Yuan Liao

Yuan Liao asked about the impact of generative AI and AI agents on Yuanbao's products and business models, the strategic roadmap for future algorithm and product innovation, and the current market penetration rate within Yuanbao's target demographic with future upside growth potential.

Answer

CFO Ray Wan detailed that AI is integrated across operations, from traffic acquisition to R&D and customer service, with LLMs enhancing efficiency, innovation, and consumer experience. He highlighted the vast underserved potential in the commercial health insurance market, noting Yuanbao's online inclusive model is well-suited for significant upselling and cross-selling opportunities.

Yuan Liao asked how the rapid development of generative AI and AI agents is impacting Yuanbao's products and business models, requesting insights into the strategic roadmap for future algorithm or product innovation. She also questioned the current market penetration rate within Yuanbao's target demographic and the potential for future upside growth.

Answer

Ray Wan, CFO, detailed AI integration across Yuanbao's operations, from traffic acquisition to R&D and customer service, highlighting its role in innovation and elevating consumer experience. He discussed the vast underserved market for commercial health insurance in China, Yuanbao's ideal positioning with its online inclusive model, and the tremendous headroom for upselling and cross-selling additional products.

Yuan Liao questioned how Full Truck Alliance has implemented measures to align with the current anti-evolution policy environment, specifically regarding enhanced protection and benefits for shippers and truckers.

Answer

Simon Chai, Chief Financing and Investment Officer, stated that the company is pursuing sustainable, high-quality growth through ecosystem refinement, structural optimization, and user protection. He highlighted initiatives such as ID verification, fulfillment credit scoring, refining user tiering, blocking abnormally low prices, and an upgraded comprehensive protection program with guaranteed compensation for trucker members.

Yuan Liao from CITIC asked how Full Truck Alliance has implemented measures to align with the current anti-evolution policy environment, focusing on enhanced protection and benefits for shippers and truckers.

Answer

Simon Chai, Chief Financing and Investment Officer, stated that the company's strategy focuses on sustainable, high-quality growth through ecosystem refinement, structural optimization, and user protection. Key measures include enhancing ecosystem integrity with ID verification and credit scoring, emphasizing fair pricing and healthy competition by blocking abnormally low prices, and strengthening user protection with a comprehensive program covering freight payment defaults, empty runs, and cargo damages, including guaranteed compensation for trucker members.

Yuan Liao from CITIC Securities Company inquired about the operational changes and user behavior shifts following the August 1st adjustment to the freight brokerage service, and its future financial outlook.

Answer

Simon Chong Cai, Chief Financing & Investment Officer, stated that the company increased the freight brokerage service fee to 10-11% to offset the cancellation of government grants. Operationally, the focus has been on customer communication and retention, with early observations showing user retention is in line with expectations. He believes the adjustment will have limited impact on other services and will ultimately optimize the company's revenue structure, reduce cash flow uncertainty, and lead to industry consolidation.

Yuan Liao from CITIC Securities inquired about the key considerations for the increased investment in autonomous driving company Plus PRC and the current progress of its business.

Answer

Chief Financing and Investment Officer Chong Cai explained that the investment aims to capitalize on autonomous driving's shift from validation to commercialization. He noted that Plus PRC is focused on practical applications, has joint R&D with OEMs, and has begun delivering freight services with its intelligent trucking fleet for real-world data accumulation.

Yuan Liao from Citic Securities inquired about Alibaba's shareholder return strategy, specifically asking how the company plans to deploy its remaining share buyback authorization while also investing heavily in AI.

Answer

CEO Yongming Wu highlighted the significant repurchases already made, achieving a 5% net reduction in share count over nine months. He explained that the pace of buybacks considers the share price, noting the accelerated pace when the price was considered undervalued. Wu emphasized that the Board's capital management committee will continue to optimize shareholder returns through a combination of dividends, buybacks, and strategic investments.