Recently, UBS released the outlook for the Chinese internet industry in 2024. UBS believes that there are still many growth engines in the Chinese internet industry, including overseas markets and artificial intelligence. Fang Jincong, director of UBS's investment banking China Internet research, stated that cooperation between e-commerce platforms is becoming more common. Many companies are exploring interconnectedness to effectively convert traffic into profits. At the same time, internet companies are also actively looking for profit opportunities beyond advertising. Actively expanding into overseas markets and integrating the concept of artificial intelligence also provide development opportunities for the internet industry. Fang Jincong expects that competition in e-commerce will intensify in 2024. On e-commerce platforms, competition may continue to focus on establishing market share based on low prices unless there is more industry innovation. Consumers are becoming increasingly price-sensitive and also more concerned about functionality rather than just brand effects. High-end brands and white-label manufacturers with the highest operating efficiency may perform well, and there is room for improvement in the advertising monetization rate of white-label merchants. In addition, competition in e-commerce on short video platforms may continue to intensify, as each platform will continue to increase the number of merchants and encourage merchants to attract customers through live streaming activities. In online gaming, large game developers with stronger research and development capabilities and those developing smaller competitive games may perform well. Fang Jincong pointed out that profit margins are now a bigger focus, and reducing costs and improving product efficiency are two ways to increase profit margins. In addition to share buybacks, internet companies are also starting to pay dividends. UBS stated that the number of internet users in China has reached 1.2 billion in the past two years, with an average of 7.2 hours of mobile phone usage per person. The limited number of users and user time restrict the development of internet companies. In addition, the promotion of rational consumption concepts has encouraged internet platforms, especially e-commerce users, to form a habit of comparing prices, further limiting the space for price increases.