Meituan Dianping Ord Cl B

Thank you for standing by and welcome to the MeTwan fourth quarter and full year 2025 earnings conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Scarlett Zhu, VP and Head of Capital Markets. Please go ahead.

Thank you, operator. Good evening and good morning, everyone. Welcome to our fourth quarter and fiscal year 2025 earnings conference call. Joining us today are Mr. Xin Wang, Chairman and CEO, and Mr. Shao-Hui Chen, Senior Vice President and CFO of Meituan. For today's call, management will first provide a review of our fourth quarter and fiscal year 2025 results and then conduct a Q&A session. Before we start, we would like to remind you that our presentation contains forward-looking statements which include a number of risks and uncertainties and may differ from actual results in the future. This presentation also contains an audited IFRS accounting standards financial measures that should be considered in addition to and not as a substitute for measures of the company's financial performance prepared in accordance with IFRS accounting standards. For a detailed discussion of risk factors and non-IFI accounting standards measures, please refer to the disclosure documents in the IR section of our website. Now I will turn the call over to Mr. Xin Wang. Please go ahead, Xin.

Thank you, Scarlett. Hello, everyone. 2025 was a year of both opportunities and challenges for Meituan. Facing unprecedented challenges, intense competition, we stay focused on serving our consumers, merchants, couriers, and all ecosystem partners. We were committed to creating long-term value. In 2025, our platform GTV and transaction volume both achieved double-digit growth. And at new transacting users and user transaction frequencies, and Apple all reached a new high. And these key metrics reaffirmed our solid position as the preferred local service platform for Chinese consumers. In 2025, we fully upgraded our Meituan membership program. This was our first consumer loyalty program covering nearly all categories. It helped us drive cross-selling and enhance core user stickiness. Meanwhile, leveraging our comprehensive advantages in local services, we launched our own AI assistant, Xiaomei and Xiaoduan. We brought AI technology into real consumption use case. Going forward, Meta membership and AI will continue to be the key tools for us to deliver differentiated and enhanced local experience. No matter how the market environment evolves, we remain focused on strengthening our long-term modes and promoting the healthy and sustainable development of the whole industry. We also actively pursue the new growth opportunities. During 2025, we made a series of key progress. First, we accelerated our deeper penetration into the supply side and built a comprehensive cost-effective supply system spanning a full price range and diverse categories through supply-side innovation. This allowed us to precisely meet users' comprehensive needs across food delivery pre-commerce, and services retail. It also strengthened our positioning as a one-stop local service platform. In food delivery, we focused on innovation in products, store formats, and channels in collaboration with the merchants. Innovative formats such as branded satellite stores, 品牌卫星店, 换熊食堂, Raccoon Kitchens, have helped a large number of restaurant brands and small and medium-sized merchants improve operational efficiency and expand their businesses. Through Ping Hao Fan, Shen Qiang Sou, and other formats, we work with the merchants and launch the high-quality, value-for-money mega-heat products across different price ranges, serving a broader consumer base. In QuickCommerce, we deepened our presence in local supply, becoming an important partner for many leading brands in their omni-channel strategies. We continue to extend our reach in the supply chain. Our innovative supply format, including Meituan Instamart, Meituan SanDianCang, and branded flagship Instamart, PinPai GuanQi SanDianCang, as well as our self-operated Xiaoxiang supermarket and micro-fulfillment center have become important supply for quick commerce. Weimar Songzhou achieved rapid growth as we worked closely with top liquor brands. In healthcare and pharmaceuticals, we continue to strengthen local supplies of common household medicines medical devices, supported the online launch of many innovative drugs, and further expanded coverage of 24-hour pharmacies, online consultations, and home testing services. Xiaoxiang supermarket accelerated its city expansion in the fourth quarter. Over the past few years, Xiaoshan Supermarket has built a strong supply chain, upgraded fresh produce quality, and developed industry-leading product capabilities. Our private label products now cover broader categories, contributing higher GTV shares. In our in-store hotel and travel business, we featured our high-quality merchant recommendation list expanded our fifth series programs, Anxin Xilin, to more categories such as education, fitness, healthcare, and elderly care. Based on our deep insights into consumption trends, we further enriched offerings in sports events, cultural and art ticketing, home services, and more. In addition, We supported over 1 million independent artisans in digitizing their profiles on our platform, enhancing our unique service ecosystem and connectivities. Second, we focused on enhancing our comprehensive service capabilities. Through product iteration and membership upgrades, we delivered a superior consumption experience for consumers. In fulfillment, we upgraded on-time guaranteed and one-on-one express delivery significantly expanding their coverage in 2025. This provided consumers with a more reliable and higher quality fulfillment protection and strengthened our competitive edge in fulfillment. In QuickCommerce, we launched the industry's first full-cycle service assurance program, Anxin Shangou, with millions of merchants and brands. It offers free return shipping for high-tier MetaM members and selected brands' products. It lifts industry service standards across experience, fulfillment, delivery, and after-sales support. In health care, we expanded online consultation with grade 3A hospital doctors. We upgraded the verification and service protection for dental care, medical aesthetics, and other services. These efforts comprehensively improved the reliability of online health care services. And we deeply integrated these high quality services with our fully upgraded Meituan membership. We launched a series of exclusive benefits for our members, covering various consumption scenarios such as food delivery, hotel booking, lifestyle services, mobility, health care, and more. Richer member-inclusive benefits and activities significantly improved consumer mind shares and transaction frequency, allowing us to better serve our core user base. As a result, a large number of mid-tier members advanced to higher membership tiers. Our high-value member base continues to grow steadily amid very intense competition, with their transaction frequency and spending rising notably. They also make purchases across a broader range of categories. Our continuously enhanced Meta membership program delivers strong multi-dimensional support It boosts the traffic operations and transactions and grows. It also drives cross-selling among different categories and different scenarios within our core local commerce business. Overall, we have strengthened our leading position in user structure and consumer mindshare.