Ge Long Hui·2025-12-01 07:21Core Insights - The article discusses the intense competition in the food delivery and instant retail sectors, highlighting Meituan's financial performance in Q3, which shows a revenue of 95.5 billion yuan, a 2% year-on-year increase, but a significant adjusted net loss of 16 billion yuan, with core local business shifting from profit to a loss of 14.1 billion yuan [1][3][5] Financial Performance - Meituan's total revenue increased from 93.6 billion yuan to 95.5 billion yuan year-on-year, while core local business revenue slightly declined from 69.4 billion yuan to 67.4 billion yuan [3] - The cost of sales surged from 56.8 billion yuan to 70.3 billion yuan, accounting for 73.6% of revenue, while sales and marketing expenses nearly doubled from 18 billion yuan to 34.3 billion yuan, representing 35.9% of revenue [1][3] Competitive Landscape - Meituan's significant losses reflect the fierce competition, with competitors reportedly investing hundreds of billions in subsidies [1] - Despite the losses, Meituan managed to maintain approximately 60% of the industry order GTV share, showcasing a high "battle loss ratio" compared to competitors [3][4] User Engagement and Market Position - Meituan's app daily active users (DAU) grew over 20% year-on-year, with transaction users exceeding 800 million, indicating increased user engagement despite financial losses [3] - The company holds over two-thirds of the market share for orders above 15 yuan and over 70% for orders above 30 yuan, indicating a focus on high-value transactions rather than low-price promotions [4] Long-term Strategy and Investments - Meituan is investing in long-term initiatives such as rider benefits and tools for merchants to enhance operational efficiency, which may compress short-term profits but strengthen the business model [2][7] - The company is also focusing on efficiency optimization, with R&D spending increasing by 31% to 6.9 billion yuan, representing 7.3% of revenue [7] New Business Growth - New business revenue grew by 15.9% year-on-year to 28 billion yuan, with operating losses narrowing to 1.3 billion yuan, indicating improved operational efficiency in grocery retail and international expansion [12] - The instant retail segment, particularly Meituan's flash purchase service, is evolving towards brand-focused and structural upgrades, enhancing its commercial value [12][13] International Expansion - Meituan's international arm, Keeta, is expanding into the Middle East and Latin America, with operations in Qatar, Kuwait, UAE, and Brazil, indicating a strategic move towards global market penetration [13] Conclusion - The Q3 report reflects a challenging yet strategic phase for Meituan, balancing short-term losses with long-term investments in user retention, operational efficiency, and international growth, positioning itself for future profitability in a low-margin industry [16][17]