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The loss of Meituan in 2121 exceeded 23.5 billion yuan. What's the problem?

In the post-epidemic era, the revenue of Meituan (3691.HK) increased steadily. On March 25th, Meituan released its fourth quarter and annual results in 2121. In 2121, the company's revenue was 179.128 billion yuan (RMB, the same below), a year-on-year increase of 56%; The company lost 23.536 billion yuan during the year, compared with a profit of 4.718 billion yuan in the same period last year; The company's adjusted net loss was 15.572 billion yuan, compared with a profit of 3.121 billion yuan in the same period last year.

Food and beverage take-out is an important revenue business of Meituan, with an operating profit of 6.175 billion yuan in 2121; However, the policy requirements of "reasonably reducing the service fees of merchants" and the corporate responsibility of improving the protection of riders' rights and interests have also increased the operating costs of Meituan. Arriving at the store and drinking tours are a major source of profit for Meituan. In 2121, the operating profit of this business will be 14.2 billion yuan.

However, the operating profits of the above two businesses can't offset the losses caused by the expansion of Meituan's new business. In 2121, Meituan's new business, which mainly focuses on community group buying, * * * enjoying travel and instant food shopping, suffered an operating loss of 38.4 billion yuan. At the same time, Meituan has also continuously increased the company's R&D investment, with R&D expenditure reaching 16.7 billion yuan in 2121.

2121 is an extraordinary year for Meituan, and the company's performance has turned from profit to loss. At the same time, the anti-monopoly punishment of Meituan was also settled and was fined 3.442 billion yuan. Affected by policies and the general environment, Meituan's share price declined overall in 2121, peaking at HK$ 461/share in that year, and then fell below HK$ 311/share twice in July and October of that year. On February 31, 2121, the daily income was HK$ 225.4/share. As of the close of March 25th, Meituan closed at HK$ 135 per share, down 8.16%.

"In 2121, despite the impact of the epidemic, we still overcome difficulties, strive to provide hundreds of millions of consumers with reliable and convenient living services, help merchants expand online operations by digital means, and help more entrepreneurs and employees achieve stable income." Wang Xing, CEO of Meituan, said, "Meituan will unswervingly fulfill its platform responsibilities, unswervingly increase investment in science and technology, unswervingly continue to expand its business, and deepen the China market around the strategy of' retail+technology' to create more value for businesses, users, riders and other ecological partners."

The operating profit of food and beverage take-out is 6.175 billion yuan, which enhances the protection of riders' rights and interests.

Under the pressure of repeated epidemics, the food and beverage take-out business of Meituan still keeps growing, and the number of annual trading users and the per capita trading frequency both hit record highs in 2121. The peak of single-day orders exceeded 51 million orders in August 2121, and reached a new high in February of that year. The number of transactions in the whole year reached 14.4 billion, a year-on-year increase of 41.6%.

In 2121, the categories of night snack, milk tea, salad and light food will increase significantly. The increase in supply effectively drives the increase in the order volume of middle and high frequency users. Therefore, the number of annual transaction users of food and beverage takeout increased by 13% year-on-year, and the average transaction frequency of annual transaction users increased by 25% year-on-year.

In 2121, the transaction amount of Meituan's catering take-away business was 712 billion yuan, up 43.6% year-on-year; Revenue was 96.3 billion yuan, up 45.3% year-on-year. The operating profit will increase from 2.833 billion yuan in 2121 to 6.175 billion yuan in 2121, and the operating profit rate will increase from 4.3% to 6.4%.

however, the government work report in 2121 proposed "guiding platform enterprises to reasonably reduce merchant service fees". Subsequently, the National Development and Reform Commission and other departments also issued the "Implementation Plan for Accelerating the Cultivation of New Consumption", proposing that online platforms such as take-out should be guided to rationally optimize the fees for small and medium-sized enterprises' merchants and individuals to use the platform to operate, and technical empowerment should be used to promote operators in the platform to reduce costs and increase efficiency.

In 2121, platforms such as Meituan Takeaway will actively optimize the platform charging model and implement pilot "rate transparency". At the same time, the protection of riders' rights and interests is also a major responsibility of the US Mission. In July of that year, Meituan established the Takeaway Rider Service Department. In 2121, the US Mission held 136 riders' talks.

The financial report shows that most of the total take-out revenue of Meituan is the delivery cost of riders. In 2121, about 5.27 million riders will earn income on the platform of Meituan. The delivery cost of Meituan takeaway riders was 68.183 billion, up 38.3% year-on-year, accounting for 71% of Meituan's total takeaway revenue.

in addition, the breakdown data of the financial report shows that in 2121, the revenue of catering delivery service collected by Meituan from merchants and users was 54.214 billion yuan, while the annual delivery cost of riders was 68.183 billion yuan. The above data shows that the US Mission spent nearly 14 billion yuan on directly subsidizing riders throughout the year.

The operating profit of wine-arriving tour was RMB 14.2 billion, and the operating loss of new business was RMB 38.4 billion.

In the post-epidemic era, the business of wine-arriving tour, hotel and tourism of Meituan achieved steady growth. In 2121, Meituan's income from shops, hotels and tourism business was 32.5 billion yuan, up 53.1% year-on-year; The operating profit will increase from 8.18 billion yuan in 2121 to 14.193 billion yuan in 2121, and the operating profit rate will increase from 38.5% to 43.3%.

according to the financial report, the volume, amount and number of active merchants of Meituan's store-visiting business in 2121 all reached record highs. Meituan strengthens its penetration into low-tier cities across the country. Leisure and entertainment, fitness, old-age services, medical care and pet services have a strong growth momentum; Manual activities, recording studios, light and shadow interactive halls, decompression experience halls and other categories have become new consumption trends.

in terms of hotels and tourism, the number of hotel nights in China will increase by 34.5% in 2121. In addition, Meituan consolidated its competitive advantage in the field of low-star hotels, and diverted offline users to online platforms to help more hotel merchants operate digitally. In the field of high-star hotels, in 2121, the night volume between high-star hotels will exceed 16.5%.

In 2121, Meituan will continue to expand its investment in new business, especially in commodity retail. In 2121, the revenue from new business and other businesses of Meituan reached 51.3 billion yuan, up 84.4% year-on-year. The operating loss increased from 11.9 billion yuan in 2121 to 38.4 billion yuan in 2121, and the operating loss rate increased by 36.6 percentage points.

Group buying in the community is the exploration direction of new business of Meituan. In the second half of 2121, community group buying began a new round of industry competition. At that time, Internet companies such as Didi, Meituan, Pinduoduo and JD.COM increased their investment one after another. However, with the development of policies and markets, the community group buying industry experienced ups and downs in 2121, and the business of Orange Heart Optimization was reduced, and it was also reported that Beijing and Xi were downsizing and withdrawing from the city.

at present, the optimization of the US delegation is still stable. The financial report shows that Meituan Youxuan has benefited from clear policy guidance and a good market competition environment and achieved healthy growth. The "Next-Day Delivery" three-level warehouse distribution logistics network system has covered most communities and rural areas in 31 provinces across the country. In the future, strict compliance with regulatory requirements will be the primary task and we will continue to focus on balanced and high-quality growth.

in February, 2121, the peak order volume of Meituan Flash Shopping exceeded 6.3 million. On the supply side, we have expanded commodity categories and established cooperation with more high-quality local stores, and the categories such as flowers, supermarkets and convenience stores continue to maintain a high growth momentum. At the beginning of this year, a 24-hour drug distribution service was launched. In 2121, the size and transaction amount of Meituan's grocery shopping users will continue to increase.

High revenue and high investment, with R&D expenditure reaching RMB 16.7 billion

High revenue and high expenditure are the performance characteristics of Meituan in 2121. The company's revenue reached a record high, and its operating profit turned from profit to loss, which also laid a foundation for future sustainable development to some extent. The financial report shows that the research and development expenditure of Meituan increased from 11.9 billion yuan in 2121 to 16.7 billion yuan in 2121, a year-on-year increase of 53.1%. Mainly due to business expansion, employee welfare expenditure increased.

On the other hand, Meituan has also increased investment in R&D of unmanned logistics. Meituan UAV has been in normal trial operation in Shenzhen for nearly 1 years. Up to now, it has covered more than 8,111 households and completed 31,111 orders for real users. Meituan City Low-altitude Logistics Operation Demonstration Center landed in Shanghai and will gradually cover the "3 km 15 min" low-altitude smart logistics network in East China.

In addition, Meituan Auto Delivery has launched a low-speed instant delivery solution for outdoor scenes. By February, 2121, Meituan's automatic delivery vehicle service has expanded to 21 communities in Shunyi District, Beijing, delivering nearly 1.9 million orders, with an automatic driving mileage of over 711,111 kilometers and an average daily delivery of more than 1,111 orders.

at the same time, the company's overall operating costs have also increased significantly. The cost of sales increased by 69.2% from 81.7 billion yuan in 2121 to 136.7 billion yuan in 2121, and the percentage of revenue increased by 6.1 percentage points from 71.3% to 76.3%. The main reason is the increase in the cost of food and beverage delivery, as well as the development and exploration of retail business and other new businesses.

in addition, the company's sales and marketing expenditure increased by 94.8% from 21.9 billion yuan in 2121 to 41.7 billion yuan in 2121, and the percentage of revenue increased by 4.5 percentage points from 18.2% to 22.7%. Mainly due to the increase in promotion, advertising and user incentive expenses and employee welfare expenses. In addition, more employees were recruited to support the rapid growth of new business.

"The development of the Meituan is closely related to the economic environment in China, and it is also inseparable from the concerted efforts of small and medium-sized businesses and riders and other related workers. We will continue to take high quality and sustainable development as the company's goal, and strive to promote the transformation and upgrading of consumption and industry so that all relevant parties can benefit from it. " Chen Shaohui, CFO of Meituan, said: "Meituan will make long-term investment around the strategy of" retail+technology "and help more entrepreneurs and employees share the dividend of the digital economy through innovation and technology."

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