Meituan Broadcasts Monetary Outcomes for the Yr Ended December 3…

HONG KONG, March 25, 2022 /PRNewswire/ — Meituan (HKG: 3690) (the “Firm”), China’s main e-commerce platform for providers, immediately introduced the audited consolidated outcomes of the Firm for the yr ended December 31, 2021.

Firm Monetary Highlights

In 2021, we upgraded our company technique from “Meals + Platform” to “Retail + Know-how”, additional increasing our product and repair choices to the broader retail, connecting with extra market members, and leveraging expertise to facilitate development throughout industries. Our companies development remained robust, with whole revenues rising by 56.0% yr over yr to RMB179.1 billion in 2021. The combination working revenue for the meals supply and the in-store, lodge & journey segments reached RMB20.3 billion in 2021, up from RMB11.0 billion in 2020. Working loss for the brand new initiatives and others section expanded as we remained dedicated to enterprise areas that might carry long-term worth. Each adjusted EBITDA and adjusted web revenue skilled year-over-year lower and turned to unfavourable RMB9.7 billion and adjusted web lack of RMB15.6 billion in 2021, respectively. Our web money flows from working actions turned to an outflow of RMB4.0 billion in 2021 from an influx of RMB8.5 billion in 2020. We had money and money equivalents of RMB32.5 billion and short-term treasury investments of RMB84.3 billion as of December 31, 2021, in comparison with the balances of RMB17.1 billion and RMB44.0 billion as of December 31, 2020, respectively.

“For the complete yr of 2021, we continued to innovate and leverage expertise to supply customers with extra numerous and higher-quality providers. In the meantime we have been dedicated to helping small- and medium-sized retailers speed up their digital transformation. Following our upgraded company technique ‘Retail + Know-how’, we expanded our items and providers metrics and improved our service high quality,” stated Meituan Founder and CEO Xing Wang.

“We consider that the basics of China’s long-term financial development won’t change. We’ll proceed to put money into expertise and unswervingly enhance our companies,” stated Wang. “In 2022, we are going to give attention to high-quality development, construct elementary capabilities for long-term improvement, assist retailers to cope with troublesome instances, carry extra comfort to individuals’s lives, create new types of digital life and employment alternatives, and higher fulfill our social duties primarily based on the general twin circulation financial improvement targets, really creating extra values for society,” concluded Wang.

Meituan CFO Shaohui Chen stated, “The native service trade underwent many challenges final yr. Serving to companions to beat difficulties was our high precedence, and it’ll proceed to be so in 2022. The event of Meituan is empowered by China’s financial atmosphere, and is supported by our retailers, couriers and customers. China has turn out to be the world’s largest and most vibrant shopper market. We consider that digital and retail transformation will proceed to spice up China’s economic system. We stay assured in our capacity to grab long-term alternatives and obtain sustainable development, and can proceed to create additional worth for all companions in our ecosystem.”

Firm Enterprise Highlights

Meals supply

Regardless of challenges from the macro atmosphere, pure disasters and sporadic COVID-19 outbreaks, our meals supply enterprise achieved robust development in 2021. Annual Transacting Customers and common transaction frequency broke report highs. Our every day order quantity exceeded 50 million in August and subsequently reached historic highs once more in December 2021. GTV elevated by 43.6% yr over yr to RMB702.1 billion, and income elevated by 45.3% yr over yr to RMB96.3 billion in 2021. Working revenue elevated to RMB6.2 billion in 2021 from RMB2.8 billion in 2020, whereas working margin elevated to six.4% from 4.3%. Our stable enterprise efficiency in 2021 was a testomony to our resilient enterprise mannequin and aggressive power in shopper base, service provider base and supply community.

For the fourth quarter of 2021, GTV of our meals supply enterprise elevated by 20.7% yr over yr to RMB188.6 billion, with every day common order quantity rising by 17.4% yr over yr to 42.5 million. Our revenues from meals supply enterprise elevated by 21.3% yr over yr to RMB26. 1 billion. Working revenue from our meals supply enterprise elevated to RMB1.7 billion for the fourth quarter of 2021 from RMB882.4 million for the fourth quarter of 2020, whereas working margin elevated to six.6% from 4.1%, primarily attributable to greater portion of on-line advertising and marketing providers income and decrease seasonal courier incentives.

We’re glad to see that meals supply has turn out to be a necessary service for customers. We’ve not solely diversified choices for customers, but additionally continued to establish the evolving consumption pattern and to advertise the expansion of recent consumption classes. Classes resembling late-night snacks, milk tea, salads and light-weight meals witnessed notable development throughout the yr. The rise in provide successfully incentivized greater order quantity from the mid- and high-frequency customers. In consequence, meals supply annual Transacting Customers elevated by 13% yr over yr, and annual common transaction frequency elevated by 25% yr over yr. The expansion demonstrates customers’ ongoing belief in our platform and their recognition of meals supply as an indispensable service in every day life.

On the service provider facet, we continued to assist thousands and thousands of eating places digitize their enterprise operations via complete providers and on-line advertising and marketing instruments, bringing extra enterprise volumes to assist retailers generate revenue below this difficult atmosphere. An rising variety of retailers used our on-line advertising and marketing merchandise and stepped up of their on-line promotions given the effectiveness of boosting shopper demand. We make our utmost efforts to know our retailers’ ache factors and deal with their points, as it’s essential for us to supply assist and create worth for them. In Could 2021, we rolled out a brand new payment construction that splits payment charged from retailers right into a expertise service payment, which is the fee income, and a meals supply providers payment. The brand new payment construction promotes extra clear pricing and clearer value constructions, and advantages nearly all of the small- and medium-sized retailers on our platform. Ranging from the fourth quarter of 2021, we individually disclosed the meals supply providers income to replicate this new payment construction in our monetary outcomes.

For the twelve months ended December 31, 2021, round 5.27 million meals supply couriers earned revenue via our Meituan platform. We continued to advertise our “Tongzhou Challenge” to make sure correct rights and pursuits of meals supply couriers, and prioritized enhancing courier expertise and making a optimistic ecosystem. To raised perceive the couriers’ wants, we held 136 courier suggestions periods in 2021. We continued to optimize our algorithms and guidelines taking into consideration the couriers’ suggestions. For instance, we modified the show of estimated supply time of every order from a degree of time to an prolonged time frame, assuaging strain of couriers throughout supply. In some areas, we launched numerous pilot packages, resembling solely scheduling courier pickup after meals are prepared to cut back the wait time and reassigning orders to different couriers in sudden conditions. These measures assist dispatch orders to couriers in a extra considerate method whereas guaranteeing their security, and allow couriers to earn comparatively greater revenue with extra affordable workload. We additionally labored with our supply companions to launch a pilot scheme to optimize the service high quality evaluation mechanism, which adjustments the apply of revenue discount because of shopper unhealthy critiques or late supply into level discount for the couriers, in order that they’ll make up for the lack of factors via different efficiency and actions. The couriers’ month-to-month rewards are linked to the accrued factors of the month. This optimized scheme successfully mitigates monetary impacts on couriers because of occasional, sudden conditions, whereas guaranteeing shopper expertise concurrently. Within the antagonistic climate situations within the fourth quarter, we elevated courier incentives and distributed a million items of chilly safety attire to couriers in affected markets. We additionally supplied free lodging and quarantine subsidies for couriers who have been affected by the COVID management measures. Moreover, we continued to implement numerous charity packages that provide assist for hundreds of couriers’ households. We supplied couriers with full scholarships, permitting them to undertake additional schooling and obtain a better diploma with out monetary burden. Within the meantime, we’re actively cooperating with the preparations of the pilot program that gives couriers with occupational damage insurance coverage, below the steerage of the related authorities. We’ll fulfill our company duties, be sure that the pilot program meets the deliberate timeline, and canopy all bills for collaborating couriers. Going ahead, we plan to supply couriers with a extra complete welfare scheme and employee advantages, together with continued enchancment on their sense of achievement and well-being.

In-store, lodge & journey

Regardless of the unfavourable impacts from sporadic COVID-19 outbreaks and macro atmosphere, our in-store, lodge & journey section nonetheless achieved stable development. Through the yr, we continued to carry broader consumption classes to deal with the ever-evolving calls for from customers, whereas onboarding extra retailers and introducing numerous on-line options to the retailers. In consequence, revenues from the in-store, lodge & journey companies elevated by 53.1% yr over yr to RMB32.5 billion in 2021. Working revenue from the in-store, lodge & journey companies elevated to RMB14.1 billion in 2021 from RMB8.2 billion in 2020, whereas working margin elevated to 43.3% from 38.5%.

For the fourth quarter of 2021, revenues from our in-store, lodge & journey companies elevated by 22.2% yr over yr to RMB8.7 billion. Working revenue for the section elevated to RMB3.9 billion from RMB2.8 billion for the fourth quarter of 2020, whereas working margin elevated to 44.7% from 39.5%, because of change in income combine.

For in-store, our transaction quantity, GTV, and annual lively retailers all reached report highs. We deepened penetration into lower-tier cities in China with broader protection scope, and helped speed up the digitization course of in these under-served markets. Classes resembling leisure and leisure, sports activities, aged care, medical care, and pet care demonstrated robust development momentum, whereas classes resembling handicraft actions, music recording, interactive mild exhibits, and stress reduction emerged as a brand new consumption pattern. Furthermore, we continued to introduce tailor-made services for retailers from completely different classes, serving to them enhance on-line operations. On the patron facet, we not solely provided more and more handy and numerous merchandise, but additionally successfully stimulated consumption via numerous advertising and marketing and promotional campaigns throughout vacation seasons, which additional strengthened shopper mindshare of Meituan because the “go-to vacation spot for native providers”.

For lodge & journey, though regional COVID-19 outbreaks and strict journey restrictions introduced unfavourable influence, we nonetheless withstood the challenges and helped lodge retailers recuperate. In 2021, our home lodge room nights grew 34.5%, because of the trade restoration and our strategic give attention to the home journey market, native lodging, and short-haul journey eventualities. As well as, we solidified our aggressive benefit within the low-star area, bringing offline customers to our on-line platform, and serving to extra lodge retailers digitize operations. For prime-star accommodations, room nights contribution exceeded 16.5% in 2021, because of our continued enchancment in high-star provide and shopper service high quality.

New initiatives and others

We continued to develop investments in new initiatives, particularly in items retail, as we upgraded to the “Retail + Know-how” technique. Revenues from the brand new initiatives and others section elevated by 84.4% yr over yr to RMB50.3 billion in 2021. Working loss from new initiatives and others section expanded to RMB38.4 billion in 2021 from RMB10.9 billion in 2020, whereas working margin decreased 36.6 proportion factors yr over yr.

For the fourth quarter of 2021, revenues from the brand new initiatives and others section elevated by 58.7% yr over yr to RMB14.7 billion. Working loss for the section elevated yr over yr to RMB10.2 billion for the fourth quarter of 2021, whereas the working margin improved to unfavourable 69.5% sequentially.

For Meituan Choose, because of clear regulatory steerage and optimistic market atmosphere, we achieved wholesome development as a significant market participant. We frequently iterated our enterprise mannequin and actively constructed up numerous features of our long-term capabilities. By frequently optimizing our operations at completely different nodes, we improved working effectivity and unit economics all through 2021. The three-level logistics community system established by Meituan Choose, which fulfills next-day pick-up orders, now covers nearly all of neighborhoods and villages in 30 provinces throughout China. We continued to supply bigger and extra numerous SKU choices whereas enhancing supply effectivity and reliability. The launch of our recent produce direct sourcing program allowed us to successfully match manufacturing and demand via each centralized and demand-based procurement course of, in flip producing extra revenues for farmers. Residents in rural areas even have extra handy entry to considerable and value-for-money every day requirements that beforehand solely city residents may get hold of, eliminating the urban-rural consumption hole and additional empowering fashionable agriculture. We launched a development scheme for brand new agricultural retailers to assist them frequently enhance cultivation strategies and supply vocational coaching in rural areas, specializing in e-commerce expertise and operations. Meituan Choose additionally offers a lot of versatile jobs for pick-up station managers, and creates an rising variety of job alternatives in logistics, warehousing, and processing. Because of our quickly constructed provide chain and logistics system, the Meituan Choose staff actively responded to the federal government’s name for help in Zhengzhou, Xi’an, and different cities affected by COVID-19 and pure disasters, offering a dependable provide of requirements to individuals in want. Trying ahead, strictly adhering to regulatory necessities is our high precedence, as we proceed to attempt for balanced, high-quality development. We’ll give attention to creating our personal capabilities, whereas enhancing shopper experiences.

Meituan Instashopping delivered one other stellar development in 2021, with highest every day order quantity exceeding 6.3 million in December 2021. Leveraging our location-based e-commerce platform and on-demand supply community, we provided customers numerous choices of retail items and handy on-demand supply providers, and efficiently transformed a lot of high-quality meals supply customers into Meituan Instashopping customers. On the provision facet, we expanded product classes and collaborated with extra high-quality native shops. We supplied native retailers with complete suites of on-line options and instruments, successfully serving to the shop homeowners digitize operations and enhance effectivity. In consequence, classes resembling flowers, supermarkets and comfort shops maintained excessive development momentum. Earlier this yr, we rolled out the 24/7 medication supply providers and acquired optimistic feedbacks from customers, because it addressed customers’ pressing wants for medication. We firmly consider that the endgame of the retail trade is “Every little thing Now”, and we are going to proceed to leverage our strengths and capabilities to facilitate such transformation.

For Meituan Grocery, we continued to develop our person base and GTV in 2021. After finishing protection in 4 current tier-one cities, we supplied extra numerous SKU choices and higher expertise for customers. We additionally optimized our product construction, enhanced warehousing and logistics capabilities, and refined operations at front-end distribution facilities, which altogether led to continued enchancment in effectivity and unit economies.

Firm Outlook and Technique for 2022

As we entered 2022, we nonetheless face challenges from COVID management measures and weakening consumption atmosphere. However, we’re assured that we can navigate via onerous instances and obstacles and obtain wholesome development, as we proceed to strengthen our elementary capabilities for the long run. With regard to our meals supply and in-store, lodge & journey segments, we are going to give attention to high-quality development, improve person expertise for each customers and retailers, solidify our aggressive benefit, and consistently enhance working effectivity. In the meantime, we stay dedicated to facilitating the digital transformation course of throughout industries, and can place extra emphasis on the long-term worth creation and social accountability achievement alongside the journey. Moreover, we are going to proceed to implement the upgraded “Retail + Know-how” technique, higher assist small and micro retailers to deal with troublesome instances, carry extra comfort to individuals’s lives, and specifically, present dependable provide of every day requirements for individuals within the affected areas by the pandemic. As our items retail enterprise grows, we develop our community of companions, from primarily urban- and county-based retailers to rural-based “new farmers”. We’ll commit our assist in selling “rural revitalization”, and can carry top quality services to tens of hundreds of villages in China. As well as, we are going to proceed to create a variety of job alternatives whereas putting specific emphasis on the welfare and desires of versatile staff. Significantly, for our meals supply couriers, we are going to at all times take their rights and pursuits as high precedence, and make our greatest efforts in enhancing their welfare and advantages. Final however not least, we are going to proceed to leverage expertise and improvements to carry extra worth for all of the market members, and contribute to the top quality improvement of digital economic system.

For the complete announcement of Meituan for 2021, please go to:

About Meituan

Meituan (HKG: 3690) (the “Firm”) is China’s main e-commerce platform for providers. With the mission of “We assist individuals eat higher, dwell higher,” the Firm’s platform makes use of expertise to attach customers and retailers. Service choices on the platform deal with individuals’s every day wants for meals, and lengthen additional to broad way of life and journey providers. Meituan is the world’s main on-demand meals supply service supplier and China’s main e-commerce platform for in-store eating providers. Meituan helps customers uncover service provider info, make knowledgeable selections, full on-line and offline transactions and luxuriate in on-demand supply. The Firm at the moment owns a number of family manufacturers in China, together with Meituan, China’s main on-line market for providers, Dianping, China’s main on-line vacation spot for locating native providers, Meituan Waimai for on-demand supply providers, and Meituan Bikes for bike-sharing providers. Meituan has 690.5 million Annual Transacting Customers and eight.8 million Annual Lively Retailers as of December 31, 2021. The Firm operates in over 2,800 cities and counties in China.

Ahead-Trying Statements

This press launch incorporates forward-looking statements regarding the enterprise outlook, forecast enterprise plans and development methods of the Firm. These forward-looking statements are primarily based on info at the moment out there to the Firm and are acknowledged herein on the premise of the outlook on the time of this press launch. They’re primarily based on sure expectations, assumptions and premises, a few of that are subjective or past our management. These forward-looking statements might show to be incorrect and is probably not realized in future. Underlying the forward-looking statements is a lot of dangers and uncertainties. Additional info relating to these dangers and uncertainties is included in our different public disclosure paperwork on our company web site.

For media inquiries, please contact:

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Edmond Lococo
ICR Inc.
E mail: [email protected]
Tel: +86 138-1079-1408

SOURCE Meituan

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