(Yicai Global) Aug. 31 -- Meituan’s shares jumped after China’s biggest food delivery and on-demand services platform reported a smaller loss in the second quarter and its revenue surged 77 percent. But it also warned of more potential anti-trust fines amid the country’s tightening regulatory oversight of the internet sector.

Meituan’s stock price [HKG: 3690] gained 9 percent to finish at HKD249 (USD32), its highest today.

Beijing-based Meituan’s net loss fell 31 percent to CNY3.4 billion (USD525.7 million) in the three months ended June 30, from CNY4.6 billion in the first quarter, due to new business investments, its earnings report showed yesterday. It was the firm’s third straight quarterly loss. Revenue was CNY43.8 billion (USD6.8 billion).

New initiatives, such as business-to-business food distribution services and bike-sharing, and other segments saw revenue more than double to CNY12 billion from a year earlier. Income from its core food and beverage takeaway services jumped 59 percent to CNY23.1 billion, with gross transaction value up about the same at CNY173.6 billion (USD26.8 billion).

In-store, hotel and travel services grew steadily, with revenue up 89 percent to CNY8.6 billion. The number of annual users and active merchants was 630 million and 7.7 million, respectively. The average annual transactions reached 32.8 per user, an increase of nearly 28 percent.

Delivery driver costs rose 53 percent to CNY15.5 billion. Meituan’s research and development spending rose over 60 percent to CNY3.9 billion.

The internet titan also warned investors that it may need to pay “a significant amount” of anti-trust fines. Meituan and four other group-buying platforms were already fined a maximum total of CNY6.5 million (USD1.01 million) in March after undercutting competitors with substantial subsidies for bulk orders, according to the State Administration for Market Regulation.

The SAMR’s probe of Meituan, started in April, is still ongoing. Meituan is actively cooperating with the market regulator, it said, while adding that the firm is unable to predict the results of the investigation. The SAMR also said yesterday that it will conduct an investigation into Meituan’s failure to declare its acquisition of bike-sharing business Mobike.

“The policies and opinions issued by relevant state departments this time have given Meituan clearer directional guidance and policy path,” Chief Executive Wang Xing said during the firm’s earnings conference call.

Editor: Futura Costaglione