A：Mewang fully upgraded its meta membership program, making it the first consumer loyalty program covering nearly all categories. This helped drive cross-selling and enhance core user stickiness. The upgraded program is expected to continue being a key tool for delivering a differentiated local experience.

A：Mewang made a series of key progress in 2025, such as deepening its penetration into the supply side to build a comprehensive cost-effective supply system across diverse categories, launching branded satellite stores and central kitchens, and working with merchants to introduce high-quality, value-for-money products. It also extended its reach in the supply chain through innovative formats like m mart and xiaoxiang supermarkets, and collaborated with top liquor brands and healthcare companies.

A：Mewang launched a series of exclusive benefits for its members across various consumption scenarios, such as food delivery, hotel booking, lifestyle services, mobility, and healthcare. These benefits included recommendations for exclusive discounts and activities, improving consumer mind share and transaction frequency. This helped to advance a large number of mid-tier members to higher membership peers, contributing to the overall strengthening of Mewang's leading position in user structure and consumer mind share.

A：Mewang focused on empowering small and medium-sized merchants by increasing financial support, promoting the Bright Kitchen program, using AI tools to improve operational efficiency, and providing a pension insurance subsidy program and occupational injury insurance across the country. These efforts aimed to foster the healthy development of the food service industry and address structural challenges.

A：In 2025, Kita expanded its global footprint with strong growth in Hong Kong and solidified its leading position in Saudi Arabia. Kita's auto volume grew and it became one of the top platforms for local consumers with higher-quality services. Operations were launched in new markets like the UAE and Brazil, recording strong growth momentum since launch.

A：No house is planning to work with merchants and CS globally to drive the digital transformation of the industry and enable consumers in various regions to enjoy high-quality services. No house is committed to AI transformation by integrating AI innovation with its physical world services advantages. It has made significant investment in AI technology and leverages unique digital assets to enhance its offerings.

A：The AI assistant 'Xiaotan' marks a significant advancement for No house, as it is embedded in the Me app and rolled out to all users. By integrating AI technology with local services on the platform, the goal is to fundamentally change consumer app usage. For example, searching will evolve to making requests in natural language, not just keywords. The AI feature is expected to bring a superior experience to consumers starting in 2025.

A：The goal for refining 'Xiaotan's' user experience in 2026 is to make 'Xiaotan' the most consumer-centric AI agent for local services.

A：No house's strategy for local commerce includes deepening supply penetration, enhancing service quality, improving major membership programs, and investing in the ecosystem. This will help strengthen its position as the preferred local services platform for consumers and facilitate long-term growth in grocery, retail, and overseas markets.

A：In the fourth quarter, No house reported total revenue of RMB 92.1 billion, up 4.1%. The cost of revenue ratio increased by 11.6 percentage points to 33.8%, and the selling and marketing expense ratio rose by 14.8 percentage points to 34.4%. Core user engagement improved, and the gross profit ratio slightly increased to 4%. Despite operating cash flow still being negative, it showed sequential improvement with operating cash outflow narrowing to RMB 6.6 billion.

A：The segment results indicate that the core local commerce segment experienced healthy growth in both order volume and GTV. The company maintained its leadership in food delivery and Me one shopping. The core user base showed continued healthy growth and higher engagement on the platform, resulting in improved retention rates across multiple consumption categories.

A：No house's strategic focus on quality growth and resource allocation towards high-quality orders drove a sequential recovery in the food delivery average order value. This focus, however, led to a significant year-over-year drop in the food delivery average order (AO), which impacted the commission revenue growth. Consumer safety concerns also continued to affect the delivery service revenue.

A：No house's online marketing revenue maintained stable growth, with advertisers expanding across categories. The company increased marketing spending and promotions to enhance brand positioning and price competitiveness, and to drive engagement among all users. No house also allocated more resources to improve its membership program and provided incentives to ensure delivery service quality and user experience.

A：The core local commerce segment operating loss was RMB 10 billion in Q4, showing a significant narrowing from the previous quarter. The new initiative segment's revenue reached RMB 27.3 billion, up 18.9% year over year, driven by the expansion of Tita and grocery retail business. However, the segment's operating loss widened to RMB 4.6 billion, reflecting seasonal headwinds, strategic investments in grocery retail, and overs expansion. In established markets like Hong Kong and Saudi Arabia, unit economics showed a healthy improvement.

A：One Xiao Supermarket has been focusing on expanding into new cities and growing their warehouse network to meet rising online grocery demand. They have also launched their first offline store in Beijing and multiple new stores under the 'Happy Monkey' brand. The supermarket has announced plans to acquire the domestic assets of Ding Grocery to enhance their on-demand retailing capabilities. The company expresses confidence in solidifying its competitive advantage and creating long-term value in the grocery sector through strategic investments.

A：One Xiao Supermarket is confident in the company's long-term sustainable growth trajectory and is focused on industry evolution. They believe that competition will normalize with industry regulations and intend to focus on driving efficiency and high-quality growth. The company will continue investing in technology, service quality, and ecosystem development.

A：One Xiao Supermarket views AI as a strategic opportunity to improve and revolutionize their product offerings and local services. Since early 2023, they have been investing heavily in CapEx, AI talents, and building in-house models, making significant investments in AI alongside other Chinese companies. They aim to develop their own in-house large AI models to better understand the physical world using their massive proprietary data. The company is also working with third-party models and is striving to upgrade their Me app into an AI-powered app to fulfill consumer needs in local services and e-commerce.

A：Managing local services with AI is complicated due to the industry's high complexity, with a lot of fragmented and real-time information from small and medium-sized merchants who are not fully digitized. The data from both merchants and consumers has not been effectively digitized to benefit from AI. One Xiao Supermarket emphasizes the necessity of digitizing data and has been working on this for many years. They operate on a digital system, giving them unparalleled access to data, and are deeply involved in the management of fulfillment services to ensure a superior physical world service experience.

A：One Xiao Supermarket has built a strong foundation in physical world data, including merging Poi data, dynamic merchant operation data, and comprehensive authentic user reviews for local services. The company's deep expertise in various business operations and the development of AI technology such as drones and unmanned vehicles gives them significant advantages in connecting AI with the physical world. Their in-house model is catching up with open-sourced models, and their AI agents are evolving rapidly to integrate physical world information seamlessly.

A：One Xiao Supermarket's Meta app now features an enhanced AI assistance that allows users to express their needs in natural language, going beyond the limitations of traditional keyword searches. The AI can understand longer queries and access all data within the app. For example, users can ask for recommendations for a restaurant that meets specific criteria, such as location, type of cuisine, parking availability, and more. The AI assists by bringing together physical world data to provide comprehensive and accurate responses, improving the user experience for local service searches like dining, entertainment, and travel.

A：The company plans to use new AI technology to upgrade the Me app to become the go-to destination for local needs, enhancing the AI search capability and execution capability to make it a leading AI-powered app and AI gateway for local services needs.

A：The company is actively working with regulatory investigations and is against irrational competition, focusing on low-quality orders. It aims to defend its market share and leadership, maintaining clear and consistent strategies for food delivery focusing on core strengths, quality growth, operational efficiency, and value creation for the industry.

A：The company's strategies for the food delivery business include focusing on enhancing core strengths by expanding high-quality selection, ensuring fast and reliable deliveries, offering affordable prices, maintaining leadership by driving quality growth and improving operational efficiency, and creating value through innovations, support, and welfare improvements, as well as pushing product and service upgrades and AI technology to improve efficiency and user experience.

A：The company acknowledges that the competitive landscape has evolved significantly, with industry participants focusing on differentiated categories, merchants, and consumption scenarios. The company's priority remains on sustainable long-term industry development rather than short-term wins, emphasizing the need for continued investment and innovation across the value chain.

A：The company's platforms offer a unique competitive advantage through years of accumulated authentic user reviews, an integrated one-stop online service, and more than 1 million skilled artisans. Merchants on the platform can deliver personalized services using AI to analyze consumer preferences and feedback, supported by AI agents that streamline operations. The company plans to continue enabling merchants with AI assistance and to develop a full lifecycle merchant empowerment system.

A：The acquisition will significantly improve the company's coverage and service quality in the East China region, aligning closely with the company's mission and representing one of its long-term strategic priorities.

A：The in-house supermarket, represented by Xiaoxiang supermarket, is contributing to growth and profitability by offering a reliable shopping experience, maintaining strong growth momentum, and continuously improving operational efficiency. It has also expanded its private brand merchandising offerings and is moving towards profitability with a clear path.

A：In 2026, the company's strategy for international markets will focus on its current market, with flexibility in strategies tailored locally while balancing growth and profitability at every market and every stage. Compliance will remain a top priority, and the company will continue to work actively with local regulators. The company aims to create new value for users, merchants, couriers, and partners in the market. For specific regions, it plans to refine its business model in South Sapporo before expanding, pursue business strategies to build differentiated advantages, and focus on improving operations in Hong Kong and Saudi Arabia, where profitability is expected to be achieved faster in Saudi Arabia. The company remains committed to long-term growth in Brazil, entering new markets in a selective manner, and offsetting losses in new initiatives with more efficient domestic operations.

A：The company expects Kita to achieve its first profitable month in Hong Kong in October 2025. In Saudi Arabia, profitability is expected much faster than in Hong Kong and before the end of 2025, with the company already profitable in some cities and growing very fast in others. In Brazil, while acknowledging the tremendous long-term value, the operation will focus on refining the business model in South Sapporo before broader expansion and pursuing strategies to build differentiated advantages. The company expects losses in the new initiative segment in 2026 to be not bigger than in 2025.