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<Research>CLSA: Subsidy War Causes JD-SW/ BABA-W to Lose RMB10B on Instant Retail Biz in 2Q
The subsidy war in China's internet industry for on-demand services escalated in 2Q25, according to CLSA's research report. JD-SW (09618.HK)(JD.US) entered the food deliver...
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<Research>CLSA: Subsidy War Causes JD-SW/ BABA-W to Lose RMB10B on Instant Retail Biz in 2Q
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The subsidy war in China's internet industry for on-demand services escalated in 2Q25, according to CLSA's research report.

JD-SW (09618.HK)  -0.500 (-0.407%)    Short selling $92.04M; Ratio 14.345%   (JD.US)      entered the food delivery market in April 2025, and launched substantial subsidies, followed by BABA-W (09988.HK)  -1.000 (-0.855%)    Short selling $589.78M; Ratio 20.908%   (BABA.US)      and MEITUAN-W (03690.HK)  -0.600 (-0.491%)    Short selling $987.08M; Ratio 45.958%   in June and July, significantly increasing subsidies for food delivery and instant shopping businesses.

Related NewsBEA Securities Expects BABA-W 1FQ Adj. EBITA to Grow 13% YoY
CLSA projected that the instant retail businesses of JD-SW/ BABA-W will record a loss of about RMB10 billion in 2Q25, while the loss in 3Q25 may increase to around RMB13 billion/ RMB15-20 billion respectively.

MEITUAN-W's incremental subsidy expenses are expected to be about half of BABA-W's. The broker also anticipated that, due to peer competition, MEITUAN-W's profit per instant service order will be under pressure.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-04 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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