Meituan-W (03690) has announced its financial results for the three months ended March 31, 2026. The group achieved revenue of 91.039 billion yuan, representing a 5.6% year-on-year increase. However, gross profit declined by 19% to 25.97 billion yuan, and the adjusted net loss was 4.968 billion yuan.

The company reported a net loss of 6.8 billion yuan for the first quarter of 2026, a significant shift from the net profit of 10.1 billion yuan recorded in the same period of 2025. Intensified industry competition has pressured profitability, leading to a total segment operating profit of negative 4.1 billion yuan, despite resilient revenue growth.

The operating profit for the core local commerce segment decreased to negative 2.0 billion yuan. Conversely, the operating loss for the new initiatives segment narrowed to 2.1 billion yuan. Consequently, adjusted EBITDA and adjusted net profit both declined to negative 3.0 billion yuan and negative 5.0 billion yuan, respectively. As of March 31, 2026, the company held cash and cash equivalents of 117 billion yuan and short-term financial investments of 63.3 billion yuan.

**Core Local Commerce**

As intense industry competition moderated, the instant delivery business delivered a solid performance in the first quarter. On the user side, the company further consolidated its structural advantages, laying a solid foundation for its industry-leading operational efficiency. Despite a more prudent subsidy strategy, Meituan continued to acquire new users and increased the purchase frequency of core users, who exhibit more diversified consumption demands and higher expectations for service quality.

The company reinforced its position as the preferred platform for instant delivery, relying not only on competitive pricing but also on its comprehensive service system, reliable fulfillment capabilities, and high-quality supply. On the supply side, it enhanced supply chain capabilities across multiple dimensions. With full operational support, "Brand Satellite Stores" scaled rapidly, driving higher order conversion and repurchase rates for merchants.

Data insights empowered merchants to optimize menu structures and enrich the product offerings of "Pin Hao Fan." The company also upgraded supply chain services for all "Meituan Flash Warehouses," helping merchants improve inventory quality, optimize procurement efficiency, and enhance user experience. Other innovative supply formats, such as "Waima Songjiu" and "Brand Flagship Flash Warehouses," continued steady expansion.

The platform also improved overall service experience, particularly in delivery. The penetration of its "1-to-1 Express Delivery" service increased among food delivery users and was extended to "Meituan Instashopping" users, effectively meeting urgent shopping needs and high-end gifting scenarios.

Beyond enhancing user engagement and supply capabilities, the company intensified efforts to build a sustainable platform ecosystem. It provided targeted operational support to more small and medium-sized catering merchants. By curbing malicious reviews, launching meal damage protection, and offering AI-powered operational tools, it helped improve the operating environment for platform merchants.

Ten food safety initiatives were introduced to strengthen governance, focusing on strict merchant onboarding reviews, transparent operations management, and multi-party collaborative supervision. The in-store, hotel, and travel business continued to solidify its position as the preferred one-stop local service platform. Through supply-side optimization and refined investment, core categories achieved steady growth.

On the supply side, the company optimized its supply system with a cost-effective and diversified product portfolio, strategically focusing on creating high-quality supply. Its curated recommendation lists, including "Black Pearl," "Must-Eat," "Must-Visit," and "Must-Stay," gained increasing market recognition, driving traffic to quality merchants and providing clear, reliable reference information for consumers.

The ecosystem connecting merchants, service professionals, and consumers was integrated. Through personal digital profiles and specialized training, nearly 1.3 million professional service providers on the platform were supported in enhancing their skills and building personal brands. On the product side, membership points were integrated with chain merchants' loyalty programs, empowering merchants to optimize customer retention and management using platform data insights.

To build a sustainable industry ecosystem, the company actively developed and refined industry standards related to service quality and consumer rights protection, aiming to enhance industry trust and reduce transaction barriers, especially for non-standardized local service categories. For instance, the "Anxin Le Shenghuo Plan" was extended to fitness, hairdressing, and massage services, while verification mechanisms for medical devices and supplies were launched for healthcare services like dentistry and aesthetic medicine, further strengthening information transparency, improving conversion rates, and enhancing long-term user loyalty.

**New Initiatives**

The company adhered to the principle of high-quality growth for new initiatives, pursuing prudent expansion and excellent operational management. "Xiaoxiang Supermarket" continued to expand its geographic coverage, maintaining strong growth momentum and further strengthening its supply chain capabilities. Overall product quality and price competitiveness improved, with an increased proportion of private-label products.

Keeta achieved significant operational efficiency improvements in mature markets through economies of scale and operational optimization. In new markets, leveraging accumulated operational expertise, it achieved robust business growth while rapidly improving operational efficiency. The company will continue to leverage its core strengths in product development, technological capabilities, and operational execution to further optimize Keeta's end-to-end consumer experience.

Beyond stable operations across business segments, the company accelerated its AI deployment in Q1 2026 to comprehensively enhance services for consumers and merchants. Its AI assistant "Xiao Tuan" completed an iteration of its intelligent search function, providing smarter decision-making references for local lifestyle service users. "Xiao Tuan Health Manager" was also launched, enabling consumers to complete online consultations, purchase medication, and book medical appointments in one place on the platform.

For merchants, the company continued to promote a full suite of AI-powered operational tools to address key industry pain points. Its "Smart Shopkeeper" serves over 700,000 catering merchants, including national and regional chain brands. "Digital Employees" support over 300,000 service retail merchants across the industry. For hotel merchants, a dedicated AI solution "Jibai" was launched and has been fully validated in both low-star and high-star hotels. These AI tools help merchants navigate complex operational scenarios, automate routine tasks, and improve efficiency.

Looking ahead to the remainder of 2026, the company will focus on enhancing user experience, empowering merchants across the entire value chain, and making strategic investments in the ecosystem to consolidate competitive advantages across business segments. It will adhere to prudent and steady operations, pursue high-quality growth, and accelerate the deep integration of AI in both the physical and digital worlds to drive efficiency improvements. Meituan is committed to building a more resilient, value-centric ecosystem to create sustainable returns for all stakeholders and further solidify its long-term competitive advantages. The company believes its commitment to technological innovation and continued investment in supply chain capabilities and ecosystem development will unlock long-term compound value for the entire platform.