Meituan has unveiled its financial report for the second quarter of 2025, revealing a 7.7% year-on-year surge in its core local business revenue, amounting to RMB 65.3 billion. Nevertheless, the operating profit margin witnessed a steep decline of 19.4 percentage points, settling at 5.7%. This significant drop in the core business's operating profit was primarily attributed to the heightened competition within the food delivery market. Concurrently, the company's nascent businesses incurred increased operational losses stemming from their international expansion endeavors. Consequently, Meituan's adjusted EBITDA and net profit declined by 81.5% and 89%, respectively. Despite these challenges, Meituan maintained robust cash flow, with cash and equivalents exceeding RMB 100 billion during the quarter.

CEO Wang Xing emphasized that the company opposes a culture of internal competition and is steadfast in pursuing long-term profitability. While acknowledging that certain financial metrics may encounter pressure in the third quarter, he remains confident that market competition will eventually revert to a more rational state. Wang Xing specifically noted that Meituan Waimai aims to achieve a profit margin target of approximately 3% and that subsidies, as a strategy, are not seen as a sustainable long-term solution.