Meituan conference call: Huge potential for local business digital transformation, confident in long-term growth

On August 28, Meituan released its second quarter and half-year performance report for 2024. In the second quarter of this year, Meituan achieved a revenue of 82.3 billion RMB. The current consumption trend is shifting towards diversity, speed, quality, and cost-effectiveness, coupled with the seasonal factors of the traditional consumption peak season, Meituan has made significant progress in helping local retail entities digitize. This quarter, Meituan's annual active users and merchants reached a historical high, with instant delivery orders reaching 6.2 billion. By continuously optimizing platform supply, driving by both the online shelf model and innovative products, Meituan better meets the quality and price demands of users in different price ranges. The "Super Members" service that integrates eating, drinking, playing, and entertainment was fully covered in various consumption scenarios in July. By early July, the number of merchants participating in "Super Members" had reached 5 million. Meituan's group buying has 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, many stores, great savings" has significantly strengthened. Among them, the GTV and order volume of leisure and entertainment products achieved double-digit growth year-on-year. At the same time, in order to support the digital capabilities of various retail entities, Meituan continues to improve merchant-side products and services, which in turn drives the improvement of merchants' operational efficiency and scale benefits. Taking Meituan Waimai's "Brand Satellite Stores" as an example, this quarter began to provide more merchants with services such as commission rebates, traffic support, and operational guidance. By the end of June, 120 brands had opened over 800 satellite stores nationwide. Meituan's management stated in a conference call after the financial report that the ever-changing consumer trends have indeed brought different challenges to various industries, but the demand of consumers for local businesses remains strong, and the potential for the digital transformation of the local business industry is still enormous, thus they are confident in long-term growth