The meeting reviewed the financial performance of the second quarter of 2025, management conducted a performance summary, and opened a question and answer session to discuss future prospects and risk factors, emphasizing the importance of forward-looking statements and the use of non-standard financial indicators.

In the second quarter, the business maintained steady growth, with revenue increasing by 11.7 year-on-year, MAU exceeding 0.6 billion and APP MAU exceeding 0.5 billion. The frequency of transactions was a record, on average once a week. The company is committed to improving its products and services, meeting consumer needs through technological innovation, and consolidating its leadership in the local service industry. In the distribution industry, strengthen market leadership through efficient operations and 100 percent order processing capabilities. At the same time, the company focuses on ecosystem construction, cooperates with merchants, launches satellite stores and central kitchen projects, optimizes online operational efficiency and reduces merchant costs. In the future, it is planned to expand the central kitchen network to improve food quality and ensure consumer trust. In addition, the company also through the good meal plan and the ten thousand brand plan, rich supply diversity, support small and medium-sized businesses and brand development, to ensure the long-term sustainable development of the industry.

Nantong's old-age security scheme will be extended to the whole country by the end of this year, covering more than one million tourists. Meituan has launched a number of support measures, including the establishment of a subsidy fund and the addition of free service facilities. The real-time retail industry is growing rapidly, and Meituan is leading the transformation, empowering merchants through digital technology, improving service experience and promoting sales growth. The scope of services has expanded from campus to electronic products, cosmetics and other fields, and the first 618 shopping festival has been held to help offline merchants.

By deepening the membership system to provide more concessions, promote user loyalty and transaction frequency, accelerate the expansion of retail businesses such as small elephant supermarkets, improve operational efficiency, strengthen the leadership of guitar delivery and other businesses in the international market, promote the upgrading of global consumer experience, adhere to the retail technology strategy, and promote long-term value creation in the industry.

The report analyzes Meituan's financial performance in the second quarter in detail, including key indicators such as revenue growth, cost increase, and decline in operating profit. It emphasizes that in the context of intensified competition, the company has increased strategic investment to consolidate its market leadership while maintaining Operational efficiency and quality services demonstrate long-term competitiveness.

In the fierce market competition environment, enterprises emphasize the return to the basic market of retail industry, that is, to provide high-quality commodity selection, fast and reliable distribution services and sustained cost-effective advantages, as a strategic core to deal with market changes and competitive pressure. Despite the challenges in the short term, the company has achieved some of its growth targets and plans to gradually achieve higher targets through continuous innovation and service optimization to ensure long-term steady development.

The construction of competitive advantage in the fierce competition of the e-commerce industry is discussed, and the importance of user loyalty, high-quality orders and operational efficiency is emphasized. Long-term goals are mentioned, such as the viability of million daily orders, and the impact of competition on short-term and long-term profits is analyzed, as well as the company's commitment to a healthy ecosystem and confidence in market leadership.

Discussed the core competencies in the field of instant retailing, including rich commodity selection, efficient distribution and reasonable pricing, as well as the innovation of new supply models such as Meituan flash purchase, and emphasized the realization of industry growth and consumer habit cultivation through deepening service experience and expanding market coverage, demonstrating the broad prospects of instant retailing in the medium and long term.

This paper discusses the competitive advantages of Meituan in installation business, including long-term healthy business development, high cost-effective service coverage and promotion of AI business assistants, as well as the positive progress of membership plan, such as upgrading the number of members to exceed 10 million, cross-service GTV growth, cooperation with external parties to expand the rights and interests of members, and improving user stickiness and business reach efficiency.

The dialogue discussed Meituan's strategy to adjust its retail business, including accelerating the expansion of small elephant supermarkets, exploring the offline hard discount model of Happy Monkey, and reducing the size of Meituan's preference. Emphasizing capital investment and long-term growth potential, it is expected that the small elephant supermarket will exceed the industry growth rate, while happy monkey as an early experiment, will test the online and offline combination of the new retail model. The overall strategy aims to optimize resource allocation, improve operational efficiency and achieve long-term sustainable development.

Discussed Meituan's expansion plans in overseas markets, including progress in Qatar and Brazil, and emphasized the importance of responding to competition through efficient operations and localization strategies. At the same time, the capital allocation strategy of the company in overseas investment is discussed, and how to balance the investment and return under the pressure of domestic and foreign market competition.

A long-term perspective on capital allocation was discussed, emphasizing priority support for core businesses such as food distribution and local commerce, while cautiously optimistic about new retail and overseas markets, focusing on high-quality growth and market education, and anticipating stable cash flow and shareholder returns in the future.