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The call balanced strong operational and strategic positives — robust user and engagement growth (DAU +20%), notable progress in quick commerce, membership upgrades, AI milestones, Keeta achieving profitability in Hong Kong, and a healthy cash buffer (RMB 141.3bn) — against significant near-term financial pain: meaningful operating and adjusted net losses (RMB 15.3bn and RMB 16.0bn), negative operating cash flow (RMB -22.1bn), and sharp margin compression driven by elevated incentives and marketing spend. Management framed losses as deliberate, strategic investments to defend leadership and grow long-term value. Given sizable operational strengths and clear strategic rationale but material near-term financial deterioration, the overall tone is cautious and transitional.
Management's guidance emphasized continued strategic investment in Q4 even as Q3 showed modest top‑line growth and pressured profitability: Q3 revenue was RMB95.5bn (+2% YoY) with a total segment operating loss of RMB15.3bn and an adjusted net loss of RMB16bn; cost of revenue was 73.6% (+12.9pp YoY), S&M 35.9% (+16.7pp), R&D 7.3% and G&A 3.1%; cash and short‑term investments were RMB141.3bn and operating cash flow was -RMB22.1bn. Management said food‑delivery losses likely peaked in Q3 but will remain substantial in Q4 as they defend leadership (long‑term target: 100m high‑quality daily orders), and Instashopping losses may widen slightly in Q4 even as new initiatives revenue grew 15.9% YoY to RMB28bn with operating loss narrowing QoQ to RMB1.3bn (4.6%). Operationally they highlighted app DAU +20% YoY, food‑delivery DAU/MTU at all‑time highs, GTV share for net AOV>RMB15 >2/3 and >70% for >RMB30, Keeta profitable in Hong Kong (Oct, ~29 months post‑launch), InstaMarts at 207, merchant/user bases ≈+20% YoY, and >20bn reviews (3.5bn added in past 12 months).
Meituan app DAU jumped over 20% year-over-year in Q3 2025; platform serves over 800 million consumers. Food delivery DAU and MTU hit all-time highs and core users transact at least weekly with top-tier users engaging daily.
Total revenue increased 2% year-over-year to RMB 95.5 billion. New initiatives segment revenue grew 15.9% year-over-year to RMB 28.0 billion driven by grocery retail and overseas expansion.
Meituan Instant Shopping reported higher new user growth and purchase frequency in Q3; company expanded InstaMart footprint (noted extension of 207 InstaMarts/pharmacies) and launched branded flagship InstaMart to support brands and 30-minute delivery.
After 6 months of iterating Meituan membership, mid-tier users upgraded tiers and high-value members continued to grow, driving higher member transaction frequency and supporting cross-selling across local services.
Company expanded courier welfare programs: nationwide courier pension insurance subsidy beginning November, occupational injury insurance extended to 17 provinces, and multiple welfare measures (critical illness support, education funds, meals, health checks, courier facilities).
Investments in AI accelerated: launched LongCat-Flash series models, rolled out AI tools for merchants, and began large-scale testing of consumer AI agent Xiaomei and integration of AI agent functions into the Meituan app.
Platform accumulated over 20 billion consumer reviews (≈3.5 billion new reviews in past 12 months) and expanded high-quality lists (Black Pearl Guide, Must-Eat lists) to more cities to strengthen discovery and trust.
Keeta achieved profitability in Hong Kong in October 2025 (29 months after launch). Company expanded Keeta into Qatar, Kuwait, UAE (Sept) and began a pilot in Brazil (Oct).
Held RMB 141.3 billion in cash, cash equivalents and short-term treasury investments as of September 30, 2025, providing a liquidity buffer for continued investments.
Thank you for standing by, and welcome to the Meituan Third Quarter 2025 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Scarlett Xu, VP and Head of Capital Markets. Please go ahead.\
Thank you, operator. Good evening, and good morning, everyone. Welcome to our Third Quarter of 2025 Earnings conference call. Joining us today are Mr. Xing Wang, Chairman and CEO; and Mr. Shaohui Chen, Senior Vice President and CFO of Meituan. For today's call, management will first provide a review of our third quarter of 2025 results and then conduct a Q&A session. Before we start, we would like to remind you that our presentation contains forward-looking statements which include a number of risks and uncertainties and may differ from actual results in the future.
This presentation also contains unaudited non-IFRS accounting standards financial measures that should be considered in addition to and not as a substitute for measures of the company's financial performance prepared in accordance with IFRS Accounting Standards. For a detailed discussion of risk factors and non-IFRS accounting standard measures, please refer to disclosure documents in the IR section of our website. Now I will turn the call over to Mr. Xing Wang.\
Thank you, Scarlett. Hello, everyone. We are in the third quarter, we actively responded to the shift in the competitive landscape of food delivery and quick commerce. Meituan remains the go-to platform of local services for Chinese consumers. Over 800 million consumers use our services, covering everything from food and din...