HONG KONG, March 25, 2022 /PRNewswire/ — Meituan (HKG: 3690) (the “Company”), China’s main e-commerce platform for companies, at present introduced the audited consolidated outcomes of the Company for the 12 months ended December 31, 2021.
Company Financial Highlights
In 2021, we upgraded our company technique from “Food + Platform” to “Retail + Technology”, additional increasing our product and repair choices to the broader retail, connecting with extra market members, and leveraging expertise to facilitate development throughout industries. Our companies progress remained robust, with whole revenues rising by 56.0% 12 months over 12 months to RMB179.1 billion in 2021. The combination working revenue for the meals supply and the in-store, resort & journey segments reached RMB20.3 billion in 2021, up from RMB11.0 billion in 2020. Operating loss for the new initiatives and others section expanded as we remained dedicated to enterprise areas that may deliver long-term worth. Both adjusted EBITDA and adjusted web revenue skilled year-over-year lower and turned to detrimental RMB9.7 billion and adjusted web lack of RMB15.6 billion in 2021, respectively. Our web money flows from working actions turned to an outflow of RMB4.0 billion in 2021 from an influx of RMB8.5 billion in 2020. We had money and money equivalents of RMB32.5 billion and short-term treasury investments of RMB84.3 billion as of December 31, 2021, in comparison with the balances of RMB17.1 billion and RMB44.0 billion as of December 31, 2020, respectively.
“For the full year of 2021, we continued to innovate and leverage technology to provide consumers with more diverse and higher-quality services. Meanwhile we were committed to assisting small- and medium-sized merchants accelerate their digital transformation. Following our upgraded corporate strategy ‘Retail + Technology’, we expanded our goods and services metrics and improved our service quality,” stated Meituan Founder and CEO Xing Wang.
“We believe that the fundamentals of China’s long-term economic growth will not change. We will continue to invest in technology and unswervingly improve our businesses,” stated Wang. “In 2022, we will focus on high-quality growth, build fundamental capabilities for long-term development, support merchants to deal with difficult times, bring more convenience to people’s lives, create new forms of digital life and employment opportunities, and better fulfill our social responsibilities based on the overall dual circulation economic development goals, truly creating more values for society,” concluded Wang.
Meituan CFO Shaohui Chen stated, “The local service industry underwent many challenges last year. Helping partners to overcome difficulties was our top priority, and it will continue to be so in 2022. The development of Meituan is empowered by China’s economic environment, and is supported by our merchants, couriers and users. China has become the world’s largest and most vibrant consumer market. We believe that digital and retail transformation will continue to boost China’s economy. We remain confident in our ability to seize long-term opportunities and achieve sustainable growth, and will continue to create further value for all partners in our ecosystem.”
Company Business Highlights
Food supply
Despite challenges from the macro surroundings, pure disasters and sporadic COVID-19 outbreaks, our meals supply enterprise achieved robust progress in 2021. Annual Transacting Users and common transaction frequency broke file highs. Our every day order quantity exceeded 50 million in August and subsequently reached historic highs once more in December 2021. GTV elevated by 43.6% 12 months over 12 months to RMB702.1 billion, and income elevated by 45.3% 12 months over 12 months to RMB96.3 billion in 2021. Operating revenue elevated to RMB6.2 billion in 2021 from RMB2.8 billion in 2020, whereas working margin elevated to six.4% from 4.3%. Our stable enterprise efficiency in 2021 was a testomony to our resilient enterprise mannequin and aggressive energy in shopper base, service provider base and supply community.
For the fourth quarter of 2021, GTV of our meals supply enterprise elevated by 20.7% 12 months over 12 months to RMB188.6 billion, with every day common order quantity rising by 17.4% 12 months over 12 months to 42.5 million. Our revenues from meals supply enterprise elevated by 21.3% 12 months over 12 months to RMB26. 1 billion. Operating revenue from our meals supply enterprise elevated to RMB1.7 billion for the fourth quarter of 2021 from RMB882.4 million for the fourth quarter of 2020, whereas working margin elevated to six.6% from 4.1%, primarily attributable to larger portion of on-line advertising and marketing companies income and decrease seasonal courier incentives.
We are glad to see that meals supply has change into an important service for shoppers. We haven’t solely diversified picks for shoppers, but additionally continued to establish the evolving consumption development and to advertise the progress of latest consumption classes. Categories corresponding to late-night snacks, milk tea, salads and lightweight meals witnessed notable progress throughout the 12 months. The enhance in provide successfully incentivized larger order quantity from the mid- and high-frequency customers. As a outcome, meals supply annual Transacting Users elevated by 13% 12 months over 12 months, and annual common transaction frequency elevated by 25% 12 months over 12 months. The progress demonstrates shoppers’ ongoing belief in our platform and their recognition of meals supply as an indispensable service in every day life.
On the service provider facet, we continued to assist thousands and thousands of eating places digitize their enterprise operations via complete companies and on-line advertising and marketing instruments, bringing extra enterprise volumes to assist retailers generate revenue beneath this difficult surroundings. An rising variety of retailers used our on-line advertising and marketing merchandise and stepped up of their on-line promotions given the effectiveness of boosting shopper demand. We make our utmost efforts to know our retailers’ ache factors and deal with their points, as it’s essential for us to supply assist and create worth for them. In May 2021, we rolled out a brand new payment construction that splits payment charged from retailers right into a expertise service payment, which is the fee income, and a meals supply companies payment. The new payment construction promotes extra clear pricing and clearer value constructions, and advantages the majority of the small- and medium-sized retailers on our platform. Starting from the fourth quarter of 2021, we individually disclosed the meals supply companies income to replicate this new payment construction in our monetary outcomes.
For the twelve months ended December 31, 2021, round 5.27 million meals supply couriers earned revenue via our Meituan platform. We continued to advertise our “Tongzhou Project” to make sure correct rights and pursuits of meals supply couriers, and prioritized enhancing courier expertise and making a constructive ecosystem. To higher perceive the couriers’ wants, we held 136 courier suggestions periods in 2021. We continued to optimize our algorithms and guidelines considering the couriers’ suggestions. For instance, we modified the show of estimated supply time of every order from some extent of time to an prolonged time period, assuaging strain of couriers throughout supply. In some areas, we launched varied pilot packages, corresponding to solely scheduling courier pickup after meals are prepared to scale back the wait time and reassigning orders to different couriers in surprising conditions. These measures assist dispatch orders to couriers in a extra considerate method whereas making certain their security, and allow couriers to earn comparatively larger revenue with extra affordable workload. We additionally labored with our supply companions to launch a pilot scheme to optimize the service high quality evaluation mechanism, which adjustments the observe of revenue discount because of shopper unhealthy evaluations or late supply into level discount for the couriers, in order that they’ll make up for the lack of factors via different efficiency and actions. The couriers’ month-to-month rewards are linked to the accrued factors of the month. This optimized scheme successfully mitigates monetary impacts on couriers because of occasional, surprising conditions, whereas making certain shopper expertise concurrently. In the antagonistic climate situations in the fourth quarter, we elevated courier incentives and distributed a million items of chilly safety attire to couriers in affected markets. We additionally offered free lodging and quarantine subsidies for couriers who have been affected by the COVID management measures. Furthermore, we continued to implement varied charity packages that supply assist for hundreds of couriers’ households. We offered couriers with full scholarships, permitting them to undertake additional training and obtain the next diploma with out monetary burden. In the meantime, we’re actively cooperating with the preparations of the pilot program that gives couriers with occupational harm insurance coverage, beneath the steering of the related authorities. We will fulfill our company obligations, be sure that the pilot program meets the deliberate timeline, and canopy all bills for taking part couriers. Going ahead, we plan to supply couriers with a extra complete welfare scheme and employee advantages, together with continued enchancment on their sense of achievement and well-being.
In-store, resort & journey
Despite the detrimental impacts from sporadic COVID-19 outbreaks and macro surroundings, our in-store, resort & journey section nonetheless achieved stable progress. During the 12 months, we continued to deliver broader consumption classes to deal with the ever-evolving calls for from shoppers, whereas onboarding extra retailers and introducing numerous on-line options to the retailers. As a outcome, revenues from the in-store, resort & journey companies elevated by 53.1% 12 months over 12 months to RMB32.5 billion in 2021. Operating revenue from the in-store, resort & journey companies elevated to RMB14.1 billion in 2021 from RMB8.2 billion in 2020, whereas working margin elevated to 43.3% from 38.5%.
For the fourth quarter of 2021, revenues from our in-store, resort & journey companies elevated by 22.2% 12 months over 12 months to RMB8.7 billion. Operating revenue for the section elevated to RMB3.9 billion from RMB2.8 billion for the fourth quarter of 2020, whereas working margin elevated to 44.7% from 39.5%, because of change in income combine.
For in-store, our transaction quantity, GTV, and annual lively retailers all reached file highs. We deepened penetration into lower-tier cities in China with broader protection scope, and helped speed up the digitization course of in these under-served markets. Categories corresponding to leisure and leisure, sports activities, aged care, medical care, and pet care demonstrated robust progress momentum, whereas classes corresponding to handicraft actions, music recording, interactive gentle reveals, and stress aid emerged as a brand new consumption development. Moreover, we continued to introduce tailor-made services and products for retailers from totally different classes, serving to them enhance on-line operations. On the shopper facet, we not solely supplied more and more handy and numerous merchandise, but additionally successfully stimulated consumption via varied advertising and marketing and promotional campaigns throughout vacation seasons, which additional strengthened shopper mindshare of Meituan as the “go-to destination for local services”.
For resort & journey, though regional COVID-19 outbreaks and strict journey restrictions introduced detrimental influence, we nonetheless withstood the challenges and helped resort retailers get better. In 2021, our home resort room nights grew 34.5%, because of the business restoration and our strategic give attention to the home journey market, native lodging, and short-haul journey situations. In addition, we solidified our aggressive benefit in the low-star area, bringing offline customers to our on-line platform, and serving to extra resort retailers digitize operations. For high-star inns, room nights contribution exceeded 16.5% in 2021, because of our continued enchancment in high-star provide and shopper service high quality.
New initiatives and others
We continued to broaden investments in new initiatives, particularly in items retail, as we upgraded to the “Retail + Technology” technique. Revenues from the new initiatives and others section elevated by 84.4% 12 months over 12 months to RMB50.3 billion in 2021. Operating loss from new initiatives and others section expanded to RMB38.4 billion in 2021 from RMB10.9 billion in 2020, whereas working margin decreased 36.6 share factors 12 months over 12 months.
For the fourth quarter of 2021, revenues from the new initiatives and others section elevated by 58.7% 12 months over 12 months to RMB14.7 billion. Operating loss for the section elevated 12 months over 12 months to RMB10.2 billion for the fourth quarter of 2021, whereas the working margin improved to detrimental 69.5% sequentially.
For Meituan Select, because of clear regulatory steering and constructive market surroundings, we achieved wholesome progress as a significant market participant. We regularly iterated our enterprise mannequin and actively constructed up varied facets of our long-term capabilities. By regularly optimizing our operations at totally different nodes, we improved working effectivity and unit economics all through 2021. The three-level logistics community system established by Meituan Select, which fulfills next-day pick-up orders, now covers the majority of neighborhoods and villages in 30 provinces throughout China. We continued to supply bigger and extra numerous SKU choices whereas enhancing supply effectivity and reliability. The launch of our recent produce direct sourcing program allowed us to successfully match manufacturing and demand via each centralized and demand-based procurement course of, in flip producing extra revenues for farmers. Residents in rural areas even have extra handy entry to considerable and value-for-money every day requirements that beforehand solely city residents might receive, eliminating the urban-rural consumption hole and additional empowering trendy agriculture. We launched a progress scheme for new agricultural retailers to assist them regularly enhance cultivation methods and supply vocational coaching in rural areas, specializing in e-commerce expertise and operations. Meituan Select additionally offers a lot of versatile jobs for pick-up station managers, and creates an rising variety of job alternatives in logistics, warehousing, and processing. Thanks to our quickly constructed provide chain and logistics system, the Meituan Select crew actively responded to the authorities’s name for help in Zhengzhou, Xi’an, and different cities affected by COVID-19 and pure disasters, offering a dependable provide of requirements to individuals in want. Looking ahead, strictly adhering to regulatory necessities is our prime precedence, as we proceed to try for balanced, high-quality progress. We will give attention to creating our personal capabilities, whereas enhancing shopper experiences.
Meituan Instashopping delivered one other stellar progress in 2021, with highest every day order quantity exceeding 6.3 million in December 2021. Leveraging our location-based e-commerce platform and on-demand supply community, we supplied shoppers numerous picks of retail items and handy on-demand supply companies, and efficiently transformed a lot of high-quality meals supply customers into Meituan Instashopping customers. On the provide facet, we expanded product classes and collaborated with extra high-quality native shops. We offered native retailers with complete suites of on-line options and instruments, successfully serving to the retailer house owners digitize operations and enhance effectivity. As a outcome, classes corresponding to flowers, supermarkets and comfort shops maintained excessive progress momentum. Earlier this 12 months, we rolled out the 24/7 medication supply companies and acquired constructive feedbacks from shoppers, because it addressed shoppers’ pressing wants for medication. We firmly imagine that the endgame of the retail business is “Everything Now”, and we’ll proceed to leverage our strengths and capabilities to facilitate such transformation.
For Meituan Grocery, we continued to develop our consumer base and GTV in 2021. After finishing protection in 4 present tier-one cities, we offered extra numerous SKU picks and higher expertise for shoppers. We additionally optimized our product construction, enhanced warehousing and logistics capabilities, and refined operations at front-end distribution facilities, which altogether led to continued enchancment in effectivity and unit economies.
Company Outlook and Strategy for 2022
As we entered 2022, we nonetheless face challenges from COVID management measures and weakening consumption surroundings. Nevertheless, we’re assured that we can navigate via exhausting instances and obstacles and obtain wholesome progress, as we proceed to strengthen our elementary capabilities for the long run. With regard to our meals supply and in-store, resort & journey segments, we’ll give attention to high-quality progress, improve consumer expertise for each shoppers and retailers, solidify our aggressive benefit, and continuously enhance working effectivity. Meanwhile, we stay dedicated to facilitating the digital transformation course of throughout industries, and can place extra emphasis on the long-term worth creation and social accountability achievement alongside the journey. Furthermore, we’ll proceed to implement the upgraded “Retail + Technology” technique, higher assist small and micro retailers to deal with tough instances, deliver extra comfort to individuals’s lives, and specifically, present dependable provide of every day requirements for individuals in the affected areas by the pandemic. As our items retail enterprise grows, we broaden our community of companions, from primarily urban- and county-based retailers to rural-based “new farmers”. We will commit our assist in selling “rural revitalization”, and can deliver prime quality services and products to tens of hundreds of villages in China. In addition, we’ll proceed to create a variety of job alternatives whereas putting explicit emphasis on the welfare and wishes of versatile employees. Particularly, for our meals supply couriers, we’ll all the time take their rights and pursuits as prime precedence, and make our greatest efforts in enhancing their welfare and advantages. Last however not least, we’ll proceed to leverage expertise and improvements to deliver extra worth for all the market members, and contribute to the prime quality improvement of digital financial system.
For the full announcement of Meituan for 2021, please go to:
http://media-meituan.todayir.com/20220325165602561510172324_en.pdf
About Meituan
Meituan (HKG: 3690) (the “Company”) is China’s main e-commerce platform for companies. With the mission of “We help people eat better, live better,” the Company’s platform makes use of expertise to attach shoppers and retailers. Service choices on the platform deal with individuals’s every day wants for meals, and lengthen additional to broad way of life and journey companies. Meituan is the world’s main on-demand meals supply service supplier and China’s main e-commerce platform for in-store eating companies. Meituan helps shoppers uncover service provider data, make knowledgeable selections, full on-line and offline transactions and luxuriate in on-demand supply. The Company presently owns a number of family manufacturers in China, together with Meituan, China’s main on-line market for companies, Dianping, China’s main on-line vacation spot for discovering native companies, Meituan Waimai for on-demand supply companies, and Meituan Bikes for bike-sharing companies. Meituan has 690.5 million Annual Transacting Users and eight.8 million Annual Active Merchants as of December 31, 2021. The Company operates in over 2,800 cities and counties in China.
Forward-Looking Statements
This press launch incorporates forward-looking statements regarding the enterprise outlook, forecast enterprise plans and progress methods of the Company. These forward-looking statements are based mostly on data presently obtainable to the Company and are said herein on the foundation of the outlook at the time of this press launch. They are based mostly on sure expectations, assumptions and premises, a few of that are subjective or past our management. These forward-looking statements might show to be incorrect and will not be realized in future. Underlying the forward-looking statements is a lot of dangers and uncertainties. Further data relating to these dangers and uncertainties is included in our different public disclosure paperwork on our company web site.
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Meituan
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SOURCE Meituan