Core Viewpoint - Bawang Chaji reported a mixed performance for Q2 2025, with revenue growth but significant declines in net profit and same-store sales, attributed to increased competition and a strategic decision to slow down store expansion [1][4]. Financial Performance - In Q2 2025, Bawang Chaji's revenue reached 3.332 billion RMB, a year-on-year increase of 10.2%, while net profit fell by 87.72% to 77.238 million RMB. Adjusted net profit grew by 6.81% to 630 million RMB [1]. - For the first half of 2025, total revenue was 6.725 billion RMB, up 21.61%, with net profit declining by 38.32% to 755 million RMB, and adjusted net profit increasing by 6.78% to 1.307 billion RMB [1]. Store Expansion and Network - As of June 30, 2025, Bawang Chaji operated 7,038 stores globally, with a net increase of 598 stores since the beginning of the year. This includes 6,830 stores in China and 208 overseas [1]. - The pace of store openings has slowed compared to the previous year, where 1,485 new stores were added in the first half of 2024 [1]. Sales Metrics - The average monthly GMV for Chinese stores in Q2 2025 was 404,352 RMB, reflecting a year-on-year decline of 24.84% and a sequential decline of 6.39% [2][3]. - Same-store sales growth was negative, with a decline of 23.0% overall, -23.1% in China, and -18.1% in overseas markets [2][3]. Cost Structure - Total operating expenses in Q2 2025 rose by 41.5% to 3.224 billion RMB, with material, warehousing, and logistics costs decreasing by 1.5% to 1.537 billion RMB. Operating costs for self-operated stores increased by 72.8% to 184 million RMB [3]. - Sales and marketing expenses grew by 54.6% to 385 million RMB, with advertising costs amounting to 43.6 million RMB [3]. Market Competition and Strategy - The decline in GMV and same-store sales was attributed to strong performance in Q2 2024 and intensified competition in the delivery market, leading Bawang Chaji to slow down store expansion [4]. - The company aims to avoid price wars and focuses on high-quality products and customer experience, emphasizing long-term brand value over short-term discounts [5]. Overseas Market Performance - In Q2 2025, Bawang Chaji's total GMV was 8.103 billion RMB, with the Chinese market contributing 7.868 billion RMB (up 14.28%) and overseas markets contributing 235 million RMB (up 77.37%) [7]. - The company added 39 new stores overseas, expanding its presence to 208 stores across five markets, including Malaysia, Singapore, Indonesia, Thailand, and the USA [7].