Zheng Quan Shi Bao·2025-08-27 15:03Core Viewpoint - The intense competition in the food delivery industry continues to impact Meituan's financial performance, leading to a significant drop in adjusted net profit despite revenue growth [1][4]. Financial Performance - In Q2, Meituan reported revenue of 91.84 billion RMB, a year-on-year increase of 11.7%, but adjusted net profit fell sharply by 89% to 1.49 billion RMB [4]. - For the first half of 2025, Meituan achieved revenue of 178.398 billion RMB, up 14.7%, with adjusted net profit down 41% to 12.442 billion RMB [4]. - The core local business segment, which is Meituan's main revenue source, generated 65.347 billion RMB in Q2, a 7.7% increase, but the operating profit margin plummeted from 25.1% to 5.7% due to "irrational competition" [5]. Business Segmentation - The new business segment contributed 26.493 billion RMB in Q2, a 22.8% increase, but operating losses expanded by 43.1% to 1.881 billion RMB [6]. - Sales and marketing expenses surged by 51.5% year-on-year to 77 billion RMB, reflecting the intense competition in the food delivery and instant retail sectors [6]. - Sales costs rose by 27% to 61.4 billion RMB, with the cost-to-revenue ratio increasing from 58.8% to 66.9% [7]. User Engagement and Market Position - Meituan's app monthly active users exceeded 500 million, with annual transaction frequency reaching a historical high [7]. - In July, Meituan's instant retail daily order volume peaked at 150 million, setting a new record [7]. Strategic Outlook - CEO Wang Xing indicated that Meituan expects significant losses in Q3 due to strategic investments aimed at maintaining competitive pricing and enhancing delivery services [9]. - Wang emphasized the belief that competition will eventually normalize, despite the current aggressive market dynamics [10]. - The company plans to prioritize growth over immediate profitability, particularly in the instant retail sector, while maintaining a long-term vision for market leadership [10].