Question · Q3 2025
Yue Xu inquired about the material impact of a recent 15% cap on ad spend deduction on overall bidding intensity and future revenue growth, and the implications of peers expanding into public traffic acquisition on margin and customer acquisition costs.
Answer
CFO Ray Wan stated that no material impact has been observed yet, but a market-wide standard could drive up ad costs, favoring efficient players. He noted that increased external traffic by partners validates Yuanbao's model and the health insurance market's potential, emphasizing operational efficiency as key to competitive advantage.
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