$BABA-W(09988)$  $Alibaba(BABA)$  $MEITUAN-W(03690)$  $MEITUAN(MPNGY)$  $JD.com(JD)$   Given gov's active role in the domestic market economy, it's unlikely for any incumbent market leader to dominate market. In this situation, if you can only invest in domestic China tech software scene, backing the smaller aggressive players makes sense. if you don't have to to invest there, it's wiser to avoid the market at all cost.

‌$Alibaba(BABA)$  ‌$JD.com(JD)$  ‌‌‌$TENCENT(00700)$  ‌‌$Baidu(BIDU)$   Market won't be very kind to businesses that couldn't adapt to the economic environment. If any platforms refuse to evolve into the new model, there's a good chance ads revenue will flow to those that do just as current drop in ads revenue at major pure play e-commerce platforms.‌

‌$PDD Holdings Inc(PDD)$  ‌$Alibaba(BABA)$  ‌‌$MEITUAN-W(03690)$  ‌‌$JD.com(JD)$  ‌‌$TENCENT(00700)$  $Bytedance$ $LittleRedbook/Xiaohongshu$ Impact of the latest State Administration for Market Regulation (SAMR) - E-commerce Platform symposium are as follow : Link: < https://www.samr.gov.cn/xw/zj/art/2026/art_d69642bab3a0468ab757da1b344c0875.html > Recent, SAMR meetings with e-commerce platforms has two main objectives: #1 Platform role as a quality assurance layer/filter to remove poor quality products  - this ultimately targets PDD due to t

$Alibaba(BABA)$  $MEITUAN(MPNGY)$  $MEITUAN-W(03690)$  $BABA-W(09988)$   I went back to review respective earnings release. Both platforms were focused on same metrics, "order mix"/High value orders & platform scale because these are the two main thing that allows for economic scale & margins. its now clear that Baba has back off its offences on Meituan allowing for China to preserve another tech platform existence & its jobs in an already poor domestic business environment. The only problem is, latest earnings release, management has reported improving unit economic

$Alibaba(BABA)$  Just finish listening to the ER half an hour ago. These are my initial thoughts with a glance through the numbers: 1) it's suprisingly a positive release imo. For the first time, they're not behind peers in the industry. E-commerce top line is more or less in line or slightly outperforming & profitability somewhat maintained. 2) Cloud PaaS business is now profitable finally contributing to group margins after multi-decade subsidies. Only drawback is AI application expenses actually outpaced the margins from PaaS business. But AI application is actually growing extremely fast triple digit & crucial to the PaaS long term business. That's the whole model. I consider this development positive. In comparison, Tencent seems

$Baidu(BIDU)$  earnings release basically is just the same as previous quarter except, now market realized the new AI business is not as profitable as it's legacy search ads business. Base on Tencents recent inputs, it's a 30% margin business whereas legacy ads is easily double this figure. In addition, it'll continue to swallow S&M & Capex $$ putting it's book under tremendous strain. At this point, the book still looks alright but if it wants to stay in business, they'll have to spend more. In usual scenario, market should price it at a higher discount, however, in China, it's a different case. BIDU survival will hinge on its relations within the countries government. So far, it seems like gov is still behind them as it has always b

$BIDU-SW(09888)$  $Baidu(BIDU)$  It's slowly becoming clear that @AndrewYNg $BIDU was the right model to follow. Cost of using AI models has collapsed according to JP Morgan. While this is good for the diffusion of the technology, it doesn’t bode well for the foundational model providers as it signals commoditization. Remaining margins will be competed away once the model development flatlines. Value creation will shift to the application layer, and big AI labs supplying foundational models will be more like internet service providers. The technology itself will get occasional upgrades (like we had in telecom with 3G, 4G, 5G) but it won’t be exclusive to any model provider so it’ll remain