Meituan-W (03690) has released its financial results for the first quarter of 2026.

The company reported revenue of RMB 91 billion, representing a 5.6% year-over-year increase.

Operating losses improved significantly, decreasing to RMB 6.5 billion from RMB 16.1 billion in the previous quarter.

Within this, the core local commerce segment saw its operating loss narrow sharply to RMB 2 billion from RMB 10 billion last quarter.

Losses from new initiatives also contracted notably to RMB 2.1 billion from RMB 4.6 billion.



Key Strategic Focus

The quarter was marked by continued investment under Meituan's "Retail + Technology" strategy, focusing on deploying technology in real-world applications.

Research and development expenditure grew by 22% year-over-year to RMB 7 billion, accounting for 7.7% of total revenue.

CEO Wang Xing stated that the company will continue to increase its investment in AI, iterating on its AI Agent and large language model capabilities to enhance the consumer experience.



Advancing AI in the Physical World

In April, Meituan opened its next-generation large model, LongCat-2.0-Preview, for testing.

This model, trained and powered entirely by domestic computing clusters, has a parameter scale exceeding one trillion.

Based on LongCat, Meituan upgraded its AI assistant "Xiao Tuan," which served over 100 million users during the Labor Day holiday across various lifestyle scenarios.

For merchants, Meituan is focused on providing AI tools, with solutions like "Smart Shopkeeper" now serving over 700,000 catering businesses and "Digital Employees" covering more than 300,000 retail merchants.

In hardware, Meituan's drone-built "Urban Low-Altitude Network" commenced regular operations in May and is now open for industry collaboration, having completed over 900,000 commercial delivery orders globally.



Business Segment Performance

The core local commerce business generated revenue of RMB 64.1 billion while maintaining its leadership in instant retail.

Initiatives in food delivery and Meituan Instashopping continued to drive operational efficiency and user engagement.

New businesses, including grocery retail and international operations, reported robust growth.

Revenue from this segment reached RMB 27 billion, up 21% year-over-year.

Grocery service Xiaoxiang Supermarket now covers 55 cities, while the international platform Keeta demonstrated improved operational efficiency in Hong Kong and Saudi Arabia, with strong growth in other markets.



Management Outlook

CFO Chen Shaohui expressed confidence in the company's sustainable growth, highlighting significant breakthroughs in both technological innovation and business development during the quarter.

He affirmed that Meituan will continue to increase its investments in technology and ecosystem development to create long-term value for all industry participants.