Meituan Q1: revenue RMB 91 billion, up 5.6%, above estimates at the headline. But the real story is inside Core Local Commerce: operating loss of RMB 2 billion as marketing costs jumped 51% year on year. That is Douyin forcing Meituan to spend defensively in its own backyard. New Initiatives up 23% is the growth engine, but it does not generate profits yet. The key variable for next quarter is whether marketing spend as a percentage of revenue stabilises or keeps climbing. If it keeps going up, the profitability recovery timeline keeps getting pushed out.
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