Core Viewpoint - The company emphasizes a long-term investment strategy focused on supporting merchants, sacrificing short-term profits for sustainable ecosystem growth [3][6][10]. Financial Performance - In Q2, the company reported revenue of 1,040 billion RMB, a 7% year-on-year increase, but the growth rate has slowed compared to Q1 [3][19]. - Operating profit decreased by 21% year-on-year to 258 billion RMB, while net profit fell by 4% to 306.8 billion RMB [3][22]. - The company acknowledges that the current profit levels are not sustainable and expects continued fluctuations in future earnings due to ongoing investments [3][27][39]. Merchant Support Initiatives - The company has launched a "100 Billion Support Plan" to provide substantial resources to merchants, aiming to enhance the overall ecosystem [7][13]. - Various initiatives, such as reducing fees and improving logistics, have been implemented to support merchants, resulting in significant cost savings and increased order volumes in remote areas [8][14][33]. - The company is focusing on helping small and medium-sized businesses and traditional brands adapt to market changes and consumer demands [16][32]. Consumer Engagement - The company has expanded consumer reward programs, including a 10 billion coupon initiative, to enhance customer value and drive sales during promotional events [9][39]. - During the 618 shopping festival, the company provided substantial subsidies and coupons, leading to record sales across multiple categories [39]. Global Business Strategy - The company acknowledges that its global business is still in the early stages and plans to invest in local supply chains, service optimization, and compliance capabilities [10][29]. - The company aims to adapt to changing global trade dynamics and consumer needs while enhancing its service quality and operational efficiency [30][29]. Future Outlook - The company remains committed to long-term value creation, prioritizing ecosystem health over short-term financial performance [3][10][39]. - The management anticipates ongoing investment in merchant support and consumer experience, which may lead to continued short-term profit volatility [3][27][39].