Financial Data and Key Metrics Changes - In Q3 2025, GMV decreased by 2.3% year-over-year to RMB 2.62 billion, while total revenues increased by 2.1% to RMB 2.33 billion, indicating a recovery in top-line growth [17] - Adjusted net loss narrowed significantly by approximately 78% year-over-year to RMB 14 million, with an adjusted net loss margin improving to 0.6% [5][20] - Operating loss decreased by 69.3% to RMB 32.3 million, with the margin improving to negative 1.4% from negative 4.6% [19] Business Line Data and Key Metrics Changes - The number of transacting customers exceeded 70,000, reaching a new quarterly high, and private label GMV grew by 16.7% year-over-year, accounting for 8.2% of total GMV [17][8] - Gross margin for product sales YP model increased by 11.2 basis points to 16.2%, while the marketplace model's take rate rose by 47.5 basis points to 13.1% year-over-year [18] Market Data and Key Metrics Changes - The average weekday order value improved from approximately RMB 37 million in July to RMB 52 million in November, representing an increase of over 40% [4] - The company added over 2.3 million sellable SKUs, bringing the total to more than 19 million, and onboarded over 1,200 new suppliers [7] Company Strategy and Development Direction - The company is focused on enhancing its supply chain capabilities and product offerings, particularly in professional and industrial-grade MRO categories [9][25] - AI technologies are being integrated across various business processes to improve operational efficiency and customer experience [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving quarterly profitability in Q4 2025, driven by improved operational efficiency and a balanced customer mix [21] - The company anticipates GMV growth of 15%-20% per year going forward, while balancing profitability with long-term investments in core competencies [33] Other Important Information - The company generated net cash of approximately RMB 105.5 million from operating activities, a significant improvement from the previous year [21] - The launch of the Expert Linglong AI model is expected to enhance the entire MRO supply chain, improving efficiency and productivity [11] Q&A Session Summary Question: Views on the competitive landscape of the MRO market in China - Management believes that the IPO of JD Industrial is beneficial for the industry, as it promotes the concept of one-stop purchasing on e-commerce platforms [24] - The company emphasizes its specialization in chemicals and industrial-grade MROs, which sets it apart from competitors [25][26] Question: Reasons for not being profitable and balancing profitability with long-term investments - Management indicated that previous losses were due to significant investments in infrastructure and core competencies, but they are now entering a phase focused on profitability [30] - The company plans to control expenses while continuing to invest in R&D and overseas expansion to ensure sustainable profitability [33] Question: Future plans for overseas expansion - Management is focused on serving Chinese companies going abroad while also developing business in the U.S. and Europe, with a break-even target for overseas operations by 2026 [36]

Vipshop (NYSE:VIPS) Q3 2025 Earnings Call November 20, 2025 07:00 AM ET Company ParticipantsEric Shen - Co-founder, Chairman, and CEOJessie Zheng - Head of Investor RelationsMark Wang - CFOConference Call ParticipantsAlicia Yap - AnalystAndre Chang - AnalystThomas Chong - AnalystWei Sheng - AnalystOperatorLadies and gentlemen, good day everyone, and welcome to Vipshop Holdings' third quarter 2025 earnings conference call. At this time, I would like to turn the call over to Ms. Jessie Zheng, Vipshop Holdings ...

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 3.4% year-over-year to RMB 21.4 billion from RMB 20.7 billion in the prior year period [13] - Gross profit was RMB 4.9 billion compared to RMB 5.0 billion in the prior year, with a gross margin of 23.0% down from 24.0% [13] - Net income attributable to Vipshop shareholders increased by 16.8% year-over-year to RMB 1.2 billion from RMB 1.0 billion [15] - Non-GAAP net income attributable to Vipshop shareholders increased by 14.6% year-over-year to RMB 1.5 billion from RMB 1.3 billion [15] Business Line Data and Key Metrics Changes - Active Super VIP customers grew by 11% year-over-year, contributing 51% of online spending [4] - The maternal and childcare division is being rebuilt to integrate relevant apparel and non-apparel categories, fostering cross-category growth [6] Market Data and Key Metrics Changes - The company is seeing decent growth momentum during the W-11 promotional period in October and November [21] - The forecast for Q4 2025 total net revenues is between RMB 33.2 billion and RMB 34.9 billion, representing a year-over-year increase of approximately 0% to 5% [16] Company Strategy and Development Direction - The company is focusing on long-term success by realigning its organization and enhancing its merchandising strategy to strengthen its position as an off-price retailer [5] - There is a strategic emphasis on AI applications to improve customer experience, marketing efficiency, and operational effectiveness [9][30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term roadmap for sustainable, profitable growth, despite current market challenges [10] - The company anticipates that consumer sentiment will normalize, with reasonable expectations for growth in 2026 [21] Other Important Information - The company has returned over $730 million to shareholders through dividends and share buybacks in 2025, reaffirming its commitment to shareholder returns [12][39] Q&A Session Summary Question: Online shopping competitive landscape and GMV momentum - Management noted that they are not entering Quick Commerce but are enhancing convenience in delivery for certain categories [20] - They reported decent growth momentum during the W-11 promotional period and are optimistic about Q4 performance [21] Question: Changes in merchandising team and AI's role - Management explained that organizational changes were made to enhance agility and efficiency across teams, which positively impacted performance [28] - AI is being leveraged to improve customer experience and drive business growth, including targeting churned users [30] Question: Operating profit and margin recovery - Management acknowledged the decline in operating profit and margin but expects improvements as GMV and revenue grow [33] Question: Thoughts on Hong Kong listing - Management is monitoring market changes and will update if there are any developments regarding a potential Hong Kong listing [34] Question: Active customer and revenue growth expectations - Management expects continued improvement in customer growth and revenue in Q4 and beyond, driven by high-quality customer acquisition efforts [37] Question: Shareholder return program for next year - Management reiterated their commitment to returning at least 75% of full-year 2024 non-GAAP net income to shareholders and will evaluate appropriate levels for next year [40]

Financial Data and Key Metrics Changes - Total net revenues for Q3 2025 increased by 3.4% year-over-year to RMB 21.4 billion from RMB 20.7 billion in the prior year period [13] - Gross profit was RMB 4.9 billion compared to RMB 5.0 billion in the prior year, with a gross margin of 23.0% down from 24.0% [13] - Net income attributable to Vipshop shareholders increased by 16.8% year-over-year to RMB 1.2 billion from RMB 1.0 billion [15] - Non-GAAP net income attributable to Vipshop shareholders increased by 14.6% year-over-year to RMB 1.5 billion from RMB 1.3 billion [15] Business Line Data and Key Metrics Changes - Active Super VIP customers grew by 11% year-over-year, contributing 51% of online spending [4] - The maternal and childcare division is being rebuilt to integrate relevant apparel and non-apparel categories, fostering cross-category growth [6] Market Data and Key Metrics Changes - The company is seeing decent growth momentum during the W-11 promotional period in October and November [21] - Expectations for Q4 2025 total net revenues are between RMB 33.2 billion and RMB 34.9 billion, representing a year-over-year increase of approximately 0% to 5% [16] Company Strategy and Development Direction - The company is focusing on long-term success by realigning its organization to enhance agility and efficiency [5] - Emphasis on a merchandising strategy that highlights high-value brands and trending categories to meet customer priorities [5] - The company is leveraging AI to enhance customer experience, improve marketing efficiency, and drive sales growth [9][29] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the business performance in Q4 and sees opportunities in off-price retail for brands [21] - The company expects gross profit margin to stabilize around 23% in the long term, depending on product mix changes [33] - Confidence in the long-term roadmap for sustainable, profitable growth is reiterated [10] Other Important Information - The company has returned over $730 million to shareholders through dividends and share buybacks in 2025 [12] - Cash and cash equivalents, along with short-term investments, totaled RMB 31 billion as of September 13, 2025 [16] Q&A Session Summary Question: Online shopping competitive landscape and GMV momentum - Management noted they are not entering Quick Commerce but are enhancing convenience in delivery metrics and logistics [20] - Positive growth momentum is observed in October and November, with expectations for reasonable performance in Q4 [21] Question: Changes in merchandising team and AI's role - The organization has been realigned for agility, with new talent in merchandising to improve customer engagement and operational efficiency [27] - AI is being utilized to enhance customer experience and improve marketing efficiency, contributing to sales growth [29] Question: Operating profit and margin recovery - Management acknowledged a decline in operating profit and margin but expects recovery as GMV and revenue grow [33] Question: Thoughts on Hong Kong listing - Management is monitoring market changes and will update if there are any developments regarding a potential Hong Kong listing [34] Question: Customer and revenue growth expectations - Management anticipates continued improvement in customer growth and revenue in Q4 and beyond, focusing on high-quality customer acquisition [37] Question: Shareholder return program for next year - The company is committed to returning no less than 75% of the full-year 2024 non-GAAP net income to shareholders, with ongoing evaluations for next year [40]

Financial Data and Key Metrics Changes - The company reported net revenue of RMB 523 million, a year-over-year increase of 6.5% from RMB 491.3 million [12] - Net income surged 40.5% year-over-year to RMB 125.4 million, with a net margin expanding to 24% [4][10] - Gross profit rose 13.1% to RMB 462.7 million, while cost of revenues decreased by 26.5% to RMB 60.3 million [12][13] Business Line Data and Key Metrics Changes - The next degree and diploma programs accounted for approximately 15% of total revenue, while long-degree offerings, including professional certification and interest-based courses, made up about 73% of total revenue [5] - Gross billings per new student enrollment for interest, professional skills, and professional certification courses grew 11.7% year-over-year, indicating improved monetization [11] Market Data and Key Metrics Changes - The company has maintained a robust balance sheet with RMB 601 million in cash equivalents and short-term investments as of September 30, 2025, compared to RMB 507.2 million a year earlier [14] - Deferred revenue decreased to RMB 695.5 million from RMB 916.5 million year-over-year, reflecting changes in revenue recognition [14] Company Strategy and Development Direction - The company is focusing on high-margin, demand-driving process categories, shifting from rapid growth to quality-driven growth to ensure long-term resilience [6][9] - The introduction of AI-driven models aims to enhance learning experiences and operational efficiency, with over 70% of assignments now graded automatically [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market conditions, emphasizing a balance of efficiency, innovation, and long-term value [9][11] - For Q4 2025, the company expects net revenues to be between RMB 440 million and RMB 460 million, representing a decrease of 4.9% to 9% year-over-year [14] Other Important Information - The company has successfully cultivated a vibrant ecosystem for senior learners, enhancing engagement through various initiatives and partnerships [6][7] - The focus on post-course engagement and personalized support is expected to drive user satisfaction and retention [8] Q&A Session Summary - No questions were raised during the Q&A session, concluding the call without any inquiries from participants [15]

Financial Data and Key Metrics Changes - Total revenues increased by 8% year over year, reaching RMB 28.4 billion in Q3 2025 [4][26] - Revenues from games and related VAS grew by 12% year over year, totaling RMB 23.3 billion [26] - Gross profit for Q3 2025 was RMB 18.2 billion, up 10% year over year, with a gross profit margin of 64.1% [28][30] - Non-GAAP net income attributable to shareholders was RMB 9.5 billion, or $1.3 billion, up 27% year over year [31] Business Line Data and Key Metrics Changes - Net revenues from online games were RMB 22.8 billion, up 3% quarter over quarter and 13% year over year [27] - Youdao's net revenue reached RMB 1.6 billion, representing a 15% increase quarter over quarter and a 4% increase year over year [27] - NetEase Cloud Music's net revenue was RMB 2 billion, stable quarter over quarter but down 2% year over year [27] Market Data and Key Metrics Changes - The new game "Destiny Rising" topped the iOS download chart in the U.S. and other major Western markets shortly after its launch [5] - "Where Winds Meet" achieved a peak of 190,000 concurrent players within two days of its global launch [9] - "Minecraft China Edition" reached 1.25 million concurrent players, marking a significant milestone in its eighth year of operation [23] Company Strategy and Development Direction - The company aims to advance development capabilities and global reach while scaling original IP into lasting franchises [26] - Focus on long-term development and providing diverse choices within existing games to meet community demands [35] - The strategy includes a prudent approach to launching new games, concentrating resources on successful products [46] Management Comments on Operating Environment and Future Outlook - Management noted that the gaming trend in China and overseas is positive, with successful experiences in international markets [36] - The company is confident in its ability to bring high-quality content and services to global gamers [36] - Management acknowledged the impact of competition but highlighted strategies to maintain engagement and growth [39] Other Important Information - The board of directors approved a dividend of $0.114 per share, or $0.57 per ADS [31] - The share repurchase program of up to $5 billion has been extended for an additional 36 months [32] Q&A Session Summary Question: Operational strategy for Fantasy Westward Journey - The longevity of Fantasy Westward Journey Online is attributed to its stable economy system and enriched gaming experiences [34] Question: Gaming trend in China and overseas expansion strategy - Successful experiences in overseas markets have been accumulated, with positive feedback on recent global releases [36] Question: Volatility in Identity V's growth and strategy for improvement - The impact of competition has eased, and new content and marketing campaigns are being prepared for the upcoming season [39] Question: Organizational changes in the game department - Recent adjustments are part of normal personnel turnover and aim to enhance focus and efficiency without impacting operations [45] Question: Integration of AI in games - The company has significant experience in using AI for game development and operations, focusing on enhancing user experience [48]

Financial Data and Key Metrics Changes - In Q3 2025, GMV decreased by 2.3% year-over-year to RMB 2.62 billion, while total revenues increased by 2.1% to RMB 2.33 billion, indicating recovery from previous business optimization initiatives [18] - The adjusted net loss narrowed significantly by approximately 78% year-over-year to RMB 14 million, with an adjusted net loss margin improving to 0.6% [5][21] - Operating loss decreased by 69.3% to RMB 32.3 million, with the margin improving to negative 1.4% from negative 4.6% [20] Business Line Data and Key Metrics Changes - The number of transacting customers exceeded 70,000, reaching a new quarterly high, and private label GMV grew by 16.7% year-over-year, accounting for 8.2% of total GMV [18] - The company added over 2.3 million sellable SKUs, bringing the total to more than 19 million, and onboarded over 1,200 new suppliers [6][7] Market Data and Key Metrics Changes - The gross margin for product sales increased, with the overall gross margin remaining healthy at 16.8% compared to 17% a year ago [18] - The gross margin for the product sales YP model increased by 11.2 basis points to 16.2%, while the marketplace model's take rate rose by 47.5 basis points to 13.1% year-over-year [19] Company Strategy and Development Direction - The company is focused on enhancing its supply chain capabilities in the MRO space, emphasizing specialization in spare parts, chemicals, and manufactured goods [26][27] - The strategic initiative to increase private label products' contribution to total GMV from around 8% to approximately 30% is underway [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving quarterly profitability in Q4 2025, driven by improved operating leverage and expense control [21] - The company anticipates GMV growth of 15%-20% year-over-year going forward, balancing profitability with long-term growth investments [34] Other Important Information - The company generated net cash of approximately RMB 100 million from operating activities, reflecting improved working capital management [5] - AI technologies are being integrated across various business processes, significantly enhancing operational efficiency and productivity [10][12] Q&A Session Summary Question: Views on the competitive landscape of the MRO market in China - Management believes the IPO of JD Industrial is beneficial for the industry, highlighting the potential for one-stop purchasing on e-commerce platforms and the large market size in China [25][26] Question: Reasons for not being profitable and balancing profitability with long-term investments - Management indicated that previous losses were due to investments in infrastructure and core competencies, but they are now entering a phase focused on profitability while maintaining investment in R&D and customer acquisition [31][34] Question: Future plans for overseas expansion - Management plans to serve Chinese companies going abroad while also developing business in the U.S. and Europe, expecting overseas operations to break even by 2026 [38]

Financial Data and Key Metrics Changes - Total net revenues increased by 21.7% year over year to RMB 2.58 billion for the third quarter [5][13] - Adjusted EBITDA rose by 27.5% year over year to RMB 758 million [5][14] - Adjusted cash gross profit increased by 22.1% to RMB 1.05 billion [13][14] - Adjusted cash gross margins improved to 40.7% from 40.6% in the same period last year [15] - Adjusted EBITDA margin rose to 29.4%, compared to 28% in the same period last year [15] Business Line Data and Key Metrics Changes - Wholesale revenues, the key growth driver, increased significantly by 82.7% to RMB 956 million [5][15] - Retail revenues increased by 2.4% to RMB 999.1 million [15] - Retail MRR per cabinet reached RMB 8,948, marking six consecutive quarters of growth [5][10] Market Data and Key Metrics Changes - Wholesale capacity in service grew by 16.1% quarter over quarter to 783 megawatts [4][9] - Utilization rate for wholesale capacity was 74.3%, reflecting strong customer demand [4][9] - Retail capacity in service was 52,288 cabinets, with a utilization rate of 64.8% [10] Company Strategy and Development Direction - The company is focusing on capturing growth opportunities driven by AI demand, transitioning from product-based resource delivery to platform-based services [8][12] - The Hyperscale 2.0 framework is being advanced to lead in the AI-driven market [11][12] - The company plans to deliver around 306 megawatts of capacity over the next 12 months, with a focus on the Greater Beijing area and the Yangtze River Delta [11][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability and moderate growth in the order pipeline for 2026 [24] - The company is closely monitoring the rapid development of domestic chips and anticipates increased competition in the sector [24] - Management highlighted the importance of meeting customer demands for lower latency as inferencing becomes a major growth driver [50][51] Other Important Information - The company maintained a strong liquidity position with total cash and cash equivalents reaching RMB 5.33 billion as of September 30, 2025 [16] - CapEx for the first nine months was RMB 6.24 billion, primarily for wholesale IDC expansion, with full-year guidance set between RMB 10 billion and RMB 12 billion [17][18] - The company received recognition for its sustainability performance, ranking among the top 8% of the IT service industry globally [19] Q&A Session Summary Question: Outlook for 2026 order tendering and private REIT execution timeline - Management expects a stable market with moderate increases in order tendering for 2026 and plans to complete the private REIT issuance by Q1 next year [22][26] Question: Customer preferences and demand across different campuses - Customers consider business type, proximity to headquarters, and capacity scaling convenience when placing orders, with varying demand across regions [31][32] Question: Pricing trends for wholesale business - Pricing for Q3 was stable, with no engagement in low-price bidding due to balanced supply and demand dynamics [34][36] Question: Progress on ongoing projects and future tendering seasonality - The company has secured 331 megawatts in new orders over the past 12 months and anticipates sustaining growth momentum [41][42] Question: Focus areas for acquiring new resources - Future resource acquisition will focus on the Greater Beijing area and the Yangtze River Delta, with a five-year planning horizon [44][47] Question: Trends in unit CapEx spending and funding sources - CapEx per unit megawatt is trending down, with funding sources expected to include asset securitization and domestic corporate bonds [88][90] Question: Full-year guidance and EBITDA margin trends - Management remains cautious with full-year guidance, expecting Q4 revenue to remain stable, while Q3 EBITDA margin fluctuations are attributed to seasonal factors [94][95]

Financial Data and Key Metrics Changes - Total net revenue reached a record high of RMB 5.15 billion, representing a 27.1% year-over-year growth [5][29] - 1P product revenue increased by 28.7% year-over-year to RMB 4.73 billion, while 3P platform service revenue rose 11.6% year-over-year to RMB 420 million [5][31] - Non-GAAP operating profits reached RMB 140 million, up 34.9% year-over-year, with a non-GAAP operating profit margin of 2.7% [5][38] Business Line Data and Key Metrics Changes - Combined refurbished product revenue surged 102% year-over-year, with 1P2C revenue growing over 70% year-over-year [6] - The overall take rate of the marketplace was 4.89% for the third quarter [10] - Multi-category recycling businesses contributed nearly RMB 53 million of revenue, accounting for 12.5% of service revenue [31] Market Data and Key Metrics Changes - AHS Recycle achieved a trade-in penetration rate exceeding 10% on JD.com, indicating a growing trend in trade-in programs [46] - The number of contracted merchants on the PJC Marketplace surpassed 1.37 million, driven by rapid onboarding of small-sized merchants [11] Company Strategy and Development Direction - The company aims to strengthen core capabilities in second-hand consumer electronics and enhance trade-in collaboration with partners like JD.com and Apple [18] - AHS Recycle is positioned as China's leading recycling brand, focusing on user engagement and frequency of service usage [20] - The company is preparing for an international strategy to share China's recycling story globally, with a focus on export standards and international mutual recognition [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy development of the second-hand industry and strong growth trajectory for the company [25] - For Q4 2025, total revenue growth is expected to be between 25.4% and 27.4%, driven by attractive new product launches [47] - For 2026, the company anticipates maintaining a relatively rapid year-over-year growth rate, supported by increased trade-in program penetration and enhanced brand power [50] Other Important Information - ATRenew was recognized as a finalist for the Earthshot Prize, highlighting its contributions to the circular economy [26] - As of September 30, 2025, cash and cash equivalents totaled RMB 2.54 billion, sufficient to support reinvestment and shareholder returns [40] Q&A Session Summary Question: Impact of national subsidy policies on business - Management noted that national trade-in subsidies primarily promote sales of new devices priced under RMB 6,000, with limited impact on premium models [44][45] Question: Outlook for Q4 and next year - Total revenue growth for Q4 is expected between 25.4% and 27.4%, with a full-year estimate of RMB 20.87 billion to RMB 20.97 billion, indicating potential for faster growth than initially budgeted [47][48] Question: Store opening pace for Q4 and next year - The company aims to accelerate store openings, with nearly 88% of self-operated stores equipped with multi-category services [53][54] Question: Plans for multi-category business - The multi-category business is rapidly developing, focusing on high-value categories and improving user transaction experience [56][58] Question: Uptake of enhanced services across marketplace businesses - The take rate for PJC marketplace remains stable at over 6%, with the consignment model in PaiPai showing initial success and a take rate in the high single-digit range [61][62]

Financial Data and Key Metrics Changes - In Q3 2025, net revenues reached RMB 1.6 billion, up 3.6% year-over-year, while operating profit was RMB 28.3 million, a decline of 73.7% year-over-year due to increased investments and a high comparison base from the previous year [4][16][19] - For the first nine months of 2025, operating profit reached RMB 161.1 million, representing a substantial 149.2% year-over-year increase [5] - Operating cash outflow for the quarter was RMB 58.6 million, an improvement of 31.4% year-over-year [5][20] Business Line Data and Key Metrics Changes - Learning services segment net revenues were RMB 643.1 million, down 16.2% year-over-year, reflecting a strategic approach to customer acquisition [6][16] - Online marketing services net revenues reached RMB 739.7 million, a record increase of 51.1% year-over-year, driven by demand from the NetEase Group and overseas markets [10][17] - Smart devices segment net revenues were RMB 245.8 million, down 22.1% year-over-year, due to disciplined marketing expenditures [14][17] Market Data and Key Metrics Changes - Youdao Ling Shi achieved over 40% year-over-year growth in gross billings, with a retention rate exceeding 75% [7][28] - The online marketing services segment saw advertising revenues from the gaming industry grow by over 50% year-over-year [11] Company Strategy and Development Direction - The company is focused on deepening the application of AI technologies across both learning and advertising businesses to create value for customers [15][28] - A commitment to maintaining disciplined operations while achieving full-year targets, including robust year-over-year operating profit growth and reaching annual operational cash flow break-even for the first time [15][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year cash flow break-even despite cumulative net operating cash outflow in the first three quarters, citing significant improvements in cash flow performance [50][52] - The company anticipates strong revenue growth in both learning and advertising segments, with a focus on AI-driven services [26][28] Other Important Information - Youdao was included in the 2026 GSV 150, highlighting its position as a transformational growth company in digital learning [7] - The company launched several new AI-driven products, including an AI tutor for programming classes and an upgraded Youdao Dictionary app, which received positive user feedback [9][10] Q&A Session Summary Question: Will online marketing services become more important than learning services in the future? - Management sees growth opportunities in both areas, with online marketing services currently experiencing higher growth due to advanced ad tech and AI capabilities [24][25] Question: What plans are in place to recover online marketing gross margins? - Management aims to improve gross margins through initiatives like the iMagicBox creative production platform and optimizing the data management platform [32][35] Question: What is the potential for operating profit rebound in Q4? - Management is optimistic about achieving operating profit improvement in Q4, supported by strong performance in Youdao Ling Shi and advertising growth [39][41] Question: Should we expect any change to the full-year break-even target given the cash outflow? - Management remains confident in achieving the full-year cash flow break-even target, citing significant year-over-year improvements and expected strong performance in Q4 [48][52]