Translated by: MOS Translation Team – Kayla
According to foreign media news on November 26, since April this year Tencent’s investment in Meituan has been subject to an anti-monopoly investigation by the Chinese market regulator, and ended last month with a fine of 3% of its 2020 revenue, or 3.4 billion yuan. The quarterly report submitted this Friday showed that the fines brought the largest single-quarter loss in the past three years, and Meituan lowered its outlook for 2022.
Meituan’s business includes food products evaluation and bicycle sharing, and is now facing the challenges brought about by the economic slowdown in the mainland. The company’s CEO Wang Xing told analysts that due to the impact of the floods in the Central Plains and the closures by COVID on the restaurant industry, the growth rate of the core business of food delivery dropped to 29.5% from July to September. “We expect Q4 this year, and maybe the first few quarters of next year will be negatively affected.”
Meituan reported a loss of RMB 10 billion in the third quarter, compared with a profit of RMB 6.3 billion in the third quarter of last year. Meituan has been criticized for poor treatment of couriers, and most of its riders do not have basic medical and social security.
Proofread by: Comet2056
Edited by: Comet2056
Posted by: Comet2056
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