Dingdong's GMV grew 16.8% YoY in the grocery market, with remarkable performance in Jiangsu, Zhejiang and Shanghai.
AInvestWednesday, Aug 7, 2024 10:50 am ET
1min read
MMM --

August 7, 2024, DING DONG's 2024H1 (April 1 to June 30) financial report shows that DING DONG's revenue reached Rmb5.6bn, up 15.7% YoY; GMV (gross merchandise volume) reached Rmb6.2bn, up 16.8% YoY; and non-GAAP net profit reached Rmb103mn, up nearly 13 times YoY.

From the data level, the growth of DING DONG's revenue in 2024 is mainly driven by the improvement of user scale and ARPU (average revenue per user). According to the relevant person in charge of DING DONG, the average monthly active user number of the quarter was about 7.3mn, up 11.7% YoY; and the ARPU increased by 6% YoY, of which the average monthly income from members reached Rmb500 and above.

From the regional perspective, the growth of DING DONG in the main urban areas is more remarkable. In 2024H1, the GMV of Shanghai and Jiangsu-Zhejiang region increased by 16.5% and 30% YoY respectively.

Even in 2024, DING DONG continued to expand the number of pre-stocking warehouses in Jiangsu-Zhejiang-Shanghai region, and is expected to open about 80 pre-stocking warehouses this year, of which nearly 40 have been opened in the first half of the year, and the order volume of these new warehouses has climbed rapidly after opening, and the daily average order volume of these warehouses has already broken through 800 orders.

In addition, the algorithm and supply chain operation capabilities are also promoting the improvement of order volume and service quality. In 2024H1, the daily average order volume of pre-stocking warehouses of DING DONG broke 1,000 orders, up 29.4% YoY; and the instant single delivery time was 36 minutes, 2 minutes faster than the same period last year.

The financial report also shows that DING DONG's operating cash flow net inflow reached Rmb250mn in 2024H1, which is the fifth consecutive quarter to maintain net inflow. As of the end of the quarter, DING DONG's balance sheet including cash and cash equivalents, short-term restricted cash and short-term investments reached Rmb4.16bn.

Combined with the steady growth of business and healthy financial situation, DING DONG further raised the expectation of profit and scale, and expected that the net profit and scale of the third quarter and the whole year would have a significant increase YoY, and continue to achieve profitability under both non-GAAP and GAAP standards.

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