MEITUAN (stock short name: MEITUAN-WR) reported a RMB4.67 billion net loss for the first half of 2026, reversing a RMB10.42 billion profit a year earlier. The setback stemmed mainly from a first-quarter downturn and increased AI-related spending; however, second-quarter performance rebounded sharply with net profit surging to RMB2.16 billion from RMB365 million in the same period of 2025.
Second-quarter revenue rose 14.4 % year-on-year to RMB104.64 billion, lifting first-half revenue 10.1 % to RMB195.68 billion. Core Local Commerce remained the main engine, posting Q2 revenue of RMB71.53 billion (+10.1 %) and operating profit of RMB5.67 billion, pushing segment margin to 7.9 % from 5.7 %. The New Initiatives segment grew revenue 25.0 % to RMB33.11 billion and narrowed its operating loss to RMB1.74 billion, yielding a negative margin of 5.3 % versus 7.1 % a year earlier.
Group adjusted EBITDA climbed 47.3 % to RMB4.10 billion in Q2, while Q2 adjusted net profit rose 69.0 % to RMB2.52 billion. For the half-year, adjusted EBITDA fell 93.0 % to RMB1.05 billion owing to the weak first quarter, and the Group recorded an adjusted net loss of RMB2.44 billion versus a RMB12.44 billion profit a year ago.
Operating cash flow amounted to RMB2.72 billion for the half, with quarter-end cash and cash equivalents at RMB104.72 billion. Total borrowings and notes payable stood at RMB88.73 billion, leaving the company in a net cash position and a negative 10.5 % gearing ratio. MEITUAN redeemed US$1.48 billion of 2028 convertible bonds during the period, transferring RMB0.81 billion of the associated equity component to share premium.
The Board declared no interim dividend.
Capital commitments reached RMB5.31 billion, and the company disclosed a pending US$717 million acquisition of Dingdong Fresh Holding Limited, subject to regulatory approvals; a termination fee of up to US$150 million could apply if the deal falls through.
Management highlighted ongoing investment in AI and technology, which lifted first-half R&D expense 22.3 % to RMB14.71 billion. Despite the first-half loss, the company reported resilient domestic food delivery demand, rapid growth in grocery retail unit Xiaoxiang Supermarket and continued overseas expansion through Keeta.
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