2 1 Shi Ji Jing Ji Bao Dao·2025-08-27 14:31Core Viewpoint - The intense competition in the market is expected to continue in the short term, negatively impacting financial performance [1] Financial Performance - In Q2 2025, Meituan reported revenue of 91.8 billion RMB, a year-on-year increase of 11.7%, but adjusted net profit fell to 1.49 billion RMB, down 89%, representing a decrease of 12.1 billion RMB compared to the same period last year [2] - The core local business segment's operating profit dropped from 15.2 billion RMB in Q2 2024 to 3.7 billion RMB in Q2 2025, a year-on-year decline of 75.6%, with the operating profit margin decreasing from 25.1% to 5.7% [3] - Sales and marketing expenses surged by 7.7 billion RMB, a 51.5% increase year-on-year, primarily due to the fierce competition in the food delivery and instant retail sectors [3] Competitive Landscape - Meituan's management emphasized the need for increased investment to defend its market position and enhance long-term competitiveness amid ongoing competition [3] - CEO Wang Xing reiterated that Meituan opposes internal competition and has consistently focused on providing quality supply, stable fulfillment, and reasonable pricing to create a good user experience [4] New Business Developments - In Q2, Meituan's new business segment generated revenue of 26.5 billion RMB, a year-on-year increase of 22.8%, but losses expanded by 43.1% to 1.9 billion RMB, primarily due to the costs associated with international expansion [4] - Meituan's international delivery brand Keeta has made significant progress, covering 20 cities in Saudi Arabia and recently launching services in Qatar, with plans to enter Brazil in the coming months [4][5] Legal Challenges - The competition in the overseas food delivery market is also intense, with legal disputes arising between Meituan's Keeta and Didi's 99Food in Brazil over trademark infringement and unfair competition [6] Long-term Goals - Meituan aims for Keeta to achieve a run rate GMV of 100 billion USD within ten years, with a target date set for May 2033 [6]