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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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%.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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