MEITUAN(03690)2024-11-29 08:30Revenue Growth - Revenue increased by 22.4% YoY to RMB 93.577 billion in Q3 2024, compared to RMB 76.467 billion in Q3 2023[4] - Core local commerce segment revenue rose by 20.2% YoY to RMB 69.373 billion, with operating profit up 44.4% YoY to RMB 14.582 billion[10][12] - New business segment revenue grew 28.9% year-over-year to RMB 24.2 billion, with operating losses narrowing by 79.9% to RMB 1 billion and an improved operating loss margin of 4.2%[23] - Meituan's total revenue increased 22.4% year-over-year from RMB 76.5 billion in Q3 2023 to RMB 93.6 billion in Q3 2024, driven by growth in both core local commerce and new business segments[27] - Core local commerce revenue reached RMB 69.4 billion, with delivery services contributing RMB 27.8 billion and commission income at RMB 26.1 billion[28] - Core local commerce revenue increased by 20.2% from RMB 57.7 billion in Q3 2023 to RMB 69.4 billion in Q3 2024, driven by growth in delivery services, commission income, and online marketing services[31] - New business revenue grew by 28.9% from RMB 18.8 billion in Q3 2023 to RMB 24.2 billion in Q3 2024, primarily due to growth in the company's retail business[32] - Revenue increased by 13.8% from RMB 82.3 billion in Q2 2024 to RMB 93.6 billion in Q3 2024, with growth across both reporting segments[53] - Core local commerce revenue grew by 14.3% from RMB 60.7 billion in Q2 2024 to RMB 69.4 billion in Q3 2024, driven by increased transaction volume[56] - New business revenue increased by 12.2% from RMB 21.6 billion in Q2 2024 to RMB 24.2 billion in Q3 2024, primarily due to growth in the retail business[57] Profitability - Operating profit surged by 307.5% YoY to RMB 13.685 billion, with operating profit margin improving from 4.4% to 14.6%[4] - Adjusted EBITDA grew by 134.8% YoY to RMB 14.529 billion, and adjusted net profit increased by 124.0% YoY to RMB 12.829 billion[4] - New business segment narrowed its operating loss to RMB 1.026 billion from RMB 5.112 billion in Q3 2023[10] - Operating profit increased significantly from RMB 3.4 billion in Q3 2023 to RMB 13.7 billion in Q3 2024, with the operating profit margin rising from 4.4% to 14.6%[42] - Core local commerce operating profit grew from RMB 10.1 billion in Q3 2023 to RMB 14.6 billion in Q3 2024, with the operating profit margin increasing by 3.5 percentage points to 21.0%[45] - New business operating loss narrowed from RMB 5.1 billion in Q3 2023 to RMB 1.0 billion in Q3 2024, with the operating loss margin improving by 23.0 percentage points to 4.2%[46] - Net profit for Q3 2024 was RMB 12.9 billion, compared to RMB 3.6 billion in Q3 2023[49] - Adjusted EBITDA for Q3 2024 was RMB 14.5 billion, slightly lower than the RMB 15.0 billion in Q2 2024[51] - Operating profit for Q3 2024 was RMB 13.7 billion, with an operating margin of 14.6%, up from RMB 11.3 billion and 13.7% in Q2 2024[68] - Core local commerce operating profit decreased to RMB 14.6 billion in Q3 2024 from RMB 15.2 billion in Q2 2024, with the operating margin dropping from 25.1% to 21.0%[70] - New business operating loss narrowed to RMB 1.0 billion in Q3 2024 from RMB 1.3 billion in Q2 2024, with the operating loss margin improving from 6.1% to 4.2%[71] - Net profit for Q3 2024 was RMB 12.9 billion, compared to RMB 11.4 billion in Q2 2024[75] - Adjusted EBITDA for Q3 2024 was RMB 14.5 billion, compared to RMB 6.2 billion in Q3 2023 and RMB 15.0 billion in Q2 2024[80] - Adjusted net profit for Q3 2024 was RMB 12.8 billion, compared to RMB 5.7 billion in Q3 2023 and RMB 13.6 billion in Q2 2024[80] Cost and Expense Management - Sales costs increased by 14.8% from RMB 49.5 billion in Q3 2023 to RMB 56.8 billion in Q3 2024, but the percentage of revenue decreased by 4.0 percentage points to 60.7% due to improved cost efficiency[34] - Sales and marketing expenses rose by 6.2% from RMB 16.9 billion in Q3 2023 to RMB 18.0 billion in Q3 2024, with the percentage of revenue decreasing by 2.9 percentage points to 19.2% due to improved marketing efficiency[36] - R&D expenses remained stable at RMB 5.3 billion in Q3 2024, with the percentage of revenue decreasing by 1.3 percentage points to 5.7% due to improved operating leverage[37] - Cost of sales rose by 17.5% from RMB 48.4 billion in Q2 2024 to RMB 56.8 billion in Q3 2024, accounting for 60.7% of revenue, up 1.9 percentage points[59] - Sales and marketing expenses increased by 21.0% from RMB 14.8 billion in Q2 2024 to RMB 18.0 billion in Q3 2024, representing 19.2% of revenue[61] - R&D expenses remained stable at RMB 5.3 billion in Q3 2024, with the percentage of revenue decreasing from 6.5% to 5.7%[62] Cash Flow and Financial Position - Cash and cash equivalents stood at RMB 42.5 billion, with short-term financial investments totaling RMB 91.7 billion as of September 30, 2024[15] - Operating cash inflow reached RMB 15.2 billion in Q3 2024[15] - Cash and cash equivalents stood at RMB 42.5 billion as of September 30, 2024, with short-term financial investments at RMB 91.7 billion[82] - Net cash flow from operating activities for Q3 2024 was RMB 15.2 billion, primarily due to pre-tax profit and adjustments for non-cash items and working capital changes[84] - Net cash used in investing activities for Q3 2024 was RMB 11.9 billion, mainly due to purchases of financial investments and property, plant, and equipment[85] - Net cash used in financing activities for Q3 2024 was RMB 15.0 billion, primarily due to the repurchase of Class B shares[86] - Capital-to-debt ratio as of September 30, 2024, was approximately 22%, calculated as total borrowings and notes payable divided by total equity attributable to shareholders[87] - Total assets decreased to RMB 285.93 billion as of September 30, 2024, compared to RMB 293.03 billion as of December 31, 2023[92] - Property, plant, and equipment increased to RMB 30.39 billion as of September 30, 2024, up from RMB 25.98 billion as of December 31, 2023[92] - Cash and cash equivalents increased to RMB 42.47 billion as of September 30, 2024, compared to RMB 33.34 billion as of December 31, 2023[92] - Total liabilities decreased to RMB 125.66 billion as of September 30, 2024, down from RMB 141.07 billion as of December 31, 2023[94] - The company repurchased 120,063,700 Class B shares for a total consideration of HKD 14.21 billion during the three months ended September 30, 2024[96] - The company issued USD 1.2 billion of 4.500% senior notes due 2028 and USD 1.3 billion of 4.625% senior notes due 2029 in October 2024[105] - The company's equity attributable to owners increased to RMB 160.32 billion as of September 30, 2024, up from RMB 152.01 billion as of December 31, 2023[92] - Short-term financial investments decreased to RMB 91.69 billion as of September 30, 2024, compared to RMB 111.82 billion as of December 31, 2023[92] - Trade receivables increased to RMB 3.25 billion as of September 30, 2024, up from RMB 2.74 billion as of December 31, 2023[92] - The company's deferred tax liabilities increased to RMB 1.30 billion as of September 30, 2024, compared to RMB 968.23 million as of December 31, 2023[94] Business Segment Performance - Core local commerce segment revenue rose by 20.2% YoY to RMB 69.373 billion, with operating profit up 44.4% YoY to RMB 14.582 billion[10][12] - New business segment narrowed its operating loss to RMB 1.026 billion from RMB 5.112 billion in Q3 2023[10] - Meituan's instant retail business saw double-digit year-over-year growth in both user numbers and transaction frequency, with non-food categories growing faster due to expanded supply and improved service quality[18] - Meituan's on-demand delivery network served over 1.6 million riders, improving efficiency and safety through initiatives like the "Rider-Friendly Community" and "Rider Home" features[19] - Meituan's in-store, hotel, and travel business achieved over 50% year-over-year growth in order volume, with record highs in annual transacting users and active merchants[20] - Domestic hotel room nights continued stable growth, with high-end hotels leveraging new marketing IPs and low-end hotels benefiting from increased demand for short trips and local travel[22] - Core local commerce revenue reached RMB 69.4 billion, with delivery services contributing RMB 27.8 billion and commission income at RMB 26.1 billion[28] - Core local commerce revenue increased by 20.2% from RMB 57.7 billion in Q3 2023 to RMB 69.4 billion in Q3 2024, driven by growth in delivery services, commission income, and online marketing services[31] - New business revenue grew by 28.9% from RMB 18.8 billion in Q3 2023 to RMB 24.2 billion in Q3 2024, primarily due to growth in the company's retail business[32] - Core local commerce revenue grew by 14.3% from RMB 60.7 billion in Q2 2024 to RMB 69.4 billion in Q3 2024, driven by increased transaction volume[56] - New business revenue increased by 12.2% from RMB 21.6 billion in Q2 2024 to RMB 24.2 billion in Q3 2024, primarily due to growth in the retail business[57] Operational Metrics - Instant delivery transactions increased by 14.5% YoY to 7.078 billion orders in Q3 2024[8] - Meituan's instant retail business saw double-digit year-over-year growth in both user numbers and transaction frequency, with non-food categories growing faster due to expanded supply and improved service quality[18] - Meituan's on-demand delivery network served over 1.6 million riders, improving efficiency and safety through initiatives like the "Rider-Friendly Community" and "Rider Home" features[19] - Meituan's in-store, hotel, and travel business achieved over 50% year-over-year growth in order volume, with record highs in annual transacting users and active merchants[20] - Domestic hotel room nights continued stable growth, with high-end hotels leveraging new marketing IPs and low-end hotels benefiting from increased demand for short trips and local travel[22] - The company's active merchants are defined as those who have completed at least one transaction, purchased online marketing services, processed offline payments, or generated orders through the ERP system within a specific period[114] - The company's transaction amount includes the value of paid products and services on the platform, excluding pure payment transactions such as QR code payments and POS transactions[115] - The company's instant delivery transaction count includes transactions from food delivery and Meituan Flash Purchase businesses[116] - The company's transaction users are defined as user accounts that have paid for products and services on the platform within a specific period, regardless of subsequent refunds[117] - The company's transaction count is based on payment frequency, with specific rules for different business segments such as in-store, hotel booking, and shared mobility services[118] Corporate Governance and Shareholder Information - The company's board of directors includes executive directors Wang Xing and Mu Rongjun, and independent non-executive directors including Ou Gaodun, Leng Xuesong, Shen Xiangyang, and Yang Minde[107] - The company's financial performance and business outlook are based on unaudited management accounts and involve significant risks and uncertainties[108] - The company's A-class shares carry ten votes per share on most resolutions, while B-class shares carry one vote per share[110] - The company repurchased 120,063,700 Class B shares for a total consideration of HKD 14.21 billion during the three months ended September 30, 2024[96] - The company issued USD 1.2 billion of 4.500% senior notes due 2028 and USD 1.3 billion of 4.625% senior notes due 2029 in October 2024[105]