Core Viewpoint - The China Securities Index for Hong Kong-listed tradable mainland consumption has experienced a decline of 3.0%, closing at 1280.46 points, with a trading volume of 54.252 billion yuan. However, the index has shown an increase of 6.66% over the past month, 1.65% over the past three months, and 17.36% year-to-date [1]. Group 1 - The index series includes HKT Hong Kong Real Estate, HKT Mainland Consumption, and HKT Mainland Banking, reflecting the overall performance of related theme securities in the Hong Kong market [1]. - The index is based on a reference date of December 31, 2007, with a base point of 1000.0 [1]. - The top ten holdings in the index are BYD Company (14.22%), Alibaba-W (12.29%), JD Group-SW (7.78%), Trip.com Group-S (7.67%), Meituan-W (6.89%), Pop Mart (4.85%), Li Auto-W (4.44%), Xpeng Motors-W (3.9%), Anta Sports (3.55%), and Yum China (3.45%) [1]. Group 2 - The index's holdings are entirely composed of stocks listed on the Hong Kong Stock Exchange, with 88.76% in discretionary consumption and 11.24% in staples [2]. - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2]. - In special circumstances, the index may undergo temporary adjustments, such as removing delisted companies or handling mergers and acquisitions according to maintenance guidelines [2].

Core Viewpoint - The Chuanghua Trading Service Hong Kong Stock Connect Selected 100 Index (CES100) experienced a decline of 1.44%, closing at 5000.69 points, with a trading volume of 74.984 billion yuan, despite a year-to-date increase of 19.56% [1][2]. Group 1: Index Performance - The CES100 index has increased by 6.95% over the past month and by 0.38% over the last three months [1]. - The index was established with a base date of December 31, 2008, and a base point of 2000.0 [1]. Group 2: Index Composition - The top ten holdings of the CES100 index include Alibaba-W (11.78%), HSBC Holdings (10.92%), Tencent Holdings (10.67%), Xiaomi Group-W (7.28%), Meituan-W (6.39%), AIA Group (5.67%), Hong Kong Exchanges and Clearing (3.99%), Standard Chartered Group (2.39%), Prudential (1.90%), and Pop Mart (1.45%) [2]. - The index is fully composed of securities from the Hong Kong Stock Exchange, with a sector breakdown showing 29.35% in consumer discretionary, 28.55% in financials, 14.10% in communication services, 9.19% in information technology, 4.63% in real estate, 4.20% in utilities, 3.44% in healthcare, 3.19% in consumer staples, 2.87% in industrials, and 0.48% in materials [2]. Group 3: Tracking Funds - Public funds tracking the CES100 include Huaan CES Hong Kong Stock Connect Selected 100 ETF Link A, Huaan CES Hong Kong Stock Connect Selected 100 ETF Link C, and Huaan CES Hong Kong Stock Connect Selected 100 ETF [2].

Financial Data and Key Metrics Changes - The company's revenue increased by 18.1% year over year to RMB86.6 billion in Q1 2025 [5][26] - The cost of revenue ratio decreased by 2.3 percentage points year over year to 62.6% [26] - Selling and marketing expenses ratio decreased by 1 percentage point year over year to 18% [26] - Total segment operating profit grew to RMB11.2 billion, up from RMB6.9 billion last year, with operating margin increasing from 9.5% to 13% [26][27] - Cash generated from operating activities increased to RMB10.1 billion [26] Business Line Data and Key Metrics Changes - Core local commerce segment revenue grew by 17.8% year over year to RMB64.3 billion [32] - The new initiatives segment revenue increased by 19.2% year over year to RMB22.2 billion, driven by grocery retail and overseas business [33] - The number of annual active in-store merchants increased by over 25% year over year [16] Market Data and Key Metrics Changes - The number of Meituan instant shopping transacting users exceeded 500 million, with young consumers born after 1990 accounting for two-thirds [61] - Daily order volume for Meituan instant shopping nearly doubled year over year during Valentine's Day [30] - The InstaMart business saw order volume increase by about 50% year over year [31] Company Strategy and Development Direction - The company plans to invest RMB100 billion over the next three years to drive high-quality growth in the food service industry [10][69] - The focus is on empowering merchants, elevating supply quality, stimulating consumption, and enhancing the overall business environment [69] - The company aims to solidify its market leadership while promoting healthy and sustainable industry development [44][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the irrational subsidy competition in the industry but expressed confidence in the company's ability to maintain market leadership [40][44] - The company expects volatility in short-term financial results due to intensified competition but remains optimistic about long-term growth potential [47][50] - Management emphasized the importance of enhancing user experience and operational efficiency through AI technology [24] Other Important Information - The company has launched a pension pilot program for couriers, aiming to enhance their rights and benefits [73] - The Bright Kitchen program aims to improve food safety and quality by encouraging high standards among food delivery merchants [71] Q&A Session Summary Question: Impact of JD's subsidy program on order volume growth - Management stated that they are prepared to invest as needed to maintain competitiveness and highlighted their position as the largest player in the food delivery market [38][39] Question: Strategy for expanding Meituan Insta Shopping - Management confirmed robust growth in non-food categories and emphasized the importance of expanding product coverage and quality standards [58][60] Question: Details on the RMB100 billion food subsidy promotion plan - Management outlined the plan's focus on empowering merchants, elevating supply quality, and stimulating consumption [69][70] Question: Progress of KITA in Hong Kong and Saudi Arabia - Management reported strong growth in both regions and outlined plans for further expansion [82][84] Question: Capital allocation strategy amid overseas expansion - Management emphasized a balanced approach to capital allocation, focusing on core local commerce cash flow while supporting new initiatives [100]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 18.1% year over year, reaching RMB86.6 billion [5][27] - The cost of revenue ratio decreased by 2.3 percentage points to 62.6%, attributed to improved gross margins in the grocery retail business [27] - Total segment operating profit grew to RMB11.2 billion, up from RMB6.9 billion last year, with operating margin increasing from 9.5% to 13% [27][28] - Cash generated from operating activities increased significantly year over year to RMB10.1 billion [29] Business Line Data and Key Metrics Changes - The core local commerce segment achieved a revenue growth of 17.8%, reaching RMB64.3 billion, with operating profit improving to RMB13.5 billion [33] - The new initiatives segment saw a revenue increase of 19.2% year over year to RMB22.2 billion, primarily driven by grocery retail and overseas business [34] - The number of annual active in-store merchants increased by over 25% year over year in Q1 [17] Market Data and Key Metrics Changes - The company reported robust growth in on-demand retail, with significant demand expansion in non-food gifting categories during the Valentine's Day period [31] - The Meituan InstaMart business captured heightened consumer spending during key holiday periods, with order volume increasing by about 50% year over year [32] - The number of transacting users for Meituan instant shopping exceeded 500 million, with young consumers born after 1990 accounting for two-thirds of this figure [62] Company Strategy and Development Direction - The company plans to invest RMB100 billion over the next three years to drive high-quality growth in the food service industry [10][70] - The focus is on empowering merchants, elevating supply quality, stimulating consumption, and enhancing the overall business environment for restaurant merchants [70] - The company aims to leverage AI technology to refine user experience and improve merchant operational efficiency [25] Management Comments on Operating Environment and Future Outlook - Management acknowledged the irrational subsidy competition in the industry but expressed confidence in the company's ability to maintain market leadership [46][51] - The company anticipates volatility in short-term financial results due to intensified competition but remains committed to long-term growth [49][52] - Management emphasized the importance of enhancing the quality of services and products to drive sustainable growth in the food delivery industry [48] Other Important Information - The company has launched a new pension pilot program for couriers, aimed at enhancing their rights and interests [74] - The Bright Kitchen program aims to improve food safety and quality by encouraging high standards among food delivery merchants [72] - The company is expanding its overseas business, with significant progress in markets like Hong Kong and Saudi Arabia, and plans to enter Brazil [81][90] Q&A Session Summary Question: Impact of JD's subsidy program on order volume growth - Management stated that they are prepared to take necessary actions to maintain competitiveness and highlighted the importance of their established market position [39][46] Question: Strategy for expanding Meituan Insta Shopping - Management confirmed robust growth in non-food categories and emphasized the importance of expanding product coverage and quality standards [58][60] Question: Details on the RMB100 billion food subsidy promotion plan - Management outlined the plan's focus on empowering merchants, elevating supply quality, and stimulating consumption [70][73] Question: Progress of KITA in Hong Kong and Saudi Arabia - Management reported strong growth in both regions and outlined plans for further expansion [81][90] Question: Capital allocation strategy amidst increased overseas investments - Management emphasized a balanced approach to capital allocation, focusing on core local commerce cash flow while supporting new initiatives [98]

Group 1 - The core viewpoint of the articles highlights Meituan's strong financial performance for the first quarter of 2025, with significant year-on-year growth in revenue and profit metrics [1][2][3] - Meituan's revenue reached 865.57 billion RMB, representing an 18.1% increase year-on-year, while net profit attributable to equity holders surged by 87.33% to 100.57 billion RMB [1] - The adjusted EBITDA for the quarter was 123.02 billion RMB, reflecting a 52.4% increase compared to the previous year [1] Group 2 - The core local business segment saw a revenue increase of 17.8% to 643 billion RMB, with operating profit rising by 39.1% to 135 billion RMB, and an operating profit margin improvement of 3.2 percentage points to 21.0% [1] - The food delivery business maintained healthy growth through refined operational strategies, enhancing user engagement and purchase frequency, particularly among mid-to-high frequency users [2] - Meituan is investing 1 trillion RMB over the next three years to promote high-quality development in the industry, focusing on supporting merchants and improving food safety and product quality [2] Group 3 - The new business segment reported a revenue increase of 19.2% to 222 billion RMB, with operating losses narrowing by 17.5% to 23 billion RMB, and an improvement in the operating loss rate by 4.6 percentage points to 10.2% [3] - Meituan's grocery retail and software services have seen operational optimization, contributing to significant efficiency improvements year-on-year [3] - The overseas business, particularly in Saudi Arabia, has shown remarkable progress, with positive consumer feedback and a rapid rise in popularity as a food delivery platform [3]

Financial Performance - The company's revenue for the first quarter of 2025 increased by 18.1% year-on-year to RMB 86.56 billion, compared to RMB 73.28 billion in the same period of 2024[10]. - Operating profit for the core local business segment reached RMB 13.49 billion, a 39.1% increase from RMB 9.7 billion in the previous year, with an operating margin improvement of 3.2 percentage points to 21.0%[11]. - Adjusted EBITDA for the first quarter was RMB 12.30 billion, reflecting a year-on-year growth of 52.4% from RMB 8.07 billion[6]. - The company achieved a net profit of RMB 10.06 billion, up 87.3% from RMB 5.37 billion in the same quarter last year[6]. - The adjusted net profit for the first quarter was RMB 10.95 billion, a 46.2% increase from RMB 7.49 billion in the previous year[6]. - The company reported a gross profit of RMB 32.4 billion in Q1 2025, up from RMB 25.7 billion in Q1 2024, reflecting a significant increase in profitability[21]. - Operating profit for Q1 2025 was RMB 10.6 billion, compared to RMB 5.2 billion in the same period last year, indicating strong operational performance[21]. - The net profit for Q1 2025 was RMB 10.1 billion, compared to RMB 5.4 billion in Q1 2024[39]. - Revenue for the three months ended March 31, 2025, was RMB 86,557,126 thousand, representing a 18.1% increase from RMB 73,275,884 thousand for the same period in 2024[69]. - Gross profit for the same period was RMB 32,413,689 thousand, up 26.2% from RMB 25,696,740 thousand year-over-year[69]. - Operating profit increased to RMB 10,566,110 thousand, a significant rise of 102.6% compared to RMB 5,209,392 thousand in the previous year[69]. - Net profit for the period was RMB 10,056,880 thousand, compared to RMB 5,368,979 thousand in the same quarter of 2024, marking an 87.5% increase[69]. Revenue Growth - Total revenue grew by 18.1% from RMB 73.3 billion in Q1 2024 to RMB 86.6 billion in Q1 2025, with both reporting segments showing revenue growth[22]. - The delivery service revenue grew by 22.1% year-on-year, while commission revenue increased by 20.1%[9]. - The revenue of the core local business segment increased by 17.8% from RMB 54.6 billion in Q1 2024 to RMB 64.3 billion in Q1 2025[25]. - In Q1 2025, the new business segment revenue increased by 19.2% year-on-year to RMB 22.2 billion, with operating losses narrowing by 17.5% to RMB 2.3 billion, improving the operating loss margin by 4.6 percentage points to 10.2%[18]. - Total revenue for Q1 2025 reached RMB 86.6 billion, with a significant contribution from other services and sales, which amounted to RMB 23.7 billion[24]. Expenses and Costs - Sales costs increased by 13.8% from RMB 47.6 billion in Q1 2024 to RMB 54.1 billion in Q1 2025, while the percentage of sales costs to revenue decreased from 64.9% to 62.6%[26]. - R&D expenses rose by 15.4% to RMB 5.8 billion in Q1 2025, reflecting increased investment in AI[29]. - Research and development expenses increased by 6.5% from RMB 5.42 billion in Q4 2024 to RMB 5.77 billion in Q1 2025, representing 6.7% of revenue[48]. - Sales and marketing expenses decreased by 10.1% from RMB 17.3 billion in Q4 2024 to RMB 15.55 billion in Q1 2025, accounting for 18.0% of revenue[47]. Cash Flow and Financial Position - Cash and cash equivalents, along with short-term investments, totaled RMB 115 billion and RMB 65.4 billion, respectively, as of March 31, 2025[10]. - Net cash flow from operating activities for Q1 2025 was RMB 10.1 billion, attributed to pre-tax profit adjustments and changes in working capital[65]. - Net cash flow from investing activities for Q1 2025 was RMB 34.8 billion, primarily from net inflows of financial investments[66]. - Net cash flow used in financing activities for Q1 2025 was RMB 506.5 million, mainly due to lease liability payments[67]. - The capital-to-debt ratio as of March 31, 2025, was approximately 30%, calculated as total borrowings and payables divided by total equity attributable to equity holders[68]. - Total assets as of March 31, 2025, were RMB 333,931,974 thousand, up from RMB 324,354,917 thousand at the end of 2024[70]. - Cash and cash equivalents increased to RMB 115,015,460 thousand from RMB 70,834,097 thousand, reflecting a growth of 62.5%[70]. - Total liabilities decreased to RMB 149,795,988 thousand from RMB 151,750,839 thousand, indicating a reduction of 1.3%[71]. Business Strategy and Development - The company plans to invest RMB 100 billion over the next three years to promote high-quality development in the industry[12]. - The company is committed to expanding support measures for merchants and optimizing the online operating environment to foster innovation and growth[19]. - The company aims to enhance user experience and operational efficiency through AI technology, responding to national strategies to boost consumption and expand domestic demand[19]. - The company is focused on expanding its market presence and enhancing its service offerings through new strategies and technologies[80]. - The company plans to continue developing new products and technologies to drive future growth[80]. Corporate Governance and Compliance - The company has adopted the principles and code provisions of the corporate governance code, ensuring effective internal controls and transparency[75]. - The board of directors includes executive directors Wang Xing and Mu Rongjun, and independent non-executive directors[80]. - The financial information presented is based on unaudited management accounts and includes forward-looking statements related to business outlook and financial performance forecasts[80]. - The company emphasizes that forward-looking statements are subject to various risks and uncertainties, and should not be overly relied upon by investors[80]. Market and Consumer Engagement - The company launched the "Meituan Membership" program in March 2025, covering all business categories and enhancing consumer engagement through differentiated benefits[17]. - The hotel and travel business upgraded member benefits, including room upgrades and free breakfast, enhancing brand recognition and cross-selling opportunities[16]. - The number of "Meituan Lightning Warehouses" and their order share continued to rise, particularly in lower-tier markets, supporting the growth of instant retail[14]. - The company has received positive feedback for its overseas business, particularly for the Keeta platform in Saudi Arabia, which is rapidly gaining popularity[18]. Impairment and Other Financial Metrics - The company reported a decrease in impairment losses on financial and contract assets from RMB 1.75 billion in Q1 2024 to RMB 1.22 billion in Q1 2025[31]. - The company’s other income remained stable at RMB 1.4 billion in Q1 2025[33]. - Other income turned from a loss of RMB 933.3 million in Q4 2024 to a gain of RMB 1.42 billion in Q1 2025, mainly due to fluctuations in unrealized foreign exchange gains/losses[52]. - The fair value change of other financial investments increased from RMB 12.8 million in Q4 2024 to RMB 804.8 million in Q1 2025, reflecting fluctuations in the investment portfolio[51]. - The profit attributable to equity method investments decreased from RMB 316.5 million in Q4 2024 to RMB 18.5 million in Q1 2025 due to fluctuations in the financial performance of investees[56]. - Income tax expenses decreased from RMB 674.2 million in Q4 2024 to RMB 543.9 million in Q1 2025, primarily based on forecasts of taxable income for several entities[57].

Core Viewpoint - The recent analysis indicates that Meituan's stock price is under pressure, with potential support levels identified at 126.2 and 118.5, while resistance levels are at 140.2 and 147 [3][4]. Technical Analysis - Meituan's stock has fallen below the 10-day moving average (138.05) and the 30-day moving average (139.79), suggesting bearish momentum [3]. - The Relative Strength Index (RSI) is at 40, nearing oversold territory, while the William and Stochastic indicators signal potential buying opportunities [3]. - Key support levels are identified at 126.2 (Support 1) and 118.5 (Support 2), with resistance levels at 140.2 and 147 [3]. Derivative Market Activity - The derivative market for Meituan has seen increased activity, particularly in put options and bear certificates, reflecting heightened market risk aversion [4]. - Notable performance includes Societe Generale's bear certificate (63108) and JPMorgan's put option (13412), which recorded increases of 37% and 40% respectively after a 5.74% drop in the underlying stock [4]. Options Overview - Call options such as HSBC's (26318) offer a leverage of 5.5 times with an exercise price of 150.1, while Morgan Stanley's call option (24041) provides a leverage of 9 times with a lower premium [7]. - On the bearish side, JPMorgan's put option (13412) has a leverage of 7 times with an exercise price of 118.9, and UBS's put option (13314) offers a leverage of 7.1 times with the same exercise price [9].

Group 1 - The core viewpoint of the news is that the China Securities Index for BRICS countries (Hong Kong) has shown significant growth, with a 13.71% increase year-to-date and an 8.89% increase over the past month [1][2] - The index includes securities from major exchanges such as the Shanghai Stock Exchange, Shenzhen Stock Exchange, and companies from Brazil, Russia, India, and South Africa listed on developed markets like NYSE and LSE [1][2] - The index is designed to reflect the overall performance of selected securities, with a base date of December 30, 2005, set at 1000.0 points [1] Group 2 - The top ten holdings of the index include Tencent Holdings (14.65%), Alibaba-W (10.68%), and Reliance Industries Ltd (9.34%), among others [2] - The market distribution of the index shows that 65.07% of the holdings are from the Hong Kong Stock Exchange, 19.56% from the New York Stock Exchange, and 15.37% from the London Stock Exchange [2] - The industry breakdown of the index indicates that financials account for 27.01%, consumer discretionary for 23.48%, and communication services for 20.38%, with other sectors represented as well [2] Group 3 - The index samples are adjusted biannually, with changes implemented on the next trading day after the second Friday of June and December [3] - The adjustment process allows for a maximum of 10% of the sample to be changed, prioritizing the top 48 new samples for inclusion and retaining older samples ranked within the top 72 [3] - In special circumstances, the index may undergo temporary adjustments, with the highest-ranked securities from a pre-established backup list replacing any removed securities [3]

Group 1 - The Shanghai Composite Index decreased by 0.40%, while the CESHKM index fell by 0.62% to 6493.91 points, with a trading volume of 81.49 billion yuan [1] - The CESHKM index has increased by 9.77% over the past month, 0.21% over the past three months, and 16.01% year-to-date [1] - The CESHKM index is composed of several indices, including the China 120 Index, China A80 Index, and China 280 Index, reflecting the overall performance of large and mid-cap securities listed in Shanghai, Shenzhen, and Hong Kong [1] Group 2 - The top ten holdings of the CESHKM index include Alibaba-W (12.43%), Tencent Holdings (10.62%), Xiaomi Group-W (7.66%), and others, indicating a concentration in major tech and financial companies [1] - The market sectors represented in the CESHKM index include Consumer Discretionary (35.34%), Communication Services (22.32%), Financials (20.64%), and Information Technology (10.09%), among others [2] - The Hong Kong Stock Exchange accounts for 100% of the holdings in the CESHKM index, highlighting its exclusive focus on this market [2]

Core Viewpoint - The China Securities Index Growth Strategy Index has shown significant growth, with a year-to-date increase of 22.23% and a recent one-month increase of 9.41% [1][2] Group 1: Index Performance - The China Securities Index Growth Strategy Index reported a value of 1267.76 points [1] - The index has increased by 9.41% over the past month, 4.01% over the past three months, and 22.23% year-to-date [1] Group 2: Index Composition - The index is composed of liquid securities with growth characteristics, weighted by a combination of growth probability and free float market capitalization [1] - The top ten holdings in the index include Tencent Holdings (10.36%), Alibaba-W (9.86%), Xiaomi Group-W (9.68%), Meituan-W (8.11%), BYD Company (6.15%), Hong Kong Stock Exchange (5.7%), BeiGene (2.02%), Techtronic Industries (2.0%), Li Auto-W (1.97%), and Pop Mart International (1.89%) [1] Group 3: Sector Allocation - The index is fully composed of securities from the Hong Kong Stock Exchange [2] - Sector allocations include Consumer Discretionary (41.09%), Information Technology (14.82%), Communication Services (13.43%), Healthcare (7.97%), Financials (7.23%), Industrials (3.39%), Consumer Staples (2.93%), Materials (2.92%), Energy (2.44%), Utilities (2.13%), and Real Estate (1.65%) [2] Group 4: Index Adjustment Mechanism - The index samples are adjusted quarterly, with adjustments occurring in March, June, September, and December [2] - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2]