Meituan (OTCPK:MPNGF) Q2 2023 Earnings Conference Call August 24, 2023 7:00 AM ET

Company Participants

Scarlett Xu - Vice President and Head of Capital Markets

Xing Wang - Chairman and Chief Executive Officer

Shaohui Chen - Senior Vice President and Chief Financial Officer

Conference Call Participants

Ronald Keung - Goldman Sachs

Gary Yu - Morgan Stanley

Thomas Chong - Jefferies

Alicia Yap - Citigroup

Yang Bai - CICC

Operator

Thank you for standing by, and welcome to the Meituan Second Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to Scarlett Xu, VP and Head of Capital Markets. Please go ahead.

Scarlett Xu

Thank you, Operator. Good evening, and good morning, everyone. Welcome to our Second Quarter 2023 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 second quarter 2023 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 that 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. Good evening everyone. And for the second quarter of 2023, our total revenue increased by 33.4% year-over-year to RMB58 billion. Adjusted net profit was RMB7.7 billion reaching the highest level in history. As offline consumption continued to rebound, China's local services market experienced a robust recovery. Leveraging our retail plus technology strategy, we made a significant stride in enhancing the efficiency of both goods retail and services retail, invigorated the local consumption market, and deepened online penetration among merchants. Our core local commerce segment achieved a significant year-over-year growth.

During the quarter, we continue to help over 10 million merchants on our platform enhance their online operations. In addition to our shop and search-based business model, we have also piloted short-form videos and live streaming, providing merchants with a more diversified set of marketing tools to reach consumers.