Meituan, the star company of Hong Kong stocks, announced its results for the second quarter of this year on the evening of August 21st.

According to the data, Meituan's income growth changed from negative to positive in the second quarter, up 8.9% from a year earlier to 24.7 billion yuan. Among them, catering takeout is the strongest growth sector, with an income of 14.5 billion yuan, and the team of takeout boys has expanded to 2.95 million people. Meituan's annual trading users have increased to 460 million. In addition, Meituan's income from shopping for vegetables increased nearly fourfold and "Meituan selection" was launched in the second quarter. However, the revenue from the business of arrival and wine travel has declined compared with the same period last year.

Of course, the trend of Meituan's review this year is fierce, with the share price soaring 141% so far this year, with a total market capitalization of HK $1.44 trillion, making it the third largest Internet listed company in China after BABA and Tencent.

Operating income growth changed from negative to positive in the second quarter, and in the first half of the year.The total income is 41.5 billion yuan.

Meituan's total revenue in the second quarter of this year was 24.722 billion yuan, up 8.9% from a year earlier, compared with 22.7 billion yuan last year, according to the financial report. Meituan said that this growth is mainly due to steady growth in catering takeout business revenue and strong growth in new business revenue.

At the same time, Meituan's operating profit in the second quarter was 2.175 billion yuan, an increase of 95.5% over the same period last year, while the profit during the period was 2.21 billion yuan, a sharp increase of 152.4% over the same period last year. Adjusted EBITDA and adjusted net profit both achieved positive year-on-year growth, increasing to 2.6 billion yuan and 2.7 billion yuan respectively.

In addition, the operating cash flow commented by Meituan changed from-5 billion yuan in the first quarter of 2020 to 5.6 billion yuan in the second quarter.

The income growth in this quarter is mainly due to the effective control of the domestic epidemic and the significant pick-up in the consumer market. Meituan commented that although the epidemic continues to affect the daily operations of businesses such as restaurants, hotels and other local services, our business has shown strong resilience and is gradually recovering.

However, judging from the situation in the first half of this year, the total income was 41.476 billion yuan, down 1% from the same period last year, and it was still obviously affected by the epidemic; however, the operating profit changed from last year's loss to 459 million yuan this year, and the profit during the period changed from last year's loss to 631 million yuan this year.

Meituan CEO Wang Xing said, "this quarter, Meituan continues to give full play to the unique advantages of the city's new infrastructure, promote the recovery of life services, provide more consumers and businesses with a digital lifestyle and business model, and promote steady growth in both supply and demand. The epidemic has accelerated the digitization process in various industries, and let us see that the ability to accumulate long-term investment in the past continues to create greater value, strengthening the confidence to continue to invest in the future. We will focus on the Food+Platform' strategy and continue to increase investment in new business areas such as fresh retail and e-cycling to help people eat better and live better. "

The revenue of catering takeout in the second quarter is 14.5 billion yuan.The number of transaction users increased to 460 million

Catering takeout is still the strongest growth sector in Meituan's review.

According to the financial report, in the second quarter of this year, catering takeout revenue was 14.5 billion yuan, an increase of 13.2% over the same period last year; its operating profit was 1.3 billion yuan, compared with an operating loss of 70.9 million yuan in the first quarter. It can be seen that the food delivery business recovered obviously in the second quarter after the epidemic.

It is worth noting that the transaction volume of catering takeout business in the second quarter of this year was 108.8 billion yuan, an increase of 16.9 percent over the same period last year. The average daily transaction volume of catering takeout was 24.5 million, and the number of takeout orders exceeded 40 million on Aug. 8.

A more important figure is that the number of annual trading users reviewed by Meituan increased by 8.2% to 460 million compared with the same period last year, with an average of 25.7 transactions per user per year.

At the same time, the number of platform merchants rose to 6.3 million this quarter, and the epidemic accelerated the online development of catering merchants. In the second quarter, the number of brand merchants newly launched by Meituan takeout increased by more than 110% compared with the same period last year.

Meituan said that carrying out various promotional activities will help the food delivery business recover, and the "618 takeout Festival" cooperates with 4000 well-known catering companies. At the same time, through the effective catering takeout membership program, we can further increase the proportion of subsidies to the target consumer groups. Therefore, the order volume of takeout business achieved positive growth in the second quarter.

It is worth noting that Meituan is now also promoting unmanned distribution and other high-tech products. Meituan established the AI platform to build the infrastructure in the field of life services in the future, supported by scene and business-driven technology.

During this year's epidemic, Meituan landed an L4 unmanned distribution vehicle in Shunyi, Beijing, to carry out fresh distribution and has entered the stage of routine operation. At the same time, intelligent restaurant cabinets have been landed in many cities, and contactless distribution has been further upgraded.

In addition, the growth of the delivery business has also expanded the team of delivery brothers. in the first half of 2020, the number of riders earning income from the Meituan platform reached 2.952 million, of which 1.386 million were newly added.

Revenue from arrival and wine travel business decreased by 13.4% compared with the same period last year to launch the "reassuring consumption Festival".

However, although the arrival, hotel and tourism business in the second quarter of this year improved significantly compared with the previous quarter, it still faces challenges due to the uncertainty of the epidemic. Meituan commented on 4.5 billion yuan in revenue from the hotel and wine travel business in the second quarter, down 13.4% from the same period last year. However, the operating profit was 1.9 billion yuan, which was 11.9% lower than the same period last year, but it still increased by 178.1% compared with the first quarter of this year.

To this end, Meituan landed the "peace of mind consumption festival" in more than 60 cities in the first half of this year, working with the local government to distribute electronic coupons, including catering, hotels, shopping and other local service consumption scenarios. Among them, the May five-year Shopping Festival launched in cooperation with the Shanghai government has effectively led to an increase in sales of nearly 10,000 local life service cooperative merchants.

In addition, Meituan also carried out a series of promotional activities, including International Labour Day, Dragon Boat Festival and 618 Marketing Festival.

It is worth noting that Meituan released the "must Series list" (the new version in 2020) to guide consumers to high-quality businesses, because consumers are more sensitive to prices and pay more attention to health and safety during the epidemic, which has strong credibility.

In terms of wine and travel business, in the second quarter of this year, the number of domestic hotel nights consumed on the platform decreased by 17% compared with the same period last year, and continued to increase cooperation with more hotels through the "comfortable stay" program to provide guests with accommodation options that are more in line with their expectations and isolated environment. At the same time, Meituan also launched a "peace of mind travel" program to speed up the recovery of inter-city and local short-distance travel business.

Meituan also accelerated cooperation with high-star hotels, increasing the non-accommodation income of high-star hotels through the "Hotel + X" plan, and the revenue contribution of high-end hotels further increased compared with the same period last year.

Meituan's income from buying vegetables has increased nearly fourfold in the second quarter to launch "Meituan selection"

Meituan's new business, including Meituan's shopping, ride-hailing and bike-sharing, has also attracted market attention.

According to the financial report, Meituan's new business and other income was 5.6 billion yuan in the second quarter of this year, an increase of 22.1 percent over the same period last year. However, the operating loss widened from 1.4 billion yuan in the first quarter to 1.5 billion yuan in the second quarter. Mainly due to the expansion of B2B catering supply chain services, micro-loan business, Meituan shopping and Meituan flash shopping, to meet the increasing needs of users, thus increasing revenue; partly offset by the reduction of ride-hailing service revenue and restaurant management system revenue caused by the reduction of customer commuting times under the crowd aggregation control policy.

It is worth noting that Meituan flash purchase achieved revenue growth compared with the same period last year. "vegetable Daquan" is a new brand owned by Meituan Flash purchase, which helps more than 300 traditional food markets to achieve online sales and digital operation.

Meituan flash purchase of the platform model further enriches the diversity of products, including medicines, flowers and so on. Meituan is also doing a live broadcast, and the florist who tried the water for the first time sent nearly 20, 000 orders within an hour.

At the same time, Meituan, who adopts the self-supporting mode, has developed rapidly and achieved nearly four times the increase in income. Meituan Buy vegetables in the development of Beijing, Shenzhen and other cities, continue to expand the new town, has officially entered Guangzhou.

In addition, Meituan Optimum, which was just established in the second quarter of this year, which focuses on group buying in urban communities, launched the "Meituan Optimum" brand service in Jinan, Shandong Province in July to select cost-effective fresh food and daily necessities for family users in different communities. Webmasters are designated in each community to promote discounted food products through WeChat groups, and group members can place orders through WeChat Mini Programs and pick them up at the automatic pick-up point of a nearby convenience store the next day.

There is also the bike-sharing business. This quarter, Meituan launched about 1.5 million new bikes to replace old bikes. The average turnover rate of each bike has gradually increased and the unit economic benefits have been improved. At the same time, nearly 300000 motorcycles are invested. Compared with traditional bikes, e-bikes are not only a new high-frequency offline consumption scene, but also provide a better user experience through the improvement of vehicle models and cycling. Its high-frequency cycling scene also forms a strong synergy with the platform.

Meituan CFO Chen Shaohui said: "the digital trend will bring more opportunities, and we will adhere to the long-term philosophy and actively invest in new business areas with growth and long-term returns." We believe that Meituan's first-mover advantage in the local life service industry can better seize new opportunities, create collaborative value, and ultimately benefit both merchants, users and ecological participants. "

The share price soared 141% this year, with a total market capitalization of HK $1.44 trillion commented by Meituan

Of course, for the majority of investors, the most noteworthy is the stock price commented by Meituan. Although the Hang Seng Index has performed poorly this year and the Hong Kong stock market has been somewhat depressed, the stock price trend of Meituan's comments is quite different.

The trend of Meituan's comments was also relatively volatile at the beginning of the year, falling to a low of HK $70.10 in mid-March, but then rose all the way up, rising as high as HK $247.4. As of August 21, Meituan's latest closing price was HK $245.2, with a total market capitalization of HK $1.44 trillion. Since the beginning of the year, Meituan's review has risen 140.63%.

Among the major Internet technology companies in Hong Kong stocks, Meituan's market capitalization is only after BABA and Tencent, becoming the third largest Internet listed company in China.