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The following is the Summary of 3q20 financial report meeting From Meituan recommended by recordtrend.com. And this article belongs to the classification: Group buying, Electronic Commerce, Online shopping.
On November 30, 2020, meituan (HKEx Code: 3690) released its financial statements for the third quarter ending September 30, 2020 on Monday. According to the financial report, meituan’s total revenue in the third quarter was 35.401 billion yuan, an increase of 28.8% over the same period of the same period last year. Among them, the income from catering delivery was 20.69 billion yuan, up 32.8% year on year. Wang Xing, chairman and chief executive officer of meituan, and Chen Shaohui, senior vice president and chief financial officer, attended the financial report teleconference to interpret the key points of financial report and answer analysts’ questions. The following is the minutes of the meeting.
Summary of performance exchange (based on public performance meeting)
Some additional quantitative figures in the presentation:
In the local services, such as medical beauty and pet care, which are related to consumption upgrading, grew by 80%. Some services targeted at specific groups increased by 40%. In the service of wine and tourism, the number of high star hotels cooperating with the company increased by 20% +.
Among the new businesses, food + increased by 46% quarter on quarter. Meituan’s flash purchase volume increased by 80% year on year. As part of all things home strategy, the company has successfully expanded categories, of which flower and drug GTV grew the most rapidly, 230% and 160% respectively year-on-year. As of the end of the third quarter, there were more than 100000 pharmacies and medical merchants in the company platform.
Q&A：
Q: what is the company’s view on future ideas and competitors in new business areas such as daily groceries and meituan optimization?
A: meituan preferred is a new project launched in July, which is reflected in Q3 financial report. The company has invested a lot of manpower and resources in this respect, which is also the focus of the company’s work. In addition to catering and food distribution, the company found that many users still need to purchase daily necessities, which is a huge market. For this, the company has adopted several models, hoping to find effective models for target groups and improve market penetration. These segments are growing very fast and we don’t know who will win.
Generally speaking, we don’t want to give the impression that we can answer all the questions. We can make sure that the company will iterate the products as fast as possible and keep learning. We hope to expand the daily necessities to 1000 counties and cities in China by the end of this year, so as to realize win-win results with the company’s resources. To develop related businesses, the company has several advantages: the company understands how to develop online and offline business, and has accumulated rich experience in related business (such as meituan shopping, B2B kuaiju). Based on the above advantages, the company has the ability to develop relevant platforms and systems, continue to increase investment in infrastructure, technology, supply chain, etc., and is willing to accept challenges and competition. The company will try its best to turn some items in the profit statement from negative growth to positive growth, so as to create value for related businesses in the long term and strategically, and bring returns to consumers, shareholders and society.
Q: with regard to the multiple business models in the new business, how does the company view the prospects of these models? For example, will there be only one mode in a region or will there be multiple modes in the future? Can you further talk about the detailed data of meituan’s preferred growth?
A: the market penetration rate of community group buying business has increased significantly. I think there will be multiple business models in the future. The company has three related business models: meituan preferred, meituan flash purchase and self operated mode (meituan buying vegetables and meituan daily groceries).
Meituan selects the main price, aiming at price sensitive users. Some cities and regions are relatively remote, so it is not easy for the company to reach the next day. Therefore, SKU is limited, and the focus will be on price adjustment, so as to create value for users. Meituan flash shopping is launched in high-speed and low-line cities at the same time, with a wide range of categories and online timely delivery services. The arrival business will also benefit. Flowers and medicines are developing rapidly in Q3; in the self operated mode, we will emphasize the supply chain capability, such as delivery within 30 minutes. In the above-mentioned mode, the company continuously strengthens its storage capacity, has more than 100 open storage platforms, and will continue to increase investment in supply chain and technology.
Meituan optimization is just in its infancy. Gmv data has not been audited. If the conclusion changes after the audit, the company will communicate in time.
Q: the Mau of the company has reached a new high. How do you see its development in the next year?
A: in Q3, food and beverage takeout has been recovering since July. Dau, Mau and trading users have reached a new high in Q3. The company takes a positive view of the development of the industry, and there is still room for improvement in penetration rate. The epidemic has brought structural change opportunities to consumers and suppliers of the industry. The company hopes that the frequency of consumer transactions can grow steadily for a long time. The company will also diversify categories and development models, cooperate with different restaurants, provide different solutions, and make continuous progress in intelligent push and member business.
Q: how do you view the competitive environment, development trend and future strategy of the industry when you come to the store and resume the business of liquor and tourism?
A: the company hopes to maintain its leading position in the hotel travel market. In Q3, the company has become the world’s largest online hotel travel booking platform (in terms of hotel business volume (which may also mean cooperation volume). Domestic travel recovery is fast, and the long-term travel demand in some regions will continue to increase. The company hopes that the market penetration rate will continue to grow. Low end hotel market potential, the company will continue to focus on development. In terms of high-end hotels, five-star and four-star hotels have recovered significantly in summer. The company allocated more resources to high star hotels in Q3. Many high star hotels strongly hope to cooperate with the company, because the company has a wide range of users and strong drainage capacity. In the past few quarters, the company’s service capacity in high-end hotels has continued to improve, and the number and quality of hotels will continue to improve.
Q: how do companies view antitrust regulation?
A: over the past decade, Chinese Internet companies have developed rapidly, and the companies are optimistic about this. The company respects the relevant policies formulated by relevant departments. The company hopes that the development can achieve win-win results in many aspects, continuously promote the transparency and openness of the platform, promote product innovation of the company, and achieve a balance between bringing value to shareholders and realizing innovation.
Q: in the store business, some categories grow better. How do you see the future growth of different categories of business? How to look at the future profit situation?
A: the store business recovered significantly in Q3, especially in the categories of medical and household goods, and consumers showed strong demand. In terms of dining in restaurants, the volume of transactions and orders increased significantly. In the future, the company will innovate products, constantly encourage businesses to provide better related services, and identify the needs of different businesses. The company will continue to pay attention to all aspects of the daily needs of consumers.
In terms of finance, the quarterly development is due to the growth of GTV and the sound and healthy development of businesses. To the store is a good business model, but the focus of work is not profit, profit is the result of natural development, the company pays more attention to long-term development. The company hopes to provide different solutions for different businesses and consumers, expand service categories, and optimize the cost structure. The company hopes that the business can not only generate profits, but also bring good cash flow.
Q: what is the company’s future development plan for bike sharing and motorcycle business? For example, the synergy between the business and other businesses and the proportion of revenue?
A: the company invested 4 billion yuan in Q3, achieving a good growth of 30%. More urban consumers have a demand for low-cost commuting. As far as motorcycles are concerned, many consumers are willing to pay a premium for convenience. Motorcycles can also be a good alternative to some public transport. In terms of profitability, the scale effect will help. The company will invest more resources and increase investment in motorcycles in the future, but it is still cautious whether it can achieve good cash flow. About these businesses, the company will also focus on consumer experience, brand recognition, market share, etc. Consumers need some time to get used to the company’s cross selling strategy, so that consumers can buy more categories on the platform and bring more value to the platform. The company will continue to give full play to its advantages in catering distribution, and will be more cautious in some new business investment.
Meituan: half of the riders’ income is more than 4000 yuan in the first half of 2020. Meituan: revenue growth of 49.5% in 2019 to 97.5 billion yuan affected by the epidemic situation. Meituan: 1.07 million new riders in five months, accounting for 1 / 4 of the total number of riders in the platform in 2019 In February, the order volume of catering takeout was cut by half compared with the normal level. Meituan: the growth rate of sales cost continued to slow down, and the net profit of 4q19 continued to turn around the deficit. Meituan: in 2019, new business such as “sinking” of takeout increased rapidly and interestingly: 40000 takeout brothers were signed in 2019, and the annual income of meituan was 2 billion yuan. Meituan comments: the total revenue of 1q20 was 16.754 billion yuan, down 12.6% year on year. Jingdong: the revenue of 1q20 was 146.2 billion yuan Meituan’s comments: 2q20 teleconference record: cost per order decreased, automatic distribution function will be launched in the future Post-90s and Post-00’s comments on meituan: executives’ interpretation of 3q19 financial report and continuous improvement of local service ecosystem
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