Ladies and gentlemen, thank you for standing by. Welcome to the JD Logistics third quarter 2025 results conference call. At this time, all participants are in the listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Please note that this English simultaneous translation line will be in listen-only mode for the duration of the call, including the question-and-answer session. If you wish to listen to the management's original statement or answer question during the question-and-answer session, you've been invited into the transcription line and turn the call to Ms. Song Shan, Head of IR Team at JD Logistics. Thank you all for your good day, ladies and gentlemen. Welcome to our third quarter 2025 results conference call. Joining us today are our Executive Director and the CEO, as well as the CFO.
Before we start, we'd like to remind you that today's discussion may contain forward-looking statements which involve a number of risks and uncertainties. Actual results and outcomes may differ materially from those mentioned in today's announcement and in this discussion. The company does not undertake any obligation to update this forward-looking information except as required by law. During today's call, management will discuss certain non-GAAP financial measures for comparison purposes only. For definition of the non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial results, please refer to the announcement of financial information and the business highlights for the three months ended September 30, 2025, issued earlier today. For today's call, management will read the prepared remarks in Chinese, and we'll only be accepting questions in Chinese during the question-and-answer session.
A third-party interpreter will provide simultaneous interpretation in English on the separate line for the duration of the call. Please note that English translation is for convenience purposes only. In the case of any discrepancy, management statements in the original language will prevail. I would like to turn the call over to Mr. Hu Wei. Please go ahead, sir.
Thank you, Mr. I'm so happy to meet you here. This is the sixth quarter of the 2025 earnings call meeting. In the third quarter, with the effect of proactive macro policies, China's economy maintained a steady and progressive trend as a critical enabler of the national economic circle. Modern logistics continue to facilitate the efficient flow of production factors, strengthening the economy's resilience.
During the quarter, JD Logistics continued to strengthen its capacities in service experience and delivery calmness, consistently expanding both the portfolio and service compatibility, improving customer experience and satisfaction, and achieving high-quality evaluated revenue growth. In the third quarter of 2025, JD L achieved a total revenue of RMB 55.1 billion, an increase of 24.1% year over year in terms of profit. Our non-adverse net profit was RMB 2.02 billion, with a profit margin of 3.3%. We're committed to building our long-term capacities and compatibility, making targeted investments in areas such as international business expansion and timeless capacity improvement to enhance our operational strengths and lifestyle foundation for long-term business growth. Revenue from direct-to-supply chain ISC customers reached RMB 13.1 billion in the third quarter, increased by 45.8% year- over- year, with both internal and external ISC customers sustaining solid double-digit growth.
This included RMB 8.9 billion in the revenue from external ISC customers. Leveraging our extensive network coverage, extensive warehousing operations, and management experience, and accumulated ISC capacities, we continued to strengthen our leading position in China's supply chain market, achieving growth in both the number and average revenue per customer RPARC of our external ISC customers. We provide industry-specific ISC solutions and service products for customers in fast-moving consumer goods, home appliances, home furniture, 3C, apparel, automotive, and fresh products, and other industries. In the face of the ever-changing business environment and market landscape, we remain focused on experience, cost, and efficiency, enhancing our industry-specific service capacities. We deliver the products and solutions tailored to customer-specific industry characteristics and operational pain points, helping them improve operational efficiency, reduce operating costs, and optimize customer experience.
In the home appliance industry, we continue to expand our ISV solutions' end-to-end process coverage by leveraging digital capacities to integrate end-to-end information flow. We enable efficient coordination in all aspects of operations, helping brand customers reduce costs and enhance efficiency. For instance, in the third quarter of 2025, a corporation with a well-known home appliance brand customer extended upstream to the process from the customer's factory to their warehouse. Through our consolidated distribution model, we optimized the transportation routes and efficiently reduced the transit frequency during inbound to warehouse transportation, helping the customer to reduce logistic costs. Meanwhile, we leveraged our digital supply chain system to provide destination warehouses with real-time visibility of in-transit information. This enabled them to arrange uploading zones and allocate manpower in advance, significantly improving inbound efficiency and shortening order fulfillment time.
Going forward, we will continue to deepen our presence in the ISV space, capitalizing on our advantages in digital technology, network coverage, and operational management. We will replicate and scale the successful experience with this brand to more customers, committed to build the most efficient ISV solutions through the entire process. The steady development of our ISV business is underpinned by our continuously improving network infrastructure. As of the end of September 2025, our warehouse network covered nearly all counties and districts in China, consisting of over 1,600 self-operated warehouses and over 2,000 third-party warehouse owners operating the cloud warehouses under our open warehouse platform. Our warehouse network has an aggregate gross floor area of more than 34 million square meters, including warehouse-based managers through the open warehouse platform.
We have enhanced the breadth of our coverage and enriched our service offerings through further expansion into lower-tier regions and continued optimization of our warehouse network. During this quarter, guided by our cooperational philosophy of placing products as close as possible to customers, reducing handling frequency and minimizing fulfillment distance, we accelerated warehouse network development and replication of the service capacities in lower-tier cities. Since the official commencement of JD L Kafka warehouse in April 2025, both local customer experiences and local efficiency have improved significantly. In the third quarter, the warehouse contributions to our operational efficiency continue to grow, supported by our ongoing enhancements in warehouse operating efficiency and regional distribution capacities. Core areas now enjoying a 2-1-1 timely delivery service, while surrounding remote areas have achieved steady next-day delivery.
This quickly improved local customers' shopping experience, garnering widespread positive feedback. Meanwhile, we strengthened our capacities in bulky item logistics, building JD L delivery, installation, disassembly, and return, while steadily strengthening our leadership in China's ISC market while also actively expanding our overseas footprint, leveraging years of accumulated warehousing operation expertise and world-leading ISC capacities. As we replicate and scale these capacities in overseas markets, we are providing more Chinese brands, overseas customers, and forceful e-commerce platforms with high-quality, efficient, and comprehensive ISC services. Based on our long-term in-depth cooperation with all our customers in China's auto sphere, plus supply chain sectors and the strategic advantages of our overseas warehouse in the Middle East, in the third quarter, a le ading new NEV brand chose to further deepen strategic partnerships with us to join to expand into the Middle Eastern market.
We planned and now operate a spare part warehouse in Dubai Jebel Ali Free Zone, providing end-to-end logistics services from container acceptance, customs clearance, quality inspection, and order processing to packaging and urban logistics. This shortened the customer spare parts distribution cycle, improved inventory turnover efficiency, and strengthened the after-sale network across the Middle East and North Africa. At present, JD Logistics has established multiple overseas warehouses in the Middle East and continues to enhance its automation and digital operation capacities, delivering global ISV solutions for several auto companies and enabling them to achieve a more efficient and sustainable growth in international markets.
As part of our overseas warehouse expansion, we accelerated our global smart supply chain network and actively expanded our overseas warehouse footprint by accelerating progress toward our goal of doubling the gross floor area of our overseas warehouse by the end of 2025, a target we're fully confident in achieving. In Q3, our revenue from other customers, including express and freight delivery services, reached RMB 24.9 billion, with a 5.1% year-over-year growth. We have consistently adhered to the high-quality development strategy, focusing on expansion of the high-value businesses, while enhancing timeliness service capacity and product diversity, laying a solid foundation for the long-term sustainable growth of our business. In our respective sectors, we continue to enhance our delivery timeliness capacities and product competitiveness, with a focus on expanding our high-timeliness, high-value services.
For instance, we extended our high-timeliness delivery capacities, which previously centered on categories such as lychee and hairy crab, into high-value scenarios in production zones. This expansion has effectively improved the service quality and delivery efficiency, driving the growth of the high-timeliness fresh business. Additionally, we continue to strengthen our cooperation and penetration with leading brand merchants on mainstream platforms. For instance, in the third quarter, we sparked a multi-channel cooperation with several well-known sportswear brands, achieving a noteworthy increase in business share. While driving rapid growth in our high-timeliness delivery services, we also helped the brand customers gain greater platform traffic through high-quality logistics services, creating value for our customers. In the last-mile fulfillment process, we continue to optimize our service models and strengthen our operational capacities.
Recently, we acquired a wholly owned subsidiary of JD Group, specializing in local on-demand delivery, which has already established a mature operating system in the sector and demonstrated strong commercial potential and growth prospects. Looking ahead, we expect the integration of this business to further enrich JD L product portfolio, complement our last-mile delivery network, and enhance fulfillment, graphics, operational efficiency, and overall user experience. Through our business development process, we have adhered to our core value: customer first. JDL remains dedicated to offering premier services such as to-do delivery, on-demand pickup and delivery, and to-do return exchange, continuously enhancing the quality of our express delivery services. With such professional and reliable services, we have earned the trust and preference of our customers and consumers, as well as recognition from national authorities.
In August 2025, in the Logistics 2025 report released by the globally authoritative brand evaluation consultancy Brand Finance, JDL was rated as the strongest logistics brand 2025 worldwide. Also, our ranking in the most valuable logistics brands listed in China over a year demonstrates our strong international competitiveness and brand influence. Regarding the freight delivery business, with consolidation with Deppon Logistics and acquiring Kuayue-Express Group, we rank among the top tier in China in terms of cargo volume and revenue scale of freight delivery services. We've now established a freight delivery product portfolio covering various timeliness levels and diversified service scenarios, allowing us to precisely match our customers' differentiated needs regarding timeliness requirements, service standards, and other aspects. In terms of air freight, we continue to expand our international cargo route network.
In the third quarter, we launched a new all-cargo flight route directly connecting China's Shenzhen Bao'an International Airport to Singapore Changi Airport, further strengthening our air transportation connectivity within the Asia-Pacific region. We constantly prioritize technical innovations through ongoing investment in automation equipment, AI, and other tech applications. We have deeply integrated digital intelligence technologies into every stage of the logistics value chain, driving the comprehensive application of AI Plus Robots across the end-to-end logistics chain, including warehousing, sorting, transportation, and delivery. We recently self-developed a series of robots, our Wolfpack Robots, which are highly suited to our operational scenarios. For example, in the warehouse operations, we are accelerating the deployment of the TrueLine Intelligent Warehouse solution, with both the number of deployed devices and the cities covered increasing further this quarter.
In addition, we have deployed the Tianlong Four-Way Shuttle for bulky item storage and goods-to-person scenarios, the ELON Intelligent Robotic Arm and automatic pull-to-wheels for order picking, sorting, and packaging, as well as the Feilong Drum and Dulong Unmanned Vehicle for collections between industrial parks and delivery stations. By continuously expanding automation coverage across both processes of the logistics value chain, we further enhance operational efficiency and provide customers with reliable, high-performance supply chain support. Going forward, we will continue to promote the adoption of automation equipment and AI techs, driving efficiency upgrades across our end-to-end logistics value chain that will support middle and long-term profitability. Meanwhile, we will remain committed to promoting the tech upgrading of the industry, bringing efficient supply chain services to more regions worldwide, and we will improve the social value. Thank you. We have just announced a new announcement.
For my personal reasons, I will take new positions under JD Group. I will no longer be the CEO for the next session. Over the last few years, I collaborated and grew together with JD L, making contributions to customers and consumers. I worked with the JD L team for years. I feel so happy and I'm so moved. I want to express my gratitude to the stakeholders and all the board members. Next up, Mr. Wang Zhenhui will take the role as the CEO. Mr. Wang has been working with different companies as well as public companies for years, and he has the business insights as well as the business visions. Mr. Wang has very solid foundation experiences in the logistics sector. I believe that with his guidance and with his wisdom, JD L will further make contributions to stakeholders and board members. I'm going to welcome Mr.
Thank you, Mr. Hu Wei. Dear investors, dear analysts, good to see you. My name is Wang Zhenhui. I'm so happy and honored to take this chance, and I will soon take the job as the CEO of JD L. I want to thank Mr. Hu Wei for your contribution. In the upcoming days and months and years, I will lead the team centrally on the cost efficiency and core competitiveness, making new progress not only for the company but also for the country, but also for the entire society. Now, let's welcome Mr. Wu Hao to give you the overview of the financial performance. Thank you, Mr. Hu. Thank you, Mr. Wang.
Hello, this is Wu Hao, the CFO of JD L. I'm pleased to present JD L financial performance of the third quarter 2025.
In the third quarter 2025, China's macroeconomy remained stable with continued improvements, demonstrating strong resilience and stability. Supported by our ever-strengthening products and service capacities, JD L achieved accelerated revenue growth by continuously improving timeliness and customer experience and further enriching our solution and product portfolio. In the third quarter of 2025, our revenue reached RMB 155.08 billion, with a year-over-year of 24.1%. In terms of profitability, average profit was RMB 1.96 billion. Non-average profit with a margin of 3.6%. Non-average profit was RMB 2.02 billion with a margin of 3.7%. Since the beginning of this year, we continue to make strategic investments to strengthen our long-term industrial competitiveness and actually expand business growth opportunities, further solidify our market competitiveness strength. Current investment phase remains consistent with our operational plan.
Looking ahead as business volume increases entering the peak season, we expect economies of scale and improved resource utilization to support profitability improvement. Let's look at the segmented business lines of revenue from ISC customer totaled RMB 13.13 billion in the third quarter, with a year-over-year increase of 45.8%. Among them, ISC revenue from JD Group amounted to RMB 21.20 billion, up 165.8% year-over-year, mainly due to the incremental revenue generated by our full-time riders participating in JD food delivery, as well as from the growth in the JD retail. Revenue from external ISC customers was RMB 8.93 billion, up 13.5% year-over-year. The number of external ISC customers amounted to around 67,000, up 12.7% year-over-year, continuing the trend of double-digit growth over several consecutive quarters. While serving more customers, we also deepened and broadened our engagements with existing customers.
In the third quarter, our average revenue per customer for external ISC reached RMB 134,000, up 0.7% year-over-year, extending the year-over-year growth from the previous quarter. This growth was primarily driven by our extensive comprehensive warehouse network and mature operational capacities. By continuously upgrading our supply chain products and services, including extending the service supply chain, broadening geographic coverage, and deepening on-the-chain integration online and offline, we strengthened partnerships with leading customers in industries such as apparel, FMCG, and auto, helping them improve market competitiveness while optimizing operational costs and efficiency. In the third quarter of 2025, our revenue from other customers, primarily including express and freight delivery services, was RMB 24.95 billion, up 5.1% year-over-year. For express delivery services, we continue to alleviate customer experience satisfaction, focusing on the expansion of the high-value segments in the freight sector.
We rank among the top tier in China in terms of cargo volume and revenue scale, supported by our diverse freight delivery services that cover multiple timeliness levels and service scenarios. Moving on to cost and profitability, in the third quarter, our gross profit margin was 9.1%. We continued strengthening our capacities, increased strategic areas, including enhancing delivery timeliness, improving customer experiences, and expanding our international business to drive JD L long-term high-quality business growth. Next, let's turn to the major parts of the cost and revenue. First, employee benefit expenses were RMB 21.82 billion in the third quarter, up 49.8% year-over-year. This was primarily due to the addition of full-time food delivery riders compared with the same period of last year, as well as the year-over-year increase in the number of frontline operation employees in the delivery and warehouse operations.
The number of operation employees grew from approximately 640,000 at the end of the third quarter last year to 414,000 at the end of the third quarter of last year. While remaining relatively stable over the quarter since the beginning of this year, we've added our own employees to key operational processes such as last-mile delivery and warehousing, aimed at upgrading our product and services and alleviating customer experience. The key indicators such as on-time delivery rate and customer satisfaction improved. In the third quarter, employee benefit expenses accounted for 39.6% of the total revenue, up 6.8%. Second, our outsourcing cost was RMB 16.97 billion the third quarter, up 13% year-over-year. Our outsourcing cost accounted for 13.8% of total revenue.
With a year-over-year decrease of 3.0 percentage points, we optimized the outsourcing costs, which are primarily transportation-related, by applying algorithm-based transportation deployment systems and optimizing the structure of transportation resources, such as increasing the proportion of the self-owned vehicles. Third, our total rental cost was RMB 3.20 billion in the third quarter, up 2.5% year-over-year. We continue to promote site integration and optimize network structure, improving the utilization efficiency in our sites. Our total rental cost accounted for 5.8% of total revenue in the third quarter, down by 1.2 percentage points. Apart from the major costs mentioned above, our ongoing business expansion has resulted in improved economies of scale, driving down our depreciation and amortization costs as a percentage of total revenue by 0.2%. Meanwhile, due to the growth of services such as installation and maintenance, other costs as a percentage of total revenue increased by 0.3 percentage points.
In terms of expenses, our operating expenses in the third quarter were RMB 3.70 billion, up 16.9% year-over-year, accounting for 6.7% of total revenue, with a year-over-year decrease of 0.4 percentage points. This improvement was driven by our consistent enhancements in refined management and cost control capacities. Among them, sales and marketing expenses increased by 13.5% year-over-year to RMB 1.58 billion, accounting for 2.9% of total revenue, down 0.3 percentage points year-over-year. Sales and marketing expenses accounted for 4.7% of revenue for external customers, up 0.3 percentage points. We maintained monetary investments in sales and marketing personnel to drive business growth. In the third quarter, our R&D expenses were RMB 1.06 billion, up 15.9% year-over-year, and accounting for 1.9% of total revenue, down 0.1 percentage points.
We have allocated our R&D resources to strengthen our end-to-end automation, digital, and intelligent capacities, including ongoing operation of AI algorithms and automated equipment in diverse logistics processes. For example, we consistently upgraded our large language model, powered digital intelligence solutions, improving the coverage of warehouse and major equipment, and scaling up the regular operation of our unmanned delivery vehicles to drive further cost savings and efficiency improvements in diverse logistics scenarios, including planning, warehousing, storage, transportation, delivery, and customer service. Our general administrative expenses were RMB 1.06 billion, up 23.6% year-over-year, accounting for 19% of total revenue, remaining largely flat year-over-year. In terms of profit, please also consider our non-adverse measures, which we believe may better reflect our core operations.
Both non-GAAP profit and non-GAAP EBITDA exclude items that we believe are not indicative of our operating performance to help investors and other users of financial information better understand and evaluate our core operating results. In the third quarter of 2025, our non-GAAP profit was RMB 2.02 billion, down 21.5% year-over-year. Non-GAAP profit margin was 3.7%. Non-GAAP EBITDA for the third quarter was RMB 5.32 billion, a decrease of 7.1% year-over-year, with a non-GAAP EBITDA margin of 9.7%. We also continue to monitor our cash reserves and cash flow to maintain a healthy capital position to support business development and meet our operational needs. In the third quarter, excluding lease-related payments, we recorded a free cash flow of RMB 0.59 billion, consisting of operating cash flow of RMB 4.71 billion and capital expenditure of RMB 1.95 billion, primarily for investments in automation equipment and self-owned vehicles.
We continue to improve operational efficiency and capacity through efficient resource allocation. Before we wrap up, I would like to express my heartfelt thanks to our shareholders for their enduring support and the trust in JD Logistics. Looking ahead, we remain committed to balanced improvement with stable profitability and high-quality growth. We will continue to cultivate our ISC solutions, enrich our product portfolio, optimize customer experience, and further strengthen core competitive scenarios to promote healthy and sustainable business growth. Meanwhile, we will sustain our investment in automation, as well as digital and intelligence technologies, optimize network structure, innovate operational models, and deepen refined management. We aim to improve the efficiency of the entire logistics process, achieve long-term and sustainable structural cost reductions, and create greater value for our shareholders. Thank you. That concludes my prepared remarks. Now, let's begin the Q&A session.
Thank you, Mr. Wu Hao.
This concludes our prepared remarks. We'd like now to open the call to your questions. Operator, we are going to start the Q&A session, and we are going to receive the questions only mandatory. Please start the Q&A session.
Now, let's get into the Q&A session. As a reminder, we answer the questions in the trans language, and please dial into trans line and then press star one on your telephone's touch-tone keypad. Again, to ask a question, please press star one. Got my sex run nod. Please raise your question. Thank you.
Thank you, three of you, for the prepared remarks. I have two questions. In view of the automation, the five-year automation plan, I want to listen to your, I want to listen to your comments on the capital investment, the efficiency, and the cost. This is the first question. The next is a full-time rider.
We have the full-time riders, and we have outsourced the riders. I want to check with you about orders. How many orders are you accepting per day? You are not the largest operator. How could you use up the network to make innovation to be the top operator of the food delivery? Thank you.
Thank you, Rona, for the question. Over the last few years, JDL has accumulated a lot of automation technologies and experiences. Most of the automation equipment are well-used at a large scale, and they are easy to use. They are user-friendly ever since 2025 in more than 20 provinces and cities, and we have already prepared our auto robots. In terms of the unmanned vehicles, we began our applications in Guangdong, Jiangsu, Beijing, around 20 cities and provinces south of the unmanned vehicles were put into place for the purpose of docking, collection, and pickup.
In the future, for the AI super brain, together with the launch robots, they will be deeply integrated to ensure the full chain of assorting, transportation, and delivery. In terms of investments, automation and robots, and the outcomes will be collected. According to outcomes, we will promote the large-scale application of the robots in the long run. We will manage the cost, and we will find the balance between investment and return because that is basis for the long-term optimization. Have some confidence in us. By investing into the automation sector, we are going to further improve our long-term and middle-term revenue. For specific investment pace, I will follow different industries, different categories. We will check the real-life data. We will update our investments, and our CapEx plan will be updated as well.
It will be very close to our draft, but we will go and check what happened, and we will gradually upgrade our investment year by year. With more technologies being invested, I believe that it will cut down the logistic cost for the entire society, driving the primary growth for the company. Question two is about full-time riders. Around June, JD L made the announcement to hire full-time delivery in Q3, which saw very positive growing momentum. The revenue was boosted. The full-time driver team was quite stable, very consistent with us. This is a big advantage. We have a standardized training system. We have refined operations, and we are improving the promised delivery. We are improving the timeliness as well as the user experience. We made the announcement, and we are going to integrate our driving forces.
We are going to cover the full-time scenarios, especially for the last-mile delivery services. We're improving and boosting our capacities dramatically. In terms of utilizing the resources in the long term, I believe there's a lot of robust and complementary movements. During the e-commerce festival, the full-time riders could help us to make up the logistic gap. On the other way around, the Q remain could also work together with the delivery man to meet up the requirements from the food delivery. Now, the two teams can highly complementary, and we could help them work together in 10 of our core cities. The mutual supplementary efforts were made to boost up the orders. I want to make a quick notice. The introduction of the full-time riders could improve our service delivery capacities to our customers. We are not only providing food services, but for other products.
We are providing services to some luxury brands and 3C products. For instance, we could help them to deliver the luxury goods or 3C products as quickly as possible. That is how we are going to enrich our matrix of the delivery, and that is one of the core capacities for us in the future. By providing or improving the services to ensure timely delivery, we can get into the intra-city fast delivery services. Thank you.
Thank you for the response.
Next question. Brown City Band, raining down. Please go ahead.
I have a question about the overseas market. You are sending your footprint. I want to listen to your opinions about your plans and about your implementations of the overseas market.
Thank you for the question. For the overseas market, the international business is about capacity building.
We want to have an entire global network by the end of 2025. The growth area will be doubled by the end. The floor area is for one side, and we want to improve the terminal-to-terminal capacities, such as the routes, such as cross-border timeliness, as well as the speed to clear the customs. We want to make the entire journey more smooth. All in all, we want to reduce the cost of compliance for our customers. The automation capacities, the efficiency will be boosted all for the purpose of reducing the cost, and we want to expand the network of delivery. Those are the progresses. Still, I believe the international market, the overseas market, our own capacity building because capacity will drive for long-term growth. We will meet up the requirements of the customers, carry out accurate investment, optimizing our network operation, and localize the delivery capacities.
In the long term, we'll do more. We'll scale it up. The mature supply chain will be duplicated in the overseas market while staying different, such as the health product integrated service. We will also build up the network in the overseas market. All in all, we want to offer long-term sustainable value. Thank you.
Next one. Ron John from Jefferies. Please go ahead.
Good evening. Thank you for your wonderful remarks. Thank you for accepting my questions. My question is about the number of ISC customers and RPARC. Can you share with us more about which segment is your core sector? Because you want to dive into the value creation, and you also focus on numbers of the customers. I'd like to invite you to share with us the capacity and human resource. Thank you.
Thank you, Jefferies. Thank you, Thomas from Jefferies, the question.
Over the last few years in the ISC customer number and RPARC, we have the room for improvement, of course. The numbers and RPARC are two important topics. For one thing, we have to improve the numbers, and we have to offer them the best products. We can cover more clients. Some of the customers are not using the ISC services, so that is one direction we will head for that in terms of RPARC. We have some key accounts. We also have some small accounts to serve. I store the improvement. For the key account, we have the PM, the project manager, the account manager to go deeper to find more opportunities. Generally speaking, I believe we can continue the existing path to further improve the profits, the numbers, and the RPARC.
Yes, of course, you are going to see fluctuations in the RPAC due to the seasonal reasons or due to the natural transition from a single client to ISC client. In the long run, I believe the numbers will be further optimized. In 2026, still I'm not in the right time to make the forecast. I believe that in 2026, the revenue will further be optimized. I also wish that starting from Q4 of last year, the investment has begun to yield results, and in the long run, more results can be seen. Thank you.
Thank you very much for your response.
Due to time constraints, that concludes today's Q&A session. At this time, we now turn the conference back to Madam Song Shan for additional or closing remarks. Thank you again once again for your joining us today.
If you have more questions or further questions, please contact our team directly. Thank you.