

Summary of Meituan's Earnings Call Company Overview - Company: Meituan - Industry: On-demand delivery and local services Key Financial Metrics - Total Revenue: Increased by 11.7% year-on-year to 918 billion RMB [2][18] - Adjusted Net Profit: Decreased to 15 billion RMB, reflecting intense competition and unprecedented subsidy levels in the on-demand delivery sector [2][18] - Cost-to-Income Ratio: Increased by 8.1 percentage points to 66.9% [18] - Core Local Commerce Revenue: Grew by 7.7% to 653 billion RMB, with a gross margin decline to 57% due to increased incentives and a higher proportion of cash-on-delivery services [2][19] Business Segments Performance - Instant Delivery: Achieved a milestone with a peak order volume of 150 million in July, maintaining market leadership despite fierce competition [5] - Food Business: Attracted new users and strengthened core user loyalty, with plans to expand satellite stores from 5,500 to over 10,000 [6][7] - Grocery Retail Strategy: Accelerated the overseas expansion of the food brand "Shiwei" and explored new delivery models [16] - International Market: Strengthened position in Hong Kong and expanded operations in Saudi Arabia and Qatar, with plans to enter Brazil [17][33] Strategic Initiatives - AI Integration: Launched AI business assistants to enhance user experience and loyalty, guiding high-quality users to hotel and travel services [2][13] - Support for SMEs: Implemented the "100,000 Brands Program" to provide tailored support for 10,000 restaurants [8] - Employee Welfare: Expanded insurance coverage and established a 1.6 billion RMB fund for employee support [9] Market Position and Competitive Strategy - Response to Competition: Committed to providing quality products, reliable delivery, and reasonable pricing while optimizing supply chain efficiency [3][25] - Long-term Goals: Aiming to reach a Gross Merchandise Volume (GMV) of 10 billion by May 2033 [3][33] - Focus on Quality: Emphasized the importance of order quality alongside volume, with a long-term goal of achieving 100 million daily orders [24][22] Marketing and User Engagement - Promotional Activities: Successfully conducted the June 18 shopping festival, significantly boosting sales in high-value categories [29] - User Experience Enhancements: Improved shopping experience with a focus on fresh food quality and customer loyalty programs [27][28] Future Outlook - Growth Potential: Confident in the long-term growth of the instant shopping business, prioritizing growth over short-term profitability [30] - Retail Expansion Plans: Plans to expand the "Xiaoxiang" supermarket chain to cover all first- and second-tier cities, targeting a profit margin of around 3% [32] Conclusion - Overall Sentiment: Despite facing intense competition and challenges, Meituan remains focused on innovation, quality service, and strategic growth in both domestic and international markets, with a clear roadmap for future expansion and profitability [34]