Meituan Raises Debt as Profit Swings to Loss in 2025

Meituan reported a significant swing to a RMB23.4 billion loss for the year ended December 31, 2025, compared to a RMB35.8 billion profit in 2024, according to its latest monthly return filing. This downturn occurred despite revenue increasing to RMB364.9 billion in 2025, up from RMB337.6 billion the prior year.

Contributing to the reversal was a substantial increase in non-current liabilities, rising to RMB72.4 billion at the end of 2025 from RMB43.8 billion in 2024. Concurrent with this liability increase, Meituan announced a debt offering, indicating a strategic move to raise capital through structured products. This is notable as the company held RMB101.7 billion in cash and cash equivalents as of June 30, 2026, suggesting the debt issuance isn’t driven by immediate liquidity concerns but rather a planned investment or strategic initiative.

The filing details several non-IFRS accounting measures intended to provide a clearer picture of operating performance, including ‘Adjusted EBITDA’ and ‘Adjusted Net Profit’. However, the reported loss of RMB23.4 billion under IFRS standards – the primary measure – highlights a substantial deterioration in financial performance. The company’s adjusted net profit also showed a significant decline, falling into a loss of RMB18.6 billion for the year.

While the company’s total assets increased to RMB346.9 billion in 2025, the shift towards debt financing, coupled with the significant net loss, suggests a change in Meituan’s financial strategy. The reason for the debt offering and intended use of funds remain unclear from this filing, leaving the question of how Meituan intends to address its declining profitability unanswered.