Online grocery Dingdong Limited (DDL) saw Q3 revenue of 5.1 billion yuan (US$700 million), but a net profit of 2.1 million yuan. Operating costs and expenses were 5.2 billion yuan, a 17.6 percent decrease from last year.
The company has closed down in numerous cities since last year. In the first half of this year, it suspended operations in Chongqing and Chengdu.
DDL’s GMV in Shanghai grew by 7.8 percent in Q3, and its GMV in Jiangsu and Zhejiang grew by over 13 percent sequentially, achieving overall regional profitability for the fourth consecutive quarter and covering headquarters expenses.
DDL founder and CEO Liang Changlin said the company is more concentrated on goods closely related to daily life. Based on this, DDL will increase its investment in promotions and discounts.