2025-03-21 19:52Financial Data and Key Metrics Changes - For the full year of 2024, total revenue increased by 22% year over year to RMB337.6 billion, with annual transacting users exceeding 77 million and annual active merchants reaching 14.5 million [5][6] - In Q4 2024, total revenue increased by 20.1% year over year to RMB88.5 billion, with total segment operating profit growing to RMB10.7 billion, up from RMB3.2 billion last year [24][26] - Adjusted net profit for Q4 reached RMB9.8 billion, with cash and cash equivalents totaling RMB168.2 billion as of December 31, 2024 [27][28] Business Line Data and Key Metrics Changes - The core local commerce segment delivered strong year-over-year revenue growth of 18.9%, reaching RMB65.6 billion, with operating profit improving to RMB12.9 billion [29][30] - The new initiatives segment saw revenue increase by 23.5% year over year to RMB22.9 billion, primarily driven by grocery retail and overseas businesses [31][32] - Order volume for food delivery and certain non-food categories was softer compared to Q3 2024, but transaction frequency for mid to high-frequency users continued to grow year over year [28][29] Market Data and Key Metrics Changes - The in-store business order volume increased by over 65% year over year in 2024, with significant growth in lower-tier markets [17][19] - Consumer demand for hotel and travel remained low, with a focus on lower-tier cities and value-for-money options emerging as new trends [20][21] - The Shenhui Yuan program expanded to cover more categories, with over 40% of total local commerce order volume coming from this program [89] Company Strategy and Development Direction - The company aims to adapt to evolving consumption trends and facilitate industry transformation, focusing on high-quality growth and operational efficiency [5][22] - There is a strong emphasis on integrating AI into business operations and product offerings to enhance competitiveness and improve user experience [37][39] - The company plans to continue expanding its overseas markets, particularly in the Middle East, while maintaining a focus on food delivery as a foundation for other services [56][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of the business, highlighting the resilience and adaptability demonstrated in 2024 [32][33] - The company is committed to enhancing the ecosystem for merchants and couriers, with initiatives aimed at improving service quality and operational efficiency [78][79] - Future plans include further investment in AI and autonomous delivery technologies to drive innovation and efficiency [46][49] Other Important Information - The company launched a RMB1 billion merchant support program in Q4 to help improve service quality and operational efficiency [13][14] - The organization underwent restructuring to integrate resources across different business lines, enhancing marketing efficiency and user growth strategies [95][96] Q&A Session Summary Question: AI Strategy and Investment Plans - Management emphasized an offensive strategy in AI, focusing on integrating AI into daily operations and product offerings to enhance productivity and competitiveness [36][38] Question: Expansion Plans for KITA in the Middle East - KITA has shown good growth momentum in Saudi Arabia, with plans to expand operations into more cities while focusing on food delivery as a foundation for other services [56][60] Question: Balancing Investment in New Initiatives - The company conducts regular reviews of capital allocation strategies, ensuring that new initiatives grow healthily while also enhancing shareholder returns through share buybacks [65][70] Question: Focus Areas for Food Delivery Business - Management remains confident in the potential for growth in the on-demand delivery business, with a focus on attracting younger users and increasing transaction frequency [75][76] Question: Competitive Landscape for In-Store Business - The company expects strong growth momentum in the in-store business, leveraging its competitive advantages and enhancing marketing strategies [85][86]