Dingdong Cayman Limited (DDL)
Description
Dingdong Cayman Limited is a leading fresh-grocery e-commerce platform in mainland China that offers direct-to-consumer delivery of fresh produce, prepared foods and related daily necessities through its self-operated regional fulfillment network and technology-driven supply chain.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Full Year 2024
- Debt
- RMB 2,204,056 thousand
- Debt History
- Debt rose from RMB 1,606,253 thousand at year‑end 2023 to RMB 2,204,056 thousand at year‑end 2024, a 37.2% increase
- Debt Trend
- Increasing
Profit Information
- Profit
- RMB 3,044,000 thousand (US$417,000 thousand) net income
- Profit History
- Turned from a net loss of RMB 913,000 thousand in 2023 to net income of RMB 3,044,000 thousand in 2024, a 433% swing
- Profit Trend
- Increasing
Detailed Report
Dingdong Cayman Limited
Report Date: 2025‑04‑30
Period Covered: Full Year 2024
1. Executive Summary
- Revenue grew to RMB 23.07 billion (US$3.16 billion), up 15.5% y/y.
- GMV (Gross Merchandise Value) reached RMB 25.56 billion, vs. RMB 21.97 billion in 2023.
- Net Income of RMB 3.04 billion (US$417 million), compared with a loss of RMB 913 million in 2023.
- Non‑GAAP Net Income of RMB 4.23 billion (US$579 million).
- Short‑term Borrowings were RMB 2.20 billion, up 37.2% from RMB 1.61 billion.
- Cash & Equivalents stood at RMB 44.52 billion.
2. Profit & Loss Analysis
- Revenue Mix
- Product Sales: RMB 22.74 billion (98.9% of total)
- Service Revenue (Membership): RMB 0.32 billion (1.1%)
- Cost Structure
- COGS: 69.9% of revenue (vs. 69.3% in 2023)
- Fulfillment Expense: 22.0% of revenue (vs. 23.5%)
- SG&A plus R&D: 13.1% of revenue
- Margin Expansion
- Achieved four straight quarters of GAAP profitability; nine quarters non‑GAAP.
- Margin lift driven by private‑label penetration, order‑density gains, and network scale.
3. Debt & Liquidity
- Short‑term Borrowings: RMB 2.20 billion at 12/31/24 vs. RMB 1.61 billion at 12/31/23.
- Unused Credit Lines: RMB 4.8 billion.
- Cash & Restricted Deposits: RMB 44.52 billion.
- Net Leverage: Manageable given strong cash cushion and improving EBITDA.
4. Strategic Drivers
- Fulfillment Grid: > 1,000 frontline stations enable 30‑minute delivery.
- Private‑Label SKUs: 4,000+ SKUs in‑house, higher margins vs. 3rd‑party.
- Tech & Data: Proprietary algorithms optimize procurement, routing and demand forecasting.
5. Risks & Challenges
- Regulatory Complexity: PRC licensing, foreign-exchange controls, data/security scrutiny.
- PCAOB Inspection: Ongoing HFCAA risk could disrupt ADR trading.
- Intense Competition: Price wars may compress margins in fresh‑grocery e‑commerce.
- Working Capital: High receivables/factoring and payables dynamics.
6. Pros & Cons
| Pros | Cons |
|---|---|
| Scalable last‑mile network with automation | High regulatory/data‑security complexity |
| Rapid private‑label margin expansion | HFCAA/PCAOB inspection uncertainty |
| Consistent non‑GAAP profitability | Fierce discounting in core markets |
| Healthy cash & low net leverage | Foreign‑exchange & repatriation controls |
Analyst Recommendation: Neutral.
Dingdong’s 2024 turnaround is impressive—sustained through operational discipline and tech‑enabled scale. However, execution risks in new markets, PRC regulatory headwinds, and margin pressure from competitors require cautious optimism.
Statistics Breakdown
- Revenue mix FY 2024: 98.9% product sales (fresh groceries & prepared food), 1.1% membership services
- GMV breakdown: Fresh Produce ~45%, Meat & Seafood ~25%, Prepared Meals ~20%, Groceries & FMCG ~10%
- Regional GMV: Yangtze River Delta ~55% of total
- Average Order Value: RMB 714 (vs. RMB 721 in 2023)
- Transacting users: 32.5 million (up 30% y/y)
Company Direction Insights
Dingdong’s shift to “efficiency first” is paying off. With four consecutive quarters of GAAP profits, a robust private‑label portfolio and a tightly controlled fulfillment grid, the company has demonstrated sustainable unit economics. Liquidity is ample, net leverage manageable, and 2025 expansion into secondary cities is well‑capitalized. Key near‑term challenges include navigating evolving PRC oversight on data, foreign‑exchange and PCAOB inspection status, plus intense price competition from larger platforms. Growth opportunities lie in deeper penetration in non‑Yangtze Delta regions, further margin improvement via higher‑mix private‑label goods and potential strategic alliances in cold‑chain logistics.