Ge Long Hui·2025-09-05 20:21Overall Performance - In FY2025Q2, the company reported revenue of 91.84 billion yuan, which was below Bloomberg consensus estimate of 93.69 billion yuan, with a year-on-year increase of 11.7% [1] - Adjusted net profit totaled 1.49 billion yuan, significantly lower than the Bloomberg consensus estimate of 9.85 billion yuan, reflecting a year-on-year decline of 89.0% [1] Core Local Business - Core local business revenue reached 65.3 billion yuan, below the consensus estimate of 67.5 billion yuan, with an operating profit of 3.7 billion yuan, also below the expected 12 billion yuan, marking a year-on-year decrease of 75.6% [1] - The decline in performance was primarily due to increased subsidies starting in Q2, which negatively impacted the profitability of the food delivery business [2] New Business Developments - New business revenue was 26.5 billion yuan, slightly above the consensus estimate of 26 billion yuan, but the operating loss expanded by 43.1% year-on-year to 1.9 billion yuan, compared to the expected 2.4 billion yuan [1] - The company has expanded its "Little Elephant" supermarket model to nearly 1,000 front warehouses in about 20 cities, with plans to cover all first- and second-tier cities in the long term [3] Market Competition and Strategy - The competitive landscape has intensified, particularly with Alibaba entering the food delivery market, leading to increased subsidies and expected larger losses in Q3 [2] - The company aims to leverage its first-mover advantage in the flash purchase business, which has seen over 50% year-on-year growth in lower-tier markets [2] Future Outlook - The company is sacrificing short-term revenue for long-term strategic positioning, indicating a commitment to gaining market share despite potential fluctuations in profitability due to increased subsidies and operational expenses [3] - Projections for Q3 indicate an average loss of 1.44 yuan per food delivery order, with an adjusted net loss expected to reach 5.351 billion yuan [3] - Revenue forecasts for 2025-2027 are 373.966 billion yuan, 418.687 billion yuan, and 465.337 billion yuan, with adjusted net profits of 1.211 billion yuan, 38.646 billion yuan, and 57.476 billion yuan respectively [3]