MEITUAN(03690)2025-05-26 08:36Financial 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].