Group 1 - The former General Manager of Meituan Retail, Wen Qin, has returned to Meituan to oversee the Keeta business in the Brazilian market after an 8-year absence [1] - Wen Qin previously held various positions at Meituan from 2010 to 2017, including roles during significant events such as the "Battle of a Thousand Groups" and the merger of Meituan and Dianping [1] - After leaving Meituan in 2017, Wen Qin worked at Together Education Technology as COO and returned to Meituan in October 2023 [1] Group 2 - Meituan's founder, Wang Xing, signed an investment agreement in May to invest $1 billion in Brazil over the next five years to develop its delivery service, Keeta [2] - Keeta is set to officially launch operations in Brazil on October 30, starting with pilot cities Santos and São Vicente in São Paulo state, having registered over 700 restaurant brands by mid-October [2] - The plan includes expanding Keeta to 15 metropolitan areas and covering 1,000 major cities within five years, with an aim to register 100,000 delivery riders by June 2026 [2]

Core Insights - Didi's core platform gross transaction value (GTV) reached 109.6 billion yuan in Q2 2025, with international business GTV at 27.1 billion yuan, reflecting a 27.7% year-on-year growth at fixed exchange rates [2] - Didi's 99Food launched in Brazil's Goiânia and achieved 1 million orders in 45 days, expanding to São Paulo, the largest city in Latin America [2][4] - Didi's international strategy began in 2018 with the acquisition of Brazilian ride-sharing company 99, now covering 14 countries, including 10 in Latin America [5] Business Expansion - Didi has over 55 million users in Brazil, covering a quarter of the population, with more than 1.5 million registered drivers, including 700,000 motorcycle riders [6] - The food delivery business is seen as a natural extension of Didi's urban service ecosystem, leveraging its large ride-hailing user base and driver resources [6] - Didi's experience in Mexico, where it became the leading food delivery service, is expected to bolster its confidence in expanding food delivery in Brazil [6] Market Potential - Latin America is one of the fastest-growing food delivery markets globally, with a growth rate of 19% in 2023, second only to the Middle East [7] - The food delivery market in Latin America is valued at approximately 37.9 billion USD, with Brazil and Mexico leading at around 20 billion USD and 7.2 billion USD, respectively [8] Competitive Landscape - Didi faces competition from iFood in Brazil, which holds an 80% market share, and has previously exited the Brazilian market in 2023 [8][9] - Didi's strategy includes localized competition, focusing on smaller cities before expanding to major urban areas [8][9] Operational Strategies - Didi is addressing high delivery costs and platform commissions in Brazil, which can reach 30% and 27% of order value, respectively [9][11] - The company is implementing various promotional measures, such as free delivery and discounts for users, guaranteed income for riders, and commission waivers for merchants [11] - Didi's unique advantage lies in its ability to utilize its ride-hailing network to reduce delivery costs, allowing riders to handle both passenger and food deliveries [12]

Summary of Meituan's Conference Call Industry Overview - Meituan is actively expanding into the Middle Eastern food delivery market, with a focus on Saudi Arabia and the UAE, which have a combined population of approximately 60 million [3][4] - The food delivery penetration rate in the Middle East is around 40%, with an annual per capita order volume of about $570, indicating a strong market potential [3][4] Key Insights and Arguments - Meituan has chosen Riyadh, Saudi Arabia, as its entry point due to its favorable geographic conditions and high consumer spending [3] - The competitive landscape in Saudi Arabia shows that Hunger Station holds a 45% market share, while Meituan has quickly captured 10% market share after entering, ranking first in app downloads [3][4] - The take rate in the Middle Eastern food delivery market is significantly higher than in China, generally exceeding 30%, with delivery fees accounting for about 20% and commissions ranging from 10% to 15% [3][8] - Meituan plans to replicate its successful Hong Kong strategy in Saudi Arabia by implementing low-price strategies and promotional activities to increase market penetration and order volume [3][11] - The potential profit margin for Meituan in Saudi Arabia is estimated to reach 8% to 12%, with a projected profit range of 4 billion to 11.5 billion RMB [3][11] Financial Projections - Meituan anticipates that its core local business profits will reach 62 billion RMB by 2025, with a net profit of approximately 55 billion RMB, leading to a valuation of 850 billion RMB based on a 15x P/E ratio [3][16] - Despite short-term losses from overseas investments, Meituan's long-term strategy is expected to yield positive returns and expand its overseas revenue and profit scale [3][16][17] Additional Insights - Meituan is developing its unmanned delivery business, having launched three drone routes in Shenzhen and completed 450,000 orders, with plans for further international expansion [3][12] - The cost savings from drone delivery could be significant, with operational costs potentially reduced to below 100,000 RMB, representing a 6 to 20 times savings compared to traditional delivery methods [3][13][15] - The company faces financial challenges, including projected losses of 9.3 billion RMB in 2025, primarily due to new business investments, but remains optimistic about its long-term profitability [3][16][17] Conclusion - Meituan's strategic expansion into the Middle Eastern market, combined with its innovative delivery solutions and strong management capabilities, positions it well for future growth and profitability, making it a noteworthy investment opportunity [3][17]