Due to industry competition, Meituan lost 23.4 billion yuan last year. After the earnings report was released, the stock price has already fallen nearly 4%.

On March 26, Meituan-W’s share price was 86.7 HKD, down 3.67% from the previous trading day; as of the time of this release today, the company’s share price is down 0.35%, to 86.4 HKD, with a total market capitalization of 533.5 billion HKD.

On the news front, on March 26, Meituan officially released its 2025 fourth-quarter and full-year results report. The report shows that in the past year, Meituan achieved operating revenue of 3649 billion yuan, a year-over-year increase of 8.1**%; driven by “involuted” competition, the company’s net profit swung from a profit of 35.8 billion yuan last year to a loss of 23.4 billion yuan; operating losses reached 17 billion yuan.**

From the business revenue structure, Meituan’s full-year revenue mainly comes from two major segments: core local commerce and new businesses. Among them, the core local commerce segment’s revenue reached 260.8 billion yuan, up 4.2% year over year; this is the company’s business mainstay. It includes core local life services such as food delivery and on-site dining.

It is reported that, to respond to industry competition, Meituan has continued to increase direct subsidies to the catering industry in this segment and rolled out innovative supply formats such as “brand satellite stores” and “Pin Hao Fan,” while also upgrading its membership system to cover more consumption scenarios and enhance user stickiness. However, despite remaining stable with a GTV market share of over 60% in the delivery industry that remains “involuted,” Meituan** has not been able to reverse the loss-making trend in its core local commerce.**

According to the annual report, **the local commerce segment’s full-year operating loss reached 6.9 billion yuan, **while this figure was still a profit of 52.4 billion yuan last year. The company explains that the large losses were mainly due to a decline in gross margin, as well as the continual adjustment of business strategies to increase user transaction activity and stickiness, and strengthen brand influence amid intense competition, which in turn led to higher spending related to user incentives, promotions, and advertising.

Similarly, the new businesses segment’s revenue rose 19.1% year over year to 104 billion yuan, but its operating loss increased because the company stepped up investment in overseas business—from 7.3 billion yuan in 2024 to 10.1 billion yuan—while the operating loss margin rose from 8.3% year over year by 1.4 percentage points to 9.7%.

While its core business faces pressure from losses, Meituan is also continuously intensifying its deployment in the AI field, treating technology investment as an important development direction. In 2025, the company’s** research and development expenditure**** increased**** year over year by 23.5% to 26 billion yuan, and as a percentage of revenue it increased from 6.2% year over year by 0.9 percentage points to 7.1%,** mainly because the company increased its AI-related investment and higher employee compensation expenses.

It is reported that Meituan focuses on deploying AI technologies around local life service scenarios. It both develops its own LongCat series large language models and cooperates with top third-party large models in the industry to build an AI foundation for the physical world. Currently, Meituan has opened an AI assistant, “Xiao Tuan,” to users, and also provides AI business operation assistants to more than 3.4 million merchants to help them reduce operating costs.