Meituan: $66 Million in Sales in June, Profitable by Year’s End

Many people are massively skeptical of Chinese group buy sites – both the sustainability of the industry as a whole, and the veracity of the claims made by individual daily deals companies. To allay those fears, the market leader Meituan is making available available monthly sales stats, despite it being a private company that doesn’t need to make these public. The latest figures for the month of June reveal an ascendent 422 million RMB ($66.39 million) in sales, up from 360 million RMB (US$56.54) in orders in May.

In addition to all that, Meituan’s VP, Wang Huiwen, has said that the site expects to become profitable by the end of the year. That’s quite a claim in such a fragmented market where gross profit margins are so low. Meituan’s margins are, the company claims, between 8 and 10 percent.

Here are Meituan’s monthly (unaudited) sales figures for the whole of this year so far:

[Source: Techweb – article in Chinese]