Dingdong Maicai, a fresh produce e-commerce brand listed in U.S., released its financial report for the third quarter of 2021 on Monday, showing total revenue of 6.2 billion yuan ($960.6 million) during the period, an increase of 111% compared with the 2.93 billion yuan recorded in the same period of 2020.
The grocery-based e-commerce platform’s net loss was 2.01 billion yuan in Q3, while the net loss for the same period in 2020 was 828.6 million yuan. Not in accordance with U.S. GAAP, its net loss was 1.98 billion yuan, compared with the 826.8 million yuan for the same period last year.
Regarding the huge loss, Liang Changlin, Founder and CEO of Dingdong Maicai, said in a telephone conference that according to the current efficiency optimization situation, the firm’s profit appears more promising than expected at the time of the IPO.
As for how to improve gross profit, Liang said: “First of all, Dingdong Maicai will develop more differentiated and OBM goods with great gross profit margin. Secondly, we will continuously invest in the supply chain to improve efficiency. In addition, our investment in agricultural technology and processing capacity can help improve competitiveness, and then increase gross profit margin.”
Dingdong Maicai’s gross merchandise volume in the third quarter was 7.02 billion yuan, an increase of 107.7% compared with 3.38 billion yuan in the same period of 2020. The average monthly number of transaction users in the third quarter of 2021 was 10.5 million, an increase of 120.3% compared to the 4.8 million in the same period in 2020.
As of September 30, 2021, the number of compliance stations was 1,375, compared with 711 as of September 30, 2020.
Dingdong Maicai’s total operating costs and expenses were 8.2 billion yuan, an increase of 117.3% from 3.78 billion yuan in the same period in 2020. Among them, the cost of sales was 5.06 million yuan, a year-on-year increase of 109.2%, while fulfillment expenses were 2.3 billion yuan, a year-on-year increase of 120.8%.
Founded in May 2017, Dingdong Maicai is committed to providing users with high quality fresh groceries within a delivery time of 29 minutes. Its services cover Shanghai, Beijing, Shenzhen, Hangzhou, Suzhou and other cities in China.