Meituan-W (03690) released its first quarter financial results, with revenue of 91.039 billion yuan, an increase of 5.6% year-on-year.

MEITUAN-W (03690) released the performance for the three months ending March 31, 2026. The group achieved a revenue of 91.039 billion yuan, an increase of 5.6% year-on-year; gross profit of 25.97 billion yuan, a decrease of 19% year-on-year; and adjusted net loss of 4.968 billion yuan. In the first quarter of 2026, we incurred a loss of 6.8 billion yuan, compared to a profit of 10.1 billion yuan in the same period of 2025. Despite the intensified industry competition putting pressure on our profitability, the operating profit of our core local commerce division fell to negative 4.1 billion yuan, we still achieved resilient revenue growth year-on-year. The operating profit of our core local commerce division decreased to negative 2 billion yuan, while the operating loss of the new business division narrowed to 2.1 billion yuan. As a result, our adjusted EBITDA and adjusted net profit decreased to negative 3 billion yuan and negative 5 billion yuan respectively. As of March 31, 2026, we held cash and cash equivalents and short-term financial investments of 117 billion yuan and 63.3 billion yuan respectively. Core Local Commerce With the easing of fierce industry competition, our instant delivery business showed steady performance in the first quarter. On the user side, we further consolidated our user structure advantages, laying a solid foundation for our industry-leading operational efficiency. Despite adopting a more cautious approach to subsidies, we continued to acquire new users and further increase the consumption frequency of core users, who demonstrated more diverse consumption needs and higher service quality requirements. We continued to strengthen the user mind in instant delivery, relying not only on our competitive pricing advantage but also on our comprehensive service system, reliable fulfillment capabilities, and high-quality supply. On the supply side, we enhanced supply chain capabilities in multiple dimensions. With the support of our comprehensive operational empowerment, the "brand satellite stores" quickly scaled up, bringing higher order conversion rates and repurchase rates for merchants. Utilizing data insights, we empowered merchants to optimize menu structures and enrich the product offerings of "Group Buy Rice." We also upgraded the supply chain services for all "Meituan Quick Warehouses" to help merchants improve pallet quality, optimize procurement efficiency, and enhance the user experience. Other innovative supply forms such as "Waima Wine Delivery" and "Brand Official Flag Lightning Warehouse" also maintained steady expansion. In addition to enhancing user engagement, supply chain capabilities, and service offerings, we also made efforts to build a sustainable platform ecosystem. We provided targeted operational support to more small and medium-sized catering merchants. Through measures such as curbing malicious reviews, launching meal loss protection, and AI-empowered operational tools, we helped improve the operating environment for platform merchants. We also introduced ten food safety enhancement measures to strengthen governance supervision, focusing on strict merchant entry audits, transparent operational management, and multi-party regulatory cooperation. Our in-store, hotel, and travel businesses continued to consolidate their position as the preferred one-stop local service platform, achieving steady growth in core categories through supply side optimization and refined investments. On the supply side, we continued to optimize our supply system with a high-value diverse product portfolio, focusing on creating high-quality supplies. Our featured recommendation lists, including "Black Pearl List," "Must-Eat List," "Must-Play List," and "Must-Stay List," gained market recognition, accurately driving quality merchants and providing clear and reliable reference information to consumers to assist them in making consumption decisions. We also integrated an ecosystem connecting merchants, artisans, and consumers. Through personal digital profiles and specialized training, we support nearly 1.3 million professional artisans on the platform to improve their skills and build personal brands. On the product side, we integrated member points with chain store membership systems, empowering merchants to optimize customer retention and management through platform data insights. Furthermore, to build a sustainable industry ecosystem, we actively formulated and improved industry standards related to service quality and consumer rights protection, aiming to enhance industry trust, reduce transaction barriers, especially for non-standard local service categories. For example, we expanded the "Reassuring Happy Life Plan" to multiple service categories such as fitness, hairdressing, and massage, while launching a verification mechanism for medical equipment and supplies for medical health services such as dental and medical beauty, further solidifying information transparency, effectively improving conversion rates, and continuously enhancing user long-term stickiness. New Business We adhere to high-quality growth in new businesses, following the principle of cautious expansion and pursuing excellence in operational management. "Xiaoxiang Supermarket" continued to expand its geographic coverage, maintaining strong growth momentum and further strengthening its supply chain capabilities. The overall product quality and price competitiveness of the business continued to improve, with a higher proportion of own-brand products. Keeta achieved a significant increase in operational efficiency in mature markets thanks to scale effects and operational optimization. In new markets, leveraging accumulated professional operational experience, we achieved strong business growth and rapidly improved operational efficiency. We will continue to leverage our core strengths in product development, technological capabilities, and operational execution to further optimize Keeta's end-to-end consumer experience. In addition to the robust operation of each business segment, we accelerated the advancement of AI layout in the first quarter of 2026, comprehensively enhancing the service capabilities for consumers and merchants. Our AI assistant "Xiaotuan" completed the iteration of intelligent search function, providing a more intelligent decision-making reference for local life service users. We also launched "Xiaotuan Health Steward," allowing consumers to complete online consultations, purchase medicines, and medical appointments on our platform. On the merchant side, we continued to promote AI-enabled operational tools to address key operational pain points in the industry. Our "Smart Shopkeeper" has served more than 700,000 catering merchants, including national and regional chain brands. Our "Digital Employees" have supported over 300,000 service retailers in the entire industry. For hotel merchants, we launched a specialized AI solution "Jibai," which has been fully validated in low-star and high-star hotels. These AI tools help merchants deal with complex operational scenarios, automate daily tasks, and enhance operational efficiency. Looking ahead to the remaining time of 2026, we will consolidate the competitive advantages of each business segment by improving user experience, empowering merchants along the entire chain, and strategically investing in the ecosystem. We will adhere to cautious and steady operations, pursue high-quality growth, and accelerate the deep integration of AI in the physical and digital worlds, driving efficiency improvements across various businesses. We are committed to building a more resilient, value-centric ecosystem to create sustainable returns for all stakeholders and further consolidate our long-term competitive advantage. We believe that our commitment to technological innovation and continuous investment in supply chain capabilities and ecosystem development will unlock long-term compounding value for the entire platform.