Bullish Points:
- Revenue for the year 2023 increased by 25.8% to RMB 276.7 billion from RMB 220 billion in 2022.
- Gross profit for the year 2023 rose to RMB 97.19 billion, up from RMB 61.75 billion in 2022.
- Operating profit for the year 2023 was RMB 13.41 billion, a significant improvement from an operating loss of RMB 5.82 billion in 2022.
- Net profit for the year 2023 was RMB 13.85 billion, recovering from a net loss of RMB 6.68 billion in 2022.
- Adjusted EBITDA and adjusted net profit for 2023 increased substantially to RMB 23.87 billion and RMB 23.25 billion, respectively.
- Operating cash flow was strong at RMB 40.5 billion in 2023.
- Cash and cash equivalents and short-term investments were robust at RMB 33.3 billion and RMB 111.8 billion, respectively, as of December 31, 2023.
- Core local commerce revenue grew by 28.7% year-over-year to RMB 206.9 billion in 2023.
- The food delivery business consolidated its market-leading position in 2023.
- Annual active users and merchants grew by over 30% and 60% year-over-year, respectively.
- The company's hotel and travel business transaction volume grew significantly in 2023, capturing the rebound in offline consumption.
- The company's investment portfolio increased in value, indicating successful strategic investments.
Bearish Points:
- The new business segment reported an operating loss of RMB 20.2 billion for 2023, although this was a narrowed loss compared to RMB 28.4 billion in 2022.
- Sales and marketing expenses increased by 47.5% from RMB 39.7 billion in 2022 to RMB 58.6 billion in 2023, indicating higher costs to attract users.
- Meituan Select's growth slowed down in 2023 due to the community e-commerce market size remaining flat year-over-year.
- The company recorded impairment losses on financial and contract assets, indicating potential concerns over asset valuations.
- The fair value changes of financial investments showed a loss in Q4 2023 compared to a gain in Q4 2022, suggesting volatility in investment returns.
The final result shows that MEITUAN-W(03690) has demonstrated strong financial performance with significant growth in revenue, gross profit, and net profit. The company has successfully turned around from a loss in 2022 to a profit in 2023. The core local commerce segment continues to be a major driver of growth, and the company's strategic investments appear to be paying off. However, the new business segment is still operating at a loss, and there are increased costs associated with sales and marketing. Additionally, there are some concerns over asset valuations and investment return volatility. Overall, the company's financial health appears robust, with a strong cash position and positive operating cash flow.
For more information, you can read the original text of MEITUAN-W(03690)'s financial report here.
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