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China’s Meituan.com Reports Semi-annual Sales Of CNY1.916 Billion

Chinese group buying website Meituan.com published its latest sales statistics, claiming that the company achieved sales of CNY440 million in June 2012.

According to local media reports, about CNY422 million of the total CNY440 million was from the sales of local services, accounting for 96%.

Meituan.com started disclosing its sales results from 2012. Based on the previously published statistics, the company’s sales were CNY200 million in January, CNY240 million in February, CNY300 million in March, CNY350 million in April, CNY386 million in May, and CNY440 million in June, totaling CNY1.916 billion for the first half of 2012. Meanwhile, from March 2011 to March 2012, Meituan.com’s sales were CNY1.819 billion.

Wang Huiwen, vice president of Meituan.com, told local media that at present, Meituan.com’s gross margin is about 7%, and the company can realize profit if the gross margin exceeds 8%. Wang said they expect to make profit by the end of 2012.

Statistics provided by the Chinese leading group buying navigation website Tuan800.com showed that by sales volume, Meituan.com currently ranks first in the Chinese group buying market.

Meituan.com is still a private company. So by publicly providing these type of financial results, the company appears eager to either seek an acquirer, or prepare for an initial public offering. Since its financial results lack the scrutiny that publicly-listed companies often face, all figures should be considered dubious until proven otherwise. Also, it is still unclear whether its financial results follow China GAAP, Hong Kong GAAP, or U.S. GAAP. Depending on the GAAP it uses, retail-friendly relationships comprised of barters or exchange of services could be considered revenue, and therefore the company’s revenues could potentially appear high.

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