Summary of PDD Holdings Inc (PDD.O) Conference Call Company Overview - **Company**: PDD Holdings Inc (PDD.O) - **Industry**: E-commerce and online marketplace Key Points and Arguments 1. **3Q25 Earnings Expectations**: PDD is expected to report 3Q25 results by the end of November, with potential for better-than-expected profits due to the rebound of Temu sales in the US and continued growth in Europe [1][3][11] 2. **Profitability Management**: Management indicated that the profit levels achieved in 2Q25 are not sustainable due to ongoing commitments to merchant support, suggesting a cautious approach to future earnings expectations [1][2] 3. **Sales Projections**: Total revenues for 3Q25 are projected to increase by 8% year-over-year to RMB 107.0 billion, with online marketplace services expected to grow by 15% year-over-year [3][10] 4. **Temu Performance**: Temu's sales in the US are projected at RMB 37 billion (approximately US$5.19 billion), reflecting a 5% year-over-year decline, but with signs of recovery in user engagement [3][45] 5. **Market Positioning**: PDD's China business is expected to remain resilient, with GMV growth likely outpacing peers due to the absence of a tough comparative base from last year [1][3] 6. **Cost Adjustments**: Adjustments have been made to net interest income and selling & marketing expenses for 2H25 and 2026-27, reflecting a more realistic forecast and diligent cost control [2][10] 7. **Traffic Growth for Temu**: Temu's global monthly active users (MAU) increased by 42% year-over-year to 192 million for iOS and 63% year-over-year to 305 million for Android, with notable growth in the US market [4][37] 8. **Promotional Strategies**: Temu is extending its Black Friday campaign to a 51-day period, focusing on price competitiveness and algorithm-driven product selection [4][33] 9. **Financial Metrics**: Adjusted net profit for 2025 is projected to decline by 5% year-over-year to RMB 106.5 billion, with a net profit margin of 24% [3][10] 10. **Target Price Adjustment**: The target price for PDD has been adjusted to US$167, maintaining a "Buy" recommendation with an expected share price return of 31.1% [6][10] Additional Important Insights 1. **Double 11 Promotions**: PDD's Double 11 Grand Promotion will run from October 16 to November 14, featuring various subsidy games to engage users [14] 2. **Technical Service Fee Adjustments**: PDD is adjusting technical service fee rates for certain categories in its "10 Billion Subsidy" program, indicating a strategic focus on high-profit potential categories [12] 3. **Kuai Tuan Tuan Testing**: PDD is testing a "Meal Ordering" service under its community group buying product, Kuai Tuan Tuan, to enhance user engagement [16] 4. **E-commerce Trends**: The overall online retail sales in China showed a year-to-date growth of 9.6% as of August 2025, indicating a positive trend in the e-commerce sector [23][30] This summary encapsulates the critical insights from the conference call, highlighting PDD's strategic positioning, financial expectations, and market dynamics.

Core Insights - Lezzat has launched its 2026 Amazon Europe Expansion services aimed at helping US Amazon sellers establish a presence in European marketplaces [1][8] - The initiative addresses challenges such as VAT compliance, marketplace localization, and logistics coordination, facilitating international scaling for sellers [3][6] - Less than 1% of US Amazon sellers are currently active in Europe, indicating a significant opportunity for growth in underpenetrated markets [4] Company Overview - Lezzat is a UK-based Amazon full-service agency founded in 2018, having supported over 500 brands in scaling their presence on Amazon across the UK, USA, and Europe [9] - The agency offers end-to-end services including Amazon SEO, design, PPC, consulting, marketplace setup, listing localization, DSP, inventory management, and review management [9] Service Features - The 2026 Expansion Service includes managed VAT registration and compliance, marketplace onboarding for various European countries, listing translation and localization, advertising and marketing strategy, inventory planning, and review management [5][6] - The program aims to centralize operations, allowing sellers to focus on brand scaling while Lezzat manages compliance and operational demands [6][7] Market Opportunity - Early expansion into Amazon Europe is positioned as a long-term competitive advantage for sellers, with the potential for diversification and business protection in growing markets [8]

Core Thesis - Global-E Online Ltd. (GLBE) is positioned as a leading infrastructure provider for cross-border e-commerce, simplifying complex elements such as pricing, payments, and logistics, which creates a competitive advantage [2][4] Financial Performance - In 2024, Global-E reported revenue of $752.8 million, representing a 32% year-over-year increase, and a GMV of $4.86 billion, up 37% year-over-year [3] - The company achieved $167.1 million in free cash flow and positive GAAP net income in Q4 2024, with guidance for 2025 projecting revenue between $917 million and $967 million [3] Market Position and Growth Potential - Global-E's business model benefits from high switching costs, leading to sticky growth as it simplifies cross-border commerce, which is experiencing double-digit growth globally [4] - The company has low penetration in its total addressable market, particularly in APAC and LATAM, indicating significant expansion opportunities [4] Strategic Partnerships - The strategic relationship with Shopify, which holds approximately 9.7% voting power, enhances Global-E's market position and supports its growth strategy [2] Valuation and Future Outlook - Despite trading at a premium multiple, sustained growth rates of 25-30% CAGR and margin expansion could lead to a significant rerating of the stock, with potential upside of 2-3x over 3-5 years [5] - Long-term optionality exists for a 5-10x return if Global-E becomes the default standard for cross-border e-commerce [5] Historical Context - Previous bullish coverage highlighted Global-E's scalable infrastructure and strong growth, with the stock appreciating approximately 11.4% since then, reinforcing the positive outlook [6]

Core Insights - Freedom Holding's CEO, Timur Turlov, highlights an increase in cross-border e-commerce between China and Kazakhstan following a cooperation agreement signed in Beijing [1][5] - The agreement aims to enhance economic ties and facilitate payment systems between the two countries [2][5] Group 1: Agreement and Economic Ties - Freedom Bank, part of Freedom Holding, has partnered with Verum Payments and UnionPay Business to support Kazakhstan-China cross-border e-commerce [2][5] - The cooperation agreement was signed during Kazakhstan President Kassym-Jomart Tokayev's official visit to China, indicating strengthening relations between Kazakhstan and China [5] Group 2: Payment Systems and Infrastructure - The agreement will help establish payment channels and correspondent accounts in both yuan and US dollars, enhancing trade facilitation [3][7] - UnionPay Business will assist in developing the technical infrastructure necessary for these payment systems, while Freedom Bank will focus on expanding the payment system across Central Asia [7] Group 3: Future Opportunities - Turlov emphasizes the potential to create interoperable platforms that can facilitate cross-border financial flows while adhering to regulatory standards [4] - The company aims to collaborate with Chinese fintech firms and utilize various payment gateways, including WeChat, to streamline payments between the two nations [4] Group 4: Investment Context - Kazakhstan has been a key destination for China's Belt and Road Initiative, with significant investments totaling US$23 billion in the first half of 2025 [6] - The largest investment project in Kazakhstan is a US$12 billion aluminum complex led by East Hope Group, showcasing the scale of Chinese investment in the region [6]

Group 1 - Walmart is supporting U.K. and European businesses by encouraging them to utilize its online marketplaces to sell to customers in the Americas, including the U.S., Canada, Mexico, and Chile [1][2] - The company will host a UK Walmart Seller Summit in London on September 9, providing manufacturers and exporters with insights, guidance, and connections to assist in their cross-border growth [3] - A dedicated seller office has been opened in London to help U.K. and European sellers launch and scale their online sales on Walmart's marketplaces [3] Group 2 - Andrea Albright, Walmart's executive vice president and chief growth officer, highlighted the reputation of U.K. and European businesses for quality and innovation, emphasizing the opportunity to reach millions of customers in the Americas through Walmart [4] - The U.K. government aims to help businesses achieve £1 trillion in exports by 2030, focusing on non-EU markets, aligning with Walmart's efforts to attract British exporters [4] - In April 2024, Walmart announced the expansion of its omnichannel capabilities across its segments, including Walmart International, which operates in 18 countries outside the U.S. [5]

Summary of PDD Holdings Inc Conference Call Company Overview - **Company**: PDD Holdings Inc - **Industry**: E-commerce, specifically focusing on cross-border e-commerce through its platform Temu Key Points and Arguments 1. Impact of Tariffs on US Operations - The removal of the de minimis exemption since May has significantly affected Temu's operations, leading to a decline in its fully managed model GMV by 70-80% in Q2 2025 - Overall, Temu's US GMV is estimated to have declined by 20-30% in Q2 2025 due to the full-quarter impact of US tariffs and extended shipment times [2][3] 2. Transition to Semi-Managed Model - Temu is transitioning from a fully managed model to a semi-managed model, which now constitutes 50% of its GMV in the US - The company is focusing on resuming fully managed operations by concentrating on top-selling SKUs with higher margins to mitigate tariff pressures [2][3] 3. Geographic Expansion - Temu is rapidly expanding its operations in Europe and Latin America, with expectations that Europe will surpass the US as Temu's largest market by 2025, accounting for 45% of GMV [3] - The company is also diversifying into Africa, which has shown robust growth in downloads, offsetting declines in the US market [3] 4. Innovative Business Models - Temu is experimenting with various innovative models to adapt to the changing regulatory environment, including: - **Y2 Model**: A hybrid model allowing merchants to ship directly from China only when an order is placed - **X2 Model**: Targeting merchants outside China to benefit from de minimis exemptions, although recent US policy changes may hinder this model [4][8] 5. Financial Projections - Projected GMV growth from US$54 billion in 2024 to US$64 billion in 2025 - Revenue estimates show significant growth, with revenues expected to reach Rmb 678.31 billion by 2029 [4][9] 6. Valuation and Market Position - PDD is currently trading at a P/E ratio of 15x for 2025E, indicating potential undervaluation of its Temu business - The company maintains a "Buy" rating, with a price target of US$165.00, reflecting a forecast stock return of 44.4% [5][9][22] 7. Risks and Challenges - Key risks include liabilities from counterfeit products, competition from other e-commerce platforms, challenges in expanding product offerings, and regulatory risks [24] 8. Analyst Ratings and Market Metrics - Current market cap is US$159 billion with a 52-week price range of US$154.27 to US$88.35 - Average daily trading volume is 7,605,000 shares, indicating strong market activity [5][38] Additional Important Information - The company has been focusing on scaling its semi-managed model and forward warehouse operations to enhance its SKU offerings - Regulatory changes in the EU and Japan regarding import taxes may impact Temu's expansion strategy [3][9] This summary encapsulates the critical insights from the conference call regarding PDD Holdings Inc and its strategic direction in the evolving e-commerce landscape.

Core Viewpoint - Global-e Online has demonstrated strong revenue growth and profitability, yet its stock has declined due to market concerns over new tariffs and the end of the U.S. de minimis customs exemption [1][2]. Group 1: Financial Performance - Global-e Online reported a revenue growth of 28%, surpassing analysts' expectations, and achieved profitability for the second time in three quarters [1]. - The company has raised its full-year guidance to a projected 31% sales growth [1]. - Over the past three quarters, revenue growth rates were 42%, 30%, and 28%, indicating consistent performance despite stock sell-offs [3]. Group 2: Market Concerns - The stock has dropped 7% due to worries about the impact of new tariffs and the expiration of the U.S. de minimis customs exemption on operations [2][4]. - The market's negative outlook is attributed to the complexities introduced in cross-border trade by these regulatory changes [4]. Group 3: Strategic Initiatives - Global-e has introduced a new 3B2C solution aimed at helping global brands mitigate costs associated with tariffs, showcasing the company's adaptability in uncertain environments [6]. - The company’s ability to create solutions for cross-border trade challenges may provide long-term benefits despite short-term pressures from tariffs [6]. Group 4: Valuation - Currently, Global-e is trading at 35 times free cash flow, suggesting it is a strong business with a reasonable valuation [7].

Core Viewpoint - Global-e Online's stock has declined by 50% from its highs due to short-term tariff challenges, presenting a potential buying opportunity for long-term investors as the company is trading near its lowest-ever valuation [2][15][18] Company Overview - Global-e Online provides an end-to-end platform that simplifies international sales for merchants, addressing the complexities of cross-border e-commerce [4][5] - The company has grown its revenue sevenfold since 2020, yet holds less than 1% market share of the $1.1 trillion cross-border e-commerce industry, indicating significant growth potential [5][6] Growth Opportunities - **Adding New Merchants**: In 2020, Global-e added merchants generating $287 million in gross merchandise volume (GMV), which quadrupled by 2024, now exceeding 1,400 merchants [7][8] - **Growing Alongside Customers**: The annual GMV per active merchant cohort has increased four times since 2019, with merchants growing their GMV four to five times faster than the overall e-commerce industry [9][10] - **Geographic and B2B Expansion**: Global-e is expanding its operations to new countries and has expertise in the B2B sector, which is projected to be worth $20 trillion by 2024 [11][12] - **Partnership with Shopify**: The collaboration with Shopify has allowed Global-e to process transactions for over 10,000 merchants in more than 175 countries, enhancing its market presence [13][14] Financial Outlook - Despite current tariff-related uncertainties, Global-e expects to grow sales by 24% in its upcoming earnings report, with management projecting free cash flow margins to increase from 22% to between 26% and 28% in the long term [19][20]

Core Viewpoint - JX Luxventure Group Inc. has entered into a strategic cooperation agreement with Qingxiang (Hainan) Cross-Border E-Commerce Co., Ltd., committing to a minimum purchase of $15 million in cross-border products, leveraging Hainan's Free Trade Port policies to enhance supply chain efficiency and market expansion [1][2]. Company Overview - JX Luxventure Group Inc. is a technology company based in Haikou, China, specializing in integrated tourism services, including duty-free cross-border goods and comprehensive e-commerce technology solutions [3]. Strategic Partnership Details - The agreement with HCBEC includes the purchase of duty-free skincare, health supplements, and lifestyle goods, highlighting the company's leadership in cross-border e-commerce and duty-free supply chain solutions [2]. - The partnership aims to capitalize on Hainan's progressive trade policies, which are expected to drive demand in the duty-free market [2]. Leadership Commentary - The CEO of JX Luxventure Group emphasized that this cooperation marks a significant milestone in connecting global brands with China's growing duty-free market, ensuring seamless execution through integrated logistics and compliance expertise [2].

Core Viewpoint - Linkage Global Inc reported a significant decline in total revenues and net loss for the first half of 2025, primarily due to a sharp drop in cross-border sales, while integrated e-commerce services showed substantial growth. Financial Performance - Total revenues decreased by approximately $1.30 million, or 27.02%, from approximately $4.80 million for the six months ended March 31, 2024, to approximately $3.50 million for the same period in 2025 [3] - Revenues from cross-border sales fell by approximately $3.74 million, or 82.35%, from approximately $4.54 million to approximately $0.80 million [4] - Revenues from integrated e-commerce services surged by $2.44 million, or 930.08%, from approximately $0.26 million to $2.70 million [5] Cost and Profitability - Cost of revenues fell 80.34%, from approximately $4.09 million to approximately $0.80 million, mainly due to reduced cross-border sales costs [7] - Gross profit increased by approximately $1.99 million, or 280.57%, from approximately $0.71 million to approximately $2.70 million, driven by the new fully managed e-commerce business [8] - Cross-border sales margin improved from 12.70% to 21.31%, while integrated e-commerce services margin rose from 50.67% to 93.56% [9] Operating Expenses - Operating expenses rose by 91.01%, from approximately $2.27 million to approximately $4.34 million, primarily due to higher general and administrative expenses [10] - Selling and marketing expenses dropped 31.15%, from approximately $0.23 million to approximately $0.16 million [11] Net Loss - Net loss increased by approximately $1.68 million, or 119.62%, from approximately $1.41 million to approximately $3.09 million [14] Other Financial Metrics - Non-operating income rose from $998 to approximately $0.39 million, while net interest expenses increased significantly from approximately $0.06 million to approximately $1.50 million due to the issuance of $10 million in convertible bonds [12] - Income tax provision decreased by approximately $0.56 million, resulting in approximately $0.34 million of tax expenses for the six months ended March 31, 2025 [13]