Core Viewpoint - The article discusses a significant corruption case involving a high-ranking executive at Ele.me, highlighting issues in supply chain management and corporate governance that allowed for the misconduct to occur [1][5]. Group 1: Corruption Case Details - The corruption case involved Han Liu, the former CEO of Ele.me, who, along with others, accepted bribes exceeding 40 million yuan from suppliers starting in July 2023 [1][2]. - The investigation revealed that Han Liu and his associates leveraged their control over logistics and supplier management to benefit bribing suppliers, creating a complete chain of interest transfer [2][4]. Group 2: Systemic Issues - The case raises questions about the systemic failures within Ele.me, particularly the concentration of power and lack of transparency in supplier selection criteria [3][4]. - The internal controls and anti-corruption mechanisms at Ele.me were found to be severely lacking, with a significant delay in detecting the corruption, which persisted for nearly two years [5][8]. Group 3: Implications for ESG - The incident has implications for ESG (Environmental, Social, and Governance) practices, indicating that the governance aspect is often overlooked, especially regarding the absolute power held by executives [5][6]. - The lack of a transparent compliance system for supplier management has been identified as a critical vulnerability that facilitated the corruption [5][8]. Group 4: Broader Industry Context - The article suggests that the flat management structure typical in internet companies may increase the risk of corruption, as it grants significant power to lower-level employees [10][11]. - The unique characteristics of internet companies, such as the anonymity and high turnover of digital resources, create additional challenges for traditional regulatory frameworks to detect corruption [10][11]. Group 5: Recommendations for Improvement - To combat corruption, companies should enhance their internal oversight mechanisms and consider separating powers to prevent the concentration of authority [12]. - Establishing a governance responsibility loop that includes problem detection, reporting, handling, and disclosure is essential for effective anti-corruption measures [12].

Group 1: Core Insights - Meituan's daily order volume for instant retail exceeded 120 million, with food delivery surpassing 100 million and Meituan Flash Purchase exceeding 20 million [1][2] - The company has increased its delivery subsidies in June, leading to an estimated 16% year-on-year decline in CLC operating profit, but food delivery order growth is expected to rise from mid-single digits to 10% [1][2] - Despite ongoing subsidy wars, Meituan is likely to maintain operational profit stability, with a target price of HKD 165, indicating a potential upside of 36.6% from the current price of HKD 120.80 [1][2] Group 2: Financial Projections - The average order value (AOV) may decline due to the subsidy competition, which could further slow revenue growth [2] - CLC revenue growth is projected to remain at 10% year-on-year, with profits expected to decrease by 9% [2] - The closure of Meituan Youxuan's loss-making areas could release approximately 3-4 billion yuan to support future delivery subsidies [2] Group 3: Market Position - Meituan continues to hold a leading position in the food delivery market, with strong operational capabilities and a high likelihood of maintaining market share [1][2] - The company’s operational and dispatch efficiency remains crucial for sustaining its market dominance [2]

Group 1 - The "Su Super" football league in Jiangsu is driving a significant increase in local food sales and consumption, with a competitive atmosphere emerging among cities [1][3] - Online food orders in Jiangsu have remained strong post-Duanwu Festival, with Meituan reporting that the province ranks second nationally in online dining orders, and Nanjing leading the province [3][4] - Specific food items have seen dramatic increases in demand, such as a 74% surge in searches for "salted duck" following a match victory, and a 58% increase in group purchase orders [3][4] Group 2 - The "Su Super" themed dining packages on Meituan have experienced a week-on-week order volume increase of over 400%, with searches for "watching football restaurants" rising nearly threefold [4] - Restaurants are capitalizing on the "Su Super" effect by offering special promotions and themed menus, such as the "I cheer for Su Super with Yangzhou fried rice" package priced at 88 yuan [3][4] - Local eateries are enhancing the match-day experience with live streaming and exclusive discounts for fans, creating a vibrant atmosphere around the events [4]

Investment Rating - The report maintains a "Buy" rating for Meituan with a target price of HKD 230 [2][4][32] Core Insights - In Q1 2025, Meituan's revenue reached RMB 86.6 billion, a year-on-year increase of 18.1%, with operating profit significantly rising to RMB 10.6 billion, up 102.8% year-on-year [3][9][25] - The core local commerce segment generated revenue of RMB 64.3 billion, reflecting a 17.8% year-on-year growth, while the operating profit for this segment was RMB 13.5 billion, up 39.1% year-on-year [4][14][22] - New business revenue grew by 19.2% year-on-year to RMB 22.2 billion, with operating losses narrowing to RMB 2.3 billion, improving the loss rate to 10.2% [4][22][25] Summary by Sections Financial Performance - Q1 2025 saw a significant increase in operating cash flow, amounting to RMB 10.1 billion, with cash and cash equivalents totaling RMB 115 billion and short-term investments at RMB 65.4 billion as of March 31, 2025 [3][10][25] - The gross margin improved to 37.45%, a 2.4 percentage point increase year-on-year, with operating profit margin at 12.2%, up 5.1 percentage points year-on-year [25][26] Business Segments - Core local commerce continues to grow, with a focus on enhancing user engagement and frequency through refined operations in the food delivery sector [4][15][18] - The new initiatives segment is expanding, with a focus on grocery retail and international market penetration, particularly in Hong Kong, Saudi Arabia, and plans for Brazil [22][23][24] Strategic Outlook - The CEO expressed strong confidence in the future of the food delivery and flash purchase businesses, emphasizing a commitment to winning the competitive landscape at all costs [4][32] - Meituan plans to maintain a disciplined approach to overseas expansion while controlling losses, with a focus on sustainable growth and operational efficiency [4][32]

Core Insights - The 2025 "Must-Eat List" by Dianping has been announced, featuring a total of 3,146 restaurants across 144 cities and regions, with significant increases in both domestic and international entries [1][2][3] - The list emphasizes local flavors and street food, with over 50% of the restaurants being non-chain establishments and nearly 40% being local eateries that have been in business for over 10 years [1][2] - The trend of "food tourism" is growing, with more than 60% of the cities on the 2024 list seeing over 50% of users coming from outside the area [1][3] Group 1 - The 2025 "Must-Eat List" includes 144 cities, with 116 domestic and 28 international locations, marking an increase of 10 domestic and 15 international cities compared to last year [1] - The list features over 1,700 new restaurants, highlighting keywords such as "local characteristics" and "freshly prepared," with nearly 80% of the restaurants having an average price below 100 yuan [1][2] - The inclusion of nearly 40 new street food vendors reflects a growing demand for diverse dining options, catering to food lovers seeking authentic local experiences [2] Group 2 - New cities like Jieyang, Quzhou, Linyi, and Baotou have emerged as popular destinations for food tourism, with over 40% of users coming from outside these areas [2] - The list showcases a rich variety of local food culture, with over 700 snack vendors included, breaking historical records for the number of small food establishments [2] - The 2025 list has expanded to include 15 new international cities, indicating a growing interest in global culinary experiences among users [3] Group 3 - Dianping's "Must-Eat List" is based on extensive user reviews, ensuring a fair and unbiased selection process that reflects genuine consumer preferences [3] - Since its inception in 2017, the list has become a trusted reference for diners and a catalyst for the growth of local food businesses, with a reported 50% increase in online traffic for new merchants after being listed [3]