Overview

• Q2 revenue rose 11.7% to RMB 91.8 billion, missing estimates, as net profit dropped 96.8% to RMB 365 million.
• Meituan cited “irrational” competition for the downturn, with local commerce operating profit down 75.6% and margin sliding to 5.7%, while total operating profit fell 98% to RMB 226.4 million.
• Costs surged as cost of revenue increased 27% on higher courier incentives, selling and marketing jumped 51.8%, and R&D rose 17.2%.
• Shares fell 3% before the release in Hong Kong and slid as much as 11.3% the next day, cutting founder Wang Xing’s wealth by about $1.1 billion.
• The company said its on‑demand delivery business solidified its market position, as the CFO warned core local commerce will post “substantial” losses this quarter and analysts cautioned the subsidy battle could persist.