Meituan comments: the revenue of the second quarter was 24.72 billion yuan, and the profit increased by 152%

According to the news on August 21, meituan reviews announced its mid-term results. In the second quarter of 2020, the revenue was 24.72 billion yuan, and the market expected 23.386 billion yuan, compared with 22.703 billion yuan in the same period last year. The company realized a profit of 2.21 billion yuan, a year-on-year increase of 152.4%. After adjustment, the net profit was 2.718 billion yuan, up 82% year on year. < / P > < p > our revenue increased by 8.9% from RMB 22.7 billion in the second quarter of 2019 to RMB 24.7 billion in the same period of 2020. The increase was mainly driven by the steady growth of our catering takeaway business revenue and the strong growth of new business revenue. < / P > < p > the revenue of the catering takeaway segment increased by 13.2% from RMB 12.8 billion in the second quarter of 2019 to RMB 14.5 billion in the second quarter of 2020. Commission revenue increased by 8.6% to RMB 12.7 billion, which was due to (I) an increase of 6.9% in order volume and an increase in order price of more trading users or an increase of 9.4% in average order amount from brand restaurants; and (II) a decrease of 0.4% in liquidity rate to 13.4% was due to increased subsidies to trading users and orders from brand merchants on the platform The proportion increased. Online billion yuan, mainly due to the number of active online marketing businesses and the increase in the contribution of businesses. < / P > < p > the revenue of the arrival, hotel and tourism segments decreased by 13.4% from RMB 5.2 billion in the second quarter of 2019 to RMB 4.5 billion in the same period of 2020, which is mainly due to the reduction of commission income due to the incomplete recovery of the arrival, hotel and Tourism segments from the epidemic. < / P > < p > revenue from new business and other segments increased by 22.1% from RMB 4.6 billion in the second quarter of 2019 to RMB 56.1% in the same period of 2020 This is mainly due to the expansion of B2B catering supply chain service, micro loan business, meituan vegetable shopping and meituan flash purchase business to meet the increasing demand of users, thus increasing the revenue; partly offset by the decrease of online car Hailing service revenue and the decrease of restaurant management system revenue due to the reduction of customer commuting times under crowd aggregation control policy. In the second quarter of 2020, the sales and marketing expenditure was 4.2 billion yuan, and 4.1 billion yuan in the same period of 2019, accounting for the percentage of revenue decreased by 1.4 percentage points to 16.9% from 18.3%. Promotion and advertising expenses increased by 109.8 million yuan, mainly due to our increased promotion activities, partially offset by a decrease of 92.8 million yuan in incentives for trading users of various businesses. We adjusted our marketing strategy to deal with the epidemic, resulting in a decline in our sales and marketing expenses as a percentage of revenue. < / P > < p > R & D expenditure increased from 2 billion yuan in the second quarter of 2019 to 2.4 billion yuan in the same period of 2020, accounting for 9.0% of revenue, an increase of 0.6 percentage points to 9.6% year-on-year. The increase in amount and percentage of income was mainly due to the increase in the number of employees. General and administrative expenses increased from RMB 1 billion in the second quarter of 2019 to RMB 1.2 billion in the same period of 2020, which was the same as that in the same period last year. The increase was mainly due to an increase in the number of employees. < / P > < p > the net provision for impairment loss of financial assets decreased from RMB 138.7 million in the second quarter of 2019 to RMB 45.7 million in the same period of 2020, representing a year-on-year decrease of 0.4 percentage points to 0.2% in revenue, which was mainly due to the improvement of small loan assets. < / P > < p > in the second quarter of 2020, the income from changes in fair value of other financial investments measured at fair value through profit or loss was RMB 346.7 million, while in the second quarter of 2019, it was RMB 323.7 million. This change is mainly due to the change in the fair value of a financial investment in a listed entity. < / P > < p > in the second quarter of 2020, our net other income increased by RMB 151.8 million to RMB 1 billion compared with the same period in 2019, mainly due to the increase of tax return and tax preference, partially offset by the decrease in financial investment income and income from sale and remeasurement of equity investment. As a result of the above reasons, our operating profit and operating profit margin in the second quarter of 2020 were RMB 2.2 billion and 8.8%, respectively, compared with RMB 1.1 billion and 4.9% in the same period of 2019. < / P > < p > the operating profit of the catering takeaway segment increased from RMB 756.3 million in the second quarter of 2019 to RMB 1.3 billion in the same period of 2020, mainly driven by the increase in revenue and gross profit. The operating profit margin of the division increased by 2.7 percentage points to 8.6% from 5.9% on a year-on-year basis, which was mainly due to (I) the increase in the average order amount brought about by the increase in the proportion of orders to brand restaurants, which was partly offset by the higher subsidies given to trading users to increase the order volume; and (II) the revenue portfolio changes brought about by the increase in the proportion of online marketing revenue. < / P > < p > the operating profit of the stores, hotels and tourism segments decreased by 11.9% from RMB 2.1 billion in the second quarter of 2019 to RMB 1.9 billion in the same period of 2020, mainly due to the decrease of commission and online marketing revenue, which was partly offset by the decrease of transaction user incentives and promotion and advertising expenses. The operating profit margin of the division increased by 0.7 percentage points to 41.6% from 40.9% on a year-on-year basis, which was mainly due to the decrease in subsidies, which was partly offset by the increase in R & D expenditure. < / P > < p > operating losses in new businesses and other segments narrowed from a negative value of 1.6 billion yuan in the second quarter of 2019 to 2020 The negative value of 1.5 billion yuan in the same period of the year was mainly due to (I) the decrease in operating losses of bike sharing services, which was due to the longer service life and lower maintenance costs of meituan bicycles compared with the old bicycles; and (II) the increase in operating profits from the development of micro loan business; some of which were caused by business expansion, resulting in an increase in operating losses of miscellaneous retail business and the operation of some other new businesses This was offset by an increase in losses. The operating profit margin of the division narrowed from a negative value of 35.7% to a negative value of 25.9% on a year-on-year basis, which was mainly due to the improvement of operating profit margin of bike sharing service, restaurant management system and micro loan business. Due to the above reasons, our profit before income tax in the second quarter of 2020 was RMB 2.2 billion, compared with RMB 1.1 billion in the same period in 2019. < / P > < p > in the second quarter of 2020, we had an income tax credit of RMB 13.0 million, compared with an income tax expense of RMB 226.0 million in the same period in 2019, mainly due to the year-on-year decrease in profits of several entities. Due to the above reasons, we recorded a profit of RMB 2.2 billion in the second quarter of 2020, compared with RMB 875.8 million in the same period in 2019. < / P > < p > although the covid-19 epidemic continues to affect the daily operations of our businesses, including restaurants, hotels and other local services, our business shows strong resilience and gradually recovers. Total revenue increased by 8.9% from 22.7 billion yuan in the same period of 2019 to 24.7 billion yuan in the second quarter of 2020. In the second quarter of 2020, the operating profit margin increased from 4.9% to 8.8%. Both adjusted EBITDA and adjusted net profit increased to RMB 2.6 billion and RMB 2.7 billion respectively. The operating cash flow changed from a negative value of 5 billion yuan in the first quarter of 2020 to a positive value of 5.6 billion yuan in the second quarter of 2020. As of June 30, 2020, we had cash and cash equivalents of RMB 13.9 billion and short-term investment of RMB 44.5 billion, while the related balances as of March 31, 2020 were RMB 14.1 billion and RMB 42.4 billion, respectively. < p > < p > in the second quarter of 2020, the transaction amount of our catering delivery business increased by 16.9% to RMB 108.8 billion. The average daily transaction volume of catering delivery increased by 6.9% to 24.5 million. The average value of each catering delivery order increased by 9.4% year-on-year. The realization rate of catering takeaway business 2 decreased from 13.8% in the same period of 2019 to 13.4% in the second quarter of 2020. As a result, food and beverage takeout revenue increased by 13.2% year-on-year to 14.5 billion yuan in the second quarter of 2020. In the second quarter of 2020, the operating surplus of catering delivery business will turn to be positive RMB 1.3 billion, while in the first quarter of 2020, the operating loss will be RMB 70.9 million; the operating profit margin will change from negative value of 0.7% to positive value of 8.6%. In addition, the operating profit of catering delivery business increased by 65.7% year-on-year, while the operating profit margin increased by 2.7%. < / P > < p > despite the continuing impact of the epidemic, we further demonstrate the unique competitiveness of our business model and the rigid demand of consumers and businesses for food and beverage delivery services. In particular, our real-time response to the new covid-19 cases in Beijing shows that our experience in dealing with the recurrence of the covid-19 epidemic is improving. In order to ensure the safety of distribution riders and consumers, we have taken a variety of measures, including real-time nucleic acid detection for all distribution riders in Beijing, expanding the application of “intelligent eating cabinet” in the city, and further upgrading our contactless distribution process. For businesses, we launched targeted support and commission return programs to help them better cope with the repeated covid-19 epidemic in Beijing. We have also opened a portal for businesses to upload negative nucleic acid test certificates to provide consumers with additional food safety protection. < / P > < p > in the second quarter of 2020, we continue to carry out a variety of promotional activities to promote the recovery of catering delivery business. For example, we have launched the 618 takeaway Festival and cooperated with about 4000 well-known catering businesses to provide consumers with rich and attractive promotional activities. We also accurately identify changes in consumer behavior and actively promote their consumption of afternoon tea and supper through targeted promotional activities. In addition, we further increase the proportion of subsidy distribution to target consumer groups through an effective catering takeaway membership program. As a result, the order volume of our catering takeout business has achieved a positive year-on-year growth in the second quarter of 2020, with an average daily transaction volume of catering delivery increasing by 6.9% to 24.5 million. < p > < p > on the merchant side, with the further recovery of business operation and consumer consumption, the marketing demand of businesses in the second quarter of 2020 will be strong. At the same time, during this period, the epidemic accelerated the online of catering merchants and increased the supply of high-quality merchants on our platform. It is worth noting that in the second quarter of this year, the number of new brand merchants of meituan takeout increased by more than 110% year-on-year. The increasing demand for online traffic from businesses has promoted their adoption. In the second quarter of our online year, our online marketing service revenue achieved a rapid growth of 62.2% year-on-year. < / P > < p > at the distribution side, we further improved the distribution efficiency in the second quarter of 2020, as we further improved the algorithm of intelligent scheduling system and continuously optimized the operation capacity of distribution network. In addition, sufficient capacity and favorable weather conditions across the country have enabled us to reduce the amount of seasonal incentives paid to distribution riders compared to the previous quarter. These factors jointly promote us to better control the delivery cost of each order on a year-on-year and month on month basis. At the same time, after the outbreak of covid-19, the importance of timely distribution network as the main component of social logistics infrastructure has become increasingly prominent. Our distribution network helps to ensure the continuity of people’s daily life during the epidemic period and creates a large number of employment opportunities, thus promoting social stability