Turnover and Gross Margin: The Dual Core of Enterprise Development

• Today's morning meeting focused on the topic of "which is more important for an enterprise, turnover or gross margin". The core conclusion is that the two are complementary and indispensable, and Meituan's business case is the most vivid evidence. Turnover is the "scale cornerstone" of an enterprise, representing market share and business coverage, and is the foundation for an enterprise's survival; gross margin is the "profit core" of an enterprise, reflecting cost control and core competitiveness, and determining the sustainable development capacity of the enterprise.

• Taking Meituan as an example, its turnover continued to grow in 2025, but it fell into losses due to declining gross margin and high costs, which confirms the hidden danger of "valuing scale over profit"; previously, it achieved profits relying on core businesses with a stable gross margin, showing the key support of gross margin for enterprises. This shows that high turnover without the support of high gross margin is only "empty appearance"; high gross margin divorced from turnover is also difficult to form a sustainable profit scale.

• For enterprises, the key is to balance the two reasonably: not only expand turnover and market influence by expanding business, but also stabilize gross margin by optimizing costs and enhancing core competitiveness. Only when the two work together can enterprises achieve long-term and healthy development.