Meituan-W released its interim financial results, achieving a revenue of 155.27 billion yuan, a year-on-year increase of 22.87%

According to the financial report released by Meituan-W (03690) for the second quarter ending June 30, 2024, the group achieved revenue of RMB 82.251 billion, a year-on-year increase of 21.02%; net profit for the period was RMB 11.352 billion, a year-on-year increase of 142.1%; adjusted EBITDA under non-International Financial Reporting Standards was RMB 14.997 billion, a year-on-year increase of 95.2%.

In addition, the group's revenue for the first half of 2024 was RMB 155.527 billion, a year-on-year increase of 22.87%; net profit attributable to shareholders was RMB 16.72 billion, a year-on-year increase of 107.81%; basic earnings per share were RMB 2.7.

The announcement stated that in the second quarter of 2024, the revenue of the core local business segment increased by 18.5% year-on-year to RMB 60.7 billion. Operating profit increased by 36.8% year-on-year to RMB 15.2 billion, and the operating profit margin in the second quarter increased by 3.3 percentage points to 25.1% year-on-year.

In the second quarter, the group's instant delivery business continued to grow steadily, with operational efficiency further improving. In terms of food delivery, the group has effectively established a user perception of "fast" and "diverse" over the past few years. The group is more focused on improving operations in the shelf model and enhancing the group's cost-effective supply. The group's refined operations and strategies have further increased user stickiness, user base, and purchase frequency. On the supply side, the group actively explores new product forms to meet consumer demands, especially in the low-price segment. "Pinhao Fan" performed particularly well in the second quarter, with a peak daily order volume breaking through 8 million orders. The group continues to enhance its supply, helping users reduce the threshold for group orders, significantly increasing user retention and order frequency. By partnering with food brands, the group provides consumers with high-quality, cost-effective products. Pinhao Fan has become a new growth driver for many small and medium-sized businesses, helping chain restaurants improve efficiency and attract young consumers. In terms of food brands, the group continues to collaborate with more restaurants to expand "brand satellite stores," providing low-cost and high-quality options. Looking ahead, the group will further innovate its supply models, delve deeper into the supply chain, and continuously provide more cost-effective products.

In the second quarter of 2024, revenue from new business segments increased by 28.7% year-on-year to RMB 21.6 billion, while operating losses in the segment narrowed by 74.7% year-on-year to RMB 1.3 billion, with an operating loss rate improving by 8.7 percentage points to 6.1% quarter-on-quarter.

During the second quarter, the group improved the operational efficiency of Meituan Youxuan by enhancing product quality and strengthening cooperation with suppliers, thereby increasing the average price per item and the rate of product price increase. The group further strengthened its fulfillment capabilities, improved marketing efficiency, optimized resource allocation, resulting in significant reductions in losses both quarter-on-quarter and year-on-year. Xiaoxiang Supermarket also made significant progress in products, operations, and fulfillment, leading in growth and continuously improving efficiency. Other new businesses, including B2B catering supply chain services, catering management systems, shared bicycles, and power banks, all achieved healthy growth and efficiency improvements. These businesses help strengthen the group's entire ecosystem, increase consumer and merchant participation, and are expected to unlock more financial value in the future In the second quarter of 2024, the Group also achieved a net operating cash flow of RMB 19.1 billion. As of June 30, 2024, the Group held cash and cash equivalents of RMB 54.7 billion and short-term investments of RMB 78.5 billion