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Executing its revamped strategy

■ 3Q21’s net loss widened, up 11% yoy to Rmb270m (2Q21: 5% yoy) and slightly worse than our expectations.
■ 3Q21’s third-party revenue accelerated to 16% yoy (2Q21: 9% yoy), the highest since 2Q20. Its 3Q21 mix of group revenue was 33%, up 1% pt qoq.
■ Notable efficiency improvements drove double-digit improvement in net loss.
■ Reiterate Add. Our DCF-based TP is reduced to US$4.40 (WACC: 14.2%), primarily on lower FY21F-23F net profit estimates.

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