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][21] - Cash generated from operating activities turned negative at RMB 22.1 billion due to intensified competition investments [21] Business Line Data and Key Metrics Changes - Food delivery business saw a decline in average order value due to intensified competition, impacting commission revenue growth [21] - Both Daily Active Users (DAU) and Monthly Transacting Users (MTU) for food delivery hit an all-time high [7] - New user growth and core user purchase frequency for Meituan Instant Shopping increased in Q3 [8] - In-store business experienced nearly 20% year-over-year increase in both merchant and user base [11] Market Data and Key Metrics Changes - GTV market share for orders with a net AOV above RMB 15 is more than two-thirds, while above RMB 30 is over 70% [29] - The grocery retail segment revenue grew by 15.9% year-over-year to RMB 28 billion [23] Company Strategy and Development Direction - Company aims to maintain leadership in food delivery and quick commerce through technology and service quality improvements [18] - Focus on high-quality selections and sustainable growth rather than engaging in price wars [32] - Expansion into new markets like Brazil and GCC countries is part of the long-term strategy [64] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic competitive environment and emphasized the importance of service quality and operational efficiency [24] - The competitive landscape is expected to transition from capital-driven to efficiency-driven and ultimately to innovation-driven [32] - Long-term target remains to reach 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] - The Meituan membership program has been enhanced to drive user engagement and transaction frequency [16] Q&A Session Summary Question: Changes in the competitive landscape of food delivery - Management noted a temporary decrease in industry subsidies and highlighted a rebound in market share for order volume [29] Question: Competitive edge in Quick Commerce - Management emphasized strong competitive advantages in Quick Commerce through native supply and infrastructure upgrades [38] 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 [57][64]