In the first half of 2026, Chuzicheng Technology’s social business revenue increased by 36.5% year-on-year, and the revenue potential of individual paying users significantly improved. The industry’s growth strategy is shifting from relying on traffic volume to enhancing ARPU, payment rates, and AI efficiency. By replicating SUGO and TopTop to Latin America, Japan, South Korea, and North America, and promoting innovative businesses such as premium games and short videos, Chuzicheng’s innovative business revenue increased by 41.2% year-on-year in the first half. Although increased investment in short video businesses led to a decline in gross margin, AI applications have significantly reduced customer acquisition costs and improved content production efficiency. Chuzicheng and other companies expanding overseas (such as JOYY and Yalla) are exploring new businesses such as short videos, games, and advertising to find additional sources of growth. The future focus of competition will be on whether they can transform traffic into a high-value user ecosystem, achieving a transition from mere revenue growth to profit contribution.
In the first half of 2026, Chuzi City Technology’s social media business revenue increased by 36.5% year-on-year, and the revenue per paying user significantly improved. The industry’s growth strategy is shifting from relying on traffic volume to enhancing ARPU, payment rates, and AI efficiency. Companies like Chuzi City, JOYY, and Yalla are exploring new businesses such as short-form dramas, games, and advertising to find additional sources of revenue. By replicating SUGO and TopTop to Latin America, Japan, South Korea, and North America, and by promoting innovative services like premium games and short-form dramas, Chuzi City’s innovative business revenue increased by 41.2% year-on-year. Although increased investment in short-form drama businesses has led to a decline in gross margin, AI applications have significantly reduced customer acquisition costs and improved content production efficiency. The future focus of competition will be on whether it is possible to transform traffic into a high-value user ecosystem, achieving a transition from mere revenue growth to profit contribution.