MEITUAN-W (03690) announced its interim results for the six months ended June 30, 2025. The group achieved revenue of RMB 178.398 billion, representing a year-over-year increase of 14.7%. Adjusted net profit was RMB 12.442 billion, down 41% year-over-year. Profit attributable to equity holders was RMB 10.422 billion, declining 37.67% year-over-year. Basic earnings per share stood at RMB 1.72.

For the second quarter of 2025, the group recorded revenue of RMB 91.84 billion, up 11.7% year-over-year, while adjusted net profit was RMB 1.493 billion, down 89% year-over-year.

In the second quarter, revenue increased 11.7% from RMB 82.3 billion in the same period of 2024 to RMB 91.8 billion. Due to intense competition in the food delivery industry, operating profit of the core local commerce segment declined significantly year-over-year to RMB 3.7 billion in the second quarter of 2025. Meanwhile, operating losses in the new initiatives segment widened year-over-year to RMB 1.9 billion due to overseas expansion. Consequently, adjusted EBITDA and adjusted net profit for the period decreased to RMB 2.8 billion and RMB 1.5 billion respectively.

Net operating cash inflow was RMB 4.8 billion in the second quarter of 2025. As of June 30, 2025, cash and cash equivalents and short-term wealth management investments held were RMB 101.7 billion and RMB 69.4 billion respectively.

In the second quarter of 2025, segment revenue increased 7.7% year-over-year to RMB 65.3 billion. Affected by irrational competition that began this quarter, operating profit declined 75.6% year-over-year to RMB 3.7 billion, with operating margin decreasing 19.4 percentage points year-over-year to 5.7%.

Despite intensifying competition, the instant delivery business consolidated its market position in the second quarter. The company remains committed to building a healthy industry ecosystem and delivering quality services and consumer experiences.

In the second quarter, the food delivery business expanded its new customer base while deepening core user stickiness and increasing transaction frequency. The company continues to provide high value-for-money products across various price points and strengthen penetration in high-value consumption scenarios. It collaborates with restaurant merchants on supply-side innovations to improve industry quality standards.

The company empowered hundreds of chain restaurant brands to launch more efficient "brand satellite stores." It also enhanced the supply and service quality of "Pin Hao Fan" and "Shen Qiang Shou" to meet consumer demand for high value-for-money meals across different price segments. "Pin Hao Fan" has now become a revenue growth driver for small and medium merchants and chain brands.

The central kitchen project "Raccoon Canteen" continued to expand, setting food safety standards for the industry and providing end-to-end food safety infrastructure support with full traceability for restaurant merchants. Additionally, the company continues promoting the "Open Kitchen" program, providing traffic support and hardware subsidies for participating merchants. It also simplified marketing processes to reduce merchant burden, allowing them to focus on quality improvement.

"Meituan Instashopping" business recorded strong growth in order volume and transaction value in the second quarter, consolidating its market position amid rapid industry development. The company accelerated customer acquisition, converted more food delivery users, and increased transaction frequency among core users. Through supply and service upgrades, it enhanced user experience and expanded consumption scenarios.

"Meituan Lightning Warehouse" assists local merchants and retail brands in digital transformation, expanding their service radius and improving operational efficiency. By the end of June, over 50,000 Meituan Lightning Warehouses had been deployed nationwide.

This quarter, the company optimized consumers' chilled beer purchasing experience and enriched the supply of liquor and snacks. Through national subsidies and comprehensive shopping protection measures, it significantly enhanced the shopping experience for consumer electronics products.

Service guarantee measures further improved consumer experience in the instant retail sector, covering service, fulfillment, and after-sales aspects. For example, the company collaborated with home appliance brands to provide same-day delivery and installation services.

During the 618 shopping festival, the company empowered nearly 1 million offline merchants to serve over 100 million consumers, allowing offline retailers to benefit from online shopping festivals for the first time. Many high-value categories and Meituan Lightning Warehouses achieved impressive growth.

The in-store, hotel & travel business maintained strong growth in the second quarter. The company actively captures emerging opportunities in the services retail sector, including expanding new categories, innovating supply models, and penetrating lower-tier markets.

The company continues promoting digital transformation and standardization on the merchant side, providing integrated solutions for chain store management, business decision support, marketing, customer acquisition, and organizational management to help merchants improve efficiency and scale up.

The company remains committed to empowering merchants to establish online influence and strengthen digital brand image. For example, it helps merchants optimize store page displays with more refined, accurate, and diversified information; simplifies store management processes through more efficient systems; and expands merchant brand image through digital assets such as user reviews, photos, videos, and various featured rankings.

Additionally, the company has helped over 1 million independent craftspeople complete digital archiving, helping them increase sales and deepen connections with consumers.

Recently, the company launched a series of AI business assistants in the merchant backend and is gradually promoting them to more service retail merchants. The AI customer service specialist provides 24-hour instant responses, ensuring timely and accurate replies while proactively following up on unresolved issues. The AI scheduling specialist automatically generates work schedules based on employee dynamics and customer demand, with real-time adjustments for temporary appointment changes and service cancellations. The AI operations specialist generates marketing materials based on real-time data to improve operational efficiency. The AI business manager leverages Meituan's data resources and conducts comprehensive business analysis across dimensions including store location, customer flow, and competitive landscape to produce intelligent business reports.

Furthermore, the company has successfully launched "Meituan Jibai" - the first AI tool in China specifically designed for hotel merchants. This tool improves operational efficiency through data-driven functions such as smart pricing and dynamic inventory management.