(Yicai Global) Nov. 26 -- Meituan reported a net loss of nearly CNY10 billion (USD1.56 billion) for the third quarter, the Chinese food delivery giant’s biggest since the same period of 2018, after operating losses widened at new businesses.
The loss in the three months ended Sept. 30 compared with a net profit of CNY6.3 billion a year earlier, the Beijing-based company’s latest financial statement revealed today. Revenue rose 38 percent to CNY48.8 billion (USD7.64 billion).
Income from new businesses jumped nearly 67 percent to CNY13.7 billion in the quarter, mainly driven by growth in Meituan’s retail businesses as well as bike-sharing and moped services, but their operating losses still tallied CNY10.9 billion.
“Operating loss from the new initiatives and others segment expanded, as we continued to invest in areas that would bring long-term value to the company,” Meituan said.
Income from its main food delivery business rose 28 percent to CNY26.5 billion, while that of its in-shop, hotel and tourism business climbed 33 percent to CNY8.6 billion.
The transaction value of Meituan’s food delivery business rose almost 30 percent to CNY197.1 billion (USD30.8 billion), and the average daily number of transactions was 43.6 million, up nearly 25 percent.
Meituan is one of numerous large platform operators in China to fall foul of antitrust investigations this year. Last month, the market regulator fined Meituan about CNY3.4 billion (USD532 million) for monopolistic conduct, bringing to a close a five-month probe into the company.
Shares in Meituan [HKG: 3690] closed down 3.9 percent at HKD263.60 (USD33.80) each. The earnings results came out after the close of trading in Hong Kong.
Editor: Tom Litting