Zheng Quan Shi Bao Wang·2025-04-28 14:09Core Viewpoint - The intense competition between JD.com and Meituan in the food delivery sector has led to significant stock price declines for both companies, raising concerns about their future performance [1][2]. Group 1: Market Impact - Since April, JD.com’s stock has dropped approximately 20%, while Meituan’s stock has fallen over 17%, indicating market apprehension regarding the impact of their rivalry on financial results [1]. - Investors who purchased HKD 10,000 worth of shares in either company at the beginning of April may have incurred losses exceeding HKD 1,000 [1]. Group 2: Competitive Landscape - Meituan holds a clear advantage in the food delivery market, having survived intense competition to become an industry leader, showcasing strong market adaptability and user loyalty [2]. - JD.com possesses significant logistics and delivery capabilities, which may allow it to disrupt the food delivery sector effectively, supported by its robust financial resources [2]. Group 3: Financial Performance - Both companies have experienced fluctuations in profitability; JD.com achieved profitability in 2019, faced losses in 2021, and returned to profitability in 2022, projecting a net profit of 41.4 billion yuan for 2024 [3]. - Meituan similarly began to turn a profit in 2019, faced losses in 2021 and 2022, and is expected to report a profit of 35.8 billion yuan for 2024 [3]. - The ongoing competition may pressure both companies financially, as they engage in substantial cash-burning subsidy strategies to capture market share [3]. Group 4: Future Outlook - The future trajectory of the competition remains uncertain, with both companies likely to continue aggressive strategies in the food delivery market [3]. - Healthy competition that does not compromise consumer rights or lead to monopolistic practices is essential for long-term industry growth and social economic benefits [4].