Core Insights - Meituan reported a revenue of 95.5 billion RMB for Q3 2025, a 2% year-on-year increase, but faced a core local business operating loss of 14.1 billion RMB due to intensified competition [1][2][3] - The company emphasized prioritizing market scale, user engagement, and long-term competitiveness over short-term profits [1][3] Financial Performance - Revenue for Q3 2025 was 95.5 billion RMB, with a breakdown of core local business revenue at 67.4 billion RMB, including delivery service revenue of 23.0 billion RMB, commission revenue of 26.4 billion RMB, and online marketing service revenue of 14.2 billion RMB [2][4] - The operating loss for the core local business was 14.1 billion RMB, attributed to increased direct subsidies in the food delivery sector to counter irrational competition [3][4] User Engagement and Market Position - The number of transaction users on the platform exceeded 800 million in the past 12 months, with daily active users (DAU) growing over 20% year-on-year [1][5] - Meituan maintained a leading position in the mid-to-high price order market, capturing over 70% of orders above 30 RMB [5] New Business Growth - New business segment revenue grew by 15.9% year-on-year to 28 billion RMB, although operating losses increased by 24.5% to 1.3 billion RMB [6] - The company is expanding its international presence, with Keeta achieving profitability in Hong Kong and entering new markets in the Middle East and Brazil [6][7] Technological Advancements - Meituan is advancing its AI initiatives, launching tailored AI tools for restaurant businesses and a smart assistant app for users, aimed at enhancing operational efficiency and user experience [9] - The company plans to continue its "retail + technology" strategy to meet user needs and drive sustainable industry growth [9]

Core Viewpoint - Meituan reported its first quarterly loss in nearly three years, with an adjusted net loss of 16 billion RMB in Q3, compared to a profit of 12.8 billion RMB in the same period last year. The core local commerce business shifted from profit to loss, recording an operating loss of 14.1 billion RMB, down from a profit of 14.6 billion RMB year-on-year [1][3][6]. Financial Performance - In Q3, Meituan's revenue reached 95.5 billion RMB, a year-on-year increase of 2.0%, but below the estimated 97.5 billion RMB [6]. - The core local commerce segment's revenue decreased by 2.8% to 67.4 billion RMB, with an operating profit margin plummeting from 21.0% to -20.9% [7][10]. - The adjusted EBITDA for Q3 was a loss of 14.8 billion RMB, reflecting the financial strain on the company [5]. Market Competition - The company attributed its losses to intensified competition in the food delivery sector, leading to a 90.9% increase in sales and marketing expenses to 34.3 billion RMB, which now accounts for 35.9% of total revenue [9]. - Meituan anticipates that the trend of operating losses will continue into Q4 due to ongoing fierce competition with Alibaba and JD.com, both of which are heavily investing in discounts and subsidies [4][9]. New Business Growth - In contrast to the core business struggles, Meituan's new business segment saw a revenue increase of 15.9% to 28 billion RMB, driven by grocery retail and international expansion [10]. - Despite the growth, the new business segment reported an operating loss of 1.3 billion RMB, widening from 1 billion RMB the previous year, but the loss margin improved from 7.1% to 4.6% quarter-on-quarter [10]. Strategic Investments - The company is increasing its investment in artificial intelligence, with R&D expenses rising by 31.0% to 6.9 billion RMB, focusing on AI tools for merchants and user experience enhancements [12]. - Meituan is exploring entry into the Indian market, which is characterized by intense competition, indicating a strategic shift towards international markets [11][14]. Financial Position - As of the end of the quarter, Meituan held approximately 141.3 billion RMB in cash and cash equivalents, indicating a strong capital position despite the operational losses [13].