(Code: CMCM) released Q2 financial report in 2020. In the second quarter of 2020, the company’s total revenue was 394 million yuan, exceeding the previous quarter’s guidelines. In this quarter, the net profit of non GAAP attributable to the shareholders of cheetah mobile was 244 million yuan, and the company’s cash reserve and long-term investment were 5.266 billion yuan, which remained strong. In terms of tools and mobile game business, affected by the epidemic situation and the decline of overseas business, Q2 tool business revenue was 195 million yuan, and mobile entertainment business income was 179 million yuan. < / P > < p > as the representative of China Mobile Internet company, cheetah mobile was affected by overseas non-commercial factors earlier. At the end of 2018, Facebook suspended its cooperation with cheetah mobile, and still refused to resume cooperation after cheetah passed the internal data security and policy compliance audit conducted by the audit company designated by Facebook; in February 2020, Google unilaterally suspended its advertising cooperation with cheetah mobile for the reason of “advertising outside the app” without explicitly informing the compliance standards, and comprehensively removed the relevant apps of cheetah mobile It includes a number of game applications that have nothing to do with the so-called “advertising outside the app”, the leopard AI translation stick app connected to the mobile phone through Bluetooth, and the live application invested by cheetah. The external influence of these non-commercial factors precedes Tik tok and wechat, which have attracted much attention recently, and have an important impact on cheetah’s mobile tools and mobile entertainment business. However, thanks to the measures taken in the past two quarters, such as focusing on the domestic market, reducing advertising, continuously improving the user experience, and promoting long-term healthy development of the tool business, the scale of paid members and business income of the tool business continued to improve in this quarter. < / P > < p > the security tool Jinshan drug bully launched value-added services such as PDF document conversion / repair, encryption and data recovery. In the first half of 2020, the business income of members was 3 times that of the whole year in 2019, and the membership scale was increased to 2.4 times of that in 2019, and the monthly renewal rate of member’s package continued to grow. Cheetah, a mobile phone cleaning tool, has focused on optimizing member functions such as data backup / recovery. The revenue and order volume of members have increased by multiple times over the same period of the same period. The average monthly repurchase rate has exceeded 40%, laying the foundation for the long-term and healthy development of the tool business. < / P > < p > in this quarter, through continuous adjustment by the company’s management, the total cost of non GAAP decreased by 47% year-on-year and 22% month on month. Among them, the operating costs of non GAAP decreased by 65% to 113 million yuan; the R & D expenses of non GAAP decreased by 43% to 113 million yuan; the marketing and marketing expenses of non GAAP decreased by 46% to 205 million yuan. < p > < p > in the second quarter, the cost was strictly controlled, the gross profit rate increased, and the non GAAP operating loss improved. The company’s gross profit margin reached 71%, which was 66% in the same period last year. Meanwhile, since the third quarter of 2019, the company’s non GAAP operating loss has been narrowed for three consecutive quarters. Among them, the operating profit of tool products and related services business was 56.5 million yuan, and the operating loss of mobile entertainment business was 20.9 million yuan. In addition, in the second quarter of 2020, the company’s non operating income was RMB 454 million due to the disposal of byte hopping shares held by the company. The net profit of non GAAP belonging to the shareholders of cheetah mobile is 244 million yuan. In the second quarter, cheetah’s mobile cash reserve and long-term investment remained strong. Data shows that as of June 30, 2020, cheetah Mobile has cash and cash equivalents, restricted funds and short-term investment of 3.202 billion yuan, and long-term investment of 2.064 billion yuan. This not only provides strong support for cheetah Mobile’s sustainable development in AI and intelligent service robots, but also promotes the company’s initiative in the context of increasing uncertainties. In terms of AI business, the sales of to B robots were affected by the epidemic situation, and the revenue of this quarter was 14.45 million yuan. However, this quarter, the company continued to focus on new retail scenarios and made progress, laying the foundation for building the company’s long-term growth engine. < / P > < p > through the firm deployment of Q2, more than 7000 Internet red marketing robots have been deployed in 887 shopping malls in 32 cities across the country in this quarter, and the “aim marketing” system of robot interactive marketing network has been constructed. Up to now, the average daily passenger flow can be accurately reached to 62.4 million, the total daily interaction times of robots exceed 5.667 million, the average daily interaction times between stations are 908, and the per capita stay time in front of robots is 70 seconds. < / P > < p > through the robot interactive marketing network “aim marketing”, cheetah Mobile launched the “Nirvana action”, which helped the rapid recovery of the new retail economy in the post epidemic era, broadened the bandwidth for users to obtain commodity information offline, and broadened the bandwidth for businesses to obtain offline traffic and business information, including catering, fresh food, clothing accessories, travel, and home appliances More than 200 brand merchants in 18 industries, such as yard, are exploring the commercialization of interactive marketing of new retail robots. < / P > < p > as a new infrastructure for smart consumption, aim marketing is deeply integrated with offline super flow pools such as shopping malls and airports. The role of “intelligent information desk + welfare push staff” is used to realize offline traffic aggregation and distribution. The intelligent information desk helps shopping malls to improve service quality and control the rise of labor costs; at the same time, welfare promoters help brands and merchants to recommend new products and promote preferential promotion. < / P > < p > on the other hand, through the AI interactive advantages of robots, combined with voice, vision and navigation, a new exclusive “interactive screen” network of retail scenes is formed, leading and establishing the innovation of robot interactive marketing (time period + CPE) mode in the era of advertising 5.0, from listening to advertising, watching advertisements, ordering advertisements, scanning advertisements to triggering advertisements with voice and gesture, and through robots, active recruitment and marketing can be realized The robot interactive marketing closed-loop with sales interaction and feedback collection has become the “unmanned service” carrier of the new retail scene. At the same time, precipitation robot big data helps to realize the digitization of urban shopping malls and business districts and the formation of physical intelligent shopping malls. < / P > < p > in addition to continuing to expand in the new retail field, cheetah mobile and its Orion star sky took the lead in deploying more than 10000 AI robots in this quarter. By July 2020, more than 11000 Orion intelligent service robots under cheetah mobile have been deployed in China, with more than 200 million service people and nearly 1800 customers. More than 20 industrial scenes including rail transit, medical institutions, shopping malls, KTV, exhibition, communication, tourism, museum, library, school, government hall, etc. have been deployed. Let the “man-machine cooperation” mode help enterprises and industries reduce costs and increase efficiency, and use robot big data to improve offline economic efficiency.