Business Brief (Aug. 28): Meituan Profit Crashes 97% as Price War Deepens
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Here are the top business and economic stories from the past 24 hours and the key market events to watch.
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PetroChina’s profits pinched
PetroChina Co. Ltd.’s net profit fell more than 5% year-on-year to just over 84 billion yuan in the first half due to lower oil prices and weaker demand. The state-owned oil giant’s first-half operating revenue was also down from the same period the previous year, dropping over 6% to about 1.4 trillion yuan. The company cited flagging domestic demand for gasoline and other refined oil products, with the sales volume of the fuel falling 5% amid competition from alternative energy sources. In response, PetroChina plans to cut gasoline output and transform its filling stations into integrated energy hubs. One bright spot was jet fuel sales, which rose more than 12% year-on-year thanks to a recovery in air travel.
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- PetroChina’s H1 net profit dropped over 5% to 84 billion yuan due to weaker demand; Meituan’s Q2 net profit plunged 97% amid a food delivery price war.
- Nvidia’s Q2 revenue rose 56% to $46.7 billion, but a muted Q3 outlook triggered a share dip of up to 5% after hours.
- China targets over 10 million satellite communication subscriptions by 2030; new business visa hurdles in Japan, and Xiamen to implement personal bankruptcy rules.
Here is a summary of the top business and economic stories from the past 24 hours along with major market events to watch, as presented in the original text. [para. 1]
PetroChina posted a net profit decline of over 5% year-on-year, totaling just over 84 billion yuan for the first half of the year, primarily due to lower oil prices and reduced domestic fuel demand. The company’s operating revenue also dropped by more than 6% to around 1.4 trillion yuan. Gasoline sales volume fell 5% due to competition from alternative energy, prompting PetroChina to plan for reduced gasoline production and a shift to integrated energy stations. Despite these challenges, jet fuel sales increased over 12% year-on-year amid a recovery in air travel. [para. 3]
Meituan, a leading food delivery platform, saw its second-quarter revenue grow 12%, though this missed expectations. Net profit plunged 97% due to fierce price wars pushing marketing expenses up by 52%. Increased user transaction frequency could not offset the profitability impact. The company’s CFO expects further significant losses in its local commerce business in the third quarter amid ongoing intense competition. [para. 4]
Nvidia’s fiscal 2026 Q2 revenue reached $46.7 billion, marking a 56% year-on-year increase with net profit up 59% to $26.4 billion. The data center division led growth with $41.1 billion in revenue (+56%), and the company authorized an additional $60 billion in share buybacks. However, Nvidia forecasted modest Q3 revenues of around $54 billion (±2%), which led to a 5% after-hours share price drop. [para. 5]
China’s Ministry of Industry and Information Technology has set guidelines to foster over 10 million satellite communication subscriptions by 2030. This includes utilizing advanced high-orbit satellites such as Tiantong and BeiDou, plus accelerating direct satellite connections for mobile phones and devices. [para. 6]
China’s 2025 summer box office achieved 11.3 billion yuan as of August 27, marginally surpassing the 2024 figure (11.29 billion yuan) but significantly below the 2023 level (20.2 billion yuan). [para. 7]
EHang, a maker of electric vertical take-off and landing (eVTOL) aircraft, announced slower order deliveries for the latter half of 2025 and reduced annual revenue guidance to approximately 500 million yuan—only slightly up from 2024. Q2 deliveries of the EH216 series rose by 39% to 68 units year-on-year, as the company prioritizes customer support and operational safety. [para. 8]
Japan has raised business visa requirements to curb abuse by shell companies: the minimum required capital now stands at roughly 1.45 million yuan (up from 240,000 yuan), and applicants must hire at least one legal full-time employee. [para. 9]
Xiamen will implement personal bankruptcy rules from November 1, becoming the second Chinese mainland city—after Shenzhen—to do so. Eligible individuals who have lived or operated businesses in Xiamen for at least five years can apply for debt restructuring, reconciliation, or liquidation when insolvent. [para. 10]
Huawei will release a tri-fold smartphone on September 4, and Apple’s autumn event is set for September 10 (Beijing time), with iPhone 17 prices starting at $799. [para. 11]
Key upcoming events include U.S. jobless claims and second-quarter revised GDP growth data. Domestically, China’s Ministry of Commerce plans new policies to boost service sector consumption in September, and the country’s first optical quantum computer manufacturing plant has been established in Shenzhen. [para. 12][para. 13]
In company news, AI chipmaker Cambricon Technologies' shares briefly surpassed Kweichow Moutai; Sunac China posted a net loss of 12.8 billion yuan for the first half; sporting goods sales continue to rise with Anta leading, but Adidas and Nike showed mixed performances; and Zhihu posted a 90 million yuan profit despite ongoing revenue decline in Q2. [para. 14]
Internationally, 25 countries have suspended parcel shipments to the U.S. as the expiration of the de minimis tariff exemption approaches. [para. 15]
- PetroChina Co. Ltd.
- PetroChina Co. Ltd. experienced a more than 5% drop in net profit during the first half of the year, falling to just over 84 billion yuan. Their operating revenue also decreased by over 6% to approximately 1.4 trillion yuan. This decline was attributed to lower oil prices and weakened demand, particularly flagging domestic demand for gasoline. In response, PetroChina plans to reduce gasoline output and convert filling stations into integrated energy hubs.
- Meituan
- Meituan's second-quarter revenue increased by 12% year-over-year, but net profit plummeted by 97%. This significant drop was attributed to an intense price war in the food delivery sector, which led to a 52% increase in marketing expenses. The company expects substantial losses in its core local commerce business in Q3 due to fierce competition.
- Nvidia
- Nvidia reported strong Q2 fiscal 2026 results with a 56% revenue increase year-over-year to $46.7 billion and a 59% rise in net profit to $26.4 billion. Their data center business fueled this growth. However, a muted Q3 revenue forecast of $54 billion caused a 5% drop in shares.
- EHang
- EHang, an eVTOL maker, will slow new order deliveries in the second half of 2025 to focus on helping existing customers safely operate its aircraft. The company cut its full-year revenue guidance to about 500 million yuan. In Q2, deliveries of its EH216 series rose 39% year-on-year, reaching 68 units.
- Huawei
- Huawei is scheduled to release its new tri-fold smartphone on September 4th. This comes shortly before Apple's autumn product launch for the iPhone 17 series on September 10th.
- Apple
- Apple has scheduled its autumn product launch for September 10th Beijing time. Leaked prices for the iPhone 17 series indicate a starting price of $799 for the standard model, $1,049 for the Pro, and $1,199 for the Pro Max.
- Cambricon Technologies
- Cambricon Technologies, an AI chip designer, saw its shares surge on August 27, briefly surpassing the stock price of liquor giant Kweichow Moutai.
- Kweichow Moutai
- Kweichow Moutai is a liquor giant whose stock price was briefly overtaken by AI chip designer Cambricon Technologies on August 27. This indicates that while still a significant company, its market valuation was, at least temporarily, surpassed by an emerging tech firm.
- Sunac China
- Sunac China experienced a significant financial setback in the first half of the year, reporting a substantial net loss of 12.8 billion yuan. This information highlights a challenging period for the company.
- Anta
- Anta is a leading domestic sporting goods company in China. The company is performing well, demonstrating continued growth in sales within the sporting goods market. This suggests a strong position in its home market despite varying performances from international competitors like Adidas and Nike.
- Adidas
- The article mentions that Adidas's performance is diverging, even as sales of sporting goods continue to grow. This indicates that while the broader market for sporting goods is expanding, Adidas's specific financial results or market position are not uniformly positive, especially when compared to Nike and the domestic leader, Anta.
- Nike
- In the sporting goods market, Nike's performance differs from that of Anta, which is leading the domestic market, and also from Adidas. The article does not provide specific details on whether Nike's performance is positive or negative, only that it "diverges."
- Zhihu
- Zhihu experienced a continued decline in revenue during the second quarter. However, despite this decrease, the company managed to post a profit exceeding 90 million yuan. The article does not provide further details regarding the causes of the revenue decline or the sources of its profitability.
- 2025：
- Japan increases business visa requirements to curb 'shell company' stays.
- 2025：
- Sales of sporting goods continue to grow, with Anta leading the domestic market.
- As of 2025：
- China's first manufacturing plant for optical quantum computers has been established in Nanshan, Shenzhen.
- Approaching in 2025：
- End of U.S. de minimis tariff exemption, prompting 25 countries to suspend parcel shipments to the U.S.
- First half of 2025：
- Sunac China reported a net loss of 12.8 billion yuan.
- Second quarter of 2025：
- Meituan's net profit plunged 97% due to a price war in the food delivery sector, with a 12% increase in revenue year-over-year.
- Second quarter of 2025：
- Zhihu posted a profit of over 90 million yuan despite revenue decline.
- Week ending Aug. 23, 2025：
- U.S. initial jobless claims data to be released.
- Aug. 27, 2025：
- Shares of AI chip designer Cambricon Technologies surged, briefly overtaking Kweichow Moutai.
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