Our reporter Xie Lan and trainee reporter Liang Aonan
On the evening of November 6th, the fresh food e-commerce platform Dingdong Maicai released its financial report for the third quarter of 2024. According to the financial report, Dingdong Maicai's GMV (Gross Merchandise Volume) for the quarter was 7.27 billion yuan, a year-on-year increase of 28.3%; Revenue was 6.54 billion yuan, a year-on-year increase of 27.2%; Achieve a net profit of 160 million yuan under Non GAAP standards, a year-on-year increase of more than 9 times, with a net profit margin of 2.5%.
Thus, Dingdong Maicai has achieved profitability under Non GAAP standards for eight consecutive quarters, and its revenue has achieved year-on-year positive growth for three consecutive quarters. As of the end of the third quarter, Dingdong Maicai had a cash reserve of 4.3 billion yuan, including cash and cash equivalents, short-term restricted funds, and short-term investments.
The growth rate of performance indicates that Dingdong Maicai's competitiveness in the market continues to strengthen, while also reflecting the increasing recognition and frequency of use of the platform by consumers. The company's financial health is good, which can support future business expansion and technology research and development investment, and provide a solid financial foundation for responding to market changes, "said Hong Yong, a think tank expert at the China Digital Reality Integration 50 Forum, in an interview with Securities Daily reporters.
Breaking down the financial report data, the company's performance growth is mainly due to the continuous optimization and rapid improvement of core operating indicators. In the third quarter, Dingdong Maicai achieved a year-on-year growth of 24.5% in the average monthly order users, reaching 8.22 million. Meanwhile, the average monthly income of each user has steadily increased by 6.4% compared to the same period last year, with the average consumption of members increasing by 8.8% year-on-year, reaching 540 yuan.
While the overall business scale continues to expand, Dingdong Maicai has also witnessed a significant increase in user stickiness. In the third quarter, the average monthly order frequency of users reached 4.4 times, an increase of 6.1% compared to the same period last year. In particular, the average monthly order frequency of member users was as high as 7.6 times, an increase of 9.8% year-on-year.
In terms of regional development, Dingdong Maicai further consolidated its leading position in the Jiangsu Zhejiang Shanghai region in the third quarter. Specifically, the GMV of Shanghai and Jiangsu Zhejiang regions increased by 24.5% and 40% year-on-year, respectively, with 13 cities achieving an annual growth rate of over 50%. From the perspective of order volume, the daily average order volume in Shanghai has approached 1700, while the daily average order volume in Jiangsu and Zhejiang has also exceeded 1000.
In response to this, Dingdong Maicai stated to a reporter from Securities Daily that in the past year, Dingdong Maicai has focused on improving the richness and price ratio of its products in the Jiangsu, Zhejiang, and Shanghai regions, especially expanding the categories of "coffee table scenes" such as leisure department stores, dairy drinks, and fruits, which has effectively increased user penetration rate.
According to the reporter's understanding, Dingdong Maicai is still continuously optimizing the layout density of its front warehouses in the Jiangsu Zhejiang Shanghai region. As of the end of the third quarter, the company has achieved its original goal of opening 80 new pre warehouses in Jiangsu, Zhejiang, and Shanghai this year, and has increased the annual target quantity to 110. The high-density layout in the core area will also help the company continue to optimize performance costs and efficiency. Outside of the Jiangsu Zhejiang Shanghai region, Dingdong Maicai has also achieved stable growth in scale in Beijing and the Guangzhou Shenzhen region, with Beijing's GMV increasing by 14.6% year-on-year in the third quarter.
The continuous optimization of the business side, coupled with the continuous deepening of the supply chain, jointly promotes the development of Dingdong Maicai towards stable and positive high-quality operation direction.
At the financial report and performance meeting, Dingdong Maicai disclosed that in the third quarter, differentiated development of dozens of sub categories including fresh seafood, drinking water, sandwiches, beverages, ice cream, etc. contributed to more than half of the overall market growth; Among them, in Shanghai, the average daily number of SKUs on shelves in the coffee table leisure scene categories such as fruits, dairy products, alcoholic beverages, leisure department stores, and baking increased by more than 400 compared to the same period last year.
Our goal is to provide users with differentiated and better quality products, and independent product production and research and development capabilities are necessary conditions to achieve our goals. Our own factory supply chain capabilities have been constantly iterating, based on our continuously improving consumer demand insight ability, paying more attention to continuous investment in product development and innovation capabilities, while improving production efficiency, "said Liang Changlin, founder and CEO of Dingdong Maicai.
Based on the good performance in the third quarter, Dingdong Maicai has raised its expectations for net profit. The company expects to maintain significant year-on-year growth in net profit and scale for this year and the fourth quarter, achieving profitability under Non GAAP and GAAP standards.