Sou Hu Cai Jing·2025-11-29 06:07Core Viewpoint - Meituan's competitive moat has been severely eroded, as evidenced by its disappointing Q3 2025 earnings report, which showed a revenue of 95.5 billion RMB, a 2% year-on-year increase, falling short of Bloomberg's expected 4% growth, and an adjusted net loss of 16.01 billion RMB, exceeding the expected 13.8 billion RMB loss [1][2][3] Financial Performance - In Q3 2025, Meituan reported a revenue of 95.5 billion RMB, with a year-on-year increase of 2% [2] - The adjusted net loss for the quarter was 16.01 billion RMB, significantly higher than the previous year's adjusted net profit of 12.8 billion RMB, indicating a nearly 30 billion RMB impact on net profit [2][3] - Operating loss for the core local business segment reached 14.1 billion RMB, with an operating loss margin of 20.9% [8] Cost and Investment Analysis - Meituan's sales costs and marketing expenses increased by 29.8 billion RMB compared to the same quarter last year, aligning closely with the 30 billion RMB decrease in profit [3] - The core local business segment's revenue decreased by 2.8%, indicating challenges in maintaining market share despite increased spending [8] Market Share and Competition - Meituan's market share in food delivery has dropped from over 75% at the beginning of the year to approximately 50% as of November, according to estimates from JPMorgan [3][12] - The competitive landscape has intensified, with Alibaba's market share rising to 42%, while Meituan's share has declined [12] Strategic Responses - Meituan's CEO expressed optimism about the long-term sustainability of the business model, despite acknowledging ongoing losses due to competition [4][19] - The company plans to invest an additional 2.8 billion RMB to support merchant development and enhance service quality [18] Market Sentiment - The market has reacted negatively to Meituan's Q3 results, with the company's stock price under pressure, reflecting a year-to-date decline of over 32% [6][16] - Analysts predict that Meituan's stock will continue to face downward pressure following the earnings report [7][16]