2023-08-24 08:30Financial Performance - Revenue for the three months ended June 30, 2023, was RMB 67,964,624, representing a 33.4% increase from RMB 50,938,363 in the same period of 2022[2]. - Total revenue for the six months ended June 30, 2023, reached RMB 126,582,096, a 30.2% increase from RMB 97,207,117 in the same period of 2022[4]. - The company reported a net profit of RMB 8,047,110 for the six months ended June 30, 2023, compared to a net loss of RMB (6,818,593) in the same period of 2022[4]. - The net profit for Q2 2023 was RMB 4.7 billion, a significant improvement from a loss of RMB 1.1 billion in Q2 2022[32]. - The company’s adjusted net profit for the six months ended June 30, 2023, was RMB 13,151 billion, compared to a net loss of RMB 1.528 billion in the same period of 2022[52]. - Adjusted EBITDA for the six months ended June 30, 2023, was RMB 13,944,411, a significant increase from RMB 1,961,970 in the same period of 2022, reflecting a growth of 608.5%[4]. - Adjusted EBITDA for Q2 2023 was RMB 7.682 billion, up from RMB 3.803 billion in Q2 2022, indicating a year-over-year growth of approximately 102.3%[51]. - The adjusted net profit for Q2 2023 reached RMB 7.660 billion, compared to RMB 2.058 billion in Q2 2022, reflecting a substantial increase of about 272.5%[51]. Operating Metrics - Operating profit for the six months ended June 30, 2023, was RMB 8,298,720, compared to an operating loss of RMB (6,077,080) in the same period of 2022[4]. - The company achieved an operating margin of 6.6% for the six months ended June 30, 2023, compared to a negative margin of (6.3%) in the same period of 2022[4]. - The core local business segment's operating profit for Q2 2023 was RMB 11.1 billion, a 34.8% increase from RMB 8.3 billion in Q2 2022, with an operating margin of 21.8%[9]. - Operating profit for Q2 2023 was RMB 4.7 billion, with an operating profit margin of 6.9%, compared to an operating loss of RMB 492.8 million and a loss margin of 1.0% in Q2 2022[28]. - The gross profit margin improved to 37.4% in Q2 2023, compared to 30.6% in Q2 2022[21]. Revenue Breakdown - Revenue from delivery services for the three months ended June 30, 2023, was RMB 20,374,970, up from RMB 15,950,770 in the same period of 2022, marking a growth of 27.7%[5]. - Online marketing services revenue for the three months ended June 30, 2023, was RMB 10,243,600, compared to RMB 12,478,501 in the same period of 2022, indicating a decline of 9.9%[5]. - The core local business revenue reached RMB 94,085,282 thousand, while new business contributed RMB 32,496,814 thousand, indicating strong performance across segments[67]. - The new business segment's revenue rose by 18.4% year-on-year to RMB 16.8 billion, compared to RMB 14.2 billion in the same period last year[20]. User Engagement and Transactions - The number of instant delivery transactions increased by 31.6% to 5,400.4 million in June 2023 compared to 4,102.4 million in June 2022[4]. - Daily order volume for Meituan Flash Purchase peaked at over 11 million, driven by promotional activities and holiday sales[10]. - The number of cumulative transaction users reached 470 million by the end of June 2023, reflecting a strong user engagement[13]. - The number of new merchants onboarded in Q2 2023 more than doubled year-on-year, enhancing the merchant base and supply quality[9]. Cash Flow and Liquidity - Cash and cash equivalents, along with short-term investments, totaled RMB 270 billion and RMB 932 billion, respectively, as of June 30, 2023[8]. - The net cash flow from operating activities for Q2 2023 was RMB 10.866 billion, primarily driven by pre-tax profits and adjustments for non-cash items[54]. - The company reported a net cash flow from operating activities of RMB 18.92 billion for the first half of 2023, compared to a cash outflow of RMB 2.04 billion in the same period of 2022[62]. - As of June 30, 2023, the company held cash and cash equivalents of RMB 27 billion and short-term investments of RMB 93.2 billion, indicating strong liquidity[53]. Expenses and Cost Management - Sales and marketing expenses increased to RMB 14.55 billion, accounting for 21.4% of total revenue, compared to 17.6% in the previous year[21]. - Sales cost increased by 20.4% from RMB 35.4 billion in Q2 2022 to RMB 42.6 billion in Q2 2023, while the percentage of sales cost to revenue decreased by 6.8 percentage points to 62.6%[22]. - Research and development expenses increased slightly from RMB 5.2 billion in Q2 2022 to RMB 5.4 billion in Q2 2023, with the percentage of revenue decreasing by 2.2 percentage points to 8.0%[23]. - General and administrative expenses decreased from RMB 2.5 billion in Q2 2022 to RMB 2.1 billion in Q2 2023, with the percentage of revenue decreasing by 1.8 percentage points to 3.1%[24]. Corporate Governance and Compliance - The company has adhered to all applicable corporate governance codes during the reporting period[83]. - The company confirmed compliance with the standards for securities trading by directors for the six months ended June 30, 2023[84]. - The company operates under the Hong Kong Companies Ordinance and adheres to international financial reporting standards[89]. - The company is registered in the Cayman Islands and operates under the regulations of the Hong Kong Stock Exchange[89]. Future Outlook and Strategic Initiatives - The company plans to continue exploring advanced technologies such as artificial intelligence and automated delivery to drive digital transformation[14]. - The company continues to focus on expanding its market presence and enhancing its product offerings through technology-driven solutions in the retail sector[64]. - The company launched the "2023 Must-Eat List" to expand coverage and provide more recommendations and discounts to consumers[11].