SHANGHAI, Aug. 30, 2021 /PRNewswire/ -- Dingdong (Cayman)
Limited ("Dingdong" or the "Company") (NYSE: DDL), a leading and
fastest-growing on-demand e-commerce company in China, today announced its unaudited financial
results for the second quarter ended June
30, 2021.
Second Quarter 2021 Highlights:
- GMV for the second quarter of 2021 increased by 80.8%
year over year to RMB 5,378.2 million
(US$ 833.0 million) from RMB 2,975.4 million in the same quarter of
2020.
- Total revenue for the second quarter of 2021 increased
by 77.9% year over year to RMB 4,646.0
million (US$ 719.6 million)
from RMB 2,611.1 million in the same
quarter of 2020.
- Non-GAAP net loss for the second quarter of 2021 was
RMB 1,728.5 million (US$ 267.7 million), compared with RMB 714.5 million in the same quarter of
2020.
- The number of average monthly transacting users for the
second quarter of 2021 increased by 39.1% year over year to 8.4
million from 6.1 million in the same quarter of 2020.
- The number of frontline fulfillment station were 1,136
as of June 30, 2021, increased by 147
compared to that of March 31,
2021.
Mr. Changlin Liang, Founder and
Chief Executive Officer of Dingdong, stated, "We are delighted to
report that our GMV in the second quarter of 2021 increased by
80.8% year over year to RMB5.4
billion. Geographically speaking, we achieved 49.8%
year-over-year growth in our GMV from our most mature markets in
the Yangtze Delta region. Growth was mainly driven by growth in our
customer base and a significant increase in purchase frequency by
our existing users on our platform. We expect that Dingdong will be
the fifth infrastructure, next to water, electricity, gas, and
internet, in the lives of future households. We are dedicated to
making fresh groceries and daily necessities on the Dingdong
platform as readily available as running water for every
household."
Ms. Le Yu, Chief Strategy Officer
of Dingdong, stated, "For the third quarter, we expect to see a
100% year-over-year increase in total revenues, an
improving gross margin, and a
narrowing non-GAAP net loss margin. Non-GAAP net loss margin is
expected to narrow in the third quarter of 2021, and further narrow
in the fourth quarter of 2021. In Shanghai where our business is more mature, we
expect to see improved unit economics in both gross margin and
fulfillment efficiency, and deliver a positive operating profit in
terms of unit economics in the fourth quarter of this year."
Second Quarter 2021 Financial Results
Total net revenues. Total net revenues were RMB 4,646.0 million (US$
719.6 million), representing an increase of 77.9% from the
same period of 2020. The increase was primarily due to an increase
in revenues from product revenues and contribution from service
revenues.
- Product Revenues were RMB 4,603.3
million (US$ 713.0 million),
an increase of 78.4% from RMB 2,580.6
million in the same quarter of 2020.
- Service Revenues were RMB 42.7
million (US$ 6.6 million), an
increase of 40.4% from RMB 30.4
million in the same quarter of 2020.
Total operating costs and expenses were RMB 6,583.6 million (US$
1,019.7 million), an increase of 93.3% from RMB 3,405.6 million in the same quarter of 2020.
The increase was mainly due to significant revenue growth and
increased spending on product development expenses to lay a solid
ground for further growth.
- Cost of Goods Sold were RMB
3,967.4 million (US$ 614.5
million), an increase of 91.8% from RMB 2,068.3 million in the same quarter of 2020,
mainly due to the increase in total net revenue and our proactive
adjustment of pricing strategy to improve customer purchase
frequency and customer retention and increase the user penetration
in new cities.
- Fulfillment expenses were RMB
1,693.5 million (US$ 262.3
million), an increase of 79.3% from RMB 944.6 million in the same quarter of 2020,
mainly due to the increase in the total number of orders.
- Sales and marketing expenses were RMB 410.0 million (US$
63.5 million), an increase of 263.6% from RMB 112.8 million in the same quarter of 2020,
mainly because we increased spending on sales and marketing
expenses to acquire new customers.
- General and administrative expenses were RMB 306.3 million (US$
47.4 million), an increase of 40.3% from RMB 218.2 million in the same quarter of 2020,
mainly due to the growth of business scale and increase in the
share-based compensation expenses.
- Product development expenses were RMB 206.5 million (US$
32.0 million), an increase of 234.7% from RMB 61.7 million in the same quarter of 2020,
mainly due to increase in the spending on our supply chain system
to further improve efficiency and reduce operating costs, and
increased in the spending on agricultural technology to enable the
upstream partners.
Loss from operations was RMB
1,937.6 million (US$ 300.1
million), compared with operating loss of RMB 794.5 million in the same quarter of 2020.
Net loss was RMB 1,937.4
million (US$ 300.1 million),
compared with net loss of RMB 858.3
million in the same quarter of 2020.
Non-GAAP net loss, which is a non-GAAP measure that
excludes share-based compensation expenses, was RMB 1,728.5 million (US$
267.7 million), compared with non-GAAP net loss of
RMB 714.5 million in the same quarter
of 2020. Basic and diluted net loss per share were
RMB 33.27 (US$
5.15), compared with RMB 15.02
in the same quarter of 2020. Non-GAAP net loss per share, basic and
diluted adjusted were RMB 30.05
(US$ 4.65), compared with
RMB 12.79 in the same quarter of
2020.
Cash and cash equivalents and short-term investments were
RMB 7,287.7 million (US$ 1,128.7 million) as of June 30, 2021, compared with RMB 5,619.9 million as of March 31, 2021.
Conference Call
The Company's management will hold an earnings conference call
at 8:30 A.M. Eastern Time on Monday,
August 30, 2021 (8:30 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:
|
3659012
|
The replay will be accessible through September 6, 2021 by dialing the following
numbers:
International:
|
1-412-317-0088
|
United
States:
|
1-877-344-7529
|
Access
Code:
|
10159819
|
A live and archived webcast of the conference call will also be
available on the Company's investor relations website at
https://ir.100.me.
About Dingdong (Cayman) Limited
Dingdong (Cayman) Limited is a leading and fastest-growing
on-demand e-commerce company in China providing users with fresh produce, meat
and seafood, and other daily necessities through a convenient and
excellent shopping experience supported by an extensive
self-operated frontline fulfillment grid. From its core product
category of fresh groceries, Dingdong has expanded to provide other
daily necessities to grow into a leading one-stop online shopping
destination in China for consumers
to make purchases for their daily lives. At the same time, Dingdong
is working to modernize China's
traditional agricultural supply chain through standardization and
digitalization, empowering upstream farms and suppliers to make
their production more efficient and tailored to actual demand.
For more information, please visit: www.100.me.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as non-GAAP net loss,
non-GAAP net loss margin, non-GAAP net loss attributable to
ordinary shareholders and non-GAAP net loss 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 Reconciliations 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 RMB 6.4566 to US$
1.00, the exchange rate on June 30,
2021 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, the
impact of COVID-19, 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, 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: the impact
of the COVID-19 pandemic on Dingdong's business, results of
operations, financial condition, and stock price; Dingdong's
strategies; Dingdong's future business development, financial
condition and results of operations; Dingdong's ability to retain
and increase the number of users, members and advertising
customers, provide quality content, products and services, and
expand its product and service offerings; competition in the online
entertainment industry; Dingdong's ability to maintain its culture
and brand image within its addressable user communities; Dingdong's
ability to manage its costs and expenses; PRC governmental policies
and regulations relating to the e-commerce industry, 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 Securities and
Exchange Commission. 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$)
|
|
|
As
of
|
December
31, 2020
RMB
|
June
30
2021
RMB
|
June 30,
2021
US$
|
|
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,376,153
|
1,049,972
|
162,620
|
Restricted
cash
|
74,295
|
2,000
|
310
|
Short-term
investments
|
1,006,245
|
6,235,686
|
965,785
|
Accounts receivable,
net
|
38,805
|
82,905
|
12,840
|
Amounts due from
related parties
|
10,100
|
—
|
—
|
Inventories
|
386,431
|
503,663
|
78,007
|
Advance to
suppliers
|
37,133
|
71,571
|
11,085
|
Prepayments and other
current assets
|
97,878
|
272,828
|
42,256
|
Total current
assets
|
3,027,040
|
8,218,625
|
1,272,903
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
272,691
|
346,537
|
53,672
|
Operating lease
right-of-use assets
|
1,503,222
|
1,756,171
|
271,996
|
Other non-current
assets
|
121,459
|
162,252
|
25,130
|
Total non-current
assets
|
1,897,372
|
2,264,960
|
350,798
|
TOTAL
ASSETS.
|
4,924,412
|
10,483,585
|
1,623,701
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,579,948
|
2,131,883
|
330,187
|
Customer advances and
deferred revenue
|
140,404
|
165,308
|
25,603
|
Accrued expenses and
other current liabilities
|
857,738
|
637,761
|
98,777
|
Salary and welfare
payable
|
136,960
|
148,575
|
23,011
|
Operating lease
liabilities
|
594,787
|
716,328
|
110,945
|
Short-term
borrowings
|
1,234,522
|
2,377,768
|
368,269
|
Current portion of
long-term borrowings
|
86,500
|
72,000
|
11,151
|
Warrant
liabilities
|
108,160
|
—
|
—
|
Total current
liabilities
|
4,739,019
|
6,249,623
|
967,943
|
Non-current
liabilities:
|
|
|
|
Long-term
borrowings
|
58,375
|
25,625
|
3,969
|
Operating lease
liabilities
|
871,685
|
973,603
|
150,792
|
Total non-current
liabilities
|
930,060
|
999,228
|
154,761
|
TOTAL
LIABILITIES.
|
5,669,079
|
7,248,851
|
1,122,704
|
DINGDONG (CAYMAN)
LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS — (Continued)
|
(Amounts in
thousands of RMB and US$)
|
|
|
As
of
|
December
31, 2020
RMB
|
June
30,
2021
RMB
|
June 30,
2021
US$
|
|
|
(Unaudited)
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
(CONTINUED)
|
|
|
|
MEZZANINE
EQUITY
|
5,174,910
|
12,628,087
|
1,955,842
|
Shareholders'
Deficit:
|
|
|
|
Ordinary
shares
|
1
|
1
|
—
|
Additional paid-in
capital
|
151,657
|
369,752
|
57,267
|
Accumulated
deficit
|
(6,048,274)
|
(9,658,797)
|
(1,495,957)
|
Accumulated other
comprehensive loss
|
(22,961)
|
(104,309)
|
(16,155)
|
TOTAL SHAREHOLDERS'
DEFICIT
|
(5,919,577)
|
(9,393,353)
|
(1,454,845)
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
|
4,924,412
|
10,483,585
|
1,623,701
|
DINGDONG (CAYMAN)
LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(Amounts in
thousands of RMB and US$, except for number of shares and per share
data)
|
|
|
For the three
months ended June 30,
|
|
2020
|
2021
|
2021
|
|
RMB
|
RMB
|
US$
|
|
|
(Unaudited)
|
|
Revenues:
|
|
|
|
Product
revenues
|
2,580,645
|
4,603,265
|
712,955
|
Service
revenues
|
30,444
|
42,741
|
6,620
|
Total
revenues
|
2,611,089
|
4,646,006
|
719,575
|
Operating costs and
expenses:
|
|
|
|
Cost of goods
sold
|
(2,068,310)
|
(3,967,378)
|
(614,469)
|
Fulfillment
expenses
|
(944,583)
|
(1,693,470)
|
(262,285)
|
Sales and marketing
expenses
|
(112,759)
|
(409,991)
|
(63,500)
|
Product development
expenses
|
(61,689)
|
(206,479)
|
(31,980)
|
General and
administrative expenses
|
(218,223)
|
(306,261)
|
(47,433)
|
Total operating
costs and expenses
|
(3,405,564)
|
(6,583,579)
|
(1,019,667)
|
Loss from
operations
|
(794,475)
|
(1,937,573)
|
(300,092)
|
Interest
income
|
3,020
|
15,187
|
2,352
|
Interest
expenses
|
(4,753)
|
(19,982)
|
(3,095)
|
Other
income
|
4,536
|
5,704
|
883
|
Other
expenses
|
(29,571)
|
(733)
|
(113)
|
Changes in fair value
of warrant liabilities
|
(37,078)
|
—
|
—
|
Loss before income
tax
|
(858,321)
|
(1,937,397)
|
(300,065)
|
Income tax
expenses
|
—
|
—
|
—
|
Net
loss
|
(858,321)
|
(1,937,397)
|
(300,065)
|
Accretion of
redeemable convertible preferred shares
|
(113,954)
|
(221,948)
|
(34,375)
|
Net loss
attributable to ordinary shareholders
|
(972,275)
|
(2,159,345)
|
(334,440)
|
DINGDONG (CAYMAN)
LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(Amounts in
thousands of RMB and US$, except for number of shares and per share
data)
|
|
|
For the three
months ended June 30,
|
|
2020
|
2021
|
2021
|
|
RMB
|
RMB
|
US$
|
|
|
(Unaudited)
|
|
Net loss per
share:
|
|
|
|
Basic and
diluted
|
(15.02)
|
(33.27)
|
(5.15)
|
Weighted average
common shares outstanding used in net loss per share
computation
|
64,752,250
|
64,908,700
|
64,908,700
|
Other
comprehensive loss, net of tax of nil:
|
|
|
|
Foreign currency
translation adjustments
|
(405)
|
(85,974)
|
(13,316)
|
Comprehensive
loss
|
(858,726)
|
(2,023,371)
|
(313,381)
|
Accretion of
redeemable convertible preferred shares
|
(113,954)
|
(221,948)
|
(34,375)
|
Comprehensive loss
attributable to ordinary shareholders
|
(972,680)
|
(2,245,319)
|
(347,756)
|
DINGDONG (CAYMAN)
LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Amounts in
thousands of RMB and US$)
|
|
|
For the three
months ended June 30,
|
|
2020
|
2021
|
2021
|
|
RMB
|
RMB
|
US$
|
|
|
(Unaudited)
|
|
Net cash used in
operating activities
|
(534,331)
|
(1,622,248)
|
(251,254)
|
Net cash used in
investing activities
|
(254,514)
|
(5,114,051)
|
(792,066)
|
Net cash generated
from financing activities
|
2,256,252
|
3,435,843
|
532,144
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
21,982
|
(61,779)
|
(9,569)
|
Net
increase/(decrease) in cash and cash equivalents and restricted
cash
|
1,489,389
|
(3,362,235)
|
(520,745)
|
Cash and cash
equivalents and restricted cash at the beginning of the
period
|
1,564,906
|
4,414,207
|
683,675
|
Cash and cash
equivalents and restricted cash at the end of the
period
|
3,054,295
|
1,051,972
|
162,930
|
DINGDONG (CAYMAN)
LIMITED
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
(Amounts in
thousands of RMB and US$, except for number of shares and per share
data)
|
|
|
For the three
months ended June 30,
|
|
2020
|
2021
|
2021
|
|
RMB
|
RMB
|
US$
|
|
|
(Unaudited)
|
|
Net loss
|
(858,321)
|
(1,937,397)
|
(300,065)
|
Add: share-based
compensation expenses(1)
|
143,812
|
208,943
|
32,361
|
Non-GAAP net
loss
|
(714,509)
|
(1,728,454)
|
(267,704)
|
Net loss attributable
to ordinary shareholders
|
(972,275)
|
(2,159,345)
|
(334,440)
|
Add: share-based
compensation expenses(1)
|
143,812
|
208,943
|
32,361
|
Non-GAAP net loss
attributable to ordinary shareholders
|
(828,463)
|
(1,950,402)
|
(302,079)
|
Weighted average
number of ordinary shares outstanding used in calculating basic and
diluted net loss per
share
|
64,752,250
|
64,908,700
|
64,908,700
|
Non-GAAP net loss
per share:
|
|
|
|
Basic and
diluted
|
(12.79)
|
(30.05)
|
(4.65)
|
|
(1)
Share-based compensation expenses are recognized as
follows:
|
|
|
For the three
months ended June 30,
|
|
2020
|
2021
|
2021
|
|
RMB
|
RMB
|
US$
|
|
|
(Unaudited)
|
|
Fulfillment
expenses
|
86
|
2,536
|
393
|
Sales and marketing
expenses
|
62
|
89
|
14
|
Product development
expenses
|
488
|
5,635
|
872
|
General and
administrative expenses
|
143,176
|
200,683
|
31,082
|
Total
|
143,812
|
208,943
|
32,361
|
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content:https://www.prnewswire.com/news-releases/dingdong-cayman-limited-announces-second-quarter-2021-financial-results-301365036.html
SOURCE Dingdong (Cayman) Limited