2 1 Shi Ji Jing Ji Bao Dao·2025-11-28 14:04Core Viewpoint - Meituan reported a significant decline in profitability due to intensified competition in the food delivery sector, leading to a net loss of 160 billion RMB in Q3 2025, compared to a profit of 128 billion RMB in the same period last year [1][2][6]. Financial Performance - Meituan's revenue for Q3 2025 reached 955 billion RMB, reflecting a year-on-year growth of 2% [1]. - The adjusted net loss for the quarter was 160 billion RMB, a stark contrast to the profit of 128 billion RMB in Q3 2024 [1][2]. - Core local business operating profit turned negative, resulting in a loss of 141 billion RMB for the quarter [2][5]. Competitive Landscape - The food delivery market has seen fierce competition, with major players like Meituan, Alibaba, and JD.com engaging in aggressive subsidy wars, leading to substantial financial losses [2][5]. - Meituan's sales and marketing expenses surged by 90.9% year-on-year to 343 billion RMB, accounting for 35.9% of its revenue, driven by increased promotional and advertising costs [5]. - Alibaba's operating profit dropped by 85% in Q3, with sales and marketing expenses rising to 664.96 billion RMB, an increase of 340 billion RMB from the previous year [5]. Market Outlook - Meituan anticipates that the trend of operating losses will continue into Q4 2025, although there are indications that competition may ease as Alibaba plans to reduce its investment in flash sales [1][6]. - CEO Wang Xing emphasized that the ongoing price war in the food delivery sector is unsustainable and has not created value for the industry [7]. - Meituan maintains a strong market share, with over 70% of orders exceeding 30 RMB, indicating a solid position in the mid-to-high price segment [7].