BEIJING, Aug. 14, 2025 /PRNewswire/ — Foreign Journalists Open Blind Boxes at Shuiting Gate: Each Brought Surprises.
Yatsen to Announce Second Quarter 2025 Financial Results on August 21, 2025
GUANGZHOU, China, Aug. 14, 2025 /PRNewswire/ — Yatsen Holding Limited (“Yatsen” or the “Company”) (NYSE: YSG), a leading China-based beauty group, today announced that it will release its unaudited financial results for the second quarter of 2025, on Thursday, August 21, 2025, before the open of the U.S. markets.
The Company’s management will hold a conference call on Thursday, August 21, 2025 at 7:30 A.M. U.S. Eastern Time (7:30 P.M. Beijing/Hong Kong Time) to discuss the financial results. Listeners may access the call by dialing the following numbers:
|
United States (toll free): |
+1-888-346-8982 |
|
International: |
+1-412-902-4272 |
|
Mainland China (toll free): |
400-120-1203 |
|
Hong Kong (toll free): |
800-905-945 |
|
Hong Kong: |
+852-3018-4992 |
A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.yatsenglobal.com.
A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until August 28, 2025:
|
United States: |
+1-877-344-7529 |
|
International: |
+1-412-317-0088 |
|
Replay Access Code: |
6410660 |
About Yatsen Holding Limited
Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the mission of creating an exciting new journey of beauty discovery for consumers around the world. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), Eve Lom and EANTiM. The Company’s flagship brand, Perfect Diary, is one of the leading color cosmetics brands in China in terms of retail sales value. The Company primarily reaches and engages with customers directly both online and offline, with expansive presence across all major e-commerce, social and content platforms in China.
For more information, please visit http://ir.yatsenglobal.com.
For investor and media inquiries, please contact:
Yatsen Holding Limited
Investor Relations
E-mail: ir@yatsenglobal.com
Weibo Announces Second Quarter 2025 Unaudited Financial Results
BEIJING, Aug. 14, 2025 /PRNewswire/ — Weibo Corporation (“Weibo” or the “Company”) (Nasdaq: WB and HKEX: 9898), a leading social media in China, today announced its unaudited financial results for the second quarter ended June 30, 2025.
“We delivered solid performance this quarter,” said Gaofei Wang, CEO of Weibo. “On the user product front, we focused on the integration of social products and upgrade of recommendation system, which are aimed at improving user engagement and content consumption on the platform. On the AI technology application front, our user community of AI-powered intelligent search grew robustly, which further drove the increase of the overall search needs of users. On the monetization front, our advertising business exhibited solid trend this quarter, leveraging our strengths in new product launch marketing and our capability to capture advertising budget during the e-commerce season.”
Second Quarter 2025 Highlights
- Net revenues were US$444.8 million, an increase of 2% year-over-year or an increase of 1% year-over-year on a constant currency basis [1].
- Advertising and marketing revenues were US$383.4 million, an increase of 2% year-over-year or an increase of 2% year-over-year on a constant currency basis [1].
- Value-added services (“VAS”) revenues were US$61.4 million, a decrease of 2% year-over-year or a decrease of 2% year-over-year on a constant currency basis [1].
- Income from operations was US$145.6 million, an increase of 8% year-over-year, representing an operating margin of 33%.
- Net income attributable to Weibo’s shareholders was US$125.7 million and diluted net income per share was US$0.48.
- Non-GAAP income from operations was US$161.8 million, an increase of 3% year-over-year, representing a non-GAAP operating margin of 36%.
- Non-GAAP net income attributable to Weibo’s shareholders was US$143.2 million and non-GAAP diluted net income per share was US$0.54.
- Monthly active users (“MAUs”) were 588 million in June 2025.
- Average daily active users (“DAUs”) were 261 million in June 2025.
|
[1] We define constant currency (non-GAAP) by assuming that the average exchange rate in the second quarter of 2025 was the same as it was in the second quarter of 2024, or RMB7.23=US$1.00. |
Second Quarter 2025 Financial Results
For the second quarter of 2025, Weibo’s total net revenues were US$444.8 million, an increase of 2% compared to US$437.9 million for the same period last year.
Advertising and marketing revenues for the second quarter of 2025 were US$383.4 million, an increase of 2% compared to US$375.3 million for the same period last year. Advertising and marketing revenues excluding advertising revenues from Alibaba were US$347.6 million, an increase of 1% compared to US$342.9 million for the same period last year. Advertising and marketing revenues from Alibaba were US$35.7 million, an increase of 10% compared to US$32.4 million for the same period last year, mainly attributable to incremental marketing demand for the June 18 e-commerce festival.
VAS revenues for the second quarter of 2025 were US$61.4 million, a decrease of 2% compared to US$62.6 million for the same period last year.
Costs and expenses for the second quarter of 2025 totaled US$299.2 million, a decrease of 1% compared to US$302.5 million for the same period last year. The decrease mainly resulted from the decrease of general and administrative expenses year-over-year, partially offset by the increase in cost of revenues and product development expenses year-over-year. The decrease of general and administrative expenses was primarily due to the collection of an accounts receivable in the second quarter of 2025 which had previously been recognized as bad debt expenses and written off in the past period.
Income from operations for the second quarter of 2025 was US$145.6 million, an increase of 8% compared to US$135.4 million for the same period last year. Operating margin for the second quarter of 2025 was 33%, compared to 31% for the same period last year. Non-GAAP income from operations for the second quarter of 2025 was US$161.8 million, compared to US$157.6 million for the same period last year. Non-GAAP operating margin for the second quarter of 2025 was 36%, at similar level compared to the same period last year.
Non-operating income for the second quarter of 2025 was US$12.8 million, compared to US$11.4 million for the same period last year. Non-operating income for the second quarter of 2025 mainly included (i) net interest and other income of US$15.9 million; and (ii) investment related impairment of US$4.9 million, which was excluded under non-GAAP measures.
Income tax expenses for the second quarter of 2025 were US$31.7 million, compared to US$33.3 million for the same period last year.
Net income attributable to Weibo’s shareholders for the second quarter of 2025 was US$125.7 million, compared to US$111.9 million for the same period last year. Diluted net income per share attributable to Weibo’s shareholders for the second quarter of 2025 was US$0.48, compared to US$0.43 for the same period last year. Non-GAAP net income attributable to Weibo’s shareholders for the second quarter of 2025 was US$143.2 million, compared to US$126.3 million for the same period last year. Non-GAAP diluted net income per share attributable to Weibo’s shareholders for the second quarter of 2025 was US$0.54, compared to US$0.48 for the same period last year.
As of June 30, 2025, Weibo’s cash, cash equivalents and short-term investments totaled US$2.11 billion. For the second quarter of 2025, cash provided by operating activities was US$24.8 million, capital expenditures totaled US$17.6 million, and depreciation and amortization expenses amounted to US$14.8 million.
Conference Call
Weibo’s management team will host a conference call from 7:00 AM to 8:00 AM Eastern Time on August 14, 2025 (or 7:00 PM to 8:00 PM Beijing Time on August 14, 2025) to present an overview of the Company’s financial performance and business operations.
Participants who wish to dial in to the teleconference must register through the below public participant link. Dial-in and instructions will be provided in the confirmation email upon registering.
Participants Registration Link:
https://register-conf.media-server.com/register/BIca78327ff60c4790b7850d5dc2a37d25
Additionally, a live and archived webcast of this conference call will be available at http://ir.weibo.com.
Non-GAAP Financial Measures
This release contains the following non-GAAP financial measures: non-GAAP income from operations, non-GAAP net income attributable to Weibo’s shareholders, non-GAAP diluted net income per share attributable to Weibo’s shareholders and adjusted EBITDA. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Company’s financial performance prepared in accordance with U.S. GAAP.
The Company’s non-GAAP financial measures exclude stock-based compensation, amortization of intangible assets resulting from business acquisitions, net results of impairment and provision on investments, gain/loss on sale of investments and fair value change of investments, non-GAAP to GAAP reconciling items on the share of equity method investments, non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests, income tax expense related to the amortization of intangible assets resulting from business acquisitions and fair value change of investments (other non-GAAP to GAAP reconciling items have no tax effect), and amortization of issuance cost of convertible senior notes, unsecured senior notes and long-term loans. Adjusted EBITDA represents non-GAAP net income attributable to Weibo’s shareholders before interest income/expense, net, income tax expenses/benefits, and depreciation expenses.
The Company’s management uses these non-GAAP financial measures in their financial and operating decision-making, because management believes these measures reflect the Company’s ongoing operating performance in a manner that allows more meaningful period-to-period comparisons. The Company believes that these non-GAAP financial measures provide useful information to investors and others in the following ways: (i) in comparing the Company’s current financial results with the Company’s past financial results in a consistent manner, and (ii) in understanding and evaluating the Company’s current operating performance and future prospects in the same manner as management does. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gains/losses and other items (i) that are not expected to result in future cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.
Use of non-GAAP financial measures has limitations. The Company’s non-GAAP financial measures do not include all income and expense items that affect the Company’s operations. They may not be comparable to non-GAAP financial measures used by other companies. Accordingly, care should be exercised in understanding how the Company defines its non-GAAP financial measures. Reconciliations of the Company’s non-GAAP financial measures to the nearest comparable GAAP measures are set forth in the section below titled “Unaudited Reconciliation of Non-GAAP to GAAP Results.”
About Weibo
Weibo is a leading social media for people to create, share and discover content online. Weibo combines the means of public self-expression in real time with a powerful platform for social interaction, content aggregation and content distribution. Any user can create and post a feed and attach multi-media and long-form content. User relationships on Weibo may be asymmetric; any user can follow any other user and add comments to a feed while reposting. This simple, asymmetric and distributed nature of Weibo allows an original feed to become a live viral conversation stream.
Weibo enables its advertising and marketing customers to promote their brands, products and services to users. Weibo offers a wide range of advertising and marketing solutions to companies of all sizes. Weibo generates a substantial majority of its revenues from the sale of advertising and marketing services, including the sale of social display advertisement and promoted marketing offerings. Weibo displays content in a simple information feed format and offers native advertisement that conform to the information feed on our platform. We are continuously refining our social interest graph recommendation engine, which enables our customers to perform people marketing and target audiences based on user demographics, social relationships, interests and behaviors, to achieve greater relevance, engagement and marketing effectiveness.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology, such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “confidence,” “estimates” and similar statements. Among other things, Weibo’s expected financial performance and strategic and operational plans, as described, without limitation, in quotations from management in this press release, contain forward-looking statements. Weibo may also make written or oral forward-looking statements in the Company’s periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, Weibo’s limited operating history in certain new businesses; failure to sustain or grow active user base and the level of user engagement; the uncertain regulatory landscape in China; fluctuations in the Company’s quarterly operating results; the Company’s reliance on advertising and marketing sales for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products; failure to compete effectively for advertising and marketing spending; failure to successfully integrate acquired businesses; risks associated with the Company’s investments, including equity pick-up and impairment; failure to compete successfully against new entrants and established industry competitors; changes in the macro-economic environment, including the depreciation of the Renminbi; and adverse changes in economic and political policies of the PRC government and its impact on the Chinese economy. Further information regarding these and other risks is included in Weibo’s annual reports on Form 20-F and other filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is current as of the date hereof, and Weibo assumes no obligation to update such information, except as required under applicable law.
Contact:
Investor Relations
Weibo Corporation
Phone: +86 10 5898-3336
Email: ir@staff.weibo.com
|
WEIBO CORPORATION |
||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
(In thousands of U.S. dollars, except per share data) |
||||||||
|
Three months ended |
Six months ended |
|||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
|||||
|
2024 |
2025 |
2024 |
2025 |
|||||
|
Net revenues: |
||||||||
|
Advertising and marketing |
$ 375,277 |
$ 383,352 |
$ 714,228 |
$ 722,458 |
||||
|
Value-added services |
62,596 |
61,446 |
119,142 |
119,195 |
||||
|
Net revenues |
437,873 |
444,798 |
833,370 |
841,653 |
||||
|
Costs and expenses: |
||||||||
|
Cost of revenues (1) |
89,790 |
103,451 |
176,611 |
192,253 |
||||
|
Sales and marketing (1) |
114,232 |
109,747 |
217,859 |
205,557 |
||||
|
Product development (1) |
71,689 |
78,068 |
152,415 |
154,089 |
||||
|
General and administrative (1) |
26,777 |
7,962 |
51,363 |
33,874 |
||||
|
Total costs and expenses |
302,488 |
299,228 |
598,248 |
585,773 |
||||
|
Income from operations |
135,385 |
145,570 |
235,122 |
255,880 |
||||
|
Non-operating income (loss): |
||||||||
|
Investment related income (loss), net |
245 |
(3,112) |
(4,725) |
5,245 |
||||
|
Interest and other income (loss), net |
11,182 |
15,945 |
(7,429) |
29,691 |
||||
|
11,427 |
12,833 |
(12,154) |
34,936 |
|||||
|
Income before income tax expenses |
146,812 |
158,403 |
222,968 |
290,816 |
||||
|
Less: Income tax expenses |
33,275 |
31,705 |
58,319 |
55,996 |
||||
|
Net income |
113,537 |
126,698 |
164,649 |
234,820 |
||||
|
Less: Net income attributable to non-controlling interests |
471 |
429 |
1,019 |
763 |
||||
|
Accretion to redeemable non-controlling interests |
1,135 |
584 |
2,261 |
1,408 |
||||
|
Net income attributable to Weibo’s shareholders |
$ 111,931 |
$ 125,685 |
$ 161,369 |
$ 232,649 |
||||
|
Basic net income per share attributable to Weibo’s shareholders |
$ 0.47 |
$ 0.53 |
$ 0.68 |
$ 0.98 |
||||
|
Diluted net income per share attributable to Weibo’s shareholders |
$ 0.43 |
$ 0.48 |
$ 0.63 |
$ 0.88 |
||||
|
Shares used in computing basic net income per share attributable |
||||||||
|
to Weibo’s shareholders |
237,124 |
238,632 |
236,909 |
238,459 |
||||
|
Shares used in computing diluted net income per share attributable |
||||||||
|
to Weibo’s shareholders |
265,086 |
268,346 |
264,365 |
267,429 |
||||
|
(1) Stock-based compensation in each category: |
||||||||
|
Cost of revenues |
$ 1,527 |
$ 980 |
$ 3,300 |
$ 2,219 |
||||
|
Sales and marketing |
3,211 |
2,234 |
7,034 |
5,163 |
||||
|
Product development |
8,293 |
5,340 |
18,731 |
12,180 |
||||
|
General and administrative |
4,176 |
3,465 |
9,154 |
7,504 |
||||
|
WEIBO CORPORATION |
||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
(In thousands of U.S. dollars) |
||||||
|
As of |
||||||
|
December 31, |
June 30, |
|||||
|
2024 |
2025 |
|||||
|
Assets |
||||||
|
Current assets: |
||||||
|
Cash and cash equivalents |
$ 1,890,632 |
$ 1,156,292 |
||||
|
Short-term investments |
459,852 |
952,876 |
||||
|
Accounts receivable, net |
339,754 |
376,540 |
||||
|
Prepaid expenses and other current assets |
348,774 |
339,402 |
||||
|
Amount due from SINA(1) |
452,769 |
452,953 |
||||
|
Current assets subtotal |
3,491,781 |
3,278,063 |
||||
|
Property and equipment, net |
215,034 |
280,622 |
||||
|
Goodwill and intangible assets, net |
272,004 |
268,159 |
||||
|
Long-term investments |
1,389,199 |
1,419,411 |
||||
|
Other non-current assets |
1,136,481 |
1,292,890 |
||||
|
Total assets |
$ 6,504,499 |
$ 6,539,145 |
||||
|
Liabilities, Redeemable Non-controlling Interests and Shareholders’ Equity |
||||||
|
Liabilities: |
||||||
|
Current liabilities: |
||||||
|
Accounts payable |
$ 158,435 |
$ 186,790 |
||||
|
Accrued expenses and other current liabilities |
652,369 |
582,521 |
||||
|
Income tax payable |
84,690 |
50,295 |
||||
|
Deferred revenues |
72,642 |
77,272 |
||||
|
Current liabilities subtotal |
968,136 |
896,878 |
||||
|
Long-term liabilities: |
||||||
|
Convertible senior notes |
320,803 |
322,374 |
||||
|
Unsecured senior notes |
744,662 |
745,146 |
||||
|
Long-term loans |
795,311 |
797,144 |
||||
|
Other long-term liabilities |
96,701 |
101,895 |
||||
|
Total liabilities |
2,925,613 |
2,863,437 |
||||
|
Redeemable non-controlling interests |
45,103 |
25,817 |
||||
|
Shareholders’ equity : |
||||||
|
Weibo shareholders’ equity |
3,482,771 |
3,597,121 |
||||
|
Non-controlling interests |
51,012 |
52,770 |
||||
|
Total shareholders’ equity |
3,533,783 |
3,649,891 |
||||
|
Total liabilities, redeemable non-controlling interests and |
$ 6,504,499 |
$ 6,539,145 |
||||
|
(1) Included short-term loans to and interest receivable from SINA of US$417.7 million as of December 31, 2024 and US$410.2 million as of June 30, 2025. |
||||||
|
WEIBO CORPORATION |
|||||||||||||||
|
UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS |
|||||||||||||||
|
(In thousands of U.S. dollars, except per share data) |
|||||||||||||||
|
Three months ended |
Six months ended |
||||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
||||||||||||
|
2024 |
2025 |
2024 |
2025 |
||||||||||||
|
Income from operations |
$ |
135,385 |
$ |
145,570 |
$ |
235,122 |
$ |
255,880 |
|||||||
|
Add: |
Stock-based compensation |
17,207 |
12,019 |
38,219 |
27,066 |
||||||||||
|
Amortization of intangible assets resulting from business acquisitions |
5,011 |
4,161 |
10,070 |
8,283 |
|||||||||||
|
Non-GAAP income from operations |
$ |
157,603 |
$ |
161,750 |
$ |
283,411 |
$ |
291,229 |
|||||||
|
Net income attributable to Weibo’s shareholders |
$ |
111,931 |
$ |
125,685 |
$ |
161,369 |
$ |
232,649 |
|||||||
|
Add: |
Stock-based compensation |
17,207 |
12,019 |
38,219 |
27,066 |
||||||||||
|
Amortization of intangible assets resulting from business acquisitions |
5,011 |
4,161 |
10,070 |
8,283 |
|||||||||||
|
Investment related gain/loss, net (1) |
(245) |
3,112 |
4,725 |
(5,245) |
|||||||||||
|
Non-GAAP to GAAP reconciling items on the share of equity method investments |
(8,412) |
(2,642) |
16,946 |
(1,603) |
|||||||||||
|
Non-GAAP to GAAP reconciling items for the income/loss attributable to non-controlling interests |
(435) |
(578) |
(871) |
(1,070) |
|||||||||||
|
Tax effects on non-GAAP adjustments (2) |
(1,082) |
(485) |
(2,185) |
(1,219) |
|||||||||||
|
Amortization of issuance cost of convertible senior notes, unsecured senior notes and long-term loans |
2,277 |
1,943 |
4,591 |
3,886 |
|||||||||||
|
Non-GAAP net income attributable to Weibo’s shareholders |
$ |
126,252 |
$ |
143,215 |
$ |
232,864 |
$ |
262,747 |
|||||||
|
Non-GAAP diluted net income per share attributable to Weibo’s shareholders |
$ |
0.48 |
* |
$ |
0.54 |
* |
$ |
0.89 |
* |
$ |
0.99 |
* |
|||
|
Shares used in computing GAAP diluted net income per share attributable to Weibo’s shareholders |
265,086 |
268,346 |
264,365 |
267,429 |
|||||||||||
|
Shares used in computing non-GAAP diluted net income per share attributable to Weibo’s shareholders |
265,086 |
268,346 |
264,365 |
267,429 |
|||||||||||
|
Adjusted EBITDA: |
|||||||||||||||
|
Net income attributable to Weibo’s shareholders |
$ |
111,931 |
$ |
125,685 |
$ |
161,369 |
$ |
232,649 |
|||||||
|
Non-GAAP adjustments |
14,321 |
17,530 |
71,495 |
30,098 |
|||||||||||
|
Non-GAAP net income attributable to Weibo’s shareholders |
126,252 |
143,215 |
232,864 |
262,747 |
|||||||||||
|
Interest income, net |
(9,410) |
(10,098) |
(18,561) |
(24,084) |
|||||||||||
|
Income tax expenses |
34,357 |
32,190 |
60,504 |
57,215 |
|||||||||||
|
Depreciation expenses |
9,169 |
10,363 |
18,586 |
19,512 |
|||||||||||
|
Adjusted EBITDA |
$ |
160,368 |
$ |
175,670 |
$ |
293,393 |
$ |
315,390 |
|||||||
|
Net revenues |
$ |
437,873 |
$ |
444,798 |
$ |
833,370 |
$ |
841,653 |
|||||||
|
Non-GAAP operating margin |
36 % |
36 % |
34 % |
35 % |
|||||||||||
|
(1) |
To adjust impairment and provision on investments, gain/loss on sale of investments and fair value change of investments. |
||||||||||||||
|
(2) |
To adjust the income tax effects of non-GAAP adjustments, which primarily related to amortization of intangible assets resulting from business acquisitions and fair value change of investments. Other non-GAAP adjustment items have no tax effect, because (i) they were recorded in entities established in tax free jurisdictions, or (ii) full valuation allowances were provided for related deferred tax assets as it is more-likely-than-not they will not be realized. |
||||||||||||||
|
* |
Net income attributable to Weibo’s shareholders is adjusted for interest expense of convertible senior notes for calculating diluted EPS. |
||||||||||||||
|
WEIBO CORPORATION |
|||||||||
|
UNAUDITED ADDITIONAL INFORMATION |
|||||||||
|
(In thousands of U.S. dollars) |
|||||||||
|
Three months ended |
Six months ended |
||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
||||||
|
2024 |
2025 |
2024 |
2025 |
||||||
|
Net revenues |
|||||||||
|
Advertising and marketing |
|||||||||
|
Non-Ali advertisers |
$ 342,868 |
$ 347,610 |
$ 659,268 |
$ 644,104 |
|||||
|
Alibaba |
32,409 |
35,742 |
54,960 |
78,354 |
|||||
|
Subtotal |
375,277 |
383,352 |
714,228 |
722,458 |
|||||
|
Value-added services |
62,596 |
61,446 |
119,142 |
119,195 |
|||||
|
$ 437,873 |
$ 444,798 |
$ 833,370 |
$ 841,653 |
||||||
Embracing calculated risks while steering clear of the unavoidable: Octa Broker on trading and market dangers
KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 14 August 2025 – Risk is an unavoidable part of our life, present in every decision we make or choose not to make. Nowhere, however, is the risk more pronounced than in the fast-paced world of financial markets. Indeed, the constantly shifting economic landscape, marked by the rapid dissemination of news and the inherent volatility of prices, makes risk so pervasive that it’s often synonymous with the market itself. However, Octa, a global financial broker, emphasises that not all risks are equal and that a deep understanding of different types of risk is crucial for mitigating potential losses and achieving long-term trading success.
Definition of risk
To better understand risk, one can recall the common phrases we often use in life:
- He who dares, wins
- Look before the leap
- Fortune favours the bold
- Nothing ventured, nothing gained
- The bigger the risk, the bigger the reward
- A ship in harbor is safe, but that is not what ships are built for
These sayings capture the dual nature of risk: it can lead to reward or ruin. Even inaction carries risk, as the world continues to evolve around us, potentially leaving us vulnerable to unforeseen changes. Either way, here’s a hard fact that Octa analysts learned over the years of providing access to financial markets for traders: without venturing into the unknown, significant rewards are out of reach.
But what exactly is risk? A formal definition from the Oxford Learner’s Dictionary describes risk as ‘the possibility of something bad happening at some time in the future; a situation that could be dangerous or have a bad result’. In finance, this translates to the possibility of suffering a loss. While this might sound daunting, the key is to recognise that not all risks are equal. According to Octa analysts, while each risk type presents unique challenges, a strategic approach to risk management is the first step toward success in trading and investing.
Main Types of Risk in Financial Markets
1. Market Risk
Market risk refers to the potential for losses due to various factors affecting the overall performance of the financial markets. It’s often broken down into three primary subtypes:
- Price Risk. This is the most common form of risk for traders. It’s the risk of losses due to adverse changes in market price of an asset—whether a stock, a commodity, or a currency pair.
- Interest Rate Risk. This is the risk that borrowing costs might increase. This type of risk is particularly relevant for bond investors, as a rise in rates typically causes the value of bonds to fall. However, the risk also affects currencies’ exchange rates, as changes in relative monetary policy of different countries can influence the flow of international capital.
- Currency Risk. Also known as ‘exchange rate risk’, is the risk that a foreign currency might devalue, negatively impacting an investment made in that currency or the price of that country’s products. This is the primary focus for a company that exports or imports large amounts of goods and services or has direct investments overseas.
2. Liquidity Risk
Liquidity risk relates to potential losses that might occur when a financial instrument or an asset cannot be bought or sold quickly enough without a significant change in its price due to low trading volumes. Highly liquid markets, like major currency pairs, have many buyers and sellers, making entering or exiting a position easy. Conversely, the market with fewer participants might force a trader to accept a much worse price than expected to complete a transaction, leading to a loss. This risk is especially relevant when dealing with large positions in relatively illiquid markets (for example, third-tier cryptocurrency) or during periods of market stress (for example, when important news is released during late-trading hours).
3. Operational Risk
Operational risk involves potential losses from inadequate processes, systems, people, or external events, including fraud and cyberattacks. This can comprise anything from human error in data entry, technical failures in a trading platform, or system breakdowns that prevent a trade from being executed. While it might seem less prominent than market risk, it’s still a critical consideration.
4. Counterparty Risk
Counterparty risk is the risk that any party in a transaction will fail to fulfil its obligations. This is one of the most critical risks for a retail trader.
Additional types of risk worth noting include inflation risk (erosion of purchasing power, impacting long-term investments), political/geopolitical risk (for example, sanctions or elections causing market disruptions), systemic risk (the potential collapse of an entire financial system due to interconnected failures, often amplified by leverage and contagion), and basis risk (occurs when hedging instruments don’t perfectly correlate with the underlying asset).
Minimizing risks
Risk is unavoidable, but it can be managed, which means that it can be minimised and a trader can partially protect himself or herself from it. Octa recommends applying two key principles for managing risk:
Principle 1. Maintain a reasonable amount of leverage and margin
It’s important to monitor an account’s total margin usage in real time. Continuously adjusting a balance to reflect current profits and losses allows a trader to always see their available leverage and monitor their risk level.
Principle 2. Minimise losses by setting stop-loss orders.
Stop-loss orders allow traders to easily define an exit point for a trade before placing it, whether based on a specific price level or a monetary value.
Risk avoidance
Some risks are beyond the trader’s control and are best avoided altogether. For example, a sudden glitch in a trading platform during a high-volatility event could cause a trader to lose a significant amount of money if they cannot close a position. Likewise, in the event of a broker’s bankruptcy, there is a very real possibility of losing the entire investment, regardless of trade performance. This risk is not something a trader can manage with a stop-loss order; it’s a risk trader must avoid entirely.
In this regard, choosing a reliable broker is essential. Look for brokers that are regulated which offer transparent trading conditions with no hidden fees, and have a track record of fast execution and fast withdrawals, confirmed by positive reviews on independent platforms. By selecting a stable and client-focused broker, traders can minimise avoidable risks and focus on profitable opportunities.
In conclusion, risk is the shadow side of opportunity in financial markets and trading. By understanding risk types and applying risk management techniques, individuals can navigate these waters with greater confidence and success.
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Disclaimer: This press release does not contain or constitute investment advice or recommendations and does not consider your investment objectives, financial situation, or needs. Any actions taken based on this content are at your sole discretion and risk—Octa does not accept any liability for any resulting losses or consequences.
Hashtag: #Octa
The issuer is solely responsible for the content of this announcement.
Octa
Octa is an international CFD broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including improving educational infrastructure and funding short-notice relief projects to support local communities.
In Southeast Asia, Octa received the ‘Best Trading Platform Malaysia 2024’ and the ‘Most Reliable Broker Asia 2023’ awards from Brands and Business Magazine and International Global Forex Awards, respectively.
Embark on a Dream Journey: “Thai’d Up This Summer” with Amazing Thailand 2025
BANGKOK, THAILAND – Media OutReach Newswire – 14 August 2025 – To celebrate the Grand Tourism and Sports Year 2025, the Tourism Authority of Thailand (TAT), proudly launches the “Your Dream of Thailand Academy” campaign under the vibrant theme Thai’d Up This Summer. The initiative highlights diverse tourism pathways with a special emphasis on Thailand’s “Hidden Gems” enchanting destinations that promise authentic, unforgettable travel experiences.
This August, four lucky young explorers (ages 18–25) from across Europe will win an all-inclusive summer adventure to Thailand – each accompanied by their closest companion. This once-in-a-lifetime opportunity will immerse participants in a Summer Camp-style journey curated to showcase the country’s rich culture, natural beauty, and unique charm.
Participants will engage in meaningful travel experiences – from local interactions to hands-on cultural discovery—while celebrating Thailand’s reputation for hospitality and wonder. The campaign supports TAT’s mission to expand regional tourism routes and elevate travel experiences through creativity and inclusivity.
How to Enter: Simply write in 100 words or fewer why you and your travel buddy deserve to win this ultimate summer trip to Thailand. Submit your entry via the official contest platform at AXN Asia.
Don’t miss this extraordinary chance to experience what makes Thailand truly Amazing. We’re waiting for you—Sawasdee and see you soon.
Hashtag: #TAT #AmazingThailand
The issuer is solely responsible for the content of this announcement.
ExtendMax Secures 5 Gold and 5 Silver Honors at the IBA Stevie Awards
HANOI, Vietnam, Aug. 14, 2025 /PRNewswire/ — ExtendMax Vietnam Company Limited., a pioneer in integrated legal–technology–logistics solutions, has reached a significant milestone by securing 10 honors at the International Business Awards (IBA) Stevie Awards 2025, including five Gold trophies.
In 2020, ExtendMax made a breakthrough by introducing an integrated IOR/EOR service model that combines legal consulting, technology advisory, and logistics execution. This model enables foreign businesses to import and export goods to and from Vietnam quickly and with full legal compliance, proving especially effective for products subject to specialized inspections, such as civil cryptographic equipment and ICT devices. By consolidating the entire process—from consulting and licensing to customs clearance—into a single service, ExtendMax has eliminated inefficiencies that are common in many emerging markets.
The International Business Awards – IBA, launched in 2002 in the United States, is the largest program within the Stevie Awards framework and is widely regarded as the “Oscars of the business world.” The IBAs honor outstanding achievements in innovation, leadership, products, and services, attracting thousands of nominations each year from more than 70 countries and territories. Winners are determined by a panel of over 300 global business leaders and independent experts.
At the 2025 IBAs, ExtendMax won three Gold awards in the categories of “Business-to-Business Services,” “Innovation of the Year – Business Service Industries,” and “Company of the Year – Legal,” along with two individual Gold honors for Founder and CEO Tran Thanh Phuong as “Best Entrepreneur” in both Legal and Business & Professional Services. The total of five IBA Stevie Gold Awards has placed ExtendMax among the top 10 global companies with the most Gold Awards this year.
“These awards are a testament to the relentless effort and continuous innovation of the entire ExtendMax team,” said Tran Thanh Phuong. “I would like to express my deepest gratitude to my colleagues who have stood by me, as well as to our clients and partners for their trust and support. That trust is the driving force for us to keep improving our services, maintaining our reputation, and affirming the position of a Vietnamese enterprise on the global stage.”
From humble beginnings to becoming an internationally recognized brand, ExtendMax’s journey demonstrates the potential of Vietnamese SMEs when vision, innovation, and commitment to quality are combined to compete on the world stage.
Vientiane Authorities Report Over 135 Hectares of Illegal Mining
Vientiane authorities have revealed that illegal mining activities across the capital cover over 135 hectares, far exceeding legal limits.
Of eight companies operating in the city, three held legal permits covering 10 hectares but were found mining over 61.82 hectares, surpassing their authorized limits.
Meanwhile, five companies operated without authorization over 83.38 hectares. Combined, mining activities from all eight companies affected 145.20 hectares, surpassing the legal limit by 135.20 hectares, the city’s deputy mayor said on 14 August.
Officials emphasized the urgent need for coordinated action among municipal authorities, district offices, and government agencies. Measures include enforcing mining regulations, enhancing monitoring along rivers and streams, and developing targeted action plans to address illegal mining.
This follows the Lao government’s suspension of all potash exploration and mining projects in Vientiane Capital, effective 1 July, due to serious environmental and safety concerns.
Authorities stressed mitigating environmental and social impacts and ensuring strict compliance with the law.
Ba0Ba0 and OceanBase Forge Partnership to Expand Intelligent Automation Through Combined AI and Database Expertise
SINGAPORE, Aug. 14, 2025 /PRNewswire/ — Ba0Ba0, a Singapore-based AI company with a zero token, zero licensing cost model and a local LLM CPU-first architecture, today announced a strategic partnership with OceanBase to co-develop and expand AI automation solutions across Singapore and other ASEAN markets. The partnership will merge Ba0Ba0’s affordable, locally deployable AI capabilities with OceanBase’s industry-leading database technology, enabling enterprises across banking, healthcare, retail, and other sectors to accelerate digital transformation with unmatched efficiency and cost control.
Through this partnership, Ba0Ba0 will integrate OceanBase’s AI-ready, multi-cloud distributed database capabilities into its AI automation solutions, delivering higher efficiency, reliability, and scalability for enterprise backends. This integration ensures secure, high-performance deployments while eliminating the usage-based fees and licensing costs that have historically limited AI adoption in many industries.
OceanBase’s built-in vector capabilities enable AI development directly within SQL, simplifying the AI stack and allowing seamless hybrid searches across structured, semi-structured, and unstructured data — all while integrating OLTP, OLAP, and AI workloads in a single database. These innovations unlock modernized AI applications such as intelligent recommendations, AI-powered conversational systems through Retrieval-Augmented Generation (RAG), and enterprise-level AI agents.
OceanBase’s advanced AI database capabilities have been leveraged by customers across diverse scenarios, including a hotel image retrieval and display system developed by Trip.com Group, and Lalamove’s advanced solutions such as a loss-prevention code recognition system and an AI assistant for data warehouse inquiry.
“Our mission has always been to make AI affordable, accessible, and impactful for every industry, regardless of size or budget,” said Jesslyn Wong, Founder of Ba0Ba0 AI. “By partnering with OceanBase, we are combining leading-edge AI automation with world-class database technology to empower businesses across banking, healthcare, retail, and beyond. This December, we are taking our vision beyond Earth — with the Ba0Ba0 AI LLM set to be deployed aboard a space cubesat satellite as part of the Tristar mission in collaboration with the Russian space agency — marking a milestone in making AI truly universal.”
Hong-Chia How, General Manager of the APAC market at OceanBase. remarked, “The emergence of the new AI era, accompanied by exponential growth in data warehouses, presents unprecedented opportunities alongside significant challenges in data storage, management, and analysis. OceanBase is evolving from an integrated database into a comprehensive, AI-ready data platform, with AI as a core strategic pillar of our future. By strengthening our Data x AI capabilities, we aim to unlock real-world impact from the latest AI innovations.
“We are excited to join hands with Ba0Ba0, bringing our AI database expertise to accelerate AI transformation across Southeast Asia. We invite organizations exploring AI use cases , as well as SaaS providers seeking to transform their applications, to partner with us on this journey.” added How.
Ba0Ba0 stems from charity roots and remains privately owned for the benefit of the masses, focusing on delivering enterprise-grade AI automation without hidden costs. Its CPU-first, locally deployable large language model ensures data sovereignty, scalability, and zero token/zero licensing cost, enabling organizations to adopt AI without financial or operational lock-in.
Operating in over 170 availability zones across more than 50 geographic regions on major global cloud platforms, including Amazon Web Services, Google Cloud, Alibaba Cloud, and Tencent Cloud, OceanBase has successfully assisted over 2,000 customers worldwide in upgrading their database systems.
About Ba0Ba0
Ba0Ba0 is a Singapore-based AI company dedicated to making advanced AI automation accessible to all. Built on charity-inspired values, Ba0Ba0 remains privately owned to safeguard its mission of serving the public good. Its flagship technology features a zero token, zero licensing cost model and a local LLM CPU-first architecture, enabling secure, scalable, and cost-efficient AI deployments without reliance on expensive cloud GPU infrastructure. Ba0Ba0 empowers industries including banking, healthcare, and retail to harness AI automation while retaining full control of their data and costs.
About OceanBase
OceanBase is a distributed database launched in 2010. It provides strong data consistency, high availability, high performance, cost efficiency, elastic scalability, and compatibility with mainstream relational databases. It handles transactional, analytical, and AI workloads through a unified data engine, enabling mission-critical applications and real-time analytics. To learn more, please visit: https://www.oceanbase.com/
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