On August 12, during Tencent's 2026Q2 earnings conference call, James Mitchell, Tencent's chief strategy officer, said when discussing the profit performance of Tencent's AI cloud business that domestic token prices are indeed very low, but domestic token production costs are also extremely low, far below the general perception and estimates of the outside world. Therefore, in the token business, positive gross profit can be maintained even when the price is low. He mentioned that the gross profit margin of paid WorkBuddy users, as well as the gross profit margin of Tencent model services, is already comparable to the overall gross margin of Tencent Cloud. Overall, WorkBuddy's gross margin is relatively low, because there are some free users. Tencent is using this portion to subsidize users to drive market share growth, but the paid portion has already generated a pretty good gross profit margin.

On August 12, during Tencent's 2026Q2 earnings conference call, James Mitchell, Tencent's chief strategy officer, said when discussing the profit performance of Tencent's AI cloud business that domestic token prices are indeed very low, but domestic token production costs are also extremely low, far below the general perception and estimates of the outside world. Therefore, in the token business, positive gross profit can be maintained even when the price is low. He mentioned that the gross profit margin of paid WorkBuddy users, as well as the gross profit margin of Tencent model services, is already comparable to the overall gross margin of Tencent Cloud. Overall, WorkBuddy's gross margin is relatively low, because there are some free users. Tencent is using this portion to subsidize users to drive market share growth, but the paid portion has already generated a pretty good gross profit margin.