Dingdong (Cayman) Limited - Earnings Call - Q2 2025
August 21, 2025
Transcript
Speaker 4
Good day and welcome to the Dingdong (Cayman) Limited Second Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a Conference Specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Nicky Zheng, Director of Investor Relations. Please go ahead.
Speaker 1
Thank you. Hello everyone, and welcome to Dingdong (Cayman) Limited's Second Quarter 2025 Earnings Call. With me today are Mr. Liang Changlin, our Founder and CEO, and Mr. Song Wang, our CFO. You can refer to our Second Quarter 2025 financial results on our IR website at ir.100.me. You can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion. For 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 to our safe harbor statements 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 RMB terms.
We will discuss non-GAAP measures today, which I have thoroughly explained and reconciled to the most comparable measures reported in our earnings press release and filings with the SEC. I will now turn the call to our first speaker today, the Founder and CEO of Dingdong (Cayman) Limited, Mr. Liang Changlin.
Speaker 3
各位投资人, 各位分析师以及所有在线上线下陪伴叮咚一路同行的伙伴们, 感谢大家在百忙之中参加叮咚买菜2025年第二季度业绩沟通会。截止2025年Q2, 叮咚买菜已经实现了连续11个季度non-GAAP标准下的盈利, 并且也已经连续6个季度实现GAAP口径下的盈利。输入端则连续6个季度实现同比正增长, 持续稳定的规模增长与利润兑现, 不仅说明了我们解决了生存与死亡的问题, 也验证了叮咚买菜团队的韧性和执行能力, 因为下一阶段更高质量的增长奠定了坚实的基础。接下来我将首先用数据复盘Q2的经营亮点, 再分享一下我们好用户、好商品、好服务、好心智4G战略的进展成绩, 介绍我们在业务上新的增长点以及关于AI的一些业务动态。
Speaker 0
Hello everyone, thank you for joining Dingdong (Cayman) Limited's Q2 2025 earnings call despite your busy schedules. As of Q2 2025, Dingdong (Cayman) Limited has achieved 11 straight quarters of non-GAAP profitability and six straight quarters of GAAP profitability, along with six consecutive quarters of positive year-over-year revenue growth. This consistent growth in scale and profitability not only shows that we have overcome the challenge of survival, but also proves the resilience and execution capabilities of the Dingdong (Cayman) Limited team, laying a strong foundation for the next phase of high-quality growth. Next, I will review Q2's operational highlights, share the progress of our 4G strategy of good users, good products, good services, and good mind share, introduce new growth drivers, and update you on our AI-related business developments.
Speaker 3
in 2024, this year we continue to maintain the momentum of scale growth and sustained profitability.
Speaker 0
In Q2 2025, Dingdong (Cayman) Limited reported a GNV of ¥6.5 billion, up 4.5% year over year. The revenue of ¥5.98 billion, a 6.7% increase from the previous year. Non-GAAP net profit reached ¥130 million, growing 23.9% compared to ¥100 million in the same period last year, with a net profit margin of 2.1%, up 0.3 percentage points year over year. GAAP net profit was ¥110 million, an increase of 59.7% from ¥70 million, with a net profit margin of 1.8%, up 0.6 percentage points year over year. Building on our robust growth in 2024, we have maintained our scale expansion and profitability this year.
Speaker 3
截止到二季度，叮咚好用户、好商品、好服务、好心智的4G战略已实施半年。虽然我们还处在变革的阵痛期，但我们依然保持了业绩的同比正增长。同时，通过生产关系的调整和生产力的提升，4G战略已初见成效，全公司都紧密围绕着好商品开展工作，力争开发更好、更多、较好与较作，人无我有，人有我优，人优我特的好商品和4G战略配衬的运营指标都在持续变好。
Speaker 0
By the end of Q2, Dingdong (Cayman) Limited's 4G strategy, centered on good users, good products, good services, and good mind share, had been in place for six months. While the company is still transforming, it has achieved steady year-over-year growth. Additionally, through adjustments in production relations and productivity improvement, the 4G strategy has already begun to show results. The company remains focused on developing good products, aiming to create more offerings that are well received, commercially successful, and distinctive. Our principle is, where others fall short, we deliver. Where others deliver, we excel. Where others excel, we redefine. Operational metrics aligned with the 4G strategy continue to improve steadily.
Speaker 3
The monthly order frequency of this group of users reached 8.1 times.
Speaker 0
In Q2, good product SKUs made up an average of 38% of all SKUs, a 16.9 percentage point rise from Q1 when we first introduced the new strategy. These good products represented 43.1% of our GNV, a 20.9 percentage point increase from Q1. The increase in good products is attracting more good users. The conversion rate of monthly transacting users in Q2 grew by 3.3 percentage points year over year, with the number of monthly transacting users increasing by 5.8%. Good products also boost user engagement, with an average monthly order frequency of 4.4 times in Q2, a 3.2% rise year over year. Besides general market users, our good product offerings drew more good users who value product quality and were willing to pay for it.
In Q2, the number of good users who place orders increased by 19.3% quarter over quarter from Q1, accounting for 28.9% of total users who place orders. These users also place about 8.1 orders per month.
Speaker 3
growth rate of more than 20%.
Speaker 0
Geographically, the company's 4G strategy centered around Shanghai has quickly expanded to Jiangsu and Zhejiang, fueling additional growth in these areas. Despite already high market penetration, Shanghai still achieved a 3.5% year-over-year increase. In Jiangsu and Zhejiang, continued market penetration resulted in 11% yearly growth, with 10 cities surpassing 20% growth.
Speaker 3
在四季战略的基础上，我们纵观一下叮咚买菜目前的业务框架以及新的业务增长点。首先，在供应链上，我们扎得越来越深，85%以上的生鲜实现源头直采。我们通过叮咚农业、谷雨工厂、十大商品开发事业部、叮咚小满产地采购、澳洲直采等业务，确保了我们商品充足，也就是说有货。其次，在需求端，我们正在探索全渠道销售。除了大家知道的叮咚买菜APP，我们现在国内外的KYC销售业务也有声有色。另外，我们也给国内外B端商户、酒旅、餐饮、食堂、工厂等客户供货。通过全渠道销售能够提升销售的效率，也能够真正卖好供给端一盘货，实现卖好。在最后，在业务区域上，我们也不断拓展，首先从华东到全国，目前也渐渐进入东南亚、中东、中亚等地区，未来也有希望向欧美甚至非洲市场进行拓展。以上所述，在供应端、供应链端、在渠道端、在区域上同步的拓展，构建了我们叮咚内部说的点线链体，突破了增长天花板，也构建了我们的系统能力和核心竞争力。
Speaker 0
Building on the 4G strategy, let's take a look at Dingdong (Cayman) Limited's current business framework and its new growth drivers. First, we strengthen our presence in the supply chain by sourcing over 85% of our fresh produce directly from the origin, including Dingdong Agriculture, GUI Factory, 10 Product Development Division, Dingdong Xiaoman Origin Procurement, and direct sourcing from Australia. This ensures ample product availability. In other words, always have stock on hand. Second, on the demand side, we expanded omnichannel sales. Besides our popular Dingdong app, we also serve domestic and international KH channels and B2B clients, such as merchants, hotels, travel agencies, restaurants, canteens, and factories. Omnichannel sales boosted sales efficiency and fully showcased the value of our supply chain, leading to sales success.
Lastly, we continuously expanded our operational regions, starting from East China to nationwide coverage, and then gradually entering Southeast Asia, the Middle East, and Central Asia. Looking ahead, we plan to expand into Europe, America, and Africa. These simultaneous efforts across supply chains, channels, and regions form an interconnected system. Point line: salience solid, which broke growth barriers and enhanced our core system capabilities and competitiveness.
Speaker 3
目前我们在海外战略并非是简单复制国内的前市场模式，而是以供应链能力以及商品为核心构建的，依托于国内供应链优势，以生鲜商品为切入点，通过与当地零售巨头合作降低市场竞争风险，体现了供应链能力输出加本地化渠道共建的逻辑。例如在香港，我们和Lee Kum Kee、Dairy Farm、HKTV Mall等集团达成的战略合作，截至目前累计销售已经在¥10 million以上，并且还有更多的商品即将开始合作。
Speaker 0
Our overseas approach is not simply a copy of our domestic frontline procurement station model. Instead, it centers on our supply chain strength and product offerings. Using our domestic supply chain expertise, we focus on fresh produce as our key entry point and reduce market risk by partnering with local retail giants. This strategy reflects the set concept of exporting supply chain capabilities and jointly developing local channels. For instance, in Hong Kong, we formed strategic alliances with groups like Lee Kum Kee, Dairy Farm, and HKTV Mall, generating over ¥10 million in total sales so far, with more products to be launched through these collaborations.
Speaker 3
接下来我想给大家更新一下叮咚买菜在AI方面工作和进展。叮咚买菜长期致力于数字化能力建设，坚持以算法驱动业务发展。随着AI技术在业务中的深度应用，其角色已从单一的供应链效率提升工具升级为驱动业务模式创新与优化用户体验的关键引擎。叮咚买菜在AI技术应用领域布局较早，并成为业内率先将AI技术与业务深度融合的企业之一，目前已形成覆盖核心业务环节的全链路AI布局。
Speaker 0
Next, I want to update you on Dingdong's AI efforts and progress. Dingdong has long been dedicated to enhancing digital capabilities and relies on algorithms to foster business growth. As AI technology has been more deeply integrated into its operations, its role has shifted from merely improving supply chain efficiency to becoming a crucial driver of business model innovation and user experience enhancement. Dingdong was an early AI adopter and among the first in the industry to extensively embed AI into its business. It now implements a comprehensive full-chain AI strategy across all core business segments.
Speaker 3
具体而言，我们的AI全链路布局主要聚焦于以下三个核心领域：第一，内部旗下，我们利用大型语言、大语言模型的理解、生成和推理能力。赋能内部团队在运营、旗下成本优化、食品研发、办公行政等多个环节提升工作效率。
Speaker 0
Our comprehensive full-chain AI strategy centers on these three key areas. First, internal efficiency enhancement. We leverage the understanding, generation, and reasoning skills of large language models, LLMs, to help our team boost productivity in various areas, including operations, cost management, food research and development, and office administration.
Speaker 3
This system is a successful practice of intelligent supply chain management in the quality control segment.
Speaker 0
Second, supply chain intelligence. We use multimodal technology for smart management and optimization throughout the supply chain, enhancing the accuracy and consistency of mapping between physical and digital environments and ensuring truth-seeking and traceability across the entire supply chain. Additionally, a large language model or LLM agent automates decisions on purchasing, allocation, and promotions, further improving inventory accuracy and system stability. For instance, we developed an automated system for testing fruit sugar content, overhauling the testing process to automate everything from image recognition to data analysis to system integration, replacing manual data entry. The results are notable. Data entry time dropped from 20 seconds to under 3 seconds. Accuracy rose significantly to 98.3%, greatly reducing quality disputes caused by human errors. All test data is automatically synchronized to the system, supporting data analysis and traceability, standardizing data, and boosting management efficiency.
The system represents a successful application of intelligent supply chain management in its quality control process.
Speaker 3
the vague demand for healthy eating into specific shopping behavior, thereby significantly improving users' stickiness and loyalty to the platform.
Speaker 0
Third, enhanced consumer experience. We have integrated multiple AI features into the user app. For instance, our AI chatbot, SmartDiet Butler, supports multimodal interactions and has upgraded its recommendation logic from solely based on user behavior to the combination of behavior plus knowledge, merging behavioral data with specialized knowledge on nutrition. Users can query products, and the SmartDiet Butler not only suggests recipes but also offers personalized nutritional advice using medical examination data. Voice integration enables parents to easily customize healthy meals, even when busy with their children. The system also features ingredient/dish dual recognition, which analyzes nutritional balance and displays key nutrients like calories, protein, and sugar clearly, helping users quickly grasp the nutritional value of ingredients. Compared to the previous simple select products and place order process, Dingdong (Cayman) Limited now utilizes AI to offer personalized dietary recommendations and dietary purchasing options.
This improves user decision-making and turns vague healthy eating needs into concrete purchasing behavior, greatly boosting user engagement and loyalty.
Speaker 3
我再向大家说明一下对2025年Q3的展望。去年Q3是Dingdong (Cayman) Limited业绩飞速上升的一个季度。今年虽然执行4G战略, 我们放弃了部分大众商品和用户, 并且大家都能感知到的竞争的白热化, 我们预计仍然可以达到去年的规模, 并继续实现non-GAAP口径下的盈利。我的发言到此结束, 谢谢大家。下面请公司CFO王松来介绍一下公司财务情况。
Speaker 0
Finally, I want to share our outlook for Q3 2025. Last year's Q3 saw rapid growth for Dingdong (Cayman) Limited. This year, despite the rollout of our 4G strategy, which led to the drop of some mass-market products and users, and amid rising competition, we still aim for stable scale year over year and maintain non-GAAP profitability. This wraps up my remarks. Thank you. Now I invite our CFO, Mr. Song Wang, to discuss our financials.
Speaker 2
谢谢梁总，大家好。在向大家介绍我们的财务情况之前，先说明一下，我们的所有数字都是以人民币为单位的。
Speaker 0
Thank you, Mr. Liang, and hello everyone. Before I review our financial performance for the second quarter, please note that all of our figures are in RMB.
Speaker 2
of fresh food, continuously invest in good products and supply chain, and unswervingly pursue our differentiated path.
Speaker 0
In Q2 2025, Dingdong (Cayman) Limited generated revenue of ¥5.98 billion, a 6.7% year-on-year increase, marking six consecutive quarters of positive growth. Non-GAAP net profit reached ¥130 million, with a net margin of 2.1%, up 0.3% year on year. GAAP net profit was ¥110 million, with a net margin of 1.8%, an increase of 0.6%. In terms of funds, Q2 recorded a net cash inflow of ¥100 million from operating activities, the eighth straight quarter of positive cash flow. By the end of Q2, after deducting short-term borrowings, our actual cash owned increased to ¥2.95 billion. Dingdong (Cayman) Limited has been focused on the instant retail and fresh grocery e-commerce sectors for over eight years. Our ongoing profitability and rising cash flow reinforce our commitment to the value proposition, narrow and deep.
Despite external changes, we'll remain fully dedicated to the fresh grocery vertical, investing continuously in good products and supply chains, following our unique path.
Speaker 2
我们来看一下Q2的具体财务情况。Q2的营收为¥5.98 billion, 同比增长6.7%。GNV为¥6.5 billion, 同比增长4.5%。受益于4G战略的稳步推进, 好商品和好用户带动了大盘的增长, 用户心智持续变好。大盘月均下单频次达4.4次, 不仅同比增加, 也达到了去年Q3旺季的水平。此外, 我们投币业务稳步发展, 收入同比增速达69.4%, 收入占比同比提升1.6个百分点。
Speaker 0
Let's now review the specific financial results for Q2. Revenue was RMB 5.98 billion, up 6.7% year on year, while GNV reached RMB 6.5 billion, up 4.5% year on year. Thanks to the steady advancement of our 4G strategy, good products and good users contributed to overall market growth, with user mind share continuing to improve. The average monthly order frequency hit 4.4 times, reflecting not only a year-on-year increase but also matching the peak level of last year's Q3. Additionally, our 2B business saw consistent growth, with revenue climbing 69.4% year on year and its revenue share rising by 1.6 percentage points year on year.
Speaker 2
deeply researching with the spirit of craftsmanship, and consolidating our core competitiveness.
Speaker 0
Gross profit margin stood at 28.8%, down 1.2 percentage points from the previous year. The decline was mainly driven by our increased investment in good products, the steady availability of such products, and the proactive replacement of unpopular items. For example, in Shanghai alone, we replaced about 3,600 SKUs in the first half of the year, about 1,300 more than the same period last year. Additionally, we took a proactive approach in managing gross profit and continue to pass the cost benefit to consumers through in-depth product supply chain optimization and cultivation. Our goal is for more families to have access to our good products. Moving forward, we'll continue to incubate good products, conduct thorough research with a craftsmanship dedication, and strengthen our core competitiveness.
Speaker 2
Q2的履约费用率为21.7%，同比降低了0.7个百分点。履约费用率的降低主要来自于规模效应和效率的持续提升。同时，我们持续在好服务上发力。今年以来，我们的准时送达率为97.3%，已经达到了历史最高水平。Q2同比提升了1.6个百分点。即时单履约时长为35.8分钟，同比缩短了0.6分钟。
Speaker 0
The fulfillment cost rate dropped to 21.7%, down by 0.7 percentage points year on year. This decline was mainly driven by economies of scale and ongoing efficiency gains. Meanwhile, we remained committed to excellent service, achieving a record on-time delivery rate of 97.3% so far this year, which is 1.6 percentage points higher than last year in Q2. The fulfillment time of ASAP orders also has improved, averaging 35.8 minutes, 0.6 minutes faster than last year.
Speaker 2
efficiency of conversion from investment.
Speaker 0
The marketing expense ratio was 1.7%, a 0.6 percentage point improvement year on year. Moving forward, we plan to further boost investment in promoting good products, leveraging them to generate traffic and continuously enhance our conversion rate.
Speaker 2
enhance supply chain efficiency.
Speaker 0
Combined administrative and R&D expenses represented 5.5% of revenue, remaining stable compared to the same period last year. We will continue to invest in food R&D, agricultural technology, and technical data algorithms to continually enhance our product development and full-chain digital capabilities, thereby improving supply chain efficiency.
Speaker 2
0.6 percentage points year over year.
Speaker 0
Non-GAAP net profit margin reached 2.1%, up 0.3 percentage points year on year, resulting in a net profit of RMB 130 million. GAAP net profit margin was 1.8% for the same quarter, a year-on-year increase of 0.6 percentage points.
Speaker 2
was ¥2.951 billion.
Speaker 0
At the end of Q2, the total of cash, cash equivalents, short-term restricted cash, short-term investment, and long-term deposit was RMB 4.01 billion. We're actively improving the efficiency of capital use and financing structure. After subtracting short-term borrowings, our net equity stood at RMB 2.95 billion.
Speaker 2
我们今天的发言到此结束。Operator, 下面可以进入提问环节了。
Speaker 0
This concludes my prepared remarks. Operator, we can now start the question and answer session.
Speaker 4
Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Please state your question in Chinese first and then repeat it in English for the convenience of everyone on the call. At this time, we'll pause momentarily to assemble our roster. The first question will come from Thomas Chong with Jefferies. Please go ahead.
Speaker 3
晚上好, 恭喜公司很强劲的业绩。总结一下, 想问一下, 就是我们提到4G战略已经是实施半年了, 可以跟我们总结一下4G战略这半年的进展还有成果吗? 谢谢。 Hello Mr. Liang, congratulations to the company for maintaining an excellent result this quarter. You mentioned that the 4G strategy has been in place for six months. Could you summarize the progress and outcome of the 4G strategy during this period? Thank you. 好的, 谢谢您的问题。4G战略已实施半年多, 这半年我们围绕着好用户、好商品、好服务、好心智进行了生产关系调整和生产力的提升。
Speaker 0
Thank you for your question. The 4G strategy has been in place for more than six months. During this period, we've refined our production relations and enhanced productivity, emphasizing good users, good products, good services, and good mind share.
Speaker 3
首先, 我们深入调整了生产关系, 解构了传统的商品开发中心, 将商品开发、商品运营、品控人员组织在一起, 建立了10个独立的商品开发事业部, 由公司的核心高管牵头每个事业部。全公司都围绕着高品质商品开展工作, 组织也更有效率。同时, 我们改革了资源分配和考核方式, 一段时间内我们取消了GNV和利润率的指标, 聚焦好商品、好用户占比、用户复购率、用户差评等质量指标。
Speaker 0
First, we comprehensively restructured our production relationships by dismantling traditional product development centers. We integrated personnel from product development, operations, and quality control to form 10 independent product development divisions, each led by a key executive. This shift enabled the company to prioritize high-quality products and increase our organizational efficiency. Simultaneously, we overhauled resource distribution and performance evaluation methods. During this period, we removed GNV and profit margin as performance metrics, instead emphasizing quality indicators such as the proportion of good products, good users, purchase repeat rate, and negative reviews.
Speaker 3
其次, 我们还进行了生产力的升级, 我们将APP的定位升级为品质Drive, 所有流量向好品质商品倾斜, 集中在有机会、雄伟中国、宝妈严选、配料干净、DJI等商品上。例如Q2, 我们的有机商品销售额同比提升约40%。
Speaker 0
Secondly, we enhanced productivity by reorienting our app's positioning to love of quality. This shift directed homepage traffic toward good products, emphasizing categories such as organic collection, Taste of China, Mom Select, along with products featuring clean ingredients and low GI. For instance, in Q2, our sales of organic products grew by about 40% year over year.
Speaker 3
另外，如前面讲到的，我们全面拥抱AI，同时也将我们的系统能力开放出来，供更多合作伙伴使用。同时，我们今年招聘了约500名的东里生，我们希望这群新鲜血液和我们一起带动我们4G战略的落地。
Speaker 0
As previously mentioned, we're fully integrating AI and expanding our system capabilities to include more partners. Additionally, this year, we have recruited around 500 management trainees. We look forward to this new talent helping us to advance the implementation of our 4G strategy.
Speaker 3
经过这些组织调整, 我向大家汇报一下4G战略目前的成绩。首先是好用户, 我们服务了一群注重商品品质、愿意为好品质商品买单的用户。6月, 这群用户占比已经接近30%, 并且贡献了68.5%的GNV, 而且我们新客中好用户占比约80%。以前我们获客主要通过低价吸引用户, 但现在我们用好商品来吸引用户。另外, 我们常说服务为王, 好用户月下单频次达到8次以上, 而我们大盘是4.4次, 这群用户的服务率很高。
Speaker 0
Following these organizational changes, I would like to update you on the current progress of the 4G strategy. Let's first talk about our good users. We have served users who prioritize product quality and are willing to pay for it. In June, nearly 30% of users were considered good users, accounting for about 68.5% of our total GNV. Furthermore, around 80% of new users were classified as good users. While we once relied on low prices for user acquisition, we now attract customers with good products. The repurchase rate is vital. Our good users show an exceptionally high repurchase rate, with at least eight orders monthly per user, compared to the average of 4.4%.
Speaker 3
另外, 在好商品, 我们累计汰换了4,000多只商品。6月, 我们好商品SKU占比已经达40%, 贡献了约47%的GNV。好商品的GNV占比迅速提升, 相比今年初提升了约30个百分点。即使是一些大家印象中的大众商品品类, 相对很难做到差异化, 但我们仍然坚持走向源头, 走差异化创新路线, 使这些品类中好商品占比也迅速提升。例如, 肉、禽、蛋品类中的好商品的GNV占比6月达到了55%。蔬菜中有机蔬菜的占比达12%, GNV同比去年提升了约38%。猪肉中黑猪的占比达到35%, 而在全国黑猪消费之战, 猪肉消费的3%。
Speaker 0
We have also replaced over 4,000 items with good products. In June, good products made up 40% of our SKUs and contributed to around 47% of our GNV. This shows a rapid growth in GNV, increasing by roughly 30 percentage points since the start of the year. Even in categories often seen as mass market, where differentiations can be challenging, we continue to source from the origins with innovation. This has led to a quick rise in the share of good products within these categories. For instance, in June, good products accounted for 55% of GNV in meat, poultry, and eggs. Organic vegetables represented 12% of our vegetable sales, a 38% increase of its GNV year over year. In pork, black pork accounts for 35%, while in nationwide markets, it makes up only 3% of total pork consumption.
Speaker 3
总的来说，经过半年时间，我们的好商品和好用户增长势头都很迅猛，这代表着我们对市场和用户的理解是对的。我们4G这条路走对了，我们将继续践行“一寸窄一公里深”的策略，为消费者提供健康的、有品质的食材食品，这让每个家庭吃得更健康、更安全。谢谢。
Speaker 0
Overall, after six months of implementing our 4G strategy, we gained more good products and users. This indicates that our understanding of the market and user is accurate, and we have developed a winning strategy. We'll persist with the narrow and deep approach to deliver healthy, high-quality ingredients and foods, ensuring every family can enjoy healthier and savor meals. Thank you.
Speaker 4
The next question will come from Yang Bai with China International Capital Corporation Limited. Please go ahead.
Speaker 2
感谢管理层, 最近的市场也很热闹, 想请问一下管理层怎么看待现在的竞争, 比如及时零售的竞争以及前置商赛道的这个竞争, 那这些对我们的影响是怎样的? Thank you management. How does management perceive the current competition, including instant retail and the frontline fulfillment station market, and what's its impact on us? Thank you.
Speaker 3
好的，谢谢您的提问。竞争这个话题大家一直都非常关注，从2021年我们上市开始，大家比较关心的飞速团购、平台到家、前置仓等等模式竞争，我们以往季度均做了逐一解答。从叮咚的视角，我们并不强调竞争，我们更重视的是创造价值。回顾这一路走来，我们对自己的认知和定位一直还是比较坚定和准确的。
Speaker 0
Thank you for your question. Competition is a highly relevant topic for everyone. Since our IPO in 2021, we have been attentive to competition in areas such as community group buying, platform delivery, and frontline fulfillment stations. We have addressed these issues individually in previous quarters. We focus less on competition and more on creating value. Reflecting on this journey, we have stayed consistent and accurate in our understanding and positioning.
Speaker 3
thus forming an oligopoly. Sixth, the assessment method is different. We are more a friend of time, focusing on long-termism, while they pay more attention to short-term KPIs.
Speaker 0
First, recent competition within instant retail has garnered widespread attention. The battle for users and traffic is fierce, with many adopting quick, short-term price wars. However, this focus often neglects aspects like supply chains and product development. As we outlined with our strategic approach of narrow and deep, we differ significantly from typical instant retail companies. First, our goal is to develop the supply chain and create an ecosystem, whereas theirs is to compete for more users and traffic. Second, strategically speaking, we emphasize commodity and ecological approaches, unlike their focus on traffic, platform dominance, and market monopolization. Third, in our relationships with channels, we seek win-win cooperation and steady growth, whereas they engage in zero-sum market competition. Fourth, our interactions with suppliers are collaborative and mutually beneficial, while theirs follow a traditional client-provider model. Fifth, our business models grow in proportion to our upstream and downstream partners.
In contrast, theirs are characterized by a power law distribution, with a few entities controlling most resources and influence and becoming oligopolies. Sixth, we value long-term relationships and patience, unlike their focus on short-term KPIs.
Speaker 3
因为这些不同，使我们和这些即时零售企业完全差异化了。其实大家如果去关注小红书等社交媒体，看到关于叮咚买菜的创新商品、好品质商品的讨论越来越多。这也构成了当前即时零售同质化激烈价格战中另一道清新亮丽的风景。
Speaker 0
These significant differences set us apart from other instant retail brands. When you browse social media platforms like Xiaohongshu, RedNotes, you see increasing discussions about Dingdong's innovative and high-quality products. This helps us stand out in the current market, which is dominated by price competition and homogeneity.
Speaker 3
而从消费者的角度，自从疫情之后，越来越多的消费者对品质提出了更高的要求，比如 "I want to eat"。消费者也渐渐觉醒，一方面食物的营养构成会直接进入你的身体，长期影响体型、健康、精力和免疫力。例如，长期高糖饮食容易导致肥胖与代谢疾病，而多摄入健康的蔬果则降低慢性病的风险。另一方面，你的饮食选择也反映了你的身份、价值观与生活方式。比如素食者可能关注环保与动物福利，偏爱本地食材的人或许推崇可持续理念。换言之，吃不仅塑造身体，也塑造你是谁，你认同什么。大家可以看到我们APP上很多商品都是紧密围绕着消费者的这些诉求来开发的。
Speaker 0
From the consumer's point of view, since the pandemic, more individuals have raised their standards for food quality. Consumers are increasingly recognizing that you are what you eat. On one hand, food's nutritional content directly impacts your body, influencing your physique, health, energy, and immunity over time. For instance, consistently consuming high-sugar diets can result in obesity and metabolic issues, while eating more healthy fruits and vegetables can lower the risk of chronic diseases. On the other hand, dietary choices also mirror your identity, values, and lifestyle. For instance, vegetarians might prioritize environmental protection and animal welfare, whereas those who prefer local ingredients may support sustainability. In essence, eating not only molds your body, but also defines who you are and what you stand for. Most products on our app are developed to align closely with these consumer needs.
Speaker 3
结合前面介绍的叮咚买菜的4G战略、一寸窄一公里深的策略以及品质之爱的定位，虽然在主观上我们并非为了竞争而做，但客观上建立了属于我们叮咚买菜的特有的竞争力，能够让我们在竞争中立于不败之地。当然，我们的变革还需要很长时间，但我们相信效果会越来越明显。我们会是时间的朋友，也为投资人创造长期价值。谢谢。
Speaker 0
With that said, we did not introduce Dingdong's 4G strategy, narrow and deep approach, and its love of quality positioning as a way to compete. Instead, these have become objectively Dingdong's unique competitive edge, ensuring its strong position in the market. While our transformation will undoubtedly require time, we believe the results will become increasingly evident. Time is our ally. We aim to create long-term value for our investors. Thank you.
Speaker 4
This concludes our question and answer session. I would like to turn the conference back over to Nicky Zheng for any closing remarks. Please go ahead.
Speaker 1
Thank you again for joining our call today. If you have any further questions, please feel free to contact us or request us via our website. We look forward to speaking with everyone in our next earnings call. Have a good day and have a good night.
Speaker 4
The conference is now concluded. Thank you for participating in today's call. You may now disconnect.