Core Insights - The intense competition in the instant delivery industry has raised concerns about the impact on Meituan, which holds a dominant market position [1] - Meituan reported Q2 revenue of 91.8 billion RMB, a year-on-year increase of 11.7%, but adjusted net profit fell by 89% to 1.49 billion RMB [1] - CEO Wang Xing emphasized the company's commitment to maintaining its market position despite increasing competition [1] Financial Performance - Meituan's core local commerce segment saw revenue growth of 7.7% to 65.3 billion RMB, but operating profit margin dropped into single digits due to significant increases in sales and marketing expenses [4] - The new business segment generated revenue of 26.5 billion RMB, a year-on-year increase of 22.8%, with losses narrowing to 1.9 billion RMB [7] User Engagement and Growth - The monthly active users of Meituan's app surpassed 500 million, with annual transaction frequency reaching a historical high [1] - In July, Meituan's instant retail daily order volume peaked at over 150 million, with an average delivery time of 34 minutes [1] Strategic Focus - Meituan's strategy revolves around enhancing user experience through a "30-minute delivery" promise, expanding beyond food delivery to a broader retail scope [4] - The company has established over 50,000 flash warehouses nationwide, aiding local stores in digital transformation and improving operational efficiency [5] Ecosystem and Technology - Meituan is building a robust ecosystem by focusing on high-frequency scenarios, supply-side empowerment, and operational efficiency [8] - The company has invested 6.3 billion RMB in R&D in Q2, a year-on-year increase of 17.2%, to enhance technological innovation and ecosystem development [10] Market Positioning - Meituan's approach contrasts with competitors focused on short-term subsidies, emphasizing long-term sustainable growth and operational efficiency [2][8] - The company is expanding internationally, with its Keeta business entering markets in the Middle East and Latin America [6] Conclusion - Meituan's long-term strategy and commitment to ecosystem building position it well in the local life services sector, which is characterized by high-frequency demand and resilience against economic fluctuations [2][12]