Meituan is scheduled to report results for the second quarter on Friday. Here's what you need to know:

NET PROFIT FORECAST: The Chinese food-delivery company is expected to report net loss of 1.43 billion yuan, equivalent to $212.71 million, according to the consensus estimate of 9 analysts compiled by FactSet. That would compare to a 365.3 million yuan net profit reported in the year-earlier period.

REVENUE FORECAST: Revenue is expected at 101.56 billion yuan, up from 91.84 billion yuan a year ago.

Its Hong Kong-listed shares were 17% lower in the three months ended June, but has since rose 13% since the end of June.

WHAT TO WATCH:

--FOOD DELIVERY: Meituan's food delivery segment's unit economics likely turned profitable in 2Q on a reduction in its segment subsidies, said analysts at China Galaxy International. The Chinese food delivery platform's leading sector position appears to be underpinned by its high-quality user base and higher average order value, they say. They project Meituan's core local commerce segment revenue to grow 4% in 2Q. Meituan is meanwhile likely to face easing competition in its in-store business, as rival Douyin shifts its focus to profitability, they add.

--EARNINGS: DBS raised its 2026 and 2027 earnings forecasts for Meituan by 4% and 6%, respectively, thanks to the improvement in food delivery business. They analysts added that the company stands to gain from improved margins, as key competitors reduce subsidies and redirect resources away from food delivery.