US delegation leader adopts Xi Jinping’s wealth redistribution theory

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Meituan Update

The head of Meituan has become the latest Chinese tech tycoon to reflect President Xi Jinping’s recent remarks on wealth redistribution, and has vowed to overhaul the company’s practices under increased supervision.

Wang Xing, the founder and CEO of the Beijing-based food delivery company, told investors on Monday that “common prosperity” is the “gene” of his company.Seat Used the same phrase In an influential speech earlier this month, China’s president warned that the world’s second-largest economy has excessively high incomes.

“We will continue to actively implement compliance requirements, improve internal control mechanisms for each business, conduct in-depth self-examination, and actively rectify problems to ensure full business compliance and avoid risks.” Wang said.

As the pace of large-scale crackdowns on China’s technology industry accelerates, Wang added that Beijing’s actions are both “warnings and incentives.”

“We believe that these regulatory changes are conducive to the sustainable development and orderly growth of the Internet platform economy,” he said, while also acknowledging that the practice of “fine-tuning” companies will have short-term effects.

After a period of turbulence, Meituan and its founder vowed to overhaul compliance. In May, he triggered a sharp drop in the company’s share price through a social media post that was widely interpreted as Secretly attacked Xi Jinping.

In April of this year, the company became the focus of China’s second antitrust investigation. Just a few weeks ago, Alibaba was fined a record US$2.8 billion for abusing its dominant market position. In its results submitted on Monday, Meituan stated that the investigation is ongoing and warned that it “may need to change its business practices” and may face “heavy” fines.

Also on Monday, Beijing’s State Administration for Market Regulation said it was investigating Meituan acquired Mobike in 2018, One of the largest shared bicycle companies in China.

Despite the regulatory turmoil, Meituan reported strong revenue in the second quarter, reaching 43.8 billion yuan (US$6.8 billion), an increase of 77% from the 24.7 billion yuan in the same period last year and exceeding analyst expectations.

Meituan, backed by Chinese technology giant Tencent, reported a net loss of 3.4 billion yuan, the third consecutive quarter of losses, and a profit of 2.2 billion yuan in the second quarter of 2020. It attributed the loss to its rapid expansion into new business.

Since reaching its peak in February, the company’s stock price has fallen by nearly half, but after the surge last year, the stock price is still twice what it was at the beginning of 2020.

Wang also joined Chinese billionaire’s click He has stepped up his charity efforts. After donating more than 2 billion U.S. dollars to his personal charity in June, he has donated millions of U.S. dollars to his former schools and universities in recent weeks.

The Beijing Supreme Court announced on Friday a “996” overtime policy, where employees work 6 days a week from 9 am to 9 pm, which further increases the pressure on China’s technology industry. Is illegal, And the country’s top Internet regulator issued a draft proposal outlining stricter regulation of technology companies’ algorithms.

Additional report by Sherry Fei Ju in Beijing

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