Meituan releases 2024 Q2 financial report: Diversified supply focusing on quality and price ratio, quarterly revenue of 82.3 billion RMB

On August 28, Meituan (03690) released its 2024 second quarter and half-year performance report. In the second quarter of this year, Meituan achieved a revenue of RMB 82.3 billion, maintaining stable growth.

The current consumption trend emphasizes diversity, speed, quality, and cost-effectiveness. Meituan has made significant progress in helping local retail entities digitize. This quarter, Meituan reached a historical high in annual active users and merchants, with instant delivery orders reaching 6.2 billion.

Behind the trend of instant retail becoming a new consumer trend lies the hard work of delivery riders and support from all parties. Meituan is actively exploring convenient passage solutions and setting up rest stops with local communities, local businesses, and logistics companies to further optimize the delivery environment for riders and enhance rider care. As of mid-August, Meituan's "Rider-Friendly Community" has covered more than 20 cities and partnered with tens of thousands of local stores to establish "Rider-Friendly Merchants."

"This quarter, the local commercial market has further unleashed tremendous growth potential, and all our businesses have achieved healthy growth," said Meituan CEO Wang Xing. "As a leading technology retail company, Meituan will continue to provide consumers with more cost-effective product choices, more efficient instant delivery services, and firmly support the digitalization and intelligence of a wide range of merchants. We aim to use technology to enhance the efficiency of local businesses, help everyone eat better and live better."

Focus on Cost-Effectiveness, Diverse Supply to Meet User Needs

In the second quarter, Meituan's core local business achieved steady growth, with quarterly revenue reaching RMB 60.7 billion.

Meituan continues to optimize its platform supply, driven by both online shelf models and innovative products, better meeting the cost-effectiveness needs of users in different price ranges. The annual average transaction frequency of annual transaction users has continued to grow steadily for 15 quarters since mid-2020.

The "Super Member" service that integrates food, drink, entertainment, and leisure services was piloted this quarter and achieved full coverage of various consumption scenarios in July. By early July, the number of businesses participating in the "Super Member" program had reached 5 million.

This quarter, Meituan's group buying expanded to more cost-effective products and service categories. Stimulated by numerous holiday consumption and marketing activities in the second quarter, consumers' brand awareness of "Meituan Group Buying, More Stores, More Savings" significantly increased. Among them, the GTV and order volume of leisure and entertainment products achieved double-digit growth year-on-year.

Meituan's Flash Purchase continued to expand its high-quality supply, partnering with more fast-moving consumer goods, clothing, alcohol, and beverage retail brands this quarter to meet the immediate needs of more consumers in different scenarios such as holidays, travel, and camping activities. As a result, the annual transaction user and average transaction frequency of Meituan's Flash Purchase once again achieved steady growth, with the innovative model of alcohol retail "Waima Songjiu" achieving strong GTV growth this quarter.

Deepening the Supply Side, Digitization Helps Improve Merchant Efficiency

This quarter, in order to support the digital capabilities of various retail entities, Meituan continuously improved its products and services for merchants. While meeting consumer cost-effectiveness needs, this also drove improvements in merchant operational efficiency and scale benefits.

Meituan's "Brand Satellite Stores" for food delivery welcomed brands such as Laoxiangji and Haidilao this quarter, providing more merchants with services such as commission rebates, traffic support, and operational guidance By the end of June, 120 brands across the country have opened over 800 satellite stores.

Meituan's Flash Warehouse provides online operations, pricing strategies, traffic support, and fulfillment services to help merchants improve efficiency and expand to more regions this quarter. Meituan Health also launched a new digital solution "HEALTH" in August, aiming to help pharmaceutical companies build brand influence and help pharmacies improve service efficiency. In addition, Meituan Health's online medical insurance drug purchase service has been launched in several cities such as Beijing, Shanghai, Shenzhen, Guangzhou, and Qingdao, covering dozens of chain pharmacy brands.

Benefiting from the arrival of the traditional peak consumption season, the in-store wine and travel business achieved steady growth again, with orders increasing by over 60% year-on-year, annual transaction users increasing by nearly 35% year-on-year, and the number of active merchants reaching a new high.

In the second quarter, Dianping released the "Must-Eat List" for 2024, with nearly half of the nearly 2,800 restaurants being city-specific restaurants, and 46% being local small eateries. Meituan continues to discover more hidden gems with users, while supporting the growth of listed catering merchants, giving "small businesses a big stage."

Meituan CFO Chen Shaohui stated: "In the first half of this year, the local business sector represented by 'eating, staying, traveling, shopping, and entertainment' benefited from the traditional peak consumption season. Meituan fully leveraged its overall advantages at both ends of supply and demand, meeting more new demands with more diverse supply. In the future, Meituan will continue to focus on the 'Retail + Technology' strategy, promote the digital upgrade of the retail industry, and create value for the industry upstream and downstream."