US$1b windfall: how Meituan’s bets on AI, robotics outshine quarterly loss
Investment windfall provides cushion as core-business margins face intense pressure from battle with Alibaba Group Holding and JD.com
On Monday, Meituan posted an adjusted net loss of 4.97 billion yuan (US$735 million) for the three months ended March 31, marking its third consecutive losing quarter. At the same time, the company disclosed that its investments in firms like Zhipu generated a 7.6 billion yuan gain.
The windfall was recorded as fair value through “other comprehensive income”, meaning it was excluded from Meituan’s operational profit-and-loss accounting.
According to its earnings release, Meituan held a 3.86 per cent stake in Zhipu, known internationally as Z.ai. Based on Zhipu’s market capitalisation of 629.5 billion yuan on Tuesday, Meituan’s equity interest translates to 24.3 billion yuan in financial gains.
Meituan’s shares jumped more than 9 per cent to HK$85.50 on Tuesday.