Q1 2025 Dingdong (Cayman) Ltd Earnings Call
Good morning, and good evening, ladies and gentlemen, thank you for standing by and welcome to the Ding-dong Limited first quarter towards your 25 earnings conference call. At this time all participants are in a listen only mode. Please note that the event is being recorded I will now turn the conference over.
Operator: Good morning and good evening, ladies and gentlemen, thank you for standing by, and welcome to the Dingdong Limited First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that the event is being recorded.
Nicky Zheng: I will now turn the conference over to the first speaker today, Nicky Zheng, Director of Investor Relations. Please go ahead, sir. Thank you. Hello, everyone. Welcome to Dingdong's first quarter 2025 earnings call. With me today are Mr. Changlin Liang, our founder and CEO, and Mr. Song Wang, our CFO.
Speaker Change: To the first speaker today, Nikki Cheng director of Investor Relations. Please go ahead Sir.
Nikki Cheng: Thank you Hello, everyone and welcome to <unk> first quarter 2025 earnings call.
Nikki Cheng: With me today are Mr Toning down, our founder and CEO and Mr song Wang our sample.
Nicky Zheng: You can refer to our first quarter 2025 financial results on our IR website at ir.m100.me You can also access a replay of this call on our IR website When it becomes available a few hours, update it For today's call, management will go through their prepared remarks, which will be followed by a question and answer session.
Speaker Change: You can refer to our first quarter 2025 financial results I'll have upsides.
Speaker Change: 100, <unk> you can also access a replay of this call all of our website when it becomes available a few hours updates conclusion.
But today's call management will go through their prepared remarks, which will be followed by a question and answer session. Before we continue I would like to refer you jobs Safe Harbor statement, Yeah earnings press release, which also applies to this call we will be making forward looking statements. Please note.
Nicky Zheng: Before we continue, I would like to refer you to our Safe Harbor Statement in our earnings press release. which also applies to this call. As we will be making forward-looking statements, please note that all numbers stated in the following management prepared remarks are in R&B.
Speaker Change: That all numbers stated in the following management's prepared remarks.
Speaker Change: In RMB terms.
Nicky Zheng: And we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings report.
Speaker Change: And then we will discuss non-GAAP measures today, which are more salary expense and the way it comes out to the most comparable measures reporting our earnings release and filings with the SEC.
Liang Changlin: I will now turn the call to our first speaker today, the founder and the CEO of Dingdong Thank you, investors, analysts, and friends of Dingdong Cayman. Welcome to the 2025 Q1 financial analysis session of Dingdong Cayman. As of 2025 Q1, Dingdong Cayman has achieved profits below the non-GAAP standard for 10 consecutive quarters, and has achieved profits below the non-GAAP standard for 5 consecutive quarters. Input has also achieved a steady growth for 5 consecutive quarters.
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Liang Changlin: In this session, I will report on the business performance of the company for the first quarter, go into the company's business situation, and finally share the company's recent strategic thinking. Hello, everyone. Thank you for joining the Dingdong Earnings Call for Q1 2025. As of the first quarter of 2025, we have achieved non-gap profitability for 10 consecutive quarters and gap profitability for five quarters. Additionally, we've seen positive year-on-year revenue growth for five straight quarters. This consistent growth in both scale and profitability has undoubtedly laid a strong foundation for our future development.
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Speaker Change: Hello, everyone. Thank you for joining <unk> earnings call for Q1, 'twenty 75 as of the first quarter of 2025, we have achieved non-GAAP profitability for 10 consecutive quarters and GAAP profitability for five quarters. Additionally, we've seen positive year on year revenue growth for five straight quarters is consistent growth in both scale and profitability.
Speaker Change: <unk> has undoubtedly laid a strong foundation for all future development in today's call I'll outline our operating performance in Q1 offer a thorough analysis of our product status and discuss recent strategic insights.
Liang Changlin: In today's call, I'll outline our operating performance in Q1, offer a thorough analysis of our product status, and discuss recent strategic insights. In 2025, Dingdong Cayman achieved a GNV of 59.6 billion yuan, a growth rate of 7.9%, an income of 5.48 billion yuan, and a growth rate of 9.1%. Under the Long-Gap standard, net profit was 0.3 billion yuan, and net profit rate was 0.6%. Under the Gap standard, net profit was 8 million yuan, and net profit rate was 0.1%. Based on the full-year profitability in 2024, we will continue to maintain profitability and scale up. In the first quarter of 2025, Dingdong reported a GMV of 5.96 billion RMB, a 7.9% increase compared to the previous year.
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Speaker Change: In the first quarter of 2025 Ding-dong reported at G. M. D 5.96 billion RMB, 879% increase compared to the previous year revenue for the same period reached 5.48 billion RMB a rise of nine 1% year on year non-GAAP net profit stood at 30 million RMB with a non-GAAP net profit margin of zero point.
Liang Changlin: Revenue for the same period reached 5.48 billion RMB, a rise of 9.1% year-on-year. Non-Gap Net Profit stood at 30 million RMB with a Non-Gap Net Profit margin of 0.6%. Gap Net Profit was 8 million RMB with a Gap Net Profit margin of 0.1%. Building on the profits from 2024, we successfully achieved both profitability and growth in scale in the first quarter.
Speaker Change: 6% GAAP net profit was 8 million RMB. The GAAP net profit margin of 0.1% building on the profits from 'twenty 'twenty four we successfully achieved both profitability and growth and scale in the first quarter.
Liang Changlin: 2025 Q1 is the first quarter of the 4G strategy of Dingdong Cayman to implement good users, good products, good services, and good quality. We have made large-scale adjustments to the company's goal, organization structure, and assessment methods. We are still in the transitional period, but even in this transitional period, we have still achieved the same performance growth. The first quarter of 2025 marked the commencement of Dingdong's implementation of the 4G strategy, which emphasizes good users, good products, good services, and good mindshare. Significant adjustments have been made to the company's objectives, organizational structure, and evaluation methods, and we continue to experience transitional challenges.
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Speaker Change: The first quarter of 2025 March the commencement of paying bills implementation of the <unk> strategy, which emphasizes good users good products. Good services at good mindshare, so they've kind of adjustments have been made to the company's objectives organizational structure and evaluation method and we continue to experience transitional challenges Nevertheless, even amidst the Stifel.
Liang Changlin: Nevertheless, even amidst these difficulties, we have achieved year-on-year performance growth. The main driving force of the growth of the business is the increase in the number of active users in the existing area and the further improvement and optimization of our commodity power. In terms of business growth, the number of orders in this quarter has increased by 12.1% and the number of active users has exceeded 2 million. The number of orders has increased by 4.5% which directly reflects the expansion of market demand and the increase in the attractiveness of Dingdong's commodity power. In terms of conversion, the number of active users has exceeded 830,000 and the number of orders has increased by 11.1% This is due to our precise operating strategy in terms of user acquisition and traffic conversion.
Speaker Change: Accordingly, we have achieved year on year performance gross.
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Liang Changlin: The conversion rate of the order users has increased by 2.4% which proves our continuous optimization in terms of commodity development, operation ability, and app display recommendations. The commodity is more attractive to users and the user's path from browsing to purchase is smoother. In terms of user connection, the monthly order frequency has reached 4.1 times and has increased by 2.4%. We have created a high-quality experience for users from shopping to service to help users form a high-quality service habit. The growth of these data shows that Dingdong's 4G strategy of good users, good shopping, good service, and good quality has achieved a good start.
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Liang Changlin: People often say that a good start is half of success. We firmly believe that we are doing the right thing and will start the development of the positive wheel to achieve better results. The growth in performance was primarily fueled by higher user engagement in existing markets and our continued improvement in product development capabilities and optimization efforts. This quarter, the order volume rose by 12.1% year-on-year, with the average daily active user count surpassing 2 million, a 4.5% increase year-on-year. This reflects strong market demand, enhanced appeal of Dingdong's products, and our upgraded product development capabilities. Regarding user conversion, the average daily transaction users exceeded 830,000, an 11.1% year-on-year increase, owing to our effective strategies in user acquisition and traffic conversion.
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Speaker Change: The growth in performance was primarily fueled by higher user engagement in existing markets and a continued improvement in product development capabilities and optimization efforts. This quarter. The order volume rose by 12, 1% year on year with the average daily active user accounts, surpassing 2 million a four 5% increase year on year. This reflects.
Speaker Change: Strong market demand enhance appeal of doing those products and our upgraded product development capabilities regarding use of conversion. The average daily transaction users exceeded 830000, an 11, 1% year on year increase I think to our effective strategies user acquisition and traffic conversion is conversion rate for ordering user.
Liang Changlin: This conversion rate for ordering users improved by 2.4 percentage points year-on-year thanks to the continued enhancement in product development, operational efficiency, app-based recommendations, as well as the appeal of our offerings. This has created a more seamless transition from browsing to purchasing. User stickiness continued to increase, with average monthly order frequency rising to 4.1 times, an increase of 2.4% year-on-year, driven by our superior shopping experience that includes both products and services, which helps users cultivate a habit of frequent repurchases. The growth in these metrics mark a promising start of our 4G strategy, which emphasizes good users, good products, good services, and good mindshare.
Speaker Change: It's improved by two four percentage points year on year, thanks to the continuous enhancement in product development operational efficiency at base recommendations as well as the appeal of our offerings. This has created a more seamless transition from browsing to purchasing user stickiness continue to increase with average monthly order frequency rising to four one times.
Speaker Change: An increase of 2.4 times a percent year on year, driven by our superior shopping experience that includes both product and services, which helps users called today a habit of frequent repurchases.
Speaker Change: And these metrics Mark a promising start about four key strategy, which emphasizes the user's good products. Good service has been good mindshare people often say that a good start is half the battle. We firmly believe that we are undertaking the difficult yet right course of action, which will undoubtedly activate a positive development flywheel and deliver better performance.
Liang Changlin: People often say that a good start is half the battle. We firmly believe that we are undertaking the difficult yet right course of action, which will undoubtedly activate a positive development flywheel and deliver better performance.
Liang Changlin: From a regional perspective, the Jiangsu-Zhejiang region is still the core source of our growth. In this quarter, the GDP growth rate in Shanghai is 5.0%. The GDP growth rate in Zhejiang and Jiangsu regions is 17.8% and 13.9% respectively. In the Jiangsu-Zhejiang region, the GDP growth rate in all cities is the same. In Wenzhou, Huzhou, Nantong, Jinhua and other cities, the GDP growth rate is more than 50%. In Huizhou and Foshan, the GDP growth rate is more than 40%. This year, we will continue to accelerate the development of the front-line warehouse network layout in the Jiangsu-Zhejiang region.
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Liang Changlin: As of the end of Q1, the company has opened 14 new front-line warehouses. We will focus on the core area, the front-line warehouse network, and the precise layout and density optimization. We will create a more efficient travel system and a cost-effective structure that is more cost-effective. We will continue to promote overall operating efficiency. Regionally, the Jiangsu, Zhejiang, and Shanghai regions remain our primary growth drivers. In this quarter, Shanghai's GMV rose by 5% year-on-year, while Zhejiang and Jiangsu saw increases of 17.8% and 13.9% respectively. All cities within these regions reported positive year-on-year growth. Notable mentions include Wenzhou, Huzhou, Nantong, and Jinhua, each surpassing 50% growth.
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Speaker Change: Regionally the junk food to a guy in Shanghai regions remain our primary primarily growth deliver drivers in this quarter Shanghai GM V rose by 5% year on year, where a while it's really dumb and jumpsuits all English is a 17.8% and 13, 9% respectively. All cities within these regions reported positive year on year gross.
Speaker Change: Notable mentions include Wenzhou, gelatin uncle and Juba, each passing 50% growth. Additionally, collegial and foshan in the Guangdong.
Liang Changlin: Additionally, Huizhou and Foshan in the Guangdong-Shenzhen area experienced over 40% year-on-year growth. This year, we are further accelerating the deployment of our frontline fulfillment stations in Jiangsu, Zhejiang, and Shanghai. By the end of Q1, we had established 14 new frontline stations. By strategically optimizing the layout and density of our frontline fulfillment network in key areas, we aim to create a more efficient fulfillment system and enhance our cost structure, thereby continually improving overall operational efficiency.
Speaker Change: Finjan area experience over 40% year on year growth. This year. We are further accelerating the deployment of all phone lines documentation Johnson John in Shanghai by the end of Q1, we had established 14, new frontline patients.
Speaker Change: By strategically optimizing the layout and density of our frontline fulfillment network in key areas. We aim to create a more efficient fulfillment system and enhance our cost structure, thereby continually improving overall operational efficiency.
Liang Changlin: In the 4th quarter of last year, we worked together to improve the quality of our products and develop differentiated good products. After determining a 4-stage strategy of good service, good product, good service, and good quality, we have established a competitive target and production relationship with the strategic mission. In the 1st quarter, we have established a competitive reward system We have established a full product life cycle responsibility system and implemented the source of the production of the core executives. We have asked the product developers to reply to the consumers' reviews in person. More and more differentiated good products have started to emerge on our app and have won the users' love.
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Liang Changlin: In the last quarter of 2024, the entire company aligned around a shared understanding, which is we work together to improve product quality and develop differentiated products. After determining the 4G strategy of good users, good products, good services, and good mindshare, we established performance goals and organizational structures that support these strategic objectives. As a result, in the first quarter, more and more differentiated and good products appeared on our app and gained user popularity, driven by methods such as structuring the product business unit, establishing an incentive scheme that rewards the development of differentiated and good products, creating a product lifecycle accountability system, having core executives visit product sources, and requiring product developers to respond to consumers' negative reviews personally.
Speaker Change: And the last quarter of 2020 for the entire company aligned around a sheer understanding which is we work together to improve product quality and develop differentiated products after determining that sports. He strategy up good users good products good services and good mindshare, we establish performance goals and organizational structures that support these strategic objectives.
Speaker Change: As a result in the first quarter more and more differentiated and good products appeared on our App and game user popularity driven by methods such as restructuring the product business unit, establishing incentive scheme that rewards the development up differentiated and good products, creating a product lifecycle accountability system, having quite sad, but is this a product sources.
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Liang Changlin: With our meat products as an example, Dingdong Cayman's six meat-based factories have driven our product innovation. After creating a brand that customers trust, we have re-created the Hehuatian and high-end black pork brand, Heishan, which focuses on healthy and delicious food. In addition, we have also started to explore the scene and launch a fresh scene of ginger bread, focusing on the health trend, At the same time, the diversified good products have also attracted good users, including Hehuatian Australian bone-in beef steak. The order of the product, AOV, has reached 139 yuan, which is nearly double the average value of a large plate.
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Liang Changlin: Our product development team also uses quality as a guide to ensure that each product is in line with Dingdong's high standards. For instance, our meat products showcase the strength of our six self-operated meat factories which drive our product innovation. After establishing the trusted Daily Fresh brand, we introduced the He Huatian brand, emphasizing health and taste, along with the premium black pig pork label, Black Diamond Family. Furthermore, we began expanding our focus on the deep processing sector within the leisure goods segment, emphasizing health trends, selecting premium raw materials, and crafting healthy, tasty daily preparations and snacks.
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Speaker Change: For instance, our meat products showcased the strength of our six Oh self operated the factories, which drive our product innovation after establishing the trusted daily fresh brand. We introduced the watch him, Brian emphasizing health N piece, along with the premium Black pig, where I can label Black Diamond family. Furthermore, we began expanding our focus on the.
Speaker Change: D processing sector with deemed them because you're good seckman, emphasizing health trends selecting premium raw materials and crafting healthy tasty, Jamie preparations and snacks for example.
Liang Changlin: For example, our He Huatian Australian grain-fed Wagyu beef cribs recently won the Golden Carrot Award during our Good Product Competition, thanks to its top-quality Australian Wagyu beef and distinctive cheese flavor. Since its early March launch, it has rapidly gained popularity among consumers, achieving sales of around 3.4 million RMB. Orders that include this item recorded an average order value of 139 RMB, outperforming the company average by nearly 100%. demonstrating how good products attract good users. Our product development team prioritizes quality and meticulously examines every stage to ensure that each product meets Dandong's high standards. In addition, our product development staff also impressed users with their professional ability and passion for commercial products.
Speaker Change: And Australian claims, but why to beef Crips recently won the Golden Carrot Award during our good product competition. Thanks to its top quality Australian Wacko deep and distinctive cheese flavor. Since early March launch. It has rapidly gained popularity among consumers achieving sells off around $3.
Speaker Change: 4 million RMB or does that include this item recorded an average order value of 139, RMB outperforming the company average by nearly a 100%.
Speaker Change: Demonstrating how good products attracted users our product development team prioritizes quality and meticulously examines every stage to ensure that each product need standalone high standards.
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Liang Changlin: For example, in our product competition, the winners of the same award were Shoushu Longxiang Laiyou Bale and Liang Xinjiang Chunxian Daoyu. Their development staff was nicknamed Bale and Daoyuge by our users on social media. Moreover, our product developers have won over users with their dedication and professionalism. For instance, our users fondly refer to our product creators as Guava Sister and Sorry Fish Brother on social media because they developed the acclaimed Tree Ripe Rich Cream Guava and Liang Xin Jiang Ren Spring Fresh Wontons and Sorry Fish and Shepherd's Purse, both of which won awards in our product competition.
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Speaker Change: Moreover, our product developers have won over usually slip their dedication and professionalism for instance, I'll use. This bluntly you referred to a product creators as guava, SR, and sorry fish brother on social media because they develop the acclaimed tweet right rich Queen guava, and dumping jumping spring fresh one times and.
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Liang Changlin: As we all know, the current economic environment is facing a big challenge. At the same time, we can see that even if the retail market suddenly falls and the competition is fierce, people may worry about whether Dingdong Cayman can continue to profit in the fierce competition, and even worry about whether Dingdong Cayman can survive. So how do we look at the current situation? Where are our advantages and disadvantages in the face of competition? It is widely acknowledged that in the present consumer environment encounters substantial challenges. The instant retail sector has become markedly saturated with competitors, resulting in heightened competition.
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Speaker Change: It is widely knowledge that in the present consumers rather than encounters substantial challenges the instant retail sector has become markedly saturated with competitors, resulting in heightened competition theres a common concern about didn't know maintaining profitability amidst fierce rivalry and they're all apprehensions regarding the sustainability of dig don't as am I.
Liang Changlin: There's a common concern about Dingdong maintaining profitability amidst fierce rivalry. And there are apprehensions regarding the sustainability of Dingdong as a liable entity facing these competition.
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Liang Changlin: What advantages and opportunities do we possess? First of all, we are very lucky that in the past competitions, we did not follow the mainstream, but stick to the essence of business. We have a clear model, and we have a strong core area. In each competition stage, we have a solid foundation. Today, we not only have a strong technical foundation, but also our cash reserves are relatively sufficient, and we continue to make profits. All this is the foundation for us to continue to win in the new competition stage. Firstly, we're fortunate that in previous rounds of competition, we did not simply follow trends, but we stayed true to the fundamentals of business, particularly developing a comprehensive model, enhancing our supply chain and focusing on key regions.
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Speaker Change: Firstly, we're fortunate that in previous rounds of competition, we do not simply follow trends, how do we stay true to the fundamental of business. It takes this lead developing a comprehensive model enhancing our supply chain and focusing on key regions well each stage of competition, we make consistent advancements delving deeply into our strategies on ensuring adequate resources.
Liang Changlin: Throughout each stage of competition, we make consistent advancements, delving deeply into our strategies and ensuring adequate resources. Today, we not only possess a robust technological accumulation and a solid foundation within our supply chain, but also our cash reserves are healthy, enabling us to sustain profitability. All of these factors have established a strong foundation for us to keep succeeding in this new phase of competition.
Speaker Change: Today, we not only possessed a robust kind of logical accumulation and a solid foundation within our supply chain, but also our cash returns to our healthy enabling us to sustain profitability. All of these factors has established a strong foundation for us to keep succeeding in this new phase of competition.
Liang Changlin: To sum up, in this year's fierce competition, we have the following core advantages. First, solid supply chain capability. Dingdong Cayman's business model is to provide healthy, high-quality food and drink for consumers. From the beginning of the business, we understand that we can't just do simple transportation, or that this is a retail channel. Instead, we need to improve the quality and efficiency of each step of the supply chain. In the production and production of food, we need to buy raw materials, logistics warehouses, and package them in batches. Food production, processing, distribution, and operation are all handed over to consumers.
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Liang Changlin: We are deeply involved in each step. We call this strategy 1 inch narrow, 1 kilometer deep. If we only look at the type of food, the scale of revenue, we may not have an advantage. However, we have a strong leading edge in the production of food. The most important thing is that we have built a strong IT system This ensures that we can continue to optimize costs and improve efficiency, and that we can replicate our manufacturing capacity into more areas and fields.
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Liang Changlin: In conclusion, in the context of today's intense competition, we have identified the following core advantages, robust supply chain capabilities. The company was founded to provide consumers with healthy and high quality food ingredients from the inception of our operations. We recognize that our role could not be limited to merely serving as an intermediary or sales channel. Rather, we had to delve deeply into each aspect of the supply chain to enhance quality and improve efficiency. We engaged comprehensively in every stage of the process, including cultivating and producing food ingredients, sourcing, logistics and warehousing, grading and packaging, food research and development, distribution, operations, and delivery to consumers.
Speaker Change: In conclusion in the context of today's intense competition, we have identified the following core advantages robust supply chain capabilities. The company was founded to provide consumers with healthy and high quality food ingredients from the inception of the whole operations, we recognize that although it could not be limited to merely serving as an intermediary or sales channel.
Speaker Change: Rather we had to dwells deeply into each aspect of the supply chain to enhance quality and improve efficiency. We engage comprehensively in every stage of the process, including cultivating and producing food ingredient sourcing logistics and warehousing grading and packaging food research and development distribution operations and delivery to consumers.
Liang Changlin: We refer to the strategic approach as narrow and deep, as narrow as an inch, yet as deep as a mile. Our operational product categories and Revenue scale may not highlight a competitive advantage, but we have a substantial lead in enhancing and strengthening the supply chain. Importantly, throughout the transformation and upgrading of our supply chain, we have established a robust IT system that enables us to continuously optimize costs, enhance efficiency, and replicate our supply chain capabilities across various regions and sectors.
Speaker Change: We referred to the strategic approach as narrow and deep as narrow as an inch yet as deep as a market and a mild our operational product categories N.
Speaker Change: Revenue scale may not highlight a competitive advantage, but we have a substantial lead in enhancing and strengthening the supply chain.
Speaker Change: Importantly throughout the transformation and upgrading of our supply chain. We have established a robust system that enables us to continuously optimize costs enhance efficiency and replicate our supply chain capabilities across various regions and sectors.
Liang Changlin: Recently, we have established a strategic partnership with the DFI Group in Hong Kong. DFI Group is the world's leading trading and retail company. In the past, they have had cooperation exchanges with many companies in China, but in the end they chose to cooperate with Dingdong Cayman. They value Dingdong's fresh power supply and IT system capabilities. This reflects Dingdong Cayman's power supply capability from one side. Recently, we have formed a strategic partnership with the DFI Group based in Hong Kong. DFI is a recognized leading global trading and retail company. While they have previously explored cooperation with numerous Chinese companies, they ultimately chose to partner with Dingdong.
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Speaker Change: Recently, we have formed a strategic partnership with the D. S. I group based in Hong Kong give I is a recognized leading global trading and retail company. While they have previously explored corporation with numerous Chinese companies. They ultimately chose to partner with being don't their decision to bid.
Liang Changlin: Their decision is driven by Dingdong's robust fresh grocery supply chain capabilities and advanced IT system capabilities. This in turn is a testament to our supply chain effectiveness. Because of the robust supply chain capabilities, we are no longer a simple retail company. Therefore, the fierce competition in the real-time retail market will not defeat us. And as time goes by, the advantages of our supply chain will become more and more obvious. This will also help us create a profit margin that far exceeds that of a real-time retail company. Due to our robust supply chain capabilities, we have evolved beyond a conventional retail company, thus positioning ourselves to withstand the intense competition within the instant retail market.
Speaker Change: If the decision is driven by Ding-dong robust fresh grocery supply chain capabilities and events I T system capabilities. This in turn is this test to me a testament to our supply chain effectiveness.
Speaker Change: No it's absolutely let me so well known for that.
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Speaker Change: He was a robust supply chain capabilities, we have evolved to be on a conventional retail company, that's positioning ourselves to withstand the intense competition with M. D. In the retail market as time progresses, the advantages of our supply chain will become increasingly apparent generating profit margins that substantially surpassed those of instant.
Liang Changlin: As time progresses, the advantages of our supply chain will become increasingly apparent, generating profit margins that substantially surpass those of instant retail enterprises.
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Liang Changlin: Second, a clear and differentiated positioning. Our Tonghang is basically positioned as a on-site supermarket, while Dingdong focuses on ingredients and food. Tonghang's strategy is basically 1km wide and 1cm shallow. Dingdong's strategy is completely different. We are 1cm narrow and 1km deep. Tonghang still relies on price to compete with competitors for traffic, while Dingdong relies on good quality and good mentality to attract users. If you seriously study the operating data of several companies, you will find that Dingdong buys at customer price, customer review rate, order sales rate, and customer review rate, and other indicators of customer quality and trustworthiness, Dingdong is ahead of Tonghang.
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Liang Changlin: People often see us as a simple technology retail company. In fact, we are a fully digitalized, all-chain, advanced supply chain company. Distinct positioning. Our competitors are mostly positioned as online supermarkets, while Dingdong focuses on quality ingredients and products. They mostly follow a strategy that is wide as a mile, yet as shallow as an inch, in contrast with our approach of being narrow as an inch, yet deep as a mile. Competitors rely on price wars for customer traffic, whereas we prioritize quality and service to attract users. Operational data shows that we outperform competitors in key of user trust and quality, such as ALV, repurchase rate, gross profit margin, and satisfaction.
Speaker Change: Distinct positioning our competitors, mostly position as online supermarket, while it didn't don't focuses on quality ingredients and products. He mostly follow a strategy that is why as a mile up yet as shallow as in each in contrast, with our approach of being narrow as an inch deep as a mile competitors rely on price War score.
Speaker Change: Customer traffic, whereas we powers highest quality and service to attract users operational data shows that we outperform competitors and key metrics of user trust and qualities such as elite repurchase we gross profit margin and satisfaction well some see us as a basic retail service, we are a fucci fresh grocery supply.
Liang Changlin: While some see us as a basic retail service, we are a full-chain fresh grocery supply chain company driven by digital technology. We have established a strategic partnership with Hong Kong's DFI. At the same time, in the international market, we are building a deep cooperation with Hong Kong's Hong Kong TV Mall, Singapore's Fairprice, Central Asia's and the Middle East's retail companies. On the one hand, we provide advanced IT capabilities to these excellent retail companies, and improve the ability of fresh industrialization. At the same time, we also bring China's beautiful food products to the overseas market.
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Liang Changlin: but a robust ecosystem. As mentioned, we have established a strategic partnership with DFI in Hong Kong. Concurrently, in the international markets, we are fostering in-depth cooperation with HKTV Mall in Hong Kong, Fairprice in Singapore, and retail groups in Central Asia and the Middle East. On one hand, we provide advanced IT capabilities to these excellent retail partners to enhance their fresh grocery supply chain efficiencies. Simultaneously, we also introduce China's high-quality ingredients and culinary offers to overseas markets.
Speaker Change: But a robust ecosystem as mentioned we have established a strategic partnership with DSI in Hong Kong concurrently in the international markets. We are forced strength in depth cooperation with HK T V mall in Hong Kong.
Speaker Change: Price in Singapore, and Vito groups in Central Asia, and the Middle East on one hand, we provide advanced capabilities to these excellent retail partners to enhance their fresh grocery supply chain efficiencies.
Speaker Change: Maybe also introduced Chinese high quality ingredients and culinary offers to overseas markets.
Speaker Change: Other point is almost looked at on a lawyer sitting yeah logical, but we are also slippy golf.
Liang Changlin: In the domestic market, we have established a strategic partnership with a large number of agricultural and food research institutions, agricultural companies, and food companies to help you grow with our retail and supply chain capabilities. In the domestic market, we have formed strategic partnerships with numerous agricultural and food research and development institutions and agricultural and food companies. We use our retail and supply chain capabilities to empower these organizations to foster and foster collective growth. In China, Gu Yu Food Group is at the forefront in the development and production of pre-made dishes, meat products, antiques, and bean products.
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Speaker Change: In the domestic market, we have formed strategic partnerships with numerous agricultural and food research and development institutions and agricultural and food companies, we use our retail and supply chain capabilities to empower these organizations to foster.
Speaker Change: And foster collective growth.
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Liang Changlin: Gu Yu's food has been exported to many channels other than Dingdong Cayman. It has maintained rapid growth in terms of sales volume and profit margin. For example, as we all know, Li Jing Ji is a world-famous food seasoning company. In the past, Li Jing Ji sold its products to retail companies. Only if we sell our pre-made dishes to Li Jing Ji, and then sell them to more overseas channels, can we sell our products to Li Jing Ji to improve our product ability and future development potential.
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Speaker Change: Internally, we have incubated Cui Foods group, a leader in China for the RMB in protection of pre prepared meals meet screens in soy products, whose products are distributed through various channels beyond ddos showing consistent rapid revenue growth and profit margins become key a world. We know the food season in company has traditionally sold to.
Liang Changlin: Internally, we have incubated Gu Yu Food Group, a leader in China for the R&D and production of pre-prepared meals, meats, grains, and soy products. Gu Yu's products are distributed through various channels beyond Dingdong, showing consistent rapid revenue growth and profit margins. Lee Kum Kee, a world-renowned food seasoning company, has traditionally sold its products to retailers. Now, we are the sole provider of pre-prepared meals to Lee Kum Kee, facilitating broader overseas distribution of our products. This collaboration highlights our product capabilities and future development potential.
Speaker Change: Products to retail list now we are the sole provider of pre prepare meals to become key facilitating broader overseas distribution of all products. This collaboration highlights our product capabilities and future development potential.
Speaker Change: So I'm wondering if that's what you need to know Matt that clients are towards you'll use I'll, let you do that you can.
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Liang Changlin: In the past eight years, most of the same start-up companies have disbanded, and similar businesses are still at a loss. Dingdong has not only come back to life, but has also made a profit for ten consecutive quarters. This is enough to show our fighting power and reputation.
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Liang Changlin: Organizational Ability and Implementation Since its inception, Dingdong has faced fierce competition from both startups and large companies. Eight years later, most rivals have vanished, while giants with similar businesses continue to incur losses. Dingdong not only survived, but also achieved profit for 10 consecutive quarters, demonstrating our competitiveness and vitality. Over the past eight years, all of our business partners have been at the forefront with us. At different stages, we have different challenges, and we have changed our strategy. With the company's strategy, we have also changed our organizational structure. Management teams can quickly adjust according to the company's requirements.
Speaker Change: Organizational ability and implementation since its inception, Ding don't have space for seniors competition from both startups and large companies. It used later most rivals have vanished, while giants with similar businesses continue to incur losses didn't do not only survives but also achieve profit for 10 consecutive quarters, demonstrating our competitiveness.
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Liang Changlin: This year, in order to further enhance our power supply, and to build a differentiated advantage, we have proposed a 4G strategy with good users, good products, good services, and good quality. In terms of strategic adjustments, we have largely adjusted the organizational structure. The core executives of the company have all taken on the tasks of commercial development and corresponding supply chain capability building. All of the core executives have a big picture and no complaints. They have taken on new responsibilities. After five months of hard work, these adjustments have come to fruition. You can see that Dingdong Cayman's unique good products are getting more and more.
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Liang Changlin: Users' satisfaction is getting higher and higher. The efficiency of the supply chain is also getting higher and higher. And with the development of time, these advantages are getting more and more obvious.
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Liang Changlin: Behind this is our strong, changeable, and resilient organizational power. It's been eight years since we started our business, and the colleagues who join us on the journey are still actively working alongside us today. Over time, we've faced various challenges that have required us to make some strategic changes. As part of evolving our strategy, we have also restructured our organization to help our management team adapt quickly to the changing needs of the business. This year, to strengthen our supply chain and create competitive advantages, we have introduced the 4G strategy, focusing on good users, good products, good services, and good mindshare.
Speaker Change: It's been eight years since we started our business and the colleagues who joined US on the journey are still actively working alongside US today every time, we face daily various challenges that have to require us to make some strategic changes as part of evolving our strategy. We have also restrict reorganization to help all management team adapt quickly to the change.
Speaker Change: He needs of the business this year to strengthen our supply chain and create competitive advantages. We have introduced the Portuguese strategy focusing on good users. Good products. Good services. Some good mindshare. This shift has led to a significant overhaul of all structures, where we are where our core executives have taken on new rules.
Liang Changlin: This shift has led to a significant overhaul of our structure, where our core executives have taken on new roles in product development and improving our supply chain capabilities. Everyone on the team is focusing on the big picture, embracing the new responsibilities with enthusiasm. After five months of hard work, we've begun to see some great results. Ding Dong is rolling out more unique and high-quality products. Our users are happier than before, and our supply chain efficiency is steadily improving. As we continue moving forward, these benefits are becoming even more obvious. This really highlights our strong organizational ability to adapt and bounce back in the face of adversity.
Speaker Change: Part of the Parliament and improving our supply chain capabilities, everyone. On the team is focusing on the big picture embracing the new responsibilities with enthusiasm after five months of hardware cause it's begun to see what's become let's think on to see some great results Ding-dong is rolling out more unique and high quality products. Our users are happy.
Speaker Change: Pierre than before and our supply chain efficiency is steadily improving as we continue moving forward. These benefits are becoming even more obvious just really highlights our strong organizational ability to adapt and bounce back in the face of adversity.
Liang Changlin: Because of the different positioning of Dingdong Cayman and our unique advantages, we are confident that we will be undefeated in all kinds of competitions. And with the development of time, our advantages are getting more and more obvious. Especially with the gradual preparation of this strategic adjustment, we will quickly get out of the shock zone brought by the change. Soon there will be a large increase in sales scale, more innovation in business, and an improvement in profit margin. Due to Dingdong's distinct positioning and unique advantages, we're confident that we can remain competitive in various competitive landscapes.
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Speaker Change: Did you change those distinct positioning and unique vantages were confident that we can remain competitive in various competitive landscape.
Liang Changlin: Over time, our advantages will become increasingly evident. Particularly as this strategic adjustment is progressively implemented, we anticipate a swift recovery from the short-term challenges induced by the transition, leading to a substantial enhancement in sales volume, increased innovation within our business practices, and further optimization of our profit margins.
Speaker Change: Our vintages will become increasingly evident, particularly as this strategic adjustment is progressing progressively implement it we anticipate a swift recovery from the short term challenges induced by the transition leading to a substantial enhancement in south volume increased innovation within our business practices and optimization of our profit.
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Liang Changlin: Finally, I would like to update everyone on the outlook for 2025 Q2. We expect that in 2025 Q2, we will be able to continue to maintain the same scale of growth and continue to achieve non-capital gain. We are still in the transitional period, but this period will pass quickly. By the end of this year, the advantages Dingdong has bought will be very obvious. We expect that by that time, the scale of performance and profit will increase significantly.
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Speaker Change: The way without loosened up with the financials as usual.
Liang Changlin: This concludes my speech. Thank you everyone.
Nicky Zheng: Next, I would like to invite CFO Wang Song to introduce the financial situation of the company.
Speaker Change: Okay.
Speaker Change: So that's really our focus.
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Speaker Change: Finally, I'll provide an update on the outlook for Q2 2025, we anticipate to maintain a year on year growth in scale and achieving non-GAAP profitability for the second quarter of 2025, we're still in a transitional phase of transformation, but this period will pass quickly by the end of the year Didnt dose advantages will be distinctly evident we expect.
Song Wang: Finally, I'll provide an update on the outlook for Q2 2025. We anticipate maintaining year-on-year growth in scale and achieving non-gap profitability for the second quarter of 2025. We're still in the transitional phase of transformation, but this period will pass quickly.
Song Wang: By the end of the year, Dingdong's advantages will be distinctly evident. We expect significant growth in both performance scale and profit margin by then.
Speaker Change: This growth in both performance scale and profit margin by Dan. This wraps up my speech. Thank you and now I would like to invite our CFO wants them to discuss the company's financial performance.
Song Wang: This wraps up my speech.
Song Wang: Thank you.
Song Wang: Now I would like to invite our CFO, Wang Song, to discuss the company's financial performance.
Song Wang: Thank you, Mr. Liang. Hello, everyone.
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Song Wang: Before I introduce our financial situation to you, I would like to explain that all of our numbers are in the RMB unit. Thank you, Mr. Liang, and hello, everyone. Before I review our financial performance for the first quarter, please note that all of our figures are in RMB. In 2025 QE, Dingdong Cayman will receive 54.8 billion yuan in revenue and a 9.1% share growth. Five consecutive quarters have seen a share growth of 0.3 billion yuan, 8 million yuan, and 0.85 billion yuan in operating cash inflows. The company will continue to maintain positive profit and positive operating cash inflows.
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Speaker Change: Thank you Mr. Wang and Hello, everyone before I review, our financial performance for the quarter for the first quarter. Please note that all figures are in RMB.
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Song Wang: After the QE Mall Special Exhibition Group's budget, our actual capital budget is 28.9 billion yuan and will continue to increase. This year, we will firmly stick to the value proposition of one-ton, one-kilometer-deep. We will continue to grow and satisfy consumers with good products and good services. We will walk out of our own differentiated path in the construction of quality-stable and supply-stable capacity. In the first quarter of 2025, Dingdong reported a revenue of 5.48 billion RMB, reflecting a 9.1% year-over-year increase and marking five consecutive quarters of positive growth. Non-Gap Net Profit was 30 million RMB and Gap Net Profit was 8 million RMB, and Operating Net Cash Inflow reached 85 million RMB.
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In the first quarter of 2025, Ding-dong reported revenue of $5 8 billion I'll be reflecting a 19, 1% year over year increase and marking five consecutive quarters of positive growth non-GAAP net profit was 30 million RMB and GAAP net profit was 8 million RMB in operating net cash inflow reached 85.
Speaker Change: Millionaire and beats the company continued to demonstrate positive profitability alongside positive operating net cash inflow by the end of Q1 after accounting for short term loans, our actual funds amounted to 2.89 billion RMB, indicating a continued net increase if you were committed to executing our narrow yet deep.
Song Wang: The company continued to demonstrate positive profitability alongside positive Operating Net Cash Inflow. By the end of Q1, after accounting for short-term loans, our actual funds amounted to 2.89 billion RMB, indicating a continuous net increase. This year, we're committed to executing our narrow yet deep value proposition, intensifying our efforts to satisfy consumers through quality products and services while establishing a unique path focused on quality, stability, and consistent supply capability.
Speaker Change: Value proposition intensifying, our efforts to satisfy consumers through quality products and services, while establishing a unique path focused on quality ability and consistent supply capabilities.
Song Wang: Next, let's take a look at QE's financial situation. QED revenue is 54.8 billion yuan, an increase of 9.1%, GNV is 59.6 billion yuan, an increase of 7.9%, and the daily GNV growth rate is 9.1%. We will firmly use good products to attract more consumers, and improve user connectivity. QE, the conversion rate of lower-end users, has reached a new high of 64% in recent years, an increase of 4.8%, and the number of lower-end users has increased by 10.3%. QE, the conversion rate of lower-end users, has increased by 12.6%. At the same time, in Wenzhou, Huzhou, Nantong, Jinhua and other cities, we continue to maintain a high growth rate, and the conversion rate is more than 50%.
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Song Wang: In addition, our Tupi business is developing steadily, and the conversion rate has reached 64.6%, and the revenue ratio has increased by 1.4%.
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Song Wang: Next, we'll analyze the first quarter's financial performance. Revenue reached 5.48 billion RMB, a 9.1% year-on-year growth. GMV stood at 5.96 billion RMB, a 7.9% increase from the previous year. While the average daily GMV rose by 9.1%, we leveraged our products to attract more consumers and boost user engagement. The conversion rate of contacting users in Q1 reached a record high in recent years, averaging 64%, an increase of 4.8 percentage points year-on-year. The number of monthly transacting users rose by 10.3% year-on-year, and monthly transacting members grew by 12.6% year-on-year. Additionally, cities such as Wenzhou, Huzhou, Nantong, and Xinhua demonstrated a strong growth momentum, achieving over 50% year-on-year growth.
Speaker Change: Next we'll annualize the first quarter's financial performance revenue reached 5.48 billion RMB 19, 1% year on year growth G. M. B stood at $5 96 billion RMB seven 9% increase from the previous year, while the average daily G. N V rose by nine 1%, we leverage all products to attract more.
Speaker Change: Consumers and boost user engagement the conversion rate of transacting users in Q1 reached a record high in recent years, averaging 64% an increase of 4.8 percentage points year on year. The number of monthly transacting users rose by 10, 3% year on year and monthly transacting members grew by 12, 6% year on year addition.
Speaker Change: Holly cities, such as Wendell, who don't mental and Juba demonstrated the strong growth momentum achieving over 50% year on year growth for Tomorrow I'll, let you be business has shown solid growth boasting a revenue increase of 64, 6% year on year and a rise in revenue share off one four percentage points year on year.
Song Wang: Furthermore, our QB business has shown solid growth, boasting a revenue increase of 64.6% year-on-year and a rise in revenue share of 1.4 percentage points year-on-year. In addition, thanks to our ability to predict and operate, we can more accurately match the needs of users, improve the efficiency of product production, and reduce the ability to balance The overall growth rate is 11.7 days on average and the efficiency has increased by 2.8% At the same time, the loss rate has decreased by 1.8% Gross profit margin was 29.9%, down 0.7 percentage points from last year. This decline in gross profit largely stems from our increased investment in high-quality products, the introduction of more quality items, and our commitment to removing less favored products.
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John: Gross profit margin was 29, 9% down 0.7 percentage points from last year. This decline in gross profit largely stems from our increased increasing our investment in high quality products. The introduction of more quality items and I'll come inventory moving less favorite products. Additionally, consumers benefiting from our dedicated efforts and optimize.
Song Wang: Additionally, consumers benefited from our dedicated efforts in optimizing the supply chain. Moving forward, we'll persist in nurturing quality products, focus on in-depth research with the Krofman dedication, and strengthen our core competitive edge. Moreover, by utilizing our intelligent forecasting and operational scheduling capabilities, we aim to better meet user needs and improve the efficiency of our inventory turnover and defect management. The average turnover days improved to 11.7 days, a 2.8% increase in efficiency year-on-year. While the loss rate remained stable, the out-of-stock rate for leading products decreased by 1.8 percentage points compared to last year. QE is 22.9% in New York and 0.1% in Tongpi The increase in QE is mainly due to the investment of the company in overseas trade The ratio of 34% is about 0.4% The efficiency of domestic pre-industrial business is still increasing QE's warehouse-to-daily unit volume has increased by 2.6% in Tongpi Without considering the impact of the new factory in 20 years The warehouse-to-daily unit volume of the old factory has increased by 5.3% in Tongpi At the same time, we continue to provide clean and non-clogging services for users in Zhejiang Through algorithms and supply chain operations, we can provide good services to our users QE's warehouse-to-daily unit volume has decreased by 5% in Tongpi and reached 34% in Zhejiang The fulfilling cost rate rose to 22.9 percent, up 0.1 percentage points from the previous year.
John: The supply chain moving forward will persist in nurturing quality products focus on in depth research with the craftsman dedication and strengthen our core competitive edge. Moreover, utilizing how intelligence forecasting an operational scheduling capabilities, we aim to better meet user needs and improve the efficiency of our inventory turnover and decide to manage.
John: When the average turnover days improved to 11.7 days, a 2.8% increase in efficiency year on year, while the loss rate remains stable the out of stock rate for heating products decreased by one eight percentage points compared to last year.
Speaker Change: So that's the only way back and as Arthur identical totally linear you go back and get maybe that'd be all yours.
Speaker Change: So to answer the questions that I highlighted was I'm a total so I thought the beauty there indefinitely. The Bakken dip College I will tell you what I show you the Atlanta I forgot what you said can we told you that region policy sometimes okay.
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Speaker Change: Shanghai Tang Potboilers shop, La County, as you talk to them about things over there.
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Speaker Change: Well you have without I hope can we take it out of California saw the puzzle.
Speaker Change: No.
Speaker Change: The fulfillment cost rate rose to 22, 9% up 0.1 percentage points from the previous year. This increase primarily stems from the company's overseas investment representing about 0.4% of revenue. Meanwhile, the domestic one like with human stations further enhance their efficiency with a two 6% year on year rise in evergreen or.
Song Wang: This increase primarily stems from the company's overseas investment, representing about 0.4 percent of revenue. Meanwhile, the domestic frontline fulfillment stations further enhanced their efficiency, with a 2.6 percent year-on-year rise in average daily order volume per station for Q1. If we exclude the efforts, the effect of newly added stations since 2024, the average daily order volume at established stations saw a year-on-year increase of 5.3 percent. During the Lunar New Year in 2025, we also provided users with our non-closing services, leveraging algorithms and operational capabilities to deliver quality services. In Q1, the fulfillment time for ASAP orders was reduced by five minutes year-on-year, bringing it down to 34 minutes.
Speaker Change: I'll even presentation for Q1, if we exclude the efforts.
Speaker Change: Effect of newly added stations it seems 'twenty 'twenty four the ever changing order volume and established stations saw a year on year increase of five 3% during the lunar new year. In 2025. We also provided US this with all the non clothing services leveraging out with them and operational capabilities to deliver quality services.
Speaker Change: One the fulfillment times, where aesop odors was reduced by five minutes year on year, bringing it down to 34 minutes.
Speaker Change: Could we do it yourself or you all your life happens all 20, Youll holiday, either but I can get one of them quite tissue job out there, okay, I shouldn't but how about on the total little bolt audience already.
Song Wang: QV's market share is 2%, which is 0.2% better than before. In the future, we will continue to increase our investment in the distribution of good products. We will continue to improve the flow source of good products and increase the efficiency of distribution. The sales and marketing expense rate was 2%, a decrease of 0.2 percentage points year-on-year. Moving forward, we aim to boost our investment in customer mindshare by utilizing high-quality products to drive traffic and improve delivery conversion efficiency. QE management and R&D costs are 5.7% and 0.2% lower It mainly comes from the scale effect We will continue to invest in food R&D, agricultural technology and technical data algorithms as before We will not only improve the ability of product development and the digitalization of the whole chain, but also improve the efficiency of the supply chain Management and R&D expenses represented 5.7% of revenue, a 0.2 percentage point decrease year-over-year, primarily due to economies of scale.
Speaker Change: Tissue, which is a profile as a placeholder.
Speaker Change: The sales and marketing expense rate was 2% a decrease of 0.2 percentage points year on year moving forward, we aim to boost our investment in customer mindshare by utilizing high quality products to drive traffic and improve delivery kind of our conversion efficiency.
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Speaker Change: You know what you want the best opinions about Nokia Koji Oh, Jesus, what's your thoughts on that especially with Jason Yeah, I thought well don't you said I'm talking kind of on that Lee.
Speaker Change: There's all sorts of autonomy.
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Speaker Change: Management and R&D expenses represented five 7% of revenue is 0.2 percentage points decrease year over year, primarily due to economies of scale, we're committed to continuing our investment in food R&D agricultural technologies data out with them, which will enhance our product development and forging digital capabilities, thereby boosting supply chain.
Song Wang: We're committed to continuing our investment in food R&D, agricultural technology, and data algorithms, which will enhance our product development and full-chain digital capabilities, thereby boosting supply chain efficiency. In Q1 2025, we achieved a net profit of 0.6% and a net profit of 0.3 billion yuan. At the same time, in this quarter, we also achieved a net profit of 0.1% and a net profit of 0.1 billion yuan. Non-Gap Net Profit Margin was 0.6%, resulting in a net profit of RMB 30 million. We also achieved a Gap Net Profit Margin of 0.1%. In addition to the QE mode, cash and cash-in addition, the turnover of short-term cash and short-term investment is 4.2 billion yuan.
Speaker Change: Efficiency.
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Speaker Change: non-GAAP net profit margin was 0.6%, resulting in net profit of 30 million RMB. We also achieved a GAAP net profit margin of 0.1 per cent.
Speaker Change: It is a cream all changing Jewish agenda, Joe Gotcha.
Speaker Change: Got you talked about you always that's the idea until either on the tissue youll oxygen Charlotte how long in surgical.
Song Wang: We continue to optimize the efficiency and financing structure of funds. After the QE mode, our actual capital turnover is 2.8 billion yuan. As of the end of Q1, our cash and cash equivalents along with our short-term restricted funds and investments totaled 4.29 billion RMB. We remain focused on optimizing capital use and our financing structure. After accounting for short-term loans, our net balance of funds stands at 2.89 billion RMB.
Speaker Change: Oh, well if that's what you can say what the January always asked about the NGL event.
Speaker Change: And so at the end of Q1, our cash and cash equivalents, along with all short term restricted funds and investments totaled 4.29 billion on a beach, we remain focused on optimizing capital use and all financing structure. After accounting for short term loans. Our net violins are fun stents at 2.89 billion RMB.
Speaker Change: Well, let you get a buyer in adults so I'll, let up shy man call your jello to behind you at all.
Song Wang: That's the end of our speech today.
Operator: Now we can move on to the Q&A session.
Operator: This concludes my prepared remarks.
Speaker Change: This concludes my prepared remarks, operator, we can now start the Q&A session.
Operator: Operator, we can now start the Q&A session.
Speaker Change: We will now begin the question and answer session to ask a question.
Operator: We will now begin the question and answer session.
Operator: To ask a question, you may press star then 1 on your telephone keypad.
Speaker Change: Press Star then one.
Speaker Change: On your telephone keypad.
Operator: If you are using a speakerphone, please pick up your handset before pressing the keys.
Speaker Change: If you were using a speakerphone please pick up your handset before pressing the keys.
Operator: If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2.
Speaker Change: Any time your question has been addressed and you would like to withdraw your question. Please press Star then two.
Operator: When asking a question, please state it in Chinese first, and then repeat it in English for the convenience of everyone on the call.
Speaker Change: When asking a question. Please state it in Chinese first and then repeat it in English for the convenience of everyone on the call.
Operator: At this time, we will pause momentarily to assemble our roster.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: The first question comes from Thomas Chong with Jefferies. Please go ahead.
Thomas Chong: The first question comes from Thomas Chong with Jeffrey. Please go ahead. Good evening. Thank you for introducing my question. Congratulations to the company for continuing to achieve excellent results in this quarter. In your two speeches, you have repeatedly emphasized the CG strategy of Dingdong Grocery. Can you share with us the strategy? In order to implement the 4G strategy, Dingdong Grocery has made some adjustments. In terms of details, what benefits will the CG strategy bring? Thanks management for taking my questions and congratulations on a solid set of results. In the speech, Mr. Liang emphasized Dingdong's 4G strategy multiple times.
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Speaker Change: So I think it's about antibodies in Baltic and my questions and congratulations on a solid start sort themselves out in the speech of Mr. Mann, emphasizing those faulty strategy multiple times could you elaborate about the party's strategy what changes have been made.
Thomas Chong: Can you elaborate about the 4G strategy? What changes has Dingdong made to execute the strategy? Over the long term, what advantages will the 4G strategy provide to us? Thank you.
Speaker Change: This strategy well open the longest but what I wanted to go through before you got to keep a whiteboard. Thank you.
Liang Changlin: Okay, thank you for your question. As we all know, Dingdong Cayman is doing well in 2024. But our team is always thinking about the end of 2024. At the end of 2024, at the strategic meeting, the management team seriously analyzed the trend of consumers, the competition that the company is facing, and the advantages of Dingdong Cayman. We realized that if we want to build a real competitive advantage and get a long-term development opportunity, we have to compete with our current peers. On the other hand, we have to further develop our advantages in the industry. Thank you for your question.
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Campbell Bower: Campbell Bower mindset whenever you wish it to my colleague for life.
Campbell Bower: Thank you for your question as Youre aware, we deliver a strong performance in 2020 four Nevertheless, our team remains cautious and all strategic meeting at the end of 'twenty 'twenty four we closely examined the consumer trends competition. Indeed don't unique strengths, we understand that to create genuine competitive barriers unsecured long term growth opportunities we.
Liang Changlin: As you are aware, we delivered a strong performance in 2024. Nevertheless, our team remains cautious. At our strategic meeting at the end of 2024, we closely examined consumer trends, competition, and Dingdong's unique strengths. We understand that to create genuine competitive barriers and secure long-term growth opportunities, we must differentiate our approach compared to our current competitors. Simultaneously, we need to maximize our supply chain advantage. Let's take a look at the current competitive situation. On the retail side, people often say, it's easy to win, it's easy to lose. In today's era where supply is sufficient, it's no longer an advantage to have more.
Campbell Bower: Must differentiate our approach compared to our current competitors simultaneously, we need to maximize all supply chain advantages.
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Liang Changlin: The speed of delivery in 30 minutes has become the standard in the industry. It's no longer an advantage of competition. Our peers are basically still doing their best to win. This is an advantage. Dingdong Cayman is different from everyone else. We no longer pursue winning too much. We have a good strategy. Specifically, good users, good products, good service, good quality. This is our internal 4G strategy. Let's examine the current competitive landscape. We tell customers typically want more, faster, better, and cheaper. However, in today's market, where supply is ample, more no longer holds an advantage. An industry standard of 30-minute delivery has erased the competitive edge of speed.
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Speaker Change: Let's examine the current competitive landscape, we tell customers typically want more faster better and cheaper however in todays market, where supply is ample more no longer holds that advantage and industry standards asked 30 minute delivery has raised the competitive edge of speech. Many competitors are still fixating on cheaper thing don't taste.
Liang Changlin: Many competitors are still fixating on cheaper. Dingdong takes a different approach. We don't excessively pursue cheaper anymore. Instead, we have introduced what we believe is a better strategy. This encompasses good users, good products, good services, and good mindshare, which we refer to internally as the 4G strategy. The 4G strategy is one of our initiatives. We started this venture to provide healthy and safe food to our children. We have seen many changes along the way. But we have never changed this initiative. On the other hand, good quality is also the core need of our food industry.
Speaker Change: A different approach, we don't excessively pursue cheaper anymore. Instead, we have introduced what we believe is a better strategy. This incapacity. Good users good products. Good service isn't good mindshare, which we referred to internally as the Portuguese strategy.
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Liang Changlin: You are what you eat. Good food is the need of children's growth. It is the need of adults' mental and physical development. It is the need of the elderly's long-term health. It is even the most fundamental foundation of a nation's strong development. However, excessive demand for low-priced food has damaged the quality of our food. It has also destroyed the health development of the whole food industry. On the other hand, looking at Dingdong's real advantages, we have long-term deepening our industry. Only a company like us can truly produce quality food. This strategy aligns with our original intention when we started the business.
Speaker Change: Sure you are what you eat through the hall, so high the shipyard turned out as she also children.
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Speaker Change: This strategy aligns with our original intention when we started the business right from the beginning our goal has been to provide children with healthy and safe food, although circumstances have changed overtime. Our commitment to this principle remains steadfast. Furthermore, good quality of central Chinas food industry. The thing you are what you eat underscores the importance.
Liang Changlin: Right from the beginning, our goal has been to provide children with healthy and safe food. Although circumstances have changed over time, our commitment to this principle remains steadfast. Furthermore, good quality is central to the food industry. The saying, you are what you eat, underscores the importance of healthy eating for children's growth, balanced development for adults, and overall health and longevity for the elderly. It can even be said that quality food is essential for a nation's strong development. However, you get what you pay for, reminds us that an excessive focus on low prices can compromise product quality and hinder healthy industry growth.
Speaker Change: Off of healthy eating for children Squoze balanced development for adults and overall health and longevity for the elderly can even be sat that quality food is essential for our nation's strong development. However, you get what you pay for it reminds us that and access a focus on low prices can compromise part of quality and hinder healthy industry growth.
Liang Changlin: However, when we consider our strengths, our deep engagement and long-term investment in the supply chain stand out. Only companies like ours with deep roots and dedication in this area can deliver on the promise of good quality. In addition, such organizational framework adjustment also allows every intelligent department in the company to really serve good products and continuously improve efficiency to create value in the whole process of good product development. Achieving cheaper is straightforward. If you maintain low prices, you can draw in consumers and boost sales. However, striving for better is far more challenging. It involves doing 10,000 small things right and demands a systematic long-term approach.
Speaker Change: When we consider our strength, our deep engagement and long term investment in the supply chain stand out only companies like ours with deep roots and dedication in this area can deliver on the promise of good quality.
Speaker Change: So Joe Yes, it's D. J C. Shelby two children you guys sort of agree we're not at all so you on your job she.
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Speaker Change: So I'll tell you why the whole shocking to me what drove us to do that without it you don't show so that'll be good suitable but don't intend to.
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Speaker Change: Achieving cheaper is straightforward if you maintain low prices you can drawing consumers and do cells. However, striving for better it's far more challenging and involve doing 10000 small things right and demands a systematic long time long term approach to facility as we have repeatedly held internal brainstorming sessions to develop a unified understanding.
Liang Changlin: To facilitate this, we have repeatedly held internal brainstorming sessions to develop a unified understanding. We have adjusted our performance metrics and for a period of time, we're focusing solely on the ratio of quality products and satisfied users, monitoring user repurchase rates, and paying attention to negative reviews. Instead of GMV and profit margin metrics, we also reshape our fundamental challenges to internal structure. We dismantle the original product development center and integrate product development, product operation, and quality control teams into independent business units, each led by a core executive. This setup empowers the product development team to abandon conventional thinking and focus on creating distinctive quality products.
Speaker Change: We have adjusted our performance metrics and for a period of time, we're focusing solely on the ratio of quality products and satisfy users' monitoring user repurchase rates and paying attention to negative reviews. Instead of G. M. B and profit margin metrics. We also reshape all fundamental challenges to internal structure.
Speaker Change: We dismantled the original part of development center, and integrate our product development product operation and quality control teams to into independent business units. Each led by a court scientists. This setup empowers the product development team to abandon conventional thinking and focus on creating distinctive quality products. Additionally, this organization.
Liang Changlin: Additionally, this organizational adjustment fosters a genuine commitment across the company to fully understand and enhance products, leveraging the supply chain in product development and create unique quality offerings. Furthermore, this restructuring enables each functional department to effectively support quality products, continuously boost efficiency, and create value throughout the product development process. This kind of change will have a normal period, forcing all of us to get out of the comfort zone and will also affect the rapid growth of scale and profit margin in a short period of time. But we really have to do well, we have to get out of this comfort zone, and we have to endure this normal period.
Speaker Change: Adjustment fosters a genuine commitment across the company to fully understand it enhanced products leveraging the supply chain in product development and create unique quality offerings for the more this restructuring enables each.
Speaker Change: Functional department to effectively support quality products continuously boost efficiency and create value throughout the product development process.
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Liang Changlin: Although it is only a short period of five months, but we have seen that our good products are getting higher and higher, good users are getting higher and higher, and users' revenues are also growing. Users' good reviews, whether on Dingdong app or social media, are getting more and more. Such a transition will entail a challenging period that compels us all to leave our comfort zones, impacting our rapid scaling and profit margins in the near term. However, to truly succeed, we must embrace a disruption and persevere through the tough times. Even though just five months have passed, we have noted an uptick in the proportion of quality products, an increase in the number of good users, a rise in the user repurchase rate, and more positive feedback on the Dingdong app and social media.
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Speaker Change: But the transition will Intel a challenging period that compels us all to leave our comfort zones impacting our rapid scaling and profit margins in the near term however to truly succeed we must embrace disruption and cause severe through the tough times, even though just five months have passed we have noticed an uptick in the proportion of quality product.
Speaker Change: An increase in the number of good users a rise in the use of repurchase rate and more positive feedback on a ding don't app and social media.
Speaker Change: Good <expletive> out unusual.
Liang Changlin: It's not the same as other retail changes from the inside out. We are a change from the inside out. We don't pay too much attention to the outside. And the effect won't be very fast. But it will be a continuous improvement. From the basic internal and external improvement, after a period of time, there will be a big fundamental change. It will also make the scale increase significantly, and the profitability will be further optimized and improved. It will also build a real, non-negotiable core competitiveness.
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Speaker Change: But there'll be a lot more time within Dod even really chambal, you'll watch you said, if we see any it didn't do that put too much into the opinion didn't really cause yet.
Liang Changlin: Thank you. Unlike typical retail transformation that are often initiated externally, our approach is an inside-out transformation. While this method may not be widely noticed externally and results may take time, it promises ongoing fundamental improvement. Over time, substantial and transformative changes will occur, significantly enhancing our scale, optimizing profit margins, and fostering genuine core competitiveness that withstand competition. Thank you.
Speaker Change: Unlike typical retail transformation that are often initiate it externally our approach is an inside out transformation. While this method may not be widely noticed externally and results may take time, it promises ongoing fundamental improvement overtime substantial and transformative changes will occur significantly enhancing our scale optimized.
Speaker Change: Profit margins enforce shrink genuine core competitiveness that withstand competition. Thank you.
Speaker Change: Okay.
Speaker Change: The next question comes from young, but I would see OCC. Please go ahead.
Yang Bai: The next question comes from Yang Bai with CIC. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Like I said when it comes to digital with its you are right.
Speaker Change: He goes I don't even need you know the neighbors, who had the shipping time no clue.
Yang Bai: 感谢管理层接受我的提问,梁总刚才的这个讲话里呢也提到了内部孵化的国语食品集团,能否介绍一下相关的这个业务情况呢? Ms. Liang also talked about the internally incubated guoyu food group in his speech. Can you give an overview of the current business situation? Thank you. Okay, thank you for your question.
Speaker Change: And when the G E.
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Speaker Change: Most of the talk about so the internally and could we see the great food group in his speech and Yoki.
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Speaker Change: Current business situation. Thank you.
Speaker Change: Oh I see I mean, the Q out what are you going to do is they have a wonderful life without davinci.
Nicky Zheng: I would like to ask the company's CFO, Wang Song, to answer this question. Thank you for your question. Our CFO is better equipped to address this matter. Thank you, Mr. Liang.
Speaker Change: Thank you for your question, our CFO is better equipped to address this matter.
Speaker Change: Paula shared uncle, Okay talk where at that time, we'll give it one more time, so I'll get hit at all by itself.
Song Wang: I'd like to start with the four aspects of Gu Yu's strategic positioning, scale growth, product manufacturing, and export progress. First, Gu Yu is a strategic business department that was re-established in early 2020, which marks the transition from a food supply chain enterprise to a full-chain layout. Through our self-built factories, we have realized a vertical integration of the supply chain, covering from the development of products, raw materials, sources, joint cultivation and planting, production and processing, to the closure of mid-term sales, and strengthening our control of product quality, cost, and time. Currently, we have formed three major business departments in meat, jade vegetables, and grains, and built more than 540,000 square meters of 12 self-sustaining factories in six cities.
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Song Wang: With an automated production flow line, we strictly control food safety, and improve the flavor and quality of products. In the future, we plan to turn Gu Yu into a benchmark for Dingdong and even the industry, to become a consumer and provide more beautiful products for consumers. Thank you, Mr. Liang. I can introduce Gu Yu through four key aspects, strategic positioning, scale growth, product development, and export progress. First, Gu Yu is the strategic business unit that the company began to incubate in early 2020. marking our transformation into a food supply chain company with a comprehensive industry layout.
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Speaker Change: Thank you Mr. Now I can introduce squeezed through four key aspect strategically positioning scale growth product development and expert progress for squeeze it's a strategic business unit that the company began to incubate in early 2020.
Speaker Change: Marking our transformation into a food supply chain company with a comprehensive industry layout, we achieve vertical integration of the supply chain do self build factories income passing a close loop from part of research and development joint farming and planting Oh raw materials and ingredients production and processing two terminals house, thereby strengthening.
Song Wang: We achieved vertical integration of the supply chain through self-built factories, encompassing a closed loop from product research and development, joint farming and planting of raw materials and ingredients, production and processing to terminal cells, thereby strengthening our control over product quality, cost and timeliness. Currently, we have established three major business units, meat, pre-prepared meals and grains, and have built 12 self-operated factories spanning more than 54,000 square meters across six cities, equipped with automated production lines that strictly control food safety while enhancing the flavor and quality of products. In the future, we plan to position Guoyu as a benchmark for Dingdong and even the industry, providing consumers with even more exceptional products.
Speaker Change: Our control over quarter product quality cost and timeliness. Currently we have established three major business units meet pre prepared meals and Greens and have built 12 self operated factory spending more than 54000 square meters across six cities, except with automated production lines that strictly control food safe.
Speaker Change: While enhancing the flavor and quality of products in the future we plan to position Cui as a benchmark for it until and even the industry, providing consumers with even more exceptional products.
Speaker Change: Yeah of course, when you have I forget sometimes juggling a neat tens auction more grip on an engine cobalt battens assistant pioneer who he was talking about then goes on to Jeremy that we'll see you at nampa buttons on JD and vice versa. So I think those on the shelf.
Song Wang: Second, over the past five years, Guoyu's production and processing capacity has grown rapidly. The annual growth rate of its planned capacity has broken 40%. In 2020, Guoyu's G&V products in Dingdong were about 5 billion yuan, and their annual growth rate was nearly 200%. The sales volume in Dingdong accounted for about 20%. At the same time, we officially started our export sales in 2023. In just two years, our export sales revenue in 2024 was about 300 million yuan, and the growth rate was about 150%. In 2025, our Q1 revenue was more than 100 million yuan, and the growth rate was nearly 120%.
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Song Wang: We expect our export sales revenue to reach 600 million yuan this year. In 2027, our export sales revenue in Guoyu will account for more than 50%. Second, over the past five years, GUI's production and processing capacity has grown rapidly, with an average annual growth rate of over 40%. In 2024, the GMV of GUI products on Dingdong was approximately 5 billion RMB, with a CAGR of nearly 200%. Accounting for about 20% of sales on Dingdong, we officially began exporting in 2023. In just two years, export revenues in 2024 reached about 300 million RMB, a year-on-year growth rate of about 150%.
Speaker Change: Hi, Vishal, we had a total tonnage I'll talk about weapons Elisa.
Speaker Change: Second over the past five years, we use production and processing capacity is growing rapidly with an average annual growth rate of over 40% in 'twenty 'twenty four D. G. M V. S. Cui products onto don't was approximately 5 billion RMB, but a CAGR of nearly 200% accounting for about 20% of cells are Andi don't we officially began X.
Speaker Change: Sporting in 2020 three in just two years extra revenues in 2024. It reached about 200 million RMB a year on year growth rate of about 150 per cent. The revenue in Q1 of 2025, surpass 100 million arent beach year on year growth rate of nearly 120%, we anticipate that our export revenues this year will be.
Song Wang: The revenue in Q1 of 2025 surpassed 100 million RMB, a year-on-year growth rate of nearly 120%. We anticipate that export revenues this year will reach 600 million RMB and expect that by 2027, exports will account for more than 50% of GUI's revenues.
Speaker Change: 600 million RMB and expect that by 'twenty 'twenty seven exports will account for more than 50% of <unk> revenues.
Speaker Change: Yeah, well I mean, clearly you don't.
Song Wang: The third, we use quality as the core. We use quality as the core to measure our product ability. Currently, we have built product certificates in meat, bone and fish dishes. Third, we prioritize quality as our core value and meticulously refine our product development capabilities. Currently, we have established a product mix with distinctive features in meat, grains, and pre-prepared meals. We currently have six meat-related factories and can produce 500,000 boxes a day We are the country's highest comprehensive production company As I mentioned earlier, our products include pork, lamb, cut meat and meat products Among them, our Heizan Sijia brand focuses on high-end black pork and collaborates with high-end food to set up a black pig breeding base Introduce native breeding, select high-quality breeds and adopt the technology of early breeding and slow breeding for 300 days In 2020, Heizan Sijia received about 200 million yuan and increased by 30% annually At the same time, Heizan Sijia's offline special sales store will also increase its power-saving strength In 2025, our plan will increase the existing 5 Heizan Sijia special sales stores to 15 to 20 We currently operate six meat factories with a daily cutting capacity of 500,000 boxes, making us the highest comprehensive production capacity in the country.
Speaker Change: Jos you can say that I'm talking to meet what's your outlook.
Speaker Change: How does that go down a lot because you talked about that time country.
Speaker Change: Third we prioritize quality is our core value and meticulously refine our product development capabilities.
Speaker Change: Currently we have established a part of mix with distinctive features image claims and pre preparing meals.
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Speaker Change: We currently operate six meat factories with a diamond cutting with a daily cutting capacity of 500000 boxes, making us the highest comprehensive protection capacity in the country.
Song Wang: As mentioned earlier, the products range from pork, beef, raw cut beef, raw cut mutton, to various meat products. Among them, our Black Diamond Family brand focuses on high-end black pork. We have established a black pig farming base in partnership with Kaohsiung Food, engaging ourselves in source breeding, selecting high-quality varieties, and employing coarse grains for 300 days low raising period. In 2024, the GMV of Black Diamond Family reached about 200 million RMB, with an annual growth rate of 30%. Meanwhile, the offline store of Black Diamond Family will also ramp up expansion. By 2025, we plan to increase the existing five Black Diamond Family stores to between 15 and 20.
Speaker Change: As mentioned earlier the products range from pork beef rocket beef, a rocket mutton see various niche products among them our black Diamond family brands focuses on high end Black point, we have established a black pay conforming base in partnership with our accounting food engaging ourselves in source breathing selecting high quality varieties and employee.
Speaker Change: Of course, we Queens for 300 days no raising periods in 2020 for the G. M V off Black Diamond family reached about 200 million RMB with an annual growth rate of 30%. Meanwhile, the offline store off Black Diamond suddenly you will also ramp up expansion by 2025, we plan to increase the existing five.
Speaker Change: Black Diamond family starts to between 15 and 20.
Song Wang: We currently have three factories in Guilin, which cover the production of rice flour and bean products, including Liang Xing Jiang Ren, You Dou Zhi, and other brands. For example, Liang Xing Jiang Ren is developing local specialties, traditional handicrafts, and health food products, introducing non-traditional craftsmanship, and collaborating with five-star catering chefs, universities, and multinational enterprises to maintain the traditional craftsmanship foundation, making product innovation more active. The two factories have received FSS-212 certification, and have been registered with the FDA in the United States. Not only has the manufacturer's production system reached the international top level of safety and control, but it has also paved the way for the entry into the global high-end market.
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Speaker Change: Tianjin Chenzhou bothers atopic put in Iceland.
Song Wang: In 2020, Liang Xing Jiang Ren will receive 600 million yuan, a 22% annual increase, and a 40% monthly re-purchase rate. We have three grain factories producing rice, flour, and bean products. We have incubated brands such as Liang Xin Jiang Ren and You Dou Zhi. For instance, Liang Xin Jiang Ren has introduced intangible cultural heritage craft and collaborated with five-star catering chefs, universities, and multinational companies, all while remaining the essence of traditional craftsmanship to make product innovation more dynamic. As a result, this label has skillfully created products that highlight regional traits, incorporate traditional craft, and promote children's health, among other features.
Speaker Change: Yeah, I think John and Jeremy Yes.
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Speaker Change: We have three queen factories, producing rice flower and being products, we have incubated brands such as young children and you know what don't you for instance, now she's doing it has introduced intangible cultural heritage Crafts and collaborated with five star catering chefs universities and motor National companies, all while remaining B S.
Speaker Change: So traditional craftsmanship to make product innovation more dynamic as a result. This label has skillfully created products that highlight regional trades incorporate traditional craft and promote children's health. Among other features to off the factories have a teen S. S. S. C twenty-two Towson certification and U S F D a wrench.
Song Wang: Two of the factories have obtained FFSC 22,000 certification and US FDA registration, which indicates that the production system has reached the highest level of international safety control and paves the way for entering the global high-end market. In 2024, the GMB of Liang Xin Jiang Ren was about 600 million RMB, with an annual growth rate of 22 percent and an average monthly repurchase rate of 40 percent.
Speaker Change: Australia, which indicate that the production system has reached the highest level of Internet International safety control and piece. The week, we're entering the global high end market in 2024 at G. M. B, a Belgian Joanne was about 600 million RMB with an annual growth rate of 22% and an average monthly repurchase rate of 40%.
Speaker Change: But you talked about them yet.
Song Wang: In terms of jade dishes, we currently have three factories that cover meat products, water-based products, and salad and fruit-based products. Based on the market data, advanced production technology and more than 3,000 flavor codes, we develop healthy jade dishes with regional flavor characteristics. Many products are popular with consumers. For example, Quanjixia has sold more than 500 million jade dishes in three consecutive years. Cai Changqing Kou Shui Ji has sold more than 30 million jade dishes in a year. Cai Changqing Kou Shui Ji has sold more than 1.1 billion jade dishes in 20 years. The annual growth rate is 27%, and the monthly supply rate is 40%.
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Speaker Change: Well pre prepare meals are we currently operate three factories that cover our categories such as knee products, our aquatic products and salad and food cuts of the tight hunting brand ethos Foundation, we develop health prepare healthy pre preparing meals with regional flavors based on our insight into consumer trends and front end market data advanced protection.
Song Wang: For pre-prepared meals, we currently operate three factories that cover categories such as meat products, aquatic products, and salad and fruit cuts, with the Cai Chongqing brand as our foundation. We develop healthy pre-prepared meals with regional flavors based on our insight into consumer trends and front-end market data, advanced production capabilities and technology, and over 3,000 flavor codes. Consumers greatly love many products, such as boxing crayfish, which has had an annual sales exceeding 100 million RMB for three consecutive years, and Cai Chongqing Mouthwatering Chicken, with an annual sales surpassing 30 million RMB. In 2024, the GMV of Cai Chongqing was approximately 1.1 billion RMB, with a year-on-year growth rate of 27% and an average monthly repurchase rate of 40%.
Speaker Change: Capability and technology in over 3000 flavor coach consumers greatly loved many products such as boxing crayfish, which has had an annual sales exceeding 10 exceeding 100 million RMB for three consecutive years and tight hunting mouthwatering chicken within himself, surpassing 30 million RMB in 'twenty 'twenty four at G. M D.
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Song Wang: Fourth, Guoyu's products are also capable enough to compete in a wider and more direct market Currently, our products are not only sold in domestic chain channels such as Lianhua, Jingdong Qixian, and Huazhou. At the same time, in the international market, we have sold our products to more than 30 countries and regions through cooperation partners such as Li Jingji, Hong Kong DFI, and Canada-Mainland China. In addition, we are building a deep cooperation relationship with Hong Kong's Hongkong TV Mall, Singapore's FairPrice, and China-Middle East retail groups. In the future, we can also use our data to drive the development and development capabilities to develop and adapt products in different channels.
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Dara: Hi, Dara.
Dara: So it's all about John what would cause them to shut at all size have you thought about how to treat a lot. When we got a shot at all so don't you worry wall Chindamo the pilots.
Dara: So yeah, those old Oh, Japan, both of that journey.
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Song Wang: Besides serving Dingdong, GUI's products are competitive directly in a broader market due to their high quality. Currently, our products are sold not only in domestic chain channels such as Lianhua Supermarkets, Jingdong 7th Fresh and Huaju Hotels, but also in international markets where we have distributed our products to over 30 countries and regions through partners like Lee Kum Kee, Hong Kong DFI and T&T Supermarkets from Canada. Furthermore, we are establishing in-depth cooperative relationships with HKTV Mall in Hong Kong, FairPrice in Singapore and retail groups in Central Asia and the Middle East. In the future, we will leverage our data production and R&D capabilities to develop products that cater to various channels.
Dara: Besides serving thing don't grease product or a competitive directly in a broader market due to their high quality concurrent currently all products are sold not only and domestic chain channels, such as don't want supermarkets, Jindal seven fresh and larger hotels, but also in international markets, where we have distributed all products to over.
Dara: 30 countries and regions through partners like become gay Hong Kong D. S. I N T N T supermarkets from Canada. Furthermore, we are establishing in depth cooperative relationships with H D. T D mall in Hong Kong, They are price in Singapore, and Vito groups in Central Asia, and the Middle East and in the future, we will leverage all data production and art.
Dara: D capabilities to develop products that cater to various channels.
Speaker Change: Wondered if all of that and so it didn't all try to tie it in and I need a T shirt, yes. The one that you said that you called me and.
Song Wang: The unparalleled development is an embodiment of Dingdong's full industrial chain capabilities. It is also an embodiment of the true potential of our one-kilometer-deep strategy. It not only increases Dingdong's commodity competitiveness, but also truly builds a strong, modern, high-quality food company with a fast-growing international vision. Thank you. The evolution of GuYu serves as a testament to Dingdong's full industry chain capabilities and the genuine potential of our narrow and deep strategy. It not only enhances Dingdong's product competitiveness, but also effectively establishes a robust, modern, and internationally oriented, rapidly developing, expanding, and high-quality food enterprise. Thank you.
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Speaker Change: Okay gingerly it doesn't generate you've got your own data show that later, what do you see a quite depends on the golf into a single chip.
Speaker Change: The evolution of Gooey serves as a testament to Dingle full industry chain, our capabilities and the genuine potential of a narrow and deep strategy and not only enhances <unk> product competitiveness, but also effectively establishes a robust modern and internationally oriented it rapidly developing expanding in high quality food.
Speaker Change: Enterprise. Thank you.
Speaker Change: As there are no further questions I'd like to return the call to management for closing remarks.
Operator: As there are no further questions, I'd like to return the call to our management for closing remarks. Thank you again for joining our call today. If you have any further questions, please feel free to contact us or request to our ILO. We look forward to speaking with everyone on your next earnest call. Have a good day and have a... The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. © BF-WATCH TV 2021
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Speaker Change: We look forward to speaking with everyone next earnings call have a good day and they have good night.
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Speaker Change: Okay.
Speaker Change: [noise].