Core Viewpoint - Meituan's Q2 revenue increased by 11.7% year-on-year to approximately 91.84 billion RMB, while adjusted net profit decreased by 89% to about 1.49 billion RMB due to increased sales expenses driven by intense competition in the food delivery sector [2][4]. Financial Performance - Revenue for Q2 2025 was 91.84 billion RMB, up from 82.25 billion RMB in Q2 2024, marking an 11.7% increase [3]. - Adjusted EBITDA for Q2 2025 was approximately 2.78 billion RMB, a decrease of 81.5% compared to the previous year [3]. - Operating profit fell by 98% to 226.35 million RMB, with a significant decline in operating profit margin [3]. Business Segmentation - Revenue from Meituan's core local commerce segment grew by 7.7% year-on-year to 65.3 billion RMB, but operating profit dropped by 75.6% to 3.7 billion RMB, leading to a decrease in operating profit margin by 19.4 percentage points to 5.7% [4]. - New business revenue increased by 22.8% year-on-year to 26.5 billion RMB, but operating losses expanded by 43.1% to 1.9 billion RMB, with an improved loss rate of 7.1% [4]. Sales and Marketing Expenses - Sales and marketing expenses reached 22.5 billion RMB in Q2, up from 14.8 billion RMB in the same period last year, representing a 51.8% increase and accounting for 24.5% of total revenue, up from 18% [4][6]. - The increase in expenses is attributed to business development and adjustments in strategies to cope with fierce competition in food delivery and instant retail [7]. Strategic Initiatives - Meituan has initiated pilot programs for rider pension insurance subsidies in Nantong and Quanzhou, with plans to expand nationwide by the end of the year [7].

Core Insights - Meituan reported a revenue of 918.4 billion yuan for Q2, marking an 11.7% year-on-year increase [1] - Adjusted net profit for Q2 was 14.9 billion yuan, reflecting a significant decline of 89% compared to the previous year [1] Revenue Breakdown - The core local commerce segment generated revenue of 653 billion yuan in Q2, up 7.7% year-on-year [1] - Operating profit for this segment fell by 75.6% to 37 billion yuan, with an operating margin decrease of 19.4 percentage points to 5.7% [1] Expenses and Competition - Sales and marketing expenses rose by 51.8% from 148 billion yuan in Q2 2024 to 225 billion yuan in Q2 2025, accounting for 24.5% of revenue, an increase of 6.5 percentage points [1] - The increase in expenses is attributed to intensified competition in the food delivery and instant retail sectors, prompting adjustments in business strategies [1] Half-Year Performance - For the first half of the year, Meituan's revenue reached 1,784 billion yuan, a 14.7% year-on-year growth [1] - Adjusted net profit for the first half was 124.4 billion yuan, down 41% compared to the same period last year [1]