Latest news with #SongWang
Cision Canada
23-06-2025
- Business
- Cision Canada
viaim Scales Global Presence as RecDot Drives Momentum in Europe and Beyond
BEIJING, June 23, 2025 /CNW/ -- Intelligent workplace technology brand viaim today announced that its flagship AI-powered headset, RecDot, will officially launch in the European market in the second half of 2025. The move marks a major step forward in the company's globalization roadmap, reinforcing its commitment to enabling efficient, multilingual, and multi-timezone collaboration through localized innovation and robust data security. The European debut of RecDot follows viaim's successful North American entry, where the headset has gained traction among professionals in IT, manufacturing, and global trade. In preparation for the European rollout, RecDot will undergo key technical upgrades aligned with local regulatory requirements, including full GDPR compliance, expanded multilingual support, and tailored performance optimizations for European workplace environments. In June this year viam showcased its latest AI-powered innovations at VivaTech Paris, one of Europe's largest tech exhibitions. Attracting 180,000 visitors and 14,000 startups, the event marked a pivotal moment in the company's international expansion. During the event, viaim introduced its flagship AI headsets, viaim Pro 3 and viaim Air 2, designed to revolutionize workplace communication and efficiency. These products, equipped with advanced AI features like real-time translation in 32 languages and automated meeting summarization, received widespread attention from global professionals, further solidifying viaim's reputation on the international stage. "Globalization for us isn't just about access, it's about adapting meaningfully to how people work across cultures," said Shawn Ma, CEO of viaim. "In Europe, we're not only bringing RecDot as a tool, we're delivering a deeply localized experience that understands linguistic diversity, data expectations, and the rhythm of professional life." RecDot has been engineered for productivity on the move. With its FlashRecord feature, real-time transcription in 16 languages and real-time translation in 15 languages, and 48dB hybrid noise cancellation, the device is already a critical tool for mobile professionals. Under the hood, it boasts an 11mm dynamic driver, 19-hour battery life, and a design calibrated in partnership with the China Philharmonic Orchestra to bridge technological precision with emotional acoustic depth. "viaim's AI is designed not just to record, but to understand," added Dr. Song Wang, CTO of viaim. "We're building what we call 'digital colleagues.' These are systems that perceive, summarize, and assist seamlessly across borders and platforms." The European expansion is a strategic milestone for viaim, part of its longer-term vision to serve 10 million users worldwide with intelligent audio tools by 2030. The company currently ships to over 180 countries and regions, with over 700 million minutes logged across its suite of products. Usage data shows particularly strong adoption of RecDot's translation and FlashRecord features, underscoring global demand for AI-enhanced collaboration in real-world settings. viaim's differentiation lies in its vertical focus. While many audio and AI companies pursue broad functionality, viaim takes a "narrow but deep" approach, tailoring hardware and software to solve specific pain points like cross-border meetings, business travel, and multilingual project work. This focused strategy, combined with the company's proprietary AI framework "viaim Brain," supports advanced features like meeting summarization and action item planning with high contextual sensitivity. As the global workplace becomes more distributed and dynamic, viaim is positioning RecDot not just as a headset, but as a next-generation productivity companion. RecDot is designed to listen, translate, and assist wherever work happens. RecDot (US version) is already available on Amazon. Buy now at North America and Asia-Pacific, with users in over 180 countries and territories.
Yahoo
17-05-2025
- Business
- Yahoo
Q1 2025 Dingdong (Cayman) Ltd Earnings Call
Nicky Zheng; Director, Investor Relations; Dingdong (Cayman) Ltd Changlin Liang; Chief Executive Officer, Founder, Director; Dingdong (Cayman) Ltd Song Wang; Chief Financial Officer; Dingdong (Cayman) Ltd Thomas Chong; Analyst; Jefferies LLC Yang Bai; Analyst; China International Capital Corporation Limited Operator Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Dingdong Limited first quarter 2025 earnings conference call. (Operator Instructions) Please note that the event is being recorded. I will now turn the conference over to the first speaker today, Nicky Zheng, Director of Investor Relations. Please go ahead, sir. Nicky Zheng Thank you. Hello, everyone. Welcome to Dingdong's first quarter 2025 earnings call. With me today are Mr. Changlin Liang, our Founder and CEO; and Mr. Song Wang, our CFO. You can refer to our first quarter 2025 financial results on our website at You can also access a replay of this call on our IR website onece it becomes available a few hours after its conclusion. For today's call, management will go through their prepared remarks, which will be followed by a question-and-answer session. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call. As we will be making forward-looking statements, please note that all numbers stated in the following management's prepared remarks are in RMB terms. And we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filings with the SEC. I will now turn the call to our first speaker today, the founder and the CEO of Dingdong, Mr. Liang. Changlin Liang (spoken in foreign language) (interpreted) Hello, everyone. Thank you for joining the Dindong earnings call for Q1 2025. As of the first quarter of 2025, we have achieved non-GAAP profitability for 10 consecutive quarters and GAAP profitability for five quarters. Additionally, we've seen positive year on year revenue growth for five straight Quarters. This consistent growth in both scale and profitability has undoubtedly laid a strong foundation for our future development. In today's call, I'll outline our operating performance in Q1, offer a thorough analysis of our product status and discuss recent strategic insights. In the first quarter of 2025, Dingdong reported a GMV of RMB5.96 billion, a 7.9% increase compared to the previous year. Revenue for the same period reached RMB5.48 billion, a rise of 9.1% year on year. Non-GAAP net profits stood at RMB30 million with a non-GAAP net profit margin of 0.6%. GAAP net profit was RMB8 million with a GAAP net profit margin of 0.1%. Building on the profits from 2024, we successfully achieved both profitability and growth in scale in the first quarter. The first quarter of 2025 marked the commencement of Dingdong's implementation of the 4G strategy, which emphasizes good users, good products, good services and good mindshare. Significant adjustments have been made to the company's objectives, organizational structure, and evaluation methods. We continue to experience transitional challenges. Nevertheless, even amidst these difficulties, we have achieved year on year performance growth. The growth in performance was primarily fueled by higher user engagement in existing markets and our continued improvement in product development capabilities and optimization efforts. This quarter, the order volume rose by 12.1% year-on-year, with the average daily active user count surpassing 2 million, a 4.5% increase year on year. This reflects strong market demand, enhanced appeal of Dingdong's products and our upgraded product development capabilities. Regarding user conversion, the average daily transaction users exceeded 830,000, an 11.1% year-on-year increase relating to our effective strategies in user acquisition and traffic conversion. This conversion rate for ordering users improved by 2.4 percentage points year-on-year, thanks to the continued enhancement in product development, operational efficiency and base recommendations as well as the appeal of our offerings. This has created a more seamless transition from browsing to purchasing, user stickiness continue to increase with average monthly order frequency rising to 4.1 times, an increase of 2.4% year-on-year, driven by our superior shopping experience that includes both products and services which helps users cultivate a habit of frequent repurchases. The growth in these metrics marked a promising start of our 4G strategy, which emphasizes good users, good products, good services and good mind share. People often say that a good start is half the battle. We firmly believe that we are undertaking the difficult yet right course of action, which will undoubtedly activate a positive development flywheel and deliver better performance. Regionally, the Jiangsu, Zhejiang and Shanghai regions remain our primary growth drivers. In this quarter, Shanghai's GMV rose by 5% year-on-year. While Zhejiang and Jiangsu saw increases of 17.8% and 13.9%, respectively. All cities within these regions reported positive year-on-year growth, notable mentions include Guangzhou, Nantong and Jinhua, each passing 50% growth. Additionally, Huzhou and Foshan in the Guangzhou Shenzhen area experienced over 40% year-on-year growth. This year, we are further accelerating the deployment of our frontline fulfillment stations in Jiangsu, Zhejiang and Shanghai. By the end of Q1, we had established 14 new frontline stations. By strategically optimizing the layout and density of our frontline fulfillment network in key areas, we aim to create a more efficient fulfillment system and enhance our cost structure, thereby continually improving overall operational efficiency. In the last quarter of 2024, the entire company aligned around a shared understanding which is we work together to improve product quality and develop differentiated products. After determining the 4G strategy of good users, good products, good services and good mind share, we established performance goals and organizational structures that support these strategic objectives. As a result, in the first quarter, more and more differentiated and good products appeared on our app and gained user popularity, driven by methods such as restructuring the product business units, establishing an incentive scheme that rewards the development of differentiated and good products creating a product life cycle accountability system, having core executives to visit product sources and requiring product developers to respond to consumers' negative reviews personally. For instance, our meat products showcased the strength of self-operated meat factories, which drive our product innovation. After establishing the trusted daily fresh brand, we introduced the Hehuatian brand, emphasizing health and taste along with the black pig pork label, Black Diamond family. Furthermore, we began expanding our focus on the de-processing sector within the leisure goods segment, emphasizing health trends, selecting premium raw materials and crafting healthy, tasty, daily preparations and snacks. For example, our Hehuatian Australian Grain-Fed Wagyu Beef Crisp, recently won the Golden Carrot Award during our good product competition, thanks to its top-quality Australian wagyu beef and distinctive cheese flavor. Since its early March launch, it has rapidly gained popularity among consumers, achieving sales of around RMB3.4 million. Orders that include this item recorded an average order value of RMB139, outperforming the company average by nearly 100%, demonstrating how good products attract to good users. Our product development team prioritizes quality and meticulously examines every stage to ensure that each product needs Dingdong's high standards. Moreover, our product developers have won over users with their dedication and professionalism. For instance, users fondly refer to our product creators as [guava sister and sorryfish brother] on social media because they developed the acclaimed tree ripe rich cream guava and (inaudible) shepherd's purse, both of which won awards in our product competition. It is widely acknowledged that in the present consumer environment encounters substantial challenges. The instant retail sector has become markedly saturated with competitors, resulting in heightened competition. There's a common concern about maintaining profitability amid fierce rivalry and there are apprehensions regarding the sustainability of Dingdong as a viable entity it's competition. What advantages and opportunities do we possess. Firstly, we're fortunate that in previous rounds of competition, we do not simply follow trends, rather we stay true to the fundamental of business. Meticulously developing a comprehensive model, enhancing our supply chain and focusing on key regions. Throughout each stage of competition, we make consistent advancements, driving deeply into our strategies and ensuring adequate resources. Today, we not only possess a robust technological accumulation and a solid foundation within our supply chain, but also our cash reserves are healthy, enabling us to sustain profitability. All of these factors have established a strong foundation for us to keep succeeding in this new phase of competition. In conclusion, in the context of today's intense competition, we have identified the following core advantages, robust supply chain capabilities. The company was founded to provide consumers with healthy and high-quality food ingredients. From the inception of our operations, we recognize that our role could not be limited to merely serving as an intermediary or sales channel. Rather, we had to drill deeply into each aspect of the supply chain to enhance quality and improve efficiency. We engaged comprehensively in every stage of the process, including cultivating and producing food ingredient sourcing, logistics and warehousing, grading and packaging, food research and development, distribution, operations and delivery to consumers. We refer to the strategic approach as narrow and deep as narrow as an inch, yet as deep and a mile. Our operational product categories and revenue scale may not highlight a competitive advantage, but we have a substantial lead in enhancing and strengthening the supply chain. Importantly, throughout the transformation and upgrading of our supply chain, we have established a robust IT system that enables us to continuously optimize costs, enhance efficiency and replicate our supply chain capabilities across various regions and sectors. Recently, we have formed a strategic partnership with the DFI group based in Hong Kong. DFI is recognized leading global trading and retail company, while they have previously explored cooperation with numerous Chinese companies, they ultimately chose to partner with Dingdong. Their decision to -- the decision is driven by Dingdong's robust fresh grocery supply chain capabilities and advanced IT system capabilities. This in turn is a testament to our supply chain effectiveness. Due to our robust supply chain capabilities, we have evolved beyond a conventional retail company, thus positioning ourselves to withstand the intense competition within the instant retail market as time progresses. The advantages of our supply chain will become increasingly apparent, generating profit margins that substantially surpass those of instant retail enterprises. Distinct positioning. Our competitors are mostly positioned as online supermarkets, while Dingdong focuses on quality ingredients and products. They mostly follow a strategy that is wide as a mile yet as mile yet as shallow as an inch. In contrast with our approach of being narrow as an inch yet deep as a mile, competitors rely on price wars for our customer traffic, whereas we prioritize quality and service to attract users. Operational data shows that we outperformed competitors in key metrics of user trust and quality such as AOV, repurchase rate, gross profit margin and satisfaction. While some see as a basic retail service, we are a full chain fresh grocery supply chain company driven by digital technology. With a robust ecosystem as mentioned, we have established a strategic partnership with DFI in Hong Kong. Concurrently, in the international markets, we are fostering in-depth cooperation with HKTVmall in Hong Kong, FairPrice in Singapore and retail groups in Central Asia and the Middle East. On one hand, we provide advanced IT capabilities to these excellent retail partners to enhance their fresh grocery supply chain efficiencies. Simultaneously, we also introduced China's high-quality ingredients and culinary offers to overseas markets. In the domestic market, we have formed strategic partnerships with numerous agricultural and food research and development institutions in agricultural and food companies. We use our retail and supply chain capabilities to empower these organizations and foster collective growth. Internally, we have incubated [Gui] Food Group, a leader in China for the R&D and production of preprepared meals, meats, grains and soy products. [Gui's] products are distributed through various channels beyond Dingdong, showing consistent rapid revenue growth and profit margins, (inaudible) a world-renowned food seasoning company has traditionally sold its products to retailers. Now we are the sole provider of pre-prepared meals to (inaudible), facilitating broader overseas distribution of our products. This collaboration highlights our product capabilities and future development potential. Organizational ability and implementation. Since its inception, Dingdong has faced fierce competition from both start-ups and large companies. Eight years later, most rivals have vanished. While giants with similar businesses continue to incur losses. Dingdong not only survived, but also achieved profit for 10 consecutive quarters, demonstrating our competitiveness and vitality. It's been eight years since we started our business and the colleagues who join us on the journey are still actively working alongside us today. Over time, we face various challenges that have require us to make some strategic changes. As part of evolving our strategy, we have also restructured our organization to help our management team adapt quickly to the changing needs of the business. This year to strengthen our supply chain and create competitive advantages, we have introduced the 4G strategy focusing on good users, good products, good services and good mind share. This shift has led to a significant overhaul of our structure, where our core executives have taken on new roles in product development and improving our supply chain capabilities. Everyone on the team is focusing on the big picture, embracing the new responsibilities with enthusiasm. After five months of hard work, we've begun to see some great results Dingdong is rolling out more unique and high-quality products. Our users are happier than before. And our supply chain efficiency is steadily improving. As we continue moving forward, these benefits are becoming even more obvious. This really highlights our strong organization or ability to adapt and bounce back in the phase of adversity. It is Dingdong's distinct positioning and unique advantages, we're confident that we can remain competitive in various competitive landscape. Over time, our advantages will become increasingly evident, particularly as this strategic adjustment is progressively implemented, we anticipate a swift recovery from the short-term challenges induced by the transition, leading to a substantial enhancement in sales volume, increased innovation within our business practices and further optimization of our profit margins. Finally, I'll provide an update on the outlook for Q2 2025. We anticipate maintaining year-on-year growth in scale and achieving non-GAAP profitability for the second quarter of 2025. We're still in the transitional phase of transformation, but this period will pass quickly. By the end of the year, Dingdong's advantages will be distinctly evident. We expect significant growth in both performance scale and profit margin by then. This wraps up my speech. Thank you. Now I would like to invite our CFO, Wang Song to discuss the company's financial performance. Song Wang (spoken in foreign language) (interpreted) Thank you, Mr. Liang, and hello, everyone. Before I review our financial performance for the first quarter, please note that all of our figures are in RMB. In the first quarter of 2025, Dingdong reported a revenue of RMB5.48 billion, reflecting a 9.1% year-over-year increase and marking five consecutive quarters of positive growth. Non-GAAP net profit was RMB30 million and GAAP net profit was RMB8 million and operating net cash inflow reached RMB85 million. The company continued to demonstrate positive profitability alongside positive operating net cash inflow. By the end of Q1, after accounting for short-term loans, our actual funds amounted to RMB2.89 billion, indicating a continued net increase. This year, we're committed to executing our narrow yet deep value proposition, intensifying our efforts to satisfy consumers through quality products and services while establishing a unique path focused on quality, stability and consistent supply capabilities. Next, we'll analyze the first quarter's financial performance. Revenue reached RMB5.48 billion, a 9.1% year-on-year growth. GMV stood at RMB5.96 billion, a 7.9% increase from the previous year. While the average daily GMV rose by 9.1%, we leverage our products to attract more consumers and boost user engagement. The conversion rate of transacting users in Q1 reached a record high in recent years, averaging 64%, an increase of 4.8 percentage points year-on-year. The number of monthly transacting users rose by 10.3% year-on-year, and monthly transacting members grew by 12.6% year on year. Additionally, cities such as Wenzhou, Huzhou, Nantong and Jinhua demonstrated a strong growth momentum, achieving over 50% year-on-year growth. Furthermore, our B2B business has shown solid growth, boasting a revenue increase of 64.6% year-on-year and a rise in revenue share of 1.4 percentage points year on year. Gross profit margin was 29.9%, down 0.7 percentage points from last year. This decline in gross profit largely stems from our increased increasement investment in high-quality products. The introduction of more quality items and our commitment to removing less favorite products. Additionally, consumers benefited from our dedicated efforts in optimizing the supply chain. Moving forward, we'll persist in nurturing quality products focused on in-depth research with the craftsman dedication and strengthen our core competitive edge. Moreover, by utilizing our intelligent forecasting and operational scheduling capabilities, we aim to better meet user needs and improve the efficiency of our inventory turnover and defect management. The average turnover days improved to 11.7 days, a 2.8% increase in efficiency year-on-year, while the loss rate remains stable, the out-of-stock rate for leading products decreased by 1.8 percentage points compared to last year. The fulfilling cost rate rose to 22.9%, up 0.1 percentage points from the previous year. This increase primarily stems from the company's overseas investment, representing about 0.4% of revenue. Meanwhile, the domestic online fulfillment stations further enhance their efficiency with a 2.6% year-on-year rise in average yearly order volume per station for Q1. If we exclude the effect of newly added stations since 2024, the average daily order volume at established stations saw a year-on-year increase of 5.3%. During the Lunar New Year in 2025, we also provided users with our non-closing services leveraging algorithms and operational capabilities to deliver quality services. In Q1, the fulfillment time for ASAP orders was reduced by five minutes year-on-year, bringing it down to 34 minutes. The sales and marketing expense rate was 2%, a decrease of 0.2 percentage points year-on-year. Moving forward, we aim to boost our investment in customer mind share by utilizing high-quality products to drive traffic and improve delivery conversion efficiency. Management and R&D expenses represented 5.7% of revenue, a 0.2 percentage point decrease year-over-year, primarily due to economies of scale. We are committed to continuing our investment in food R&D, agricultural technology and data algorithms, which will enhance our product development and full chain digital capabilities, thereby boosting supply chain efficiency. Non-GAAP net profit margin was 0.6%, resulting in a net profit of RMB30 million. We also achieved a GAAP net profit margin of 0.1%. As of the end of Q1, our cash and cash equivalents along with our short-term restricted funds and investments totaled RMB4.29 billion. We remain focused on optimizing capital use and our financing structure. After accounting for short-term loans, our net balance of funds stands at RMB2.89 billion. This concludes my prepared remarks. Operator, we can now start the Q&A session. Operator (Operator Instructions) Thomas Chong, Jefferies. Thomas Chong Thanks, management, for taking my questions and congratulations on a solid set of result. In the speech, Mr. Liang emphasizing those 4G strategy multiple times, can you elaborate about the 4G strategy? What changes have been going made to execute the strategy. Over the long term, what advantages do the 4G strategy provides us? Thank you. Changlin Liang (spoken in foreign language) (interpreted) Thank you for your question. As you are aware, we delivered a strong performance in 2024. Nevertheless, our team remains cautious. At our strategic meeting at the end of 2024, we closely examine the consumer trends, competition and gain on unique strengths. We understand that to create genuine competitive barriers and secure long-term growth opportunities, we must differentiate our approach compared to our current competitors. Simultaneously, we need to maximize our supply chain advantages. Let's examine in the current competitive landscape. Retail customers typically want more, faster, better and cheaper, however, in today's market. Where our supply is ample, more no longer holds an advantage. An industry standard of 30-minute delivery has raised the competitive edge of speed. Many competitors are still fixating on cheaper. Dingdong takes a different approach. We don't excessively pursue cheaper anymore. Instead, we have introduced what we believe is a better strategy. This encompasses good users, good products, good services and good mind share, which we refer to internally as the 4G strategy. This strategy aligns with our original intention when we started the business. Right from the beginning, our goal has been to provide children with healthy and safe food. Although circumstances have changed over time. Our commitment to this principle remains steadfast. Furthermore, good quality is central to the food industry. The saying, you are what you eat underscores the importance of healthy eating for children growth, a balanced development for adults and overall health and longevity for the elderly. It can even be said that quality food is essential for a nation's strong development. However, you get what you pay for reminds us that an excessive focus on low prices can compromise product quality and hinder healthy industry growth. However, when we consider our strength, our deep engagement and long-term investment in the supply chain stand out. Only companies like ours with deep roots and dedication in this area can deliver on the promise of good quality. Achieving cheaper is straightforward. If you maintain low prices, you can draw in consumers and boost sales. However, striving for better is far more challenging. It involves doing 10,000 small things right and demands a systematic long-term approach. To facilitate this, we have repeatedly held internal brainstorming sessions to develop a unified understanding. We have adjusted our performance metrics. And for a period of time, we're focusing solely on the ratio of quality products and satisfied users, monitoring user repurchase rates and paying attention to negative reviews. Instead of GMV and profit margin metrics, we also reshape our fundamental challenges to internal structure. We dismantled the original product development center and integrated product development, product operation and quality control teams into independent business units, each led by a core executive. This setup empowers the product development team to abandon conventional thinking and focus on creating distinctive quality products. Additionally, this organizational adjustment fosters a genuine commitment across the company to fully understand and enhance products, leveraging the supply chain in product development and create unique quality offerings. Furthermore, this restructuring enables each functional department to effectively support quality products, continuously boost efficiency and create value throughout the power development process. Such a transition will entail a challenging period that compels us all to leave our comfort zones impacting our rapid scaling and profit margins in the near term. However, to truly succeed, we must embrace disruption and to survive through the tough times. Even though just five months have passed, we have noted an uptick in the proportion of quality products and increase in the number of good users, a rise in the user repurchase rate and more positive feedback on Dingdong app and social media. Unlike typical retail transformation that are often initiated externally our approach as an inside out transformation. While this method may not be widely noticed externally and results may take time, it promises ongoing fundamental improvements. Over time, substantial and transformative changes will occur, significantly enhancing our scale, optimizing profit margins, and fostering genuine core competitiveness that withstand competition. Thank you. Operator Yang Bai, CICC. Yang Bai Mr. Liang also talked about the internally incubated Gui Food Group in his speech, can you give an overview of the current business situation. Thank you. Changlin Liang (spoken in foreign language) (interpreted) Thank you for your question. Our CFO is better equipped to address this matter. Song Wang (spoken in foreign language) (interpreted) Thank you, Mr. Liang. I can introduce Gui through four key aspects, strategic positioning, scale growth, product development, and export progress. First, Gui is the strategic business unit that the company began to incubate in early 2020. Marking our transformation into a food supply chain company with a comprehensive industry layout, we achieved vertical integration of the supply chain through self-built factories encompassing a closed loop from product research and development, joint farming and planting of raw materials and ingredients, production and processing to terminal cells, thereby strengthening our control over product quality, cost and timeliness. Currently, we have three major business units, meat, pre-prepared meals, and grains and have built 12 self-operated factories spanning more than 54,000 square meters across six cities equipped with automated production lines that strictly control food safety while enhancing the flavor and quality of products. In the future, we plan to position Gui as a benchmark for Dingdong and even the industry, providing consumers with even more exceptional products. Second, over the past five years, Gui's production and processing capacity has grown rapidly, with an average annual growth rate of over 40%. In 2024, the GMV of Gui products on Dingdong was approximately RMB5 billion with a CAGR of nearly 200%, accounting for about 20% of sales on Dingdong. We officially began exporting in 2023. In just two years, export revenues in 2024 reached about RMB300 million, a year-on-year growth rate of about 150%. The revenue in Q1 of 2025 surpassed RMB100 million, a year-on-year growth rate of nearly 120%. We anticipate that export revenues this year will reach RMB600 million and expect that by 2027 exports will account for more than 50% of Gui's revenues. Third, we prioritize quality as our core value and meticulously refine our product development capabilities. Currently, we have established a product mix with distinctive features in meat, grains, and pre-prepared meals. We currently operate six meat factories with a diamond cutting -- with a daily cutting capacity of 500,000 boxes, making us the highest comprehensive production capacity in the country. As mentioned earlier, the products range from pork, beef, wagyu beef, wagyu mutton to various meat products. Among them, our Black Diamond Family brands focuses on high-end black pork. We have established a black pig farming base in partnership with (inaudible) engaging ourselves in source, selecting high quality varieties and employing coarse grains for 300 days low raising period. In 2024, the GMV of Black Diamond Family reached about RMB200 million with an annual growth rate of 30%. Meanwhile, the offline store of Black Diamond Family will also ramp up expansion. By 2025, we plan to increase the existing five black diamond family stores to between 15 and 20. We have three grain factories producing rice, flour and bean products. We have incubated brands such as [Liang Qingjianan] and [Yubozhi]. For instance, Liang Qingjianguan has introduced intangible cultural heritage craft and collaborated with five-star catering chefs, universities, and multinational companies, all while remaining the essence of traditional craftsmanship to make product innovation more dynamic. As a result, this label has skillfully created products that highlight regional trades, incorporate traditional craft, and promote children's health, among other features. Two of the factories have obtained an FSSC 22,000 certification and US FDA registration, which indicates that the production system has reached the highest level of international safety control and paves the way for entering the global high-end market. In 2024, the GMV of Liang Qingjianan was about RMB600 million with an annual growth rate of 22% and an average monthly repurchase rate of 40%. For pre-prepared meals, we currently operate three factories that cover categories such as meat products, aquatic products, and salads and fruit cuts. With the [Taichungqing] brand as our foundation, we develop healthy pre-prepared meals with regional flavors based on our insight into consumer trends and front-end market data, advanced production capability and technology, and over 3,000 flavored cults. Consumers greatly love many products such as boxing crayfish, which has had an annual sales exceeding RMB100 million for three consecutive years, and Taichungqing mouthwatering chicken with an annual sales surpassing RMB30 million. In 2024, the GMV of Taichungqing was approximately RMB1.1 billion with a year-on-year growth rate of 27% and an average monthly repurchase rate of 40%. Besides serving Dingdong, Gui's products are competitive directly in a broader market due to their high quality. Currently, our products are sold not only in domestic chain channels such as Lianhua Supermarkets, Jingdong 7Fresh and Huazhu Hotels, but also in the international market where we have distributed our products to over 30 countries and regions through partners like (inaudible) Hong Kong DFI and TNT Supermarkets from Canada. Furthermore, we are establishing in-depth cooperative relationships with HKTVmall in Hong Kong, FairPrice in Singapore, and Retail Groups in Central Asia and the Middle East. In the future, we will leverage our data production and R&D capabilities to develop products that cater to various channels. The evolution of Gui serves as a testament to Dingdong's full industry chain capabilities and the genuine potential of our narrow and deep strategy. It not only enhances Dingdong's product competitiveness, but also effectively establishes a robust, modern, and internationally oriented, rapidly developing, expanding, and high-quality food enterprise. Thank you. Operator As there are no further questions, I'd like to return the call to our management for closing remarks. Nicky Zheng Thank you again for joining our call today. If you have any further questions, please feel free to contact us or request through our website. We look forward to speaking with everyone in your next earnings call. Have a good day and have a good night. Operator The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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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