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EVP Rong Luo explained that Baidu is aggressively replacing traditional links with multimodal AI answers, leading to higher user engagement and retention. He outlined the long-term vision as evolving from information delivery to task completion and personalization. Luo cautioned that near-term revenue will be pressured as monetization is not yet the primary focus.

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Rong Luo, EVP of Baidu Mobile Ecosystem Group, explained the acceleration aims to enhance user experience in a rapidly evolving landscape, noting AI-generated content in search results grew from 22% in January to 35% in April. He highlighted improved user retention and query diversity. On monetization, Luo stated they are in the very early stages of testing a rebuilt approach, which has significant potential for monetizing long-tail queries. He acknowledged this investment would create near-term margin pressure but is crucial for long-term growth.

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EVP Rong Luo stated the acceleration is to enhance user experience amid evolving user behaviors, enabled by better model capabilities and lower costs. He reported that AI-generated content in mobile search results increased from 22% in January to 35% in April and is expected to rise further. While monetization is in early testing and will create near-term margin pressure, Luo sees significant long-term potential in monetizing long-tail queries and creating new, native ad formats that are less intrusive than traditional search ads.

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EVP Rong Luo acknowledged a challenging macro environment for SMEs but expressed cautious optimism, stating a belief that the advertising business is reaching a bottom. He projected gradual improvement, with the first half of 2025 outperforming Q4 2024 and the second half showing further improvement. Monetization of AI-powered search will commence once the features are sufficiently refined.

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Co-Founder and CEO Yanhong Li explained that ERNIE's growth is driven by improved model intelligence, lower inference costs, and a better toolchain for customization. Li identified Baidu Search as having the potential to be a killer app in the Gen AI era. He noted that while most API calls are from internal product renovations, external API costs grew approximately 20% quarter-over-quarter, demonstrating strong enterprise adoption.

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Management's moderator explained that the biggest opportunity is leveraging offline events and merchandise to deepen the bond with the online platform, ultimately driving subscriber growth for their comprehensive service platform. A key challenge is ensuring the platform's development can support a fully integrated approach for content and privileges. The G-Dragon concert was cited as a successful example of this strategy and international expansion.

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Management identified the biggest opportunity as building a comprehensive service platform that uses offline events to deepen the bond with the online platform, ultimately growing the subscriber base. They also highlighted international expansion, citing the G-Dragon concert tour as an example. The primary challenge mentioned was ensuring the platform's development can effectively support an integrated strategy for both content and user privileges.

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An executive explained that while converting free users to paid subscribers is the priority, TME monetizes its non-paying user base through several methods. These include incentive-based advertising, a new 'online earning' model, and direct-to-fan commerce such as digital album sales and artist merchandise.

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CEO Liang Zhu clarified that the growth was driven by more than just seasonality. A key factor was a new, highly successful interactive 'collection' feature on Kugou streaming. He also confirmed that the WeSing business is stabilizing with healthy VIP growth. While he expects the overall segment to be stable in 2025, he cautioned it could still face a slight downward trend, which TME aims to offset with further innovation.

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CEO Jane Sun described travel demand as resilient across markets. She noted that while destination preferences shift, overall demand continues to grow. Sun stated that leisure travel per capita spending was comparable to last year's levels, and business travel demand remains stable, with over 90% of corporate clients expecting their travel budgets to grow or remain unchanged in 2025.

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CEO Jane Sun highlighted the resilience of travel demand post-COVID. She identified key growth drivers: strong demand from young travelers for 'event+travel,' the 'silver generation' of retirees with high purchasing power, the easing of visa restrictions for outbound travel, and the recovery of international flight capacity. She also noted strong growth in Asian markets outside of China, which are a key investment focus.

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CFO Xiaofan Wang detailed that the Trip.com brand achieved robust revenue growth of approximately 70% in Q2, contributing about 10.5% to the group's total revenue. The APAC region drove this growth, accounting for over 70% of Trip.com's revenue. She added that the brand will continue to be in an investment phase to prioritize growth opportunities in the international market.

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CEO Jane Sun estimated that the total travel market in Asia, excluding China, is approximately 1.5 times the size of the China market, representing a significant opportunity. She outlined Trip.com's competitive advantages as its convenient one-stop shopping platform, excellent mobile user experience honed in China, superior 24/7 customer service, and strong negotiating power for deals derived from its large outbound business.

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CFO Toby Xu explained that the primary business objective is to stabilize market share, with the monetization rate reflecting that position. He noted that new products have successfully improved monetization from previously under-tapped merchant segments, like white-label sellers. Xu stated that while the company will continue to innovate with monetization products, including AI-driven tools, future increases will be based on achieving GMV growth and market share stability, rather than a predetermined multi-year schedule.

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CFO Toby Xu explained that the primary business objective is to stabilize market share, and the monetization rate reflects that. He noted that new products have successfully improved monetization from previously under-monetized merchants, and payment commissions have also contributed. Looking forward, he confirmed that Alibaba will continue to innovate with new monetization products, including those leveraging AI, to enhance the take rate after first ensuring GMV growth and market share stability.

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Executive Yongming Wu countered that live-streaming on Taobao and Tmall has seen strong growth by creating synergies with high-quality brand stores. He stated that in a slower market, brands prioritize platforms that drive sales, which benefits Alibaba. Regarding product mix, Wu affirmed the focus remains on branded goods for core VIP members, but the company will adapt its supply to meet potential new demand for white-label goods from new user cohorts.

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CEO Yongming Wu responded that it's still early days for AI business models. He noted that while model differentiation is narrowing, all models require cloud computing, making cloud hosting the clearest monetization path. Wu identified high-potential internal applications within the Taobao app, Quark (AI search), DingTalk (enterprise collaboration), and Amap (local services) to enhance user engagement and create value.

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