Meituan (MPNGF) CEO Xing Wang on Q1 2022 Results - Earnings Call Transcript

For the period ending March 31, 2022

June 2, 2022 7:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to Meituan's First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

And now I'd like to hand the conference over to Ms. Scarlett Xu, Vice President and Head of Capital Markets. Thank you. Please go ahead, ma'am.

Scarlett Xu

Thank you, operator. Good evening, and good morning, everyone. Welcome to our first quarter earnings conference call. Joining us today are Mr. Xing Wang, Chairman and CEO; and Mr. Shaohui Chen, Senior Vice President and CFO of Meituan. For today's call, management will first provide a review of our first quarter results and then conduct a Q&A session.

Before we start, we would like to remind you that our presentation contains forward-looking statements, which include a number of risks and uncertainties and may differ from actual results in the future. This presentation also contains unaudited non-IFRS financial measures and should be considered in addition to and not as a substitute for measures of the company's financial performance prepared in accordance with IFRS.

For a detailed discussion of risk factors and non-IFRS measures, please refer to the disclosure documents in the IR section of our website. Now I will turn the call over to Mr. Xing Wang.

Please go ahead, Xing.

Xing Wang

Thank you, Scarlett. Hello, everyone, and welcome to Meituan's first quarter 2022 earnings call. We achieved a healthy growth across different businesses in Q1, despite the spread of omicron to more regions in China since March. For the first quarter of 2022, our total revenue increased by 25% year-over-year to RMB 46.3 billion. Annual transacting users on our platform increased to 693 million, while the number of annual active merchants increased to about 9 million.

The average number of transactions -- transacting user increased to 37.2 on the trailing 12 months of Q1 2022 compared to 30.5 for the trailing 12 months of Q1 2021. Adhering to our upgraded company strategy, Retail+Technology. We never cease to provide consumers with diverse high-quality services and daily necessity supplies during the recent COVID resurgence. We proactively responded to government's guidance around COVID resurgence since March, building our social responsibilities and creating more value for the society at large. Specifically, our on-demand delivery network played a meaningful role in providing consumers in the affected areas with daily necessities and daily services, including news, groceries, medicines and running errands. I am proud of how our teams work seamlessly together across the company to find a safe and creative solutions for consumers emergence during challenging times.