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Meituan
TechBig Tech

Meituan posts 77 per cent quarterly revenue growth despite concerns over antitrust investigation

  • China’s largest food delivery and on-demand local services provider posted market-beating second-quarter revenue of US$6.8 billion
  • The company incurred a net loss of US$525 million, as its new initiatives and others segment continued to rack up losses

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Meituan remains under an antitrust investigation by the State Administration for Market Regulation. Photo: Bloomberg
Minghe HuandIris Deng
Meituan, operator of China’s largest food delivery and on-demand local services platform, beat second-quarter estimates with a 77 per cent revenue growth, despite the government’s antitrust investigation and the regulatory scrutiny of the country’s technology sector.
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Beijing-based Meituan posted revenue of 43.8 billion yuan (US$6.8 billion) in the quarter ended June, up from 24.7 billion yuan a year ago, on the back of stellar growth at its food delivery business. That beat the 42 billion yuan consensus estimate from a Bloomberg poll of market analysts.

The company incurred a net loss of 3.4 billion yuan, compared with a 2.2 billion yuan profit a year earlier, as its business segment called new initiatives and others, which includes group buying, continued to rack up losses. This segment recorded a wider loss of 9.2 billion yuan, compared with 1.5 billion yuan a year ago, because of continued heavy investment.

“As the Chinese economy continued to recover steadily, our various business segments maintained healthy growth in the second quarter of 2021,” said Meituan founder, chairman and chief executive Wang Xing in a statement on Monday. “The recent new regulatory environment change reminded ourselves of our role in society and compels us to innovate and better contribute to society at large.”
Wang Xing, founder, chairman and chief executive of Meituan, said the company will continue to develop its businesses around the needs of mass-market consumers. Photo: Bloomberg
Wang Xing, founder, chairman and chief executive of Meituan, said the company will continue to develop its businesses around the needs of mass-market consumers. Photo: Bloomberg
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Meituan’s share price closed up 1.5 per cent to HK$228 (US$29.27) on Monday in Hong Kong, down from a peak of HK$460 in mid-February, as the stock continues to be dragged down by the government’s antitrust investigation and regulatory uncertainties brought by tighter scrutiny on the internet sector.

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