Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the China Internet sector, particularly focusing on mega-cap companies and their upcoming Q2 earnings reports. - It is anticipated that aggregate profits for the China Internet sector will decline by 10% year-over-year (YoY) for the first time since Q2 2022, primarily due to challenges in eCommerce and local services [1][1]. Core Insights and Arguments 1. **AI and Cloud Revenue Growth**: - There is an expected sequential acceleration in AI/cloud hyperscaler revenue growth, with Alibaba Cloud projected to grow by 23% YoY, up from 18% in the previous quarter. This growth is attributed to rising demand for AI inference and applications [1][1]. - Comparatively, other cloud services like Google Cloud, Azure, and AWS are expected to grow by 32%, 39%, and 17% respectively during the same period [1][1]. 2. **Profit Declines in Transaction Platforms**: - Significant profit declines are anticipated across major transaction platforms, with Alibaba's EBITA expected to drop by 16% YoY, and Meituan and JD projected to see declines of 58-70% YoY due to increased competition in food delivery and merchant support measures [1][1]. - In contrast, sub-segments such as gaming and mobility are expected to show healthy profit growth, with Tencent's adjusted EBIT growth estimated at 15% YoY [1][1]. 3. **Government Policies and Competition**: - The intensity of food delivery competition is expected to peak in Q3, with a potential for a more fragmented market in the long term. ECommerce players are positioning food delivery as a customer acquisition channel [1][1]. - The report suggests that while competition may moderate in the near term, it will likely extend longer than anticipated, affecting the overall landscape of food delivery services [1][1]. 4. **Company-Specific Expectations**: - **Tencent**: Expected to report Q2 revenue growth of 11% YoY, with adjusted EBIT growth of 15% YoY, driven by solid performance in games and marketing services [1][1]. - **Alibaba**: Anticipated to see a 3% YoY revenue increase in Q1 FY26, with a significant decline in adjusted EBITA by 16% YoY due to investments in food delivery and instant shopping [1][1]. - **PDD**: Projected revenue growth of 11% YoY in Q2, but adjusted EBIT is expected to decline by 38% YoY [1][1]. - **Meituan**: Expected to report a 16% YoY revenue increase, but adjusted EBIT is projected to decline by 58% YoY due to competitive pressures [1][1]. - **JD**: Anticipated revenue growth of 16% YoY, but adjusted EBIT is expected to decline by 70% YoY [1][1]. - **DiDi**: Expected to see revenue growth of 8% YoY, with adjusted EBIT growth of 32% YoY, driven by operational leverage [1][1]. Other Important Insights - The report highlights the ongoing competition in eCommerce, particularly in food delivery and on-demand shopping, with Alibaba's instant shopping volumes reaching 15 million daily [1][1]. - Geopolitical developments and their implications on cross-border business models are also discussed, particularly in light of expanded tariffs and potential delisting risks for ADR companies [1][1]. - The report emphasizes the importance of AI investments and the expected increase in capital expenditures for AI applications in the second half of 2025 [1][1]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the China Internet sector and its major players.

Financial Data and Key Metrics Changes - The company generated revenue of $18,700,000 for the year 2024, exceeding the guidance of $16,600,000 by $2,100,000, primarily due to the monetization of the ride-hailing service which began in October 2024 [21][24] - Adjusted EBITDA for 2024 was negative $19,300,000, better than the guidance of negative $22,500,000, driven by operational efficiencies in the two-wheeled electric vehicle service [21][24] - Total rides increased from 21,900,000 in 2023 to 31,700,000 in 2024, with unique riders growing from 1,800,000 to 2,100,000 [21][22] Business Line Data and Key Metrics Changes - The number of unique ride-hailing riders increased from approximately 5,000,000 at the end of 2023 to 1,660,000 at the end of 2024, while registered drivers grew from 107,000 to 262,000 [22][24] - The average daily two-wheeled electric vehicles deployed fell from 34,600 in 2023 to 32,600 in 2024 due to the gradual decommissioning of the fleet [22] Market Data and Key Metrics Changes - The company is the number one urban mobility app in Turkey, serving four of the largest cities, which account for 50% of the country's GDP and 34% of its population [9][10] - Turkey has a significant opportunity for ride-hailing services, with a projected annual revenue potential of $3,000,000,000 in the ride-hailing business [12][14] Company Strategy and Development Direction - The company has shifted its primary focus to ride-hailing, with plans to continue investing in this area while implementing profitability-enhancing measures [5][6] - The strategy includes expanding to additional cities in Turkey and refining the dynamic pricing engine to increase take rates [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the ride-hailing market in Turkey, citing the lack of existing competition and the high demand for tech-enabled mobility solutions [31][39] - The company aims to almost double its revenue to $34,000,000 in 2025 and achieve positive adjusted EBITDA, excluding any incremental investments [24][25] Other Important Information - The company completed the acquisition of Zoba, an AI-powered software platform, to enhance operational efficiency in its two-wheeled electric vehicle business [15][17] - The share repurchase program allows the company to buy back up to $3,500,000 of its ordinary shares at a price per share of $6 through October 2025 [25] Q&A Session Summary Question: Can you talk about the dynamic pricing and its impact on monetization? - The dynamic pricing algorithm has improved match rates by adjusting prices based on demand and supply fluctuations, leading to better metrics [30] Question: How is the driver supply growing? - The company is experiencing strong growth in driver applications due to the high demand for tech-enabled urban transportation in Turkey [32] Question: How has the competitive environment evolved? - The company holds a first-mover advantage in the ride-hailing market and is prepared for competition, which is expected to be limited to a few players [39] Question: What is the regulatory backdrop for ride-hailing in Turkey? - The company is working on establishing full regulations for ride-hailing, with a belief that the market will eventually align with global standards [42][43] Question: What are the assumptions behind the 2025 revenue guidance? - The guidance assumes continued operations in existing cities without new city launches and a similarly sized general and administrative team [51][52] Question: What is the current cash position and monthly burn rate? - The company reported a cash position of approximately $5,000,000 at the end of the year, with a forecasted EBITDA of $3,000,000 for 2025 [74][75] Question: How does the company balance growth and profitability? - The company remains focused on growth in the ride-hailing market, with plans to explore other verticals only after fully capturing the ride-hailing opportunity [87][88]

Financial Data and Key Metrics Changes - The company generated revenue of $18,700,000 for the year 2024, exceeding the guidance of $16,600,000 by $2,100,000, primarily due to the monetization of the ride-hailing service which began in October 2024 [21] - Adjusted EBITDA was negative $19,300,000, better than the guidance of negative $22,500,000, driven by operational efficiencies in the two-wheeled electric vehicle service [21][25] - Total rides increased from 21,900,000 in 2023 to 31,700,000 in 2024, with unique riders growing from 1,800,000 to 2,100,000 [21][22] Business Line Data and Key Metrics Changes - The number of unique ride-hailing riders increased from approximately 499,000 in 2023 to 1,660,000 in 2024, while registered drivers grew from 107,000 to 262,000 [10][22] - The average daily two-wheeled electric vehicles deployed decreased from 34,600 in 2023 to 32,600 in 2024 due to the gradual decommissioning of the fleet [22] Market Data and Key Metrics Changes - The company is the number one urban mobility app in Turkey, serving over 109,400,000 rides to 5,900,000 unique riders since launch [8] - The company operates in four of Turkey's largest cities, which account for 50% of the country's GDP and 34% of its population [9] Company Strategy and Development Direction - The company has shifted its primary focus to ride-hailing, aiming to double revenue to $34,000,000 in 2025 and achieve positive adjusted EBITDA [7][25] - Plans to expand into additional cities in Turkey are being considered for 2025 and beyond, with a focus on capturing a $3,000,000,000 annual revenue opportunity in the ride-hailing business [11][12] Management's Comments on Operating Environment and Future Outlook - Management believes that Turkey's ride-hailing market is underdeveloped and presents significant growth opportunities, with a strong demand for tech-enabled mobility solutions [12][42] - The company is prepared for competition and believes its first-mover advantage will help maintain market leadership [39][40] Other Important Information - The company has implemented a share repurchase program allowing for the purchase of up to $3,500,000 of ordinary shares [25] - The acquisition of Zoba's AI-powered software has improved operational efficiency in the two-wheeled electric vehicle business, achieving higher daily rides per vehicle [17] Q&A Session Summary Question: Can you talk about the dynamic pricing and its impact on ride-hailing monetization? - Management explained that dynamic pricing adjusts based on demand and supply, significantly improving match rates and overall metrics [30][31] Question: How is the driver supply growing on the platform? - Management noted that the demand for ride-hailing is high in Turkey, leading to strong growth in driver applications and increased activity among registered drivers [32][33] Question: How has the competitive environment evolved? - Management stated that they are the first mover in the market and expect to maintain a dominant position despite potential competition [38][39] Question: What is the regulatory backdrop for ride-hailing in Turkey? - Management indicated that Turkey is working on establishing regulations for ride-hailing, which is expected to align with global trends [41][42] Question: Can you discuss the assumptions behind the 2025 revenue guidance? - Management clarified that the guidance assumes continued operations in existing cities without new city launches and a similarly sized G&A team [52][54] Question: What is the company's cash position and monthly burn rate? - The company reported a cash position of approximately $5,000,000 at the end of the year, with a forecasted EBITDA of $3,000,000 for 2025 [71][72] Question: How does the company balance growth versus profitability? - Management emphasized a focus on growth in the ride-hailing market, with plans to explore other verticals only after fully capturing the ride-hailing opportunity [84]