愛奇藝 (IQ) 2026 年第二季法說會：營業虧損收窄 80%

重點摘要

• 總營收達人民幣 63 億元，季增 1%，主要受內容分銷營收大增 90% 至人民幣 6.815 億元的推動。
• Non-GAAP 營業虧損自人民幣 1.486 億元收窄 80% 至人民幣 3030 萬元，使愛奇藝接近損益兩平。
• 會員服務營收主因季節性因素而季減 4% 至人民幣 40 億元。線上廣告營收為人民幣 12 億元。
• 營運活動淨現金流入從第一季的人民幣 1.864 億元增加至人民幣 3.396 億元。截至季末，現金、受限現金及短期投資總額為人民幣 41 億元。
• 海外會員營收年增 40%。巴西與墨西哥分別成長超過 215% 與 150%，而海外微短劇會員營收則成長超過 300%。
• 管理層將去中心化與 AI 應用列為優先事項，以在保持優質內容品質的同時，擴大內容供應、縮短製作週期並降低單位成本。

主要財務數據

截至 6 月 30 日，愛奇藝在預付款項及其他資產中，還記錄了來自 PAG 的 6.366 億美元應收本金。在其 1 億美元的股份回購計畫下，截至季末公司已斥資 2410 萬美元回購約 2160 萬股 ADS。

業務與營運表現

內容與會員服務

根據管理層引用的第三方數據，愛奇藝在長劇、電影及兒童內容領域保持最大的市佔率。其短劇市佔率自 3 月的 25% 提升至 6 月的 50%，首度躍居第一。

管理層指出，相較於長劇，短劇每分鐘的平均製作成本可降低 50% 以上，並將從製作到審核通過的時間縮短 30% 至 50%。

會員營收因季節性因素而出現季減。公司尋求透過針對性促銷與高級觀影選項提升變現能力。在 16 部劇集中推出的直通包推動總參與度成長近 80%。

AI 與創作者生態系

AI 與去中心化是愛奇藝戰略轉型的兩大核心要素。公司正從中心化的媒體平台，轉型為以創作者和使用者為中心的內容生態系。

愛奇藝創作者中心升級後，創作者數量與上傳量均有所成長。依內容類別不同，第二季日均上傳量較第一季成長 30% 至 500% 不等。

管理層表示，對適合的內容形式而言，AIGC 可將製作成本與時間縮短 70% 至 90%。今年截至目前，公司已依分帳模式推出 16 部 AI 生成的短劇。6 月份，AIGC 佔該平台微短劇不重複訪客數的 50% 以上。

應用策略因內容格式而異。管理層預期 AIGC 將成為微短劇與微動畫的主要供給來源。AI 也將更廣泛地應用於動畫、兒童節目、短劇及網路電影。至於優質長劇與院線電影，愛奇藝將保留真人拍攝、品質第一的做法，同時運用 AI 來輔助製作並降低成本。

廣告業務

與劇集相關的品牌廣告營收錄得雙位數的年成長。個人護理及醫療保健廣告也以雙位數的速率成長。

效果廣告恢復年成長。中小型廣告主營收強勁成長，其中 AI 應用、即時零售及電商屬於成長較快的廣告主類別。公司正運用升級的大模型來提高精準投放能力。

國際業務

海外會員營收年增 40%，且按管理會計基準計算，該業務維持獲利。巴西與墨西哥分別帶來超過 215% 與 150% 的成長。阿拉伯語市場的會員營收成長 85%。

微短劇是僅次於長劇的國際會員營收第二大貢獻來源。該類別的營收年增超過 300%。

公司還推出了多種語言的 AI 生成海外作品。管理層指出，部分原創作品在當季即回收成本。愛奇藝計畫透過內部製作與外部合作擴大供給規模，同時利用在地分銷、支付與平台合作關係來擴大會員基數。

風險與關注焦點

• 會員營收仍受季節性內容與訂戶行為模式影響，這反映在第二季 4% 的季減上。
• 儘管營業費用下降，內容成本仍季增 2%，這使得與 AI 相關的製作效率對於進一步提升獲利能力至關重要。
• 管理層坦承，由於情感、藝術與製作複雜度較高，優質長劇與院線電影採用 AIGC 的進度較慢。
• 國際市場的內容偏好與合作結構因市場而異。管理層表示，海外擴展仍將與單位經濟效益、營收品質及已被證實的獲利能力緊密掛鈎。
• 前瞻性陳述仍受愛奇藝提交給美國證券交易委員會 (SEC) 申報文件中所述之風險與不確定因素影響。

分析師問答亮點

AI 與去中心化將如何影響愛奇藝的商業模式？
管理層表示，這兩項策略應能相互強化：降低製作門檻可增加創作者參與度與內容供給，而更廣泛的去中心化生態系可提升使用者參與度。隨著時間推移，公司預期這些舉措將改善內容成本、營收品質、獲利能力及現金流。

AIGC 將在哪個領域推廣最快？
管理層認定微短劇與微動畫是最具 AI 原生特性的格式。動畫、兒童內容、短劇及網路電影預期也將比優質長劇和院線電影更快擴大規模。

愛奇藝為創作者提供什麼？
公司強調其受眾覆蓋率、工業化製作能力、收視數據、智慧財產權 (IP) 資源、分銷基礎設施與變現管道。其創作者支援體系包含製作工具、實體創作中心、培訓、資金支持與客戶服務。

海外營運模式是否可以複製？
管理層將泰國描述為結合華語劇集、在地化內容、持續行銷與在地合作關係的試驗場。公司打算在其他市場重用這些能力，同時針對在地受眾與分銷管道調整執行策略。

電話會議全文紀錄

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完整財報電話會議逐字稿

管理層陳述

Operator

Thank you for standing by, and welcome to the iQIYI Second Quarter 2026 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to Ms. Chang You, IR Director of the company. Please go ahead.

Chang Yu

Thank you, operator. Hello, everyone, and thank you for joining iQIYI's Second 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; Mr. Ying Zeng, our CFO; Mr. Xiaohui Wang, our CCO, Chief Content Officer; Mr. Youqiao Duan, Senior Vice President of our Membership Business, Mr. Xianghua Yang, Senior Vice President of International and Online Games Business; and Mr. Gang Wu, Senior Vice President of Brand Advertising business. Mr. Gong will give a brief overview of the company's 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 statements, except as required under applicable law.

I will now pass on to Mr. Gong. Please go ahead.

Tim Yu

Hello, everybody. In the second quarter, we continue to reinforce our core business, high-quality, diversified content powered by our industry-leading performance. According to in-license data, we maintained the #1 market share in each of the long-form drama, field and children's content categories. And for short-form dramas, we made a major pretty soon reaching #1 market share for the first time Financial performance also improved quarter-over-quarter. Total revenue -- total revenues grew sequentially and our non-GAAP operating loss narrowed substantially approaching breakeven. We are fully amounting our strategy -- strategic and transformation. First, we are shooting from a centralized media to decentralized, creator and user-centric social media ecosystem. AI can remittance and barrier content ratio turning what was once -- niche professional activity into a mass capability and triggering unparalleled search incontinent supply. Because transitional centralized models cannot accommodate the scale and diversity. We are upgrading our content acquisition and distribute mechanism to efficiently connect creators and audiences.

Second, we are taking an OEM approach on AI to revolutionize both live action pressure and pure AIGC. Our guiding principle is clear, maximizing cost efficiency without compromising quality.

Together, these each other like flywheel, AI rapid growth in content supply, which help us move faster to more decentralized model as we decentralize more creators can participate, users get more engaged and our platform becomes even stronger. In Q2, our strategy moved from plans to results over time. They will structurally improve on content costs, revenue quality, profit and cash flow.

Let me walk you through the progress. Through decentralization, we are improving our platform and accelerating the creator ecosystem in April, which reflected our core greater half the IQ IT IG creator center early are promising the number of creators and uploads are all trending higher. Content is short production cycle, lower production scale and a good fit for AIT and creation have seen especially strong growth for various types of content. The delayed average number of uploaded works in the second quarter increased by 30% to 500% compared to the first quarter, into daily fields for microtumor and micro animations were up by double digits compared with March.

Short-form dramas and animation are also gaining tranship. Looking ahead, more long-form video categories we are doing a decentralized content ecosystem as we preserve. It's premium content advantage with our burden on content slate by adopting lighter, more flexible content agitation models.

On content production, AI is substantially optimizing production efficiency and cost structure. First, in that action, AI is streaming in the Antero workflow, for example, we leverage AI in our shop to prime season 2 to achieve a [ 104 ] Lipin rough cut efficiency compared to traditional measures.

Second, for content test, well suited to AIGC. AIGC production can reduce production costs and time lines by 70% to 90% compared with transitional while pushing past the physical limits of live action shorting. Naturally, AI adoption is faster in CG having formats, we have launched multiple AI-generated Internet future fill. A major milestone was July Premier of the industry's first ITC Internet feature film to launch with Internet drama and field distribution assets.

This marks the official shift of long-form AIGC from technical testing to Large-scale production, in addition, year-to-date, we have launched 16 AI-generated short-from under a revenue-sharing model with traded as a top performing title in the second half of the year, we have launched a diversified list of AIGC title, including multiple IT invested films with an even broader pipeline across expanded categories next year.

Currently, we have multiple AI generated short-form drama in development. is our seg-grade production platform for creators as less on optimized third-party and in-house models plus longstanding expertise in professional content by replacing costly steps with lower compute and cost at lower spares and speed up professional content production. Our strategy is planned, internally nonrap development and production costs, external other crop express new revenue streams and gradually converge on professional production capabilities into incremental revenue.

is general AI output is change the key parts of long-form production, a script writing shop design workflows digital asset editing and doubling into platform features. It delivers an end-to-end flow in next talent with content assets and make progress repeatable and reusable is involving from our tools into comprehensive greater ecosystem. It links content demand is greater and enables them to realize commercial returns to flexible business model. These activities are flywheel commercial returns encourage more content supply, expanded supply fortifies the ecosystem, a stronger ecosystem scale both peers and works, poring creation platform for iQIYI's decentralized content ecosystem.

We believe this advantage will improve content production efficiency, lower unit costs and increase for users and revenue, as we roll them out across all operations and scale, we expected their contributions to profit and cash flow to stably material line.

Now let's move on to the detailed performance in Q2. Let's start with content. Our premium company is well recognized by users and the industry as the mean work this room, one of China's top TV owners, by Milano, IT titles and their accretive teams -- 14 of 23 awards, including 10 of 11 in the drama category, well ahead of cars.

In Q2, our content performed well across formats in long-form dramas, we continue to focus on female-centric stories with working among this year's top two titles by ad revenue. We also reinforced our lead in suspension general innovation. The suspense [indiscernible] or surpassed the 10,000 popularity score and a strong membership sign-ups.

We will in [indiscernible] juncture from our IT suspense seller earned strong reveals our original title archiving mystery. exceeded 9,300 populating index score under the nonexclusive the effort of topped 8,500. In-place supported short-form dramas typically 15 to 25 minutes per source with flat door and so costs. We delivered exciting early results for enlighten data our market share doubled from 25% in March to 50% in June taking #1 for the first time. The strong performance was supported by all original deferment 10th anniversary which reached a per-day market share of 60% short-form titles can offer structural advantages of our long-form dramas, potentially reducing average per minute cost by over 50% and shortening production to approval time lines by 30% to 50%.

In macro dramas, we released a premium live action titles like all of our sector currently forming for you and the all responded well with AIGC scale quickly under revenue sharing model accounting for over 50% of our macro and unique visitors in June while AI native micro animations expanded with strong sequential growth in and time.

In fields, we maintained diversified slate of different offices. Originals like the counter fit, we talked on the received positive feedback. We are licensed the article hit, [indiscernible] breadth of the Garden ran Zoomtopia 2, we are also well received on our platform. In already shows, we launched 7 originals in Q2 with our flagship from transit delivering a sustained value has will help across popular index score of 9 solid, reaching a new front for 10 years evergreen IP, the wrap of China 2026 also stood out surpassing a popularity index score of 8,800.

In animation, we further solidified our original offers, the long branding against the long -- with Premal in April, topped our animation popularity index chart and broad notable of platform users back to IT together with growth ruler, a -- we now have two long-running angles to get users in digital year round.

In student's content, we reinforced our leadership with the return of our original IP vehicle and the local life adoption of the BBC Classic

Next, let me show our pipeline for the second half of the year. Our summer, long-form dramas features, a diversified lineup, which includes multiple female-oriented titles like road to success [indiscernible] Junior golfers continue on in of the blade in and in vibrations complemented by the military theme linked from Warren into fontina and the major realistic drama forging, Justice For the remainder of the year, we will printer great long March [indiscernible] no return in sugar.

As for short-form drama, our accounting releases include that of wing term. In Duncan, the 5 of fecal the sixth group of fatal drug and the upgrade nobody to in films of pipeline features, original cell article films, including winter and summer. Yellowtail, not go to the child to monitor and provision on this work in the second half of the year. On the investments front, our pipeline includes a nation part, chosen and the fuels this summer. With I know who you are, but there you and managing to an crossing do late for the later half of the year.

For Internet feature films, which are eliminated to a maximum of 3 chapters, each at least a 6 our pipeline includes multiple ITC titles based on the classic IP, the environment in Humber first 2 chapters, butter flight drain and the ring of -- to launch this summer. Additionally, audiences can also drove a strong of live action handles, including motor game, and speed and be this summer.

Shifting to a shore. Deepening orders engagement with established IPs, including the wrap-fee 2026, the team of season siting and Horitthis summer followed by the Bloomington in Europe and enter together to reduction in the second half.

For amination this year, could be IT strong gift animation summer today. The line of feature a good data to an toleration rise by demand primarily more golden cost, Hietanen, Changhong [indiscernible] the AI panels, the legend of King cancer Hakan the Legend of King...

For children's content, our summer slate features a new season of the popular present Board and the Big Wolf. Xianyang as well as original AIGC animation like looking ahead at the second half of the year, we will roll out the original AIGC animation and come and bid for test travel to our control tuition.

Now turning to membership business. Revenue declined sequentially due to seasonal -- seasonality. We are strengthening the business with more refined operation. For example, targeted discounts for students and future year-over-year increase of over 60% in quarter and subscribers we in this cold -- we also continued to enhance membership value with experience package. In Q2, we launched the express package across 16 dramas driving nearly 80% and increase in total participation we are expanding drone membership is frequently purchased top-tier brands popular among young users to support membership world and retention.

Next, moving on to advertising business for our brand as revenue from drama targeted and delivered double-digit year-over-year growth and sector building, personnel - and health care recorded double-digit year-over-year growth. We also depend our use of AI in operations and now support customized rating. For performance revenue returned to year-over-year growth, we continue to optimize advertiser mix.

Revenue from small and midsized advertisers delivered strong year-over-year growth and sector-wise revenue from advertisers in AI application, instant retail. Retial and e-commerce recorded a strong year-over-year growth. We further strengthened results with -- upgrading our price large models, improving targeting precision and driving revenue.

Moving on to our business performance in regions outside of Milan China. In Q2, this business sustained rapid growth, membership revenue grew 40% year-over-year. Pop gifts and Spanish-speaking regions demonstrated robust growth, notably membership revenue from Brazil and Mexico search by over at 215% and 150% year-over-year, respectively, arb speaking markets also show strong financial with membership revenue increasing 85%.

The global influence of Sea drama continues to expand in membership revenue from Cremers grew over 40% year-over-year. As to out -- as to our hit was faced to [indiscernible] at the top our international platform, rankings across 14 regions in its first week and stay in the top 10 of the Sedramers chat for 10 consecutive weeks.

On the local production front, we are accelerating our pace, our first original Indonesian drama, the other system gain strong traction for global trend and became the #1 local Internet drama in Indonesia in the first half of 2026.

My Programmers were another major highlights, serving as the second largest membership revenue contributor following long-form dramas. In Q2, membership revenue from this category grew over 300% year-over-year. This momentum was partly fueled by stronger original production. Notably, originals rose to 3 of the top 10 contributors to membership revenue.

AITC was another key driver of our overseas microgram expansion. In Q2, we launched AI-generated titles in multiple language including English, Thai and Our original titles delivered exception of efficiency, recovering production costs within the same quarter and demonstrating the power feed potential. We are scaling supply soon both originals and external partnerships.

In May, we released offers original EI generated crore overseas, which quickly ranked in the top 3 for macro drama revenue on our international platform. The title was produced by another which caused us to template full long laying a strong foundation for scale production in parallel. We are proactively affording external partnerships to connect overseas script production and tool ecosystem, including andro unlocking a current city and scaling AIDC supply.

Beyond content, we are driving growth with strong membership, we have partnered with Vision Plus in Indonesia and a well launched joint membership with fill in more markets in the second half. We are excited about the future potential of our overseas business.

With that, I will hand it to over to Tian Ying, our new CFO, to walk you on the financials.

Tian Ying

Okay. Thank you, Mr. Gong, and hello, everyone. Let me walk you through our key financial results for Q2. Total revenues were RMB 6.3 billion, up 1% sequentially. Membership services revenue was RMB 4.0 billion, down 4% sequentially, primarily due to seasonality. Online advertising revenue was RMB 1.2 billion, sequentially. Content distribution revenue was RMB 681.5 million, up 90% sequentially, driven by the increase in content distribution revenue related to the drama series. Other revenues were RMB 344.9 million, down 19% sequential.

Moving on to cost and operation, operating expenses, content cost was RMB 3.8 billion, up 2% sequentially. Total operating expenses were RMB 1.1 billion, down 6% sequentially, reflecting this in market spending. Non-GAAP operating loss narrowed by 80% sequentially from RMB 148.6 million in Q1 to RMB 30.3 million, bring us close to breakeven.

Turning to cash flow. Net cash provided by operating activities increased to RMB 339.6 million, from RMB 186.4 million in Q1. As of the end of Q2, we had cash, cash equivalents restricted cash and short-term investments of RMB 4.1 billion. Separately, as of the quarter end, we had a long principle of USD 636.6 million receivable from PAG, included in prepayments and other assets on the consolidated balance sheet.

We remain focused on creating long-term shareholder value. In March 2026, we announced a share repurchase program of up to USD 100 million effective through September 2027. As of June 30, we had repurchased approximately 21.6 million ADS for aggregated cost of USD 24.1 million. For further details, please refer to today's earnings on our Investor Relations website.

With that, we are ready to take questions. Operator, please proceed.

Operator

[Operator Instructions] Your first question comes from Xueqing Zhang with CICC.

分析師問答

Xueqing Zhang

[Interpreted] I would like to ask with large and the market involved rapidly by management, the actual business model in the future and is the company's key strategic and operational priorities going forward.

Tim Yu

[Foreign Language]

Chang Yu

[Interpreted] Thank you. The CEO takes this question. So he says, we see IT of the benefactory of AI now and also in the long term. So to capture these opportunities, we are making some strategic transformation for our business, mainly focused on two main pillars. Decentralization, which meaning transforming from the media-centric platform to a decentralized content ecosystem and also all in AI. So these two pillars the lease will mutually reinforce each other and driving a flywheel effect across the number of creators the volume of content, the user base and potentially on revenue performance.

Okay. Premium content still remains the core of our business. We believe AI will significantly lower production cost for premium content, short-term production cycles and potentially enable production and visual effects that were previously difficult to achieve their life action.

On decentralization, we're mostly focusing on our IQ ID, which is the ICE creator center, and we have seen some positive initial progress, such as the number of creators, the content upload numbers are trending well. And we're seeing AI adoption is progressing across our core content categories and with initial breakthroughs achieved, for example, for the projects we both in production and also launched. And in the future, we expect a greater scale of content to be released next year.

Over the long term, we believe these two strategies, meaning the decentralization and all in AI, these two will structurally improve our content cost, revenue quality, profitability and cash flow. Thank you.

Operator

Your next question comes from Lincoln Kong with Goldman Sachs.

Lincoln Kong

[Foreign Language] So my question is about IG's overall AIGC strategy and how is our plan in terms of each content categories?

Chang Yu

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

Xiaohui Wang

[Foreign Language]

Chang Yu

[Interpreted] First of all, we believe AI reduces the basic costs and barriers to production, but it doesn't lower the bar for creativity and judgment. We leverage AI to optimize the economics of content production, while we reinforcing our core mode, which is storytelling and aesthetic judgment, emotional expression and also digital language. Our goal is to advance on both fronts, premium content quality and scale content supply. Strategically, we'll prioritize core long-form video while accommodating microtrauma and micro animation. Now we use a revenue-sharing model to improve capital turnover.

We'll share our thoughts by category based on the pace of AI adoption at scale. First of all, for micro dramas, we're seeing rapid adoption with AIGC as the primary source of supply. We primarily use a revenue-sharing model and leverage algorithm recommendations and decentralized operations to deliver a diversified rapidly refreshed and skilled content supply.

For animation -- micro animation, we believe these are AI native content. So AITC will serve as the primary supply.

For animations and Truvis content, these have mature CG industrialization are a good fit in our view, and we are seeing rapid AI adoption. AI significantly improves efficiency and our pipeline is expanding. For next year, we will release more AIGC titles to serve niche audiences and broaden stable supply.

For short-form dramas and interface feature films, these are medium in production complexity and volume and compared to long-form content that these are bit in complexity and also installed as well. And we are actively adopting AI, focusing on garners like fantasy, supernatural and adventures to widen our garner Some panels have already launched and we will speed up the scale releases and balancing cost efficiency and content diversity. So far, we released -- we have released 16 AIGC short-form drama under a revenue-sharing model, along with several feature films.

For long-term dramas and theatrical films, we believe carries the highest emotional and artist value, but these are relatively slower to adopt AIGC scale. And for this content, we will focus on life action to quality first use AI to support our production and use AI to reduce cost. Thank you.

Operator

Your next question comes from Vicky Wei with Citi.

Yi Jing Wei

[Foreign Language] In the context of the AI era and the ongoing shift towards the centralization, how do you view ICE's core competitiveness? And what kind of value does ICE offer to content creators?

Tim Yu

Thank you. We will invite our CEO to take this question.

Tian Ying

[Foreign Language]

Chang Yu

[Interpreted] We believe in the AI era, video industry competition centers on end-to-end capabilities, which is from concept to commercialization. And there are quite a few essentials that are required for this. For example, the ability to bring together professional talent, generate compelling ideas, run industrialized production, have a comprehensive understanding of content review and compliance, deliver effective content distribution and drive diversified monetization. And these are the four modes TI have built over the past decade.

So our values to creators with there are three areas that we are targeting and also a sloping help them to be seen, generate income and gain recognition. First of all, have a major share of the video entertainment audiences. So the creators have greater capabilities or possibilities to be seen on the IT platform. And also IT have deep expertise in long-form video production, and we have established a very mature industrialized content production of mechanism.

And in addition, IT also have a map viewership data, a very rich IP and also licensing resources, and also a very strong ecosystem support.

We have built a 7-pillar creator support system on the iQIYI ID, which is the ICE creator Center; NadoPro, our professional production platform. A physical creative centers offline, training programs and IT Noto and AIG Venture Summit helping the creators with the fund support. And the Peter Kao and IT AI theater for benchmark productions and last but not least, a dedicated creator customer service.

On August 20 in Beijing, which is in today, we will host the IT creator conference featuring in-depth discussions on content ecosystem development frontier on AI opportunities and greater empowerment. Thank you.

Operator

Your next question comes from with Guangfa Securities.

Unknown Analyst

[Foreign Language] I want to know about the latest development in overseas business and how the operational experience or more major markets like parent can be replicated in other markets?

Chang Yu

Thank you. We'll invite Mr. Xianghua Yang to take this question. .

Xianghua Yang

[Foreign Language]

Chang Yu

[Interpreted] Our overseas business maintained rapid growth in Q2 with overall membership revenue grew 40% year-over-year, and we remain profitable on a managerial accounting basis, and Thailand is the market where we enter early and where our operating model is relatively mature. It still delivered solid growth year-over-year in Q2. and with steady top line growth and continued profitability improvement in the quarter as well. And in new markets, such as Brazil and Mexico, we see membership revenue increased 215% and 150% year-over-year, respectively.

We categorize our overseas markets into mature growth and potential markets, where mature markets will aim for stable profitability, growth markets focus on accelerated reading revenue with disciplined investments.

Thailand serves of our proving ground. What we have validated is a set of reusable operating capabilities, yes. So using C drama as the foundation and a sustained marketing to amplify influence of Chinese content and expanding a local supply content supply and tailoring the content has adapted to the local audiences.

We are also partnering with our local carriers, platforms and payment channels to scale the membership base. And we're also leveraging AI to improve the translation and distribution and also production efficiency.

Because the content preferences and collaboration channel structures deferred by market, we will replicate these underlying capabilities, while the local teams do make targeted adaptations, for example, applying Thailand's operating capabilities to other markets.

Our strategy is not to chase contract counts. We are guided by unit economics and operating contribution, and we will expand into new markets after validating revenue quality and profit-generating capabilities. Thank you.

Operator

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

Chang Yu

Thank you, everyone, for joining the call today. If you have further questions, do not have to take to contact us. Thank you, and see you next quarter.

Operator

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