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Associated Press
11-03-2025
- Business
- Associated Press
AsiaInfo Technologies announces 2024 Annual Results Achieves full year profit exceeding last year
Recommends a final dividend of HK$0.252 per share and a special dividend of HK$0.16 per share Results highlights: Ÿ Leverage on the mature cost control mechanism and the well-controlled cost, gross profit margin remained stable. Profit for the year was approximately RMB516 million, achieving a full-year profit better than last year. Profit margin increased by 1.3 percentage points to 7.8%, maintaining good and healthy profitability. Gross profit margin remained stable at 37.4%, reflecting the effectiveness of cost reduction, efficiency enhancement and cost control initiatives. Revenue amounted to approximately RMB6,646 million. Revenue from the Three New business1 amounted to approximately RMB2,599 million, accounting for approximately 39.1% of its total revenue and representing a year-on-year increase of 2.4 percentage points. Attached great importance to Shareholders' interests and returns, and has recommended a final dividend of HK$0.252 per share, representing a final dividend payout ratio of 40% of profit for the year. Including the special dividend of HK$0.16 per share declared, the total dividend for 2024 will be HK$0.412 per share. Future prospects: In 2025, the Company will adhere to the development strategy of seeking progress while maintaining stability, consolidating the foundation of the main business of telecommunications to ensure the stability of the business fundamentals. Building on the firm advancement of the Three New business and focusing on laying out the three major strategic growth points: AI large model delivery business, 5G private network and application, and digital intelligence operation, so as to promote the Company to achieve higher quality development. HONG KONG SAR - Media OutReach Newswire - 11 March 2025 - AsiaInfo Technologies Limited ('AsiaInfo Technologies' or the 'Company', which together with its subsidiaries, is referred to as the 'Group"; HKEX stock code: 01675), is pleased to announce its annual results for the year ended 31 December 2024. In 2024, the Company continued to advance its strategic transformation, strengthen its ability to empower industries and digital transformation through the combination of technological innovations such as artificial intelligence and big data, and promote its business deployment in various application areas. However, due to the impact of corporate customers, especially operator customers, who continued to significantly reduce costs due to their own growth pressure, the revenue amounted to approximately RMB6,646 million, representing a year-on-year decrease of 15.8%. Among them, the revenue from the Three New business amounted to approximately RMB2,599 million, decreasing by 10.3% year-on-year, which accounted for 39.1% of total revenue representing a year-on-year increase of 2.4 percentage points. To cope with the transformation of traditional businesses, the Company achieved remarkable cost control through various cost reductions and efficiency enhancement initiatives such as using AI tools to enhance delivery efficiency, strengthening centralised procurement and full coverage of one-stop official consumption platforms, etc., and the gross profit margin stood at 37.4%, remaining stable. Profit for the year was approximately RMB516 million, with the net profit margin increased to 7.8%, representing an increase of 1.3 percentage points as compared with last year, still maintaining a good profitability. The Board has attached great importance to Shareholders' interests and returns, and after giving due consideration to the Company's business development, profitability, and cash flow level, and has recommended a final dividend of HK$0.252 per share, representing a final dividend payout ratio of 40% of profit for the year. Including the special dividend of HK$0.16 per share declared, the total dividend for 2024 will be HK$0.412 per share. Digital Intelligence-driven Operation Business Stabilises and Rebounds In 2024, the Company continued to deepen its focus on telecommunications, automobile, consumer and finance industries, and cooperated closely with Volcano Engine as a core ISV, and built a lifecycle private domain operation platform based on enterprise WeChat to create an integrated online and offline operation system. In addition, through model innovation and the establishment of advantages in 'AI+Big Data', the Company has achieved significant growth in the automobile, consumer, finance and other industries. Digital intelligence-driven operation business revenue stabilised and rebounded in 2024, achieving a revenue of approximately RMB1,106 million, representing an increase of 0.4% year-on-year, accounting for 16.6% of total revenue, and revenue from results-based and commission-based charging models accounted for 25.4% of the revenue of the digital intelligence-driven operation business. The Company will accelerate the scale development of the results-based charging business model, and strive to become a leading enterprise in the results-based charging model industry. Vertical Industries Digital Business Prioritized Quality to Refocus on its Development Direction In 2024, the Company continued to be empowered by 5G, big data, AI and other innovative technologies, focusing on key industries such as energy, transportation, government affairs, etc., to create industrialised products and solutions, and to grasp opportunities for the upgrading of the vertical industries digitalisation and intelligent transformation. In the vertical industries market, the Company focuses on two major fields, the development of 5G private network and application, and large model application and delivery. By the end of 2024, the Company's 5G private network has cumulatively shipped 50 sets of core networks and more than 21,000 base stations. The Company will form differentiated competitive advantages by providing industry-specific 5G private network products and intelligent applications, striving to become a leading company in the field of 5G private networks and applications The business expansion in vertical industries involves large-scale customer orders, which means that revenue is significantly impacted by individual orders, leading to considerable volatility. The Company also paid more attention to the balance control of the pace of development and quality. Leveraging its mature order quality accessment procedure, the Company precisely identified and proactively gave up high-risk and large-scale government and enterprise orders exceeding RMB1 billion. Meanwhile, this segment of business experienced a revenue decline from RMB965 million to RMB676 million in 2024 due to the construction cycle and adjustments of the 5G private network for nuclear power, accounting for 10.2% of the Company' s total revenue. Large Model Delivery Business Gains Momentum AsiaInfo Technologies was the earliest to start and the fastest to implement the large model delivery business. It has established long-term cooperative relationships with leading domestic cloud computing and large model vendors, and has developed and accumulated a collection of delivery tools with core competitiveness in more than 200 projects. Additionally, it has a mature team and management experience that undergo extensive training in various delivery tasks each year, forming a special set of 'planning methodology + a set of tools + a professional team' for the large model delivery system of AsiaInfo. Through a highly customised large model business, the Company addressed the complex application scenarios of large model for the leading representational clients in business, defining the business implementation logic and standards, and building a formidable business stronghold against our rivals in terms of industry and technology. Long-tail customers ensured a continuous project revenue and profit sources by means of software subscription and standard product sales. Through strategic cooperation with leading cloud vendors and large model vendors such as Alibaba Cloud, Volcano Engine, Baidu AI Cloud, DeepSeek, etc., the Company has constructed an endto-end industry large model solution covering vertical fields such as government and enterprise, energy, finance and transportation. The Company will firmly implement the development strategy to become a leading enterprise of large model delivery and make positive contributions to the development of large model application by leveraging its own advantages of technology accumulation and close cooperative relationships with major foundational large model manufacturers. Decline in Traditional Business, Slight Decline in OSS Business Before the arrival of 6G, the overall investment in the telecommunications industry continued to be in a cyclical downturn. The Company's traditional BSS businesses faced the need for transformation and upgrading, to reduce costs and enhance efficiency to cope with the decline in traditional business revenue and to increase new revenue sources through technological innovation and customer expansion. In 2024, the revenue of BSS business amounted to approximately RMB3,948 million, representing a year-on-year decrease of 19.1%; while the revenue of OSS business was approximately RMB818 million, a slight year-on-year decrease of 1.8%. In terms of business development, the Company introduced innovative technologies such as 'AI+" and 'Large Model+" into traditional businesses to overcome challenges. In 2024, the Company made significant breakthroughs in the field of AI empowerment, with the total number of AI large model related projects exceeding 100, and business coverage continued to expand. In terms of customer development, the Company successfully acquired an important project of HKT (Hong Kong Telecom), and undertook the project, a Southeast Asia-based operator, further expanding the overseas market. The Company had successfully breaking through the OSS market of China Unicom to achieve breakthroughs in multiple provinces, and achieving breakthroughs in the OSS market of China Mobile in multiple provinces, which fully demonstrated the Company's competitive advantages in the field of OSS and its business expansion capabilities. Future Prospects Dr. TIAN Suning, Chairman and Executive Director of the Group, said, 'Looking ahead to 2025, the Company will adhere to the development strategy of seeking progress while maintaining stability, on the one hand, consolidating the foundation of the main business of telecommunications to ensure the stability of business fundamentals; on the other hand, building on the firm advancement of the Three New business and focusing on laying out the three major strategic growth points: the AI large model delivery business, 5G private network and application, and digital intelligence-driven operation, so as to promote the Company to achieve higher quality development.' In the field of traditional businesses, the Company will realise refined operations through optimising operation modes, innovative management modes and reducing headcounts to improve efficiency, significantly improve cost-effectiveness, and ensure traditional businesses profitability. Specifically, the Company will integrate AI and large model technology and comprehensively upgrade the intelligence level of business support systems, focusing on promoting customer joint innovation and R&D cooperation, centralising and intensifying the construction of support systems, the localised substitution of M domain, and market development of new customers, so as to effectively alleviate the downward pressure of BSS business; and focus on centralising and intensifying the operation of layout network, application of 'AI/large model/intelligent body+" technology, integration of resources in OSS market segments, and expansion of the network equipment business, and further expand our market share by continuously improving our technological capability and market penetration rate. In the AI large model delivery business, the Company will expand its strategic cooperation with Alibaba Cloud, Baidu AI Cloud, Volcano Engine and other leading basic large model vendors, through resource integration and complementary advantages, collaboratively develop the large model application market and be committed to the industry leading enterprises. The Company will focus on refining the large model delivery platform construction, optimising the chain of delivery tools, innovating the delivery methodology, continuing to consolidate the core competitive advantages in delivery scale, quality control and cost optimisation, etc., and building a differentiated competitiveness with a high technology threshold. In the field of 5G private network and application, the Company will further develop the integration of '5G+AI' technology, consolidate its leading position in nuclear power, new energy, mining and other advantageous industries, and continue to expand the market share of 5G private network solutions. At the same time, the Company will actively expand emerging application scenarios such as power network, petroleum and petrochemical, airport, port, etc., and provide customised 5G private network products and industry solutions that create a differentiated competitive advantage and strive to become a leading enterprise in the 5G private network field. The Company will build a complete 5G private network industry ecosystem through technological innovation and scenarios engagement to achieve continuous expansion of market coverage. In the field of digital intelligence-driven operation business, the Company will focus on key industries such as telecommunications, automobile, consumer, finance, etc., continue to strengthen data governance, model algorithms and scenario application capabilities, and develop the synergistic innovation with operators, Volcano Engine, Lingyang, Tencent, and other strategic partners in the field of AI and big data. The Company will fully leverage the technical advantages of 'AI+Big Data', accelerate the scale development of the results-based charging business model, and strive to become a leading enterprise in the results-based charging model industry.
Zawya
11-03-2025
- Business
- Zawya
AsiaInfo Technologies announces 2024 Annual Results Achieves full year profit exceeding last year
Results highlights: � Leverage on the mature cost control mechanism and the well-controlled cost, gross profit margin remained stable. Profit for the year was approximately RMB516 million, achieving a full-year profit better than last year. Profit margin increased by 1.3 percentage points to 7.8%, maintaining good and healthy profitability. Gross profit margin remained stable at 37.4%, reflecting the effectiveness of cost reduction, efficiency enhancement and cost control initiatives. Revenue amounted to approximately RMB6,646 million. Revenue from the Three New business1 amounted to approximately RMB2,599 million, accounting for approximately 39.1% of its total revenue and representing a year-on-year increase of 2.4 percentage points. Attached great importance to Shareholders' interests and returns, and has recommended a final dividend of HK$0.252 per share, representing a final dividend payout ratio of 40% of profit for the year. Including the special dividend of HK$0.16 per share declared, the total dividend for 2024 will be HK$0.412 per share. Future prospects: In 2025, the Company will adhere to the development strategy of seeking progress while maintaining stability, consolidating the foundation of the main business of telecommunications to ensure the stability of the business fundamentals. Building on the firm advancement of the Three New business and focusing on laying out the three major strategic growth points: AI large model delivery business, 5G private network and application, and digital intelligence operation, so as to promote the Company to achieve higher quality development. HONG KONG SAR - Media OutReach Newswire - 11 March 2025 - AsiaInfo Technologies Limited ("AsiaInfo Technologies" or the "Company", which together with its subsidiaries, is referred to as the "Group"; HKEX stock code: 01675), is pleased to announce its annual results for the year ended 31 December 2024. In 2024, the Company continued to advance its strategic transformation, strengthen its ability to empower industries and digital transformation through the combination of technological innovations such as artificial intelligence and big data, and promote its business deployment in various application areas. However, due to the impact of corporate customers, especially operator customers, who continued to significantly reduce costs due to their own growth pressure, the revenue amounted to approximately RMB6,646 million, representing a year-on-year decrease of 15.8%. Among them, the revenue from the Three New business amounted to approximately RMB2,599 million, decreasing by 10.3% year-on-year, which accounted for 39.1% of total revenue representing a year-on-year increase of 2.4 percentage points. To cope with the transformation of traditional businesses, the Company achieved remarkable cost control through various cost reductions and efficiency enhancement initiatives such as using AI tools to enhance delivery efficiency, strengthening centralised procurement and full coverage of one-stop official consumption platforms, etc., and the gross profit margin stood at 37.4%, remaining stable. Profit for the year was approximately RMB516 million, with the net profit margin increased to 7.8%, representing an increase of 1.3 percentage points as compared with last year, still maintaining a good profitability. The Board has attached great importance to Shareholders' interests and returns, and after giving due consideration to the Company's business development, profitability, and cash flow level, and has recommended a final dividend of HK$0.252 per share, representing a final dividend payout ratio of 40% of profit for the year. Including the special dividend of HK$0.16 per share declared, the total dividend for 2024 will be HK$0.412 per share. Digital Intelligence-driven Operation Business Stabilises and Rebounds In 2024, the Company continued to deepen its focus on telecommunications, automobile, consumer and finance industries, and cooperated closely with Volcano Engine as a core ISV, and built a lifecycle private domain operation platform based on enterprise WeChat to create an integrated online and offline operation system. In addition, through model innovation and the establishment of advantages in "AI+Big Data", the Company has achieved significant growth in the automobile, consumer, finance and other industries. Digital intelligence-driven operation business revenue stabilised and rebounded in 2024, achieving a revenue of approximately RMB1,106 million, representing an increase of 0.4% year-on-year, accounting for 16.6% of total revenue, and revenue from results-based and commission-based charging models accounted for 25.4% of the revenue of the digital intelligence-driven operation business. The Company will accelerate the scale development of the results-based charging business model, and strive to become a leading enterprise in the results-based charging model industry. Vertical Industries Digital Business Prioritized Quality to Refocus on its Development Direction In 2024, the Company continued to be empowered by 5G, big data, AI and other innovative technologies, focusing on key industries such as energy, transportation, government affairs, etc., to create industrialised products and solutions, and to grasp opportunities for the upgrading of the vertical industries digitalisation and intelligent transformation. In the vertical industries market, the Company focuses on two major fields, the development of 5G private network and application, and large model application and delivery. By the end of 2024, the Company's 5G private network has cumulatively shipped 50 sets of core networks and more than 21,000 base stations. The Company will form differentiated competitive advantages by providing industry-specific 5G private network products and intelligent applications, striving to become a leading company in the field of 5G private networks and applications The business expansion in vertical industries involves large-scale customer orders, which means that revenue is significantly impacted by individual orders, leading to considerable volatility. The Company also paid more attention to the balance control of the pace of development and quality. Leveraging its mature order quality accessment procedure, the Company precisely identified and proactively gave up high-risk and large-scale government and enterprise orders exceeding RMB1 billion. Meanwhile, this segment of business experienced a revenue decline from RMB965 million to RMB676 million in 2024 due to the construction cycle and adjustments of the 5G private network for nuclear power, accounting for 10.2% of the Company' s total revenue. Large Model Delivery Business Gains Momentum AsiaInfo Technologies was the earliest to start and the fastest to implement the large model delivery business. It has established long-term cooperative relationships with leading domestic cloud computing and large model vendors, and has developed and accumulated a collection of delivery tools with core competitiveness in more than 200 projects. Additionally, it has a mature team and management experience that undergo extensive training in various delivery tasks each year, forming a special set of "planning methodology + a set of tools + a professional team" for the large model delivery system of AsiaInfo. Through a highly customised large model business, the Company addressed the complex application scenarios of large model for the leading representational clients in business, defining the business implementation logic and standards, and building a formidable business stronghold against our rivals in terms of industry and technology. Long-tail customers ensured a continuous project revenue and profit sources by means of software subscription and standard product sales. Through strategic cooperation with leading cloud vendors and large model vendors such as Alibaba Cloud, Volcano Engine, Baidu AI Cloud, DeepSeek, etc., the Company has constructed an endto-end industry large model solution covering vertical fields such as government and enterprise, energy, finance and transportation. The Company will firmly implement the development strategy to become a leading enterprise of large model delivery and make positive contributions to the development of large model application by leveraging its own advantages of technology accumulation and close cooperative relationships with major foundational large model manufacturers. Decline in Traditional Business, Slight Decline in OSS Business Before the arrival of 6G, the overall investment in the telecommunications industry continued to be in a cyclical downturn. The Company's traditional BSS businesses faced the need for transformation and upgrading, to reduce costs and enhance efficiency to cope with the decline in traditional business revenue and to increase new revenue sources through technological innovation and customer expansion. In 2024, the revenue of BSS business amounted to approximately RMB3,948 million, representing a year-on-year decrease of 19.1%; while the revenue of OSS business was approximately RMB818 million, a slight year-on-year decrease of 1.8%. In terms of business development, the Company introduced innovative technologies such as "AI+" and "Large Model+" into traditional businesses to overcome challenges. In 2024, the Company made significant breakthroughs in the field of AI empowerment, with the total number of AI large model related projects exceeding 100, and business coverage continued to expand. In terms of customer development, the Company successfully acquired an important project of HKT (Hong Kong Telecom), and undertook the project, a Southeast Asia-based operator, further expanding the overseas market. The Company had successfully breaking through the OSS market of China Unicom to achieve breakthroughs in multiple provinces, and achieving breakthroughs in the OSS market of China Mobile in multiple provinces, which fully demonstrated the Company's competitive advantages in the field of OSS and its business expansion capabilities. Future Prospects Dr. TIAN Suning, Chairman and Executive Director of the Group, said, "Looking ahead to 2025, the Company will adhere to the development strategy of seeking progress while maintaining stability, on the one hand, consolidating the foundation of the main business of telecommunications to ensure the stability of business fundamentals; on the other hand, building on the firm advancement of the Three New business and focusing on laying out the three major strategic growth points: the AI large model delivery business, 5G private network and application, and digital intelligence-driven operation, so as to promote the Company to achieve higher quality development." In the field of traditional businesses, the Company will realise refined operations through optimising operation modes, innovative management modes and reducing headcounts to improve efficiency, significantly improve cost-effectiveness, and ensure traditional businesses profitability. Specifically, the Company will integrate AI and large model technology and comprehensively upgrade the intelligence level of business support systems, focusing on promoting customer joint innovation and R&D cooperation, centralising and intensifying the construction of support systems, the localised substitution of M domain, and market development of new customers, so as to effectively alleviate the downward pressure of BSS business; and focus on centralising and intensifying the operation of layout network, application of "AI/large model/intelligent body+" technology, integration of resources in OSS market segments, and expansion of the network equipment business, and further expand our market share by continuously improving our technological capability and market penetration rate. In the AI large model delivery business, the Company will expand its strategic cooperation with Alibaba Cloud, Baidu AI Cloud, Volcano Engine and other leading basic large model vendors, through resource integration and complementary advantages, collaboratively develop the large model application market and be committed to the industry leading enterprises. The Company will focus on refining the large model delivery platform construction, optimising the chain of delivery tools, innovating the delivery methodology, continuing to consolidate the core competitive advantages in delivery scale, quality control and cost optimisation, etc., and building a differentiated competitiveness with a high technology threshold. In the field of 5G private network and application, the Company will further develop the integration of "5G+AI" technology, consolidate its leading position in nuclear power, new energy, mining and other advantageous industries, and continue to expand the market share of 5G private network solutions. At the same time, the Company will actively expand emerging application scenarios such as power network, petroleum and petrochemical, airport, port, etc., and provide customised 5G private network products and industry solutions that create a differentiated competitive advantage and strive to become a leading enterprise in the 5G private network field. The Company will build a complete 5G private network industry ecosystem through technological innovation and scenarios engagement to achieve continuous expansion of market coverage. In the field of digital intelligence-driven operation business, the Company will focus on key industries such as telecommunications, automobile, consumer, finance, etc., continue to strengthen data governance, model algorithms and scenario application capabilities, and develop the synergistic innovation with operators, Volcano Engine, Lingyang, Tencent, and other strategic partners in the field of AI and big data. The Company will fully leverage the technical advantages of "AI+Big Data", accelerate the scale development of the results-based charging business model, and strive to become a leading enterprise in the results-based charging model industry. Hashtag: #AsiaInfoTechnologies The issuer is solely responsible for the content of this announcement. AsiaInfo Technologies
Yahoo
06-03-2025
- Business
- Yahoo
Dingdong (Cayman) Limited Announces Fourth Quarter 2024 Financial Results
SHANGHAI, March 6, 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 its unaudited financial results for the quarter ended December 31, 2024. Fourth Quarter 2024 Highlights: GMV for the fourth quarter of 2024 increased by 18.4% year over year to RMB6,546.6 million (US$896.9 million) from RMB5,530.3 million in the same quarter of 2023. It has increased on a year-over-year basis for four straight quarters. Non-GAAP net income for the fourth quarter of 2024 increased by 617.9% year over year to RMB116.7 million (US$16.0 million), the ninth consecutive quarter of non-GAAP profitability, compared with non-GAAP net income of RMB16.3 million in the same quarter of 2023. Net income for the fourth quarter of 2024 was RMB91.6 million (US$12.5 million), the fourth consecutive quarter of profitability, compared with a net loss of RMB4.4 million in the same quarter of 2023. Net cash provided by operating activities for the fourth quarter of 2024 was RMB190.9 million (US$26.2 million), the sixth consecutive quarter of net operating cash inflow. Mr. Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated, "As of the fourth quarter of 2024, we achieved non-GAAP profitability for the ninth consecutive quarter and GAAP profitability for the fourth consecutive quarter. Additionally, we have recorded positive year-over-year revenue growth for four straight quarters. The rapid performance growth is mainly fueled by the increasing user penetration rate, improved user conversion rates, higher user ARPU. We also accelerated the development of our forward warehouse network in Jiangsu, Zhejiang, and Shanghai regions. Over the past year, we have developed a variety of products, including our popular crabs and Dingdong's customized pumpkin raw milk. Looking ahead, we are committed to expanding our mission of creating high-quality products that are also reasonably priced. Better products, better service to the clients are our mission and original aspiration." Mr. Song Wang, Chief Financial Officer of Dingdong, stated, "In the fourth quarter of 2024, our revenue reached 5.91 billion RMB, an increase of 18.3% compared to the previous year. Meanwhile, GMV totaled 6.55 billion RMB, an 18.4% year-over-year rise. Non-GAAP net profit margin was 2%, resulting in a net profit of 116.7 million RMB. GAAP net profit margin was 1.6%, which amounted to a net profit of 91.6 million RMB. Additionally, the operating net cash inflow was 190.9 million RMB, resulting in positive net inflow for six consecutive quarters. Through high-quality growth and sustained profitability, Dingdong will continue to tackle challenging tasks with a pragmatic approach, aiming to satisfy consumers with excellent products and services while establishing our own differentiated path through stable quality and supply capabilities." Fourth Quarter 2024 Financial Results Total revenues were RMB5,905.0 million (US$809.0million) compared with total revenues of RMB4,993.5 million in the same quarter of 2023, increased by 18.3% year over year, primarily attributed to the increased numbers of transacting users, improved user conversion rates, higher user ARPU, increased frequency of monthly purchases and expanding our station network in Jiangsu, Zhejiang, and Shanghai this year. Product Revenues were RMB5,822.5 million (US$797.7 million) compared with product revenues of RMB4,922.4 million in the same quarter of 2023. Service Revenues were RMB82.5 million (US$11.3 million) compared with service revenues of RMB71.0 million in the same quarter of 2023, primarily driven by the increase of customers subscribing to Dingdong's membership program. Total operating costs and expenses were RMB5,848.0 million (US$801.2 million) compared with RMB5,029.8 million in the same quarter of 2023, with a detailed breakdown as below: Cost of goods sold was RMB4,120.8 million (US$564.5 million), an increase of 18.8% from RMB3,467.8 million in the same quarter of 2023. Cost of goods sold as a percentage of revenues increased slightly to 69.8% from 69.4% in the same quarter of 2023. Fulfillment expenses were RMB1,278.9 million (US$175.2 million), an increase of 9.1% from RMB1,171.7 million in the same quarter of 2023. Fulfillment expenses as a percentage of total revenues decreased to 21.7% from 23.5% in the same quarter of 2023. This was mainly due to the increased order volume boosted operational efficiency. In addition, we optimized the layout of the regional processing centers in the second half of 2023, which will continue to improve their operation efficiency this year. Sales and marketing expenses were RMB137.5 million (US$18.8 million), an increase of 30.8% from RMB105.2 million in the same quarter of 2023. Sales and marketing expenses as a percentage of total revenues increased to 2.3% from 2.1% in the same quarter of 2023, mainly due to the increased spending on sales and marketing activities and more sale and marketing staffs. General and administrative expenses were RMB109.2 million (US$15.0 million), an increase of 16.4% from RMB93.9 million in the same quarter of 2023, mainly due to the increase of professional service fees. Product development expenses were RMB201.6 million (US$27.6 million), a slightly increase of 5.4% from RMB191.2 million in the same quarter of 2023. While advocating for energy and resource saving, we will continue to invest in our product development capabilities, agricultural technology, data algorithms, and other technology infrastructure, to further enhance our competitiveness. Income from operations was RMB61.5 million (US$8.4 million), compared with operating loss of RMB21.9 million in the same quarter of 2023. Non-GAAP income from operations, which is a non-GAAP measure for income from operations that excludes share-based compensation expenses, was RMB86.6 million (US$11.9 million), compared with non-GAAP loss from operations of RMB1.2 million in the same quarter of 2023. Net income was RMB91.6 million (US$12.5 million), compared with net loss of RMB4.4 million in the same quarter of 2023. Net margin was 1.6% compared with negative 0.1% in the same quarter of 2023. Non-GAAP net income, which is a non-GAAP measure that excludes share-based compensation expenses, was RMB116.7 million (US$16.0 million), increased by 617.9% year over year, compared with non-GAAP net income of RMB16.3 million in the same quarter of 2023. In addition, non-GAAP net income margin, which is the Company's non-GAAP net income as a percentage of total revenues, was 2.0% compared with 0.3% in the same quarter of 2023. Basic and diluted net income per share was RMB0.27 (US$0.04) and RMB0.26 (US$0.04), respectively, compared with net loss per share of RMB0.02 and RMB0.02 in the same quarter of 2023. Non-GAAP net income per share, basic and diluted, was RMB0.35 (US$0.05) and RMB0.33 (US$0.05), respectively, compared with RMB0.04 and RMB0.04 in the same quarter of 2023. Cash and cash equivalents, restricted cash and short-term investments were RMB4,452.2 million (US$609.9 million) as of December 31, 2024, compared with RMB5,309.7 million as of December 31, 2023. We have been working diligently to optimize our capital usage and financing structure. The total balance of cash and cash equivalents, restricted cash and short-term investments deducting the balance of short-term borrowings, is RMB2.85 billion, a net increase for the sixth consecutive quarter. Guidance The Company is looking to sustain year-over-year growth in scale and achieve non-GAAP profits in the first quarter of 2025. Conference Call The Company's management 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 discuss the financial results. The presentation and question and answer session will be presented in both Mandarin and English. Listeners may access the call by dialing the following numbers: International:1-412-317-6061 United States Toll Free:1-888-317-6003 Mainland China Toll Free:4001-206115 Hong Kong Toll Free:800-963976 Conference ID:4474666 The replay will be accessible through March 13, 2025 by dialing the following numbers: International:1-412-317-0088 United States:1-877-344-7529 Access Code:7865911 A live and archived webcast of the conference call will also be available at the Company's investor relations website at About Dingdong (Cayman) Limited We are a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping. For more information, please visit: Use of Non-GAAP Financial Measures The Company uses non-GAAP measures, such as non-GAAP net income, non-GAAP net income margin, non-GAAP net income attributable to ordinary shareholders and non-GAAP net income per share, basic and diluted, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidated statements of operations and cash flows data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on the non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this announcement. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the fresh grocery ecommerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law. DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$) As of December 31, 2023 December 31, 2024 December 31, 2024 RMB RMB US$(Unaudited)ASSETS Current assets: Cash and cash equivalents 1,209,225 887,427 121,577Restricted cash 480 2,788 382Short-term investments 4,099,977 3,561,977 487,989Accounts receivable, net 107,879 125,896 17,248Inventories, net 471,872 553,601 75,843Advance to suppliers 73,732 62,730 8,594Prepayments and other current assets 187,486 170,753 23,393Total current assets 6,150,651 5,365,172 735,026 Non-current assets: Property and equipment, net 189,084 176,290 24,152Operating lease right-of-use assets 1,262,134 1,464,791 200,676Other non-current assets 96,687 111,395 15,260Total non-current assets 1,547,905 1,752,476 240,088 TOTAL ASSETS 7,698,556 7,117,648 975,114 LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITYCurrent liabilities: Accounts payable 1,422,183 1,660,472 227,484Customer advances and deferred revenue 240,280 279,276 38,261Accrued expenses and other current liabilities 656,408 767,082 105,090Salary and welfare payable 233,073 317,152 43,450Operating lease liabilities, current 653,529 640,245 87,713Short-term borrowings 3,300,214 1,606,253 220,056Total current liabilities 6,505,687 5,270,480 722,054 Non-current liabilities: Operating lease liabilities, non-current 568,039 780,036 106,864Other non-current liabilities 126,206 143,118 19,607Total non-current liabilities 694,245 923,154 126,471 TOTAL LIABILITIES 7,199,932 6,193,634 848,525 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands of RMB and US$) As of December 31, 2023 December 31, 2024 December 31, 2024 RMB RMB US$(Unaudited)LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY (CONTINUED)Mezzanine Equity: Redeemable noncontrolling interests 116,090 125,403 17,180 TOTAL MEZZANINE EQUITY 116,090 125,403 17,180 Shareholders' equity: Ordinary shares 4 4 1Additional paid-in capital 14,061,991 14,181,030 1,942,793Treasury stock (20,666) (51,176) (7,011)Accumulated deficit (13,679,964) (13,384,881) (1,833,721)Accumulated other comprehensive loss 21,169 53,634 7,347 TOTAL SHAREHOLDERS' EQUITY 382,534 798,611 109,409 TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY 7,698,556 7,117,648 975,114 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months ended December 31, 2023 2024 2024 RMB RMB US$ (Unaudited)Revenues: Product revenues 4,922,419 5,822,527 797,683Service revenues 71,035 82,495 11,302Total revenues 4,993,454 5,905,022 808,985Operating costs and expenses: Cost of goods sold (3,467,818) (4,120,793) (564,546)Fulfillment expenses (1,171,734) (1,278,904) (175,209)Sales and marketing expenses (105,168) (137,513) (18,839)Product development expenses (191,218) (201,632) (27,623)General and administrative expenses (93,850) (109,195) (14,961) Total operating costs and expenses (5,029,788) (5,848,037) (801,178)Other operating income, net 14,452 4,534 621(Loss) /income from operations (21,882) 61,519 8,428Interest income 42,292 37,879 5,189Interest expenses (21,241) (6,852) (939)Other (expenses)/income, net (724) 2,875 394 (Loss)/Income before income tax (1,555) 95,421 13,072Income tax expenses (2,833) (3,830) (524)Net (loss)/income (4,388) 91,591 12,548Accretion of redeemable noncontrolling interests (2,230) (2,409) (330)Net (loss) /income attributable to ordinary shareholders (6,618) 89,182 12,218 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED) (Amounts in thousands of RMB and US$, except for number of shares and per share data)For the three months ended December 31, 2023 2024 2024 RMB RMB US$ (Unaudited)Net (loss) /income per Class A and Class B ordinary share: Basic (0.02) 0.27 0.04Diluted (0.02) 0.26 0.04Shares used in net (loss) /income per Class A and Class B ordinary share computation: Basic 324,976,237 324,500,919 324,500,919Diluted 324,976,237 337,933,639 337,933,639Other comprehensive income, net of tax of nil: Foreign currency translation adjustments (26,288) 55,517 7,606Comprehensive (loss) /income (30,676) 147,108 20,154Accretion of redeemable noncontrolling interests (2,231) (2,409) (330)Comprehensive (loss) /income attributable to ordinary shareholders (32,907) 144,699 19,824 DINGDONG (CAYMAN) LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$) For the three months ended December 31, 2023 2024 2024 RMB RMB US$ (Unaudited) Net cash generated from operating activities 119,835 190,878 26,150 Net cash generated/(used in) investing activities 186,761 (158,850) (21,762) Net cash used in financing activities (393,781) (49,678) (6,806)Effect of exchange rate changes on cash and cash equivalents and restricted cash (818) 3,425 469Net decrease in cash and cash equivalents and restricted cash (88,003) (14,225) (1,949) Cash and cash equivalents and restricted cash at the beginning of the period 1,297,708 904,440 123,908Cash and cash equivalents and restricted cash at the end of the period 1,209,705 890,215 121,959 DINGDONG (CAYMAN) LIMITED UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of RMB and US$, except for number of shares and per share data) For the three months endedDecember 31, 2023 2024 2024 RMB RMB US$ (Unaudited)(Loss) /income from operations (21,882) 61,519 8,428Add: share-based compensation expenses (1) 20,639 25,073 3,434 Non-GAAP (loss)/income from operations (1,243) 86,592 11,862Operating margin (0.4 %) 1.1 % 1.1 %Add: share-based compensation expenses 0.4 % 0.4 % 0.4 %Non-GAAP operating margin 0.0 % 1.5 % 1.5 % Net (loss)/income (4,388) 91,591 12,548Add: share-based compensation expenses (1) 20,639 25,073 3,434 Non-GAAP net income 16,251 116,664 15,982Net (loss)/income margin (0.1 %) 1.6 % 1.6 %Add: share-based compensation expenses 0.4 % 0.4 % 0.4 %Non-GAAP net income margin 0.3 % 2.0 % 2.0 % Net (loss) /income attributable to ordinary shareholders (6,618) 89,182 12,218 Add: share-based compensation expenses (1) 20,639 25,073 3,434 Non-GAAP net income attributable to ordinary shareholders 14,021 114,255 15,652 Net (loss) /income per Class A and Class B ordinary share: Basic (0.02) 0.27 0.04Diluted (0.02) 0.26 0.04Add: share-based compensation expenses Basic 0.06 0.08 0.01Diluted 0.06 0.07 0.01Non-GAAP net income per Class A and Class B ordinary share:Basic 0.04 0.35 0.05Diluted 0.04 0.33 0.05(1) Share-based compensation expenses are recognized as follows: For the three months endedDecember 31, 20232024 2024 RMB RMB US$ (Unaudited)Fulfillment expenses 3,5514,148 568Sales and marketing expenses (341)1,520 208Product development expenses 12,36112,468 1,708General and administrative expenses 5,0686,937 950Total 20,63925,073 3,434 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