On June 2, Meituan (03690.HK) opened sharply higher and extended gains in early trading. As of 9:56 a.m., the stock was trading at HK$82.65, up 5.62%, with turnover reaching approximately HK$2.675 billion. It touched an intraday high of HK$82.85. Investor sentiment was boosted by the company’s stronger-than-expected results for the first quarter of 2026, driving active capital inflows and solid early-session momentum.

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Q1 Revenue Beats Expectations; Loss Narrows Significantly Quarter-on-Quarter

On June 1, Meituan reported its results for the first quarter of 2026. Revenue reached RMB 91.04 billion, representing a year-on-year increase of 5.6% and slightly above market expectations of RMB 90.79 billion. Adjusted net loss came in at RMB 4.97 billion, better than the market consensus forecast of a RMB 6.8 billion loss.

Compared with the adjusted net loss of RMB 15.1 billion recorded in the fourth quarter of 2025, quarterly losses narrowed by more than RMB 10 billion, drawing market attention to signs of improving profitability.

Increased Subsidy Spending Weighs on Core Business in the Near Term

Despite resilient revenue growth, Meituan continued to face pressure on profitability during the quarter. Selling and marketing expenses rose to RMB 23.0 billion, up 51.1% year-on-year, accounting for a larger share of revenue.

Market observers generally attributed the increase to continued competition in food delivery and instant delivery, as well as higher spending on user subsidies and merchant incentives.

Revenue from the company’s Core Local Commerce segment totaled RMB 64.1 billion in the first quarter, broadly flat year-on-year. Profitability in this segment was pressured by higher rider subsidies, rising fulfillment costs, and intensified promotional spending. However, on a quarter-on-quarter basis, losses narrowed noticeably compared with the previous quarter, indicating early signs of operational improvement.

New Initiatives Maintain Growth; Profitability Recovery Remains in Focus

Meanwhile, new businesses continued to contribute incremental growth. Revenue from Meituan’s new initiatives rose 21.3% year-on-year to RMB 27.0 billion. Grocery retail businesses including Xiaoxiang Supermarket and Kuailv maintained expansion momentum, with merchandise sales continuing to grow rapidly. Its overseas business, Keeta, also sustained growth during the quarter.

Overall, Meituan delivered a set of results characterized by steady revenue growth and a meaningful narrowing of losses in the first quarter. While near-term profitability remains under pressure amid ongoing competition, the company’s path toward earnings recovery is becoming increasingly visible as subsidy spending gradually stabilizes and operating efficiency continues to improve.

Looking ahead, investors will continue to watch how competition in the instant delivery market evolves, as well as whether margins in Meituan’s Core Local Commerce segment can continue to recover.

How to Buy Meituan on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code (03690.HK) , and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

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