China's Lunar New Year holiday saw clear growth in restaurant footfall, according to CICC. The average daily spending of Meituan Life Service during the holiday increased by 36% compared to the previous year. This data indicates a positive trend in consumer behavior during the festive season in China. The increase in restaurant footfall and spending reflects the recovery of the food and beverage industry, which was heavily impacted by the COVID-19 pandemic. This growth in consumer activity is a positive sign for the Chinese economy, which has been facing challenges such as a property market crisis, weak exports, and concerns about falling consumer prices. The rebound in restaurant footfall and spending during the Lunar New Year holiday suggests that consumer demand in China is gradually recovering. [ba599725]
Shares of Chinese food delivery app Meituan rose 8.1% on Monday, reaching a four-month high of HK$95.35, following stronger-than-expected earnings. The company reported revenue of 73.7 billion yuan ($10 billion) in the quarter ending December 31, and swung to a profit from a loss a year ago. Meituan's earnings were boosted by its expansion into the Hong Kong market and a rebound in travel and recreational demand. However, the Chinese economy continues to face a decline in consumer spending and business activity. [4f89edd8]
Chinese food delivery giant Meituan reported a 25% year-on-year increase in first-quarter revenue, reaching 73.3 billion yuan (US$10.1 billion), beating analysts' estimates. The company's profit for the quarter was 5.4 billion yuan, a 60% increase from the previous year. Meituan's core local commerce operations, including on-demand food and grocery deliveries, hotel and travel bookings, and merchant marketing services, saw a revenue surge of 27.4% to 54.6 billion yuan. Meituan co-founder and CEO Wang Xing expressed the company's goal to expand into more international markets, including Southeast Asia. Meituan is also planning to launch its international food-delivery platform in Riyadh, marking its first expansion outside Greater China. The company's new initiatives business segment, which includes its online supermarket and community group-buying services, narrowed its operating loss to 2.8 billion yuan from 5 billion yuan a year earlier. [b8f80723]
In contrast, Hainan Meilan International Airport reported its full-year 2023 earnings, which missed expectations. The revenue for FY 2023 was CN„2.09 billion, an increase of 83% from FY 2022. The net loss narrowed by 12% to CN„136.0 million, and the loss per share improved to CN„0.29 from CN„0.33 in FY 2022. The revenue missed analyst estimates by 3.9%, and earnings per share also missed analyst estimates. The company's only revenue segment in the last 12 months was operating an airport and a hotel, contributing CN„2.09 billion. The cost of sales amounted to 98% of total revenue. The most substantial expense, totaling CN„64.9 million, was related to non-operating costs. Looking ahead, revenue is forecasted to grow at an average rate of 14% per year for the next 3 years. The company's shares are up 1.6% from a week ago. [48667093]
Haidilao International Holding (HKG:6862) reported its full-year 2023 earnings, beating expectations. The company's revenue increased by 34% from FY 2022 to CN„41.5 billion, while net income rose by 175% to CN„4.50 billion. The profit margin also improved from 5.3% in FY 2022 to 11%. EPS increased from CN„0.30 to CN„0.83. Same store sales growth was 3.8% compared to FY 2022, and the total store count increased by 3 to 1,374. Analysts forecast an average revenue growth of 8.7% per year for the next 3 years, lower than the 13% growth forecast for the Hospitality industry in Hong Kong. The company's shares have increased by 13% in the past week. [792cadce]
DPC Dash Ltd - Domino's Pizza China has opened its 900th store in Chengdu, China, marking a significant achievement in the company's growth strategy. The launch was met with enthusiasm from customers, with long queues forming outside the newest location. DPC Dash's stores hold all of the top-20 spots for first-30-day sales records across Domino's global network of over 20,000 stores. The company aims to open approximately 240 net new stores in 2024 and reach the 1,000-store milestone by the end of the fourth quarter. DPC Dash is Domino's Pizza's exclusive master franchisee in mainland China, Hong Kong, and Macau. [121e288c]