Core Insights - Meituan reported 3Q25 revenue of RMB95.5 billion, a 2% year-over-year increase but 2% below consensus expectations [1] - Core Local Commerce (CLC) revenue declined 2.8% year-over-year to RMB67.4 billion, while revenue from New Initiatives rose 16% year-over-year to RMB28 billion, slightly below the 17% consensus estimate [1] - CLC operating loss widened to RMB14.1 billion, exceeding the consensus loss of RMB13 billion, with an operating margin of -21% [1] - Management anticipates that CLC operating losses will narrow in 4Q25 despite elevated losses due to intensified competition [1] Food Delivery Segment - Competitive intensity in food delivery has eased since Singles' Day, allowing Meituan to recover market share in order value while maintaining leading GTV share [2] - The food delivery segment is expected to incur notable operating losses in 4Q25, depending on December competition levels [2] Instashopping and User Experience - Instashopping operating loss may slightly widen in 4Q25 due to increased investments in user experience during promotional campaigns [3] - Meituan launched Branded Flagship InstaMart, achieving over 300% year-over-year sales growth for partner brands during Singles' Day [3] In-Store, Hotel, and Travel (IHT) Business - Competition in the IHT sector is intensifying, with GTV growth moderating to 18% in 3Q25 [4] - Management expects IHT GTV margins to decline further in 4Q25 before normalizing toward the ~30% margin level [4] Technology and AI Innovations - Meituan is advancing its AI strategy with updates on AI models, chatbots, merchant tools, and internal efficiency improvements [5] Global Expansion of Keeta - Keeta turned profitable in Hong Kong in October 2025, with ongoing improvements expected [6] - Expansion in the Middle East and Brazil is underway, with management optimistic about replicating the Mainland China's food delivery experience [6] Market Share in High-AOV Orders - Meituan holds approximately 67% GTV share for orders above RMB15 and over 70% for orders above RMB30, indicating strong brand strength among high-value users [7] Valuation Metrics - Meituan trades at HK$102.5 per share, with a market cap of HK$626.4 billion, and consensus estimates for CY26 EBITDA at HK$44.7 billion, implying an 11.7x EV/EBITDA multiple [8] - The valuation premium has compressed due to heightened competition, but profitability is expected to recover as competitive pressure normalizes [9]

Core Viewpoint - The focus of the market debate regarding Meituan has shifted from "when will losses peak" to a deeper concern about "how much of Meituan's competitive moat remains" [1] Group 1: Financial Performance - Meituan's adjusted operating loss for Q3 was 17.5 billion RMB, better than Goldman Sachs' expectation of an 18.8 billion RMB loss [2] - The market's initial reaction was negative due to cautious comments about future performance, despite some positive signals [2] - The basic scenario suggests a 17% upside potential, with a target price of 120 HKD, reflecting concerns over long-term profitability [2] Group 2: Competitive Landscape - The market has shifted focus from short-term subsidy wars in the food delivery business to evaluating Meituan's defensive capabilities against strong competitors like Alibaba and Douyin [2][3] - Meituan's unit economics are superior, with an estimated loss of 2.6 RMB per order compared to Alibaba's 5.2 RMB per order [3][6] - The competition is expected to intensify, with concerns that if rivals continue to invest heavily, Meituan's profit margins could be pressured [2][6] Group 3: Future Scenarios - The optimistic scenario suggests a potential price target of 152 HKD, contingent on verifying several conditions [4] - The pessimistic scenario indicates a potential drop to 77 HKD due to ongoing competitive pressures and losses [4] - Meituan's strong cash position allows it to endure prolonged competition, while rivals may face significant financial strain [6] Group 4: Market Dynamics - Meituan's market share is expected to recover as irrational subsidy wars normalize, allowing it to regain lost market share in low-ticket orders [3] - The long-term EBIT expectation for Meituan's food delivery business has been revised down from 0.8 RMB to 0.7 RMB per order due to increased competition [3] - The long-term profit margin expectation for the in-store, hotel, and tourism (IHT) business has been reduced from 30% to 27% due to competitive pressures from Douyin and Gaode Map [3]

在美团公布 2025 年 3 季度业绩后，我们持谨慎态度，认为投资者应 保持观望，同时密切关注三个关键领域的进展：外卖领域的竞争、到 店业务利润率的可持续性以及海外扩张的执行情况。这些业务均面临 显著不确定性——从外卖领域补贴大战的激烈程度和持续时间，到到 店业务利润率企稳的速度，再到海外投资的资本密集度和回报周期— —这些因素共同削弱了财务能见度，并加剧了盈利波动风险。我们将 2025 年 4 季度盈利预测下调 31%，以反映到店业务盈利能力下降； 同时我们认为该股的估值上行空间有限，直至有更明确的证据表明其 利润率走势的可预测性增强、核心外卖业务的竞争趋于理性，以及海 外扩张节奏更加审慎。 在外卖领域，我们认可美团仍在中高价订单市场占据主导地位，但需 注意的是，该领先地位正面临日益激烈的竞争环境，尤其是来自阿里 的竞争。我们认为，阿里巴巴逐步抢占此类高价值及高频消费用户心 智的风险正在上升，继而或将在中长期引发消费者钱包份额从美团向 外迁移。我们认为，这一风险解释了美团近期加大会员权益投入的举 措，我们认为这是其捍卫和深化其核心用户群忠诚度的战略部署，而 非简单的促销策略。我们还强调，阿里巴巴同时也在持续 ...

Summary of Meituan's Q3 2025 Earnings Call Company Overview - **Company**: Meituan - **Date**: Q3 2025 Earnings Call Key Points Financial Performance - Total revenue for Q3 2025 increased by 2% year-on-year to **RMB 95.5 billion** [2][11] - Cost-to-revenue ratio rose by **12.9 percentage points** to **73.6%**, primarily due to increased rider incentives and overseas business costs [2][11] - Sales and marketing expenses increased by **16.7 percentage points** to **35.9%** [2][11] - R&D expenses slightly increased to **7.3%** of total revenue [2][11] - Instant delivery segment reported a loss of **RMB 1.5 billion** [2][11] - As of September 30, 2025, the company held cash and cash equivalents totaling **RMB 141.3 billion** [2][11] User Engagement and Growth - Daily active users on Meituan's app grew by over **20%** year-on-year, with top users engaging daily across all local business sectors [2][20] - The company upgraded its membership system to enhance sales activities and user retention [2][20] Business Segments Performance - **Instant Delivery**: Continued rapid growth with increased new user acquisition and purchase frequency [2][7] - **In-store Business**: Achieved record profit levels and user scale, with nearly **20%** year-on-year growth [2][8] - **Instant Shopping**: Collaborated with leading brands to launch flagship stores, enhancing supply chain capabilities [2][7] Competitive Landscape - The company opposes price wars in food delivery, emphasizing sustainable competition and support for small and medium-sized businesses [2][12] - Industry subsidies have decreased compared to the summer peak, particularly post the Double Eleven shopping festival [2][12] - Meituan maintains a leading market share in mid-to-high-end orders, capturing over **70%** of orders priced above **RMB 30** [2][12] AI and Technology Integration - Meituan is enhancing its AI capabilities, integrating large language models into core applications to support long-term strategic growth [2][17] - AI tools like "Kangaroo Advisor" and "Smart Steward" are being utilized to improve restaurant operations and customer service [2][17] International Expansion - Progress in the Hong Kong market with the Kun Da Hotel achieving profitability two years ahead of schedule [2][18] - Expansion into Gulf Cooperation Council (GCC) countries and Brazil, with significant potential for online penetration [2][19][36] Future Outlook - The company expects that losses in new initiatives will not exceed those of 2025, with gradual improvement in profitability anticipated [2][19] - Meituan aims to leverage its technological advantages and operational efficiencies to maintain market leadership and drive sustainable growth [2][37] Challenges and Strategic Responses - The company acknowledges the challenges posed by increased competition and is focused on enhancing service quality and operational efficiency [2][28] - Meituan plans to continue investing in supply chain operations and user education to maintain its competitive edge [2][31] Additional Insights - Meituan's extensive user review ecosystem, with over **25 billion** reviews, is a key factor in consumer trust and platform preference [2][33] - The company is committed to optimizing its merchant ecosystem and enhancing consumer experiences through innovative solutions [2][34] This summary encapsulates the critical insights from Meituan's Q3 2025 earnings call, highlighting financial performance, user engagement, competitive strategies, and future growth prospects.

Core Insights - Both Alibaba and Meituan reported significant losses in their recent Q3 financial results, indicating a fierce competitive landscape in the Chinese e-commerce and food delivery markets [2][3] - Alibaba's adjusted EBITA dropped from 443 billion RMB to 105 billion RMB year-on-year, while Meituan's revenue was 955 billion RMB with an operating loss of 141 billion RMB and an adjusted net loss of 160.1 billion RMB, compared to a net profit of 128.29 billion RMB in the same period last year [2][3] - The cash burn for both companies exceeded 300 billion RMB in Q3, with Alibaba's cash reserves allowing for a lower percentage of cash burn compared to Meituan, highlighting an asymmetrical battle [2][3] Financial Performance - Alibaba's Q3 revenue for its China e-commerce group was 114.77 billion RMB, a 16% increase year-on-year, while Meituan's revenue was 955 billion RMB, reflecting the ongoing competition in the market [7] - The adjusted net loss for Meituan in Q3 was 160.1 billion RMB, a stark contrast to the previous year's adjusted net profit of 128.29 billion RMB [2][3] Market Dynamics - The market share for food delivery services has not reverted to previous levels despite the cessation of subsidies, indicating a shift in consumer behavior and market dynamics [3] - The competitive landscape is evolving, with new players like Douyin (TikTok) entering the local commerce space, further intensifying the competition [3] Strategic Developments - Alibaba's strategy has shifted towards a more focused approach, consolidating its resources under the "all in one" strategy, which aims to enhance operational efficiency and user engagement [8] - The company is actively investing in its instant retail segment, with a clear roadmap to expand scale, improve efficiency, and optimize product offerings [15][17] User Behavior Changes - The concept of "good loss" is emerging, where losses are seen as investments in long-term user habits and market positioning, similar to Amazon's strategy during its growth phase [9][10] - Instant retail is expected to create irreversible changes in consumer habits, with Alibaba's efforts in this area driving significant increases in active users and revenue growth [12][14] Competitive Outlook - The ongoing battle between Alibaba and Meituan is characterized by aggressive strategies from both sides, with Alibaba's investments in instant retail putting pressure on Meituan's market share and profitability [17] - The competition is likely to remain intense, with both companies adapting to the evolving market landscape and consumer preferences [17]

Core Insights - Dazhong Dianping is accelerating its overseas expansion in the local lifestyle sector, particularly in Thailand, to enhance the travel experience for Chinese tourists [1][2] Group 1: Strategic Partnerships and Expansion - Dazhong Dianping has upgraded its collaboration with the Thailand Small and Medium Enterprises Promotion Office to provide accurate and timely merchant information for Chinese tourists [1] - The platform aims to establish itself as a model for Chinese local lifestyle platforms going global, with Thailand as a strategic base for future collaborations with foreign destinations [1][6] - The company has already covered nearly 200,000 points of interest (POIs) in Thailand and partnered with thousands of merchants to offer services like vouchers and group purchases [5] Group 2: User Engagement and Experience - In 2023, Dazhong Dianping recorded 2.6 million visits to its Thailand city sites, with approximately 40% of tourists using the platform to explore local experiences [3] - The platform emphasizes the importance of accurate and timely information, as user trust can be significantly impacted by incorrect data [4] - Dazhong Dianping's user-generated reviews have become a valuable asset for global merchants, enhancing their online reputation [5] Group 3: Market Trends and Future Outlook - The company is focusing on deepening its presence in 100 overseas cities, anticipating the travel patterns of Chinese tourists and preparing information infrastructure in advance [6][7] - Dazhong Dianping's overseas team has established city sites in over 200 countries and 1,000 cities, with a goal to cover 95% of popular outbound travel destinations for Chinese citizens [6] - The collaboration with the Thailand Small and Medium Enterprises Promotion Office aims to connect local businesses with a larger consumer base without relying on traditional advertising [8]

Core Insights - The intense competition in the food delivery sector has led to significant losses for Meituan, with a reported operating loss of 141 billion RMB in its core local business for Q3 2025, resulting in an adjusted net loss of 160.10 billion RMB compared to a profit of 128.29 billion RMB in the same period last year [1][2][3] Group 1: Financial Performance - Meituan's total revenue for Q3 2025 reached 955 billion RMB, marking a year-on-year growth of 2% [1] - The core local business segment generated revenue of 674 billion RMB, a decrease of 2.8% year-on-year [2] - The new business segment saw a revenue increase of 15.9% to 280 billion RMB, although operating losses in this segment grew by 24.5% to 13 billion RMB [3] Group 2: Competitive Landscape - The food delivery market has become increasingly competitive, with new entrants like JD and Taobao disrupting the long-standing duopoly of Meituan and Ele.me [2] - Meituan has responded to this competition by increasing direct subsidies to the restaurant sector, contributing to its significant losses [2][3] Group 3: Strategic Initiatives - Meituan is focusing on enhancing its core competitiveness and maintaining its industry leadership through a "retail + technology" strategy [1] - The company has invested 69 billion RMB in R&D, a 31% increase year-on-year, with a focus on AI and technology innovations [4][5] - Meituan is also expanding its ecosystem by providing various benefits to delivery riders, including health insurance and housing support [5] Group 4: Future Outlook - The company anticipates that the trend of operating losses will continue into Q4 2025 due to ongoing market competition [3] - Meituan's CFO expressed confidence in the long-term growth of its various business segments, emphasizing continued investment in service quality and technological innovation [6]

Core Insights - Meituan reported Q3 2025 earnings with revenue of 95.5 billion RMB, a year-on-year growth of 2% [1] - Due to intensified industry competition, the core local business operating profit turned negative, resulting in a loss of 14.1 billion RMB [1] - The number of transacting users over the past 12 months exceeded 800 million [1] Revenue and User Metrics - In Q3, Meituan increased its financial investment to enhance service quality and promote healthy industry development [1] - The Daily Active Users (DAU) of the Meituan app grew by over 20% year-on-year [1] - Monthly transacting users for food delivery reached a historical high [1] Investment and Ecosystem Development - Meituan continued to invest in ecosystem development to build a sustainable industry health ecosystem [1] - The rider pension insurance subsidy was officially expanded to cover all riders nationwide [1] - R&D investment in Q3 amounted to 6.9 billion RMB, representing a year-on-year increase of 31% [1]

Financial Data and Key Metrics Changes - Total revenue increased by 2% year-over-year to RMB 95.5 billion in Q3 2025 [19] - Cost-of-revenue ratio increased by 12.9 percentage points year-over-year to 73.6% due to higher courier incentives and increased overseas operational costs [19] - Selling and marketing expenses ratio increased by 16.7 percentage points year-over-year to 35.9% driven by increased investments in promotion and user incentives [19] - Adjusted net loss was RMB 16 billion, with a total segment operating loss of RMB 15.3 billion [20] Business Line Data and Key Metrics Changes - Food delivery business saw both DAU and MTU reach all-time highs, with a significant increase in user engagement [7] - The in-store business experienced nearly 20% year-over-year growth in both merchant and user bases, with increased transaction frequency [11] - New initiative segment revenue grew by 15.9% year-over-year to RMB 28 billion, driven by grocery retail and overseas business expansion [23] Market Data and Key Metrics Changes - The competitive landscape in food delivery has intensified, with a noted decrease in industry subsidies post-peak season [29] - Meituan maintained a leading position in GTV market share for mid to high AOV orders, with over 70% market share for orders above RMB 30 [29] - The company expanded its presence in the Middle East and Brazil, with Keeta achieving profitability in Hong Kong ahead of schedule [60][63] Company Strategy and Development Direction - The company is focused on enhancing service quality and operational efficiency while avoiding price wars [28][32] - Meituan aims to leverage technology and AI to empower merchants and improve user experience [18][56] - The strategy includes expanding the Meituan membership program to increase user engagement and transaction frequency [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the competitive landscape and emphasized the importance of sustainable growth over aggressive subsidies [24][32] - The company anticipates that irrational competition will transition to a more rational phase, focusing on quality and innovation [34] - Long-term targets remain unchanged, with a goal of reaching 100 million high-quality daily orders [34] Other Important Information - The company has committed an additional RMB 2 billion in merchant support funds to empower restaurant partners [22] - Investments in AI have led to the development of various tools aimed at enhancing operational efficiency for merchants [17][55] Q&A Session Summary Question: Changes in the competitive landscape of food delivery - Management noted a decrease in industry subsidies and highlighted the importance of focusing on higher AOV sectors to maintain market share [29][30] Question: Strategy for Meituan Instant Shopping - Management emphasized the competitive edge in Quick Commerce and plans to continue investing in supply-side operations while enhancing user experience [41][42] Question: Impact of new initiatives on in-store business - Management highlighted the unique operational strategy and consumer trust built over time, asserting confidence in maintaining market leadership despite competition [46][49] Question: Progress of AI initiatives - Management shared ongoing developments in AI capabilities and plans to integrate AI agents into the Meituan App for enhanced user experience [55][56] Question: Performance of Keeta in new markets - Management confirmed Keeta's profitability in Hong Kong and expressed optimism for similar trajectories in other markets, including the GCC and Brazil [60][63]

Financial Data and Key Metrics Changes - Total revenue increased by 2% year-over-year to RMB 95.5 billion in Q3 2025 [17] - Cost-of-revenue ratio increased by 12.9 percentage points year-over-year to 73.6%, primarily due to higher courier incentives and increased overseas operational costs [18] - Selling and marketing expenses ratio increased by 16.7 percentage points year-over-year to 35.9% due to higher investments in promotion and user incentives [18] - Adjusted net loss for the quarter was RMB 16 billion, with a total segment operating loss of RMB 15.3 billion [18] Business Line Data and Key Metrics Changes - Food delivery business saw both DAU and MTU reach all-time highs, with a significant increase in user engagement [6] - The in-store business experienced nearly 20% year-over-year growth in both merchant and user bases, with increased transaction frequency [11] - New initiative segment revenue grew by 15.9% year-over-year to RMB 28 billion, driven by grocery retail and overseas business expansion [22] Market Data and Key Metrics Changes - The competitive landscape in food delivery has intensified, leading to a drop in average order value and negative growth in delivery service revenue [19] - The company maintained a leading position in GTV market share for mid to high AOV orders, with over two-thirds market share for orders above RMB 15 [26] - The company reported a rebound in market share in order volume, particularly in high-quality incremental orders [28] Company Strategy and Development Direction - The company is focused on maintaining leadership in the food delivery sector while investing in technology and service quality to drive sustainable growth [31] - The strategy includes enhancing the Meituan membership program to boost user engagement and transaction frequency [15] - The company aims to leverage its strengths in service quality and operational efficiency to navigate a dynamic competitive environment [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the food delivery market despite current losses, emphasizing a shift from capital-driven to efficiency-driven growth [30] - The company is committed to supporting small and mid-sized merchants and enhancing courier welfare as part of its long-term strategy [25] - Management noted that irrational competition is expected to transition to a more rational phase, allowing for sustainable growth [31] Other Important Information - The company has expanded its courier welfare program, including pension insurance and educational funds for couriers' children [7] - The Meituan Instant Shopping segment is positioned to lead rapid growth in the quick commerce space, with new user growth and purchase frequency increasing [9] - The company has launched several AI initiatives to enhance operational efficiency and improve user experience [16] Q&A Session Summary Question: Changes in the competitive landscape of food delivery - Management noted that competition has intensified, with a temporary decrease in industry subsidies and a focus on higher AOV sectors [26][28] Question: Strategy for Meituan Instant Shopping - Management highlighted the competitive edge in Quick Commerce and plans to deepen partnerships with brands while investing in supply-side operations [32][36] Question: Impact of new initiatives on profitability - Management confirmed that Keeta in Hong Kong has turned profitable ahead of schedule and expects similar trajectories in other markets [46][49] Question: Future plans for AI integration - Management discussed ongoing AI developments, including the integration of AI agents into the Meituan App to enhance user experience [44][45]