Chinese food delivery giant Meituan (3690 HK) reported Q2 financials after the Hong Kong close this morning.
Chinese food delivery giant Meituan (3690 HK) reported Q2 financials after the Hong Kong close this morning. The results beat analyst expectations across the board. The company did however post a loss stating: “new initiatives and other segments widened as we continue to invest in areas that will bring long-term value to the Company”. We knew this was going to occur as the company indicated previously an investment in growing their grocery business and e-commerce business. The Q&A was dominated by questions about regulations, which the company says they are addressing. Within the Q2 results was a statement which mentioned that the company is being investigated for anti-competitive practices and that the company “is not able to predict the status or the results of the investigation at this stage”. Similar to previous calls, management aligned itself with long term policies. Ultimately Meituan employees represent a large number of delivery workers who don’t have job prospects elsewhere. The user data shows how popular the company’s delivery service is. Asian equities were largely higher post-Jackson Hole though it was a fairly quiet night. It was a busy day for China due to a large number of companies reporting earnings. EV maker Li Auto (LI US) reported Q2 this morning before the US market open, beating revenue and EPS expectations while doubling Q2 2021 auto deliveries versus Q2 2020. Ganfeng Lithium (002460 CH) reported 1 st half revenues increased +70% year over year to RMB 4.03B while net income increased to RMB 1.
