Meituan-W released its interim results, with revenue increasing by 14.7% year-on-year to 178.398 billion yuan. The instant delivery business continued to consolidate its market position in the second quarter

According to the Zhitong Finance APP, Meituan-W (03690) released its interim results for the six months ending June 30, 2025. The group achieved revenue of RMB 178.398 billion, an increase of 14.7% year-on-year; adjusted net profit was RMB 12.442 billion, a decrease of 41% year-on-year; profit attributable to equity holders of the company was RMB 10.422 billion, a decrease of 37.67% year-on-year; basic earnings per share were RMB 1.72.

In the second quarter of 2025, the group achieved revenue of RMB 91.84 billion, an increase of 11.7% year-on-year; adjusted net profit was RMB 1.493 billion, a decrease of 89% year-on-year.

In the second quarter, our revenue grew by 11.7% from RMB 82.3 billion in the same period of 2024 to RMB 91.8 billion. Due to intense competition in the takeaway industry, the operating profit of our core local business segment significantly decreased to RMB 3.7 billion year-on-year in the second quarter of 2025. Meanwhile, due to overseas expansion, the operating loss of the new business segment widened year-on-year to RMB 1.9 billion. Therefore, our adjusted EBITDA and adjusted net profit for the period decreased to RMB 2.8 billion and RMB 1.5 billion, respectively. In the second quarter of 2025, net operating cash inflow was RMB 4.8 billion. As of June 30, 2025, our cash and cash equivalents and short-term financial investments amounted to RMB 101.7 billion and RMB 69.4 billion, respectively.

In the second quarter of 2025, our segment revenue grew by 7.7% year-on-year to RMB 65.3 billion. Affected by irrational competition that began this quarter, operating profit decreased by 75.6% year-on-year to RMB 3.7 billion, and the operating profit margin decreased by 19.4 percentage points year-on-year to 5.7%.

Despite increasing competition, our on-demand delivery business still consolidated its market position in the second quarter. We remain committed to building a healthy industry ecosystem, providing high-quality services and consumer experiences. In the second quarter, our food delivery business expanded its customer base while deepening the stickiness of core users and increasing transaction frequency. We continue to offer high cost-performance products across various price ranges and strengthen our penetration in high-value consumption scenarios. We collaborate with restaurant merchants to carry out supply-side innovations to enhance industry quality standards. We empower hundreds of chain restaurant brands to launch more efficient "brand satellite stores." We have also improved the supply and service quality of "Pin Hao Fan" and "Shen Qiang Shou" to meet consumer demand for high cost-performance meals across different price ranges. Today, "Pin Hao Fan" has become a revenue growth driver for small and medium-sized merchants and chain brands. Our central kitchen project "Raccoon Canteen" continues to expand, setting food safety standards for the industry and providing end-to-end food safety infrastructure support that is traceable for restaurant merchants. In addition, we continue to promote the "Bright Kitchen and Bright Stove" program, providing traffic support and hardware subsidies to participating merchants. We have also simplified the marketing process to reduce the burden on merchants, allowing them to focus on improving quality.

The order volume and transaction amount of the "Meituan Flash Purchase" business recorded strong growth in the second quarter, consolidating its market position against the backdrop of rapid industry development. We accelerated customer acquisition, converted more food delivery users, and increased transaction frequency among core users. Through supply and service upgrades, we enhanced user experience and expanded consumption scenarios. "Meituan Lightning Warehouse" supports local merchants and retail brands in their digital transformation, expanding their service radius and improving operational efficiency As of the end of June, we have established over 50,000 Meituan Lightning Warehouses nationwide. In this quarter, we optimized the purchasing experience for consumers buying chilled beer and enriched the supply of liquor and snacks. Through national subsidies and a series of shopping protection measures, we significantly enhanced the shopping experience for 3C digital products. Our service assurance measures further improved the consumer experience in the instant retail sector, covering aspects such as service, fulfillment, and after-sales. For example, we partnered with home appliance brands to provide same-day delivery and installation services. During the 618 shopping festival, we empowered nearly 1 million offline merchants to serve over 100 million consumers, allowing offline retailers to enjoy the benefits of online shopping festivals for the first time. Many high-value categories and Meituan Lightning Warehouses achieved remarkable growth.

Our in-store hotel and travel business maintained strong growth in the second quarter. We actively seized emerging opportunities in the service retail sector, including expanding new categories, innovating supply models, and penetrating lower-tier markets. We continue to promote the digital transformation and standardization of merchants, providing integrated solutions for chain store management, operational decision support, marketing, customer acquisition, and organizational management, helping them improve efficiency and scale. We are committed to empowering merchants to establish online influence and strengthen their digital brand image. For example, we help merchants optimize their store page displays to present more refined, accurate, and diverse information; simplify store management processes through more efficient systems; and expand brand image using digital assets such as user reviews, images, videos, and various featured rankings.

In addition, we have helped over 1 million independent artisans complete digital archiving, enhancing their sales and deepening their connection with consumers. Recently, we launched a series of AI business assistants in the merchant backend and are gradually promoting them to more service retail merchants. Among them, the AI customer service representative can provide 24-hour instant responses, ensuring timely and accurate replies while proactively following up on unresolved issues. The AI scheduling specialist can automatically generate schedules based on employee dynamics and customer needs, and can make immediate adjustments for temporary rescheduling 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 to conduct comprehensive business analysis based on store location, foot traffic, and competitive landscape, producing intelligent business reports. Additionally, we have successfully launched "Meituan Jibai"—the country's first AI tool specifically designed for hotel merchants. This tool improves operational efficiency through data-driven functions such as smart pricing and dynamic inventory management