Financial Performance - The company reported revenues of RMB23,066.3 million (US$3,160.1 million) in 2024, representing a 15.5% increase compared to 2023 [58]. - The average order value slightly decreased from RMB72.1 in 2023 to RMB71.4 in 2024 [58]. - The company's GMV grew to RMB25,557.4 million (US$3,501.4 million) in 2024, after declining from RMB26,247.9 million in 2022 to RMB21,969.3 million in 2023 [59]. - The company achieved net income of RMB304.4 million (US$41.7 million) in 2024, following net losses of RMB806.9 million and RMB91.3 million in 2022 and 2023, respectively [59]. - Non-GAAP net profit was RMB422.9 million (US$57.9 million) in 2024, after recording non-GAAP net losses of RMB571.0 million in 2022 and a profit of RMB45.4 million in 2023 [59]. - The company has achieved non-GAAP profitability for nine consecutive quarters and GAAP profitability for four consecutive quarters [59]. - The company experienced fluctuations in total revenues, with a decrease from RMB24,221.2 million in 2022 to RMB19,971.2 million in 2023 [59]. Business Strategy and Operations - The strategic focus has shifted to "efficiency first, with due consideration of scale," contributing to improved profitability [59]. - The company intends to continue investing in product capabilities, technology innovation, and research and development to support sustainable growth [60]. - The company plans to continue diversifying its product and service offerings to add revenue sources in the future [63]. - The company has expanded its offerings to include prepared food and other products, which may involve risks related to user demand and profitability [76]. - The company shifted its strategic focus to "efficiency first" starting in Q3 2021, resulting in the closure of certain regional processing centers and fulfillment stations [78]. Regulatory and Compliance Risks - The company is subject to restrictions under PRC laws regarding the payment of dividends, which can only be paid out of retained earnings and are subject to statutory reserve fund appropriations [40]. - The company is subject to governmental supervision and regulation by various PRC authorities, which may affect its operations and growth [108]. - The company may be classified as a "PRC resident enterprise," subjecting it to a 25% enterprise income tax rate on global income, which could adversely affect financial results [163]. - The PRC government has enacted new regulations that may impose additional obligations on internet companies, potentially increasing compliance costs [156]. - The evolving regulatory environment may lead to new laws that could materially impact the company's ability to conduct business or offer securities in the future [159]. Market and Competitive Environment - The company faces intense competition in the fresh grocery e-commerce industry in mainland China, which may impact market share and pricing power [61]. - The company faces risks related to competition, user needs, and regulatory changes that could impact future growth and profitability [55]. - The enactment of the Anti-Monopoly Guide may significantly change the competitive landscape of the e-commerce industry, potentially impacting business operations [129]. Supply Chain and Inventory Management - As of 2024, the company had approximately 1,600 suppliers, and maintaining strong relationships with them is critical for procuring products at favorable prices [68]. - The accounts payable turnover days decreased from 43.0 days in 2022 to 34.9 days in 2024, indicating improved payment efficiency [70]. - Inventory decreased by 22.0% from RMB604.9 million as of December 31, 2022, to RMB471.9 million as of December 31, 2023, and increased by 17.3% to RMB553.6 million (US$75.8 million) as of December 31, 2024 [83]. - The company plans to expand its product offerings, which will increase the complexity of inventory management and pressure on the warehousing system [84]. Financial Management and Capital Structure - The company has not declared or paid any dividends on its ordinary shares since inception and does not plan to do so in the foreseeable future, intending to retain available funds for business operations and expansion [41]. - The company relies on dividends and distributions from PRC subsidiaries for cash and financing needs, and any limitations on these payments could materially impact its financial condition [183]. - Under PRC laws, wholly foreign-owned enterprises can only pay dividends from accumulated after-tax profits, and must set aside at least 10% of these profits for statutory reserve funds until it reaches 50% of registered capital [184]. Legal and Geopolitical Risks - The legal system in mainland China presents uncertainties that could adversely affect the company's business operations and financial condition [154]. - Current international trade tensions, particularly between the United States and China, may adversely impact the company's business and financial condition [137]. - The ongoing geopolitical tensions may increase market volatility and uncertainty, impacting the company's operations and financial condition [146]. Shareholder Rights and Corporate Governance - The dual-class voting structure may limit the ability of Class A shareholders to influence corporate matters and could discourage change of control transactions [204]. - The company’s memorandum and articles of association contain anti-takeover provisions that could adversely affect shareholder rights [210]. - Shareholders have no general rights under Cayman Islands law to inspect corporate records or obtain copies of the register of members [221].

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K UNITED STATES Exhibit No. Description Exhibit 99.1 Dingdong (Cayman) Limited Announces Fourth Quarter 2024 Financial Results SIGNATURE REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of March 2025 Commission File Number: 001-40533 Dingdong (Cayman) Limited Building T4, Zhangjiang Science Gate, Lane 188 Yuren Road Shanghai, 200120 People's Republic of China (Address of ...

Dingdong (Cayman) Limited (DDL) Q4 2024 Earnings Call March 06, 2025 03:06 PM ET Company Participants Nicky Zheng - Directions-Investor Relations Operator Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to the Ding Dong Limited Fourth Quarter twenty twenty four Earnings Conference Call. At this time, all participants are in a listen only mode. Please note that this event is being recorded. I will now turn the conference over to the first speaker today, Mingqi Zheng ...

Group 1 - Dingdong (Cayman) Limited reported its Q4 numbers positively received by the investing community [1] - The company is expected to discuss its outlook for 2025 [1] Group 2 - The article emphasizes a long-term investment strategy, focusing on a mix of growth, value, and dividend-paying stocks [1]

Core Insights - Dingdong (Cayman) Limited achieved non-GAAP profitability for the ninth consecutive quarter and GAAP profitability for the fourth consecutive quarter, indicating strong financial performance and growth momentum [3][4][10] - The company reported a revenue of RMB 5.91 billion (approximately US$ 809 million) for Q4 2024, representing an 18.3% year-over-year increase, driven by higher user penetration, improved conversion rates, and increased average revenue per user (ARPU) [3][4][5] - Dingdong's gross merchandise volume (GMV) reached RMB 6.55 billion (approximately US$ 897 million), marking an 18.4% year-over-year rise, reflecting consistent growth over four consecutive quarters [5][6] Financial Performance - Total revenues for Q4 2024 were RMB 5,905.0 million (US$ 809.0 million), up from RMB 4,993.5 million in Q4 2023, an increase of 18.3% year-over-year [4][5] - Non-GAAP net income surged by 617.9% year-over-year to RMB 116.7 million (US$ 16.0 million), compared to RMB 16.3 million in the same quarter of 2023 [10][32] - GAAP net income for Q4 2024 was RMB 91.6 million (US$ 12.5 million), a significant turnaround from a net loss of RMB 4.4 million in Q4 2023 [9][10] Cost Structure - Total operating costs and expenses for Q4 2024 were RMB 5,848.0 million (US$ 801.2 million), compared to RMB 5,029.8 million in the same quarter of 2023 [5][28] - Cost of goods sold increased by 18.8% year-over-year to RMB 4,120.8 million (US$ 564.5 million), with the cost of goods sold as a percentage of revenues slightly increasing to 69.8% from 69.4% [6][28] - Fulfillment expenses rose by 9.1% year-over-year to RMB 1,278.9 million (US$ 175.2 million), but as a percentage of total revenues, it decreased to 21.7% from 23.5% in the same quarter of 2023 [6][7] Cash Flow and Liquidity - Operating net cash inflow for Q4 2024 was RMB 190.9 million (US$ 26.2 million), marking the sixth consecutive quarter of positive net inflow [5][12] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 4,452.2 million (US$ 609.9 million) as of December 31, 2024, down from RMB 5,309.7 million a year earlier [12][24] Future Outlook - The company aims to sustain year-over-year growth in scale and achieve non-GAAP profits in Q1 2025, indicating a positive outlook for continued financial performance [13]

SHANGHAI, March 3, 2025 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading fresh grocery e-commerce company in China, with advanced supply chain capabilities, today announced that it will report its unaudited financial results for the fourth quarter ended December 31, 2024, before U.S. markets open on March 6, 2025. The Company will hold an earnings conference call at 7:00 A.M. Eastern Time on Thursday, March 6, 2025 (8:00 P.M. Beijing Time on the same day) to dis ...

Core Viewpoint - Dingdong (Cayman) Limited (NYSE: DDL) has received an upgrade in stock rating from Hold to Buy due to its third quarter net income exceeding expectations and strong growth anticipated for Q4 2024 and FY 2024 [1] Group 1: Company Performance - Dingdong's third quarter net income surpassed market expectations, indicating robust financial performance [1] - The company is projecting strong growth for the fourth quarter of 2024 and the full fiscal year 2024, suggesting positive future outlook [1] Group 2: Investment Strategy - The research service Asia Value & Moat Stocks focuses on identifying Asia-listed stocks with significant discrepancies between market price and intrinsic value, particularly in the Hong Kong market [1] - The investment strategy emphasizes deep value balance sheet bargains and wide moat stocks, targeting undervalued assets and high-quality businesses [1]

Investment Rating - The report assigns a "Buy" rating to Dingdong (Cayman) Limited (DDL N) [4] Core Views - Dingdong's Q3 2024 performance met expectations with accelerated growth in GMV and revenue driven by strong seasonal demand [2] - The company demonstrates strong scale effects in the fresh food category [2] - Regional expansion is progressing smoothly with accelerated growth in orders and average order value [5] - Scale effects are driving continuous quarter-over-quarter improvement in profit margins [5] - The company has achieved regional profitability in its fresh food category with strong category scale effects [5] Financial Performance - Q3 2024 revenue reached RMB 6 538 billion +27 21% YoY [5] - Adjusted net profit attributable to parent company was RMB 164 million compared to RMB 13 32 million in Q3 2023 [5] - Q3 2024 GMV reached RMB 7 267 billion +28 27% YoY [5] - Fulfillment expense ratio reached a historical low of 21 38% [5] - Profit margin stood at 2 47% indicating successful operations in Shanghai and regional expansion in Jiangsu-Zhejiang [5] Growth Drivers - Accelerated warehouse openings with 80 new warehouses in Q3 2024 completing the annual target [5] - Full-year 2024 warehouse opening target is 110 [5] - Profit improvement mainly from supply chain scale effects and increased order density [5] - The company expects GMV growth to maintain 17-18% for the full year with adjusted net profit margin of 1 7-1 8% [5] Industry Landscape - Recent changes in the industry include increased investment by JD com in front warehouses and Hema's restart of front warehouses [5] - Xiaoxiang Supermarket is advancing rapidly in North and South China with relatively steady expansion in East China [5] - The report suggests that these competitors have different models and regional focuses with no aggressive price wars expected in the short term [5] Historical Financials - 2024E revenue is projected at RMB 22 979 52 million +15 06% YoY [6] - 2024E gross profit is projected at RMB 6 893 86 million [6] - 2024E adjusted net profit attributable to parent company is projected at RMB 409 60 million with a margin of 1 78% [6]

Investment Rating - The report recommends to pay attention to Dingdong Maicai, indicating a positive outlook on the company's performance and growth potential [3]. Core Insights - Dingdong Maicai's Q3 2024 revenue reached 6.54 billion yuan, exceeding Bloomberg consensus by 0.4%. The adjusted gross profit was 1.95 billion yuan, with a gross margin of 29.8%. The adjusted net profit was 160 million yuan, surpassing expectations by 5.6% [1]. - The company's GMV (Gross Merchandise Volume) reached a record high of 7.27 billion yuan in Q3 2024, representing a year-on-year growth of 28.3% [1]. - The company has achieved Non-GAAP profitability for eight consecutive quarters and GAAP profitability for three consecutive quarters [1]. Summary by Sections Financial Performance - Q3 2024 revenue: 6.54 billion yuan, product revenue: 6.46 billion yuan, service revenue: 79.8 million yuan [1]. - Adjusted gross profit: 1.95 billion yuan, gross margin: 29.8% [1]. - Adjusted net profit: 160 million yuan, exceeding expectations by 5.6% [1]. - GMV in Q3 2024: 7.27 billion yuan, up 28.3% year-on-year [1]. User Growth and Engagement - Monthly Active Users (MTU) reached 8.22 million, a year-on-year increase of 24.5% [1]. - Monthly member ARPU (Average Revenue Per User) was 540 yuan, up 8.8% [1]. - Average monthly orders per member: 7.6, a year-on-year increase of 9.8% [1]. Operational Improvements - Opened 80 new fulfillment stations this year, increasing daily order volume [2]. - Expanded product offerings, including coffee, fruits, dairy, and snacks, leading to increased daily transaction volume [2]. - Enhanced end-to-end efficiency, reducing stockouts and improving delivery speed [2]. Cost Management and Profitability - Q3 2024 fulfillment costs: 1.4 billion yuan, fulfillment cost rate decreased by 1.8 percentage points to 21.4% [3]. - Sales expenses: 140 million yuan, sales expense rate increased by 0.2 percentage points to 2.2% [3]. - Management expenses: 100 million yuan, management expense rate decreased by 0.2 percentage points to 1.6% [3]. - R&D expenses: 200 million yuan, R&D expense rate decreased by 0.8 percentage points to 3.1% [3]. Future Guidance - The company raised its net profit and scale expectations, anticipating significant year-on-year growth in Q4 2024 and for the full year [3]. - Projected revenues for 2024 and 2025 are 23.3 billion yuan and 27.2 billion yuan, respectively, with adjusted net profits of 360 million yuan and 510 million yuan [3].

Financial Performance - GMV for Q3 2024 increased by 28.3% year over year to RMB7,267.0 million (US$1,035.5 million), marking a new quarterly high[4] - Non-GAAP net income for Q3 2024 surged by 942.0% year over year to RMB161.6 million (US$23.0 million), the eighth consecutive quarter of non-GAAP profitability[4] - Net income for Q3 2024 rose by 6,240.6% year over year to RMB133.4 million (US$19.0 million), achieving record highs for both non-GAAP and GAAP net income[4] - Revenue for Q3 2024 was RMB6,538.2 million (US$931.7 million), a 27.2% increase from RMB5,139.7 million in Q3 2023, driven by more transacting users and increased purchase frequency[6] - Total revenues for the third quarter of 2024 reached RMB 6,538,235, representing a 27.3% increase from RMB 5,139,681 in the same period of 2023[33] - Product revenues increased to RMB 6,458,447, up 27.1% from RMB 5,082,513 year-over-year[33] - Net income for the third quarter of 2024 was RMB 133,406, compared to a net income of RMB 2,104 in the same quarter of 2023, indicating significant growth[34] - The company reported a basic and diluted net income per share of RMB 0.40 for the third quarter of 2024, compared to RMB 0.00 in the same period of 2023[34] - The net income for the three months ended September 30, 2024, was RMB 133,406,000, compared to RMB 2,104,000 in 2023, showcasing substantial growth[36] Cash Flow and Liquidity - Operating net cash inflow for Q3 2024 reached RMB400 million (US$56.7 million), marking the fifth consecutive quarter of net cash inflow from operating activities[5] - Cash and cash equivalents as of September 30, 2024, were RMB4,296.9 million (US$612.3 million), a net increase for the fifth consecutive quarter[17] - The company generated net cash from operating activities of RMB 397,639 in the third quarter of 2024, compared to RMB 130,111 in the same quarter of 2023[35] - The company experienced a net cash decrease of RMB 157,225 in the third quarter of 2024, compared to a net cash decrease of RMB 232,472 in the same quarter of 2023[35] Cost Management and Efficiency - Total operating costs for Q3 2024 were RMB6,438.5 million (US$917.5 million), with cost of goods sold at RMB4,591.4 million (US$654.3 million), reflecting a 28.3% increase year over year[8] - Fulfillment expenses as a percentage of total revenues decreased to 21.4% from 23.2% in the same quarter of 2023, indicating improved operational efficiency[9] - Fulfillment expenses decreased from RMB 5,335,000 in 2023 to RMB 4,707,000 in 2024, reflecting improved cost management[38] - Sales and marketing expenses increased from RMB 332,000 in 2023 to RMB 1,057,000 in 2024, indicating a strategic investment in growth[38] - Product development expenses rose significantly from RMB 6,881,000 in 2023 to RMB 13,288,000 in 2024, highlighting the company's focus on innovation[38] - General and administrative expenses increased from RMB 858,000 in 2023 to RMB 9,158,000 in 2024, which may reflect expansion efforts[38] Future Outlook - The company anticipates significant year-over-year growth for Q4 2024 and the full year, raising its expectations for both net profit and scale[18] - Non-GAAP net profit margin for Q3 2024 was 2.4%, an increase of 2.1 percentage points from the same period last year[15] - The operating margin improved from (0.2%) in 2023 to 1.6% in 2024, indicating a positive trend in operational efficiency[36] - Non-GAAP net income attributable to ordinary shareholders reached RMB 159,253,000 in 2024, up from RMB 13,323,000 in 2023[36] - The company achieved a non-GAAP net income margin of 2.5% for the three months ended September 30, 2024, compared to 0.3% in the previous year[36] - Basic and diluted non-GAAP net income per Class A and Class B ordinary share was RMB 0.49 for the three months ended September 30, 2024, compared to RMB 0.04 in 2023[36] Balance Sheet Highlights - Total assets as of September 30, 2024, amounted to RMB 7,698,556, an increase from RMB 6,873,186 as of December 31, 2023[32] - Total current liabilities increased to RMB 6,505,687 from RMB 5,284,475, reflecting a rise in operational obligations[31] - Total shareholders' equity increased to RMB 628,293 as of September 30, 2024, from RMB 382,534 at the end of 2023[32]