Zheng Quan Shi Bao·2025-08-27 22:36Core Viewpoint - The intense competition in the food delivery industry continues to impact Meituan's financial performance, leading to lower-than-expected revenue growth and a significant decline in adjusted net profit [1][3]. 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 [3]. - 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 [3]. - The core local commerce 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" [4]. Business Segmentation - New business segments contributed 26.493 billion RMB in Q2, a 22.8% increase, but operating losses expanded by 43.1% to 1.881 billion RMB [5]. - 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 [5]. Cost Structure - Sales costs increased by 27% to 61.4 billion RMB, with the cost-to-revenue ratio rising from 58.8% to 66.9% [6]. - Meituan's app reached over 500 million monthly active users, with record-high annual transaction frequency [6]. Strategic Outlook - CEO Wang Xing indicated that Meituan expects significant losses in Q3 due to strategic investments aimed at maintaining competitive pricing and service quality [7]. - Wang emphasized that the company opposes "involution" in the market and believes that competition will eventually normalize [8]. - The company plans to prioritize growth over immediate profitability, particularly in the instant retail sector, while maintaining a long-term view on subsidies [8].