On the evening of February 15, Beijing time, dingdong shopping (NYSE: DDL) released its fourth quarter performance report as of December 31, 2021.
According to the data, Ding Dong’s vegetable shopping maintained a rapid growth during the reporting period. The company achieved a revenue of 5.48 billion yuan in the fourth quarter, an increase of 72.0% year-on-year. In 2021, the revenue was 20.12 billion yuan, a year-on-year increase of 77.5%.
At the same time, thanks to the continuous improvement of commodity power and efficiency, the company announced that Shanghai achieved overall profit in December, the whole Yangtze River Delta achieved UE correction in that quarter, the overall loss rate was greatly optimized, and the results of efficiency improvement were remarkable.
Shanghai achieved overall profitability, and the efficiency improvement results exceeded expectations
The fourth quarter results showed that Ding Dong’s gross profit margin was 27.7%, an increase of 9.5 percentage points compared with the previous quarter. The increase of gross profit margin is due to the continuous improvement of dingdong’s commodity power of buying vegetables. Firstly, dingdong’s scale advantage and its own production and processing capacity have brought profit space at the production end; Secondly, the value brought by Ding Dong’s long-term and continuous investment in the origin is gradually releasing; At the same time, the category structure of commodities has been continuously optimized, which has also gradually increased the proportion of Gmv of high-quality commodities.
With the significant improvement of the human efficiency of front-line personnel, under the non GAAP caliber, the order fulfillment cost rate of dingdong shopping in the fourth quarter was optimized by 4.6 percentage points compared with the previous quarter. In the future, with the further improvement of human efficiency in the whole country and regions, the bill fulfillment cost rate will be further optimized.
In the process of continuously improving the efficiency of dingdong shopping, the loss rate was optimized by 13 percentage points under the non GAAP caliber in this quarter, far exceeding the previous expectation. In Shanghai, the city where dingdong shopping first served, it has achieved overall profit in December, and then it will drive the whole Yangtze River Delta and even the whole country to usher in comprehensive profit in the near future.
commodity power is the first driving force, and continue to increase investment in supply chain and infrastructure
As the commodity power of dingdong to buy vegetables has been greatly improved, good goods are becoming the fundamental reason to attract and retain users. Ding Dong is still constantly adjusting its commodity structure, committed to developing differentiated and better commodities, and creating different consumption scenarios to provide more efficient consumption experience for users with different needs.
At the same time, dingdong shopping also vigorously develops its own brand goods. At present, dingdong shopping has more than 20 own brands, such as dingdong ace dish, dingdong da man Guan, boxing shrimp, Baoluo workshop and Liangxin craftsman. In addition, it will work together with more well-known food brands to give full play to their respective advantages and continuously improve the ability of new product research and development and brand innovation.
The report also shows that dingdong will continue to increase investment in R & D, especially in infrastructure construction in supply chain system, agricultural technology and food R & D.
As of the fourth quarter, the company had 10 food R & D and processing plants; There are about 60 urban sorting centers and about 1400 pre bins, with an area of 500000 square meters. In 2022, three large-scale and modern fresh food complexes will be constructed to realize more efficient development, production and transportation of commodities.
In terms of planting and breeding, Ding Dong always pays attention to the supply side reform in the upper reaches of agriculture and attaches importance to the combination and application of production and research. It is understood that dingdong has three agricultural demonstration parks, signed 118 order planting bases, and is committed to management through dingdong good agricultural practice standard D-gap and order agriculture.
At the same time, the company also proposed to strengthen the R & D investment in cutting-edge technologies, help promote the digital and scientific development of agriculture, and directly or indirectly drive farmers’ income. In 2021, dingdong shopping launched the “green water and green mountains” agricultural assistance project, which will help more farmers expand sales channels and complete link upgrading in the future.
About the quarterly results, Liang Changlin, founder and CEO of dingdong shopping, said: “The fourth quarter has been the best quarter since our founding. Revenue has achieved rapid growth, efficiency has been significantly optimized, and we are on the fast track of high-quality development. In the future, consumption upgrading and commodity power are the main growth drivers of the company. We believe that the second half of the Internet will return to the essence of shopping, commodity power is the first driving force, and we should win with high-quality products Therefore, it is very important to improve R & D and production and processing capacity, as well as long-term investment in supply chain and infrastructure. “
