Meituan back in the black but losses loom

Business | Reuters and Stella Zhai 31 Mar 2020

Meituan Dianping (3690) warned it will suffer from a loss in the first quarter despite demand for food deliveries, after returning into the black last year.

The mainland food delivery giant recorded a net profit of 2.24 billion yuan (HK$2.45 billion) in 2019, compared with a net loss of 115.5 billion yuan a year before. Basic earnings per share were 69 fen and no final dividend was declared.

The company's revenue expanded by nearly 50 percent year-on-year to 97.5 billion yuan in 2019, driven by the increase in the number of transacting users and their purchase frequency. Revenue from food delivery grew 44 percent year-on-year to 54.8 billion yuan.

Net profit for the last quarter in 2019 was 1.46 billion yuan, compared with a loss of 3.41 billion yuan a year ago. Revenue grew 42 percent year-on-year to 28.16 billion yuan.

Meanwhile, Hop Hing (0047), the chain operator of Yoshinoya and Dairy Queen in the mainland, said its net profit slightly rose 0.6 percent year-on-year to 104 million yuan in 2019 and it would slow new openings for the first half this year.

Basic earnings per share were 1.07 fen and a final dividend of 0.248 HK cent. Turnover last year rose 5 percent to 2.1 billion yuan.

The company plans to resume exploring store opening opportunities within first- and second-tier cities after Covid-19 is well under control and will consider adding more technological elements into its stores to promote "non-contact" self-services.

In other news, Evergrande Health Industry (0708) saw its net losses last year deepen by 2.5 times from a year ago to 4.95 billion yuan, with expanding investments in the research and development of new energy vehicles.

Losses per share were 51.23 fen last year, and no dividend was declared. Revenue expanded by 79.9 percent year-on-year to 5.64 billion yuan last year, with revenue from healthcare management business rising 58.8 percent to 4.98 billion yuan. Administrative expenses increased by 8.42 times to 3.16 billion last year.

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