Financial Data and Key Metrics Changes - Dingdong reported a GMV of RMB6.5 billion, up 4.5% year over year, and revenue of RMB5.98 billion, a 6.7% increase from the previous year [6][22] - Non-GAAP net profit reached RMB130 million, growing 23.9% compared to RMB100 million in the same period last year, with a net profit margin of 2.1%, up 0.3 percentage points year over year [6][27] - GAAP net profit was RMB110 million, an increase of 59.7% from RMB70 million, with a net profit margin of 1.8%, up 0.6 percentage points year on year [6][27] - The average monthly order frequency hit 4.4 times, reflecting a year-on-year increase [24] Business Line Data and Key Metrics Changes - The 2B business saw consistent growth with revenue climbing 69.4% year on year, and its revenue share rising by 1.6 percentage points year on year [24] - Good products accounted for 40% of SKUs and contributed to around 47% of GMV, showing a rapid growth in GMV increasing by roughly 30 percentage points since the start of the year [34] Market Data and Key Metrics Changes - In Shanghai, market penetration achieved a 3.5% year-on-year increase, while Jiangsu and Zhejiang saw 11% yearly growth with 10 cities surpassing 20% growth [11] - Good products represented 55% of GMV in meat, poultry, and eggs, while organic vegetables accounted for 12% of vegetable sales, a 38% increase in GMV year over year [35] Company Strategy and Development Direction - The company is focused on its four Gs strategy: good users, good products, good services, and good mindshare, which has been in place for six months and has shown positive results [7][30] - Plans for expansion into Europe, America, and Africa are underway, with a focus on leveraging supply chain strengths and product offerings [13] - The company aims to create long-term value through a narrow and deep approach, ensuring every family can enjoy healthier meals [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges rising competition in instant retail but emphasizes a focus on creating value rather than competing on price [39] - The company aims for stable scale year over year and to maintain non-GAAP profitability despite challenges [20] - Management believes that the transformation will take time but will yield increasingly evident results, positioning the company strongly in the market [44] Other Important Information - The fulfillment cost rate dropped to 21.7%, down by 0.7 percentage points year on year, driven by economies of scale and ongoing efficiency gains [26] - The marketing expense ratio improved to 1.7%, a 0.6 percentage point improvement year on year [26] Q&A Session Summary Question: Can you summarize the progress and outcome of the four Gs strategy during this period? - The four Gs strategy has led to a comprehensive restructuring of production relationships and enhanced productivity, focusing on high-quality products and user engagement [30][31] Question: How does management perceive the current competition, including instant retail and the frontline fulfillment station market? - Management emphasizes a focus on creating value and developing the supply chain rather than competing for users and traffic, highlighting significant differences in strategic approaches [39][40]

Financial Data and Key Metrics Changes - Dingdong reported a GMV of RMB5.96 billion, a 7.9% increase year on year, and revenue of RMB5.48 billion, reflecting a 9.1% year on year rise [7][30] - Non GAAP net profit was RMB30 million with a non GAAP net profit margin of 0.6%, while GAAP net profit was RMB8 million with a GAAP net profit margin of 0.1% [7][30] - Operating net cash inflow reached RMB85 million, indicating positive cash flow alongside profitability [30][36] Business Line Data and Key Metrics Changes - The order volume increased by 12.1% year on year, with average active user count surpassing 2 million, a 4.5% increase year on year [9][11] - Average daily transaction users exceeded 830,000, an 11.1% year on year increase, reflecting effective user acquisition strategies [10] - The 2B business showed solid growth with a revenue increase of 64.6% year on year [32] Market Data and Key Metrics Changes - Jiangsu, Zhejiang, and Shanghai regions remained primary growth drivers, with Shanghai's GMV rising by 5% year on year, while Zhejiang and Jiangsu saw increases of 17% and 13.9% respectively [12] - Cities like Wenzhou, Wuzhou, Nantong, and Jinhua reported over 50% growth year on year [12][32] Company Strategy and Development Direction - The company is implementing a "four gs strategy" focusing on good users, good products, good services, and good mindshare, which has led to significant adjustments in objectives and organizational structure [8][26] - The strategy aims to create competitive barriers and secure long-term growth opportunities by differentiating from competitors and maximizing supply chain advantages [42][46] - Dingdong emphasizes quality over low prices, aiming to enhance product quality and user satisfaction [45][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining year on year growth and achieving non GAAP profitability for Q2 2025, despite being in a transitional phase [28] - The company anticipates significant growth in performance scale and profit margins by the end of the year [28] - Management highlighted the importance of adapting to competition and the need for a robust supply chain to sustain profitability [17][20] Other Important Information - The company has established 14 new frontline fulfillment stations to enhance operational efficiency [13] - Dingdong's cash reserves stood at RMB2.89 billion after accounting for short-term loans, indicating a healthy financial position [31][36] - The company has formed strategic partnerships with various retail groups and agricultural institutions to enhance its supply chain capabilities [21][22] Q&A Session Summary Question: Can you elaborate on the four gs strategy and its long-term advantages? - Management explained that the four gs strategy focuses on good users, good products, good services, and good mindshare, aiming to create genuine competitive barriers and secure long-term growth opportunities [39][42] - The strategy emphasizes quality over price, with a commitment to enhancing product quality and user satisfaction [45][46] Question: Can you provide an overview of the current business situation of Guiyu Food Group? - Management highlighted Guiyu's strategic positioning, rapid scale growth, and focus on quality product development, with significant revenue growth and plans for future expansion [51][53][55]

Financial Data and Key Metrics Changes - Dingdong reported a GMV of RMB5.96 billion, a 7.9% increase year on year, and revenue of RMB5.48 billion, reflecting a 9.1% year on year growth [6][29] - Non GAAP net profit was RMB30 million with a non GAAP net profit margin of 0.6%, while GAAP net profit was RMB8 million with a GAAP net profit margin of 0.1% [6][35] - Operating net cash inflow reached RMB85 million, indicating positive cash flow alongside profitability [29] Business Line Data and Key Metrics Changes - The order volume increased by 12.1% year on year, with the average active user count surpassing 2,000,000, a 4.5% increase year on year [8] - Average daily transaction users exceeded 830,000, an 11.1% year on year increase, reflecting effective user acquisition strategies [8] - The 2B business showed solid growth with a revenue increase of 64.6% year on year [31] Market Data and Key Metrics Changes - Jiangsu, Zhejiang, and Shanghai regions remained primary growth drivers, with Shanghai's GMV rising by 5% year on year, while Zhejiang and Jiangsu saw increases of 17% and 13.9% respectively [10] - Cities like Wenzhou, Wuzhou, Nantong, and Jinhua reported over 50% growth year on year [10][31] Company Strategy and Development Direction - The company is implementing a "four gs strategy" focusing on good users, good products, good services, and good mindshare, which has led to significant adjustments in objectives and organizational structure [7][24] - The strategy aims to enhance product quality and user satisfaction, moving away from a focus on low prices to prioritize quality and service [41][46] - The company is also expanding its supply chain capabilities and forming strategic partnerships to enhance its competitive position [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining year on year growth and achieving non GAAP profitability for Q2 2025, despite transitional challenges [27] - The company anticipates that its strategic adjustments will lead to substantial enhancements in sales volume and profit margins over time [27][48] Other Important Information - The average turnover days improved to 11.7 days, indicating increased efficiency [33] - The company has established 14 new frontline stations to optimize its fulfillment network [11] - Guiyu Food Group, a strategic business unit, has shown rapid growth with a GMV of approximately RMB5 billion in 2024, accounting for about 20% of Dingdong's sales [53][54] Q&A Session Summary Question: Can you elaborate about the four gs strategy? - The four gs strategy focuses on good users, good products, good services, and good mindshare, aiming to create competitive barriers and secure long-term growth opportunities [38][41] Question: Can you give an overview of the current business situation of Guiyu Food Group? - Guiyu has achieved vertical integration of the supply chain, with a GMV of approximately RMB5 billion in 2024 and plans to increase export revenues significantly [52][54]