Dingdong (Cayman) Ltd. Sponsored ADR Class A (DDL.US) achieved overall profitability in 2024, with a full-year GMV of 25.56 billion yuan, a year-on-year growth of 16.3%.

On the evening of March 6, Dingdong (Cayman) Ltd. Sponsored ADR Class A (DDL.US) released its financial report for the fourth quarter of 2024 and annual performance data, with CKH HOLDINGS profitability still being a key keyword. The financial report shows that Dingdong (Cayman) Ltd. Sponsored ADR Class A achieved a GMV of 65.5 billion yuan in Q4, an increase of 18.4% year-on-year; revenue was 5.91 billion yuan, an increase of 18.3% year-on-year. Under the Non-GAAP standard, the profit for the quarter was 1.2 billion yuan, more than 6 times higher year-on-year; under the GAAP standard, a profit of 0.9 billion yuan was also achieved, with a profit margin of 1.6%. For the full year of 2024, Dingdong (Cayman) Ltd. Sponsored ADR Class A achieved a GMV of 255.6 billion yuan, an increase of 16.3% year-on-year; revenue reached 230.7 billion yuan, an increase of 15.5% year-on-year. Under the Non-GAAP standard, a profit of 4.2 billion yuan was achieved, more than 8 times higher year-on-year. It is worth noting that the company also achieved profitability for the full year under the GAAP standard for the first time. Maintaining double-digit growth, significant optimization effects on core operating indicators In the fourth quarter, Dingdong (Cayman) Ltd. Sponsored ADR Class A continued to show strong performance in several core operating data. In terms of penetration in existing regions, Dingdong (Cayman) Ltd. Sponsored ADR Class A continued to show strong growth momentum. In 2024, GMV in 22 cities covered by Dingdong (Cayman) Ltd. Sponsored ADR Class A achieved double-digit growth; in Q4, GMV in the Shanghai region increased by 16.8% year-on-year, while Jiangsu and Zhejiang both increased by over 20%. Additionally, Dingdong (Cayman) Ltd. Sponsored ADR Class A continued to expand its pre-warehouse layout in the Jiangsu, Zhejiang, and Shanghai regions, surpassing its target of opening 110 new pre-warehouses for the year by actually opening 130. Despite the opening of many new pre-warehouses, the daily average order volume per warehouse for the year was still close to 1,000 orders, an increase of 22.2% year-on-year. In terms of user retention, Dingdong (Cayman) Ltd. Sponsored ADR Class A demonstrated high retention and frequent repurchase characteristics. The average monthly number of ordering users in Q4 was around 7.74 million, an increase of 16.1% year-on-year, with the average monthly income per user increasing by 3.7% compared to the same period last year. In Q4, users ordered an average of 4.2 times per month, an increase of 3.0% year-on-year, with member orders averaging 7.0 times per month, an increase of 4.5%. Additionally, as the company continues to grow and enhance its algorithm and supply chain operations, Dingdong (Cayman) Ltd. Sponsored ADR Class A is also reducing costs while improving service efficiency. For example, in the fourth quarter, the average fulfillment time for instant orders was reduced by 2 minutes year-on-year, reaching 34 minutes, while the fulfillment cost rate was optimized by 1.8 percentage points year-on-year. Benefiting from the construction of intelligent forecasting and operational scheduling capabilities, the turnover efficiency and shortage balancing capability of goods are constantly being optimized. In 2024, the turnover days for short-term goods available on the platform in under 28 days averaged 2.3 days, with an efficiency increase of 6.4% year-on-year. The above data has brought about impressive performance for the company. Additionally, high-quality growth is also reflected in the cash flow statement, with operating cash net inflow reaching a historical high of 9.3 billion yuan in 2024; as of the end of Q4, the company held a balance of 4.45 billion yuan, including cash and cash equivalents, short-term restricted funds, and short-term investments. There is still ample room for growth, seizing new opportunities in structural retail transformation Building on a stable baseline, the growth opportunities for Dingdong (Cayman) Ltd. Sponsored ADR Class A in the future will come from continuous transformation of the supply chain in the retail industry undergoing structural changes, constantly creating differentiated products, and creating higher value for users. As a platform that early on proposed to create good products, Dingdong (Cayman) Ltd. Sponsored ADR Class A has now established an efficient product development process that differs from traditional methods, such as its own brand "Lianger Craftsman" under the guidance of Dingdong (Cayman) Ltd. Sponsored ADR Class A's proprietary supply chain. The brand has developed a seamless process of market demand exploration, research and development design, formula sampling, factory testing, and mass production for seemingly simple processed dumplings. This brand now has nearly full-chain, end-to-end product development capabilities and continuous iterative capabilities. In the past year, in addition to the brand's handmade old noodle series dumplings and Chai Pan dumplings, there have been niche spring vegetables, crab followers, domestic blueberry crisps, Dingdong (Cayman) Ltd. Sponsored ADR Class A custom-made Beibei pumpkin fresh milk, Black Diamond Family black pork, intangible heritage New Year goods, and more, all of which have not only become best sellers on the platform but also hot topics of discussion on social media. Earlier this year, Dingdong (Cayman) Ltd. Sponsored ADR Class A's founder and CEO, Liang Changlin, proposed internally that the company is entering the "4G" era, which stands for "good users, good products, good service, good mentality." SpecificallyIn the future, the company will create more value for users by matching and exploring their true needs; it will continue to develop good products with stable quality, and iterate based on user feedback; it will create differentiated products or structurally low-priced products, and further become a brand that is interesting, soulful, and with a clear value proposition, in order to attract and retain more valuable users.Liang Changlin also stated at the performance meeting: "In the future, we will continue to actively expand and develop a good product mindset, truly making good products that are both good and reasonably priced. Making good products and serving users well are our mission and original intention." The performance meeting also revealed the performance of Dingdong (Cayman) Ltd. Sponsored ADR Class A during the recent Spring Festival. From New Year's Eve to the sixth day of the first lunar month, the overall GMV increased by over 15% year-on-year, with several cities even exceeding 30%. It can be seen that driven by good products and good mindset, Dingdong (Cayman) Ltd. Sponsored ADR Class A still has strong growth momentum. In the current retail competition, Dingdong (Cayman) Ltd. Sponsored ADR Class A, with its efficient model and continuously improving product quality, has become a role that brings a strong sense of "companionship" to many consumers' lives. The company also stated that it will be more actively responding to the market and users' needs in the future, continuously enriching user experience with quality, unique, and story-filled products, constantly increasing the brand's share of mind in users' hearts, and ultimately forming stronger market competitiveness.