"Profit Warning" Meituan estimates a loss of at least 23.3 billion RMB last year, with the loss trend continuing this season

MEITUAN-W (03690.HK) issued a profit warning, expecting a loss of between RMB 23.3 billion and RMB 24.3 billion for the fiscal year 2025, compared to a profit of RMB 35.808 billion in the previous year. The anticipated loss is mainly due to the core local commerce segment turning from an operating profit of RMB 52.415 billion in the previous year to an operating loss of RMB 6.8 billion to RMB 7 billion, as well as the group's further increase in revenue from overseas operations. The loss trend is expected to continue into the first quarter of 2026.

To cope with the unprecedented competition in the industry for the fiscal year 2025, the group is strategically increasing its investment in the entire ecosystem, including: on the consumer side, strengthening marketing efforts, enhancing brand influence and price competitiveness, and continuously improving user transaction activity and stickiness; on the delivery side, increasing rider incentives and enriching rider benefits to ensure service quality and enhance user experience; and on the merchant side, continuously investing resources to support merchants in improving operational efficiency, expanding consumer coverage, iterating business models, and achieving steady growth.

Currently, the group's operating conditions remain stable and normal, and it has sufficient cash to support the steady development of its business