By XU Shiqi
Following the news of double-digit growth in revenue and profits by lifestyle e-commerce platform Meituan, The company's Hong Kong-listed shares not only failed to rise but tanked by more than 10 percent on Wednesday.
Meituan's Q3 revealed a revenue of 76.5 billion yuan (US$11 billion), a year-on-year increase of 22.1 percent, and a net profit of 3.6 billion yuan, close to triple the amount seen this time last year.
New businesses showed 15.3 percent year-on-year growth, reaching 18.8 billion yuan. Operating losses decreased by 24.5 percent to 5.1 billion yuan.
In the fourth quarter of last year, the impact of the pandemic resulted in a high base for Average Order Value (AOV), with many small and medium-sized businesses temporarily ceasing operations. Users also reduced purchases of higher-priced daily necessities and medicine, leading to a decline in AOV.
Meituan CEO WANG Xing emphasized that the stock price of Meituan reflects the valuation of the delivery business and does not align with the company's intrinsic value.
To boost market confidence, from December 1, Meituan will buy back company shares in the open market for a total amount not exceeding US$1 billion.
