Financial Data and Key Metrics Changes - In Q2 2025, the company recorded total revenue of RMB 1.02 billion, a decrease from RMB 1.18 billion in the same period of 2024, primarily due to lower order volumes amid competitive dynamics [18][20] - Gross profit margin increased by 1.2 percentage points year over year to 12%, reflecting improved operational efficiency and cost management [18][19] - Adjusted net profit for the quarter was $45.6 million, down from $59.1 million in Q2 2024 [20] Business Line Data and Key Metrics Changes - The company fulfilled 123 million orders in the first half of 2025, maintaining steady average selling price (ASP) compared to the previous year [27] - The share of CN orders saw a slight positive increase, indicating a stable performance in the business lines [27] Market Data and Key Metrics Changes - The instant delivery industry continued to grow steadily, with flowers and cakes maintaining a significant market share due to unique demand [6][7] - The competitive landscape in the food delivery market remains intense, impacting order volumes and rider supply across the industry [30][33] Company Strategy and Development Direction - The company is focusing on enhancing product and service quality through a tiered operational strategy and in-depth analysis of user groups [5][6] - Plans to expand service offerings and deepen collaborations with high-value merchants are in place to enhance user satisfaction and drive repeat purchases [15][28] - The company aims to integrate its brand into users' daily lives through innovative marketing strategies and scenario-based initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a recovery in overall order volume in the second half of 2025, as competition stabilizes [28][29] - The company remains committed to optimizing resource allocation and capturing emerging opportunities for sustainable growth [21] Other Important Information - The company has implemented a comprehensive rider support system, including subsidies, training, and rewards, to maintain a stable and efficient delivery team [13][31] - Cash and cash equivalents totaled RMB 827.8 million as of the end of Q2 2025, indicating a healthy cash position [20] Q&A Session Summary Question: Could you please share the company's order volume and ASP for this quarter broken down by 2B and 2C business? How do you project the trend for order volume and ASP in the second half of the year? - The company fulfilled 123 million orders in the first half of 2025, with ASP holding steady compared to last year, and expects a recovery in overall order volume in the second half [27][28] Question: How would you assess rider's thickness and retention metrics? What trajectory should we anticipate for rider incentive budget this year? - The company reported strong registered and new rider numbers, with no notable impact from market fluctuations, and is focusing on optimizing rider productivity through an intelligent dispatch system [30][31]

Core Insights - Instant retail is reshaping lifestyles, with a projected market size of over 1.5 trillion yuan in 2024, growing at a rate of 26.2% [1] - Major platforms like Meituan, Taobao, and JD are intensifying competition in the instant retail space, enhancing market penetration [1] - The complexity of grocery and general merchandise delivery presents challenges in packaging, distribution, and operations, necessitating efficient fulfillment and quality assurance [1] Group 1: Delivery Solutions - SF Express has launched a tailored delivery solution for grocery and general merchandise, addressing pain points in self-delivery and platform delivery models [1][12] - A standardized delivery process has been established, ensuring the safe transport of diverse products while maintaining their quality [3] - The delivery radius for grocery items typically spans 3 to 5 kilometers, requiring customized fulfillment strategies to manage complex delivery needs [6] Group 2: Brand and Service Standardization - In a competitive retail environment, building a brand membership system and standardizing service across channels is crucial for differentiation [4] - Consumers are increasingly seeking branded and standardized service experiences, prompting businesses to establish unified quality service standards [4] - SF Express offers customized delivery personnel and fulfillment plans, enhancing brand recognition and consumer trust [4] Group 3: Integrated Operations - The instant retail ecosystem is expanding, with brands shifting towards an integrated public and private domain operational model [9] - Brands are leveraging membership systems to enhance customer retention while also utilizing multiple public domain platforms for growth [9] - SF Express provides comprehensive channel support, allowing brands to maintain pricing and operational autonomy while improving efficiency and reducing costs [9] Group 4: Case Study and Performance - Sam's Club's online channels contribute approximately 55% of sales, with 70% of orders fulfilled through front warehouses [10] - SF Express has reported a 26.2% year-on-year increase in non-food business revenue, reaching 3.695 billion yuan, with significant growth in grocery and convenience categories [12] - Collaborations with major retailers like Sam's Club and Metro are enhancing service experiences and expanding business scales [12]

Group 1 - On August 7, over 300,000 small restaurants achieved peak transactions on Taobao Flash Sale, with Ele.me riders reaching 3.5 times last year's numbers and average income at 1.4 times last year [1][6] - Lemonade surpassed bubble tea for the first time on Taobao Flash Sale, becoming the top-selling item, while new customer numbers for tea merchants grew by 255% week-on-week [1] - Shanghai ranked first in city consumption data, followed by Hangzhou, with Chengdu surpassing Beijing and Suzhou surpassing Guangzhou, all making it into the top ten [1] Group 2 - The growth of small and regional tea brands is driving significant growth in lower-tier markets, with 18 out of the top 20 cities for order growth in the "Autumn Milk" campaign being third and fourth-tier cities [5] - Notable brands like Lucky Coffee and Lemon Season showed significant growth in revenue, profit, customer retention, and new customer conversion [5] - Taobao Flash Sale reported that 8,000 non-restaurant small shops saw transaction growth exceeding 100%, with 1,089 non-restaurant merchants achieving monthly transactions over 100,000 yuan [5] Group 3 - Since the launch of Taobao Flash Sale, the monthly active number of riders has increased by 181%, with a 236% growth in crowd-sourced riders [6] - In July, the number of riders earning over 10,000 yuan per month increased by 184% year-on-year, with over 70% of riders earning more than 10,000 yuan [6] - On the day of the Autumn Festival, the total number of Ele.me riders was 3.5 times that of the same period last year, with average income in direct cities reaching 1.4 times last year [6]

Group 1 - The core viewpoint of the articles highlights the transition from a fierce competition in food delivery subsidies to a more sustainable competition in instant retail, indicating that while the food delivery battle has slowed down, the race for instant retail continues unabated [1][4] - The peak daily order volume for food delivery platforms has reached 250 million, positioning it as a significant growth engine in the retail market, closely following traditional e-commerce delivery volumes [1] - The competition in instant retail is characterized by a focus on beverage categories, as they can drive significant traffic without time or frequency constraints, aiming to cultivate instant consumption habits and expand into a broader market [2][5] Group 2 - The logistics of the "last mile" delivery is crucial in the instant retail sector, with third-party delivery services expected to gain growth opportunities due to the increasing complexity of fulfillment and the need for neutral positioning [1][3] - The instant retail market is projected to exceed 2 trillion yuan by 2030, with the potential for instant delivery volumes to match those of traditional e-commerce [4][5] - The penetration rate of instant retail platforms among online shoppers is expected to rise from 49% in 2023 to 59% in 2024, indicating a growing consumer base and loyalty, with loyal users increasing from 24% to 46% in the same period [4][5] Group 3 - The trend of brands building their own membership systems and private channels is emerging, allowing them to reduce dependency on platforms and create a closed-loop service with third-party delivery services [5] - Third-party delivery is becoming a standard for brands, as it allows them to maintain pricing power and flexibility in logistics, positioning platforms primarily as channels for customer acquisition [5] - The industry is moving towards a multi-faceted ecosystem where third-party delivery complements self-operated delivery, with the aim of achieving a scale comparable to traditional e-commerce delivery [5]

Core Viewpoint - The article discusses a significant corruption case involving a senior executive from a Shanghai-based internet company, specifically related to bribery in logistics operations, highlighting the systemic issues within the industry [1][3]. Group 1: Case Details - Seven suspects were arrested in connection with the bribery case, with the total amount involved exceeding 40 million yuan [1]. - The main suspect, Han Liu, a former logistics supervisor at Ele.me, was implicated in accepting bribes from suppliers in exchange for logistics service qualifications in various cities [1][3]. - The investigation revealed that Han and his accomplices engaged in corrupt practices over a period of less than two years, receiving bribes more than 30 times [1]. Group 2: Supplier Dynamics - Suppliers who bribed Han did so for various reasons, including retaining their supplier status after failing assessments and seeking better business conditions [3]. - Han and his associates leveraged their positions to provide preferential treatment to bribing suppliers, offering them business advantages beyond the platform's operational rules [3]. Group 3: Investigation and Response - The police conducted a coordinated operation with Zhejiang authorities to apprehend the suspects after gathering substantial evidence [3]. - Ele.me's internal investigation led to the reporting of Han's misconduct to law enforcement, emphasizing the company's commitment to integrity and compliance [5]. Group 4: Executive Background - Han Liu, born in the 1980s, previously worked at JD.com and joined Alibaba in 2019, eventually becoming the CEO of Ele.me in March 2024 [5][6]. - In February 2025, Ele.me's chairman announced that he would take over the CEO role, with Han focusing on the logistics center [6].

Core Viewpoint - The emergence of new technologies, business models, and practices reflects the vitality of the Chinese economy and presents new demands for governance innovation [1] Group 1: New Technologies and Business Models - New technologies and business models are rapidly emerging, serving as a window to observe the vitality of the Chinese economy [1] - The fields of instant delivery and ride-hailing lack regulatory precedents, necessitating continuous exploration and optimization [1] Group 2: Governance and Regulation - There is a need for precise regulatory measures ("invisible hand") to enhance services, establish standards, and strengthen oversight [1] - The ongoing evolution of new business models requires a balance between encouraging innovation and ensuring regulatory compliance [1] Group 3: Development and Problem-Solving - The approach of learning through practice ("learning to swim while swimming") is emphasized as a means to address issues and promote development [1] - The belief in achieving a win-win situation between encouraging innovation and regulating development is highlighted [1]

Core Viewpoint - The implementation of occupational injury insurance for new employment forms in China is expanding, providing essential protection for workers in the gig economy, particularly in the transportation and delivery sectors [2][3][4]. Group 1: Background and Implementation - The pilot program for occupational injury insurance began on July 1, 2022, in seven provinces, covering platforms like Cao Cao Travel, Meituan, and Huolala, with a total of 12.35 million insured individuals expected by June 2025 [2]. - The program will expand to ten additional provinces and more platforms starting July 1, 2025, with plans for nationwide coverage by 2026 [2][3]. - The insurance allows workers to receive benefits without establishing a formal labor relationship with the platforms, enhancing accessibility for gig workers [2][3]. Group 2: Financial Aspects - The payment standards for the insurance are set at 0.01 yuan per ride for transportation, 0.07 yuan per order for instant delivery, and 0.18 yuan per order for same-city freight, ensuring a balanced income and expenditure model [3]. - The funds will be managed under a unified work injury insurance fund, promoting financial stability within the program [3]. Group 3: Impact on Workers and Industry - The introduction of occupational injury insurance is seen as a significant support for drivers and workers in the gig economy, helping them recover from injuries and return to work [3][4]. - The program is expected to reduce labor disputes by providing a safety net for workers, thereby enhancing job security and reducing turnover rates in the industry [3][4]. - The insurance initiative is anticipated to foster healthy competition among platforms, leading to improvements in service quality and working conditions [4].

Core Viewpoint - Meituan's CEO Wang Puzhong announced the establishment of the "Tongzhou Fund" during the "717 Knight Festival," aimed at providing support for delivery riders and their families [1] Group 1: Initiatives and Support Programs - The "Rider Serious Illness Care Plan" has provided assistance to nearly 7,000 riders and their families, distributing over 200 million yuan in care funds [1] - The "Kangaroo Baby Public Welfare Plan" has issued serious illness assistance funds to 1,082 children of riders across 12 instant delivery platforms, including Meituan, Ele.me, Shansong, and Dada [1] Group 2: Commitment to Riders - Wang Puzhong emphasized that the income of Meituan's riders will always remain at the forefront of blue-collar workers [1] - The company plans to establish 1,000 "Rider Homes" over the next three years, in collaboration with the All-China Federation of Trade Unions, to provide various services such as vocational training, rest facilities, and rights consultation [1]

Group 1 - The core idea of the news is the release of a short drama by SF Express focusing on the delivery riders, showcasing their experiences and challenges in a narrative format [1][2] - The short drama features a rider named Song Da who gains superpowers after an act of bravery, leading to a deeper investigation into hidden truths within his daily delivery routine [1] - The drama is filmed in familiar settings for riders, such as city streets and residential areas, allowing for a natural presentation of their daily activities [1] Group 2 - SF Express is the first platform in China to employ full-time delivery riders and has introduced a "Rider Grievance Care" initiative, including a special fund of 5 million yuan established in July 2024 to support riders facing difficulties [2] - Prior to the short drama, SF Express launched a series of videos aimed at addressing and soothing the emotional challenges faced by riders during deliveries [2] - The short drama serves as a platform for riders to express themselves and conveys the message that being a rider can lead to extraordinary possibilities, aligning with the company's values [2]

Core Viewpoint - The rise of "one-to-one urgent delivery" services, exemplified by the partnership between Flash Delivery and Kame Rental, is transforming leisure and tourism consumption scenarios by meeting users' temporary photography equipment needs efficiently [1][3]. Group 1: Service Features - Flash Delivery has launched a "professional delivery solution for electronic devices," focusing on timeliness, safety, professionalism, and assurance, catering to diverse consumer needs [3][4]. - The "one-to-one" delivery model ensures faster delivery times and enhanced safety by having riders deliver only one order at a time, avoiding shared deliveries [4][7]. - The company has established a specialized team of "electronic device riders," selected based on key performance indicators, ensuring a higher fulfillment rate than the industry average [4][8]. Group 2: Customer Experience - Customers have reported increased satisfaction due to the speed and safety of the delivery service, with no reported damages since the implementation of the specialized delivery solution [7][8]. - Users can track the rider's location in real-time, providing peace of mind regarding the safety and timely delivery of their valuable items [7][8]. - The service has expanded to cover six cities, including Hangzhou, Shenzhen, Chongqing, and Suzhou, with plans for nationwide rollout [5]. Group 3: Market Positioning - The introduction of the "electronic device" delivery solution reflects Flash Delivery's proactive exploration in vertical service categories, enhancing user perception of service quality and creating new growth opportunities for the company [8].