Meituan boosts earnings by over 46% in Q1 2025

In the first quarter of 2025, Meituan, a prominent Chinese service platform, announced its earnings, which exceeded analyst expectations significantly. The company reported a remarkable 18.10% increase in revenue, amounting to RMB 86.56 billion, compared to RMB 73.28 billion in the previous year. Adjusted net income also saw substantial growth; it rose by 46.20% to reach RMB 10.95 billion. This performance stood in stark contrast to market anxieties related to external pressures, including the influence of US tariffs on their operations. During the same reporting period, shares of PDD Holdings also saw an increase in revenue of 10% to reach RMB 95.67 billion, though this figure fell short of expectations. Adjusted net income for PDD increased modestly by 4.4% compared to the same timeframe. These results reflect broader trends and challenges in the Chinese e-commerce landscape, particularly affecting companies like PDD that are navigating a competitive environment against issues such as tariff changes. Furthermore, the Chinese equity markets exhibited mixed signals during this time, driven by factors such as the strengthening US dollar and sector-specific price adjustments. For instance, electric vehicle manufacturers faced significant price wars, exemplified by BYD Company Limited's strategic price cuts, leading to modest market rebounds in other sectors. Internet stocks, including Meituan, had a favorable reaction post-earnings announcement, showcasing resilience amid competition. In the midst of these developments, Meituan's Chairman, Mr. Lei Chen, emphasized their substantial investments in enhancing their platform ecosystem. This strategy aims to provide robust support for both merchants and consumers, showcasing Meituan's commitment to navigating a rapidly changing external environment.