Relatively softer-than-expected performance for the second consecutive quarter. In 4Q24, revenue reached US$15 Billion, 5% below Bloomberg consensus, representing a 24% YoY increase. By segment, revenue from online marketing services and transaction services came in at US$7.8 Billion and US$7.3 Billion, respectively, compared to consensus forecasts of US$7.9 Billion and US$8.1 Billion. Non-GAAP net profit attributable to the company was US$4.0 Billion (vs. consensus of US$3.9 Billion), up 17% YoY. However, profitability margins deteriorated YoY. Non-GAAP gross profit stood at US$8.6 Billion (+17% YoY), implying a gross margin of 57.1%, down 3.5ppts from 60.6% in 4Q23. Non-GAAP operating profit reached US$3.8 Billion (+14% YoY), with an operating margin of 25.3%, down 2.4ppts from 27.7% in 4Q23. The slightly weaker performance was driven by: (1) an increasing share of GMV from Temu’s semi-entrusted model, which has a lower monetization rate than the fully-entrusted model; (2) Temu’s continued support of merchant ecosystem development; and (3) the domestic platform’s implementation of a “Quality Merchant Support Program” that waives merchant fees to prioritize seller profitability.