Dingdong Maicai, an online grocery delivery platform, saw revenue in Q1 fall 8.2 percent year on year to 5 billion yuan (US$ 780 million). However, the company achieved a net profit of 6.1 million yuan, compared to a net loss of 422 million yuan in the same period last year.
Dingdong saw an increase in orders and frequency of orders in Q1, yet GMV dropped 6.8 percent year on year to 5.4 billion yuan.
The company has been focusing on reducing expenses, leading to a decreased fulfillment cost as a percentage of total revenue.
The company has made efforts to develop its own brands, which now account for 19 percent of GMV.
