Core Viewpoint - Weimob Group's AI-related revenue for the first half of 2025 was only 34 million yuan, accounting for a mere 4.4% of total revenue of 775.5 million yuan, highlighting the failure of its "AI-driven" strategy [2][4][5] Financial Performance Summary - Total revenue for the first half of 2025 was approximately 775.5 million yuan, a decrease of 10.6% compared to 867.4 million yuan in 2024 [4] - Adjusted revenue increased by 7.8% year-on-year, from 719.1 million yuan to 775.5 million yuan [4] - Adjusted net profit was 16.9 million yuan, marking the first profit since 2021 [4][5] - AI-related revenue was only 34 million yuan, significantly underperforming against the company's strategic claims [2][4] AI Business Performance - The AI business has shown a concerning decline in both revenue and R&D investment, indicating serious issues [3][6] - Despite launching several AI products, the actual revenue contribution from these products remains minimal, with a significant gap between user engagement and revenue generation [5][6] - The AI revenue growth of 172% for the WIME tool is misleading due to its small base, failing to impact overall AI revenue meaningfully [5] R&D Investment - R&D expenditure dropped from 234 million yuan in 2024 to 136 million yuan in 2025, a decline of 41.8% [6][7] - The company claims to have shifted R&D resources towards AI, but the absolute reduction in investment raises concerns about the viability of its AI strategy [6][7] - The decline in R&D investment reflects broader strategic instability within the company, impacting its ability to innovate and develop AI solutions effectively [6][8] Strategic Challenges - The company's reliance on Tencent's ecosystem has diminished, as Tencent enhances its own e-commerce tools, reducing Weimob's competitive edge [8][9] - Competitors like Youzan are gaining market share through differentiated product strategies, further complicating Weimob's market position [9] - The AI business, intended to be a growth engine, has not performed as expected, leading to uncertainty in future profitability [9]