Meituan Claims to Turn Profitable by Year-End

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Meituan, the group buying service founded by Chinese Internet veteran Wang Xin claims to turn profitable by year-end, it also rebuffed a newly spread rumor ascribing it’s self-claimed RMB 380 million turnover in May to cheat.

A local report asserted that Meituan inflated a sales of RMB 100 million to 300 million by self-buying and then refunding items. Meituan disputed the saying, revealing that in last month it refunded customers RMB 19.41 million, representing 5% of total turnover.

Wang Huiwen, VP of Meituan said the rumor came from one of its competitors which is on the verge of draining money. He also disclosed that its gross profit now rebounded to 10% from last September’s 3.55% and orders coming through from mobile will account for 25% – 30% of total revenue by the end of this year.

Latest statistics from Tuan800 puts Meituan on the first spot of Chinese group buying service in April with a sales of over RMB 303.61 million, ahead of 55Tuan (2nd) and DianpingTuan (3rd place).