Economic Observer Network reporter Ren Xiaoning On the afternoon of March 22, Meituan (03690.HK) released its fourth quarter and full-year financial report for 2023. Annual revenue was 276.7 billion yuan, a year-on-year increase of 25.8%, and net profit was 13.9 billion yuan. Thi

entertainment 3224℃

Economic Observer Network reporter Ren Xiaoning On the afternoon of March 22, Meituan (03690.HK) released its fourth quarter and full-year financial report for 2023. Annual revenue was 276.7 billion yuan, a year-on-year increase of 25.8%, and net profit was 13.9 billion yuan. Thi - Lujuba

Economic Observer Network reporter Ren Xiaoning On the afternoon of March 22, Meituan (03690.hk) released its fourth quarter and full-year financial report for 2023. Annual revenue was 276.7 billion yuan, a year-on-year increase of 25.8%, and net profit was 13.9 billion yuan. This is a good result, because Meituan lost 6.7 billion yuan in 2022.

But Meituan is still in a difficult moment in 2023. Meituan’s stock price fell by 49% this year, and its local life field has also been coveted and robbed by many major Internet companies.

Meituan did not announce GMV (total transaction volume) in its financial report. However, according to Haitong International Research Report, Douyin’s local life’s gtv (total transaction volume after write-off) in 2023 will be close to 200 billion yuan.

It is worth noting that Meituan’s marketing costs will increase significantly in 2023. Financial report data shows that Meituan’s sales and marketing expenses in 2023 will be 58.6 billion yuan, a year-on-year increase of 47.5%. The financial report explained that (the increase) was mainly due to the increase in transaction user incentives, promotion and advertising expenses caused by consumption recovery, business environment and changes in business strategies. This year, Meituan launched merchant incentives and joint marketing plans and increased user subsidies.

Judging from the core data, although competition will be fierce in 2023, Meituan has maintained its basic market. Revenue from its core local commercial segment was NT$206.9 billion, a year-on-year increase of 28.7%.

Meituan’s core local businesses include food delivery, flash sales, in-store hotel and travel services, etc. The financial report explained that its revenue growth was mainly due to the increase in the number of transactions and the number of active merchants. In 2023, Meituan’s instant delivery transactions reached 21.9 billion, a year-on-year increase of 23.9%. Flash sale order volume increased by more than 40% year-on-year. The year-on-year growth of GTV for hotel and travel services exceeded 100% year-on-year.

Under the pressure of competition, Meituan’s core local business continues to adjust its structure. In mid-September last year, Meituan promoted five managers to vice presidents, the largest promotion in the past few years. At the end of September, Li Shubin, the head of the Meituan platform and vice president, was promoted to senior vice president. Entering 2024, Meituan’s structural adjustment will continue. In February this year, Meituan issued an internal letter announcing a new organizational structure adjustment. In terms of core local business, it will integrate the home business group, the store business group, the Meituan platform, and basic research and development. In March, Meituan announced a new round of rotation appointment plans for business leaders in the form of an internal letter.

While Meituan is making structural adjustments, its opponents are also making adjustments. In March this year, Douyin’s life service department and commercial sales department will adjust their organizational structures, and some middle-level positions in the two businesses will also be rotated. In addition to Douyin, in the past year, major companies such as Alibaba, Kuaishou, Pinduoduo, Tencent, and Xiaohongshu have also accelerated their local life business layout. For Meituan, competition will also continue.

Tags: entertainment