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CEO Wang Xing: MEITUAN-W Will Bend over Backwards to Win Competition; Core Local Biz OP Expected to Plunge YoY in 2Q
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MEITUAN-W (03690.HK)(MPNGY.US) CEO Wang Xing expressed at the financial results meeting that market competition helps foster industry development, especially accelerating the growth of instant retail represented by Meituan Instashopping, Chinese news broke. However, low-quality low-price "involution" competition looks unsustainable in the long run, opined Wang. The food delivery industry in the mainland has entered a new stage, where neither platforms nor merchants should revert to the aggressive subsidy-driven competition model of many years ago. Speaking of the impact of JD-SW (09618.HK)(JD.US) "100 Billion Subsidy" on Meituan's food delivery business, Wang frankly pledged that Meituan will bend over backwards to win the competition. Meituan has experienced several rounds of fierce competition in the past, said Wang, foreseeing it can win this time as well. Meituan welcomes new players to the battlefield, considering that the food delivery industry has enormous potential. However, it is noted that some subsidies in the current industry competition are irrational. Wang conceded that Meituan may experience financial fluctuations in the short term but will adhere to the principles of fair and orderly competition. The company will amplify ecological investment as promised, and it is anticipated that the growth rate of core local business revenue in 2Q25 will be lower than the same period last year, with OPM plunging YoY. AASTOCKS Financial News Website: www.aastocks.com |
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