Ding Dong buy vegetables for the first time to achieve stage profit, pre-position mode and "commodity power" strategy has been verified

Third, Ding Dong significantly strengthened the research on user consumption trends and improved the success rate of product development. With Ding Dong's strong data capabilities and loyal user groups, the research department of Ding Dong completed 15 consumer insight research reports in the first half of 2022, organized more than 10 commodity evaluations of nearly 1,000 people, and gave product selection opinions and development and adjustment directions, which strongly supported the early positioning and selection direction of key commodity projects and subsequent growth strategies. Thus, the success rate of product development is significantly improved.

Fourth, develop more consumption scenarios, more efficiently perceive new needs, define new products and cultivate new brands. Because our original intention is to let the children eat healthy, so that every family rest assured, Dingdong buy food has a special channel "Bao Ma Yan selection".

Fifth, we need to strengthen infrastructure development. At present, Ding Dong Maicai has a high standard, semi-automated big warehouse, with more than 10 food factories, and is building three large-scale 3F factories.

Attached is the financial exchange Q&A transcript

1, a peer recently appeared operational difficulties, as a peer, what do you think?

First, we rarely evaluate our friends. Being yourself is more important than pointing the finger. In addition, some people see a company in difficulties and think that the whole industry is not good, we very much disapprove of this simple, linear way of thinking. Even in the same industry, the differences between different companies can be worlds apart. Ding Dong buy food is different from every company in our industry, we have been focused on one thing, has been more concerned about the needs of users, and then forced themselves to progress, we do not play clever, dead knock commodity force, so that we are more and more loved by users, by the user's favorite company, I think are promising companies.

We also hope that the society will have more tolerance for entrepreneurs, and hope that entrepreneurs who encounter difficulties can stick to it and usher in the bright moment.

2. In addition to revenue growth, what growth has Ding Dong Bought vegetables achieved in the epidemic?

In addition to revenue growth, Ding Dong has made progress in three aspects after the test of the epidemic.

First, by establishing a flexible supply chain that is more flexible and responsive, we have established a stronger response constitution. During the epidemic, faced with supply disruptions, transportation system blockages, large warehouses were blocked, and personnel management difficulties, we flexibly adapted and innovated many supply chain models. For example, business direct delivery, neighborhood groups and other ways, during the epidemic, not only to ensure the supply, but also to calm prices, but also to hone our supply system, in the event of an emergency, to maintain the basic responsibility of supply.

Second, we have improved the cohesion of the team. During the epidemic, the workload is heavy, life is difficult, and you can be locked down at any time. Ding Dong buy food colleagues have assumed unprecedented pressure, but everyone to guarantee for their own responsibility, insist on fighting, there are a lot of impressive deeds. But we can also feel the sense of achievement brought by service for users, after the baptism of an epidemic, our team is more united.

Third, during the entire epidemic period, Ding Dong Buy food has always been with users, ensuring supply and leveling prices, and therefore, we have been loved by more users. Whether it is normal consumption, or in difficult times, Ding Dong buy food is a trusted partner that we can choose with our eyes closed.

Finally, I would like to say that with regard to the epidemic, we have always complied with the management and requirements of the government, and fulfilled the basic responsibilities of a people's livelihood security company. I also wish an early end to the epidemic and a healthy and stable life for everyone.

3, the company Q2 achieved phased profit, then Q3, Q4 what will happen? When will the company reach full profitability? Is there a risk to the company's cash flow before it achieves full profitability?

First of all, Q2 was a very, very difficult period for the company. Under the influence of environmental factors, the operational resistance was very huge. Fortunately, the company's partners worked together to meet the difficulties, and we finally achieved a positive quarterly profit. We also observed that after the epidemic compared with before the epidemic, whether it is the aspects that we are most concerned about, such as commodity power and user reputation, or core data indicators such as the unit price to customers and penetration rate, there has been very positive progress. Therefore, we believe that compared with Q1 before the epidemic, the net loss of Non GAAP will be optimized by more than 3 percentage points in Q3, and the subsequent Q4 will continue to optimize on the basis of Q3.