2 1 Shi Ji Jing Ji Bao Dao·2025-11-28 12:59Core Insights - Meituan reported a revenue of 95.5 billion RMB for Q3 2025, a year-on-year growth of 2%, but faced an adjusted net loss of 16 billion RMB compared to a profit of 12.8 billion RMB in the same period last year [1] - The intensified competition in the food delivery sector led to a significant loss of 14.1 billion RMB in Meituan's core local business, with expectations of continued losses into Q4 [1][2] - The fierce competition resulted in increased marketing expenses, which rose by 90.9% to 34.3 billion RMB, accounting for 35.9% of revenue [2] - Meituan's CEO expressed that the price war in the food delivery market is unsustainable and has not created value for the industry [5] Financial Performance - Meituan's Q3 operating profit for its core local business dropped by 75.6% to 3.7 billion RMB [2] - The company anticipates that the trend of operating losses will continue into Q4, although there are signs that competition may ease due to reduced spending from competitors [2][3] - The marketing expenses for Meituan in Q3 2025 were 34.3 billion RMB, a significant increase from 18 billion RMB in Q3 2024 [2] Market Dynamics - The food delivery market has seen a "burning money" phase, with major players like Meituan, Alibaba, and JD.com heavily investing in subsidies [2][3] - Alibaba's CFO indicated that the current quarter would be a peak in spending, suggesting a potential reduction in competitive pressure in the upcoming quarter [3] - Meituan maintains a strong market share, with over 70% of orders exceeding 30 RMB and over 66% for orders above 15 RMB [4][5] Strategic Outlook - Meituan's CEO emphasized the company's commitment to supporting rider rights and small merchants, aiming for long-term industry health [5] - The company is focused on maintaining its market position in instant retail and improving service experience and operational efficiency [5]