On May 25, Meituan released its first quarter 2023 earnings report。Performance data show that Meituan's revenue in the first quarter was 586.1.7 billion yuan (RMB, the same below), up 26.7%; operating profit of 33.5.8 billion yuan, a net loss of 57% in the same period last year..$0.2 billion; adjusted EBITDA of 62.6.2 billion yuan, a loss of 18 in the same period last year..400 million yuan; adjusted net profit of 54.9.1 billion yuan, a loss of 35% in the same period last year..8.6 billion yuan。

 

Meituan Q1 core local business profit grows strongly, new business losses narrow

  

Meituan's Q1 results from the two major segments of core local commerce and new business.。

In terms of core local commercial segments, revenue in the first quarter of 2023 was $42.9 billion, up 25% YoY..5%。Operating profit was $9.4 billion, doubling year-on-year, with an operating profit margin of 22.0%, YoY growth of 8.2%。Number of instant delivery transactions increased by 14.9%。

Among them, the increase in revenue from food and beverage takeaways and Meituan flash sales was due to the increase in the number of transactions and unit prices, as well as more effective trading user incentive strategies.。In the first quarter, the flash purchase order volume of the US group increased by about 35% year-on-year.。Revenue from the store, hotel and travel business, on the other hand, benefited from the strong increase in transaction value brought about by the recovery in consumption.。

In terms of new business segments, revenue in the first quarter was $15.7 billion, up 30% year-over-year, thanks to the expansion of the merchandise retail business..1%。Operating loss was $5 billion, compared with a loss of $8.5 billion in the same period last year, and losses narrowed by 40% year-on-year..5%。Operating loss rate from 69.9% YoY Narrow 37.9 percentage points to 32.0%。The improvement in both operating loss and operating loss ratio was primarily due to improved operational efficiency of the Company (particularly in the merchandise retail business).。

Among them, the cumulative number of trading users by the end of March has reached 4.500 million, still leading the industry, and the company is constantly improving operational efficiency.。At the same time, Meituan Preferred is also actively promoting the circulation of agricultural products, contributing more than 45% to agricultural sales in the first quarter.。In terms of Meituan's grocery shopping, the first quarter's transaction volume increased by more than 50% year-on-year, and the unit price and transaction frequency of customers increased compared with the same period last year.。

 

Shake into the takeaway industry, Meituan launches takeaway platform KeeTa in Hong Kong SAR

 

All along, as the core business of Meituan, most of the market share of the domestic and foreign selling industry is in the hands of Meituan, and the only thing that can compete with it is hungry?。But some time ago, an "uninvited guest" broke into the industry, hoping to get a piece of the action.。

Earlier, the trembles announced plans to enter the takeaway industry.。As of March 5, Douyin has launched takeaway business in 18 cities across the country, mainly in high-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, as well as Chengdu, Hangzhou and Wuhan.。The tremolo had previously launched "Heartbeat Takeaway" in 2021, but then went offline and failed in its first attempt.。Then in 2022, the tremolo and hungry to reach a cooperation, users in the tremolo to view the takeaway, you can click to jump to the hungry tremolo small program to place an order, equivalent to hungry in the tremolo for internal residence, tremolo only provides platform drainage effect.。

Perhaps the huge flow of short video is really attractive, tremolo does not want to "fat water into the field of outsiders," so even if there are two takeaway giants, the United States group, hungry, tremolo still want to develop their own takeaway business.。At present, the tremolo is mainly operated in two ways, one is through the brand's own takeaway applet, and the other is through group purchase distribution.。The tremolo takeout is coming, but Meituan's leadership is not so easy to shake.。It is reported that the current market share of Meituan in the Chinese mainland takeaway market has been close to 70%。At present, tremolo takeout in the online area, merchants settled in and other aspects are still far from being compared with the United States group.。

Seeing someone move the takeaway "cake," how can Meituan sit idly by?。Although in the domestic takeaway industry has been firmly on the leading throne, but its growth rate has been slowing down year by year, the United States is also looking for a new breakthrough.。Recently, Meituan has expanded its business to Hong Kong, China。

On May 22, Meituan launched takeaway platform KeeTa in Hong Kong SAR。KeeTa continues the main color of Meituan Yellow, which is online in both Apple and Android's app stores and goes into service at 8 a.m. on May 22。It is reported that KeeTa will be the first to start operations in Mong Kok and Tai Kok Tsui areas, followed by month-on-month expansion of new areas, and by the end of this year to complete the territory-wide coverage.。

 

Meituan's rise began with the use of subsidies in exchange for market share, and this time it is no surprise that the experience of mainland China has been copied to the Hong Kong SAR.。It is reported that in order to attract new users, KeeTa launched a HK $1 billion subsidy incentive program, new users can register to get HK $300 coupons for full reduction and shipping costs.。Not only that, KeeTa also provides customers with free time insurance services, and in mainland China, time treasure is a gift from the merchant or the user to buy their own。According to media reports, about 2,000 orders were recorded in the Mong Kok area as of 8pm on the first day of KeeTa's launch.。

Daiwa released a research report saying that KeeTa, Meituan's takeaway platform in the Hong Kong SAR, is more price-competitive than Deliveroo and Foodpanda。According to the report, as of November 2021, Foodpanda's Hong Kong market share was 51%, while Deliveroo's was 46%.。Daiwa expects increased competition in the short term as KeeTa becomes more price competitive。KeeTa offers great value packages for individuals, allowing them to order meals from HK $60, including delivery fees。

The bank said that as order density in Hong Kong is likely to be low at present, Daiwa believes that the delivery cost per order will be higher than the subsidy for mainland users.。However, due to the small size of the Hong Kong market, there is no concern about losses, and it is believed that Hong Kong is Meituan's first pilot city before expanding into overseas markets such as Southeast Asia.。At the same time, the bank maintained Meituan's "buy" rating in the report and gave H shares a target price of HK $205.。

 

Wang Xing: Catching up in AI, researching and developing basic models and applications

 

In terms of AI, at the performance call, Wang Xing, founder of Meituan, said that in the long run, AI may have a fundamental impact on the way society interacts, but for the performance service industry, the impact of AI is still small.。Over the past few years, Meituan has also been developing and investing in robotics-related technologies, and Meituan's robots have become increasingly intelligent.。He also said that in terms of AI, Meituan is in the stage of catching up.。Meituan has accumulated some user cases and corresponding data, the company's engineering team is also in continuous training and learning, Meituan will actively invest to strengthen technical capabilities.。

It was previously reported that Meituan had been secretly developing a large model for more than two months.。For the large model development process, Wang Xing said he is researching and developing basic models and applications.。Open to external technical cooperation and investment opportunities, and would be happy to keep pace with the market if progress is made。

 

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