Thank you for standing by. Welcome to Kingsoft Corporation Fourth Quarter 2025 and Annual Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Ms. Yinan Li, IR Director of Kingsoft. Please go ahead. Thank you, operator. Ladies and gentlemen, good evening and good morning. I would like to welcome everyone to our 2025 fourth quarter and annual results earnings call. I'm Li Yinan, the IR Director of Kingsoft. I would like to start by reminding you that some information provided during the earnings call may include forward-looking statements, which may not be relied upon in the future for various reasons. These forward-looking statements are based on our information and the information from other sources, which we believe to be reliable. Please refer to the other publicly disclosed documents for detailed discussion on risk factors which may affect our business and operations. Additionally, in today's earnings call, the management will deliver prepared remarks in both Chinese and English. A third-party interpreter will provide a consecutive interpretation into English. During the Q&A session, we will accept questions in both English and Chinese with alternating interpretation provided by the third-party interpreter. Note that the translation is solely to facilitate communication during the conference call. In case of any discrepancies between the original remarks and the translation, the statements made by the management will prevail. Having said that, please allow me to introduce our management team who joined us today. Mr. Zou Tao, our Executive Director and CEO, and Ms. Yi Li, our Acting CFO. Now I'm turning the call to Mr. Zou. 大家好，欢迎参加金山软件二零二五年第四季度及全年业绩电话会。二零二五年集团坚持技术立业，着力提升核心能力。金山办公持续聚焦AI协作国际化的核心战略，深耕AI办公赛道，围绕个人及企业级用户全场景办公需求，打造面向未来的智能办公产品。网络游戏业务方面，持续深耕武侠经典IP，同时积极拓展多元品类与全球市场。 Hello, everyone, and thank you all for joining Kingsoft's 2025 first quarter and annual results earnings call. In 2025, we remained committed to technology empowerment and focused on enhancing our core capabilities. Kingsoft Office Group continued to prioritize its core strategy of AI collaboration and internationalization, deepen its practice in the AI office market and the development of future-oriented intelligent office products tailored to the full scenario office needs of both individual and enterprise users. In the online game business, we further deepened our expertise in classical IP and actively expanding into diversified game categories and global markets. 2025年集团总收入为人民币96.8亿元，同比下降6%。其中办公软件及服务业务总收入为人民币59.3亿元，同比增长16%，保持稳健增长的态势。网络游戏及其他业务总收入为人民币37.5亿元，受去年同期较高基数以及现有游戏流水下滑的影响，同比下降28%。2026年初，鹅鸭杀上线，取得良好的市场反馈。上线后累计新增用户突破三千万，验证了我们在新品类拓展的能力，为游戏业务注入新的增长动能。 In 2025, the group's total revenue reached RMB 9.68 billion, representing a year-on-year decrease of 6%. Among this, revenue from the office software and services business recorded revenue of RMB 5.93 billion, up 16% year-on-year, and maintaining steady growth. Revenue from the online games and other business amounted to RMB 3.75 billion, up 28% year-on-year, primarily due to the high base in the same period last year and the decline in revenue from existing games. After release in early 2026, Goose Goose Duck has received a positive market reception and surpassed 13 million cumulative new users. This demonstrated our potential is in expanding into a new game genre and injected fresh growth momentum into the online game business. 下面我向大家具体介绍2025年全年及第四季度的业绩情况。2025年金山办公持续推进AI协作与国际化核心战略，全年总收入达59.3亿元，同比增长16%。四季度收入17.5亿元，同比增长17%。在AI进展方面，并行推进Office AI重构升级与AI Office原生探索。一方面围绕现有的WPS主件体系推进全面智能化升级，重构全场景办公体验。另一方面，探索以智能体为核心的原生办公形态。办公智能体WPS 灵犀，已迭代升级为AI办公全能伙伴，率先开启办公智能时代。在协作方面，WPS 365以AI为核心，完成全域升级，从技术框架、协作体系、智能检索、数字员工生态等多维度系统布局，全方位赋能企业数字化转型，提升办公协同与运营效能。同时，在国际化布局方面，我们也在稳步推进。WPS国际个人版完成产品升级与海外节点部署。WPS 365国际版已具备全球一体化办公能力。 Now I will walk you through the business highlights of the full year and fourth quarter 2025. In 2025, Kingsoft Office Group continues to advance its core strategy of AI, collaboration, and internationalization. Total annual revenue reached RMB 5.93 billion, up 60% year-over-year. Fourth quarter revenue reached RMB 1.75 billion, also up 17% year-over-year. The company is pursuing a dual-track approach, encompassing Office AI reconstruction and upgrade, and AI Office native exploration. On one hand, it's driving a comprehensive intelligence upgrade across its existing WPS component suite to reshape the full scenario office experience. On the other hand, it is exploring an agent native office paradigm with its Office AI agent WPS Lingxi, evolving into all-around AI office companion, marking an early entry into the year of Office AI agents. WPS 365 have undergone a comprehensive AI-driven upgrade, establish a multi-dimensional framework that spans technology infrastructure, collaborative system, and intelligent search, and digital employee ecosystems comprehensively empowers enterprises in their digital and intelligence transformation, while enhancing office collaboration and operational efficiency. The company's international expansion is progressed steadily, with completed product upgrades and overall model development, now offering global integration office capabilities. WPS个人业务方面，用户规模稳步扩大，海内外业务双线齐头增长，全年总收入36.3亿元人民币，同比增长10%。四季度延续增长趋势，实现收入9.8亿元人民币，同比增长提速至14%。国内累计年度付费个人用户数达4,615万，同比增长11%。截至2025年底，WPS AI国内月活用户已超8,000万，同比增长307%。WPS AI服务产生的日均token消耗量超过2,000亿，同比增长超12倍。海外累计年度付费个人用户数大幅增长，霸屏用户数增长亮眼，海外PC版月活跃设备数达4,247万，同比增长54%。 For WPS individual business, the user base continued to expand steadily, with both domestic and international operations achieving quality growth. Total annual revenue reached RMB 3.63 billion, up 10% year-over-year. The growth trend continued in the fourth quarter, with revenue reaching RMB 960 million, the year-over-year growth rate accelerating to 14%. The cumulative number of annual paid individual users in domestic 6.2 million, up 11% year-over-year. By the end of 2025, WPS AI's monthly active users have surpassed 18 million, presenting a year-over-year increase of 307%. In overseas markets, the cumulative number of paying users grew substantially, with particularly stronger growth among large-scale users. The monthly active devices for the overseas PC version reached 42.5 million, up 54% year-over-year. WPS 365业务方面继续保持高质量高速增长，全年总收入达7.2亿元，同比增加65%。四季度收入2.4亿元，同比增长63%，已经连续四个季度保持60%以上的同比增长。我们以一体化、智能化、国际化为核心导向，持续推进产品及服务的升级迭代，推出行业专属版本，同时持续巩固央国企领域客户的优势。加速拓展民营企业、外资企业及地方国企市场，同步推进渠道生态建设，进一步提升产品的市场影响力。2025年，WPS 365不断完善数字员工生态布局，推动AI技术在办公场景的部署。官方数字员工已实现规模化标准化交付。2026年初，WPS 365正式揭露了Open Cloud能力，为企业协同办公提质增效注入新动能。此次功能融合进一步丰富了我们对AI办公生态的布局。 For WPS 365 business, we maintain high quality and rapid growth. Total annual revenue reached RMB 720 million, up 65% year-over-year. Fourth quarter revenue was RMB 210 million, also up 16% year-over-year. We continue to advance product and service upgrade guided by the core principle of integration, intelligent, industry-specific editions. The company's position is further consolidated among central enterprises, and our sales expansion into private enterprises, foreign-invested enterprises, and local state-owned enterprises. We also advanced our China ecosystem development to further enhance its market strength. I n 2025, WPS 365 continue to improve the use of AI technology in all these scenarios. Our official digital employee has already achieved a large-scale standardized delivery. In early 2026, WPS 365 officially integrated Open Cloud capabilities, injecting new momentum into improving the quality and the effectiveness of enterprise collaboration and office work. This intelligence further enriched our AI Office ecosystem. WPS软件业务方面，全年收入14.6亿元，同比增长15%。四季度收入5.4亿元，同比增长16%。我们积极参与中央及地方政企客户国产办公软件招标，在流式及版式文档市场的占有率继续保持领先地位，并持续推进政务数字化项目落地，支持多地数字平台建设，有效赋能政府办公智能化升级。 For WPS software business, total annual revenue reached RMB 1.46 billion, up 15% year-over-year. Fourth quarter revenue reached RMB 530 million, up 16% year-over-year. We actively participated in biddings for domestic office software by central and local governments, continue to maintain a leading share in both flow layout and state layout document software market. We continue to advance the implementation of government digitalization projects, support the development of digital platforms in multiple regions, and effectively empower the intelligent upgrading of government office operations. 四季度，旗舰游戏剑网三通过技术升级，提升外装表现，国风设计获得玩家广泛好评。2025年底完成的版本调优及服务升级已获市场正向验证。我们将进一步加强对游戏玩法与进行体验的投入。经典剑侠系列端游及手游剑侠世界起源，持续迭代内容与版本，海内外运营保持稳健。 In the fourth quarter, our flagship PC game JX3 Online enhanced its custom design through technological upgrading, and its aesthetic style was widely acclaimed by players. The version optimization and service upgrade is completed at the end of 2000, received the positive market data, and we will further increase investment in gameplay. Our classic JX series PC games and their segment of mobile game World of Swords: Origin continue to interact with this content, stable operations in both domestic and overseas markets. 社交推理游戏鹅鸭杀于2026年1月正式上线。上线首日新增用户突破500万，上线后累计新增用户突破3000万，连续登顶iOS的免费榜。凭口碑驱动自然流量，并穿透泛社交圈层。愤怒的小鸟系列两款休闲益智游戏也获得了版号，预计2026年国内上线，进一步丰富休闲产品矩阵。治愈系田园生活模拟游戏星沙岛于2026年2月开启抢先体验，凭借其独特的画风与玩法，在全球核心玩家圈全程建立起良好口碑。后续我们将结合玩家反馈，积极优化产品，为下半年的正式版上线奠定基础。 Social deduction game Goose Goose Duck officially launched in January 2023. Over 5 million new users on launch day. The past 13 million cumulative new users and ranked number one on iOS free chart for most of the and by word-of-mouth and the original classic benefited both social circle. Two titles from the Angry Birds series also received the publishing license and our titles games portfolio. Starsand Island, our highly seasoned pastoral life simulation game began early access in February 2023. Sale and gameplay. The game established a stronger reputation among all players worldwide. Going forward, we will actively optimizing the product based on player feedback to lay a solid foundation for the official version launched in the second half of the year. 未来，金山办公将深化AI agent技术在办公全场景的应用落地，强化WPS 365作为智能协作平台的核心竞争力，并加速推进全球化战略布局。网络游戏业务将继续聚焦精品内容开发与全球化发行，持续强化经典IP生命力，同时积极推动新品类的成长，实现可持续发展。我们将不断深化技术创新与商业化布局，集体拓展全球市场机遇，持续为股东创造长期价值。接下来有请CFO李奕为大家介绍四季度及全年财务业绩。谢谢。 Looking ahead, Kingsoft Office Group will deepen the application of AI agent technology in the office environment, strengthen the WPS 365 as an intelligent office and accelerate its international strategy. For online games business, we will continue to focus on premium content development and global publishing. We will dedicate to the development of classical IP and foster the growth of new game genres to achieve sustainable growth. We will deepen technological innovation and commercial expansion, actively expand global market opportunities, and create long-term value for our shareholders. Next, I would like to invite Miss Yi Li to introduce the financial performance for the fourth quarter and annual. Thank you, Tao Zou and Li Yinan. Good evening and good morning, everyone. As for the financial results, I'm starting with the Q4, using RMB as the currency. Revenue decreased 6% year-on-year and increased 8% quarter-on-quarter to RMB 2,680 million. The revenue split was 67% for office software and services, and 33% for online games and others. Revenue from the office software and services business increased 50% year-on-year and 50% quarter-on-quarter to RMB 1,750 million. The increases were primarily attributable to the growth across three principal businesses of Kingsoft Office Group. The substantial increase of WPS individual business was primarily driven by the expanded number of paying subscribers, attributable to continued integration of AI capabilities and improvements in intelligent office experience. The strong growth in WPS 365 business was mainly driven by the deep integration of document, AI, and collaboration capabilities, along with continued customer expansion among private and local state-owned enterprises. The growth in WPS software business was mainly supported by sustained demand from government and enterprise clients, further consolidating our leading position in the flow layout and fixed layout document market. Revenue from the online games and others business decreased 33% year-on-year and 3% quarter-on-quarter to RMB 868 million. The decreases were mainly due to declined revenue from certain existing games. Cost of revenue increased 5% year-on-year and decreased 1% quarter-on-quarter to RMB 471 million. Gross profit decreased 8% year-on-year and increased 10% quarter-on-quarter to RMB 2,148 million. Gross profit margin decreased by 2 percentage points year-on-year and increased by 2 percentage points quarter-on-quarter to 82%. Research and development costs increased 30% year-on-year and 6% quarter-on-quarter to RMB 953 million. The increases were primarily driven by increased headcount and AI-related expenditure, reflecting our strategic focus on advancing AI and collaboration capabilities. Selling and distribution expenses increased 36% year-on-year and decreased 80% quarter-on-quarter to RMB 462 million. The year-on-year increase was mainly due to high market expenditures in both office software and services and online games business. The quarter-on-quarter decrease was mainly due to high bets from promotions for new game launches in the prior quarter, partially offset by increased spending on marketing activities for Kingsoft Office Group. Administrative expenses increased 33% year-over-year and 40% quarter-over-quarter to RMB 202 million. The increases were mainly due to higher personnel-related expenses and increased depreciation arising from the completion and operation of our Wuhan campus. Share-based compensation costs increased 55% year-over-year and 15% quarter-over-quarter to RMB 92 million. The increase was mainly due to the grants of awarded shares to select employees of certain subsidiaries of the company. Operating profit before share-based compensation costs decreased 48% year-over-year and increased 70% quarter-over-quarter to RMB 606 million. Net other gains for the fourth quarter of 2025 were RMB 890 million, compared with losses of RMB 74 million for the fourth quarter of 2024 and gains of RMB 13 million for the third quarter of 2025 respectively. The gains in this quarter were mainly due to that we recognized the gain on deemed disposal of Kingsoft Cloud as a result of the dilution impact of the issue of new shares of it. Share of losses of associates were RMB 132 million for the fourth quarter of 2025, compared with losses of RMB 148 million and profits of RMB 5 million for the fourth quarter of 2024 and the third quarter of 2025 respectively. Income tax expense was RMB 220 million for the fourth quarter of 2025, compared with expenses of RMB 212 million and RMB 66 million for the fourth quarter of 2024 and the third quarter of 2025. As a result of the reasons discussed above, profit attributable to owners of the parent was RMB 975 million for the fourth quarter of 2025, compared with the profit of RMB 460 million and RMB 230 million for the fourth quarter of 2024 and the third quarter of 2025. Profits attributable to owners of the parent, excluding share-based compensation costs, was RMB 1,026 million for the fourth quarter of 2025, compared with the profit of RMB 496 million and RMB 277 million for the fourth quarter of 2024 and the third quarter of 2025. The net profit margin, excluding share-based compensation costs, was 39%, 18%, and 11% for this quarter, the fourth quarter of 2024 and the third quarter of 2025 respectively. For the year 2025. Revenue decreased 6% year-over-year to RMB 9,683 million. Office software and services made up 61%, increased 60% year-over-year to RMB 7,929 million. Online games and others made up 39% and decreased 28% year-over-year to RMB 3,754 million. Gross profit margin decreased by 2 percentage points year-over-year to 81%. Operating profit before share-based compensation costs decreased 47% year-over-year to RMB 2,072 million. Profit to owners of the parent was RMB 2,004 million for the year of 2025, compared with the profit of RMB 1,752 million for last year. The group had a strong cash position towards the end of 2025. As at 31 December 2025, the group had cash resources of RMB 27 billion. Net cash generated from operating activities was RMB 2,292 million and RMB 4,787 million for the years ended 31 December 2025 and 31 December 2024 respectively. Capital expenditure was RMB 342 million and RMB 426 million for the years ended 31 December 2025 and 31 December 2024. That's all for the introduction of our operational and financial results. Thank you all. Now we are ready for the Q&A section. Thank you. Thank you. We will now begin the question and answer session. As a reminder to ask a question, please press star one-one on your telephone and wait for your name to be announced. To withdraw your question, please press star one-one again. We will now take our first question from the line of Liping Zhao of CICC. Your line is open, Liping. Please ask your question. 周总、李总晚上好，感谢接受我的提问。我这边问两个关于游戏的问题。首先第一个是周总在去年底兼任西山居的CEO之后，对于整体游戏业务未来发展的战略有没有什么调整？那未来来看是否有AI落地增效的这个空间或者可能性。第二个问题是关于我们那个参与发行的这个鹅鸭杀，我们看到整个游戏的热度还是不错的，能否分享一下目前的用户规模以及留存情况，也想了解一下后续商业化的节奏，以及对整体收入利润贡献增量的这个想象空间能有多大。好，我自己快翻译一下。 Zou and Mr. Li. Thanks for taking my questions. I have two questions on the gaming business. The first, after Mr. Zhou recently took on the role as the CEO of 西山居, what strategic adjustments have been made regarding to the future development of the gaming business? Are there any opportunities or possibilities for implementing AI to improve efficiency in the game development? Second, we have observed that Goose Goose Duck is performing well in terms of popularity. Could you share some insights on the current user base and retention matrix? I also like to understand the timeline for future monetization and potential incremental contribution to the overall revenue and profit. Thank you. 鹅鸭杀呢，从一月七号上线，累计截止到新增用户数肯定是超过三千万了。然后目前呢，基本上就是DAU稳定在三百万上下，这是目前的一个成绩。当然我们现在正在规划，春节后一直规划到了暑期的一系列版本，我们还是希望通过一个阶段、一个阶段能够去持续稳定地这个…… 把这个游戏往上做。我们中长期考虑这款游戏，第一个呢，是通过上线到现在的留存数据来看，我们有信心，通过后续版本的持续迭代，争取把这个DAU应该有望做得更高。这也是我们的第一优先级，就是说白了就先能做人数，我们先做人数。然后从营收角度看呢，这不是我们目前的重点。实际上整个产品上线运营之后呢，基本上在收入这块我们没有刻意去做它。然后依照此类游戏的一个行业的平均表现吧，我们认为未来在付费率以及UP值上都依然会有很大的空间。所以呢，简单说这个游戏上线到现在肯定是超出了我们的预期，甚至也超出了市场的一些预期。我们认为未来还有很大的成长空间，这里头还包含这个，未来我们还要去海外发，进一步去拓展这个游戏的空间吧。所以呢，我们总体策略就是先把用户数持续稳定地做上去，然后再逐步开始进行商业化的挖掘。所以现阶段的重点呢，是在第一阶段的重点我们还是在保证这个版本稳定、服务品质优良的前提下呢，通过各种版本吧或者运营，把这个在线人数先再进一步持续做高，好吧。这就是基本上相当于把我们的这个策略介绍了一遍。当然更长远，基于这款IP如何拓展周边的，或者说这个叫IP衍生的，我们也有很多想法，但是呢，那个都把它放到未来吧，当务之急就是稳定运营，持续把人数接着再创新高。好，先把这个翻译一下。 First, I would like to talk about the Goose Goose Duck. Actually since we have launched on the 7th of January, we have over 30 million new users. Up to now, generally speaking, the total users could be quite stable at the 3 million up and down. We are actually during this planning budget from the Spring Festival up to the summer holiday. We're gonna prepare a series of different versions and with different stages, and we would like to have a stable and continuous game. This is actually for the mid- and long-term consideration for this game that firstly through this launch, we could actually have some of the remaining data, and we have confidence that for this continuous versions we could generate, and so we could make the DAU higher. This is actually the most important priority for us, and it means that we need to make enough users. Once the product has launched for their income perspective, we didn't do that much work on it. Because for the industry, for the game industries, the average performances in the future, we will consider about the payable rate and also the value. We still have a very big space for it. For this game, since launch up to now, the total performances is more than like over our expectation. In the future, we still have a very big space for the growth, and in the future we also would like to launch in the game space and from the user's perspective, like we would like to make it stable and make it continuously stable. Then step by step taking the commercialization possibilities. This is the first stage is that we need to make sure this version is stable, have a good quality service, and also with different version, make sure that the total quality of the users online is good enough and then furthermore make it higher. In the long term perspective, for this IP, we're going to consider how to have like expand different like surroundings, products and also for the other accessories. We have different ideas for it. Let's put it in the future. Currently the most important thing is that have a stable operation and make the users like have a higher user quality. 第一个问题比较复杂，我尽可能简单讲。就是我是从去年十二月一号，又兼任了西山居的CEO，已经过去了三个多月了。现在总体的思考是这样啊，首先肯定是对于我们经典的剑侠系列，也包括剑网三，这肯定是整个西山居的业务的底盘。说简单一点，就是要持续加大对这个基本盘的投入。过去这么多年，我们还是有很多忠实于这个IP的玩家和粉丝，虽然受外部竞争环境的一些许影响啊，但总体来讲呢，这个用户数，包括活跃用户还是非常稳定。所以呢，我们认为把现有用户服务好，提供更好的体验和品质，更高品质的游戏内容，这个肯定是我们最基本的要去保障的。所以这是作为第一条。 第二条实际上就是，把一些不具备战略性的项目，我们还是会适度地进行调整和收缩。这样的话，应该说是腾出兵力吧，放在我们认为从中长期甚至更长期对西山居有战略价值的产品方向上来。这个目前暂时不方便对外去谈，但实际上我们是这么在部署的。到五月份，下个季度来沟通的时候，可能就会跟大家正式地去介绍。这是第二块。 第三块呢，其实是跟立平这个问题的后半部分是相关的。实际上我的观点是，一个AI全新的时代已经到来啊，还不是说即将到来，尤其是对于我自己在这个游戏内容创作这个行业待了很多年，我自己认为是一次大变革，它绝对不是仅仅的增效啊或者怎么样，实际上是会颠覆过去的内容创作模式。所以呢，自从我三月一号接手以来呢，应该是在全面落实AI，具体举措呢，就是员工的思想层面的不用说啊，更实在的是在用这个打造整个西山居基于AI创作的这么一个平台，未来基于这个平台，我们会弱化工种，就更多突显创意的价值。说简单一点，其实就是说通过AI创作平台的建设，未来更多的是创意者在这个平台上去创作更多更有意思的内容，甚至我们内部会定期地进行评选，在内部创作之后呢，涌现比较优秀的项目了，我们会集公司之力再去把它商业化推向市场。 所以呢，就简单讲，其实就是，我们也认为未来整个行业的内容创作的组织形式会发生根本性变化，甚至包括工种也不会像以前那样，这是我非常坚信的一个观点。基本上都是围绕在这个AI创作平台上，人人都是制作人，人人都是内容的创作者。你甚至可以简单理解成就是全民创作的时代到来了，这是我非常坚信的一个观点。实际上就是随着这几年在内容创作的各种基于AI工具的完善和丰富，我觉得这一点到了今年已经应该说是在整个行业也好，整个产业也好，已经是共识之一了。所以我也认为就是这个时机点也基本上是成熟的。 这第三点，其实对于整个西山居是更为有战略意义的一点。虽然去年游戏啊，我们的新游戏遇到点上线之后确实是不太预期，一些老的游戏也有一定的下滑。但我们自己内部的总结分析来看呢，恰好是处于一个除旧迎新的时机点上。我相信啊，就是随着我们在这一步的完成，可能会迸发出比以前更有想象空间的…… 或者说，在未来这种模式下，我认为可能会迸发出更高的生产效率和效能。所以有的时候，反正就是说坏事也不一定真的是坏事，没有去年的一些困难和挫折，也许这种变革或者说改革也许就不会那么彻底。反正我觉得恰好是让我们迎接一个新时代的一个开端吧。这是我想表达的，好吧？翻译一下。 [Foreign language]. Actually for this first question, it is quite complex. I would like to make it simplified as that since I become the CEO on the first of December last year, up to now is already three months passed. Generally speaking, firstly is for the service of the fate of the souls, and also for the JX3, for their business is actually the basis of our business. We would like to continue for the investment of the basic space. In the past few years, we are always have a lot of like very high standards although we have collected some impacts of the external competition and impact, but generally speaking, their customer quality is quite stable. That is why we believe that. Currently the customer service we're gonna provide better service for the customers and higher quality for them, especially for the content. This is actually our guarantee, the basic guarantee. Secondly is that we need to make some projects which doesn't have like strategic weight. We need to do some adjustments and also maybe shrink that business. It means that we could have enough space, enough ability to make it into the middle and long-term strategy, especially for them, we're gonna have some strategic value. Currently it's not that convenient for me to release some of the information about it, but probably in May when we do this quarterly report, it's gonna be more convenient for me to have an official introduction for it. Thirdly is about relevant to the second part of the question is that the AI is gonna be the completely new area. It's already arrived, especially for ourselves. We can say is that for the industry of the game, actually for the product, for the manufacturing, the production of the game, in many years, we have a lot of like revolution. It's not just to have high efficiency, but this is actually completely change the way of the mode production. Since I become the CEO on the first of December last year, and we could completely carry out of the AI, the different policies, especially not only for the software thinking and also the platform of the AI building. In the future, we're gonna base on this platform that doesn't have that much like differentiation for the position, but we're gonna like highlight the innovation through the platforms of AI construction. In the future, mostly is that the creator is gonna create the game on the platform. They're gonna have a lot of the creations. They're gonna have some meaningful content. Internally, we're gonna select some excellent projects and commercialize and promote it into this market. Simplified is that we think in the whole industry of automation, the content creation automation will completely change, and also the way of working will be completely changed. Basically based on the platform creation, on the AI, everybody is gonna be a producer and everybody is gonna be the creator for content. This is actually everybody could do the creation. This is the time. The time has arrived. I have strong confidence for it. In the past few years, the AI tools have completely like become more mature. Especially this year, the whole industry for the products, we have no doubt about it. AI has already come. That is why I think that the time is already mature. Thirdly is for Seasun. They actually have a strategic meaning. Last year for the game we launched, it doesn't reach our expectation. Also the performance of the old game is a little bit slow. This is actually we analyzed internally and made a conclusion. This is actually a good point for us because we could deduct some of the old things and also welcome something new. I think that as when we like move forward of business that we're gonna have more space, and this is gonna be our opportunity for Seasun. In future, under this mode, we're gonna have a higher product efficiency. That is why I think that sometimes the bad thing is not actually a bad thing. Like from the challenges and difficulties last year, we actually have some like challenges facing. This is gonna let us to get to welcome this. A new page for season. Thank you. We will now take the next question from the line of Linlin Yang of GF Securities. Please ask your question. Linlin, your line is now open. 好的，周总、易总晚上好。我想请教两方面问题。第一个是关于AI方面。首先AI方面的话，我想问一下，我们就是软件这边之前成立这个AI业务团队嘛，然后目前的进展情况，然后之前也有提到，就是包括行业模... 然后也有在推进，想问一下最新的这个推进的一些情况。好，然后第二个问题就是还是关于行业，以及AI对咱们的，就是包括软件行业，包括对于金山办公这个具体的比如说影响啊，然后以及说，就是我们，就是你怎么看，就是这些观点嘛。因为最近关于这个AI对于软件行业的这个观点，其实对市场影响也比较大吧，可能对咱们办公这一块直接的影响没那么大啊，那就基于这个行业的情况下怎么去看。然后那可能也服务于这些企业客户吧，那企业客户他的对AI的这些主要的需求，然后我们现在服务于他，比如说我们还需要补齐哪些能力，对吧？然后还有包括这个，近期小米也发了关于参数量的大模型，那这个大模型是不是就是对办公这一块，是不是也会有一些更深入的一些赋能？然后这个是第二个问题。第三个问题就是，关于那个，因为刚才业务这一块也都说得比较清楚，就想问一下我们今年的费用啊怎么去展望。因为去年，去年的话可能会有一些原因吧，有一些费用会比较高嘛，那今年…… 的费用，还有研发费用怎么去展望。 [Foreign language]. language]. I have three questions. The first is, what is the progress of our AI business as well as the development and commercialization of industry-specific models and products? The second question is about the AI industry. Recently, the view that AI will displace traditional software while the core business of Kingsoft Office, WPS has not been materially affected so far, but there is uncertainty regarding the expansion of value-added service. What is your opinion about this question? When you serve enterprise customer, what are their key demands for AI? What capabilities do you need to strengthen? Recently, Xiaomi has MiMo-V2-Pro, a trillion-parameter large language model as well as a line of associated models. In what ways will the MiMo model further empower and enhance the WPS business? [Foreign language], thank you. 前两个问题我来回答，第三个黎毅帮忙回答一下。第一个相对简单，其实就是，金山软件这边从去年四月份成立了这个AI产品中心，进展情况，包括今年的展望。去年成立之后，我们更主要的工作，是配合金山云这边在一些具体落地场景中的一种协同性，其实也是，应该说是AI落地企业的一些实践吧，包括在法律场景、金融场景等等，实际上已经有，当然有些我们金山云那边已经披露了，像披露江湖，中行的那个项目，我们已经落地交付了，已经在跑了，像金山小法等等，其实在我们内部，包括在一些公司，其实也叫合同审核，这些已经在用了。所以去年总结一句话，其实就是说要真正到一些行业当中去，去摸索AI怎么真正赋能行业的这个路径。今年的重点其实是我们要更深入，尤其是随着模型能力的提升，当然也包括像今年这个OpenAI Operator的出现，这个风靡全球，其实也是提一个新的，应该说是有一个启发，就是说AI赋能于个人也好，赋能企业也好，它有很多种不同的形式都能去实现，不一定是要按原有的那种逻辑去思考。所以今年最核心的其实就是，结合整个AI的发展形态，我的要求就是还是要聚焦在某些领域、某些行业去深耕。其实这就是今年跟去年最大的区别。去年叫做尝试一些赛道去摸索AI落地的这个路径，今年就是要具体沉到某一两个领域去，真正做深做透。这是AI产品中心的一个进展。要么先把这个先翻译一下。 [Foreign language]. We would like to answer the first two questions and then like Michelle is going to answer the third question. This is actually quite true. This is the things last April we have set up the AI Product Center and the year we actually have the full half we would like to cooperate with the Kingsoft Cloud to have some collaborations altogether. Actually the Kingsoft Cloud we already have delivered some of the products like for example, the Kingsoft WPS Office and also internally the target for the like assessment. We already use some of the products and we make a conclusion since last year that we would like to really get into this typical industry and trying to figure out the roadmap for AI how to empower different industries. The key point of this year is that we need to target the element, the target they aim, especially like we can see that this year OpenAI has shown up and it's very popular the whole world. This is actually a great reminder for us. AI is going to empower different people. AI could be able to empower for enterprises and they have different ways to show up and all of these could be able to be realized. We will not only need to be based on their initial thinking. Actually, the key things of this year is that we need scenario and also to focus on different industries to get into that industry. This is actually the biggest differences between last year and this year is that last year we are trying different roads and trying to localize in different ways. Maybe that's AI works for that industry, but this year we have to get deeply into a typical industries in probably 1-2 different regions and then make actual work. This is actually like the AI Product Center's developments and also the progress. 第二个问题，我理解，就是其实是想问AI对软件行业的影响，或者说进一步AI对办公软件行业的影响。这样，包括近期也有说SaaS已亡和说AI吃掉软件等等的说法。我先谈我的观点。其实从2023年开始，我在内部就谈过，并且到现在也都没变。我说基于大语言模型的AI来了，其实我更喜欢用数字系统，所有的数字系统都会基于AI重构。所以到今天来看，这个趋势是越来越明显。所以你问我怎么看？我认为我2023年就是这样看的，就是几乎都会重构，都会以AI或者以大模型为核心了。只是随着这几年AI不断的能力不断地增强，这点被越来越多的大家所认可。所以也就是说，简单说对行业的影响，就是所有的数字系统都会重构。至于近期有所谓的AI吃掉软件这种观点，说实话我是觉得这种描述是不准确的，所谓的软件，是相对于过去硬件来说的，就是hardware，就是software。当然今天我们可能叫AIware。实际上我更喜欢用数字系统。我结合我刚才讲的第一个观点，就所有的数字系统它都会基于AI重构。你说它是软件，它当然是软件，如果你相对硬件来说，它依然是叫软件，只是你说豆包是个软件吗？它也是个软件，只是说今天的软件跟以前的软件，它无论是从它的功能的强大性，还是从它使用交互、人机界面等等，它都跟以前大家理解的软件不一样了。所以，如果你要是说传统软件，你说AI软件会吃掉传统软件，这种描述是对的，但你说AI吃掉软件这种描述是不科学也不精确的。所以，这就是我的观点，就是2023年以来我就是这个观点。那对于我们办公的影响，实际上从2023年开始AI出现，我就谈过我的观点，我说我们先是做Office AI，但是现在我们又改了，就是那个时候我是说先做Office AI，说白了什么呢？把AI往后放。什么意思？其实那个时候是AI用来增强我们的Office，然后我也说了，我们未来一定是AI Office。当然我们现在把这个改成了Office，就说实话也就是2023年的提法，就是说我们先是Office AI，然后一定会逐渐向AI Office过渡。这两个区别其实就跟我刚才讲的第一个问题是一样，刚开始我们会用AI，AI能力还不够强，我们会用AI去增强我们原有的Office的这个体系，但随着AI的越来越强大，就必然就会逐步转向对我们所谓的Native AI的这个Office往这个方向发展。实际上办公从2023年开始，这个灵犀就发布这个WPS AI 1.0、2.0、3.0到去年的灵犀，其实就是这么一个进化的过程。所以，也就是说从2023年AI大模型开始普及，我们的金山Office就一直在进化，进化到了2026年，已经非常明确的就是说，这个比重吧，从2023年这个Office AI可能是占大头，但到2026年我们的所有的重心都是叫做AI Office了。所以，这是我说的第二点，就是我们怎么去适应这个时代的，也就是从2023年开始。所以刚才在第二会我也谈过我们的WPS的AI会员去年暴涨307%，也是得益于我们去年下半年开始灵犀的这个发布。这是你这个问题的第二部分。第三部分，就是小米的MiMo-V2-Pro，这个是毋庸置疑的。其实，我无论是在集团金山软件的这个沟通会上，还是在云的沟通会，我都表达过，我说这个基于一加N的这个，这个一就是指的小米的MiMo模型，因为这个是我们自家的。我也多次谈过，金山跟小米是一个AI的方阵。我说金山自己不会去做大模型，但小米会做。实际上随着它的V2 Pro的发布，尤其最近一两周的表现，包括它的匿名的表现，其实大家也可以看到，实际上小米本身这块的能力也在提升，而这本身也是我们整个金山系的未来最核心的竞争力之一，我们基于我们自身的模型去加强我们自身这个生态的AI生态的建设。所以，基本上就是毋庸置疑的，甚至随着时间的推移，整个金山系的这个应用生态会越来越多，这个小米模型的比重会占比越来越高。翻译一下，快速翻译一下。 I would like you to answer this second question. Based on my understanding, the influence of AI. If they are saying that AI is gonna eat up software, it's not so. I don't personally agree with this statement, because as we know, the large language model, AI has brought that we would like to use the digitalization system to restructure the AI currently. This trend is quite significant recently, and since 2023 we have the restructure. I can see that AI is crucial and as the development in the past few years, AI has constantly strengthened and more and more been recognized by people. Simplified to saying that this is actually the whole restructure for the so AI could actually if we are saying that AI is going to eat up the software, the description is not accurate. Because the software is compared with hardware, what exactly software and hardware? Like this year you can see that AI scale, I would like to using like the digital assistant to expand that, especially for the basis on their basic on their AI restructure for the software, compared with the hardware, like for example, Doubao this is a software, right? But today we can see is that compared with the previous, they have a bigger function. They have the better interaction, also have more like different multiple functions and abilities, which we cannot imagine previously. This is actually our understanding. Traditional software, they are different, because the AI software could be replaced the traditional software, that is for sure. AI will not gonna eat up the software, because that is not scientific. This is my opinion since 2023. The influence for the office is that since 2023, AI has showed up. I discussed about my opinion. During that time, we can see is that the AI could be strengthen, like keep strengthen their ability in the future. That is why right now we have changed the name as the office, because 2023 we initially used Office AI, and then we used the change name as AI Office. This is constantly of my first question's answer is that initially the AI ability is not that strong enough. That is why we need to use the office to strengthen their AI ability. As the AI ability becomes stronger and stronger, like for example we have the Native AI office development since 2023, then WPS 1.0, 2.0 and 3.0, especially last year, we have launched the WPS Lingxi, and this is actually the constant development. Up to now, this year, 2023, 2026, it's significantly, like, clear that office AI is gonna be the big part, and so all of that is like AI office. This is second point, which is super for this time since 2023. Also for the WPS AI membership, since last year, we could increase to 307% since last year. The reason is that last year, the first half of last year, we have launched the Lingxi paid version. This is actually the second part to answer this question. Third part is about Xiaomi. Xiaomi has launched the MiMo-V2-Pro. No matter for the communication meeting with Kingsoft or the Kingsoft Cloud communication meeting, that is based on 1+N, that is Xiaomi's big model for MiMo-V2-Pro. For Kingsoft and Xiaomi, we are actually AI mixture. Xiaomi would like to do this big model, but Kingsoft will not. As time when we have AI launch, especially recently, Xiaomi has launched their own AI, and the performance is actually quite good. We can see that the ability of Xiaomi is increasing all the time, and the key thing is that we need to make our competition ability stronger and also to strengthen our AI ecosystem construction. As time goes by, the whole, like, Kingsoft service products could have, like, a very, competitive ecosystem together, like, development together with Xiaomi. Hello. Thank you for joining us today, and this will conclude our presentation for the 2025 first quarter and annual results earnings call. Thank you. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.