用户降低创作门槛，提升作品的质量和多元化。具体而言，AIGC 可以用于诸如辅助生产场景下做到的故事剧本，电商场景下的商品文案及图片，增长场景下的 posts 文案，商业化场景的广告文案及 AI 模表特效等等。最后，在推荐算法方面，AI 也可以帮助我们提升对于短视频和直播内容的理解，从而在推荐算法侧做出更好的匹配，提升内容推荐的 ROI。 Now I'd like to share our thoughts on AI's first potential application scenarios in short videos, which are also Kuaishou's current focus and direction. Firstly, in terms of search, ChatGPT-like models can expand the search boundaries beyond the current short video search within the platform to encompass the entire Internet. It can also provide improved search summaries and Q&A through content generation to enhance the user's search experience. Secondly, AIGC can assist in the generation of graphics, texts and videos, lowering the barrier to content generation and empowering users to create high-quality and more diverse content. It can be utilized in a wide variety of other scenarios. Some of these scenarios include assisting in the production of story scripts, developing product advertising copy, and generating AI-powered special effects for video. Lastly, regarding recommendation algorithms, AI can enhance our understanding of short video and live streaming content, enabling better matching through recommendation algorithms and improving the ROI of content recommendations. 总 之 ， 我 们 相 信 短 视 频 平 台 能 够 充 分 受 益 于 AI 技 术 浪 潮 ， 而 快 手 也 会 在 合 理 有 效 配 置 人 力 和 资 源 投 入 的 同 时 ， 持 续 推 进 大 模 型 的 开 发 训 练 ， 并 积 极 探 索 大 模 型 与 各 业 务 场 景 的 融 合 机 会. In summary, we believe the short video platforms can fully benefit from the advances in AI technology. As such, Kuaishou will persistently drive the development and training of LLMs while ensuring rational and efficient allocation of manpower and other resources. We will also actively seek out opportunities to integrate LLMs into diverse business scenarios. Thank you back to operator.