Long-Term Growth and Ecosystem Investment

In Q2–Q4 2024, management consistently stressed a commitment to high-quality development and a long-term strategic view, emphasizing sustainable investments despite short-term profitability fluctuations. " " " "

In Q1 2025, the focus remains on long-term intrinsic value creation with renewed emphasis on ecosystem investments (e.g. launching the CNY 100 billion support program) even as short‐term metrics (e.g. margins) suffer. " " "

Consistently recurring; sentiment has intensified with a greater focus on long-term value despite short-term profit pressures.

Enhanced Merchant Support and Transition

Q2–Q4 2024 discussions revolved around supporting merchants through initiatives such as the CNY 10 billion fee reduction and high-quality merchant support programs, aimed at improving operational efficiency and supply chain upgrades. " " " "

In Q1 2025, the support measures have scaled up significantly, transitioning to a massive support program of CNY 100 billion, which includes expanded giveback initiatives to further support merchant competitiveness. " " "

Evolved from fee reductions to a broader, more comprehensive support strategy with higher investment levels.

Supply Chain Transformation and Innovation

Previously, Q2–Q4 2024 emphasized ongoing supply chain upgrades, technology adoption, and digital initiatives that supported agricultural and manufacturing partners, with several examples of merchant transformation. " " " "

Q1 2025 continues the theme by highlighting digital innovations such as a new digital system for agriculture (e.g. in Finland) and a shift from traditional OEM models to brand-driven approaches. " " "

Steady focus with an increased emphasis on digitalization and automation to drive industry transformation.

Enhanced Consumer Initiatives

Q3–Q4 2024 featured strong promotional campaigns (e.g. 10 billion consumption vouchers, super level savings initiatives) while Q2 2024 did not mention consumer initiatives. " "

Q1 2025 introduces additional consumer-oriented programs, including merchant giveback initiatives and a new price drop protection service, enhancing the range of consumer benefits. " " "

Recurring with added components; recent period expands on initiatives to further strengthen consumer incentives.

External Policy Uncertainties and Macroeconomic Pressures

Across Q2–Q4 2024, external pressures were noted in terms of macroeconomic shifts, compliance challenges, and evolving policy environments impacting global and domestic operations. " "

In Q1 2025, external factors such as new tariff policies and heightened pressure on merchants are stressed, with additional emphasis on limitations in adapting quickly to these policy changes. " "

Consistently mentioned with a more pointed emphasis on current policy-induced challenges in Q1 2025.

Intensifying Domestic E-commerce Competition

All previous periods (Q2–Q4 2024) discussed the rapidly intensifying competitive environment in China, with acknowledgments of slowed revenue growth and the need for ongoing operational innovation. " " "

Q1 2025 reaffirms these challenges, highlighting both increased competitive pressures and the inherent disadvantages of its third-party marketplace model for supporting merchants. " " "

A recurring challenge with consistent negative sentiment; highlights the urgency for enhanced merchant support.

Profitability Pressure and Margin Compression

In Q2–Q4 2024, management noted some margin compression due to heavy investments, with Q4 showing a decline in operating margins and Q2–Q3 discussing the trade-off between investment and short-term profits. " " "

Q1 2025 reports a steeper decline in non-GAAP operating margin (from 33% to 19%) and increased expenses, underscoring the growing impact of heavy, long-term investments on profitability. " " "

Consistently present with intensifying pressure; short-term profitability is increasingly compromised by heavy, strategic investments.

Operational Limitations of Third-Party Platforms in Leveraging Policy Incentives

Q3 2024 explicitly detailed limitations due to the third-party model, leading to higher costs and challenges in leveraging macroeconomic policies. "

In Q1 2025, these limitations are revisited, emphasizing inherent disadvantages compared to first-party models, especially in passing on policy incentives to consumers. " "

Recurring with similar sentiment; it reappears as an ongoing structural challenge.

Global Expansion and International Business Challenges

Q2–Q4 2024 consistently addressed global expansion efforts and the challenges of operating in over 70 markets, with a focus on compliance, local supply chain improvements, and adapting to a rapidly changing external environment. " " "

Q1 2025 continues the international focus, detailing concrete initiatives (e.g. digital systems in Finland) and a concerted effort to stabilize prices and supply across global regions. " "

Steady and consistent focus; recent period adds specificity to initiatives supporting international business growth.

Reduced Emphasis on Promotional Campaigns

In Q3 and Q4 2024, promotional campaigns were emphasized with active initiatives like the Double 11 voucher campaigns and consumption vouchers, while Q2 2024 offered no mention on this topic. " "

Q1 2025 does not mention a reduced emphasis on promotional campaigns, suggesting that this focus has diminished or been deprioritized compared to previous periods [documentation not available].

Potential shift or omission in focus; indicates that promotional campaigns may have been temporarily de-emphasized in Q1 2025 relative to earlier periods.