By Yifan Wang

Meituan posted a sharp jump in second-quarter revenue, driven by fast-expanding food-delivery services in China and income from new businesses.

The Chinese technology giant's revenue rose 77% from a year earlier to 43.76 billion yuan ($6.76 billion), as revenue from new initiatives, including groceries e-commerce and bike-sharing, more than doubled, Meituan said Monday. Revenue from the food-delivery segment, Meituan's main source of income, soared 59%.

Net loss for the quarter was CNY3.36 billion, compared with a profit during the same period last year. Gross profit, which doesn't account for selling and marketing expenses, rose 46% to CNY12.51 billion.

Both revenue and net loss figures beat analysts' estimates in a FactSet poll.

The second-quarter loss was widely expected by investors, as the company has embarked on a spending spree this year to build up new business lines, especially operations known as community-group buying, a rapidly growing form of e-commerce in China that allows consumers to team up to buy groceries at lower prices.

The net loss marked Meituan's third consecutive quarter in the red as it continued making aggressive investments, with the largest portion of capital going to expansion efforts for its community-group buying operations. The business has made up the bulk of Meituan's losses in recent quarters, but also drew in most of its new users this year.

While the hefty investment buoyed revenue growth, analysts have become increasingly concerned about Meituan's profitability outlook, especially amid the tightening and uncertain regulatory environment in China's internet industry.

Last month, Chinese authorities introduced tighter protection requirements for internet company workers, including Meituan's delivery riders.

Citi said in a recent report that it expects the new measures to push up Meituan's food-delivery expenses from the third quarter and keep the company loss-making through 2023. The investment bank had previously expected Meituan to be profitable in 2023.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

08-30-21 0524ET