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Business Commentary:

Cloud and AI infrastructure acceleration:

• Q2 cloud and AI infrastructure revenue was RMB59 million, up 83% year over year and 26% quarter over quarter, representing 22% of total revenue; gross billings exceeded RMB500 million.
• Management expects 2026 gross billings above RMB2 billion and related revenue above RMB200 million, while focusing on connecting global cloud/model ecosystems with enterprises expanding overseas rather than building foundation models.
• The model emphasizes customer deployment, cost control, operations, repeat business and potential expansion from cloud resources/model services into AI agents and software tools.

Robotics and smart mobility commercialization:

• Robotics and others revenue was RMB54.5 million, up 72.5% year over year and 6.4% quarter over quarter, or 20.5% of total revenue; growth reflected higher robotic-product sales and the UFACTORY acquisition.
• Smart mobility products began shipping in Europe through Pride Mobility and in China through SWIP in Q2, contributing initial revenue; products are folded, under 16 kilograms and designed for travel.
• The segment remains in investment phase: adjusted operating loss was RMB34.0 million and widened sequentially as development and commercialization continued, while management targets gradual movement toward breakeven.

Internet base, advertising headwind and financial position:

• Total Q2 revenue was RMB266.1 million, up 9.9% year over year and 2.7% quarter over quarter; excluding advertising agency services, revenue rose about 10% year over year and 5% quarter over quarter.
• Internet services revenue declined 17.3% year over year to RMB130.5 million as online advertising and advertising-agency revenue fell, but adjusted operating margin improved to 19.4% through cost reductions and a higher value-added-services mix.
• Global enterprise services remained adjusted-operating profitable, and management reported RMB1.7 billion in cash and cash equivalents plus short-term investments at quarter-end.

Cross-period comparisons

Cloud/AI business progression: Q2 2026 marked a strengthening from Q1 2026's initial cloud-resource and model-service expansion to a larger, more defined infrastructure business with RMB59 million revenue, 83% year-over-year growth, RMB500 million-plus gross billings and a RMB2 billion full-year gross-billings target.

Robotics profitability timing: The current period evolved from Q4 2025's expectation that robotics losses would narrow toward break-even to Q2 2026's report of continued revenue growth but a wider sequential adjusted operating loss as smart-mobility commercialization investment increased.

Internet monetization mix: The current period continued Q1 2026's strategy of reducing reliance on advertising while growing value-added services, with the latest quarter showing sharper advertising pressure but improved margin efficiency.

AI and robotics commercialization: Compared with Q3 2025's broader AI/robotics opportunity and voice-robot backlog discussion, Q2 2026 showed evolution toward separately reported cloud/AI infrastructure and robotics businesses, with smart mobility only at initial shipments and a step-by-step validation approach.

Supplemental

• Call date: 2026-09-10
• Revenue: RMB266.1 million, up 9.9% year over year and 2.7% quarter over quarter
• EPS: Not disclosed in transcript
• Gross margin: Not disclosed in transcript
• Operating margin: Non-GAAP operating loss RMB25.6 million; internet adjusted operating margin 19.4%; global enterprise services remained adjusted-operating profitable
• Guidance: Cloud and AI infrastructure gross billings expected above RMB2 billion in 2026 and related revenue above RMB200 million; management targets more smart-mobility shipments, customers and repeat business, while keeping internet/global enterprise services profitable and improving robotics economics.
• Sentiment: Positive, with noted advertising pressure, continuing robotics investment losses and early-stage smart-mobility execution.

Q&A

No substantive Q&A pairs were included because the available transcript's Q&A passages were AI-translated/garbled and could not be reliably attributed without risking distortion.