Chinese food delivery giant Meituan has reported impressive financial results for the first quarter of 2023, demonstrating a remarkable turnaround from the same period last year. The company achieved a net profit of RMB 3.36 billion ($486 million), a substantial improvement compared to the RMB 5.7 billion loss recorded in Q1 2022. Meituan’s total revenue for the quarter reached RMB 58.62 billion, representing a year-on-year increase of 26.7%.

The recovery in consumer demand played a significant role in driving Meituan’s revenue growth, particularly in its core local commerce segment, which encompasses various businesses such as food delivery, in-store services, hotels, and travel. This segment experienced a remarkable 25.5% surge in revenue, reaching RMB 42.9 billion during the quarter. Additionally, Meituan’s new initiatives, although yet to generate profits, exhibited promising signs as their losses decreased by 40.5% to RMB 5 billion.

During an earnings call, Meituan CEO Wang Xing acknowledged the company’s ongoing efforts in the field of artificial intelligence (AI). While Meituan has an internal team dedicated to developing AI models and applications, Wang Xing clarified that they currently have no tangible outcomes to showcase. The company’s focus on AI reflects its commitment to leveraging technology to enhance its services and maintain its competitive edge in the highly dynamic food delivery industry.

Meituan’s impressive financial performance in Q1 2023 showcases its ability to navigate challenges and capitalize on recovering consumer demand. The company’s strategic investments and focus on innovation, including AI development, position it well for continued growth in the evolving landscape of food delivery and local commerce.