(Yicai Global) Dec. 1 -- China’s leading meal delivery platform Meituan's net profit for the third quarter nearly quintupled from the same period last year largely on the back of a swelling investment portfolio and a big leap in take-out orders as the Covid-19 pandemic keeps people dining-in.

The Beijing-based firm raked in CNY6.3 billion (USD958.8 million) in profit for the three months ended Sept. 30, according to the company’s latest earnings report released yesterday. Nearly 90 percent of this came from investments in firms such as electric car maker Xpeng Motors whose shares have quadrupled in value since debuting in New York in August. However, such earnings are on paper only. Net profit from operations was up 5.8 percent year on year to CNY2.1 billion.

Revenue soared 28.8 percent to CNY35.4 billion (USD5.4 billion), as takeout orders continued to soar amid Covid-19. The firm delivered 34.9 million meals a day on average in the third quarter, up 30.1 percent year on year. The segment’s gross transaction volume for the period jumped 36 percent to CNY152.2 billion.

Meituan’s share price [HKG:3690] gained 3 percent this morning before closing down 0.28 percent at HKD289.20 (USD37.30), with a market capitalization of HKD1.7 trillion (USD220.6 billion).

It remains to be seen how new anti-trust guidelines drafted by the country's watchdogs last month to rein in internet monopolies will affect the firm's future performance.

Meituan is in close contact with regulators, Chief Executive Officer Wang Xing said at the earnings conference call. The company will adopt an open mind and more inclusive attitude in order to comply with the new regulations, he added.

Revenue from new initiatives such bike sharing, small loans and an online grocery retail service, soared 43.5 percent to CNY8.2 billion (USD1.2 billion) but the segment is still in the red with losses expanding to CNY2 billion from CNY1.5 billion in the second quarter.

The firm spent CNY4 billion (USD608.8 million) on its bike-sharing business in the third-quarter and it will continue to invest in it next year, Wang added.

Editor: Kim Taylor