Meituan (MEITUAN-W) reported a strong turnaround in the second quarter of 2026, fuelled by a rebound in core delivery operations and rapid growth in grocery retail and overseas ventures.

Financial Performance • Q2 2026 revenue rose 14.4% year on year to RMB 104.64 billion. • Operating profit surged to RMB 2.69 billion from RMB 226 million a year earlier, lifting operating margin to 2.6%. • Net profit climbed to RMB 2.16 billion, a 4.9-fold increase versus Q2 2025. • Non-IFRS adjusted net profit advanced 69.0% to RMB 2.52 billion; adjusted EBITDA expanded 47.3% to RMB 4.10 billion.

First-Half Snapshot • Revenue grew 10.1% to RMB 195.68 billion. • Reported operating loss reached RMB 3.78 billion; a sharp contrast to the RMB 10.79 billion profit in 1H 2025, reflecting higher investment in technology and new businesses. • Net loss totalled RMB 4.67 billion versus a profit of RMB 10.42 billion in the prior-year period.

Segment Highlights Core Local Commerce • Q2 revenue increased 10.1% to RMB 71.53 billion. • Operating profit rose 52.3% to RMB 5.67 billion; margin improved to 7.9%. • Key drivers: efficiency-focused food delivery, growing Meituan Instashopping orders, and higher merchant engagement across in-store, hotel and travel services.

New Initiatives • Q2 revenue jumped 25.0% to RMB 33.11 billion. • Operating loss narrowed to RMB 1.74 billion; loss ratio improved to ‑5.3%. • Grocery arm Xiaoxiang Supermarket extended into new cities, while overseas on-demand platform Keeta maintained profitability in Hong Kong and scaled in the Middle East and Brazil.

Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB 104.72 billion; short-term treasury investments reached RMB 63.60 billion. • Net cash position produced a negative gearing ratio of 10.5%. • During 1H 2026 the group generated RMB 2.72 billion in operating cash flow and spent RMB 10.31 billion on investing activities, mainly for CAPEX and investments.

Capital Management • Repurchased 2.92 million Class B shares in June for HK$199.76 million; 3.02 million Class B shares purchased in 2025 were cancelled in 2026. • Redeemed US$1.48 billion of 0% convertible bonds due 2028; outstanding balance fell to RMB 0.26 billion. • No interim dividend declared.

Strategic Developments • Accelerated AI deployment, launching the “Xiaotuan” consumer assistant and industry-specific AI agents for merchants. • Implemented nationwide occupational injury insurance for delivery riders and expanded initiatives to digitalise small- and medium-sized merchants in nearly 400 counties.

Outlook Management reiterated commitment to its “Retail + Technology” strategy, citing significant runway in on-demand services, grocery retail and international expansion, while maintaining disciplined investment in AI and supply-chain capabilities.