Core Viewpoint - The company reported a significant decline in adjusted net profit and gross margin due to intense competition in the instant retail sector, while new business revenues continue to grow but are impacted by overseas expansion losses [1][2][3] Financial Performance - In Q2 2025, the company achieved revenue of 91.84 billion yuan, a year-over-year increase of 11.7% and a quarter-over-quarter increase of 6.1% [1] - The gross margin was 33.1%, down from 41.2% in the same period last year [2] - Adjusted net profit was 1.49 billion yuan, representing a year-over-year decrease of 89.0% [1][2] - The adjusted profit margin was 1.6%, down 14.9 percentage points year-over-year and 11 percentage points quarter-over-quarter [1][2] Business Segments - Core local business revenue reached 65.35 billion yuan, up 7.7% year-over-year, with delivery revenue at 23.66 billion yuan (up 2.8% year-over-year) and commission revenue at 24.95 billion yuan (up 12.9% year-over-year) [1] - New business revenue was 26.49 billion yuan, a year-over-year increase of 22.8%, but incurred a loss of 1.88 billion yuan due to overseas expansion [1][3] Competitive Landscape - Intense competition in instant retail is squeezing the company's profits, with significant increases in delivery subsidies, rider costs, and user subsidies [2] - The company’s operating profit is under pressure due to the competitive landscape, which is influenced by competitors' strategies [2] Growth Prospects - The company is expanding its new business segments, with strong growth in instant retail and plans for further expansion in both domestic and international markets [3] - The company has established over 50,000 flash warehouses nationwide and is exploring new delivery models [3] Investment Outlook - Revenue forecasts for 2025-2027 have been adjusted to 374 billion, 427.7 billion, and 489.5 billion yuan respectively, with a projected net profit of -10.2 billion, 15.8 billion, and 38.5 billion yuan [3] - The target market capitalization for 2025 is set at 712.9 billion yuan, with a target price of 127.93 HKD [3]

Core Viewpoint - Ningbo Jinda (603088.SH) aims to enhance its upstream and downstream sales and product categories by establishing a wholly-owned subsidiary for metal forming equipment and related sales, with an investment of 20 million RMB [1] Group 1 - The company plans to improve supply chain collaboration between parent and subsidiary companies [1] - The establishment of the sales company is intended to increase after-sales service efficiency [1] - The investment will support future business expansions, such as setting up new production bases and expanding product lines [1] Group 2 - The company will invest 20 million RMB using its own funds, with a 100% ownership stake in the new sales company [1]

Group 1 - The company plans to establish a wholly-owned sales subsidiary to enhance its sales capabilities and improve after-sales service efficiency, supporting future business expansion [1][2] - The investment amount for the new sales company is set at 20 million RMB, with the company holding 100% equity [1][2] - The subsidiary will focus on the sales of metal forming equipment, molds, and related mechanical components, among other services [2] Group 2 - The establishment of the sales company is within the board's decision-making authority and does not require shareholder approval [2] - The company aims to strengthen its market competitiveness and expand its development space through this investment [2][3] - The investment will not significantly impact the company's normal operating funds and is not expected to have a substantial effect on the company's performance in the short term [3]