PR Newswire | Nov 24, 2020 03:21AM EST

Results

11/24 02:20 CST

Cheetah Mobile Announces Third Quarter 2020 Unaudited Consolidated Financial Results BEIJING, Nov. 24, 2020

BEIJING, Nov. 24, 2020 /PRNewswire/ -- Cheetah Mobile Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile internet company with global market coverage, today announced its unaudited consolidated financial results for the third quarter ended September 30, 2020.

Management Commentary

Mr. Sheng Fu, Cheetah Mobile's Chairman and Chief Executive Officer, stated, "In the third quarter of 2020, our revenue came in ahead of management's revenue guidance. However, we still face challenges in growing our total revenues in the coming quarters due to the unfavorable environment in overseas markets. On the other hand, we don't expect our AI-related robotics business to generate significant revenues in the foreseeable future. During the third quarter of 2020, we continued to streamline our operations and cut our costs and expenses. In the quarter, our gross margin expanded to 69% from 60% in the same period last year. Our operating loss narrowed to RMB126 million from RMB257 million in the same period last year. By segment, both the operating profits for our utility products and related services and our mobile entertainment business improved year-over-year in the quarter. Looking ahead, we will continue to streamline our mobile Internet business, focus on the domestic market, and invest in our AI-related robotic business to create a long-term growth engine."

Mr. Thomas Ren, Cheetah Mobile's Chief Financial Officer, commented, "We continued to create shareholder value. During the third quarter of 2020, the Company disposed certain business and assets, which boosted our earnings. Our net income attributable to Cheetah Mobile shareholders was RMB259 million in the third quarter of 2020. More importantly, Cheetah Mobile's balance sheet remains strong. As of September 30, 2020, we had cash, cash equivalents, restricted cash, short-term investments of US$235 million. Additionally, we had long-term investments of US$332 million."

Third Quarter 2020 Consolidated Financial Results

REVENUES

Total revenues were RMB365.1 million (US$53.8 million) in the third quarter of 2020, representing a decrease of 60.3% year over year. Excluding the impact resulting from the deconsolidation of LiveMe, total revenues decreased by 46.7% year over year in the third quarter of 2020.

Revenues from utility products and related services decreased by 47.3% year over year to RMB186.1 million (US$27.4 million) in the third quarter of 2020. The year-over-year decrease was primarily due to (i) a decline in the Company's mobile utility product business in overseas markets, (ii) a decline in the Company's mobile utility product business in the domestic market, and (iii) a decline in PC-related revenues. In the third quarter of 2020, approximately 65.4% of the Company's revenues from its utility products and related services business were generated from advertising while the remaining portion of revenues were generated from other sources, such as user subscription services, anti-virus software sales and office software sales.

Revenues from the Company's mobile utility product business in overseas markets decreased by 72% year over year to RMB39 million in third quarter of 2020. This decrease was mainly due to the suspension of the Company's advertising collaborations with Google since February 2020. On February 21, 2020, the Company announced that the Company's Google Play Store, Google AdMob, and Google AdManager accounts had been disabled, which adversely affected its ability to attract new users and generate revenue from Google.

Revenues from the Company's mobile utility product business in the domestic market decreased by 52% year over year to RMB58 million in the third quarter of 2020. This year-over-year decrease was primarily as a result of the headwinds in the domestic online advertising market.

PC-related revenues decreased by 10% year over year to RMB90 million in the third quarter of 2020 as internet traffic continued to migrate from PCs to mobile devices.

Revenues from the mobile entertainment businessdecrease by 70.4% year over year to RMB157.7 million (US$23.2 million) in the third quarter of 2020. Excluding the impact resulting from the deconsolidation of LiveMe, revenues from the mobile games business decreased by 47.0% year over year to RMB157.7 million (US$23.2 million) in the third quarter of 2020. This decrease was primarily attributable to the suspension of the Company's advertising collaborations with Google since February 2020. In the third quarter of 2020, approximately 48.1% of the Company's revenues from its mobile games business were generated from advertising while the remaining portion of revenues were generated from in-game purchases.

COST OF REVENUES AND GROSS PROFIT

Cost of revenuesdecreased by 68.9% year over year to RMB113.6 million (US$16.7 million) in the third quarter of 2020. The decrease was primarily due to the deconsolidation of LiveMe and reduced bandwidth and cloud service costs, in particular, in overseas markets. Non-GAAP cost of revenues decreased by 69.0% year over year to RMB113.2 million (US$16.7 million) in the third quarter of 2020.

Gross profitdecreased by 54.6% year over year to RMB251.5 million (US$37.0 million) in the third quarter of 2020. Non-GAAP gross profit decreased by 54.6% year over year to RMB251.9 million (US$37.1 million) in the third quarter of 2020.

Gross marginwas 68.9% in the third quarter of 2020, compared to 60.2% in the same period last year. Non-GAAP gross margin was 69.0% in the third quarter of 2020, compared to 60.3% in the same period last year.

OPERATING INCOME/LOSS AND EXPENSES

Total operating expenses decreased by 53.5% year over year to RMB377.5 million (US$55.6 million) in the third quarter of 2020. Total non-GAAP operating expenses decreased by 52.2% year over year to RMB370.8 million (US$54.6 million) in the third quarter of 2020.

* Research and development expenses decreased by 47.8% year over year to RMB117.6 million (US$17.3 million) in the third quarter of 2020. This decrease was primarily attributable to a reduction in the personnel for the Company's utility products and related services business and mobile games business in the overseas market as the Company chose to shift its focus from overseas markets to the domestic market. This decrease was also due to the deconsolidation of LiveMe. Non-GAAP research and development expenses decreased by 46.9% year over year to RMB112.5 million (US$16.6 million) in the third quarter of 2020. * Selling and marketing expenses decreased by 58.2% year over year to RMB165.5 million (US$24.4 million) in the third quarter of 2020. This decrease was mainly due to the reduction in promotional activities for the Company's mobile games business. Non-GAAP selling and marketing expenses decreased by 58.0% year over year to RMB166.7 million (US$24.5 million) in the third quarter of 2020. * General and administrative expenses decreased by 51.9% year over year to RMB91.0 million (US$13.4 million) in the third quarter of 2020. This decrease was primarily due to reduced general and administrative personnel. Non-GAAP general and administrative expenses decreased by 47.1% year over year to RMB88.2 million (US$13.0 million) in the third quarter of 2020.

Operating loss was RMB126.0 million (US$18.6 million) in the third quarter of 2020, reduced from RMB257.1 million in the same period last year. Non-GAAP operating loss was RMB118.9 million (US$17.5 million) in the third quarter of 2020, reduced from RMB221.5 million in the same period last year.

The Company has reported its operating profit (loss) along the following segments since the second quarter of 2017:

* Operating profit for utility products and related services was RMB51.2 million in the third quarter of 2020, increasing from RMB24.2 million in the same period last year due to reduced cost and expenses. * Operating profit for the mobile entertainment business was RMB20.3 million in the third quarter of 2020, compared to an operating loss of RMB142.4 million in the same period last year due to reduced cost and expenses.

Share-based compensation expenses were RMB7.1 million (US$1.1 million) in the third quarter of 2020, compared to RMB35.5 million in the same period last year.

OTHER INCOME, NET

Other income, net was RMB378.3 million (US$55.7 million) in the third quarter of 2020, which was primarily due to the disposal of certain business and assets.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB259.2 million (US$38.2 million) in the third quarter of 2020, compared to RMB451.5 million in the same period last year.

Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB266.3 million (US$39.2 million) in the third quarter of 2020, compared to RMB487.1 million in the same period last year.

NET INCOME PER ADS

Diluted earnings per ADS was RMB1.82(US$0.27) in the third quarter of 2020, compared to RMB3.21 in the same period last year. Non-GAAP diluted earnings per ADS was RMB1.87(US$0.28) in third quarter of 2020, compared to diluted earnings per ADS of RMB3.47 in the same period last year.

BALANCE SHEET

As of September 30, 2020, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB1,595.0 million (US$234.9 million).

SHARES ISSUED AND OUTSTANDING

As of September 30, 2020, the Company had a total of 1,398,070,144 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

Business Outlook

For the fourth quarter of 2020, the Company expects its total revenues to be between RMB230 million (US$34 million) and RMB280 million (US$41 million). This amount reflects the Company's current and preliminary expectations, which include the fact that the disposed business and assets will no longer be included in the Company's revenues as well as the assumption the COVID-19 situation will not cause any significant disruptions to its operations throughout the remainder of the fourth quarter.

Conference Call Information

The Company will hold a conference call on Tuesday, November 24, 2020, at 7:00 a.m. Eastern Time (or 8:00 p.m. Beijing Time) to discuss its financial results. Listeners may access the call by dialing the following numbers:

International: +1-412-902-4272

United States Toll Free: +1-888-346-8982

Mainland China Toll Free: 4001-201-203

Hong Kong Toll Free: 800-905-945

Conference ID: Cheetah Mobile

The replay will be accessible December 01, 2020 by dialing the following numbers:

International: +1-412-317-0088

United States Toll Free: +1-877-344-7529

Access Code: 10149829

A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.cmcm.com.

Exchange Rate

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB6.7896 to US$1.00, the exchange rate in effect as of September 30, 2020, as set forth in the H.10 statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America ("U.S. GAAP").

About Cheetah Mobile Inc.

Cheetah Mobile is a leading mobile Internet company with global market coverage. It has attracted hundreds of millions of monthly active users through its mobile utility products and casual games. The Company's advertising customers include direct advertisers and mobile advertising networks. Through the Company's advertising products, advertisers can promote their products and services to a wide range of mobile users. The Company also provides value-added services to its mobile application users through the sale of in-app virtual items on selected mobile products and games. Cheetah Mobile is committed to leveraging its cutting-edge artificial intelligence technologies to power its products and make the world smarter. It has been listed on the New York Stock Exchange since May 2014.

Safe Harbor Statement

This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in the forward-looking statements, including but are not limited to the following: Cheetah Mobile's growth strategies; Cheetah Mobile's ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile's ability to monetize its platform; Cheetah Mobile's future business development, financial condition and results of operations; competition with companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile's revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile's filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Use of Non-GAAP Financial Measures

This release contains the following non-GAAP financial measures:

* Non-GAAP cost of revenues excludes share-based compensation expenses * Non-GAAP gross profit excludes share-based compensation expenses * Non-GAAP gross margin excludes share-based compensation expense * Total non-GAAP operating expenses exclude share-based compensation expenses and impairment of goodwill * Non-GAAP research and development expenses exclude share-based compensation expenses * Non-GAAP selling and marketing expenses exclude share-based compensation expenses * Non-GAAP general and administrative expenses exclude share-based compensation expenses * Non-GAAP operating profit/loss excludes share-based compensation expenses and impairment of goodwill * Non-GAAP net income/loss attributable to Cheetah Mobile shareholders excludes share-based compensation expenses and impairment of goodwill * Non-GAAP diluted income/loss per ADS excludes share-based compensation expenses and impairment of goodwill

The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Cheetah Mobile Inc. Reconciliations of GAAP and Non-GAAP Results".

Investor Relations Contact

Cheetah Mobile Inc.Helen Jing ZhuTel: +86 10 6292 7779 ext. 1600Email: helenjingzhu@cmcm.com

ICR Inc.Xinran RaoTel: +1 (646) 417-5395Email: IR@cmcm.com

CHEETAH MOBILE INC.

Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))

As of

December 31, 2019 September 30, 2020 September 30, 2020

RMB RMB USD

ASSETS

Current assets:

Cash and cash equivalents 983,004 1,089,268 160,432

Restricted cash 2,638 1,134 167

Short-term investments 1,369,118 504,628 74,324

Accounts receivable 469,276 268,101 39,487

Prepayments and other current assets 936,109 1,091,981 160,831

Due from related parties 233,255 231,387 34,080

Total current assets 3,993,400 3,186,499 469,321

Non-current assets:

Property and equipment, net 103,397 91,989 13,549

Right-of-use assets, net 183,563 143,222 21,094

Intangible assets, net 44,476 19,597 2,886

Investment in equity investees 194,473 240,216 35,380

Other long term investments 2,322,251 2,013,325 296,531

Due from related parties 25,533 24,925 3,671

Deferred tax assets 31,951 38,810 5,716

Other non-current assets 112,700 121,764 17,934

Total non-current assets 3,018,344 2,693,848 396,761

Total assets 7,011,744 5,880,347 866,082

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Bank loans - 68,101 10,030

Accounts payable 87,524 80,907 11,916

Accrued expenses and other current liabilities 1,504,728 1,436,631 211,593

Due to related parties 92,210 48,415 7,131

Income tax payable 60,657 45,710 6,732

Total current liabilities 1,745,119 1,679,764 247,402

Non-current liabilities:

Deferred tax liabilities 82,847 66,110 9,737

Other non-current liabilities 189,231 299,918 44,174

Total non-current liabilities 272,078 366,028 53,911

Total liabilities 2,017,197 2,045,792 301,313

Shareholders' equity:

Ordinary shares 225 234 34

Additional paid-in capital 2,649,342 2,727,276 401,684

Retained earnings 1,944,938 783,071 115,334

Accumulated other comprehensive income 337,773 281,810 41,506

Total Cheetah Mobile shareholders' equity 4,932,278 3,792,391 558,558

Noncontrolling interests 62,269 42,164 6,210

Total equity 4,994,547 3,834,555 564,768

Total liabilities and equity 7,011,744 5,880,347 866,082

CHEETAH MOBILE INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),except for number of shares and per share(or ADS) data)

For The Three Months Ended

September 30, 2019 June 30, 2020 September 30, 2020 September 30, 2020

RMB RMB RMB USD

Revenues 919,919 394,210 365,098 53,773

Utility products and related services 352,932 195,361 186,136 27,414

Mobile entertainment 532,234 179,398 157,665 23,222

AI and others 34,753 19,451 21,296 3,137

Cost of revenues (a) (365,748) (113,661) (113,584) (16,729)

Gross profit 554,171 280,549 251,514 37,044

Operating income and expenses:

Research and development (a) (225,492) (125,036) (117,627) (17,325)

Selling and marketing (a) (395,875) (205,562) (165,547) (24,382)

General and administrative (a) (189,085) (133,840) (91,021) (13,406)

Other operating (expense) income (778) 998 (3,354) (494)

Total operating income and expenses (811,230) (463,440) (377,549) (55,607)

Operating loss (257,059) (182,891) (126,035) (18,563)

Other income (expenses):

Interest income, net 27,556 8,496 7,228 1,065

Foreign exchange (loss) gain, net (1,336) (3,409) 32,690 4,815

Gain (loss) from equity method investments, net 3,396 (5,452) 3,115 459

Other income, net 732,852 453,549 378,297 55,717

Income before taxes 505,409 270,293 295,295 43,493

Income tax expenses (56,819) (82,198) (31,794) (4,683)

Net income 448,590 188,095 263,501 38,810

Less: net (loss) income attributable to noncontrolling interests (2,946) (5,626) 4,333 638

Net income attributable to Cheetah Mobile shareholders 451,536 193,721 259,168 38,172

Earnings per share

Basic 0.32 0.14 0.18 0.03

Diluted 0.32 0.14 0.18 0.03

Earnings per ADS

Basic 3.22 1.41 1.83 0.27

Diluted 3.21 1.38 1.82 0.27

Weighted average number of shares outstanding

Basic 1,368,904,228 1,383,251,669 1,416,988,202 1,416,988,202

Diluted 1,376,116,022 1,405,836,201 1,421,872,320 1,421,872,320

Weighted average number of ADSs outstanding

Basic 136,890,423 138,325,167 141,698,820 141,698,820

Diluted 137,611,602 140,583,620 142,187,232 142,187,232

Other comprehensive income (loss), net of tax of nil

Foreign currency translation adjustments 127,208 (2,116) (106,081) (15,624)

Unrealized (loss) gain on available-for-sale securities, net (698) - - -

Other comprehensive income (loss) 126,510 (2,116) (106,081) (15,624)

Total comprehensive income 575,100 185,979 157,420 23,186

Less: Total comprehensive (loss) income attributable to noncontrolling (2,048) (5,426) 3,563 525interests

Total comprehensive income attributable to Cheetah Mobile shareholders 577,148 191,405 153,857 22,661

CHEETAH MOBILE INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),except for number of shares and per share(or ADS) data)

For The Three Months Ended

September 30, 2019 June 30, 2020 September 30, 2020 September 30, 2020

(a) Share-based compensation expenses RMB RMB RMB USD

Cost of revenues 114 230 366 54

Research and development 13,686 11,826 5,099 751

Selling and marketing (660) 785 (1,120) (165)

General and administrative 22,379 37,359 2,782 410

Total 35,519 50,200 7,127 1,050

CHEETAH MOBILE INC.

Reconciliation of GAAP and Non-GAAP Results

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),except for per share data )

For The Three Months Ended September 30, 2020

GAAP Share-based Non-GAAP Non-GAAP

Result Compensation Result Result

RMB RMB RMB USD

Revenues 365,098 - 365,098 53,773

Cost of revenues (113,584) 366 (113,218) (16,675)

Gross profit 251,514 366 251,880 37,098

Research and development (117,627) 5,099 (112,528) (16,574)

Selling and marketing (165,547) (1,120) (166,667) (24,547)

General and administrative (91,021) 2,782 (88,239) (12,996)

Other operating expense (3,354) - (3,354) (494)

Total operating income and expenses (377,549) 6,761 (370,788) (54,611)

Operating loss (126,035) 7,127 (118,908) (17,513)

Net income attributable to Cheetah Mobile shareholders 259,168 7,127 266,295 39,221

Diluted earnings per ordinary share (RMB) 0.18 0.01 0.19

Diluted earnings per ADS (RMB) 1.82 0.05 1.87

Diluted earnings per ADS (USD) 0.27 0.01 0.28

For The Three Months Ended June 30, 2020

GAAP Share-based Non-GAAP

Result Compensation Result

RMB RMB RMB

Revenues 394,210 - 394,210

Cost of revenues (113,661) 230 (113,431)

Gross profit 280,549 230 280,779

Research and development (125,036) 11,826 (113,210)

Selling and marketing (205,562) 785 (204,777)

General and administrative (133,840) 37,359 (96,481)

Other operating income 998 - 998

Total operating income and expenses (463,440) 49,970 (413,470)

Operating loss (182,891) 50,200 (132,691)

Net income attributable to Cheetah Mobile shareholders 193,721 50,200 243,921

Diluted earnings per ordinary share (RMB) 0.14 0.04 0.17

Diluted earnings per ADS (RMB) 1.38 0.36 1.74

For The Three Months Ended September 30, 2019

GAAP Share-based Non-GAAP

Result Compensation Result

RMB RMB RMB

Revenues 919,919 919,919

Cost of revenues (365,748) 114 (365,634)

Gross profit 554,171 114 554,285

Research and development (225,492) 13,686 (211,806)

Selling and marketing (395,875) (660) (396,535)

General and administrative (189,085) 22,379 (166,706)

Other operating expense (778) - (778)

Total operating income and expenses (811,230) 35,405 (775,825)

Operating loss (257,059) 35,519 (221,540)

Net income attributable to Cheetah Mobile shareholders 451,536 35,519 487,055

Diluted earnings per ordinary share (RMB) 0.32 0.03 0.35

Diluted earnings per ADS (RMB) 3.21 0.26 3.47

CHEETAH MOBILE INC.

Information about Segment

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),except for percentage)

For The Three Months Ended September 30, 2020

Utility Products Mobile and Entertainment AI and others Unallocated* Consolidated Related Services

RMB RMB RMB RMB RMB USD

Revenue 186,136 157,665 21,296 - 365,098 53,773

Operating profit (loss) 51,155 20,296 (190,358) (7,127) (126,035) (18,563)

Operating margin 27.5% 12.9% (893.9)% - (34.5)% (34.5)%

For The Three Months Ended June 30, 2020

Utility Products Mobile and Entertainment AI and others Unallocated* Consolidated Related Services

RMB RMB RMB RMB RMB

Revenue 195,361 179,398 19,451 - 394,210

Operating profit (loss) 56,460 (20,851) (168,300) (50,200) (182,891)

Operating margin 28.9% (11.6)% (865.3)% - (46.4)%

For The Three Months Ended September 30, 2019

Utility Products Mobile and Entertainment AI and others Unallocated* Consolidated Related Services

RMB RMB RMB RMB RMB

Revenue 352,932 532,234 34,753 - 919,919

Operating profit (loss) 24,248 (142,423) (103,365) (35,519) (257,059)

Operating margin 6.9% (26.8)% (297.4)% (27.9)%

* Unallocated expenses refer to SBC expenses and goodwill impairment that arenot allocated to individual segments.

CHEETAH MOBILE INC.

Reconciliation from Net Income Attributable to Cheetah Mobile Shareholders toAdjusted EBITDA (Non-GAAP)

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))

For The Three Months Ended

September 30, 2019 June 30, 2020 September 30, 2020 September 30, 2020

RMB RMB RMB USD

Net income attributable to Cheetah Mobile shareholders 451,536 193,721 259,168 38,172

Add:

Income tax expenses 56,819 82,198 31,794 4,683

Interest income, net (27,556) (8,496) (7,228) (1,065)

Depreciation and amortization 16,193 18,528 17,297 2,548

Net (loss) income attributable to noncontrolling interests (2,946) (5,626) 4,333 638

Other income, net (734,912) (444,688) (414,102) (60,991)

Share-based compensation 35,519 50,200 7,127 1,050

Adjusted EBITDA (205,347) (114,163) (101,611) (14,965)

CHEETAH MOBILE INC.

Revenues Generated from PC-based and Mobile-based Applications and Services

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))

For The Three Months Ended

September 30, 2019 June 30, 2020 September 30, 2020 September 30, 2020

RMB RMB RMB USD

PC 123,789 118,343 109,218 16,086

Mobile 796,130 275,867 255,880 37,687

Total 919,919 394,210 365,098 53,773

CHEETAH MOBILE INC.

Revenues Generated from Domestic and Overseas Markets

(Unaudited, amounts in thousands of Renminbi ("RMB") and US dollars ("US$"))

For The Three Months Ended

September 30, June 30, 2020 September 30, September 30, 2019 2020 2020

RMB RMB RMB USD

Domestic 299,339 163,589 161,882 23,843

Overseas 620,580 230,621 203,216 29,930

Total 919,919 394,210 365,098 53,773

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SOURCE Cheetah Mobile Inc