Sou Hu Cai Jing·2025-05-27 00:00Core Viewpoint - The CEO of Meituan, Wang Xing, stated that the Chinese food delivery industry has entered a new development stage, emphasizing that competition should return to the essence of business rather than relying on aggressive subsidies [2][3][4] Group 1: Industry Competition - Wang Xing welcomed new players in the food delivery and instant retail markets, believing that competition will drive industry development, but warned that the current "involution" competition based on high subsidies is unsustainable in the long term [3][4] - Meituan's recent performance showed a strong growth in beverage orders, particularly for price-sensitive items like milk tea and coffee, despite increased competition leading to issues for other platforms [3][4] - The company plans to increase investments while adhering to fair competition principles, despite anticipating fluctuations in financial performance due to ongoing high subsidy levels from competitors [4] Group 2: Financial Performance - Meituan reported a total revenue of 86.6 billion yuan for Q1 2025, a year-on-year increase of 18.1%, with profits reaching 10.1 billion yuan, up 87.3% from the same period in 2024 [2] - Adjusted net profit for Q1 was 10.9 billion yuan, a 46.2% increase compared to 7.5 billion yuan in Q4 2024 [2] Group 3: International Expansion - Meituan's delivery service, Keeta, has successfully entered the Brazilian market with a commitment to invest 1 billion USD over the next five years, while also expanding its operations in Saudi Arabia [5] - Keeta has become a leading food delivery service in Hong Kong and has covered all major cities in Saudi Arabia, indicating strong growth potential in international markets [5] Group 4: AI Development - The company is increasing investments in AI and recruiting top talent to enhance its capabilities, with recent upgrades to its large model allowing for flexible switching between thinking and non-thinking modes [6] - Approximately 52% of new code generated weekly is now produced by AI, with a goal of having 100% of engineers using AI coding tools [6] Group 5: Rider Welfare Initiatives - Meituan has launched a pilot pension insurance program for riders in Nantong and Quanzhou, covering all riders in these cities, and previously implemented a pilot for occupational injury insurance [7] - The pension insurance plan is tailored to the flexible nature of riders' work, offering subsidies for eligible riders and aiming to expand the program to more cities this year [7]