Group 1: Financial Performance - The company's AI comprehensive service revenue increased to 208 million in 2024, with a significant growth of 86% in Q4 of the previous year, achieving profitability [1][4] - In Q1 2025, the AI comprehensive service revenue showed a year-on-year increase, although the company experienced a loss [4][8] - The gross margin for AI comprehensive services in 2024 was 20.70% [4] Group 2: AI Business Development - The company aims to enhance its AI Agent capabilities, focusing on multi-task and complex task agents, with existing orders already in place [2] - The AI Agent product line includes various applications such as intelligent customer service agents and intelligent credit agents, enhancing operational efficiency in banking [2] - The company has developed a global distribution platform for AI content, including micro-short films, although these products currently contribute a small percentage to overall revenue [3] Group 3: Research and Development - R&D expenses for Q1 2025 were 46.47 million, a 22.77% increase from 37.85 million in the same period last year [8] - The primary focus of R&D investments includes multi-modal applications, AI Agents, and large language models [8] - The company has established a comprehensive AI service framework, covering computational infrastructure, algorithms, and multi-modal applications [7] Group 4: Strategic Partnerships - The company collaborates with Alibaba Cloud as a partner and service provider for AI large model frameworks, enhancing its capabilities in the financial sector [6] - It has formed extensive partnerships with leading enterprises in the AI field, promoting the application of AI technologies across various industries [7]

Investment Rating - The report maintains a "Buy" recommendation for Meituan-W (3690.HK) [8] Core Insights - Meituan's core business shows robust growth, with local commerce revenue reaching 656 billion CNY, a year-on-year increase of 18.9%, and operating profit rising by 60.9% to 129 billion CNY [4][6] - The instant retail sector in China is undergoing a technological transformation, with the order volume expected to reach 482.8 billion orders in 2024, reflecting a 17.6% year-on-year growth [4] - The company is focusing on AI and autonomous delivery technologies, with a planned capital expenditure shift towards AI in 2025 [7][8] Summary by Sections Instant Retail Growth - The instant delivery industry in China is projected to exceed 1 trillion orders by 2030, maintaining an average annual growth rate of 13.1% over the next six years [4] - Autonomous delivery methods are being implemented to reduce labor costs and enhance efficiency, with successful trials of autonomous vehicles and drones in various regions [4] Core Business Performance - The local commerce segment's revenue growth is driven by synergies between food delivery, flash purchase, and in-store services, with peak daily orders reaching 98 million [4] - New business revenue increased by 23.5% to 229 billion CNY, with operating losses narrowing to 22 billion CNY, resulting in a loss rate improvement to 9.6% [6] AI Strategy - Meituan's AI strategy focuses on three core areas: internal efficiency, product intelligence upgrades, and self-developed large models [7] - The company plans to launch an AI-native product called "Life Assistant" to integrate digital services with physical consumption scenarios [7] Investment Outlook - The report suggests that Meituan is well-positioned for continued growth in the AI sector and instant retail market, making it a compelling investment opportunity [8]