D i n gd on g ( C aym an ) L i m i t e d A n n ou n c e s ...

1 Dingdong (Cayman) limited InvestorRoomDingdong (Cayman) limited Announces Fourth Quarter 2021 Financial ResultsSHANGHAI, Feb. 15, 2022 /PRNewswire/ -- Dingdong (Cayman) limited ("Dingdong" or the "Company") (NYSE: DDL), a leading andfastest-growing on-demand e-commerce company in China, with advanced supply chain capabilities, today announced its unaudited financialresults for the fourth quarter ended December 31, Quarter 2021 Highlights:GMV for the fourth quarter of 2021 increased by year over year to RMB 6, million (US$ million) from RMB 3, in the same quarter of revenues for the fourth quarter of 2021 increased by year over year to RMB 5, million (US$ million) fromRMB 3, million in the same quarter of number of orders fulfilled for the fourth quarter of 2021 increased by year over year to million from RMB in the same quarter of Changlin Liang, Founder and Chief Executive Officer of Dingdong, stated,"In fact, Q4 was our best quarter since inception, marking year-over-year revenue growth of over 70% and significant efficiency December, the overall Non-GAAP net loss margin narrowed to less than 13%, and Shanghai was fully profitable.

2 At the end of Q4, we hadRMB billion in cash reserves. We are on the fast track of quality development, and we have sufficient cash to last us before full profitabilityin the near is the first city we entered and has continued innovating and iterating, constructing precedents and experiences for our nationwideoperations. We have found the path to profitability in this city and expect the whole Yangtze River Delta to be the next, and the whole companywill follow suit have two firm beliefs: consumption upgrade and product capabilities being our primary growth driver. Many internet retailers adopt a lowpricing strategy, and the idea of consumption downgrade has been widespread. However, we maintain strong confidence in the consumptionupgrade trend for the younger generations, who pursue quality life, especially when it comes to food. Therefore, we are committed to meetingthat need.

3 In addition, in the internet industry, traffic operation was the core competitiveness in the first half of the game. As a result, severalmonopolistic traffic platforms were created with marketing activities such as the "Double 11" that marked the peak of traffic operation. But inthe second half of the game, product capabilities that take us back to the nature of shopping are the primary driver of has had its ups and downs, and 2022 is also destined to be extraordinary. We do not comment much on stock prices, but we agree withBenjamin Graham: the market was a voting machine in the short term but a weighing machine in the long run. In this sense, Dingdong iscommitted to building substance. Specifically, it is substantial to develop product capabilities, win over customers with quality products,develop a supply chain and physical R&D and processing capabilities, and invest long-term in infrastructure.

4 On the contrary, focusing ontraffic operations, price wars, retail platforms, or short-term profitability is trivial. Having a couple of champion products or marketingsuccesses is of much less substance than striving for a better life for the customers in the long is what matters. It is our core competitiveness and will create long-term value. So let's be patient because time will tell."Ms. Le Yu, Chief Strategy Officer of Dingdong, stated,"Overall, we achieved solid revenue growth in Q4 and greatly optimized the operation efficiency with net loss narrowed substantially. As weadvance, we will be committed to building robust product capabilities, making them our core strengths that drive Dingdong to meet thegrowing needs of the people for a better , guidance for Q1 2022. Q1 is typically a slow season for the urban grocery market because of the Chinese New Year, which may lead toa decline in revenue on a sequential basis.

5 In addition, the overtime labor costs incurred during the CNY may impact the fulfillment these factors, we still expect a small dip in the net loss and a substantial improvement of the operating cash outflow in Q1 from Q42021."Fourth Quarter 2021 Financial ResultsTotal revenues were RMB 5, million (US$ million), representing an increase of from the same period of 2020, primarilydriven by the robust growth in the Company's Revenues were RMB 5, million (US$ million), an increase of from RMB 3, million in the same quarterof 2020, primarily driven by the increase in the number of Revenues were RMB million (US$ million), an increase of from RMB million in the same quarter of2020, primarily driven by the increase in the number of customers subscribing to Dingdong operating costs and expenses were RMB 6, million (US$ 1, million), an increase of from RMB 4, million in thesame quarter of 2020, with a detailed breakdown as below.

6 Cost of Goods Sold were RMB 3, million (US$ million), an increase of from RMB 2, million in the samequarter of 2020, primarily driven by the increase in total revenue. Gross margin was , significantly improved from in thesame quarter of expenses were RMB 1, million (US$ million), an increase of from RMB 1, million in the samequarter of 2020, primarily driven by the increase in total revenues. Sales and marketing expenses were RMB million (US$ million), an increase of from RMB million in the samequarter of 2020, mainly due to the increased spending on sales and marketing activities to acquire new and administrative expenses were RMB million (US$ million), an increase of from RMB million inthe same quarter of 2020, mainly due to the increased business scale of the development expenses were RMB million (US$ million), an increase of from RMB million in thesame quarter of 2020, mainly due to the increased investments in: i) the Company's supply chain system to further improve efficiencyand reduce operating costs; ii) the agricultural technology to empower upstream partners.

7 Loss from operations was RMB 1, million (US$ million), compared with operating loss of RMB 1, million in the samequarter of loss was RMB 1, million (US$ million), compared with net loss of RMB 1, million in the same quarter of net loss, which is a non-GAAP measure that excludes share-based compensation expenses, was RMB 1, million (US$ ), compared with non-GAAP net loss of RMB 1, million in the same quarter of and diluted net loss per share were RMB (US$ ), compared with RMB in the same quarter of 2020. Non-GAAP netloss per share, basic and diluted, was RMB (US$ ), compared with RMB in the same quarter of 2020. The weighted averagenumber of ordinary shares outstanding used to compute the basic and diluted net loss per share and non-GAAP net loss per share was64,908,700 in the fourth quarter of 2020. All the then outstanding convertible redeemable preferred shares were not included in thecomputation until July 2021 when converted into ordinary shares after the Company's and cash equivalents and short-term investments were RMB 5, million (US$ million) as of December 31, 2021, comparedwith RMB 2, million as of December 31, CallThe Company's management will hold an earnings conference call at 7:00 Eastern Time on Tuesday, February 15, 2022 (8:00 Time on the same day) to discuss the financial results.

8 The presentation and question and answer session will be presented in bothMandarin and English. Listeners may access the call by dialing the following numbers:International:1-412-317-6061 United States Toll Free:1-888-317-6003 Mainland China Toll Free:4001-206115 Hong Kong Toll Free:800-963976 Conference ID:2562159 (Bilingual English & Mandarin Chinese, primary channel)Conference ID:0886124 (Simultaneous English interpretation, listen-only)A live webcast of the earnings conference call can be accessed at An archived webcast will be available through the same linkfollowing the call. A replay of the conference call will be available through February 22, 2022 by dialing the following numbers:International:1-412-317-0088 United States:1-877-344-7529 Access Code (Mandarin Chinese)1984499 Access Code (English)9782558 Please visit Dingdong's Investor Relations website at on February 15, 2022 to view the earnings release and accompanyingpresentation prior to the conference Dingdong (Cayman) LimitedDingdong (Cayman) limited is a leading and fastest-growing on-demand e-commerce company in China providing users with fresh produce,meat and seafood, and other daily necessities through a convenient and excellent shopping experience supported by an extensive self-operatedfrontline fulfillment grid.

9 From its core product category of fresh groceries, Dingdong has expanded to provide other daily necessities to growinto a leading one-stop online shopping destination in China for consumers to make purchases for their daily lives. At the same time, Dingdongis working to modernize China's traditional agricultural supply chain through standardization and digitalization, empowering upstream farmsand suppliers to make their production more efficient and tailored to actual more information, please visit: Use of Non-GAAP Financial MeasuresThe Company uses non-GAAP measures, such as non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAPnet loss per share, basic and diluted, non-GAAP fulfillment expenses, non-GAAP sales and marketing expenses, and non-GAAP general andadministrative expenses in evaluating its operating results and for financial and operational decision-making purposes.

10 The Company believesthat the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensationexpenses, which are non-cash charges and do not correlate to any operating activity trends. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company'spast performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in itsfinancial and operational non-GAAP financial measures are not defined under GAAP and are not presented in accordance with GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, cash flows or liquidity,investors should not consider them in isolation, or as a substitute for net loss, cash flows provided by operating activities or other consolidatedstatements of operations and cash flows data prepared in accordance with GAAP.