On November 21, Meituan-Dianping released their third quarter results for 2019. The company’s quarterly revenue reached 27.5 billion yuan ($3.9 billion), while the total transaction amount increased by 33.6% year-on-year to 194.6 billion yuan ($27.5 billion). The company reported an adjusted net profit of 1.9 billion yuan ($270 million). Following the disclosure of the figures Meituan
The company’s revenue in the new initiatives segment that includes bike-sharing, offline retail and more, reached 5.7 billion yuan ($810 million), an increase of 65.4%, with a gross margin of 18.7%, compared with -37.4% in the same period last year.
Chen Shaohui, CFO of the company, said that the new initiatives segment saw a clear improvement in both financial and operational performance. He also noted that in relation to the allocation of resources for new initiatives, not only will the financial rate of return be taken into account, but also the synergy between new initiatives and the core businesses of the company.
Chen underscored the importance of the bike sharing business to the company, saying that the two-wheelers achieved a good turnover rate during the quarter. “We believe that the shared bicycle business will not only help us to obtain higher frequency access, but also further help to improve on the user base front, increase the frequency of transactions and the user’s stickiness on the platform, while also helping with cross-selling,” stated the CFO.
On November 20, the company announced the official launch of their new service Meituan