Revenue Growth: Meituan reported a revenue increase of 11.7% year-over-year (YOY) to RMB 91.8 billion in Q2 2025. This growth was primarily attributed to strong performance in food delivery and on-demand retail sectors, with total monthly active users surpassing 600 million.

Profitability Challenges: Despite revenue growth, adjusted net profit declined significantly to RMB 1.5 billion due to heightened competition and increased costs, particularly in courier incentives and marketing expenses. Selling and marketing expenses rose by 6.5 percentage points YOY to 24.5%.

Competitive Landscape: The company faced intense competition leading to elevated industry-wide subsidies. However, management remains committed to a long-term strategy focusing on operational efficiency and quality service rather than engaging in unsustainable price wars. Management believes that the company has strong market fundamentals and can achieve a RMB 1 profit per order long-term despite current setbacks.