HONG KONG, March 25, 2022 /PRNewswire/ — Meituan (HKG: 3690) (the “Firm”), China’s main e-commerce platform for providers, at the moment introduced the audited consolidated outcomes of the Firm for the yr ended December 31, 2021.
Firm Monetary Highlights
In 2021, we upgraded our company technique from “Meals + Platform” to “Retail + Know-how”, additional increasing our product and repair choices to the broader retail, connecting with extra market individuals, and leveraging know-how to facilitate development throughout industries. Our companies progress remained sturdy, with whole revenues rising by 56.0% yr over yr to RMB179.1 billion in 2021. The mixture 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. Working loss for the brand new initiatives and others phase expanded as we remained dedicated to enterprise areas that may carry long-term worth. Each adjusted EBITDA and adjusted internet revenue skilled year-over-year lower and turned to unfavorable RMB9.7 billion and adjusted internet lack of RMB15.6 billion in 2021, respectively. Our internet 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 complete yr of 2021, we continued to innovate and leverage know-how to supply customers with extra various and higher-quality providers. In the meantime we had been dedicated to aiding small- and medium-sized retailers speed up their digital transformation. Following our upgraded company technique ‘Retail + Know-how’, we expanded our items and providers metrics and improved our service high quality,” mentioned Meituan Founder and CEO Xing Wang.
“We consider that the basics of China’s long-term financial progress won’t change. We’ll proceed to put money into know-how and unswervingly enhance our companies,” mentioned Wang. “In 2022, we’ll concentrate on high-quality progress, construct elementary capabilities for long-term growth, assist retailers to cope with tough occasions, carry extra comfort to individuals’s lives, create new types of digital life and employment alternatives, and higher fulfill our social obligations based mostly on the general twin circulation financial growth targets, actually creating extra values for society,” concluded Wang.
Meituan CFO Shaohui Chen mentioned, “The native service business underwent many challenges final yr. Serving to companions to beat difficulties was our high precedence, and it’ll proceed to be so in 2022. The event of Meituan is empowered by China’s financial atmosphere, and is supported by our retailers, couriers and customers. China has develop into the world’s largest and most vibrant shopper market. We consider that digital and retail transformation will proceed to spice up China’s financial system. We stay assured in our capacity to grab long-term alternatives and obtain sustainable progress, and can proceed to create additional worth for all companions in our ecosystem.”
Firm Enterprise Highlights
Meals supply
Regardless of challenges from the macro atmosphere, pure disasters and sporadic COVID-19 outbreaks, our meals supply enterprise achieved sturdy progress in 2021. Annual Transacting Customers and common transaction frequency broke report highs. Our day by day order quantity exceeded 50 million in August and subsequently reached historic highs once more in December 2021. GTV elevated by 43.6% yr over yr to RMB702.1 billion, and income elevated by 45.3% yr over yr to RMB96.3 billion in 2021. Working 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 power 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% yr over yr to RMB188.6 billion, with day by day common order quantity rising by 17.4% yr over yr to 42.5 million. Our revenues from meals supply enterprise elevated by 21.3% yr over yr to RMB26. 1 billion. Working 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 increased portion of on-line advertising providers income and decrease seasonal courier incentives.
We’re glad to see that meals supply has develop into an important service for customers. We’ve got not solely diversified choices for customers, but in addition continued to determine the evolving consumption pattern and to advertise the expansion of latest consumption classes. Classes equivalent to late-night snacks, milk tea, salads and lightweight meals witnessed notable progress through the yr. The rise in provide successfully incentivized increased order quantity from the mid- and high-frequency customers. Consequently, meals supply annual Transacting Customers elevated by 13% yr over yr, and annual common transaction frequency elevated by 25% yr over yr. The expansion demonstrates customers’ ongoing belief in our platform and their recognition of meals supply as an indispensable service in day by day life.
On the service provider aspect, we continued to assist thousands and thousands of eating places digitize their enterprise operations by complete providers and on-line advertising instruments, bringing extra enterprise volumes to assist retailers generate earnings below this difficult atmosphere. An rising variety of retailers used our on-line advertising merchandise and stepped up of their on-line promotions given the effectiveness of boosting shopper demand. We make our utmost efforts to grasp our retailers’ ache factors and deal with their points, as it’s essential for us to supply assist and create worth for them. In Could 2021, we rolled out a brand new payment construction that splits payment charged from retailers right into a know-how service payment, which is the fee income, and a meals supply providers payment. The brand new payment construction promotes extra clear pricing and clearer price constructions, and advantages the vast majority of the small- and medium-sized retailers on our platform. Ranging from the fourth quarter of 2021, we individually disclosed the meals supply providers 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 earnings by our Meituan platform. We continued to advertise our “Tongzhou Challenge” 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 making an allowance for 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 frame, assuaging stress of couriers throughout supply. In some areas, we launched numerous pilot applications, equivalent to solely scheduling courier pickup after meals are prepared to cut back the wait time and reassigning orders to different couriers in sudden conditions. These measures assist dispatch orders to couriers in a extra considerate method whereas making certain their security, and allow couriers to earn comparatively increased earnings 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 modifications the apply of earnings discount because of shopper unhealthy critiques or late supply into level discount for the couriers, in order that they will make up for the lack of factors by different efficiency and actions. The couriers’ month-to-month rewards are linked to the amassed factors of the month. This optimized scheme successfully mitigates monetary impacts on couriers because of occasional, sudden conditions, whereas making certain shopper expertise concurrently. Within the hostile climate circumstances within 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 had been affected by the COVID management measures. Moreover, we continued to implement numerous charity applications that supply assist for 1000’s of couriers’ households. We offered couriers with full scholarships, permitting them to undertake additional schooling and obtain the next diploma with out monetary burden. Within the meantime, we’re actively cooperating with the preparations of the pilot program that gives couriers with occupational harm insurance coverage, below the steering of the related authorities. We’ll fulfill our company obligations, be certain 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
Regardless of the unfavorable impacts from sporadic COVID-19 outbreaks and macro atmosphere, our in-store, resort & journey phase nonetheless achieved stable progress. Throughout the yr, we continued to carry broader consumption classes to deal with the ever-evolving calls for from customers, whereas onboarding extra retailers and introducing various on-line options to the retailers. Consequently, revenues from the in-store, resort & journey companies elevated by 53.1% yr over yr to RMB32.5 billion in 2021. Working 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% yr over yr to RMB8.7 billion. Working revenue for the phase 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 energetic retailers all reached report 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. Classes equivalent to leisure and leisure, sports activities, aged care, medical care, and pet care demonstrated sturdy progress momentum, whereas classes equivalent to handicraft actions, music recording, interactive gentle reveals, and stress aid emerged as a brand new consumption pattern. Furthermore, we continued to introduce tailor-made services and products for retailers from completely different classes, serving to them enhance on-line operations. On the buyer aspect, we not solely provided more and more handy and various merchandise, but in addition successfully stimulated consumption by numerous advertising and promotional campaigns throughout vacation seasons, which additional strengthened shopper mindshare of Meituan because the “go-to vacation spot for native providers”.
For resort & journey, though regional COVID-19 outbreaks and strict journey restrictions introduced unfavorable affect, we nonetheless withstood the challenges and helped resort retailers get well. In 2021, our home resort room nights grew 34.5%, because of the business restoration and our strategic concentrate on the home journey market, native lodging, and short-haul journey situations. As well as, we solidified our aggressive benefit within the low-star area, bringing offline customers to our on-line platform, and serving to extra resort retailers digitize operations. For top-star accommodations, 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 increase investments in new initiatives, particularly in items retail, as we upgraded to the “Retail + Know-how” technique. Revenues from the brand new initiatives and others phase elevated by 84.4% yr over yr to RMB50.3 billion in 2021. Working loss from new initiatives and others phase expanded to RMB38.4 billion in 2021 from RMB10.9 billion in 2020, whereas working margin decreased 36.6 proportion factors yr over yr.
For the fourth quarter of 2021, revenues from the brand new initiatives and others phase elevated by 58.7% yr over yr to RMB14.7 billion. Working loss for the phase elevated yr over yr to RMB10.2 billion for the fourth quarter of 2021, whereas the working margin improved to unfavorable 69.5% sequentially.
For Meituan Choose, because of clear regulatory steering and constructive market atmosphere, we achieved wholesome progress as a serious market participant. We regularly iterated our enterprise mannequin and actively constructed up numerous points of our long-term capabilities. By regularly optimizing our operations at completely different nodes, we improved working effectivity and unit economics all through 2021. The three-level logistics community system established by Meituan Choose, which fulfills next-day pick-up orders, now covers the vast majority of neighborhoods and villages in 30 provinces throughout China. We continued to supply bigger and extra various SKU choices whereas enhancing supply effectivity and reliability. The launch of our contemporary produce direct sourcing program allowed us to successfully match manufacturing and demand by 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 day by day requirements that beforehand solely city residents might acquire, eliminating the urban-rural consumption hole and additional empowering trendy agriculture. We launched a progress scheme for brand new agricultural retailers to assist them regularly enhance cultivation strategies and supply vocational coaching in rural areas, specializing in e-commerce abilities and operations. Meituan Choose additionally offers numerous versatile jobs for pick-up station managers, and creates an rising variety of job alternatives in logistics, warehousing, and processing. Because of our quickly constructed provide chain and logistics system, the Meituan Choose staff actively responded to the federal government’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. Wanting ahead, strictly adhering to regulatory necessities is our high precedence, as we proceed to try for balanced, high-quality progress. We’ll concentrate on creating our personal capabilities, whereas enhancing shopper experiences.
Meituan Instashopping delivered one other stellar progress in 2021, with highest day by day order quantity exceeding 6.3 million in December 2021. Leveraging our location-based e-commerce platform and on-demand supply community, we provided customers various choices of retail items and handy on-demand supply providers, and efficiently transformed numerous high-quality meals supply customers into Meituan Instashopping customers. On the provision aspect, 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 shop homeowners digitize operations and enhance effectivity. Consequently, classes equivalent to flowers, supermarkets and comfort shops maintained excessive progress momentum. Earlier this yr, we rolled out the 24/7 drugs supply providers and obtained constructive feedbacks from customers, because it addressed customers’ pressing wants for drugs. We firmly consider that the endgame of the retail business is “All the things 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 various SKU choices and higher expertise for customers. 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.
Firm Outlook and Technique for 2022
As we entered 2022, we nonetheless face challenges from COVID management measures and weakening consumption atmosphere. However, we’re assured that we will navigate by arduous occasions 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 concentrate on high-quality progress, improve consumer expertise for each customers and retailers, solidify our aggressive benefit, and consistently enhance working effectivity. In the meantime, 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 duty achievement alongside the journey. Moreover, we’ll proceed to implement the upgraded “Retail + Know-how” technique, higher assist small and micro retailers to deal with tough occasions, carry extra comfort to individuals’s lives, and specifically, present dependable provide of day by day requirements for individuals within the affected areas by the pandemic. As our items retail enterprise grows, we increase our community of companions, from primarily urban- and county-based retailers to rural-based “new farmers”. We’ll commit our assist in selling “rural revitalization”, and can carry prime quality services and products to tens of 1000’s of villages in China. As well as, we’ll proceed to create a variety of job alternatives whereas inserting explicit emphasis on the welfare and wishes of versatile employees. Significantly, for our meals supply couriers, we’ll at all times take their rights and pursuits as high precedence, and make our greatest efforts in enhancing their welfare and advantages. Final however not least, we’ll proceed to leverage know-how and improvements to carry extra worth for all of the market individuals, and contribute to the prime quality growth of digital financial system.
For the complete announcement of Meituan for 2021, please go to:
http://media-meituan.todayir.com/20220325165602561510172324_en.pdf
About Meituan
Meituan (HKG: 3690) (the “Firm”) is China’s main e-commerce platform for providers. With the mission of “We assist individuals eat higher, reside higher,” the Firm’s platform makes use of know-how to attach customers and retailers. Service choices on the platform deal with individuals’s day by day wants for meals, and prolong additional to broad way of life and journey providers. Meituan is the world’s main on-demand meals supply service supplier and China’s main e-commerce platform for in-store eating providers. Meituan helps customers uncover service provider info, make knowledgeable selections, full on-line and offline transactions and luxuriate in on-demand supply. The Firm at present owns a number of family manufacturers in China, together with Meituan, China’s main on-line market for providers, Dianping, China’s main on-line vacation spot for locating native providers, Meituan Waimai for on-demand supply providers, and Meituan Bikes for bike-sharing providers. Meituan has 690.5 million Annual Transacting Customers and eight.8 million Annual Lively Retailers as of December 31, 2021. The Firm operates in over 2,800 cities and counties in China.
Ahead-Wanting Statements
This press launch incorporates forward-looking statements referring to the enterprise outlook, forecast enterprise plans and progress methods of the Firm. These forward-looking statements are based mostly on info at present out there to the Firm and are acknowledged herein on the premise of the outlook on the time of this press launch. They’re based mostly on sure expectations, assumptions and premises, a few of that are subjective or past our management. These forward-looking statements could show to be incorrect and will not be realized in future. Underlying the forward-looking statements is numerous dangers and uncertainties. Additional info concerning these dangers and uncertainties is included in our different public disclosure paperwork on our company web site.
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