Steady Revenue Growth: Meituan reported a revenue increase of 11.7% year-over-year (YOY) to RMB 91.8 billion in Q2 2025, despite facing intense competition. Total monthly active users (MAUs) exceeded 600 million, with key app MAUs surpassing 500 million and average user transaction frequency reaching once a week. This indicates solid consumer engagement and market position.

Intense Competitive Environment: The on-demand delivery sector is experiencing unprecedented competition, leading to increased costs, particularly in courier incentives and overseas operations. The cost of revenue ratio rose by 8.1 percentage points YOY to 66.9%, and selling and marketing expenses increased by 6.5 percentage points to 24.5%. These factors put pressure on profit margins, resulting in a significant drop in operating profit and adjusted net profit to RMB 1.8 billion and RMB 1.5 billion, respectively.

Investment in Market Leadership: Management emphasized ongoing investment to defend market position and enhance long-term competitiveness, underscoring a commitment to service quality and user experience. They are also focused on creating a sustainable ecosystem that benefits consumers, merchants, and couriers, which is seen as crucial for long-term success despite short-term losses.