Core Viewpoint - The company reported a significant increase in its net profit and non-recurring net profit for Q3 2025, driven by the exclusion of stock payment expenses and investment income timing differences, indicating strong operational performance despite a decline in revenue [1][2][4]. Financial Performance - For the first three quarters of 2025, the company generated revenue of 763 million, a decrease of 13.4%, while the net profit attributable to shareholders was 98 million, an increase of 3.9%. The non-recurring net profit was 96 million, up by 9.0% [2]. - In Q3 2025, revenue was 230 million, down 11.3%, with a net profit of 28 million, down 0.6%. However, the non-recurring net profit increased by 9.9% to 27 million. After adjusting for stock payment expenses and investment income timing differences, the net profit rose by 27.0% to 30 million, and the non-recurring net profit increased by 43.7% to 30 million [2][3]. Growth Drivers - The company's Gross Merchandise Volume (GMV) continued to grow, increasing by 14.9% year-on-year in Q3, supported by new partnerships with five well-known brands. However, revenue declined due to a shift towards a light-asset model, reducing low-return distribution and agency businesses [2]. - The gross margin improved to 30.4%, up by 4.0 percentage points, with significant contributions from online brand management and content e-commerce services, which saw gross margins increase by 9.0 and 10.7 percentage points, respectively [3]. AI Strategy and Operational Efficiency - The company is advancing its AI e-commerce strategy, having developed various AI tools to enhance operational efficiency and business growth. The introduction of AI technologies is expected to improve decision-making and customer service [3]. - The sales expense ratio decreased to 10.1%, while the management expense ratio increased to 8.9% due to higher investments in AI applications and stock payments. The net profit margin for Q3 was 12.1%, reflecting a 1.3 percentage point increase [3]. Investment Outlook - The company is expected to continue benefiting from its AI e-commerce strategy and the ongoing growth of GMV. With a favorable outlook for Q4, particularly during the Double Eleven shopping festival, profits are anticipated to show high elasticity of improvement [4]. - Long-term projections indicate that the company could achieve net profits of 110 million and 150 million in 2025 and 2026, respectively, representing year-on-year growth of 44% and 34% [4].