Last week, the food delivery giant released its Q4 earnings results, which came in strong—thanks largely to wider profits in its core food delivery segment. For the first time, the company had managed to turn both its operating profit and operating cash flow positive.

Meituan’s strong profits were largely driven by commission revenue from services including food delivery and travel booking platforms. However, this could mean trouble for Meituan as the revenues from these segments are and will continue to be under pressure for the rest of the year from the aftershocks of the virus outbreak.

The coronavirus outbreak hit China’s food delivery, tourism, and dining industry hard. Despite a strong 2019 performance and an upswing in delivery demand during the lockdown, Meituan has warned of the adverse impacts that may last throughout 2020.

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Nicole Jao

Nicole Jao is a reporter based in Beijing. She’s passionate about emerging trends, news, and stories of human interest within the world of technology. Connect with her on Twitter or via email: nicole.jao.iting@gmail.com.

Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.