Core Viewpoint - The company's 2Q25 revenue and adjusted net profit fell short of market expectations, primarily due to intensified competition in the food delivery sector, leading to increased user subsidies, rider incentives, and advertising expenses [1][2]. Revenue and Profit Analysis - 2Q25 revenue increased by 12% year-on-year to 91.8 billion yuan, but was 2% below market expectations; adjusted net profit was 1.49 billion yuan, significantly lower than expected, with adjusted net profit margin dropping from 16.5% in the same period last year to 1.6% [1]. - Core local business revenue grew by 8% year-on-year to 65.3 billion yuan; however, the food delivery segment's revenue growth was flat due to the impact of subsidies [1][2]. - The company expects a 13% decline in food delivery revenue in 3Q25 due to ongoing competitive pressures and a decrease in average order value (AOV) [1]. Business Segment Performance - The food delivery segment saw a 36% year-on-year increase in order volume in 2Q25, with expectations for continued strong growth in 3Q25 [1]. - The in-store and travel segment experienced over 40% year-on-year growth in order volume, with projected GTV and revenue growth of 27% and 13% respectively in 3Q25 [1]. - New business revenue grew by 23% year-on-year to 26.5 billion yuan in 2Q25, but operating losses widened to 1.8 billion yuan due to increased overseas investments [2]. Profitability Forecast - The core local business operating profit margin (OPM) fell from 25.1% to 5.7% year-on-year, with expectations for further declines in 3Q25 [2]. - The company has revised its adjusted net profit forecast for 2025 from 28.6 billion yuan to a loss of 5.9 billion yuan, and reduced the 2026 profit forecast by 21% to 34.7 billion yuan [2]. - Despite the challenges, the company maintains a positive outlook on the resilience of its food delivery business as the industry shifts focus from market share to profitability [2].

Core Insights - A recent LSEG survey indicates that a majority of global financial services firms have adjusted or updated their cloud strategies in response to data privacy, security, and sovereignty regulatory requirements [1][2] - Business resilience has emerged as a common priority for both companies and regulators, reflecting a shared goal of enhancing cloud stability and reducing service disruptions [2][3] Group 1: Cloud Strategy Adjustments - 84% of respondents reported making adjustments to their cloud strategies due to regulatory requirements, with over a quarter (28%) implementing extensive changes [2] - The survey included 453 executives from the financial services industry across 12 countries, with 63% being key decision-makers in financial market data and IT solutions [2] Group 2: Business Resilience - 30% of respondents experienced business interruptions due to cloud services in the past year, highlighting the importance of resilience and security in evaluating cloud strategy value [3] - In the EMEA region, 95% of respondents consider business resilience "very important" (61%) or "critical" (34%) when selecting cloud service providers [3] Group 3: Regional Variations - The Asia-Pacific (APAC) region has the highest business interruption rate at 38%, with 51% of respondents indicating that resilience is a key metric for assessing cloud strategy ROI [3][4] - Regulatory bodies in the APAC region are beginning to emphasize business resilience, with several agencies conducting crisis management tabletop exercises [5] Group 4: Regulatory Impact - One-third (33%) of financial institutions indicated that regulatory changes are affecting their cloud strategies, particularly in areas like migration and AI [6] - 59% of respondents affected by data privacy and security regulations are adopting hybrid cloud strategies, while 56% are implementing multi-cloud strategies [6] Group 5: Investment Return and Compliance - Regulatory frameworks vary by region, with 33% of APAC respondents needing to make extensive adjustments to their cloud strategies due to regulatory requirements, compared to 24% in EMEA [8] - In the Americas, 33% of respondents cited regulatory changes as the primary barrier to achieving expected ROI from their cloud strategies [8][9] Group 6: Overall Impact - Overall, cloud regulations are influencing the expected ROI from cloud investments across regions, although some financial services firms recognize that compliance can enhance business resilience [10]