Meituan, the Chinese food delivery giant, recorded RMB 67.97 billion ($9.3 billion) in revenue for the quarter ending in June, marking a 33.4% year-on-year growth, the highest surge in nearly two years. The Hong Kong-listed company achieved a net profit of RMB 4.69 billion during the period, compared to a loss of RMB 1.12 billion a year earlier. However, Meituan’s financial reports over the years do not consistently demonstrate its sustained ability to generate profits. Revenue from Meituan’s core local commerce, including delivery, online marketing services, and commission, remains the firm’s backbone, accounting for over 70% of total earnings. This segment experienced an almost 40% increase, reaching RMB 51.2 billion. The surge in core revenue is primarily attributed to a 31.6% rise in on-demand delivery transactions, surpassing 5.4 billion orders in the second quarter. Wang Xing, CEO of Meituan, expressed confidence in China’s economic growth during the follow-up earnings call, despite the ‘temporary negative impact from the macro environment.’ He also forecasted a ‘slowdown’ in food delivery volume for the upcoming quarter. [Meituan]
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