MEITUAN(03690)2022-09-21 09:59Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 97,207,117, representing a 20.3% increase from RMB 80,775,494 in the same period of 2021[18]. - Operating loss for the same period was RMB (6,077,080), which is 6.3% of total revenue, an improvement from RMB (8,018,712) or 9.9% in the previous year, reflecting a 24.2% decrease in losses[18]. - Adjusted EBITDA for the six months was RMB 1,961,970, compared to a loss of RMB (3,622,669) in the prior year, indicating a significant recovery[18]. - The company reported a net loss of RMB (6,818,593) for the six months, which is a 16.9% improvement from RMB (8,202,637) in the previous year[18]. - The adjusted net loss for the period was RMB (1,528,479), a significant reduction from RMB (6,108,858) in the same period last year, indicating improved operational efficiency[18]. - Total revenue for the six months ended June 30, 2022, was RMB 97,207,117 thousand, a significant increase from RMB 62,442,827 thousand for the same period in 2021, representing a growth of 55.6%[22][23]. - The company reported a significant increase in revenue from other services and sales, including interest income, which reached RMB 27,594,667 thousand for the six months ended June 30, 2022, compared to RMB 18,332,667 thousand in the same period of 2021, representing a growth of 50.5%[22][23]. - Revenue for the quarter ended June 30, 2022, increased by 16.4% year-on-year to RMB 50.9 billion, up from RMB 43.8 billion in the same period of 2021[29]. - The company recorded a net loss of RMB 11 billion in Q2 2022, an improvement from a net loss of RMB 34 billion in Q2 2021[48]. Revenue Segmentation - The core local business generated revenue of RMB 36,779,243, while new businesses contributed RMB 14,159,120, highlighting the growth in diversified revenue streams[19]. - Delivery services accounted for RMB 15,950,770 of total revenue, showcasing the strength of the delivery segment[19]. - The revenue from delivery services reached RMB 30,183,979 thousand for the six months ended June 30, 2022, compared to RMB 26,719,916 thousand for the same period in 2021, marking an increase of 5.2%[22][23]. - New business segment revenue grew by 40.7% year-on-year to RMB 14.2 billion, primarily driven by growth in the commodity retail business[35]. - The core local business segment's revenue grew by 9.2% year-on-year to RMB 36.8 billion in Q2 2022, up from RMB 33.7 billion in Q2 2021[41]. Cost and Expenses - The total cost of sales and operating expenses for the six months was RMB (51,431,201), reflecting the company's investment in growth despite the operating loss[19]. - The cost of sales and operating expenses for the six months ended June 30, 2022, totaled RMB 103,284,197 thousand, compared to RMB 52,900,164 thousand in the same period of 2021, indicating a rise in operational costs[22][23]. - Sales and marketing expenses decreased to RMB 8.99 billion in Q2 2022, down from RMB 10.85 billion in Q2 2021, representing 17.6% of revenue[40]. - Research and development expenses increased to RMB 5.20 billion in Q2 2022, up from RMB 3.90 billion in Q2 2021, accounting for 10.2% of revenue[40]. Operational Efficiency - The operating profit for the core local business segment grew by 39.7% year-on-year to RMB 8.3 billion, with an operating profit margin of 22.5%[29]. - Operating loss narrowed to RMB 492.84 million in Q2 2022 from RMB 3.25 billion in Q2 2021[37]. - The operating loss for the new business segment narrowed to RMB 6.8 billion, with an improved operating loss rate of 48.0%[35]. - The company is focusing on expanding its delivery network and enhancing digital solutions to support small and medium-sized businesses amid ongoing pandemic challenges[27]. Investments and Financial Position - Cash and cash equivalents, along with short-term investments, totaled RMB 25.5 billion and RMB 82 billion, respectively, as of June 30, 2022[29]. - The company reported a net cash outflow from investing activities of RMB 18.83 billion in Q2 2022, mainly due to investments in financial products and property[66]. - The total borrowings and payables amounted to RMB 60.7 billion as of June 30, 2022[68]. - The company's capital debt ratio was approximately 49% as of June 30, 2022, calculated based on total borrowings and payables divided by total equity attributable to equity holders[67]. Shareholder Information - As of June 30, 2022, the company had a total of 6,184,691,900 shares issued, including 678,249,783 Class A shares and 5,506,442,117 Class B shares[83]. - Sequoia Capital China Funds and Sequoia Capital Global Growth Funds collectively hold a 3.02% equity interest in the company, equivalent to 3.39% of the total issued Class B shares[83]. - The company operates with a dual-class voting structure, where Class A shares have 10 votes per share and Class B shares have one vote per share, allowing for significant voting control by certain beneficiaries[99]. Corporate Governance - The company has complied with all applicable corporate governance code provisions, except for the separation of the roles of Chairman and CEO, which are currently held by Wang Xing[104]. - The company is committed to maintaining strict corporate governance principles and enhancing transparency and accountability to shareholders[103]. - The corporate governance committee is responsible for ensuring the company's operations align with shareholder interests and compliance with listing rules[126]. Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2024[110]. - Future guidance indicates a projected revenue growth of 20% for the upcoming quarter[110]. - The management team emphasized the importance of financial discipline, aiming to reduce operational costs by 10% over the next year[110].