2024-12-23 04:33:12
Author: Dingdong (Cayman) Limited / 2023-07-24 00:37 / Source: Dingdong (Cayman) Limited

Dingdong (Cayman) Limited Announces Second Quarter 2022 Financial Results

SHANGHAI,Aug. 11,2022 -- 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 June30,2022.

Second Quarter 2022 Highlights:

GMV for the second quarter of 2022 increased by 32.3% year over year to RMB7,115.2 million (US$1,062.3 million) from RMB5,378.1 million in the same quarter of 2021.

Total revenue for the second quarter of 2022 increased by 42.8% year over year to RMB6,634.4 million (US$990.5 million) from RMB4,646.0 million in the same quarter of 2021.

Non-GAAP net income for the second quarter of 2022 was RMB20.6 million (US$3.1 million),compared with non-GAAP net loss of RMB1,728.5 million in the same quarter of 2021.

Mr. Changlin Liang,Founder and Chief Executive Officer of Dingdong,stated,

"Fresh food is not ordinary consumer goods. Therefore,we aim to ensure not only food availability but also food quality. We bring happiness and passion for life to the public through food,and infuse inspiration and soulfulness into food. Only a team with unswerving,whole-hearted commitment and dedication can achieve this goal."

Ms. Le Yu,Chief Strategy Officer of Dingdong,

"As we established word-of-mouth on our product development capabilities among consumers,comparing our pre-lockdown and post-lockdown performances this year,we also saw a significant increase in the AOV post-lockdown and an improvement in our operational efficiency,which validated our "efficiency first,with due consideration to scale" strategy.

Looking ahead to Q3,we expect quality revenue growth with narrowing losses compared to the pre-lockdown Q1 this year. We also expect to achieve a single-month,non-GAAP break-even in December this year."

SecondQuarter 2022 Financial Results

Total revenues were RMB6,634.4 million (US$990.5 million),representing an increase of 42.8% from the same period of 2021,primarily driven by the robust growth in the Company's GMV,with a higher conversion ratio from GMV to revenue.

Product Revenues were RMB6,554.0 million (US$978.5 million),an increase of 42.4% from RMB4,603.3 million in the same quarter of 2021,primarily driven by the increase in average order value.

Service Revenues were RMB80.4 million (US$12.0 million),an increase of 88.1% from RMB42.7 million in the same quarter of 2021,primarily driven by the increase in the number of customers subscribing to Dingdong's membership program.

Total operating costs and expenses wereRMB6,634.6 million (US$990.5 million),an increase of 0.8% from RMB6,583.6 million in the same quarter of 2021,with a detailed breakdown as below.

Cost of Goods Sold was RMB4,537.3 million (US$677.4 million),an increase of 14.4% from RMB3,967.4 million in the same quarter of 2021,primarily driven by the increase in total revenue. Gross margin was 31.6%,which significantly improved from 14.6% in the same quarter of 2021.

Fulfillment expenses were RMB1,541.8 million (US$230.2 million) a decrease of 9.0% from RMB1,693.5 million in the same quarter of 2021. Fulfillment expenses as a percentage of total revenue decreased from 36.5% to 23.2%,mainly driven by the increase of average order value and improved frontline labor efficiency.

Sales and marketing expenses were RMB146.7 million (US$21.9 million),a decrease of 64.2% from RMB410.0 million in the same quarter of 2021,as product development capabilities became our primary growth driver and we attracted customers more efficiently.

General and administrative expenses were RMB153.5 million (US$22.9 million),a decrease of 49.9% from RMB306.3 million in the same quarter of 2021,mainly due to decreased share-based compensation expenses.

Product development expenses were RMB255.3 million (US$38.1 million),an increase of 23.7% from RMB206.5 million in the same quarter of 2021,mainly due to the increased investments in product development capability,agricultural technology,technical data algorithms,and other infrastructure.

Loss from operationswas RMB0.2 million (US$0.04 million),compared with operating loss of RMB1,937.6 million in the same quarter of 2021.

Net losswas RMB34.5 million (US$5.2 million),compared with net loss of RMB1,937.4 million in the same quarter of 2021.

Non-GAAP net income / (loss),which is a non-GAAP measure that excludes share-based compensation expenses,was RMB20.6 million (US$3.1 million),a significant improvement from RMB(1,728.5) million in the same quarter of 2021. In addition,our non-GAAP net margin,which is our non-GAAP net income / (loss) as a percentage of revenues,improved to 0.3% from (37.2%) in the same quarter of 2021.

Basic and diluted net loss per share were RMB0.11 (US$0.02),compared with RMB33.27 in the same quarter of 2021. Non-GAAP net income / (loss) per share,basic and diluted,was RMB0.06 (US$0.01),compared with RMB (30.05) in the same quarter of 2021. The weighted average number of ordinary shares used to compute the basic and diluted net loss per share and non-GAAP net income / (loss) per share were 64,908,700 and 324,345,013 in the secondquarter of 2021 and 2022,respectively. All outstanding redeemable convertible preferred shares were not included in the computation until July 2021,when they were converted into ordinary shares upon the completion of the Company's initial public offering.

Cash and cash equivalents and short-term investmentswere RMB6,063.8 million (US$905.3 million) as of June30,2022,compared with RMB5,231.1 million as of December 31,2021.

Conference Call

The Company's management will hold an earnings conference call at 8:00 A.M. Eastern Time on Thursday,August 11,2022 (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:


0227192


The replay will be accessible through August 18,2022 by dialing the following numbers:


International:


1-412-317-0088

United States:


1-877-344-7529

Access Code:


1497622


A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.100.me.

About Dingdong (Cayman) Limited

We are a leading fresh grocery e-commerce company inChina,with sustainable long-term growth. We directly provide users and households with fresh produce,prepared food,and other food products through 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 own production plants,allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be Chinese families' first choice for food shopping.

For more information,please visit: https://ir.100.me

Use of Non-GAAP Financial Measures

The Company uses non-GAAP measures,such as non-GAAP net income / (loss),non-GAAP net margin and non-GAAP net income / (loss) per share,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 RMB6.6981 to US$1.00,the exchange rate on June 30,2022 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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 e-commerce 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.

For investor inquiries,please contact:

Dingdong Fresh


ir@100.me

DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of RMB and US$)


As of


December 31,


2021


June30,

2022


June 30,

2022


RMB


RMB


US$


(Unaudited)


ASSETS


Current assets:


Cash and cash equivalents


662,768


2,011,719


300,342


Restricted cash


7,664


1,100


164


Short-term investments


4,568,346


4,052,094


604,962


Accounts receivable,net


191,519


158,232


23,623


Inventories


537,472


578,396


86,352


Advance to suppliers


86,711


107,264


16,014


Prepayments and other current assets


461,843


213,989


31,948


Total current assets


6,516,323


7,122,794


1,063,405


Non-currentassets:


Property and equipment,net


472,371


401,170


59,893


Operating leaseright-of-useassets


2,245,571


1,751,432


261,482


Othernon-currentassets


185,793


155,970


23,286


Totalnon-currentassets


2,903,735


2,308,572


344,661


TOTAL ASSETS


9,420,058


9,431,366


1,408,066


LIABILITIES,MEZZANINE EQUITY AND

SHAREHOLDERS' EQUITY


Current liabilities:


Accounts payable


2,058,624


1,876,611


280,171


Customer advances and deferred revenue


243,480


249,628


37,268


Accrued expenses and other current liabilities


653,261


699,749


104,470


Salary and welfare payable


244,740


188,721


28,175


Operating lease liabilities


969,494


835,511


124,739


Short-term borrowings


3,121,046


4,075,411


608,443


Current portion of long-term borrowings


57,875


15,625


2,333


Total current liabilities


7,348,520


7,941,256


1,185,599


Non-currentliabilities:


Operating lease liabilities


1,244,096


899,617


134,309


Other non-current liabilities


69,373


75,000


11,197


Totalnon-currentliabilities


1,313,469


974,617


145,506


TOTAL LIABILITIES


8,661,989


8,915,873


1,331,105


DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands of RMB and US$)


As of


December 31,


2021


June 30,

2022


RMB


RMB


US$


(Unaudited)


LIABILITIES,MEZZANINE EQUITY AND

SHAREHOLDERS' EQUITY (CONTINUED)


Mezzanine Equity:


Redeemable noncontrolling interests


30,000


103,400


15,437


TOTAL MEZZANINE EQUITY


30,000


103,400


15,437


Shareholders' equity


Ordinary shares


4


4


1


Additional paid-in capital


13,685,062


13,795,348


2,059,591


Treasury stock


(7,042)


(20,666)


(3,085)


Accumulated deficit


(12,765,713)


(13,281,019)


(1,982,804)


Accumulated other comprehensive loss


(184,242)


(81,574)


(12,179)


TOTAL SHAREHOLDERS' EQUITY


728,069


412,093


61,524


TOTAL LIABILITIES,MEZZANINE EQUITY


AND SHAREHOLDERS' EQUITY


9,066


DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands of RMB and US$,except for number of shares and per share data)


For the threemonths ended

June 30,


2021


2022


2022


RMB


RMB


US$


(Unaudited)


Revenues:


Product revenues


4,603,265


6,553,999


978,486


Service revenues


42,741


80,390


12,002


Total revenues


4,646,006


6,634,389


990,488


Operating costs and expenses:


Cost of goods sold


(3,967,378)


(4,537,312)


(677,403)


Fulfillment expenses


(1,693,470)


(1,541,814)


(230,187)


Sales and marketing expenses


(409,991)


(146,699)


(21,902)


Product development expenses


(206,479)


(255,314)


(38,117)


General and administrative expenses


(306,261)


(153,489)


(22,915)


Total operating costs and expenses


(6,583,579)


(6,628)


(990,524)


Loss from operations


(1,937,573)


(239)


(36)


Interest income


15,187


17,416


2,600


Interest expenses


(19,982)


(32,844)


(4,904)


Other income


5,704


14,545


2,172


Other expenses


(733)


(26,742)


(3,992)


Loss before income tax


(1,397)


(27,864)


(4,160)


Income tax expenses


-


(6,659)


(994)


Net loss


(1,397)


(34,523)


(5,154)


Accretion of redeemable convertible preferred shares


(221,948)


-


-


Accretion of redeemable noncontrolling interests


-


(1,965)


(293)


Net loss attributable to ordinary shareholders


(2,159,345)


(36,488)


(5,447)


DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)

(Amounts in thousands of RMB and US$,


2021


2022


2022


RMB


RMB


US$


(Unaudited)


Net loss per ordinary share:


Basic and diluted


(33.27)


Shares used in net loss per ordinary share


computation:


Basic and diluted


64,700


Net loss per Class A and Class B ordinary share:


Basic and diluted


(0.11)


(0.02)


Shares used in net loss per Class A and Class B


ordinary share computation:


Basic and diluted


324,013


324,013


Other comprehensive (loss)/income,net of tax of nil:


Foreign currency translation adjustments


(85,974)


127,627


19,054


Comprehensive (loss)/income


(2,023,371)


93,104


13,900


Accretion of redeemable convertible preferred shares


(221,965)


(293)


Comprehensive (loss)/income attributable to ordinary


shareholders


(2,319)


91,139


13,607


DINGDONG (CAYMAN) LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of RMB and US$)


For the threemonths ended

June 30,


2021


2022


2022


RMB


RMB


US$


(Unaudited)


Net cash (used in)/generated from operating activities


(1,622,248)


217,725


32,505


Net cash used in investing activities


(5,114,051)


(359,578)


(53,684)


Net cash generated from financing activities


3,435,843


865,473


129,212


Effect of exchange rate changes on cash and cash


equivalents and restricted cash


(61,779)


22,632


3,380


Net (decrease)/increase in cashandcash equivalents


and

restricted cash


(3,362,235)


746,252


111,413


Cashand cash equivalents and restricted cash at the


beginning of the period


4,414,207


1,266,567


189,093


Cash andcash equivalents and restricted cash at the


end of the period


1,051,972


2,012,819


300,506


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 threemonths ended


June 30,


2021


2022


2022


RMB


RMB


US$


(Unaudited)


Net loss


(1,397)


(34,523)


(5,154)


Add: share-based compensation expenses (1)


208,943


55,111


8,228


Non-GAAP net (loss) / income


(1,728,454)


20,588


3,074


Net loss margin


(41.7%)


(0.5%)


Add: share-based compensation expenses


4.5%


0.8%


Non-GAAP net (loss) / profit margin


(37.2%)


0.3%


Net loss attributable to ordinary shareholders


(2,345)


(36,488)


(5,447)


Add: share-based compensation expenses (1)


208,228


Non-GAAP net (loss)/income attributable to


ordinary shareholders


(1,950,402)


18,623


2,781


Net loss per ordinary share:


Basic and diluted


(33.27)


Add: share-based compensation expenses


3.22


Non-GAAP net loss per ordinary share:

Basic and diluted


(30.05)


Net loss per Class A and Class B ordinary share:


Basic and diluted


(0.11)


(0.02)


Add: share-based compensation expenses


0.17


0.03


Non-GAAP net income per Class A and Class B


ordinary share:


Basic and diluted


0.06


0.01


(1) Share-based compensation expenses are recognized as follows:


For the threemonths ended

June 30,


2021


2022


2022


RMB


RMB


US$


(Unaudited)


Fulfillment expenses


2,536


11,139


1,663


Sales and marketing expenses


89


2,778


415


Product development expenses


5,635


24,880


3,714


General and administrative expenses


200,683


16,314


2,436


Total


208,943


55,111


8,228


Dingdong (Cayman) Limited Announces Second Quarter 2022 Financial Results

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