【Earnings Highlights】
- Revenue increased 18.1% year-over-year to RMB 86.6 billion
- Adjusted net profit reached RMB 10.9 billion
- Core local commerce segment revenue grew 17.8% to RMB 64.3 billion
- New initiatives segment revenue rose 19.2% to RMB 22.2 billion

【Key Developments】

1. AI and Technology Advancements:
- Updated LongCat large language model, now able to switch between reasoning and non-reasoning modes
- Improved end-to-end voice interaction model LongCat S
- Launched AI-powered business decision assistant "Kangaroo Advisor" for food service industry
- 52% of new code in the company is now AI-generated
- Introduced no-code platform for internal use and public users

2. Food Delivery Competition:
- Facing intensified competition with heavy subsidies from new entrants
- Committed to defending market share and leadership position
- Expect volatility in short-term financial results due to increased investment
- Q2 core local commerce revenue growth expected to decelerate, with operating profit decreasing significantly year-over-year

3. On-Demand Retail (Meituan Instashopping):
- Officially launched Meituan Shopping brand
- Expanded into various categories beyond food, including 3C products, home appliances, and beauty
- Introduced service assurance plan covering the entire on-demand retail process
- Collaborating with well-known brands to improve delivery and after-sales services

4. Global Expansion:
- Keta (overseas brand) making progress in Hong Kong and Saudi Arabia
- Announced plans to enter Brazilian market with $1 billion investment over 5 years
- Leveraging Meituan's advanced systems and operational know-how for overseas expansion

5. Merchant and Rider Support:
- Allocated over RMB 10 billion to support merchants across various categories
- Expanded "Branded Satellite Stores" program, helping 480 brands open 3,000 high-quality stores
- Launched new pension pilot program for riders in two cities, with plans to expand nationwide

【Outlook】
- Expect continued growth in core local commerce segment despite short-term challenges
- Focus on balancing investments in overseas expansion and domestic competition
- Maintain share repurchase program as the main channel for shareholder returns
- Committed to long-term growth opportunities in global food delivery and on-demand retail markets

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.