MEITUAN(03690)2023-11-28 08:30Revenue Growth - Revenue increased by 22.1% YoY to RMB 76.47 billion in Q3 2023, compared to RMB 62.62 billion in Q3 2022[4] - Total revenue grew by 22.1% YoY to RMB 76.5 billion in Q3 2023, driven by the recovery of local consumption[29] - Revenue for Q3 2023 was RMB 76,466.9 million, a 22.1% increase from RMB 62,618.9 million in Q3 2022[93] - Revenue grew 12.5% QoQ to RMB 76.5 billion in Q3 2023, with both reporting segments achieving revenue growth[56] Operating Profit and Margins - Operating profit surged by 239.9% YoY to RMB 3.36 billion, with an operating profit margin of 4.4%[4] - Operating profit increased to RMB 3.4 billion in Q3 2023, with an operating margin of 4.4%, up from RMB 988.2 million and 1.6% in Q3 2022[45] - Operating profit for Q3 2023 was RMB 3,358.5 million, compared to RMB 988.2 million in Q3 2022 and RMB 4,713.0 million in Q2 2023[93] - Operating profit for Q3 2023 was RMB 3.4 billion, with an operating margin of 4.4%, down from RMB 4.7 billion and 6.9% in Q2 2023[71] Adjusted EBITDA and Net Profit - Adjusted EBITDA grew by 28.9% YoY to RMB 6.19 billion, and adjusted net profit increased by 62.4% YoY to RMB 5.73 billion[4] - Adjusted EBITDA for Q3 2023 was RMB 6.19 billion, up from RMB 4.80 billion in Q3 2022[27] - Adjusted net profit for Q3 2023 was RMB 5.73 billion, compared to RMB 3.53 billion in Q3 2022[27] - Adjusted EBITDA for Q3 2023 was RMB 6.2 billion, compared to RMB 7.7 billion in Q2 2023[54] - Adjusted net profit for Q3 2023 was RMB 5,727.4 million, compared to RMB 3,526.6 million in Q3 2022 and RMB 7,659.9 million in Q2 2023[80] Core Local Commerce - Core Local Commerce revenue rose by 24.5% YoY to RMB 57.7 billion, with an operating profit of RMB 10.1 billion and a profit margin of 17.5%[16] - Core local commerce revenue increased by 24.5% YoY to RMB 57.7 billion in Q3 2023, supported by growth in instant delivery orders and in-store, hotel, and travel transactions[31] - Core local commerce operating profit grew to RMB 10.1 billion in Q3 2023, with an operating margin of 17.5%, down 2.6 percentage points YoY[47] - Core local commerce revenue increased by 12.7% from RMB 51.2 billion in Q2 2023 to RMB 57.7 billion in Q3 2023, driven by seasonal factors, increased delivery transactions, and growth in in-store, hotel, and travel business[58] - Core local commerce operating profit decreased to RMB 10.1 billion in Q3 2023 from RMB 11.1 billion in Q2 2023, with the operating margin dropping from 21.8% to 17.5% due to higher subsidies and lower unit economics[75] New Business Segment - New business segment revenue increased by 15.3% YoY to RMB 18.8 billion in Q3 2023, with operating losses narrowing by 24.5% to RMB 5.1 billion[22] - New business revenue grew by 15.3% YoY to RMB 18.8 billion in Q3 2023, primarily due to growth in the retail business, partially offset by a contraction in the ride-hailing business[33] - New business operating loss narrowed to RMB 5.1 billion in Q3 2023, with an operating loss margin of 27.2%, improving by 14.4 percentage points YoY[48] - New business revenue grew by 12.0% from RMB 16.8 billion in Q2 2023 to RMB 18.8 billion in Q3 2023, primarily due to seasonal factors and growth in retail and other new businesses[59] - New business operating loss narrowed slightly to RMB 5.1 billion in Q3 2023, with the loss ratio improving from 31.0% to 27.2% due to operational efficiency improvements[75] Instant Delivery and Instashopping - Instant delivery transactions increased by 23.0% YoY to 6.18 billion orders in Q3 2023[7] - Meituan Instashopping daily order peak exceeded 13 million orders in August 2023, with significant growth in user and merchant numbers[18] Merchant and User Growth - Annual active merchants increased by 30% YoY in Q3 2023, driven by digitalization efforts and partnerships with nearly 400 brands[18] - Meituan Youxuan accumulated 490 million transacting users by the end of September 2023, enabling cross-selling of other products and services[22] - Meituan Maicai recorded strong transaction growth in Q3 2023, with user scale, purchase frequency, and average order value steadily increasing[22] Non-Food Categories - Non-food categories such as digital, home appliances, and beauty products showed strong growth in Q3 2023[18] Cash and Financial Position - Cash and cash equivalents stood at RMB 25.1 billion, with short-term financial investments totaling RMB 108.5 billion as of September 30, 2023[15] - Operating cash inflow reached RMB 11.2 billion in Q3 2023[15] - Net cash generated from operating activities in Q3 2023 was RMB 11,211.8 million, primarily due to pre-tax profit and adjustments for non-cash items and changes in working capital[82][89] - Net cash used in investing activities in Q3 2023 was RMB 15,193.5 million, including purchases of financial investments, property, plant, and equipment, and other investments[82][85] - Net cash generated from financing activities in Q3 2023 was RMB 2,163.7 million, mainly due to an increase in financial liabilities, partially offset by lease liability payments[82][90] - Cash and cash equivalents at the end of Q3 2023 were RMB 25,148.9 million, compared to RMB 27,003.0 million at the beginning of the quarter[82] - Cash and cash equivalents reached RMB 25.149 billion, up 24.8% from RMB 20.159 billion at the end of 2022[95] Expenses - Sales costs increased by 12.2% YoY to RMB 49.5 billion in Q3 2023, accounting for 64.7% of revenue, down 5.7 percentage points YoY[36] - Sales and marketing expenses grew 55.3% YoY to RMB 16.9 billion in Q3 2023, accounting for 22.1% of revenue, up 4.7 percentage points YoY[37] - R&D expenses decreased 1.7% YoY to RMB 5.3 billion in Q3 2023, accounting for 7.0% of revenue, down 1.6 percentage points YoY[39] - General and administrative expenses remained stable at RMB 2.5 billion in Q3 2023, accounting for 3.3% of revenue, down 0.7 percentage points YoY[40] - Sales and marketing expenses increased to RMB 16.9 billion in Q3 2023, up from RMB 14.6 billion in Q2 2023, with the expense ratio rising from 21.4% to 22.1% due to increased user incentives and advertising costs[63] - Cost of sales rose by 16.3% from RMB 42.6 billion in Q2 2023 to RMB 49.5 billion in Q3 2023, with the cost ratio increasing from 62.6% to 64.7% due to higher delivery-related costs and retail business expenses[65] - R&D expenses decreased to RMB 5.3 billion in Q3 2023 from RMB 5.4 billion in Q2 2023, with the expense ratio dropping from 8.0% to 7.0% due to reduced employee benefits[66] - General and administrative expenses increased to RMB 2.5 billion in Q3 2023 from RMB 2.1 billion in Q2 2023, with the expense ratio rising from 3.1% to 3.3% due to higher employee benefits[67] In-Store and Hotel/Travel Business - In August, the company's in-store business transaction amount achieved strong growth and reached a new high, with live streaming coverage expanded to over 200 cities[19] - The hotel and travel business maintained strong growth in Q3, with transaction amount and room nights significantly increasing compared to 2022 and 2019[20] Gross Profit - Gross profit for Q3 2023 was RMB 26,982.4 million, a 45.8% increase from RMB 18,504.9 million in Q3 2022[93] Net Profit - Net profit for Q3 2023 was RMB 3.6 billion, compared to RMB 1.2 billion in Q3 2022[50] - Net profit for Q3 2023 was RMB 3.6 billion, down from RMB 4.7 billion in Q2 2023[77] Assets and Liabilities - Total assets increased to RMB 285.513 billion as of September 30, 2023, up from RMB 244.481 billion as of December 31, 2022[95] - Property, plant, and equipment grew to RMB 24.289 billion, a 9.4% increase from RMB 22.201 billion at the end of 2022[95] - Long-term financial investments surged to RMB 15.240 billion, an 87.8% rise from RMB 8.114 billion in the previous year[95] - Trade payables increased to RMB 21.339 billion, a 22.8% rise from RMB 17.379 billion in the previous year[97] - Merchant payables grew to RMB 20.169 billion, a 62.2% increase from RMB 12.432 billion at the end of 2022[97] - Total liabilities rose to RMB 137.689 billion, up 18.9% from RMB 115.775 billion as of December 31, 2022[97] - The company's equity attributable to owners increased to RMB 147.878 billion, a 14.9% rise from RMB 128.762 billion at the end of 2022[95] Corporate Governance - The company maintains a consistent corporate governance structure, with Wang Xing serving as both Chairman and CEO, a decision supported by the board for strategic consistency[102] - The company's A-class shares grant holders 10 votes per share on any resolutions at shareholder meetings, except for reserved matters where they have 1 vote per share[110] - The company's B-class shares grant holders 1 vote per share on any resolutions at shareholder meetings[110] Definitions - The company defines "active merchants" as those who complete at least one transaction, purchase online marketing services, process offline payments, or generate orders through the ERP system within a specific period[126] - The company defines "transaction amount" as the value of paid products and services on its platform, excluding pure payment transactions like QR code payments and POS payments[127] - The company defines "transaction users" as user accounts that pay for products and services on its platform within a specific period, regardless of refunds[128] - The company defines "transactions" based on payment counts, with specific rules for different business segments like group buying, hotel bookings, and bike-sharing[129] Capital Structure - The company's capital-to-debt ratio as of September 30, 2023, was approximately 39%, calculated as total borrowings and notes payable divided by total equity attributable to equity holders[91] Share Transactions - The company did not purchase, sell, or redeem any listed securities during the three months ended September 30, 2023[99]