Meituan Announces Financial Results for the Year Ended December 31, 2022
Company Financial Highlights
During the full year of 2022, our revenues increased by 22.8% to
"In 2022, we continued to provide consumers with a rich product and service mix as a one-stop platform of services, helped millions of merchants enhance operating efficiency and generate income through digital transformation, and thus helped boost local consumption and created opportunities for employment," said Meituan Founder and CEO
Company Business Highlights
Core Local Commerce
In 2022, we achieved 17.6% revenue growth for the Core local commerce segment, despite negative impacts from the macro environment. Operating profit increased by 56.8% on a year-over-year basis to
For the fourth quarter of 2022, segment revenue increased by 17.4% on a year-over-year basis to
Our food delivery business posted steady, high-quality growth in 2022, with peak daily order volume surpassing 60 million. We iterated our business model and optimised our operations to meet broader consumer demand. In
For Meituan Instashopping, the consumer mindshare of delivering everything to their doorsteps has further strengthened. We effectively leveraged our experience in the on-demand delivery and the location-based operational capabilities to satisfy consumers' growing demand of broad range of e-commerce products. In 2022, both annual Transacting Users and annual Active Merchants of Meituan Instashopping increased by nearly 30% on a year-over-year basis, and the highest daily order volume exceeded 11 million in December. On the demand side, we effectively met consumer needs across different scenarios, such as delivering last-minute holiday gifts or the New Year special purchases. We also delivered essential medications to satisfy consumers' urgent needs during the pandemic, and expanded the delivery distance to city-wide. We ensured stable supply of medication and medical equipment at fair prices, and worked with local pharmacies to provide certain COVID-19 drugs and 24/7 "fever consultation" services for consumers. Subsequently, daily order volume of medicine peaked at 5.8 million in the fourth quarter. On the supply side, we continued to grow and diversify our merchant base, and helped traditional offline retailers digitise their operations. We leveraged our operational capabilities and experience from high-tier cities and replicated our success to many low-tier cities. We also onboarded a large number of chain supermarkets, and formed strategic collaborations with selected brands. As a result, categories such as electronics, beauty and personal care, mother and child supplies, and pet care, all experienced significant growth during festival promotions and marketing campaigns. We have high confidence in the future growth potential of Meituan Instashopping, and we will continue to help offline retailers with digital operations going forward.
The delivery network is at the core of our food delivery and Meituan Instashopping businesses, and it has always been our competitive advantage. While we guarantee delivery capacity and improve efficiency, we also created more job opportunities and continued to improve our couriers' benefits and advocate for their interests. When delivery capacity was tight during the peak of the pandemic, we launched various measures to stabilise delivery capacity, including expanding efforts in courier recruitment, providing cross-region order dispatches and offering additional subsidies to couriers. During the pandemic, we also provided free accommodations and service stations and increased the supplies of personal protective equipment for the couriers. We proactively responded to the government's call to provide flexible employment opportunities, and participated in the pilot program of occupational injury insurance. In addition, we continuously optimised our order dispatch system and the courier performance assessment mechanism, while strengthening the safety and protection policies for the couriers. Moreover, we provided couriers with career development opportunities, through promotions, job rotations and continuing education courses. Going forward, we will continue to invest in the safety and welfare for the couriers and ensure a better working environment for them.
Our in-store, hotel and travel business has been negatively affected by the repeated COVID outbreaks and prolonged pandemic control measures during 2022. In the fourth quarter of 2022, the year-over-year decrease of the in-store, hotel and travel revenue due to the negative impact of the pandemic, was to a similar extent as that of the second quarter. Despite the external challenges, our annual Active Merchants of the in-store, hotel and travel business maintained healthy growth on a year-over-year basis in 2022. We not only enhanced the quality of our supply, but also expanded the service scope, especially in the "silver economy" categories, and quickly penetrated into the elderly market. We also explored the evolving consumption trend among young people, with categories such as fitness, medical care, and pet care all posting solid growth. In addition, we continued to stratify our merchant base and assist merchants with digital operations. For example, we offered specially-tailored tools for "Time-honored Brands", allowing them to upload visually appealing contents to our platform, and expanded their customer acquisition channels. In addition, we refined our self-pickup services in combination with merchant traffic support and joint-marketing programs, to help merchants overcome difficulties during the pandemic. On the consumer side, we held promotions to celebrate holidays and special events, which effectively boosted local consumptions and optimised supply on our platform. Going forward, we will continue to enhance supply, address new consumption habits, and incentivise transactions. We believe that our rich product and content matrix, along with our strong consumer mindshare, will solidify our core advantages in this business.
For the most of 2022, strict travel controls remained in place, resulting in a prolonged depression of demand for hotel and travel. Despite external challenges, we leveraged our competitive advantages in local accommodation and short-distance travel scenarios, and further optimised our products, services, and marketing strategies. In addition, we diversified our Hotel+X packaged tours, launched joint marketing events with theme parks and major IP attractions, and deepened our collaborations with hotel brands. Moreover, we efficiently captured demand and stimulated hotel reservations. For high-star hotels, we continuously enhanced supply, optimised our pricing strategies, and improved service quality. On the low-star front, we solidified our market leadership, expanded supply, and optimised the online solutions that better match consumer demand. For the fourth quarter of 2022, despite the persisting negative impact from pandemic control in October and November, after the pandemic control was lifted in December, travel demand and hotel room nights rebounded immediately. We have full confidence in the future growth potential of the domestic travel industry in
In 2022, revenues from the New initiatives segment increased by 39.3% on a year-over-year basis to
For the fourth quarter of 2022, revenues from the New initiatives segment increased by 33.4% on a year-over-year basis to
For Meituan Select, after upgrading our brand positioning to "
Company Outlook and Strategy for 2023
Looking ahead to 2023, we will continue to implement our "Retail + Technology" corporate strategy, to provide consumers with rich selections of products and services, facilitate the recovery of local consumption, and create employment opportunities. While we optimise the on-demand delivery network, we continue to extend our product coverage from meals to non-meal categories, including groceries, daily necessities, medicines, and more, and will further strengthen consumer mindshare of convenience and being able to deliver everything to their doorsteps. On the merchant side, we will continue to optimise our comprehensive service offerings and online marketing tools, to help merchants improve operating efficiency and generate more income in the post-pandemic era. In addition, we will create a wide range of job opportunities while placing particular emphasis on the welfare and benefits of our couriers. Moreover, as we grow the goods retail businesses and continue to optimise our nationwide next-day logistics network, we will penetrate deeper into counties and villages, provide more diverse and cost-effective products for consumers from rural areas, improve fulfillment efficiency, and support the circulation of agricultural products. Furthermore, we are committed to innovate and leverage advanced technology, such as autonomous delivery vehicles and drones, to improve operating efficiency, bring more value for all the participants in our ecosystem, and continue to fulfill our mission that "We help people eat better, live better".
For the full announcement of
This press release contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.
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