A：The main focus of Meshwo's strategy in the first quarter of 2026 was on long-term retail and technology strategy, driving high-quality growth for both the company and the industry, and becoming the preferred local service platform for consumers and merchants.

A：In the first quarter of 2026, Meshwo's food delivery business continued to attract a large number of new users despite rationalized subsidies. Consumers chose Meshwo for its comprehensive and reliable services rather than price incentives alone. The business experienced a stronger user粘性, with high and mid-frequency users becoming more active and diverse in their consumption needs.

A：To improve delivery services, Meshwo expanded the coverage of its high-quality delivery service, allowing more food delivery users to choose one-to-one express delivery. The business promoted this delivery service for meal kit shopping, addressing users' time-sensitive shopping needs. The supply chain capabilities for food delivery were also enhanced, with branded satellite stores achieving higher conversion rates and repeat purchase rates than traditional restaurants.

A：During the first quarter, Meshwo provided targeted operational support to high-quality local restaurant merchants. This included practical tools and policies to improve merchant experience, like malicious review management, damage protection, and AI-powered operational solutions. The company also launched 10 improvement initiatives on food safety to build a safer and more trustworthy food delivery environment.

A：The goal of Meshwo's investment in local services is to reinforce the perception of Meituan as a one-stop local service platform. This was achieved by building a full-scope value-for-money supply system and expanding the reach and influence of authoritative recommendation lists. Meshwo also supported nearly 1.3 million skilled artisans on its platform, helping them build personal brands and professional skills.

A：In the first quarter, the new initiative segment of Meshwo was focused on the high-quality development of grocery retail and instant delivery. The company, Xiaohang Supermarket, expanded to 55 cities while sustaining robust growth. It further strengthened its supply chain capabilities, offering a broader selection of high-quality and competitively priced products. The segment achieved meaningful efficiency gains in markets like Hong Kong, Saudi Arabia, and Brazil.

A：The AI assistant Xiao Han has been upgraded to improve the AI search experience and now has a dedicated entry point within the maban app, making it easier for users to access and engage with. It helps users make smart decisions on local services and addresses real pain points in online operations for merchants in the dining domain. For example, smart manager Zhen Z zangui has served over 700,000 merchants. AI tools are designed to support decision-making in complex business scenarios and enable end-to-end automation for routine tasks.

A：The company plans to evolve its AI tools to a human-machine collaboration environment, supporting decision-making in complex business scenarios and enabling end-to-end automation for routine tasks. This will assist merchants in improving operational efficiency and decision-making.

A：For the first quarter, the company achieved substantial financial improvement with resilient growth, being the platform of choice for local service merchants and consumers. Total revenue was RMB 91 billion, up 5.6%, but cost and expenses increased due to consumer and rider incentives and marketing investments. Despite this, the company showed strong bottom-line improvement. For the full year, the company aims to deepen its competitive model for core local commerce, improve operational efficiency, optimize products, advance technological innovations, and invest in the ecosystem. They will focus on grocery, retail, and overseas expansion while continuing AI investments in both physical and digital worlds.

A：The core local segment's revenue was RMB 64 billion, returning to positive year-over-year growth. The segment operating loss narrowed to RMB 2 billion. On demand delivery showed resilience with a focus on high AOV orders. The core user base maintained year-over-year growth in order volume and GTV. The unit economics improved significantly due to better order mix and user structure, and overall operational capability.

A：The new initiative's revenue was up 21.3% year-over-year to RMB 27 billion, with a narrowing of the segment operating loss to RMB 2.1 billion. The revenue growth was supported by the grocery retail business and positive performance in the Middle East. Resilient growth was also seen in Qia and product sales from grocery retail business grew about 40% year-over-year. Service verticals like medical aesthetics, elder care, and home renovation are showing promising traction, alongside steady growth in hotel and travel business capturing robust travel demand during holidays.

A：The transition to a more operational efficiency and user experience has been beneficial for the company as it sees competition shifting back to fundamentals. With the gradual pullback of subsidies, the company has experienced healthy user growth and stronger engagement from core users, solidifying its leadership in the mid to high AOB segment. This is attributed to structural advantages in operational efficiency.

A：The company expects a meaningful improvement in user experience (UE) in Q2 compared to Q1, supported by seasonal tailwinds. It has maintained its market leadership and is widening its UE gap advantage. However, the continued improvement in the second half will depend on how the competition environment evolves. There may be a negative year-over-year growth impact in the second half due to higher delivery costs per order in Q3 and Q4 and a high basis from last year. Nonetheless, the company anticipates a more resilient net GDP growth due to the structural advantages and the expected recovery in the AOB segment.

A：The company is broadening its reach to help merchants access a bigger customer base, with the industry user base continuing to expand. It is penetrating the market deeper into the lower price segment while also seeing growth from consumers seeking premium, diverse options. The company believes its superior services and suppliers well-position it to capture high growth potential in purchase frequency and retention for new users. In the long term, the company aims to achieve sustainable, high-quality growth, with unit economics improving under regulatory guidance. Cross-selling between food delivery and other services is expected to generate long-term compounding value for the local commerce segment.

A：The company differentiates itself in the local services market by building strengths that cannot be replicated purely through traffic, such as its strong brand and consumer trust, value-for-money offerings, integrated services, and trustworthy review system. The company continues to innovate across the whole value chain to enhance the experience. It supports millions of skilled service providers, deeply penetrate various sectors, and has initiatives that build consumer trust in prepaid services. It also focuses on transforming offline services into reliable online standardized services. AI technology is used to reshape the value delivered in the local service industry. The company aims to maintain its competitive edge in core categories and build a better digital infrastructure for local service merchants. As the industry normalizes, the value delivered to merchants becomes more important, and the company expects the installed margin to stay stable in the near term with potential for recovery over the long term.

A：The maitron app has placed its AI system, Xiaotang, at the forefront for easier access. Although still in its early stages, the company is already seeing good initial results with users engaging more complex and cross-use cases. The goal is to integrate AI further to enhance the user experience and operational efficiency. Specific initiatives to accelerate AI integration are not detailed, but the overarching aim is to build capabilities that will achieve long-term goals related to AI.

A：Xiao Zhan stands out due to its foundation built on authentic consumer reviews, comprehensive Poi information, and a proprietary model trained specifically for local service businesses. This allows for better contextual understanding and the ability to provide personalized recommendations even when user criteria change.

A：AI is deeply integrated into specific verticals such as the xiaohan health system, which is based on years of proprietary real-world data from pharmacies, transactions, and online medical consultations, and developed in partnership with professional medical teams. It offers health consultations, medical reports interpretation, and facilitates medication ordering and appointment booking within the app.

A：Xiao Zhan is collaborating with AI chatbot yuanbao and partner Me Xiaomi to enhance local service experiences. This partnership will streamline one-stop local service transactions, with an agent-to-agent communication setup that connects users to services like food ordering and delivery.

A：The company views AI as a significant opportunity to deepen its model and unlock new value. They have been investing in their own large language model LEO and enhancing AI capabilities, supported by their comprehensive data foundation, including verified and merged information, authentic user reviews, and fulfillment infrastructure.

A：The hotel and travel business has entered a new phase with consolidation and increased competition, influenced by industry regulations and consumer preference shifts towards value-for-money options and lower-tier city travel. Despite regulatory challenges, the business achieved steady growth, especially in the lower-star hotel sector, and is expanding its high-star hotel portfolio. Going forward, the company expects short-term challenges but remains confident in its ability to navigate market cycles and seize opportunities presented by regulatory upgrades.

A：Keter has experienced near-term fluctuations in growth metrics in the Middle East, which have been manageable. The company continues to see a transition from offline to online consumer shopping and is committed to expanding alongside local players while creating value for users, merchants, and riders. In response to geopolitical uncertainties, it is sharpening risk management and building an organization suited for global operations.

A：In Q1, fi-ta experienced solid growth across all markets, with Hong Kong achieving unique economic breakeven and further efficiency gains in Hong Kong and Saudi Arabia. The company is focusing on operational improvement this year rather than new market expansion, confident in keta's potential for scale and bottom-line growth in many global markets.

A：The company plans to explore market expansion opportunities thoughtfully and maintain financial discipline while growing. It has steady efficiency gains across existing markets and is confident in achieving sustainable profitability at scale as it continues to optimize operations.

A：Within the competitive online environment, Xian Supermarket has maintained rapid growth despite the pressures of a price war. Fresh People has also experienced rapid growth, and management is focusing on ensuring the best supply for average consumers, regardless of the business model.

A：The company views one P models like the Xian Supermarket as strategically valuable, as they offer a consistently high-quality supply at competitively priced products, which is expected to drive the future growth of the on-demand retail market. The company is capturing growth potential by combining different business models and focusing on product variety, quality, and value.

A：The Xian Supermarket has achieved a low but positive gross profit margin and significantly outperformed the industry. It has maintained this momentum into Q1, accelerated its expansion, and covers 55 cities with plans to enter more. The supermarket is also strengthening its merchandising capability and improving supply chain depth. Its private brand products have gained recognition and are contributing to sales growth in established cities.

A：The Xian Supermarket is expanding into more markets, deepening its supply chain, and strengthening its merchandising capability. It has introduced a physical store model in addition to the online dark store model, with successful outlets in Beijing and Ningbo. The company plans to continue this expansion and focus on merchandising to increase brand awareness and customer reach.

A：The company's long-term targets for the Xian Supermarket include becoming one of the leading players among online grocery stores, achieving a sustainable low single-digit profit margin, and building the brand to become one of the most loved grocery brands. The overarching mission is to help people eat better, starting from food delivery services to individuals who prefer to cook for themselves.