Alicia Yap

Alicia Yap inquired about the latest consumer sentiment, shifts in spending behavior, and category performance, specifically asking about brands' marketing budget willingness for recent promotions and the anticipated impact on Q4. She also sought comments on the 2026 outlook, strategic priorities like margin expansion and brand extensions, and the role of AI.

Answer

Junhua Wu (Chief Strategy Officer) noted improved consumer sentiment post-W11, with a focus on value and strong performance in sports and apparel, while home appliances saw softness. Vincent Wenbin Qiu (CEO) outlined 2026 priorities: for BEC, margin expansion and cost efficiency through distribution models; for BBM, ensuring existing brands' success, developing synergy with BEC for high-ownership distribution in soft goods, and careful selection of new brands, alongside continued investment in AI and data warehouse.

Alicia Yap inquired about the latest consumer sentiment, shifts in spending behavior, and the performance of various categories, specifically asking which categories exceeded or fell short of expectations. She also asked about brands' willingness to spend on marketing for the Single's Day promotions, the anticipated impact on the fourth-quarter outlook, and preliminary comments on the 2026 outlook, including strategic priorities, margin expansion targets, brand extensions, and the role of AI.

Answer

Junhua Wu, Chief Strategy Officer, observed improved consumer sentiment post-W11, noting a focus on value and targeted purchases. He highlighted strong performance in sports, apparel, and FMCG categories, while home appliances saw softness due to reduced subsidies. Wu also indicated stronger brand support for marketing and inventory allocation, with a shift towards P&L over GMV growth. Vincent Qiu, CEO, outlined 2026 priorities: for BEC, margin expansion and cost efficiency through distribution models and lean operations, especially in soft goods; for BBM, ensuring success for existing brands (GAP, Hunter) and developing synergy with BEC to transfer high-ownership business knowledge for margin expansion. He also mentioned active but careful consideration for new BBM brands and continued investment in AI and data warehouse capabilities.

Alicia Yap of Citigroup inquired about the revenue contribution from Tmall versus non-Tmall platforms, the impact of increased competition in instant retail, the sustainability of the Baozun Brand Management (BBM) segment's growth, and the timeline for BBM's profitability.

Answer

Junhua Wu, Co-Founder and Chief Strategy Officer, noted that during the 6/18 campaign, Tmall and JD.com saw strong GMV growth, with Tmall's growth being 2-3x that of JD. He added that Baozun is testing instant retail for categories like FMCG and cosmetics. Ken Huang, CFO of Baozun Brand Management, expressed confidence in achieving full-year objectives and reiterated that the Gap brand is expected to reach breakeven in Q4. Junhua Wu also projected a promising second half for the Baozun e-commerce (BEC) business.

Alicia Yap of Citigroup inquired about the revenue contribution from Tmall versus non-Tmall platforms, the competitive impact of instant retail, the sustainability of Baozun Brand Management (BBM) growth, and the profitability timeline for the BBM segment.

Answer

Junhua Wu, Chief Strategy Officer, noted that during the 618 campaign, GMV growth on Tmall was 2-3x that of JD.com, and the company is testing instant retail in categories like FMCG and cosmetics. Ken Huang, CFO of Baozun Brand Management, affirmed confidence in BBM's continued momentum through store expansion and product launches, reiterating the target for the Gap brand to achieve breakeven in Q4. Mr. Wu also added that the e-commerce (BEC) business anticipates a promising second half.

Alicia Yap of Citigroup inquired about Baozun's expectations for the 2025 6/18 shopping festival, including any preliminary results and platform-specific traction. She also asked for an update on the progress of onboarding new brands for the company's IT and logistics services.

Answer

Junhua Wu, Director and Chief Strategy Officer, responded that the 6/18 campaign's first wave showed positive results with strong presales, lower cancellation rates, and lower return rates than the prior year, led by home appliance and luxury categories. Regarding services, Mr. Wu noted that while IT services revenue saw a slight decline due to project cadence, there is strong interest from brands in one-stop inventory solutions, with a revenue catch-up expected in H2. For logistics, the focus is on supporting key clients while developing new B2B and reverse logistics services to complement existing operations.

Alicia Yap of Citigroup inquired about recent consumer consumption sentiment, the growth outlook for 2025, and the potential impact of smartphone trade-in subsidies. She also asked for an update on Gap China's same-store sales growth, the performance of other brands under Baozun Brand Management (BBM), and the key priorities and strategic direction under the new leadership of Mr. Junhua Wu.

Answer

Junhua Wu, Chief Strategy Officer, addressed consumer sentiment, noting positive trends from recent promotions and government support, particularly in home appliances and smartphones. He outlined his priorities as focusing on bottom-line profitability through operational optimization and top-line growth via same-store growth, omnichannel expansion, and AI initiatives. Ken Huang, CFO of Baozun Brand Management, reported that Gap China saw low single-digit same-store growth in Q4 2024, while the Hunter brand experienced very rapid growth of over 100%.

Alicia Yap of Citigroup inquired about Baozun's performance during the recent Singles' Day shopping festival, asking which categories exceeded or missed expectations and how GAP China specifically performed. She also asked about evolving consumer behaviors and how Baozun plans to leverage AI technology to attract more brands, particularly smaller domestic ones.

Answer

Arthur Yu, President of Baozun E-Commerce, stated that Singles' Day performance was solid, with apparel, sports, and luxury performing well, while small appliances and travel were below expectations. He highlighted higher return rates but noted Baozun's stable infrastructure was a key advantage. On AI, he explained its use in improving efficiency with tools like S-Whiz and enhancing brand decision-making with Baozun Business Intelligence. Ken Huang, CFO of Baozun Brand Management, added that GAP China's sales and GMV grew by double digits, with its Tmall ranking improving.

Alicia Yap asked how the intensified competitive landscape among e-commerce players has affected Baozun and about consumption trends for the second half, specifically regarding Gap's offline store traffic and the outlook for Digital Marketing and Warehousing revenue.

Answer

Arthur Yu, President of Baozun E-commerce, explained that the competition is a net positive, as it highlights Baozun's strengths in omnichannel capabilities and its advisory role, strengthening its position between brands and platforms. Ken Huang, CFO of Baozun Brand Management, noted that Gap's offline traffic is improving, especially in August, and the company sees an opportunity to optimize store locations to capitalize on this trend.

Alicia Yap from Citi Group followed up on the positive feedback for Ananta showcased at the Tokyo Game Show. She sought more details on user feedback, market positioning, game differentiations, content, innovative gameplay, and updates regarding next testing and official launch timing in 2026.

Answer

William Ding, CEO of NetEase, confirmed Ananta's significant attention and recognition at the Tokyo Game Show, including being named one of the most promising upcoming titles. He stated that with console-quality content, innovative monetization, and a focus on long-term operations, Ananta is expected to secure a new industry position. Ding indicated that development is on track, with testing and launches proceeding as scheduled, and further updates to be shared when available.

Alicia Yap followed up on Ananta's recent showcase at the Tokyo Game Show, asking for more details on user feedback, the game's market positioning and differentiation, and any updates regarding its next testing timing and official launch in 2026.

Answer

Bill Pang, VP of Corporate Development, NetEase, stated that Ananta garnered significant global social media attention and won the Japan Game Award 2025 Future Division for most promising upcoming titles. He noted the game aims to secure a new industry position through console-quality content, innovative monetization, and long-term operations. Development is on track, with testing and launches proceeding as scheduled, and further updates to be shared when appropriate.

Alicia Yap from Citigroup asked for an update on the sequential performance of Blizzard titles in China and questioned whether the current player base is fully tapped, or if future growth will depend more on content updates versus new user acquisition.

Answer

Bill Pang, VP of Corporate Development, explained that Blizzard game metrics have surpassed pre-shutdown levels, driven by extensive online and offline marketing. He emphasized that by implementing improvements aligned with local player tastes, there remains a significant opportunity to attract new and returning players, suggesting the user base is not yet fully saturated.

Alicia Yap of Citigroup inquired about the impact of AI on game development, specifically if it allows for faster content updates and shorter development times for expansion packs, and how this might change NetEase's planning and promotion strategies.

Answer

CEO William Ding, via interpreter Bill Pang, confirmed that NetEase has been using AI in game development and user experience for at least five years and continues to invest in the technology. He believes AI adoption is an industry-wide trend, not specific to one company, though the depth of application may differ. Mr. Ding emphasized that AI is critically important not just for the game industry but for many other businesses as well.

Alicia (Yik Wah) Yap of Citigroup asked about the company's expectations for the 'Overwatch 2' relaunch in China and how NetEase plans to balance the promotion and player base of 'Overwatch 2' with its own hero shooter, 'Marvel Rivals'.

Answer

Executive Bill Pang, translating for CEO William Ding, stated that expectations for 'Overwatch 2' are high, aiming to revitalize the franchise to new heights, not just restore it. He noted that initial data from the relaunch was very encouraging. Management believes the market is large enough to accommodate both 'Marvel Rivals' and 'Overwatch 2', as each game can successfully cater to the diversified demands of their respective player communities.

Alicia Yap of Citigroup asked for management's assessment of 'Naraka: Bladepoint Mobile's' performance since its July launch and whether it met expectations. She also inquired about upcoming content updates and any significant differences in the gamer profiles between the mobile and PC versions.

Answer

Bill Pang, an executive, reported that 'Naraka: Bladepoint Mobile' has successfully acquired 50 million new users since its launch. He explained that mobile gamers have more diversified needs—including hardcore competitive, social, and collector-type players—compared to the PC audience. Consequently, NetEase's strategy is to provide differentiated content tailored to each platform. Pang concluded by stating the game is in a very healthy and stable state, and the company has long-term confidence in the product.

Alicia Yap asked for details on the recent restructuring of Vipshop's merchandising team, its impact on Q3 2025 performance, and whether changes primarily improved customer preference prediction or supplier relationships for SVIP-preferred merchandise. She also questioned how AI is contributing to financial growth, SVIP member expansion, and the re-engagement of churned users.

Answer

CEO Eric Shen and Head of Investor Relations Jessie Zheng explained that organizational changes involved flattening the structure, increasing founder involvement, bringing in new talent, and fostering cross-department collaboration to enhance agility and efficiency. They noted AI's role in improving conversion through visual models, boosting customer acquisition efficiency via AI-generated ad creatives, and ongoing experimentation with AI agents for customer churn and SVIP retention.

Alicia Yap asked for details on the recent changes and restructuring of Vipshop's merchandising team, their impact on Q3 performance, and how they improve customer preference prediction and merchandise sourcing for Super VIP members. She also inquired about how AI contributes to financial growth, specifically in targeting and re-engaging churned users.

Answer

Jessie Zheng, Head of Investor Relations, explained that the organizational changes were company-wide, aiming for agility and efficiency, with founders becoming more hands-on and new talent joining senior merchandising roles. These changes foster cross-category purchases and integrated marketing. Regarding AI, she highlighted its acceleration across the business, citing benefits like visualized try-on features, improved search/recommendation conversions, and AI-powered advertising boosting customer acquisition efficiency. She added that Vipshop is experimenting with AI agents to address customer churn and enhance platform experience.

Alicia Yap of Citigroup inquired about the competitive impact of quick commerce platforms on Vipshop's customer behavior and spending, and whether recent adverse weather conditions in China affected apparel sales.

Answer

Jessie Zheng, Head of Investor Relations, stated that Vipshop has not seen a material impact from quick commerce, as the company primarily focuses on apparel rather than the standardized items suited for rapid delivery. Zheng also noted that despite volatile weather, the company observed no significant impact on consumer travel plans or apparel purchasing activities across different city tiers.

Alicia Yap from Citigroup asked about the potential indirect impact of U.S. tariffs on apparel, specifically if excess export inventory is being diverted to the domestic market, and also inquired about the company's view on a potential secondary listing in Hong Kong.

Answer

CEO Eric Shen (interpreted by Jessie Fan) stated that Vipshop has very limited direct exposure to U.S. tariffs but sees a long-term opportunity to work with export-focused companies diverting goods to the domestic market. CFO Mark Wang added that the company is actively evaluating the option of a Hong Kong listing and will update the market on any progress.

Alicia Yap from Citigroup asked about the primary drivers behind the Q4 outperformance, questioning whether it was due to marketing efforts or macro improvements. She also sought to quantify the GMV contribution from the government's trade-in program in Q4.

Answer

CEO Eric Shen attributed the Q4 outperformance to several factors: more active consumers in late November and December, normalized weather boosting winter clothing sales, and better-than-expected consumer sentiment. He also highlighted proactive merchandising and targeted promotions. Regarding the trade-in program, he noted it contributed an incremental RMB 300 million to RMB 400 million in GMV, which was not a highly significant portion of the total.

Alicia Yap of Citigroup asked for details on the Singles' Day sales performance, whether the Q4 guidance was conservative due to uncertainty in December, and how the return rate compared to previous periods.

Answer

CEO Eric Shen, via interpreter Jessie Fan, explained that on a full-cycle basis, Singles' Day GMV grew over 20%. However, on an apple-to-apple basis, performance was in line with expectations. He confirmed the Q4 guidance is conservative, partly due to a high comparison base from an unusually cold Q4 last year. The return rate during the promotion was stable and in line with expectations, increasing by only two percentage points, unlike the significant jumps seen at other platforms.

Alicia Yap asked about PDD Holdings' global business operations, specifically addressing the regulatory and public scrutiny faced in various countries, and sought management's perspective and response plans. Her second question focused on the investment in the merchant ecosystem over recent quarters, requesting an update on its current status, methods for assessing financial impact, and future strategic plans.

Answer

Chairman and Co-CEO Chen Lei addressed the global business, stating the goal is long-term healthy development by integrating with local cultures and legal systems, and providing a safe shopping environment. He detailed substantial investments in platform governance, product compliance, and professional compliance teams, acknowledging significant regulatory changes and inherent uncertainties that could impact financial performance. Executive Director and Co-CEO Zhao Jiazhen then discussed merchant ecosystem investments, highlighting PDD Holdings' decade-long commitment to social responsibility and leveraging digital capabilities for rural revitalization and industry upgrades. He mentioned strategic initiatives like the 10 billion agriculture research program and the 100 billion support program, emphasizing that a healthy merchant ecosystem is crucial for high-quality development and that fee reduction policies are yielding positive feedback.

Alicia Yap inquired about PDD's global business operations facing regulatory and public scrutiny in various countries, management's perspective on this, and their response plans. She also asked about the current status and financial impact assessment of the company's merchant ecosystem investments over the past few quarters, along with future plans.

Answer

Chen Lei, Chairman and Co-CEO, addressed the global business challenges, stating that PDD aims for long-term sustainable development by integrating with local cultures and legal systems. He emphasized that providing a safe shopping environment is fundamental, and PDD has made substantial investments in trust, safety, and product compliance, including refining merchant onboarding and building professional compliance teams. He acknowledged that changing global regulatory environments introduce significant uncertainties that could impact financial performance. Zhao Jiazhen, Executive Director and Co-CEO, then discussed merchant ecosystem investments, highlighting the 100 billion support program and initiatives like Duoduo Premium Produce. He noted that these investments are improving the platform ecosystem, driving high-quality development, and are already yielding positive feedback, with a commitment to continue addressing practical challenges for users, merchants, and industries.

Alicia Yap of Citigroup inquired about the narrowing revenue growth lead amid intensified competition from peers investing in instant retail and content e-commerce. She also asked about the strategic direction and growth opportunities for PDD's global business in the current environment.

Answer

Executive Director and Co-CEO Zhao Zhao Zhen acknowledged that intensified competition slowed revenue growth and reduced operating profit. He stated PDD is proactively increasing long-term investments, such as the RMB100 billion support program, to strengthen the merchant ecosystem, even if it means sacrificing short-term profits. Chairman and Co-CEO Chen Lei added that the global business, while facing volatility, is focused on strengthening its fundamentals by investing in supply chain, service, and compliance capabilities for its next phase of growth.

Alicia Yap from Citigroup inquired about the impact of macro policy changes, such as tariffs, on merchants and PDD's strategic response. She also asked for an explanation of the significant decline in net profit margin in Q1 and whether this trend is expected to continue.

Answer

Chairman and Co-CEO Lei Chen explained that PDD is taking proactive actions, including launching the RMB 100 billion support program, to help merchants manage risks from policy changes and external headwinds. The VP of Finance, Liu Jun, addressed the profitability question, attributing the margin decline to a slowdown in revenue growth combined with increased, long-term ecosystem investments. She noted that profitability is likely to face challenges in the near term but emphasized the company's focus on long-term intrinsic value over single-quarter results.

Alicia Yap from Citigroup asked for insights into recent developments in the competitive domestic e-commerce landscape and any potential adjustments to the company's strategy. She also questioned the potential impact of changing macro conditions and policies on the global business and the company's planned response.

Answer

Co-CEO Jiazhen Zhao responded on competition, stating that it is a driver of innovation and the company remains focused on its quality-driven strategy and consumer loyalty as core strengths. Executive Lei Chen addressed the global business, acknowledging challenges from external changes and fierce competition. He affirmed the company's commitment to strict compliance, proactive communication, and continued investment in supply chain efficiency, service quality, and corporate social responsibility to build a sustainable global platform.

Alicia Yap inquired about the impact of the newly unveiled ERNIE 5.0 on next-stage applications like digital humans, key focus areas for future ERNIE iterations, and its differentiation in the market.

Answer

CEO Robin Li explained that ERNIE 5.0, Baidu's first native omni-model foundation model, excels in understanding, creative writing, and instruction following. He highlighted its role in powering digital humans with fluent, contextually accurate dialogue and visual realism, as well as enhancing FM Agent for enterprise efficiency, AI search, and cloud services. Li emphasized an application-driven approach, focusing ERNIE's strengths on Baidu's portfolio to deliver measurable value.

Alicia Yap inquired about Ernie 5.0's role in driving applications like digital humans, its key future iteration focus areas, and its differentiation in the market.

Answer

CEO Robin Li explained Baidu's application-driven approach for Ernie's iteration, highlighting Ernie 5.0's world-class capabilities in omni-model understanding, creative writing, and instruction following. He detailed its impact on digital humans, enhancing fluent and contextually accurate dialogue with visual realism, and on FM Agent for enterprise efficiency. Li emphasized the goal for digital humans to surpass human hosts in e-commerce and for FM agents to solve increasingly complex industrial scenarios, reiterating Baidu's commitment to investing in technology that creates measurable value.

Alicia Yap of Citigroup inquired about the competitive landscape for AI foundation models, the strategic market positioning of Baidu's ERNIE, and the development roadmap for its next version, ERNIE 5.0.

Answer

Co-Founder, Chairman & CEO Robin Li responded that the model landscape is diverse and value is shifting to the application layer. He emphasized Baidu's 'application-driven' approach for ERNIE, focusing on strategic areas like AI search and digital humans. Li confirmed that the next flagship version of ERNIE is in development with significant improvements expected.

Alicia Yap of Citigroup inquired about Baidu's overall AI strategy, the technology roadmap for the ERNIE model in 2025, and the potential for further reductions in inference costs, particularly in light of the company's upcoming open-source plans.

Answer

CEO Yanhong Li explained that Baidu follows an application-driven approach, focusing model iterations on areas with tangible value, such as multimodality and digital humans. He confirmed that work on the next-generation models is underway and that inference costs will continue to decrease, citing recent significant price cuts for ERNIE 4.5 Turbo and ERNIE X1 Turbo. Li attributed these cost efficiencies to Baidu's full-stack AI architecture and reaffirmed the plan to open-source the ERNIE 4.5 series on June 30 to foster broader application development.

Alicia Yap of Citigroup Inc. inquired about Baidu's overall AI model strategy, the technology roadmap for the ERNIE foundation model in 2025, and the potential for further reductions in inference costs.

Answer

CEO Yanhong Li explained that Baidu's strategy is application-driven, focusing model iterations on areas with tangible product value, such as multimodality for Search and hyper-realistic digital humans. He confirmed that the next generation of models is in development and that Baidu can continue to drive down inference costs, citing recent significant price cuts for ERNIE 4.5 Turbo and ERNIE X1 Turbo as proof of their full-stack optimization capabilities. Li also reaffirmed the plan to open-source the ERNIE 4.5 series on June 30 to foster broader application and innovation.

Alicia Yap inquired about the strategic rationale behind open-sourcing the upcoming ERNIE 4.5 series and making the ERNIE bot free, particularly in light of competitors like DeepSeek, and asked how Baidu plans to maintain its lead in the foundation model market.

Answer

CEO Yanhong Li explained that the decision is driven by confidence in Baidu's technology and aims to accelerate adoption by allowing more developers and users to experience ERNIE's value. Li emphasized that while open-sourcing boosts awareness, the ultimate value lies in creating applications that solve real-world problems at scale, a core part of Baidu's strategy through its renovation of products like Search and Wenku.

Alicia Yap of Citigroup inquired about Weibo's advertising outlook for Q4 2025 and 2026, including expected growth rates, strategic updates, and the impact of AI on ad monetization, click-through rates, and advertiser ROI.

Answer

CEO Gaofei Wang and CFO Fei Cao discussed Q4 challenges like slowing consumption, national subsidy headwinds, and declines in gaming/smartphone sectors, offset by strong e-commerce and auto performance. For 2026, they noted potential boosts from the Winter Olympics and World Cup, while emphasizing a strategic shift towards brand and content marketing, and the significant role of AI in enhancing performance-based ads, which saw increased contribution in Q3.

Alicia Yap of Citigroup inquired about Weibo's advertising outlook for Q4 2025 and the full year 2026, including expected growth rates, strategic updates for ad products, and the role of AI in enhancing ad monetization, click-through rates, and advertiser ROI.

Answer

CEO Gaofei Wang explained that Q3 ad revenue decline was due to a high base from last year's Olympics and underperforming gaming/headset sectors, partially offset by strong e-commerce and automotive. For Q4, he noted slowing consumption and national subsidy headwinds, but anticipated strong demand from e-commerce and lifestyle services. Looking to 2026, he mentioned potential boosts from the Winter Olympics and World Cup for consumer goods. Weibo's strategy focuses on leveraging brand and content marketing (hot topics, celebrities, KOLs) and enhancing performance-based ads with AI, which has already shown significant improvements in conversion and ROI, contributing to a rising share of overall ad revenue.

Alicis a Yap inquired about the strategic direction for Weibo's intelligent search product, asking if it would remain integrated or become a standalone app, and questioned how AI and large language models have enhanced advertising products and monetization.

Answer

CEO Gaofei Wang explained that the AI-powered search, enhanced by models like DeepSeek, has significantly boosted user activity, with MAUs surpassing 30 million. He confirmed there are no plans to make it an independent product, instead leveraging it to drive traffic back to Weibo. Regarding monetization, Mr. Wang noted that AI has improved ad CTR by about 10%, but its overall impact on total ad revenue is still limited as the majority of ads are performance-based.

Alicia Yap asked for more details on the gaming business, specifically the biggest surprises from TLBB Return and whether TLBB Vintage new servers or TLBB Return was the larger driver for Q3's outperformance. She also sought clarification on whether the Q4 guidance decline for gaming was due to user drop-off or revenue decline for these specific titles. For advertising, she asked if any industry verticals or subsectors were showing improving or stable sentiment, contrasting with the deteriorating auto and IT services sectors.

Answer

Chairman and CEO Dr. Charles Zhang and CFO Joanna Lv highlighted that TLBB Return's surprises included user spending exceeding expectations despite its 'relaxing' positioning, and very stable user retention. They clarified that while user bases for TLBB Return and TLBB Vintage are stable, Q4 revenue is trending down due to fewer promotions for Vintage after a strong Q3, and a natural post-launch decline for Return. Dr. Zhang explained that the overall ad market is pressured, with auto facing fierce competition and thinning budgets. He noted that Sohu's unique offerings help secure ad budgets from auto and consumer electronics, despite the challenging market.

Alicia Yap from Citigroup asked about the expected timeline for the marketing services segment to reach breakeven, the drivers behind the Q3 sequential growth guidance for gaming, and how community events like the K-pop festival are accelerating user growth and contributing to revenue.

Answer

Chairman & CEO Charles Zhang stated that a breakeven timeline for marketing services is difficult to predict, as the focus is on achieving a 'critical point' of user growth for its social network products. Changyou CFO Yaobin Wang attributed the positive Q3 gaming guidance to stable performance from existing titles and incremental revenue from a new TLBB PC game launched in July. Zhang added that events like the K-pop festival are effective 'community builders' that establish Sohu as a leading platform in niche verticals, attracting users and some sponsorship revenue.

Alicia Yap of Citigroup asked for details on the specific AI models being integrated into Sohu's products, sought clarification on the large tax reversal, and inquired about the company's contingency plans for potential ADR delisting.

Answer

Chairman and CEO Dr. Charles Zhang stated that Sohu uses DeepSeek and proprietary models based on open-source LLMs. CFO Joanna Lv clarified the tax item was a non-cash accounting reversal of a previously recognized uncertain tax position. Regarding delisting risks, Dr. Zhang said the company is not actively forming plans but has time to consider options if the situation materializes, noting that being listed is not an absolute necessity.

Alicia Yap from Citigroup asked for more color on the macro advertising environment, inquiring if tech enthusiasm is boosting budgets, and requested an update on the remaining share buyback authorization. She also asked about the relative strength of specific advertising sectors like FMCG.

Answer

Chairman and CEO Dr. Charles Zhang explained that AI enthusiasm has not yet translated into higher ad spend due to persistent weak consumer consumption. He noted FMCG has become the top ad sector, surpassing auto. CFO Joanna Lv and Dr. Zhang confirmed that approximately $100 million remains on the company's share repurchase authorization of $150 million.

Alicia Yap asked about the synergies between the food delivery business and the general merchandise category, specifically how food delivery traffic benefits general merchandise. She also sought quantification of the retention rate for newly acquired food delivery users and their conversion into active JD core retail users. Additionally, she requested an update on JD's latest AI strategy and investment, detailing how AI has impacted core business operations and its financial implications.

Answer

CFO Ian Shan explained that food delivery generates deeper synergies with JD Retail, driving rapid DAU growth and over 40% YoY increases in quarterly active customers and shopping frequency. He noted high food delivery user retention and a new user conversion rate trending up, with the earliest cohort reaching close to 50% conversion to core retail in Q3. CEO Sandy Xu outlined JD's comprehensive AI capability framework and a sustained investment plan for a trillion RMB AI ecosystem over three years. She highlighted AI applications in retail (50+ tools for merchants, smart search) and logistics (robots, autonomous vehicles) to enhance efficiency, lower costs, and optimize user experience.

Alicia Yap at Citigroup asked about the synergies between JD.com's food delivery traffic and the general merchandise category, specifically inquiring about the retention rate of newly acquired users through food delivery and the quantification of new food delivery users who become active users of JD's core retail platform. She also requested an update on JD.com's latest AI strategy and investment, how AI has benefited the core business, and its financial impact.

Answer

CFO Ian Shan addressed the food delivery synergies, noting rapid DAU growth for the JD App and over 40% year-on-year growth in quarterly active customers and shopping frequency in Q3. He stated that JD Food Delivery's user retention rate remained high and boosted overall user engagement. Ian Shan highlighted that the conversion rate of new users acquired by JD Food Delivery to core retail users has been trending up, with the earliest cohort reaching close to 50% conversion in Q3. He also mentioned a stronger trend of cross-category purchases, especially in general merchandise, and accelerated development of on-demand retail. CEO Sandy Xu discussed JD.com's comprehensive AI capability framework and sustained investment to foster a trillion RMB scale AI ecosystem. She highlighted AI applications in retail (50+ tools for merchants, smart search/recommendation) and logistics (robots, autonomous vehicles, drones deployed globally) to enhance efficiency, lower costs, and optimize user experience.

Alicia Yap asked for details on the strategy and expectations for the upcoming 618 shopping festival and questioned JD.com's long-term growth drivers and net margin targets.

Answer

CEO Sandy Xu outlined that the 618 campaign is centered on 'better and cheaper,' featuring straightforward discounts, trade-in subsidies, and the debut of food delivery promotions, expressing confidence in user growth and sales. CFO Ian Shan reaffirmed that the long-term strategy focuses on enhancing user experience, strengthening 1P and logistics capabilities, and leveraging AI for efficiency. She confirmed that JD's long-term goal of achieving a high single-digit net margin remains unchanged, driven by scale and operational improvements.

Alicia Yap asked for management's outlook on the comparative year-over-year growth rates for the electronics category versus the general merchandise category in 2025. She also requested an update on JD.com's shareholder return progress and strategy.

Answer

CFO Ian Shan projected that the general merchandise category would sustain robust growth in 2025, serving as a key growth driver. He noted that while the electronics category will continue to gain market share, it faces a high comparison base in the second half of the year. Regarding shareholder returns, Mr. Shan highlighted the increased 2024 dividend of approximately $1.5 billion and the $3.6 billion spent on buybacks in 2024. He affirmed the commitment to utilizing the ongoing $5 billion buyback program and continuing the annual dividend policy.

Alicia Yap of Citigroup inquired about JD's plans to leverage government-backed appliance trade-in initiatives and their potential top-line impact. She also asked if JD would increase its focus on the resilient FMCG (supermarket) category amid soft consumer sentiment.

Answer

CEO Xu Ran confirmed that JD is actively collaborating with local governments and brands on trade-in programs and expects the new policies to provide an incremental boost to home appliance sales. She also highlighted the strong performance and long-term potential of the supermarket category, stating it will continue to be a key growth driver for the company by leveraging JD's unique supply chain strengths to expand market share.

Alicia Yap asked about Tencent Music Entertainment's 2026 pipeline for music concerts, how to model revenue growth from concerts, merchandising, and digital album sales, and the challenges and opportunities for sustainable long-term growth in the concert business.

Answer

Executive Chairman Cussion Kar Shun Pang, with translation by CFO Shirley Hu, reiterated TME's long-term commitment to the concert business, encompassing artist tours, top-tier singer concerts, and proprietary IP events like TMEA/TMA. He cited the successful G-Dragon Asia-Pacific tour as a key experience builder. Future plans include more top artist performances and IP events, aiming to elevate the concert experience through online-offline integration, which also drives SVIP subscriptions and comprehensive user experiences. He noted strong merchandise sales from events like G-Dragon's tour, indicating continued investment in the fan-based economy.

Alicia Yap inquired about the 2026 pipeline for music concerts, how to model revenue growth from concert merchandising and digital album sales, and the challenges and opportunities for sustainable long-term growth in the concert business.

Answer

Executive Chairman Cussion Kar Shun Pang highlighted TME's long-term commitment to concerts, including artist tours and proprietary events like TMEA. He noted the success of the G-Dragon Asia-Pacific tour and plans to enhance the concert experience, leveraging it to drive SVIP subscriptions and fan-based economy. CFO Shirley Hu translated.

Alicia Yap from Citigroup asked for details on the recently launched 'Bubble' fan communication feature, including user feedback, experience, and its future revenue potential.

Answer

Management, via a moderator, explained that Bubble was launched to meet fan demand for direct artist interaction and is seeing positive feedback, particularly on translation features. They plan to add Chinese artists and bundle the service with SVIP memberships, viewing it as a key future growth driver for SVIP. They believe it has significant potential for commercialization through features like live streaming.

Alicia Yap from Citigroup inquired about the recently launched 'Bubble' fan community, asking about user feedback, the overall experience, and its potential for future revenue contribution.

Answer

Management explained that 'Bubble' was launched with DearU to meet fan demand for direct artist communication and is being optimized, particularly for translation. The plan is to introduce Chinese artists and bundle the service with SVIP subscriptions to drive growth. They noted the user base is young and active, viewing 'Bubble' as a key step in social entertainment with significant commercialization potential, possibly through added features like live streaming.

Alicia Yap from Citigroup inquired about Tencent Music's 2025 growth outlook, specifically asking for guidance on music subscription revenue, user net additions, non-subscription revenue like advertising, and projections for gross and net margin trends.

Answer

Executive Chairman Kar Shun Pang expressed optimism for accelerated top-line growth and improved margins in 2025. CFO Min Hu detailed that the drivers for Q4's strong gross margin (43.6%)—including subscription growth, owned content, and cost optimization—are expected to continue, while the operating expense ratio should remain flat. CEO Liang Zhu added that the advertising business is poised for healthy growth, driven by the ad-supported model and diversification of advertisers.

Alicia Yap questioned the overall competitive landscape in Southeast Asia, asking if any specific countries are experiencing more intense competition or if peers are growing faster than Shopee. Alicia also explored the potential threat of live streaming peers shifting traffic and purchase frequency towards a shelf-based marketplace model. Additionally, Alicia asked if the current investment cycle, particularly in fulfillment capabilities, is similar to the front-end loaded investments seen a couple of years ago, with results expected later.

Answer

Management, primarily Tony Hou (CFO), described the competitive landscape in Southeast Asia as relatively stable, with no particular market showing significantly different intensity. He noted that live streaming peers attempting shelf-based models is not new and the nature of platforms differs, with commerce share remaining consistent. Tony Hou clarified that the current investment cycle is not similar to two years ago's front-loaded approach. Instead, it's an ongoing investment to strengthen competitive moats, like logistics and fulfillment, which are less CapEx intensive and contribute to immediate growth by lowering costs and improving delivery times.

Alicia Yap from Citigroup asked for an update on the competitive landscape in Southeast Asia, inquiring if any countries are experiencing more intense competition or if peers are growing faster than Shopee. She also asked if live streaming platforms are expected to shift traffic and purchase frequency towards shelf-based marketplace models and the potential threat this poses to Shopee. Her second question concerned whether the current investment cycle, particularly in fulfillment, is similar to two years ago, with front-end loaded investments leading to later GMV and market share growth.

Answer

Forrest Li, Chairman and CEO, indicated a relatively stable competitive landscape across Southeast Asia, with no particular market showing significant differences. He noted that live streaming peers focusing on shelf-based models is not new and the nature of platforms differs, suggesting no meaningful new impact on competition. Regarding the investment cycle, Li clarified it is not similar to two years ago. He described current investments as continuous efforts to strengthen Shopee's competitive moat through infrastructure like logistics and fulfillment, which are asset-light and less CapEx intensive. Chris Wang, President, added that these investments contribute to growth by lowering costs and improving delivery times, with programs like Shopee VIP showing immediate user engagement and spend increases.

Alicia Yap followed up on the competitive landscape in Brazil, asking about the impact of newcomers like Tmall and TikTok, and the contribution from higher-ticket items. She also questioned if Garena's increased booking guidance was driven primarily by Free Fire or new games.

Answer

Group CFO Tony Hou addressed the Brazil question, stating that Tmall remains a small player and TikTok's presence is nascent, while reiterating focus on fundamentals. Founder, Chairman & Group CEO Forrest Li clarified that the raised Garena guidance is mainly driven by Free Fire's strong momentum, citing a new map and successful IP collaborations.

Alicia Yap's line questioned the primary drivers for Shopee's sustained fast growth in Brazil and its expected duration. A second question concerned the impact of Shopee's new subscription membership on VAS revenue growth and the overall monetization rate outlook for the coming quarters.

Answer

Executive Hou Tianyu attributed the strong Brazil growth to a leading price advantage, significant improvements in SPX logistics infrastructure that shortened delivery times, and new seller services. He anticipates growth can continue given Brazil's low e-commerce penetration. Regarding monetization, he clarified that the VIP membership does not conflict with VAS revenue. He stated that while commission rate increases will be cautious, the overall monetization rate has meaningful room to grow, driven primarily by increasing the ad take rate.

Alicia Yap of Citigroup followed up on the GMV guidance, seeking a breakdown of drivers between new users, purchase frequency, and wallet share. She also asked about observed changes in consumer behavior and their effect on marketing and category mix. For the gaming segment, she questioned the drivers behind the guided double-digit growth for Garena's user base and bookings.

Answer

Group CFO Hou Tianyu stated that e-commerce GMV growth is a mix of new users and increased frequency, with no single dominant driver. He noted that improved service quality is attracting higher-value buyers, which aids category expansion. Chairman and Group CEO Forrest Li added that the Garena guidance is based on the existing game portfolio, primarily Free Fire. He attributed its growth to broad-based market penetration, including in new regions like Africa, and relentless focus on game accessibility, hyper-local content, and social media engagement.

Alicia Yap inquired about the growth outlook for Shopee in 2025, potential for intensified competition in Southeast Asia and Brazil, and how management would balance market share against profitability.

Answer

Forrest Li, Chairman and CEO, responded that it was too early to provide 2025 guidance but emphasized the strategy is to pursue profitable growth. He described the competitive environment as stable in both key regions and downplayed the impact of cross-border players, stating Shopee maintains a pricing advantage on its platform.

Alicia Yap asked for more details on Grab's MTU growth, specifically if there were differentiations in user profiles (e.g., gender, age, city tier) and any supporting metrics. Alicia Yap also questioned the expected growth rate for the delivery business in Q4 2025 and 2026, and whether sustained high growth would impact margin expansion.

Answer

President and COO Alex Hungate noted that on-demand MTUs grew 14% year-on-year, with daily transactions growing even faster, driven by saver deliveries (acquiring new users, increasing frequency) and high-value services. He highlighted that new MTUs from saver products skew younger and that GMV per MTU grew 7% year-on-year, indicating successful cross-selling. For future growth, Alex Hungate cited product-led viral growth, the GrabUnlimited subscription program, and the GrabMart opportunity, expecting continued margin improvement while investing in growth.

Alicia Yap inquired about the drivers of MTU growth, specifically asking if there were major differentiations in user profiles added this quarter (e.g., more female, younger generations, or lower-tier cities), and sought metrics. She also asked about the expected growth rate for the delivery business in Q4 2025 and 2026, questioning if it would normalize to mid-to-high teens or stay above 20%, and the potential impact on margin expansion.

Answer

President and COO Alex Hungate explained that on-demand MTUs grew 14% year-on-year, with daily transactions growing even faster, indicating increased frequency. He noted that saver deliveries and transport products were instrumental in acquiring new users, particularly younger customers, with almost a third of new delivery MTUs coming from saver options. High-value services also grew significantly. He affirmed that growth is distributed across big and small cities and that GMV per MTU grew 7% year-on-year, showing successful cross-selling and retention. For future growth, he cited sustainable drivers like product-led viral growth, the Grab Unlimited subscription program (20% of delivery MTUs), and the Grab Mart opportunity, expecting margins to improve towards long-term targets (4%+ for deliveries, 9%+ for mobility) without sacrificing growth.

Alicia Yap asked about the strategy for balancing faster volume from lower-AOV delivery products with segment margins, and also inquired about the potential timeline for a commercial rollout of autonomous vehicles (AVs) in Southeast Asia.

Answer

COO Alex Hungate stated that new product initiatives, including affordable and viral options, now account for a third of Deliveries GMV and are growing three times faster than existing products. Despite this mix shift, segment margins expanded year-over-year to 1.8%, with a long-term target of 4%+. CEO Anthony Tan addressed the AV question, stating Grab is 'leaning heavily' into the opportunity, leveraging its scale, brand trust, and mapping tech. He cited active pilots in Singapore and the Philippines and indicated more partnership announcements are forthcoming.

Alicia Yap inquired about the drivers behind the raised full-year EBITDA guidance, particularly the role of AI-driven cost optimizations, and asked about Grab's strategy for managing potential demand softness, questioning whether it would allow volumes to slow or use incentives to maintain engagement.

Answer

CFO Peter Oey expressed confidence in the guidance, citing strong Q1 results with record MTUs and revenue despite seasonality, coupled with ongoing cost discipline. President and COO Alex Hungate added that AI is already yielding productivity gains in marketing, which can be leveraged in a downturn. He emphasized that the strategy is to rely on tech and product innovation, such as viral features like family orders, rather than subsidies to drive growth, pointing to the large untapped market and Grab's track record of 13 consecutive quarters of EBITDA improvement.

Alicia Yap requested updates on cross-selling between Food and Mart, its impact on Average Order Value (AOV), and how Grab plans to leverage AI for cost optimization and demand generation, specifically asking about different AI models.

Answer

President & COO Alex Hungate highlighted strong ecosystem effects, noting that users transacting in both Food and Mart have 4x higher average spend and double the retention rate. CEO Anthony Tan discussed the company's deep integration of GenAI, citing a merchant AI assistant that boosted ad spend by 24% among engaged merchants. He confirmed Grab works with multiple foundational models, not just OpenAI, to drive productivity and sales.

Alicia Yap asked if faster growth in the Mart business could eventually accelerate growth in the Food business. She also followed up on incentives, questioning if a future scale-back could lead to a sharp margin jump, and inquired about AI's role in driving efficiency.

Answer

Chief Operating Officer Alex Hungate confirmed the strategy is to use Mart to drive higher overall user frequency, which benefits all on-demand services. Chief Financial Officer Peter Oey clarified that incentives are a dynamic lever, and the company will maintain a balanced approach to growth and profitability rather than engineering a sudden margin spike. Chief Executive Officer Anthony Tan added that Grab extensively uses AI, with over 1,000 models in production, and that GenAI is creating a step-change in productivity and efficiency across the business.

Alicia Yap of Citigroup inquired about Alibaba's strategic vision for the quick commerce market in China, the planned duration of heavy investment, and how this initiative will generate long-term value for the Taobao and China e-commerce platforms. She also asked for an update on progress, realized synergies, and the expected impact on GMV and Customer Management Revenue (CMR).

Answer

Alibaba Management detailed the significant early success of its Taobao Instant Commerce business, which launched four months prior. They reported that peak daily order volume reached 120 million, and monthly active consumers (MAC) hit 300 million in August, a 200% increase. Management highlighted key synergies, noting that QuickCommerce drove a 20% increase in the Taobao app's daily active users. The short-term strategy focuses on optimizing customer mix, order mix, and fulfillment efficiency to halve losses. The long-term vision is to achieve industry-leading efficiency and add RMB 1 trillion in incremental GMV over the next three years.

Alicia Yap requested more detail on the strong Customer Management Revenue (CMR) performance, asking for the contribution breakdown between GMV growth and take rate improvement. She also asked about future levers for monetization and whether the increased investment in food delivery would pressure the Taobao and Tmall Group's (TTG) EBITDA.

Answer

CFO Toby Xu attributed the strong CMR growth to two key factors: the software service fee implemented in September and the growing penetration of the QCT advertising product. He expects both to remain positive drivers. Regarding profitability, Xu reiterated that the primary goal is stabilizing market share, which requires ongoing investment. He acknowledged that these investments, including the new push into instant commerce, will cause quarterly fluctuations in TTG's EBITDA depending on competitive dynamics.

Alicia Yap followed up on the strong Customer Management Revenue (CMR) growth, asking for an elaboration on how much was driven by GMV versus take rate improvement. She also questioned how much more the current monetization levers could drive growth in fiscal 2026 and if the increased investment in instant commerce would pressure the Taobao and Tmall Group's EBITDA.

Answer

CFO Toby Xu attributed the strong CMR growth primarily to two factors: the new 0.6% software service fee and the increasing penetration of the company's 'QCT' advertising product, both of which he expects to continue contributing in the new fiscal year. Regarding profitability, he stated that the primary goal remains market share stabilization, which requires ongoing investments that will cause quarterly EBITDA fluctuations, and the new investment in instant commerce will also have an impact.

Alicia Yap asked about the performance of the 11-11 Singles' Day promotion, the financial impact of platform-funded coupons versus merchant-funded ones, and the broader macroeconomic outlook for consumption heading into 2025.

Answer

Executive Yongming Wu stated that the 11-11 campaign's GMV growth was robust and exceeded both internal and merchant expectations. He clarified that platform-issued coupons for 88VIP members are distinct from jointly-funded category coupons and ultimately encourage future merchant ad spending. Wu also expressed optimism that government stimulus measures, which are still in their early stages, will positively impact overall consumption, particularly for branded goods.

Alicia Yap inquired about the competitive landscape for Alibaba International Digital Commerce (AIDC), AliExpress's key advantages, and whether AliExpress has a profitability timeline similar to Lazada.

Answer

AIDC CEO Jiang Fan described the segment as a diverse mix of local and cross-border businesses, with a key advantage in integrating China's supply chain. He confirmed Lazada achieved single-month EBITDA profitability in July but did not provide a specific breakeven timeline for AliExpress, stating the focus remains on optimizing the AE Choice model for efficiency and quality growth.

Alicia Yap of Citigroup inquired about Alibaba's Cloud AI strategy, its potential impact on revenue growth and margins, and the significant planned increase in CapEx over the next three years.

Answer

CEO Yongming Wu explained that Alibaba's primary AI goal is the pursuit of AGI, which they believe will unlock immense business value. He confirmed the plan to invest more in cloud and AI infrastructure in the next three years than in the past decade, with spending expected to be relatively even annually. Wu acknowledged that this investment will impact depreciation but stated the company anticipates huge internal and external customer demand to rapidly absorb the new capacity.

Alicia Yap questioned the 2025 guidance, asking why strong Q1 growth implies a second-half slowdown and why the Q1 EBITDA margin is guided lower than the full year. She also asked about DeepSeek and the long-term impact of AI on search.

Answer

CFO Frode Jacobsen explained the guidance reflects a conservative, normalized sequential growth model after a strong Q4 lifted the base. He noted the Q1 margin reflects higher ad tech costs, which are expected to be offset by economies of scale later in the year. Co-CEO Lin Song added that DeepSeek is already in their developer browser and that user intent monetization is key, regardless of whether it's through search or AI chatbots.

Alicia Yap requested the latest user metrics for the Aria AI assistant and asked for an initial outlook on next year's revenue growth and EBITDA trends, including key areas of investment.

Answer

Co-CEO Song Lin reported a significant increase in Aria usage, up nearly 50% from Q2 to Q3, with more growth expected in Q4 due to improved accessibility. CFO Frode Jacobsen addressed investments, stating that the focus is on the core product portfolio. He highlighted a substantial Q4 marketing budget increase to support the new Opera One and GX releases but deferred providing a 2025 outlook until the Q4 results announcement.

Inquired about the profile of users acquired through JD channels, performance during the Singles' Day promotion, and overall trends in consumer spending and confidence impacting the JD NOW business.

Answer

The executive stated that users from JD.com have higher purchasing power and demand for quality. In Q3, key operational metrics improved, with user traffic conversion, click-through rates, and average monthly transaction users from the JD App all increasing significantly (over 100% YoY growth for users and orders). The repeat purchase rate for JD NOW consumers via the JD channel rose by over 10 percentage points sequentially. The company also saw strong growth in JD Plus members using the service and launched JD NOW brand flagship stores to deepen integration with JD.com's ecosystem.

Inquired about user consumption patterns by category for JD NOW, potential pressure on take rates from the macro environment, and the gross profit trends for Dada NOW's various business segments.

Answer

The executive acknowledged that proactive business adjustments have impacted short-term GMV and revenue but have paved the way for long-term growth, particularly on the JD App channel. For JD NOW, the supermarket category is stable, while non-supermarket categories like flowers and beverages are growing faster. For Dada NOW, the focus remains on the Key Account (KA) business to increase market share, and on-demand delivery demand is resilient across categories.