Overview

• Revenue rose 11.7% to 91.8 billion yuan in the June quarter while net profit fell to about 365 million yuan, a drop of roughly 96.8–97% year on year.
• Meituan cited an instant-delivery price war that started this quarter, with cost of revenue up 27%, selling and marketing expenses up 51.8%, and R&D up 17.2%.
• Chief financial officer Chen Shaohui said the core local commerce unit will post substantial losses in the current quarter due to strategic spending.
• Hong Kong–listed shares fell as much as 11.3% after the results, trimming founder Wang Xing’s estimated wealth by about $1.1 billion during trading.
• Analysts expect the subsidy battle with Alibaba and JD.com to continue in the near term as Meituan also advances its Keeta overseas push, which observers say may take one to two years to become profitable.