Chinese grocery platform Dingdong Maicai’s revenue decreased by 27% year-on-year to RMB 4.8 billion ($667.6 million) in the second quarter,Melodrama Archives while non-GAAP net income reached RMB 7.5 million, the Shanghai-based company announced on Sept. 1. Dingdong has posted a profit for three consecutive quarters under the non-GAAP standard, with a senior vice president expressing the firm’s confidence in achieving non-GAAP profitability for the full year 2023 in the earnings report. The company meanwhile saw its costs of goods sold drop 26.4% from a year earlier to RMB 3.34 billion during the period. Downsizing operations in loss-making regions is the main way for Dingdong to maintain profitability in a highly competitive industry, with the company exiting from Southwest China in Chongqing and Chengdu city this May, redirecting its focus primarily to the Eastern China region where it has managed to achieve three consecutive quarters of stable profit. [Dingdong Maicai]
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