June 30, 2022

In accordance with contemporary studies referring to Dingdong Maicai’s “large-scale withdrawal”, the grocery e-commerce platform replied on Monday that the guidelines was once unfaithful. The corporate additionally mentioned that the adjustments to a few particular person entrance warehouses in Tianjin, Anhui and different areas have been customary industry changes, and that the adjustment scale was once small, inflicting little impact at the customary operations of the corporate.

Previous, on Might 30, it was once reported that Dingdong Maicai’s websites in Xuancheng and Chuzhou would pull up their services and products. Due to this fact, the subject “Dingdong Maicai to Withdraw from Anhui Marketplace” started trending on home social media platforms quickly after as rumors swirled in regards to the conceivable abolition of a number of industry in a couple of other areas, together with Xuancheng and Chuzhou. Its websites in different towns similar to Tangshan, Zhongshan and Zhuhai additionally stopped carrier at 18:00 on Might 31.

There are lots of indicators that Dingdong Maicai is slowing down and step by step shrinking its “battlefield.” In keeping with the corporate’s monetary document, as of December 31, 2021, it has established 1,400 entrance warehouses and sorting facilities in 60 towns throughout China. Then again, within the fourth quarter of 2021, the choice of its new entrance warehouses was once simplest 25, which was once one 10th of the rise within the 3rd quarter. The choice of entrance warehouse greater within the first 3 quarters of 2021 topping 139, 147 and 239 respectively.

In keeping with its monetary studies of the fiscal 12 months 2021 and This autumn, its income in 2021 was once 20.12 billion yuan, up 77.5% year-on-year, however its web loss reached 6.43 billion yuan. This autumn income hit 5.48 billion yuan, a year-on-year building up of 72.0%, whilst web loss have been 1.096 billion yuan. The web loss in the similar duration of 2020 was once 1.246 billion yuan; Gross benefit margin was once 27.7%, up 9.5 share issues from the former quarter.

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The corporate additionally identified in its monetary document that Shanghai completed general benefit in December 2021, and the entire Yangtze River Delta area completed a UE correction in that quarter, and the whole loss price was once a great deal optimized, with exceptional leads to potency. On this regard, Liang Changlin, founder and CEO of the corporate, mentioned that “ultimate 12 months’s This autumn efficiency exceeded the most efficient efficiency for the reason that status quo of the corporate, which marked the optimization of the corporate’s potency”.

Then again, Dingdong Maicai continues to be burning via money at the entire. The corporate’s web losses have been 1.873 billion yuan in 2019 and three.177 billion yuan in 2020 whilst web losses within the 4 quarters of 2021 have been 1.385 billion yuan, 1.937 billion yuan, 2.011 billion yuan and 1.096 billion yuan respectively. Even supposing the loss inside of a unmarried quarter have narrowed, the corporate’s gathered losses has exceeded 11 billion yuan since 2019.