Dingdong (Cayman) Ltd (DDL) 2025 Q2 法說會逐字稿

Good day, and welcome to the Dingdong Limited second quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加鼎東有限公司2025年第二季業績電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Nicky Zheng, Director of Investor Relations. Please go ahead.

現在我將把會議交給投資者關係總監鄭妮琪女士。請繼續。

Thank you. Hello, everyone. Welcome to Dingdong second quarter 2025 earnings call. With me today are Mr. Changlin Liang, 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 at dates conclusion. For today's call, management will go through their prepared remarks, which will be followed by a question-and-answer session.

謝謝。大家好。歡迎參加鼎東2025年第二季財報電話會議。今天陪同我的是我們的創辦人兼執行長梁長林先生，以及我們的財務長王松先生。您可以造訪我們的投資者關係網站ir.100.me查看我們2025年第二季的財務表現。本次電話會議結束後幾個小時，您也可以造訪我們的投資人關係網站收聽錄音回放。在今天的電話會議上，管理階層將宣讀他們準備好的發言稿，隨後將進行問答環節。

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's prepared remarks are in RMB terms, and we will discuss non-GAAP measures today, which are necessarily explained and reconciled to the most comparable measures reported in our earnings press release and filings with the SEC.

在繼續之前，我想請各位參閱我們在盈利新聞稿中發布的“安全港”聲明，該聲明同樣適用於本次電話會議。由於我們將發表前瞻性聲明，請注意，以下管理層準備的發言稿中所述的所有數字均以人民幣計價，我們今天將討論非GAAP指標，這些指標必然會在我們的盈利新聞稿和提交給美國證券交易委員會的文件中進行解釋和調整，以與報告的最可比指標進行核對。

I will now turn the call to our first speaker today, the Founder and CEO of Dingdong. Mr. Liang.

現在我將把電話轉給我們今天的第一位發言人，叮咚科技的創辦人兼執行長。梁先生。

(spoken in foreign language)

（用外語說）

Hello, everyone. Thank you for joining Dingdong's Q2 2025 Earnings Call despite your busy schedules. As of Q2 2025, Dingdong 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 team, laying a strong foundation for the next phase of high-quality growth.

大家好。感謝您百忙之中抽空參加鼎東2025年第二季財報電話會議。截至2025年第二季度，鼎東已連續11季實現非GAAP獲利，連續6季實現GAAP獲利，並連續6季實現營收年增。規模和獲利能力的持續成長不僅顯示我們克服了生存挑戰，也證明了鼎東團隊的韌性和執行力，為下一階段的高品質成長奠定了堅實的基礎。

Next, I will review Q2's operational highlights, share the progress of our 4G strategy of good users, good products, good services and good mindset, introduce new growth drivers and update you on our AI-related business development.

接下來，我將回顧第二季的營運亮點，分享我們以優質用戶、優質產品、優質服務和良好心態為核心的 4G 策略的進展情況，介紹新的成長動力，並向大家匯報我們與人工智慧相關的業務發展。

(spoken in foreign language)

（用外語說）

In Q2 2025, Dingdong reported a GMV of RMB6.5 billion, up 4.5% year-over-year. The revenue of RMB5.98 billion, a 6.7% increase from the previous year. Non-GAAP net profit reached RMB30 million, growing 23.9% compared to RMB100 million in the same period last year, with a net profit margin of 2.1%, up 0.3% points year-over-year. GAAP net profit was RMB10 million, an increase of 59.7% from RMB70 million with a net profit margin of 1.8%, up 0.6% points year-on-year. Looking on our robust growth in 2024, we have maintained our scale expansion and profitability this year.

2025年第二季度，鼎東公佈的商品交易總額為人民幣65億元，較去年同期成長4.5%。營收達人民幣59.8億元，較上年成長6.7%。非GAAP淨利達人民幣3,000萬元，較去年同期人民幣1億元成長23.9%，淨利潤率為2.1%，較去年同期成長0.3個百分點。以美國通用會計準則計算，淨利為人民幣1,000萬元，較上年同期的人民幣7,000萬元成長59.7%；淨利潤率為1.8%，較上年同期成長0.6個百分點。展望 2024 年的強勁成長，我們今年保持了規模擴張和獲利能力。

(spoken in foreign language)

（用外語說）

By the end of Q2, Dingdong 4G strategy center on good users, good products, good services and good mind share have 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.

截至第二季末，鼎東4G以優質用戶、優質產品、優質服務和良好用戶認知度為核心的策略已經實施了六個月。雖然公司仍在轉型，但已實現了逐年穩定成長。此外，透過調整生產關係和提高生產力，4G策略已經開始顯現成效。

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.

公司將繼續專注於開發優質產品，力求創造更多廣受歡迎、商業上成功且獨特的產品。我們的原則是：別人做不到的地方，我們做到。別人能做到的，我們做得更好。別人擅長的領域，我們重新定義。與 4G 策略相符的營運指標持續穩定提升。

(spoken in foreign language)

（用外語說）

Good product SKUs made up an average of 38% of all SKUs, a 60.9% points rise from Q1 when we first introduced a new strategy. These good products represented 43.1% of our GMV, a 20.9% point increase from Q1. The increase in good products is attracting more good users. The converted rate of monthly transacting users in Q2 grew by 3.3% points year-over-year with a number of monthly transacting users increasing by 5.8%.

優質產品 SKU 佔所有 SKU 的平均比例為 38%，比我們首次推出新策略的第一季成長了 60.9 個百分點。這些優質產品占我們 GMV 的 43.1%，比第一季成長了 20.9 個百分點。優質產品的增加吸引了更多優質用戶。第二季月交易用戶轉換率年增 3.3 個百分點，月交易用戶數量成長 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 through more good users who value product quality and we're willing to pay for it. In Q2, the number of good users who placed orders increased by 19.3% quarter-over-quarter from Q1, accounting for 28.9% of total users replace orders. These users also place about 8.1 orders per month.

好的產品也能提高用戶參與度，第二季平均每月訂單頻率為 4.4 次，較去年同期成長 3.2%。除了一般市場用戶外，我們還透過更重視產品品質且願意為此付費的優質用戶來提供優質的產品。第二季度，優質用戶下單數量較第一季季增19.3%，佔總用戶替換訂單量的28.9%。這些用戶平均每月下單約 8.1 次。

(spoken in foreign language)

（用外語說）

Geographically, the company's 4G strategy center on Shanghai has quickly expanded to Changshu and fueling additional growth in these areas. Despite already high market penetration, Shanghai still achieved a 3.5% year-on-year increase. In Changshu and continued market penetration resulted in 11% yearly growth, with 10 cities surpassing 20% growth.

從地理位置來看，該公司位於上海的 4G 戰略中心已迅速擴展到常熟，並推動了這些地區的進一步成長。儘管市場滲透率已經很高，但上海的銷售額仍實現了3.5%的年成長。常熟市場持續滲透，實現了每年 11% 的成長，其中 10 個城市的成長率超過 20%。

(spoken in foreign language)

（用外語說）

Building on the 4G strategy, let's take a look at Bandon's current business framework and its new growth drivers. First, we strengthened our presence in the supply chain by sourcing over 85% of our fresh growth our fresh produce directly from the origin, including bingo agriculture factory, 10 Product Development division, Dingdong Origin procurement and direct sourcing from Australia. This ensure ample product availability. In other words, always have stock on hand.

在 4G 策略的基礎上，讓我們來看看 Bandon 目前的業務框架及其新的成長動力。首先，我們加強了在供應鏈中的地位，超過 85% 的新鮮農產品直接從原產地採購，包括 bingo 農業工廠、10 產品開發部門、Dingdong Origin 採購以及直接從澳洲採購。這樣可以確保充足的產品供應。換句話說，要始終保持庫存充足。

Second, on the demand side, we expanded omnichannel sales. Besides our popular Dingdong, we also serve domestic and international K channels and B2B clients. such as merchants, hotels, travel agencies, restaurants, canteens and factories. Omnichannel sales boosted sales efficiency and fully showcase the value of our supply chain, leading to sales success.

其次，在需求方面，我們擴大了全通路銷售。除了我們廣受歡迎的叮咚服務外，我們也為國內外K頻道和B2B客戶提供服務，例如商家、飯店、旅行社、餐廳、食堂和工廠。全通路銷售提高了銷售效率，充分展現了我們供應鏈的價值，從而取得了銷售成功。

Lastly, we continuously expanded our operational regions, starting from East China to nationwide coverage and then gradually entering Southeast Asia and the Middle East, Central Asia. Looking ahead, we plan to expand into Europe, America and Africa. These simultaneous efforts across supply chains, channels and regions forming interconnected systems, point line payment solid, which broke growth barriers and enhance our core system capabilities and competitiveness.

最後，我們不斷擴大業務範圍，從華東地區擴展到全國範圍，然後逐步進入東南亞、中東和中亞。展望未來，我們計劃拓展歐洲、美洲和非洲市場。這些在供應鏈、通路和區域之間同步進行的努力，形成了相互關聯的系統，實現了可靠的點線支付，打破了成長壁壘，增強了我們的核心系統能力和競爭力。

(spoken in foreign language)

（用外語說）

Our overseas approach is not simply a copy of our domestic frontline fulfillment station model, instead it centers on our supply chain strength and product offerings. These our domestic supply chain expertise. We focus on fresh produce as our key entry points and reduce market risk by partnering with local retail giants.

我們的海外策略並非簡單地複製國內的第一線物流站模式，而是以我們的供應鏈實力和產品供應為核心。這是我們國內供應鏈的專業知識。我們以新鮮農產品為主要切入點，並透過與當地零售巨頭合作來降低市場風險。

This strategy reflects the concept of exporting supply chain capabilities and jointly developing local channels. For instance, in Hong Kong, we formed strategic alliances with groups like Dairy Farm and HKD Mall generating over RMB10 million in total sales so far with more products to be launched through these collaborations.

這項策略體現了輸出供應鏈能力並與當地通路共同發展的理念。例如，在香港，我們與牛奶國際和香港七大商場等集團建立了戰略聯盟，迄今已創造了超過1000萬元人民幣的總銷售額，未來還將透過這些合作推出更多產品。

(spoken in foreign language)

（用外語說）

Next, I want to update you on Dingdong 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 as well has shifted from nearly improving supply chain efficiency to becoming a crucial driver of model innovation and user experience enhancements.

接下來，我想向大家報告叮咚人工智慧計畫的工作進度和成果。鼎東一直致力於提升數位化能力，並依靠演算法來促進業務成長。隨著人工智慧技術更深入融入其運營，其角色也從提升供應鏈效率轉變為推動模式創新和使用者體驗提升的關鍵因素。

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.

叮咚是人工智慧的早期採用者。並且是業內首批將人工智慧廣泛融入其業務的公司之一。目前，該公司已在所有核心業務領域實施了全面的全產業鏈人工智慧策略。

(spoken in foreign language)

（用外語說）

Our comprehensive full chain AI strategy centers on these 3 key areas First, internal efficiency enhancement. We leverage the understanding, generation and skills of large language models, LLM to help our team boost productivity in various areas, including operations, cost management, food research and development and office administration.

我們全面的全鏈人工智慧策略圍繞著以下 3 個關鍵領域：首先，提高內部效率。我們利用大型語言模型 (LLM) 的理解、生成和技能，幫助我們的團隊提高各個領域的生產力，包括營運、成本管理、食品研發和辦公室管理。

(spoken in foreign language)

（用外語說）

Second, supply chain intelligence, we use multi-model technology for smart management and optimization throughout the supply chain, enhancing the accuracy and consistency of mapping between physical and digital environment and ensuring truth seeking and traceability across the entire supply chain. Additionally, a large language model or LLM agent, automate decisions on purchasing, allocation and promotions for the improving inventory accuracy and system stability.

其次，在供應鏈智慧方面，我們利用多模型技術對整個供應鏈進行智慧管理和最佳化，提高物理環境和數位環境之間的映射準確性和一致性，確保整個供應鏈的真相探索和可追溯性。此外，大型語言模型或 LLM 代理可以自動做出採購、分配和促銷決策，從而提高庫存準確性和系統穩定性。

For instance, we developed an automated system, protecting fruit sugar content, overhauling the technique process to automate everything from image recognition to data analysis to system integration, replacing manual data entry.

例如，我們開發了一種自動化系統，用於保護水果中的糖含量，徹底改造了技術流程，實現了從影像識別到資料分析再到系統整合的所有自動化，取代了人工資料輸入。

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, and all test data is automatically synchronized through the system, supporting data analysis and traceability, standardizing data and boosting management efficiency. This then represents a successful application of intelligent supply chain management in its quality control process.

結果顯著，資料輸入時間從 20 秒縮短到 3 秒以內。準確率顯著提高至 98.3%，大大減少了人為錯誤造成的品質糾紛，所有測試數據均透過系統自動同步，支援數據分析和可追溯性，規範數據，提高管理效率。這代表了智慧供應鏈管理在品質控管過程中的成功應用。

(spoken in foreign language)

（用外語說）

Third, enhanced consumer experience, we have integrated multiple AI features into the user app. For instance, our AI chatbot supports multi-model 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.

第三，為了提升用戶體驗，我們在用戶應用程式中整合了多種人工智慧功能。例如，我們的 AI 聊天機器人支援多模型交互，並已將其推薦邏輯從僅基於用戶行為升級為行為加知識的結合，將行為數據與營養方面的專業知識相結合。

Users can query products and the smart buttler not only suggests recipes, but also offers personalized with nutritional advice using medical examination data. Voice integration enables parents to easily optimize healthy meals even when busy with their children. .

使用者可以查詢產品，智慧管家不僅會推薦食譜，還會根據體檢資料提供個人化的營養建議。語音控制功能讓家長即使忙於照顧孩子時也能輕鬆優化健康餐點。。

The system also features ingredient dish dual recognition, which analyzes nutritional 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 now utilizes AI to offer personalized dietary recommendations and dietary purchasing options. This improves user decision-making and turns vague healthy needs into concrete purchasing behavior, greatly boosting user engagement and loyalty.

該系統還具備食材菜餚雙重辨識功能，能夠分析營養成分並清楚顯示卡路里、蛋白質和糖分等關鍵營養素，幫助使用者快速掌握食材的營養價值。相較於之前簡單的選擇產品和下單流程，叮咚現在利用人工智慧提供個人化的飲食建議和膳食購買選項。這可以改善用戶的決策，將模糊的健康需求轉化為具體的購買行為，從而大大提高用戶參與度和忠誠度。

Finally, I want to share our outlook for Q3 2025. Last year's Q3 saw rapid growth for Dingdong this year despite the rollout of our 4G strategy, which led to the drop of some mass market products and users and made rising competition, we still aim for a stable scale year-over-year and maintain non-GAAP profitability.

最後，我想和大家分享我們對 2025 年第三季的展望。儘管我們推出了 4G 策略，導致一些大眾市場產品和用戶流失，競爭加劇，但今年第三季鼎東依然實現了快速成長。我們仍致力於實現年比穩定規模，並維持非 GAAP 獲利能力。

This wraps up my remarks. Thank you. Now I invite our CFO, Mr. Wang Song to discuss our financials.

我的發言到此結束。謝謝。現在我請我們的財務長王松先生來討論我們的財務狀況。

(spoken in foreign language)

（用外語說）

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.

謝謝梁先生，大家好。在回顧第二季財務業績之前，請注意，我們所有的數字都以人民幣為單位。

(spoken in foreign language)

（用外語說）

In Q2 2025, Dingdong generated revenue of RMB5.98 billion, a 6.7% year-over-year increase, marking six consecutive quarters of positive growth. Non-GAAP net profit reached RMB130 million with a net margin of 2.1%, up 0.3% points year-on-year. at net profit was RMB110 million with a net margin of 1.8%, an increase of 0.6% points. In terms of funds, Q2 recorded a net cash inflow of RMB100 million from operating activities, the eighth straight quarter of positive cash flow.

2025年第二季度，鼎東實現營業收入59.8億元人民幣，較去年同期成長6.7%，連續第六個季度實現正成長。非GAAP淨利達人民幣1.3億元，淨利率2.1%，較去年成長0.3個百分點。淨利為人民幣1.1億元，淨利率為1.8%，年增0.6個百分點。資金方面，第二季經營活動錄得淨現金流入人民幣1億元，連續第八個季度實現正現金流。

By the end of Q2, after deducting short-term borrowings, our actual cash on increased to RMB2.9 billion, Dingdong has been focused on the instant retail and fresh groceery 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 will remain fully dedicated to the fresh grocery vertical, investing continuously in good products and supply chains following our unique path.

截至第二季末，扣除短期借款後，我們的實際現金增加至人民幣29億元，鼎東一直專注於即時零售和生鮮雜貨電子商務領域。八年多來，我們持續的獲利能力和不斷增長的現金流鞏固了我們對「狹而深」價值主張的承諾。儘管外部環境發生變化，我們仍將全力專注於生鮮食品領域，繼續按照我們獨特的道路投資於優質產品和供應鏈。

(spoken in foreign language)

（用外語說）

Let's now review the specific financial results for Q2. Revenue was RMB5.98 billion, up 6.7% year-on-year, while GMV reached RMB6.5 billion, up 4.5% year-on-year, thanks to the steady advancement of our 4G strategy, good product and good users contributed to overall market growth where the user mind share continuing to improve.

現在讓我們來回顧一下第二季的具體財務表現。營收達人民幣59.8億元，較去年成長6.7%；GMV達人民幣65億元，較去年同期成長4.5%。這得益於我們4G策略的穩步推進，優質的產品和優質的用戶共同推動了整體市場成長，用戶心智份額持續提升。

The average monthly order frequency hit 4.4 times, reflecting not only a year-on-year increase, but also matching the huge level of last year's Q3. Additionally, our 2B business saw consistent growth with revenue climbing 69.4% year-on-year and it's revenue share rising by 1.6% points year-on-year.

平均每月訂單頻率達到 4.4 次，不僅同比增長，而且與去年第三季的巨大水平持平。此外，我們的 2B 業務也實現了持續成長，營收年增 69.4%，營收份額較去年同期成長 1.6 個百分點。

(spoken in foreign language)

（用外語說）

Gross profit margin stood at 28.8%, down 1.2% 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.

毛利率為28.8%，較上年下降1.2個百分點。下降的主要原因是我們對優質產品投入增加、此類產品供應穩定以及積極主動地替換不受歡迎的產品。例如，光是在上海，我們今年上半年就更換了約 3,600 個 SKU，比去年同期增加了約 1,300 個。

Additionally, we took a proactive approach in managing gross profit. We 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.

此外，我們在毛利管理方面採取了積極主動的方式。我們透過深入的產品供應鏈優化和培育，不斷將成本效益回饋給消費者。我們的目標是讓更多家庭都能享用到我們的優質產品。

Moving forward, we'll continue to incubate good products, conduct thorough research with a craftsmanship dedication and strengthen our core competitiveness.

展望未來，我們將持續培育優秀產品，秉持精益求精的匠精神進行深入研究，並增強我們的核心競爭力。

(spoken in foreign language)

（用外語說）

The fulfillment cost rate dropped to 21.7%, down by 0.7% points year-on-year. This decline was mainly driven by economies of scale and ongoing efficiency gains. Meanwhile, we remain committed to excellent service, achieving a record on-time delivery rate of 97.3% so far this year, which is 1.6% points higher than last year in Q2.

履約成本率降至 21.7%，較去年同期下降 0.7 個百分點。這一下降主要是由規模經濟和持續的效率提升所驅動的。同時，我們繼續致力於提供優質服務，今年迄今為止，準時交付率已達到創紀錄的 97.3%，比去年第二季高出 1.6 個百分點。

The fulfillment time of ASAP orders also has improved, averaging 35.8 minutes to 0.6 minutes faster than last year. The marketing expense ratio was 1.7%, a 0.6% point improvement year-on-year. Moving forward, we plan to start to boost investment in promoting good products, leveraging them to generate traffic and continuously enhance our conversion rates.

ASAP 訂單的履行時間也有所改善，平均比去年快了 35.8 分鐘，減少了 0.6 分鐘。行銷費用率為 1.7%，比去年同期改善了 0.6 個百分點。展望未來，我們計劃加大對優質產品的推廣投入，利用這些產品吸引流量，並持續提高轉換率。

(spoken in foreign language)

（用外語說）

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.

行政和研發費用合計佔收入的 5.5%，與去年同期相比保持穩定。我們將繼續投資於食品研發、農業技術和技術數據演算法，以不斷提升我們的產品開發和全鏈數位化能力，從而提高供應鏈效率。

(spoken in foreign language)

（用外語說）

Non-GAAP net profit margin reached 2.1%, up 0.3% points year-on-year, resulting in a net profit of RMB130 million. GAAP net profit margin was 1.8% for the same quarter, a year-on-year increase of 0.6% points.

非GAAP淨利率達2.1%，較去年成長0.3個百分點，淨利為人民幣1.3億元。 GAAP同期淨利率為1.8%，年增0.6個百分點。

(spoken in foreign language)

（用外語說）

At the end of Q2, the total of cash, cash equivalents, short-term restricted cash, short-term investments and long-term deposit was RMB4.01 billion. We're actively improving the efficiency of capital use and financing structure after subtracting short-term borrowings, our net equity stood at RMB2.95 billion.

第二季末，現金、現金等價物、短期受限現金、短期投資及長期存款總額為人民幣40.1億元。我們正在積極提高資本使用效率和融資結構，扣除短期借款後，我們的淨資產為人民幣29.5億元。

This concludes my prepared remarks. Operator, we can now start the question-and-answer session.

我的發言稿到此結束。操作員，我們現在可以開始問答環節了。

(Operator Instructions)

（操作說明）

Thomas Chong with Jefferies.

Thomas Chong 與 Jefferies 合作。

(spoken in foreign language)

（用外語說）

Hello, Mr. Liang congratulations to the company for maintaining excellent results 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.

梁先生您好，祝賀貴公司本季保持了優異的業績。您提到4G策略已經實施了六個月。能否總結一下這段時期4G戰略的進展和成果？感謝。

(spoken in foreign language)

（用外語說）

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 enhance productivity, enhance emphasizing good users, good products, good services and good mindshare.

謝謝你的提問。4G戰略已經實施超過六個月了。在此期間，我們完善了生產關係，提高了生產效率，更加重視優質用戶、優質產品、優質服務和良好品牌形象。

(spoken in foreign language)

（用外語說）

First, we competitively 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.

首先，我們透過解散傳統的產品開發中心，對生產關係進行了競爭性重組。我們將產品開發、營運和品質控制部門的人員整合起來，組成了 10 個獨立的產品開發部門，每個部門都由一位關鍵高階主管領導。這一轉變使公司能夠優先生產高品質產品，並提高組織效率。

Simultaneously, we overhaul resource distribution and performance evaluation method. During this period, we removed GMV 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.

同時，我們對資源分配和績效評估方法進行了全面改革。在此期間，我們取消了 GMV 和利潤率作為績效指標，轉而強調品質指標，例如優質產品比例、優質用戶比例、購買重複率和負面評價。

(spoken in foreign language)

（用外語說）

Secondly, we enhanced productivity by reorienting our apps positioning to a 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.

其次，我們透過重新調整應用程式的定位，使其更加重視質量，從而提高了生產力。這項轉變將首頁流量引導至優質產品，聚焦於有機系列、中國風味、媽媽精選等類別，以及成分純淨、低升糖指數的產品。例如，第二季度，我們的有機產品銷售額年增約 40%。

(spoken in foreign language)

（用外語說）

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.

如前所述，我們正在全面整合人工智慧，並擴展系統功能以納入更多合作夥伴。此外，今年我們還招募了約 500 名管理培訓生。我們期待這位新人才能夠幫助我們推進4G策略的實施。

(spoken in foreign language)

（用外語說）

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 will consider good users accounting for about 68.5% of our total GMV.

鑑於這些組織架構調整，我想向大家報告4G策略的最新進展。我們先來談談我們的優秀用戶。我們服務的用戶群注重產品質量，並且願意為此付費。6 月份，近 30% 的用戶將被視為優質用戶，約占我們總 GMV 的 68.5%。

Furthermore, around 80% of new users were classified as good users. While we once rely on low prices for user acquisition, we now attract customers with good products. the repurchase rate is vital. Now show an exceptionally high repurchase rate with at least 8 orders monthly per user compared to the average of 4.4%.

此外，約 80% 的新用戶被歸類為優質用戶。我們過去依靠低價來獲取用戶，而現在我們用優質的產品來吸引顧客。復購率至關重要。現在，該產品的複購率異常高，每位用戶每月至少下單 8 次，而平均重購率為 4.4%。

(spoken in foreign language)

（用外語說）

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 GMV this shows a rapid growth in GMV increasing by roughly 30% 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.

我們也用優質產品取代了 4000 多件產品。6月份，優質產品占我們SKU的40%，貢獻了約47%的GMV，這顯示GMV成長迅速，自年初以來成長了約30個百分點。即使在通常被視為大眾市場、差異化難度較高的品類中，我們也堅持從源頭採購，並不斷創新。這導致這些類別中優質產品的份額迅速上升。

For instance in June, good products accounted for 55% of GMV in meat, poultry and eggs. Organic vegetables represented 12% of our vegetable sales, a 38% increase of its GMV year-over-year. In pork accounts for 35%, while in nationwide market, it makes up only 3% of total core consumption.

例如，6 月份，優質產品佔肉類、家禽和雞蛋商品交易總額的 55%。有機蔬菜占我們蔬菜銷售額的 12%，其商品交易總額較去年同期成長 38%。豬肉在印度佔35%，但在全國市場，豬肉僅佔核心消費總量的3%。

(spoken in foreign language)

（用外語說）

Overall, after six months of implementing our 4G strategy, we gained more good products and users. This indicates that our understanding of the marketed user is accurate, and we have developed a winning strategy. will persist with the narrow and deep approach to deliver healthy, high-quality ingredients and foods, ensuring every family can enjoy healthier and favorite meals.

整體而言，經過六個月的 4G 策略實施，我們獲得了更多優質產品和使用者。這表明我們對目標用戶的理解是準確的，並且我們已經制定了成功的策略。我們將繼續堅持專注而深入的策略，提供健康、優質的食材和食品，確保每個家庭都能享用更健康、更喜愛的餐點。

Yang Bai with CICC.

楊白與中金公司合作。

(spoken in foreign language) Thank you management management perceive the current competition. including instant retail and the frontline fulfillment station market and what's its impact on us? Thank you.

（外語）謝謝管理階層對當前競爭情勢的理解，包括即時零售和第一線配送站市場，以及這些競爭對我們有何影響？謝謝。

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.

謝謝你的提問。競爭是一個與每個人息息相關的議題。自 2021 年上市以來，我們一直關注社區團購、平台配送和第一線配送站等領域的競爭。我們已在前幾個季度分別處理了這些問題。我們減少了對競爭的關注，更專注於創造價值。回顧這一歷程，我們始終保持對市場理解和定位的一致性和準確性。

First, recent competition within infant retail has garnered a 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.

首先，近期嬰幼兒零售業的競爭引起了廣泛關注。用戶和流量爭奪戰異常激烈，許多企業紛紛採取快速的短期價格戰。然而，這種關注往往忽略了供應鏈和產品開發等方面的問題。

As we outlined with our strategic approach of narrow and deep, we defer significantly from typical infant 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.

正如我們在「窄而深」的策略方法中所概述的那樣，我們與典型的嬰幼兒零售公司有很大不同。首先，我們的目標是發展供應鏈並創建一個生態系統，而他們的目標是爭取更多的使用者和流量。

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 composition. Fourth, our interactions with suppliers are collaborative and mutually beneficial while theirs follow a traditional client provider model.

其次，從策略角度來看，我們強調商品和生態方法，這與他們關注流量、平台主導地位和市場壟斷不同。第三，在與通路的關係中，我們尋求的是雙贏合作和穩定成長，而他們卻參與零和市場組成。第四，我們與供應商的互動是合作互利的，而他們與供應商的互動則遵循傳統的客戶供應商模式。

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. Six, we value long-term relationships and patients, unlike their focus on short-term KPIs.

我們的商業模式與我們的上下游合作夥伴成正比發展。相較之下，它們的特徵是冪律分佈，少數實體控制著大部分資源和影響力，並成為寡占企業。第六，我們重視長期關係和患者，不像他們只關注短期KPI。

(spoken in foreign language)

（用外語說）

These significant differences set us apart from other retail instant retail brands, when you browse social media platforms like red notes, 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.

這些顯著的差異使我們與其他即時零售品牌區分開來。當你瀏覽像Red Notes這樣的社群媒體平台時，你會看到越來越多關於叮咚創新和高品質產品的討論。這有助於我們在當前以價格競爭和同質化為主導的市場中脫穎而出。

(spoken in foreign language)

（用外語說）

From the consumers' 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, inlfuencing your physic, health, energy and immunity over time. For instance, consistently consuming high sugar diet can result in obesity, metabolic issues, while eating more healthy fruit and vegetables can lower the risk of chronic diseases. .

從消費者的角度來看，自疫情爆發以來，越來越多的人提高了對食品品質的要求，消費者越來越認識到「人如其食」。一方面，食物的營養成分直接影響你的身體，隨著時間的推移影響你的體質、健康、精力和免疫力。例如，長期攝取高糖飲食會導致肥胖、代謝問題，多吃健康的水果和蔬菜可以降低罹患慢性病的風險。。

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.

另一方面，飲食選擇也反映了你的身分、價值觀和生活方式。例如，素食者可能優先考慮環境保護和動物福利，而那些偏好本地食材的人可能支持永續發展。從本質上講，飲食不僅塑造你的身體，也定義了你是誰以及你的立場。我們應用程式上的大多數產品都是為了緊密契合這些消費者需求而開發的。

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.

儘管如此，我們並沒有將鼎東的 4G 戰略、窄而深的策略以及對品質定位的重視作為競爭方式。相反，這些反而成為了鼎東獨特的競爭優勢，確保了其在市場上的強勢地位。

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.

雖然我們的轉型無疑需要時間，但我們相信結果會越來越明顯。時間是我們的朋友。我們的目標是為投資者創造長期價值。謝謝。

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.

我們的問答環節到此結束。我謹將會議交還給鄭尼基先生，請他作總結發言。請繼續。

Thank you again for joining our call today. If we have any further questions, please feel free to contact us or request through our IR website. We look forward to speaking with everyone in our next earnings call. Have a good day and have a good night.

再次感謝您今天參加我們的電話會議。如有任何疑問，請隨時聯絡我們或透過我們的投資者關係網站提出申請。我們期待在下次財報電話會議上與大家交流。祝你白天過得愉快，晚上也睡得愉快。

The conference is now concluded. Thank you for participating in today's call. You may now disconnect.

會議到此結束。感謝您參加今天的電話會議。您現在可以斷開連線了。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄稿中的英文陳述是由現場通話中的口譯員翻譯的。本次活動的翻譯人員由活動贊助公司提供。