Meituan Posts 364.6% Profit Growth in Third Quarter of 2020

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Online shopping giant Meituan-Dianping has posted a strong performance in the third quarter of 2020 as China’s economy continues to convalesce from the Novel Coronavirus pandemic.

Meituan’s third quarter results released on 30 November indicate that its overall operating revenues saw a YoY increase of 28.8% to reach 35.401 billion yuan – an amount which also represented a 43.2% increase compared to the preceding quarter.

Operating profits rose 364.6% YoY to hit 6.724 billion yuan, as compared to a figure of 1.4 billion yuan in the third quarter of 2019. Under non-International Financial Reporting Standards, Meituan’s net profits saw a 5.8% rise in the third quarter to reach 2.055 billion yuan.

Revenues from food home deliveries rose 32.8% YoY in the third quarter to 20.693 billion yuan, and accounted for 58.45% of all revenues. Operating profits from food home deliveries saw a YoY increase of 132.2% to 769 million yuan, boosting the revenue-profit ratio from 2.1% to 3.7%.

Meituan dispatched 3.213 billion food deliveries in the third quarter, for a YoY increase of 30.1%, while these food deliveries were worth 152.233 billion yuan, for a YoY rise of 36%.

For the 12 months ending 30 September 2020 Meituan’s annual active vendors saw a 9.5% YoY increase to 6.5 million, while its annual transaction users rose by 9.4% to a record high of around 477 million.

Meituan also brought “Meituan Youxuan” (美团优选) – it’s “community purchase model” – online in the third quarter, in order to better compete against other Chinese e-commerce giants that have launched similar initiatives, including DiDi, Pinduoduo, Alibaba and JD.com.

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