Meituan Achieves a 77% YoY Revenue Growth in Q2 2021

- On August 30, 2021, Meituan, the Chinese life service e-commerce platform, released its Q2 financial report. The report shows that the company earned a quarterly revenue of CNY 43.80 billion, with a year-on-year increase of 77%, and the monthly operating loss was reduced to CNY 3.25 billion.

- In terms of businesses, the platform's revenue of takeout food was CNY 23.10 billion, accounting for 52.74% of the total; earnings from hoteling were CNY 8.60 billion, covering 19.63% of the total. As indicated by the firm, its retail business continued to build its core infrastructures and has begun to establish nationwide cold-chain logistics, while promoting the growth of high-quality agricultural products across the country.

- Wang Xing, CEO of Meituan, said that their businesses continued to maintain steady growth in Q2 2021, thanks to the continuous and stable recovery of China's economy and the company's deep integration of digitization with the real economy and service economy. He also mentioned the company's firm determination to implement relevant national policies, play a proactive role in social responsibilities, and utilize the power of technology to propel China's economic development.

- As for expenditure, Meituan's R&D investment in Q2 2021 reached CNY 3.90 billion, with a year-on-year increase of over 60%. At the same time, the cost of the riders reached CNY 15.50 billion, a year-on-year increase of 53%.

- In terms of data, the number of users trading on the platform annually was 630 million and its active businesses up to 7.7 million until Q2 2021, both reaching a record high; the average per capita number of transactions was 32.8 annually, a year-on-year increase of 27.8%.

- In June 2021, the firm launched the 'takeout housekeeper service' to help digitalize the operation of high-quality but small- and medium-sized businesses. As the first phase of special subsidies, CNY 150 million was invested by the platform to provide 30,000 small and medium-sized businesses with three-month online operation services free of charge. Until now, 6000 businesses from 25 pilot cities have participated, driving up the average transaction volume of takeout restaurants by over 50%.

- In terms of riders, the report shows that, before H1 2021, the number of daily active riders of Meituan has exceeded one million. According to survey data, 60% of full-time riders have a monthly income of more than CNY 5,000.

- In July 2021, the company founded a service department to ensure riders' safety and improve their work experience. Besides, the firm has been responding to the national call and actively participated in the pilot programs to prevent and resolve the risk of occupational injury. In addition, Meituan also launched the 'Webmaster Training Program' and has been cooperating with vocational and community schools.

- The platform stated that in the future, it will provide a more comprehensive protection system for riders' rights and interests according to relevant policies and promote the high-quality and healthy development of the industry.

- Founded in Beijing in 2011, Meituan is China's leading e-commerce platform for life services. Its products include public reviews net, Meituan takeout and others. Its services cover more than 200 categories, such as catering, takeout, fresh retail, ride-hailing, bike-sharing, hotel tourism, film, and leisure & entertainment, and its operation covers 2800 counties, regions, and cities across China.

- On June 22, 2018, the platform was listed on the Hong Kong Stock Exchange. As of the close on August 30, 2021, its share price was HKD 228.40 (CNY 189.73), with a market value of about HKD 1.40 trillion (CNY 1.16 trillion).